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Series:   Elements in Politics and Society in East Asia

The Digital Transformation and Japan's Political Economy

Published online by Cambridge University Press:  01 June 2022

Ulrike Schaede  and
Kay Shimizu
Ulrike Schaede
Affiliation:
University of California, San Diego
Kay Shimizu
Affiliation:
University of Pittsburgh

Summary

Digital transformation and demographic change are usually seen as two separate but equally threatening events that foreshadow job replacement, industrial decline, and social bifurcation. Because Japan is the world's frontrunner in demographic change with an ageing and shrinking society, it is facing these two disruptions at the exact same time. This creates a 'lucky moment,' as it presents an opportunity to employ one as a solution for the problems caused by the other. For example, Japan's traditional sectors are replaced by digital systems that demand fewer people while offering new jobs. Emerging technologies are opening fresh opportunities for Japanese companies to compete globally. The twin disruptions are also upending Japan's political economy. As companies reinvent business strategies and employees reskill to pursue individual careers, the state is reorganizing to find a new role in balancing the unfolding demands of the digital economy.
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Keywords

Digital transformationdemographic changedeep technologyagrotechAIindustrial policyageing societylabor shortagereskilling
Type
Element
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Series: Elements in Politics and Society in East Asia
Online ISBN: 9781108921015
Publisher: Cambridge University Press
Print publication: 30 June 2022

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