Small and Medium Size Companies in Japan

According to the White Paper on Small and Medium Enterprises in Japan, 99.7% of companies are small and medium size companies. 1 Moreover, the same survey says that the total of small and medium size companies output almost the same value as that of the large companies. 2

Another paper explains that big companies’ ability to effectively increasing R&D is shrinking. 3 Since R&D is a major area where innovation occurs, big companies might have more limits on incubating innovation. On the other hand, small and mid size companies are striving to find their way out to manufacture devices and design tools, or special parts for those devices that offers value and manageable for smaller companies. 4

When AI was predicted to change the world, pour capital into global economy, its limitation has been spotlighted, and the grandiose plans have been pended 5, risk-taking is necessary regardless of the company size.

1,2 https://www.chusho.meti.go.jp/pamflet/hakusyo/2019/PDF/chusho/00Hakusyo_zentai.pdf, P.xii

3 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiet-_E29PqAhUKzIsBHb1_DJgQFjAEegQIBRAB&url=https%3A%2F%2Fsurugadai.repo.nii.ac.jp%2F%3Faction%3Drepository_action_common_download%26item_id%3D1763%26item_no%3D1%26attribute_id%3D18%26file_no%3D1&usg=AOvVaw1-FuIlxJ0PS7VVAsAxqL9p

P.59

4 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiet-_E29PqAhUKzIsBHb1_DJgQFjAEegQIBRAB&url=https%3A%2F%2Fsurugadai.repo.nii.ac.jp%2F%3Faction%3Drepository_action_common_download%26item_id%3D1763%26item_no%3D1%26attribute_id%3D18%26file_no%3D1&usg=AOvVaw1-FuIlxJ0PS7VVAsAxqL9p

5 https://www.economist.com/technology-quarterly/2020/06/11/an-understanding-of-ais-limitations-is-starting-to-sink-in