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Technological leadership and late development: evidence from Meiji Japan, 1868–1912
Author(s) -
TANG JOHN P.
Publication year - 2011
Publication title -
the economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.014
H-Index - 49
eISSN - 1468-0289
pISSN - 0013-0117
DOI - 10.1111/j.1468-0289.2009.00530.x
Subject(s) - diversification (marketing strategy) , industrialisation , meiji period , economics , meiji restoration , empirical evidence , economy , business , market economy , economic history , geography , marketing , archaeology , philosophy , epistemology
Large family‐owned conglomerates known as zaibatsu have long been credited with leading Japanese industrialization during the Meiji period (1868–1912), despite a lack of empirical analysis. Using a new dataset collected from corporate genealogies to estimate entry probabilities, it is found that characteristics associated with zaibatsu increase a firm's likelihood of being an industry pioneer. In particular, first entry probabilities increase with industry diversification and private ownership, which may provide internal financing and risk‐sharing, respectively. Nevertheless, the costs of excessive diversification may deter additional pioneering, which may account for the loss of zaibatsu technological leadership by the turn of the century.