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It's much more complex than that.

Japan has the lowest TOEFL score in Asia amongst 30+ countries. English proficiency is much higher in both advanced and developing Asian economies. This is not inherently a blocker for software development, but it reflects a trend counter to globalization and being receptive to American practices.

Japan has less billionaires than both Hong Kong, SK and Taiwan, all of which have a fraction of the population. Tax policy is one part of this, but there is a cultural aversion to risk taking. The typical apartment lease is 2+ years, which reflects the sense to long term commitment. There's also more restrictive regulation and actually following policies to the tee. Even human-powered bicycles require registration and not too powerful e-bikes requires license plates, registration, insurance. All of this means there are less startups, less startup ecosystem, less hackers. Heck, Indonesia has since grown a more vibrant startup ecosystem and even deca-unicorns.

Also reigning in from Japan's manufacturing era is prioritizing reliability and virtueing craft. Japan is still building appliances and electronics that last decades, which is at odds with the SDLC chasing shiny new features for smartphones every year. Unfortunately, consumers have spoke with their wallets that they value updates more than reliability. Ironically, Japan's software is pretty crap and not reliable. My bank is one of the more vibrants one, going through a DX digital experience / "digital transformation" as it is called, but all of the technology, hardware and software is atrocious. It's been the second time within a year where my ATM card has stopped working because it's gotten demagnetized. It's a lot of security theater.



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