JAPANESE INDUSTRIAL POLICY IN AIRCRAFT MANUFACTURING

Marketing and corporate risk‐taking are always included as elements of industrial competitiveness and yet discussions of industrial policy are strangely silent on these important determinants of firm performance. The inability of Japanese industrial policy to develop these skills has been an important factor in determining the competitive position of the Japanese commercial airplane manufacturing industry. In this industry where domestic demand was not guaranteed, and where the Japanese competitors were not prepared to assume the risk‐taking position common to successful foreign competitors, Japanese industrial policy was unable to match its earlier success in basic industries.