Skills and Technological Development in the Early Stage of Industrialization : Implications from Japanese Experiences in the Meiji Era

Japan embarked on its major efforts to industrialize during the later part of the 19th century, the Meiji era. This article examines the process of acquiring and internalizing advanced technology and developing Japan's human resources during that period by applying a model developed by the author. This model analyzes the challenges developing countries currently face with respect to skills development: namely, bridging the three gaps of policy, relevance, and finance of publicly provided skills development. Via a case study of the iron and steel industry, the article describes: how the government made a strategic choice with respect to technology; how the government played the dual roles of direct management of the industry as well as stimulating the growth of private industry; the extent to which the government made conscious efforts to use the existing socio-economic system related to the industry; and how it used local resources without depending on foreign loans. The government initially depended on foreign experts, gradually replacing them with domestic experts who were initially trained abroad but later at home, followed by development of middle-level skilled workers. The article concludes that many of the factors that were key to the success of the countries that grew out of underdevelopment over the last half century were present in the policies and approaches adapted by Japan during the Meiji era.