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Technological Progress by Small and Medium Enterprises in Japan


  • Urata, Shujiro
  • Kawai, Hiroki


This paper examines various aspects of total factor productivity across different firm sizes in Japan. It shows that larger firms have higher total factor productivity levels and growth than smaller firms. There are, however, some exceptions to this pattern especially in the electric machinery sector where small firms tend to have the edge. The paper also finds that two distinctive characteristics of small and medium firms, the practice of subcontracting and the use of external patents, are positively related to total factor productivity growth while the availability of subsidized public loans is not. Copyright 2002 by Kluwer Academic Publishers

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  • Urata, Shujiro & Kawai, Hiroki, 2002. "Technological Progress by Small and Medium Enterprises in Japan," Small Business Economics, Springer, vol. 18(1-3), pages 53-67, Feb.- May.
  • Handle: RePEc:kap:sbusec:v:18:y:2002:i:1-3:p:53-67

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    References listed on IDEAS

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    Cited by:

    1. Holl, Adelheid, 2008. "Production subcontracting and location," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 299-309, May.
    2. Shuji Uchikawa, 2010. "Small and Medium Enterprises in Japan: Surviving the Long-Term Recession," Working Papers id:3065, eSocialSciences.
    3. Urata, Shujiro, 1998. "Explaining the poor performance of Japanese direct investment in the United States," Japan and the World Economy, Elsevier, vol. 10(1), pages 49-62, January.
    4. Joost van Acht & Joop Stam & Roy Thurik & Ingrid Verheul, 2004. "Business Ownership and Unemployment in Japan," Papers on Entrepreneurship, Growth and Public Policy 2004-09, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    5. Biswajit Nag & Biswa Nath Bhattacharyay & Debdeep De, 2015. "Integrating India with Asian Production Networks: Prospects and Challenges," CESifo Working Paper Series 5616, CESifo Group Munich.
    6. POSCHKE, Markus, 2011. "The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology," Cahiers de recherche 08-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    7. Albert Berry, 1998. "The Potential Role of the SME Sector in Pakistan in a World of Increasing International Trade," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 25-49.
    8. Miguel García-Posada & Juan Mora-Sanguinetti, 2015. "Does (average) size matter? Court enforcement, business demography and firm growth," Small Business Economics, Springer, vol. 44(3), pages 639-669, March.
    9. André van Stel & Roy Thurik & Ingrid Verheul & Lendert Baljeu, 2007. "The Relationship between Entrepreneurship and Unemployment in Japan," Tinbergen Institute Discussion Papers 07-080/3, Tinbergen Institute, revised 14 Jul 2008.
    10. Andre van Stel & Lendert Baljeu & Roy Thurik & Ingrid Verheul, 2006. "The Contribution of Business Ownership in Bringing Down Unemployment in Japan," Papers on Entrepreneurship, Growth and Public Policy 2006-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.

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