TY - JOUR AU - Branstetter, Lee AU - Nakamura, Yoshiaki TI - Is Japan's Innovative Capacity in Decline? JF - National Bureau of Economic Research Working Paper Series VL - No. 9438 PY - 2003 Y2 - January 2003 DO - 10.3386/w9438 UR - http://www.nber.org/papers/w9438 L1 - http://www.nber.org/papers/w9438.pdf N1 - Author contact info: Lee G. Branstetter Heinz College School of Public Policy and Management Department of Social and Decision Sciences Carnegie Mellon University Pittsburgh, PA 15213 Tel: 412/268-4649 E-Mail: branstet@andrew.cmu.edu Yoshiaki Nakamura Director, Business Environment Promotion Division Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki, Chiyoda-ku 100-8901, JAPAN Tel: 03-3501-0645 Fax: 03-3580-6231 E-Mail: yoshiaki.n.ny@gmail.com M1 - published as Lee G. Branstetter, Yoshiaki Nakamura. "Is Japan's Innovative Capacity in Decline?," in Magnus Blomström, Jennifer Corbett, Fumio Hayashi and Anil Kashyap, editors, "Structural Impediments to Growth in Japan" University of Chicago Press (2003) AB - This paper investigates changes in the output and productivity of research and development activities in Japanese manufacturing firms over the 1980s and 1990s. Evidence from aggregate patent and R&D statistics and a micro-level analysis of R&D productivity at the firm-level suggest that there has been a slowdown in the growth of Japanese research productivity in the 1990s. The paper goes on to suggest possible explanations for this slowdown and reviews some of the steps Japanese firms are taking to increase the effectiveness of their R&D. The paper presents empirical evidence concerning the impact of one of these steps the creation of technology alliances with U.S. firms on Japanese innovative output. ER -