To be competitive on the international scene they have some huge obstacles to overcome.<p>The electronics manufacturing boom that happened after WWII wasn&#x27;t spontaneous. It happened due to a strategic partnership with the US and Japan. Many Japanese were sent to US universities to be educated on Electrical Engineering, Mechanical Engineering, and Computer Science. In addition, Japan received a significant amount of funding from the US to bootstrap their developing economy which later grew into a manufacturing powerhouse.<p>Currently. Japan is a developed nation at a peak of its manufacturing capacity with a decreasing working population and increasing non-working population.<p>Aside from Macro Economic constraints, there are some very real cultural barriers hurting their competitive standing on the international stage.<p>First, even with a population boom the only way to sustain current production capacity is to open the borders to immigration. People outside Japan are very interested in moving their to work&#x2F;live but widespread xenophobia is still a very real problem.<p>Second, the public perception that the Japanese work ethic is poisoned by too much emphasis on perception over production.<p>I can&#x27;t speak on the reality of living&#x2F;working in Japan because I&#x27;ve never been there but I have seen numerous videos and posts lately by western tech workers who have. The popular consensus seems to be, &quot;Japan is an amazing place to be but I&#x27;d never stay there long-term.&quot;<p>From what I can tell, the culture encourages people to work extremely long hours at a great personal expense whether or not that time is productive. Time is filled with &#x27;busy work&#x27; that&#x27;s neither essential nor intellectually satisfying. To spend less time at work than your boss is considered shameful to the point that those who don&#x27;t conform will be stigmatized for unsatisfactory performance. 10-12 hour days and&#x2F;or being required to join the boss&#x2F;coworkers after work for drinks are the norm, not the exception. Unsat performance reviews make it impossible to move up the latter and&#x2F;or get hired at another company so there&#x27;s no choice but to conform.<p>Either one of these issues will deter any sane high-skilled worker from immigrating to Japan. Both are beyond recourse.<p>Silicon Valley (and the US tech centers in general) have a huge advantage in that they attract top talent from around the world. Not only is acquiring the top talent important for success but bringing people from diverse backgrounds encourages the cross-pollination of ideas.<p>I&#x27;m not saying these guys won&#x27;t be successful. The Japanese are intelligent and hard working people. I&#x27;m saying that even at your best, a Japanese AI startup will consist of a less talented, less dynamic, monoculture. Compared to Silicon Valley which is a cultural, intellectual, and socioeconomic powerhouse.