From the viewpoint of firms, the promotion of technological innovations means that there will be correspondingly additional costs, since they will need to invest in human and management resources. Looking back, since the 1990s, the growth rate of the economy and the inflation rate have remained low in Japan.
And, while low interest rates continued for a prolonged period and large-scale public investments were implemented constantly, the metabolism of the economy tended to be low, and some firms and parts of the corporate sector with low productivity remained. As a result, firms’ profit expectations overall seem to have declined, preventing their endeavors to promote drastic technological innovation.