Lessons from Japan's 'Lost Decades': An underdog in the era of innovation and entrepreneurship

Editor's note: The ongoing discussions about Japan's "Lost Decades," a period of prolonged economic stagnation spanning 30 years, have sparked debates on whether Japan indeed lost momentum for three decades, the reasons behind it, and the potential takeaways for China. I define this phase of human development driven by the evolution of semiconductors as the "era driven by Moore's Law." Collapse of electronic kingdom and challenges of automotive powerhouse Over a decade ago, I made two predictions — Japan's electronic kingdom would collapse and Japan's leadership in the auto industry would face severe challenges. In March 2010, I wrote a column for the Global magazine titled "Toyota's Real Crisis," clearly pointing out that Toyota, which had reached its peak under the old industrial environment and production model, would face challenges from emerging electric vehicle manufacturers like Tesla and BYD. Therefore, it's hard for sci-tech companies to achieve the L-shaped development in Japan.