1. Introduction
In 1994, Japan introduced a policy known as the “Angel Plan” to help stimulate its economy and encourage technological innovation and entrepreneurship in its small and medium-sized businesses (SMEs). The plan was put forward by then Prime Minister Tomiichi Murayama, and has since become one of the most successful economic policies in Japan’s history. In this article, we will explore the background of the Angel Plan, its goals, implementation, impact on Japan’s economy, criticism of the plan and finally draw a conclusion.
2. Background of the Angel Plan
The Angel Plan was created in response to a period of rapid economic growth in Japan during the 1980s that resulted in an overheating economy. This led to an increase in prices and a decrease in wages which caused public discontent with the government. In order to address this issue, Prime Minister Tomiichi Murayama proposed a plan that would focus on stimulating innovation and entrepreneurship among Japanese SMEs by providing them with financial incentives such as tax breaks and subsidies.
3. The Goal of the Angel Plan
The main goal of the Angel Plan was to create an environment that was conducive for innovation and entrepreneurship among Japanese SMEs by providing them with financial incentives such as tax breaks and subsidies. It also sought to help create new jobs for young people who were entering the workforce during this period of economic stagnation. Additionally, it aimed to reduce government spending while still stimulating economic growth through investment in innovative technologies and businesses.
4. How the Angel Plan was Implemented
The Angel Plan was implemented through several measures including: reducing corporate income taxes for SMEs; providing loan guarantees for start-up companies; increasing venture capital investments; creating government-backed incubators; encouraging research & development (R&D); reforming bankruptcy laws; and improving access to capital markets for SMEs. Additionally, it provided incentives for foreign direct investment (FDI) into Japanese firms, as well as tax credits for research & development activities conducted within Japan.
5. The Impact of the Angel Plan on Japan’s Economy
Since its implementation, the Angel Plan has had a significant impact on Japan’s economy. It has helped create new jobs for young people entering into employment during this period of economic stagnation while also helping to reduce government spending through increased investment in innovative technologies and businesses. Additionally, it has encouraged foreign direct investments into Japanese firms while providing incentives for research & development activities conducted within Japan which have helped spur technological advancements across all industries throughout the country. Furthermore, it has allowed small and medium-sized businesses to access capital markets more easily which has further encouraged innovation within these firms as well as increased their competitiveness against larger corporations operating within Japan’s borders.
6. Criticism of the Angel Plan
Despite its success in stimulating innovation and entrepreneurship among Japanese SMEs there have been some criticisms leveled at the plan over time from both domestic sources as well as international ones due to its perceived protectionist nature towards domestic firms over foreign ones operating within Japan’s borders.Additionally,some argue that it does not do enough to encourage competition amongst domestic firms or provide adequate incentives for foreign direct investment.
7.Conclusion
In conclusion,it is clear that Japan ‘ s 1994 Angel Plan has had a significant impact on its economy since its introduction.It has helped stimulate innovation amongst small and medium – sized businesses while encouraging foreign direct investments into Japanese firms.However,there are still criticisms leveled at it due to its perceived protectionist nature towards domestic firms over foreign ones operating within Japan ‘ s borders.Nevertheless,overall,it can be said that this policy has been successful in helping boost technological advancement throughout all industries acrossJapan.
8.References
1) “Angel plan: A brief history”; The Economist ; April 30th 2019 ; https : / / www.economist.com / finance – economics / 2019 / 04 / 30 / angel – plan – a – brief – history
2 ) “Angel Investment Network : What is an angel investor?” ; https : / / www.angelinvestmentnetwork.co.uk / what – is – an – angel – investor ? 3 ) “Japan ‘ s 1994 “Angel” Economic Stimulus Package” ; Tokyo Economic News ; March 11th 1997 ; http : //www3tokyoeconomicnewscom/en/archives/1997/03/11/japans-1994-angel-economic-stimulus-package/
9.About Charles R Tokoyama
Charles R Tokoyama is CEO at Japan Insiders where he provides insights into doing business successfully in Asia Pacific regions like China & Japan through his articles & videos He is also an experienced entrepreneur having built several successful companies within these regions
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
