It is imperative to realize the optimal resource allocation by shifting labor and capital resources within a firm, as well as among firms, industries, and regions, in accordance with a changing demand structure. In short, the metabolic process is also crucial in achieving economic growth.
Looking at the founding years of the top 300 firms in terms of market capitalization, there are more firms with long corporate histories in Japan than in the United States (Chart 24). This is evidence that firms themselves have made efforts to self-transform and have successfully managed to cope with a series of environmental changes.