The Importance of Traditional Techniques - cacci

CACCI Journal, Vol. 1, 2006The Importance of Traditional TechniquesEmerging technologies can gain from traditional techniquesHajime EtoProfessor, Department of ManagementChiba Keizai UniversityCurrent innovation policies for emerging technology regards traditional techniques, oftenowned by small or medium scale enterprises in local areas, as useless. This article sheds newlight on such techniques and discusses their usefulness for emerging technology in Japan.After a historical review of the imbalance between modern technologies and traditionaltechniques, the article points out the weaknesses of the former and the merits of the latter andproposes a reverse transfer of traditional techniques to emerging industries.IntroductionProblem statementsThe recent innovation policy of Japan emphasizes the radically new emergingtechnologies (ET) resulting from basic research (BR) in the so-called excellent universitiesand research institutes (the center of excellence or COE). The emphasis of this aspect ofinnovation leads to the unbalanced and superficial progress and not only tends tounconsciously ignore but also unknowingly or knowingly destroy the foundation and thepotentials of the future science and technology (S&T).As the word "emerging" implies, ET still lacks the well-founded system of knowledge.But any new knowledge has roots in old one and is often created partly by its reorganization.Therefore ET can learn some from old knowledge. The present policy makers are unaware ofthis characteristic of S& T history and regard the traditional techniques merely as the obsoletenuisances.The major ET policy makers mainly with the economics background emphasize thedifference of the recent ET promotion policy from the past innovation policies for themodernization of traditional small or medium scale enterprises (SMEs) and for the regionaldevelopment. This is feared to destroy not only the foundation of societies but also thepossible fountain and the useful information sources of ET.The recent innovation policy is mainly to solve the present economic recessionassociated with the financial deficit of the national and local governments. Therefore, therecent innovation policy is associated with the budget cut including the privatization ofvarious S& T institutes and activities. As experiences, historical lessons and several economictheories tell, private sectors fail to promote radical innovations. Therefore, the combination ofthe policies for innovation and for the budget cut is paradoxical.Past studiesThe study of ET is new and almost exclusively focused on its promotion. In other words,Reprinted from the Asia Pacific Tech Monitor, Sep-Oct 2005 issue pp. 17-22.1

CACCI Journal, Vol. 1, 2006it is concentrated on ET itself. Many studies of ET policies not only ignore but also deny theusefulness of traditional techniques and even blame past policies as having inspired localSMEs to stick to obsolete techniques. Therefore, almost no study has been made abouttraditional techniques working in tandem with ETs. Because of the absence of relevant Japanesecase studies, this article is based on my own past studies.Plan of this articleThis article discusses the role of traditional techniques in the era of ET in Japan. Section2 historically reviews the imbalance (and the resulting dual structures) between modernizedand underdeveloped technologies that have resulted from rapid innovation in Japan in thepast. 1,2 Section 3 discusses the dilemmas of recent innovation policies with respect to thesedual structures and the weaknesses of recently developed ETs in comparison to traditionaltechniques. 3,4 Section 4 presents proposals to solve the resulting problems.Dual structures in the pastResult of rapid catch-up policiesIn the late 19th century, the government of Japan sought rapid modernization to rivalWestern powers in military aspects. For this purpose, the government promoted moderntechnologies for munitions of war, such as steel production and shipbuilding, leaving other industriesat underdeveloped levels.At first, Japan exported agricultural products, such as raw silk, and handicrafts, such asdolls.In the early 20th century, the spinning industry was highly developed in Japan and filledthe gap after England retreated from Asian markets such as India and China. This acceleratedthe development of looms. S. Toyota invented a series of automatic looms and raised theproductivity of the spinning industry of Japan over its English rivals. Thus, in the pre-warperiod, the military and spinning technologies of Japan achieved top world levels, while othertechnologies were left underdeveloped.But the development of looms stimulated the development of machinery in general. Thearmy promoted the conversion of loom technologies to automobile technologies. Supportedby the army, Nissan and Toyota began production of trucks and motor cars in the 1930s, butthe technologies for comfortable passenger cars remained underdeveloped.A similar imbalance was seen in electric technologies. Technologies for powergenerators and military communication equipment were developed, while technologies forhome electrical appliances remained underdeveloped.In the USSR, J. Stalin launched the first five-year plan in 1928. This plan hoped todevelop the entire economy through a pull effect from the heavy and chemical industries.Indeed, the products of the heavy and chemical industries helped light industries by providingmachine tools, high quality materials and the like. It also helped agriculture by providingtractors, agricultural chemicals and others.2

CACCI Journal, Vol. 1, 2006Policies in the 20 th centuryIn 1972, K. Tanaka was nominated as Prime Minister. He was the first prime ministerfrom the "backside of Japan" and made a radical innovation in innovation policies. His ideawas to promote local economies by relocating heavy industries to local areas. As bigenterprises had modern technologies, relocating their factories could be expected to stimulatelocal SM Es to raise their technology levels. But strong urban criticism and the oil crisis of1973 hindered his plan. He did, however, have a strong impact on regional developmentpolicies.Severe pollution problems moved local residents to invite only "clean" high-tech industries,such as information technology (IT) industries. In the 1970s and 1980s, the central governmentencouraged local governments to construct science-based high-tech industry districts, calledscience parks, techno-parks or academia parks. Nearly 100 science parks were constructed inevery part of Japan. At the same time, local governments invested in research and development(R&D), which attracted public attention. The central government's White Paper on S& Twelcomed local R&D. In the beginning of the 1990s, however, recession hit the Japaneseeconomy and gave rise to financial deficits in the public sector as well as in the private sector.Industrial R&D expenditure decreased and few industries came to science parks, which remainvacant even today.Around 2000, the central government made the second radical innovation in innovationpolicies, shifting from the promotion of big enterprises to the promotion of small ventures andfrom regional development back to promotion of ETs in urban areas. This shift is discussedbelow.High-tech to ETChange in definitionThe industrial policy from the Korean War to the 1990s had been to rebuild and grow theheavy and chemical industries, and through them to lead a total economic development, asStalin had earlier conceived for the USSR. Sut this idea was no longer regarded as effective.Indeed, N. Khrushchev shifted Stalin's policy to the promotion of ETs such as spacedevelopment. Under John F. Kennedy, the USA too followed this policy.The USSR and the USA spent a great amount of resources on ETs, which gave noimmediate returns in economic terms. In the meantime, Japan continued to develop the heavyand chemical technologies and achieved world leadership in cars, TV sets, IC chips, carbonproducts and others. Japan called such technologies high-tech and was satisfied with them,even though its software technologies were at a relatively low level.After the demise of the USSR, however, US industries shifted emphasis from military toindustrial technologies and began to excel Japan in the latter. In particular, US research inDNA and bio-technology is far above its Japanese counterpart. Simultaneously, Japanesehigh-tech began to lose competitively in the world market. Today, indeed, many Asiancountries are strong competitors of Japan not only in steel and cars but also in electronics andsoftware.4

CACCI Journal, Vol. 1, 2006Like many other countries, Japan still retains its own traditional management styles thateffectively work in Japanese enterprises, especially in local SMEs. Indeed, the so-called Japanesemanagement, universally praised in the 1970s and 1980s, exploited the characteristics ofJapanese business practices. The globally acclaimed Japanese management was unique in thesense that the management styles in local SMEs and even those of big enterprises in headoffices and sales shops were behind the modernization of the 1960s and 70s. All big enterprisesof Japan modernized production lines and sent their engineers abroad to learn frontiertechnologies. Thus the big enterprises of Japan attained top efficiency in production lines inthe mid-1960s. Even so, head offices rejected the rationalization and retained traditionalmanagement styles, even in big enterprises. In some ways, this is what was praised asJapanese management.The globalization of the 1990s extinguished Japanese management systems in largeenterprises. But they are still alive in SMEs in general and local ones in particular. A carefulobservation and analysis of these surviving management systems can be expected to help thedevelopment of new types of business applicationware and business models. The "obsolete"local SMEs with traditional management systems can be key developers of new IT products.In contrast with the weakness in software in general, Japan is strong in game software forgeneral users. Among others, one reason may be the absence of a specialized professionalmarket in sophisticated military game software for political reasons. The absence of demandfor real war games or simulations has driven software makers toward game software for generalusers.Another reason may be the survival or presence of typical Japanese games, which haveprovided the seeds of new ideas for games. Go originally came from China and has beenhighly developed in Japan. The shag; of Japan was originally from Chinese chess but hasbeen revised in Japan. The Chinese-origin mah-jongg has been very popular amongbusinessmen and government officers. Besides these games, local areas retain a variety oftraditional games as their "niches". A collection of such games may be expected to provideseeds for the development of new game software. Local SMEs are well placed for suchdevelopment.Database of traditional techniquesThe Agency of Culture (part of the Ministry of Education) and NHK (the nationalbroadcasting corporation) have taken pictures of local customs, such as traditional festivals,traditional foods, folk dances and others for permanent record. This is extremely valuablefrom sociological and anthropological points of view.A similar project may be proposed to record traditional techniques, includingmanagement practices, in the form of sound, images, written documents and others. Moderntechnologies will find new seeds in these records.Local museums have collected the "ruins and fossils" of old tools, products, pictures andothers, some of which are related with traditional techniques in the areas. Indeed, local museumsdisplay the tools for wine (sake) fermentation in the areas. Local libraries have alsocollected documents and pictures of such things. Similar activities are seen for botanical orzoological gardens, aquariums and the likes. A salmon-fishing village operates an aquarium8

CACCI Journal, Vol. 1, 2006specializing in salmon and collects many salmon-related species. Further it collects old toolsfor salmon fishing and old documents about the salmon fishing system. The collection isvaluable in biological and sociological aspects. Anther fishing village operates an aquarium ofsardines, a third operates an aquarium of shellfish, and so on. But these collections are "randomly"dispersed in various areas and are not systematized at present. Therefore, the retrievalof the information collected is not easy. Systematic catalogues may be needed.Museums, libraries, botanical or zoological gardens, aquariums and similar institutes(simply "museums" hereafter) are in financial difficulties and some are now closed. Nationaland local governments recently privatized museums or suspended financial support to them.This is mainly because policy makers with legal or economic backgrounds are ignorant of thescientific tasks of these museums. Such policy-makers misunderstand museums merely asshowrooms to amuse children and do not know what is done behind the showrooms. It isurgent to make government people more literate about S& T and culture, besides politics andeconomies.Policy makers remember museums as "hells" in their childhood. They remember thattheir teachers forced them to visit the "hells" and to write reports on the assigned topics. This"bad memory" drives them to make policies to lead to their closing the "hells". Museums arestill open by saving costs by, for example, discarding some of the collected items.In fact, many zoos discard animals unique to the local areas as unattractive and insteadare now training pandas for walking on two hind legs in order to attract visitors and gainadmission fees. This concentration on particular species, I fear, will make systematiczoological research difficult. Indeed, this has disappointed local amateur zoologists andschoolteachers. Unaware of scientific and education methodologies, such as taxonomy, policymakers are interested only in the panda and other popular animals. Unlike the policy makers,however, some children and parents are interested in obtaining scientific or historicalknowledge in the museums. Such a learning attitude is the fountain of future S& T andculture.The financial deficit has driven governments to cut the budget for elementary schoolsand now to drain the S& T fountain.ConclusionThe discussions above present the merits of traditional techniques that are expected to beuseful to ETs. The recently formed cooperative unions of enterprises and universities wouldbe well advised to transfer traditional techniques to universities and high-tech big enterprisesfor filling deficiencies in ET. The creation of a knowledge database of traditional techniquesand the systematization of catalogues of techniques collected in dispersed museums areadvisable for easy retrieval of valuable information. Governments would be well advised tosupport the collecting activities of museums as the fountain of future S& T personnel.But these discussions are not valid just for Japan. Rather, the imbalance between themodern and the traditional resulting from policies for rapid innovation is common in manyrapidly developing countries. It is common knowledge that new technologies are stilldeficient and that traditional techniques have useful information to make up the deficiencies.It is also normal that traditional techniques survive mainly in local areas, and that their sys-9

CACCI Journal, Vol. 1, 2006tematic use helps in regional development. Moreover, it is known that traditional techniquesin local areas are useful foundations to motivate the local young generation to study S&T.References1. H. Eto, "Behaviour of Japanese R&D organizations - Conflict and its resolution byinformal mechanism", H. Eto and K. Matsui (eds), R&D Management Systems inJapanese Industries, Chapter 7, pp 139-239, North-Holland Pub., Amsterdam, 1984.2. H. Eto, "Prudence of science and technology policies: A historical review", H. Eto (ed),R&D Strategies in Japan - The National, Regional and Corporate Approach, Chapter 11,pp 225-296, Elsevier, Amsterdam, 1993.3. H. Eto and M. Fujita, "Regularities in the growth of high technology industries inregions", Research Policy, Chapter 18, pp 135-153, 1989.4. H. Eto. "Obstacles to emergence of high/new technology parks, ventures and clusters inJapan", Technological Forecasting and Social Change. Vol. 72, No.3, pp. 359-373,2005.10