The Transfer of Soft Technology
The United Nations Conference on Trade and Development (UNCTAD 2016) announced that Asia remained the largest foreign direct investment (FDI) recipient region in the world, accounting for one-third of global FDI flows in 2015. The Association of Southeast
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Introduction
The United Nations Conference on Trade and Development (UNCTAD 2016) announced that Asia remained the largest foreign direct investment (FDI) recipient region in the world, accounting for one-third of global FDI flows in 2015. The Association of Southeast Asian Nations (ASEAN) Economic Community was launched in December 2015. Japanese investment in ASEAN countries exceeded FDI in China. Although there is a risk of a Chinese economic slowdown and political instability, investment conditions for Japanese business are fair. The most popular destinations for investment have been Thailand and Indonesia (Nihon Keizai Shimbun, 5 January 2016). Japanese small and medium-sized enterprises (SMEs) have also invested to set up operations in Asia because of the expanding supply chains of Japanese manufacturing. They are using skill development and technology transfers of workers in the host countries to maintain the competitive advantage of Japanese manufacturing. The transfer of Japanese technology has been an important topic for Asian business and development for four decades. Since Japan as Number One was published by Ezra Vogel (1979), the strength of Japanese © The Author(s) 2017 N. Kuriyama, Japanese Human Resource Management, DOI 10.1007/978-3-319-43053-9_7
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Japanese Human Resource Management
industry has attracted foreign attention. In the late 1980s, Japanese FDI jumped due to the strong appreciation of the yen. The transfer of the Japanese management system has been an issue not only for business investment but also for official development assistance (ODA). This chapter reviews the discussion on the transfer of technology from Japan in the late 1980s, focusing on the ‘soft side’ of technology: workers’ skills and human resources management and development (soft technology). Economic development requires a well-balanced blend of different kinds of resources. Among these, the importance of human resources is increasing in the context of global economic development. In this changing economy, the adaptive capacity of human resources in developing countries is indispensable for sustaining economic and social development. This is made clear by the success of the Asian emerging economies, which have been able to adapt far better than other countries (Duncan 1986). Of course, the basic idea of the development of human resources must result from a basic and comprehensive education of the general public; however, it also includes the fostering of sound labour ethics and attitudes toward jobs. In practical terms, the technology and skills needed to do the tasks in places of production are necessary, and the development of managerial ability and vocational training are decisively important. Developed countries have also been interested in the promotion of the economic development of developing countries. Economic aid has been used to sustain a better global economic performance. Japanese official development assistance (ODA) increased from 1970 up until the collapse of the bubble economy in the 1990s. I
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