The Economist December 1st 2007 - Online Public Access Catalog

mobile technology, optics, robotics, digital animation and video games.Despite these hopeful signs, however, some worries remain. One concern is that if economic growthstrengthens and more full-time jobs are created, would-be entrepreneurs may be tempted to take thesafer option of a job instead. Japan's recent wave of entrepreneurship, suggests Randall Jones at theOECD, was caused in part by the lack of job opportunities for talented graduates during the hiring freezeof the 1990s. But Mr Hori insists that times have changed, and “the best and brightest are now going intothe entrepreneurial field, which has never happened before.”Another concern is that too much government effort to encourage start-ups and promote innovation isconcentrated on manufacturing and technology rather than services, which is arguably where change ismost needed. To keep the momentum going, the OECD recommends reductions in capital-gains tax toencourage venture capital; more portable pensions and performance-based pay for researchers toencourage mobility between academia and industry; a broader educational curriculum; and thepromotion of cross-border trade and investment, since good ideas often come from abroad. ChangingJapanese attitudes to entrepreneurship will take time and further reforms, but at least the wheels havestarted turning.Copyright © 2007 The Economist Newspaper and The Economist Group. All rights reserved.