Japan’s current slow-awakening to the merit(s) and ‘power’ (i.e., profitability) of software has the potential to create a huge-surge in application development from outright innovation to value-added services (in areas ranging for mobile handsets to appliances to transportation to health care… among other avenues) domestically and abroad.
Think about it this way: with a fascination and historical focus on hardware (which resulted in the importance / value of software being largely dismissed) a highly educated (and graying workforce) a history of crafting, high-quality goods and a mature economy (that’s been struggling under deflationary challenges for a decade-plus) these realities are fertile ground for change and pushing the boundaries on the conventional wisdom (again, largely dismissive regarding the upsides of software development) that manufacturing is supreme (especially when like other OECD nations that sector continues to be moved to emerging economies).
In sum, profit margins on software are much higher than on hardware – so if ‘economic determinism’ is the impetus for pursuing a new orientation there should be no shortage of individuals / start-ups willing to make a move in said direction.
From the Economist: http://goo.gl/yqadh