Weaknesses undermine Japan’s advanced IT sector

Subject Japan's software sector. Significance Prime Minister Shinzo Abe has called for Japan to engage in the ‘Fourth Industrial Revolution’ -- areas such as the 'Internet of Things', big data and artificial intelligence. However, Japan is lagging behind in most advanced high-tech sectors. The country is strong in particular areas, mainly manufacturing, but its software companies have not progressed in comparison with foreign competitors. Impacts Japan’s software providers are unlikely to catch up with their global competitors. Japanese enterprise software is oriented to suit local companies' needs, with little attraction elsewhere. Japan’s software users will look abroad for the latest capabilities. Because of low domestic salaries, the top Japanese software engineers are lured away by foreign companies.