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- W209359801 abstract "Social Science Japan Journal Vol. 15, No. 1, pp 3–30 2012 Published online December 2, 2011 doi:10.1093/ssjj/jyr037 Entrepreneurship in Japan’s ICT Sector: Opportunities and Protection from Japan’s Telecommunications Regulatory Regime Shift Kenji E. KUSHIDA* Keywords: Japan; information technology; ICT; political economy; regulation; telecommunications. 1. Introduction: Entrepreneurship in Japan’s Information and Communications Technology Sector Japan’s telecommunications sector provides a valuable vantage into the ongoing transformation of Japan’s political economy. A careful study of the sector’s transformation from the mid-1990s reveals a particular dynamic of change. Perhaps unexpectedly, a critical driver of change was entrepreneurship— new firms or new entrants introducing new business models or technologies. This entrepreneurship, how- ever, did not flourish in a vacuum, nor was it simply the result of deregulation. Regulatory structures created the opportunities for entrepreneurs while providing protection from large incumbents. Kenji E. KUSHIDA is the Takahashi Research Associate in Japanese Studies, Walter H. Shorenstein Asia-Pacific Research Cen- ter, Stanford University. His research interests include Japan’s political economy, issues surrounding Information and Commu- nications Technologies (ICT), and the political roles of foreign multinational corporations in Japan. Recent publications include ‘Leading without Followers: How Politics and Market Dynamics Trapped Innovations in Japan’s Domestic ‘‘Galapagos’’ Tele- communications Sector’, Journal of Industry, Competition and Trade 11(2), 2011; ‘The Services Transformation and Network Policy: The New Logic of Value Creation’, Review of Policy Research 26 (1–2), 2009, with John Zysman, and ‘Wireless Bound and Unbound: The Politics Shaping Cellular Markets in Japan and South Korea’, Journal of Information Technology and Politics 5 (2), 2008. He can be reached by e-mail at kkushida@stanfordalumni.org *The author wishes to thank Ulrike Schaede and Marie Anchordoguy, participants in the Stanford Project on Japanese Entre- preneurship (STAJE) conference held at Stanford University in February 2010, as well as Gregory Noble and three anonymous reviewers for insightful comments and feedback on earlier drafts of this manuscript. Financial support for open access of this article was provided by STAJE, and the author thanks Bob Eberhart for his support. a The Author 2011. Published by Oxford University Press in conjunction with the University of Tokyo. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial Licence (http:// creativecommons.org/licences/by-nc/3.0/), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. Downloaded from http://ssjj.oxfordjournals.org/ at Stanford University Libraries on January 27, 2012 Entrepreneurs and entrepreneurship played a critical role in transforming Japan’s telecommunications sector. Between the mid-1990s and mid-2000s, in a sector long dominated by a stable set of large actors with well- established patterns of interaction, entrepreneurs introduced new technologies, new business models, and new norms of interaction. The subsequent transformation of Japan’s telecommunications sector was dramatic, providing consumers with not only fast and sophisticated services but also low prices and an entire new ecosystem of mobile content—a considerable departure from Japan’s long track record of being known as producer- rather than consumer-oriented, with consumers enjoying high-end services and products, but at high prices. Yet, these transformative entrepreneurs were not acting in a vacuum. Regulatory shifts in telecommunications were critical in providing opportunities for entrepreneurs, while simultaneously protecting them from large incumbent firms. These regulatory shifts were driven by the political dynamics of the 1990s as Japan struggled through its post-bubble economic malaise and political changes." @default.
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- W209359801 title "Entrepreneurship in Japan's ICT Sector: Opportunity and Protection from Japan's Telecommunications Regime Shift" @default.
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