面红耳赤是什么生肖

Japan's economic success is often attributed to a blend of economic, cultural and social factors, with "patient capital" playing a pivotal role. "Patient capital" refers to long-term, stable investment, which enables companies to achieve sustainable growth in the long run.

This approach is in sharp contrast to the short-term profit maximization often seen in Western economies, where the management almost always is focused on ensuring stockholders get handsome returns in the short term. Japan's unique model of patient capital has significantly contributed to its industrial competitiveness, particularly in high-tech manufacturing sectors such as semiconductors and automobiles.

In Japan, patient capital is deeply embedded in the economic institutions, such as the main banking system, and long-term business relationships. Historically, the keiretsu system — a network of interlinked corporations that typically include manufacturers, suppliers and banks — has led the economic development in Japan. The cross-stock ownership among keiretsu members has almost disappeared, but every large corporation in Japan has its own main bank, not only as a lender but also as a business partner.

The main banking system is based on contingency governance, where a bank intervenes only when a borrower faces financial difficulty. In such a situation, the main bank sometimes takes over the borrowing company's management in order to revitalize it by injecting more capital into it. The fact that the main bank is powerful, and efficient in corporate governance makes the role of the stockholder relatively weak in a company's corporate financial structure.

This structure provides Japanese companies with the stability needed to undertake ambitious, long-term projects such as investments in radical innovation programs without the fear of short-term market fluctuations.

This long-term relationship is found not only in Japan's financial system but also in its business relationships including those related to supplier management. For example, in-depth research into Japan's competitiveness in the automobile sector has revealed that mutual support between OEM(original equipment manufacturer such as Toyota and Honda) and its suppliers is a main factor behind its success. The OEMs support their suppliers by providing technical training for them, and encourage them to come up with their own ideas for innovation with financial incentives.

Such a stable business relationship is important for suppliers to share a long-term perspective of product development with the OEMs. This Japanese system contrasts with the system prevalent in Western economies, where the objective of procuring parts from outside is to reduce the cost of production.

Japanese-style supplier management is becoming a global standard, diffusing into the auto industries of the United States and the European Union.

The influence of patient capital in Japan's industrial competitiveness is multifaceted. First, patient capital has enabled Japanese companies to invest in cutting-edge technologies without the immediate pressure to deliver profits. Such an economic environment has contributed to the birth of innovative companies such as Sony and Nintendo.

Second, the stability provided by patient capital allows Japanese companies to more effectively weather economic downturns. During the 2008 global financial crisis, many Japanese companies were able to maintain their workforce and continue investing in R&D, unlike their Western counterparts which resorted to drastic cost-cutting measures. This resilience helped Japanese companies sustain their industrial base and competitive position globally.

Third, patient capital has also boosted Japan's ability to engage in long-term strategic planning, with the country's focus on quality, continuous improvement (kaizen) and customer satisfaction being the outcomes of this long-term orientation.

However, the patient capital system also has some drawbacks. For example, a long-term business orientation can become an obstacle for change during turbulent times. Artificial intelligence and digitalization are transforming businesses like never before, and Japanese companies have difficulty in adopting such new technologies because of their organizational rigidity. Also, new technologies such as the internet of things are inducing more dynamic changes in the global supply chains, rendering the stable supplier-purchaser relationship system obsolete.

According to the capitalism theory of Peter A. Hall and David Soskice, liberalized market economies, such as the US and the United Kingdom, have a comparative advantage in terms of radical innovation, while coordinated market economies such as Japan and continental European countries are more suited to promote incremental innovation. This theory is consistent with the fact that Japan is an automobile-manufacturing powerhouse (based on continuous innovation), but relatively weak in software (for lack of radical innovation).

As a country seeking to transition from a manufacturing-led economy to one driven by innovation and advanced technology, China could learn from the concept of patient capital. Like Japan, China aims to lead in sectors such as AI, robotics and electric vehicles (it is already the global leader in EVs). Embracing patient capital could enable Chinese enterprises to invest in these technologies to promote innovation without the pressure of making short-term profits.

This shift could help China achieve its goal of becoming a global leader in high-tech industries. In addition, China's transition to a more sustainable growth model will require significant investments in green technologies. Patient capital could play a crucial role in supporting these long-term investments, helping China address environmental challenges while maintaining economic growth.

Japan's experience with patient capital offers valuable insights into how long-term, stable investment can enhance industrial competitiveness. China's economic environment is completely different from Japan's, because of its super-competitive product market and short-term profit-making mechanism. As China seeks to transform its economy, patient capital could lay the foundation for the Chinese economy's sustained, long-term growth in high-tech industries.

But since Japan is mulling changing its stance on the economic environment, China needs to carefully examine the patient capital system before embracing it.

The author is a professor at the Graduate School of Engineering, The University of Tokyo. The views don't necessarily reflect those of China Daily.

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