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    <title>National Innovation Ecosystems: The Similarity and Disparity of Japan-US Technology Policy Systems toward a Service- Oriented Economy</title>
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    <abstract>Coinciding with the announcement of the National Innovation Ecosystem  proposed by the US Council on Competitiveness, Japan&apos;s Industrial Structure  Council proposed a significant shift from a technology policy  to an innovation policy based on the ecosystem concept. 



Aiming at analyzing the complex mutual relations between  human activities centered around industry and the surrounding  environment,  Japan&apos;s Ministry of International Trade and Industry postulated the  concept of  industrial ecology in the early 1970s, similar to that initiated  in the USA in the  early 1990s by the National Academy of Engineering, which  corresponds to  the mutually inspiring cycle in the two nations. 



The basic principle of industrial ecology suggests  substitution among  available production factors in a closed system in order to achieve  sustainable development under certain constraints. Based  on this concept,  Japan achieved notable energy efficiency improvements in the 1980s  that can be attributed to technology substitution for energy. 



Contrary to its economic stagnation in the 1980s, the USA  achieved a significant economic development in the 1990s,  while Japan experienced a &quot;lost decade&quot; due to economic stagnation.  The US success can be attributed to information technology (IT)  substitution for the traditional manufacturing technology,  leading to a new  functionality development corresponding to the requirement of  an information  society. However, after the bursting of the IT bubble, the USA has again  been confronting the &quot;new reality.&quot; 



While the USA and Japan demonstrated contrasting success  through  mutual inspiration, given the new paradigm of a  post-information society  moving toward a ubiquitous society in the early 20th century,  they need a  new approach to sustaining their national innovation.  Recognition of this led  both countries to reexamine the broader application  of the ecosystem,  leading to the concept of the National Innovation Ecosystem. 



Based on an empirical review of the technology policies of the USA  and Japan over the last three decades with a focus on the ecosystem  perspective, this paper attempts to demonstrate the hypothetical view  outlined above and to provide new insights for a service-oriented economy.</abstract>
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