Meiji Restoration Series | Episode 9: Why Was Japan Able to Achieve an Industrial Revolution in Such a Short Time?

~ The Secret to Transforming Edo-Period Accumulation into Modern Industry ~

Japan did not build a modern nation from scratch

When looking at Japan after the Meiji Restoration, many people think this:
"Japan imported technology from the West and modernized all at once."
Certainly, the Meiji government actively introduced overseas technology.

Steam engines.
Railways.
Modern factories.
Western-style armaments.
Legal systems.
Educational systems.

Many things were learned from the West.
However, there is an important question here.
Why was Japan, among the many countries that tried to modernize during the same era,
able to grow into an industrial nation in such a short period?

If you simply import technology, it does not guarantee success.
Even if you buy machines, they will not run if there is no one to handle them.
Even if you build factories, they cannot be maintained if there is no one to manage production.
Even if you introduce systems, they will not function if there is no social infrastructure to operate them.

In other words,
the Industrial Revolution is not a problem of machines.

It is a problem of people and organizations

that it is.

Was the Edo period really a "backward era"?

Regarding Japan before modernization, there was once a view that:
"The Edo period was closed off and its development was delayed."

However, that evaluation has changed significantly today.
In Edo-period Japan, many elements existed that would become the foundation for modernization.
For example,

Education.
Commerce.
Technology.
Logistics.
Finance.

These had already reached a high level.
In other words, Meiji Japan
did not build an industrial nation from a state of nothingness.
It transformed the assets accumulated during the Edo period
into the new form of modern industry.

The educational level of the Edo period supported industrialization

What is necessary for an industrial revolution?
It is not just machines.
It is the human resources who can understand, operate, and improve them.

Meiji Japan had that foundation in place.
During the Edo period, terakoya (temple schools) had spread throughout the country.
At terakoya,

reading and writing,
abacus,
commercial arithmetic,
and composition

were taught, along with other skills necessary for daily life.
Of course, it was different from the modern school system.
However, the fact that a culture of reading text had spread even to the common people
had great significance for modernization.

Working in factories.
Reading technical books.
Understanding work procedures.
Managing account books.

These capabilities were essential for an industrial society.

An important, yet little-known factor

The greatest asset that supported Japan's industrialization was a "culture of accepting technology."
In a society that rejects new things, foreign technology does not take root.
However, Japan had a culture of
learning from abroad,

and improving things for themselves.

This culture existed.
It did not suddenly emerge in the Meiji era.
It was present within the artisan and merchant cultures that had continued since the Edo period.

For example, artisans did not just
mass-produce the same goods.

They were constantly pursuing

how to improve quality,
and how to increase efficiency.

This philosophy of improvement was highly compatible with modern industrialization.
This mindset of improvement was very compatible with modern industrialization.

Edo-period artisan skills led to industrialization

When we think of the Industrial Revolution, we think of

mechanization,
mass production,
and the factory system.

These images are strong.
However, in the early stages of industrialization, skilled personnel were extremely important.
In the factories that Japan developed in the early Meiji period,

Western machinery x Japanese artisan skills

a combination was born.

For example, the silk reeling industry.
It was a field that represented Japan's modern industry.
Simply introducing machinery was not enough to achieve high-quality production.

Delicate work,
quality control,
and on-site improvements.

These capabilities were necessary.
Japan transplanted the artisan skills that had existed since the Edo period into modern factories.

The purpose of government-run factories was 'human resource development' rather than 'profit'

In the early stages, the Meiji government actively built factories.
A prime example is the government-run model factory.

Why did the government build factories itself?
The reason was not simply for profit.
It was because the private sector still lacked the experience to operate modern industries.

The government

Build factories.
Train engineers.
Accumulate management know-how.
And then transfer them to the private sector.

This was the role they played.
In modern corporate terms, this is similar to:

Research and development departments.
New business development departments.
Human resources development departments.

It is close to these.

What the Tomioka Silk Mill Symbolized

A prime example of this is the Tomioka Silk Mill.
Established in 1872, the Tomioka Silk Mill was a symbol of Japan's modern industrialization.
However, its true value was not in the buildings or the machinery.

What was important was learning Western technology and converting it into a system that the Japanese could operate.
That was it.

Learn from foreign engineers.
Train Japanese engineers.
Spread the technology throughout the country.

Through this process, Japan's overall industrial capability increased.

Japan's Success Was Not a 'Copy' but a 'Fusion'

Here, it connects to the theme of Episode 3.
A characteristic of Japan's modernization is that it did not simply copy the West.

Learn the systems.
Introduce the technology.
However, redesign them to fit Japanese society.

This was a common feature throughout the Meiji Restoration.

Western-style systems.
Japanese organizational culture.
Technological accumulation from the Edo period.

By combining these,
they created a Japanese-style modernization.

The True Role of Government-Operated Factories Was Not 'Profit'

Regarding the government-operated factories built by the Meiji government in its early stages, it is often explained that
'the government fostered industry.'

However, their essence was not merely building factories.
What the Meiji government lacked.
That was,

the human resources and experience to operate modern industry

that was it.
In the Edo period, Japan already possessed commercial ability and technical skills.
However,

Using steam engines.
Managing mass production.
Operating factory organizations.
Selling to overseas markets.

They lacked that kind of experience.
Therefore, the government first became the experimental subject itself.

Build factories.
Introduce technology.
Train personnel.
Accumulate management know-how.
And then, transfer those capabilities to the private sector.

In other words, government-run factories were
not just manufacturing facilities, but
schools for nurturing Japanese industry.

The greatest achievement left behind by the Tomioka Silk Mill

The aforementioned Tomioka Silk Mill.
It is now known as a World Heritage site, but its value lies in more than just the buildings.
What was truly important was

"proving that the Japanese could operate modern factories"

that point.
Initially, Japan invited foreign engineers.
However, the goal was not to depend on foreigners.

The Japanese learn,
the Japanese operate,
and they spread it throughout Japan.

This was the goal.
In fact, the engineers who were trained at the Tomioka Silk Mill
moved to silk mills across the country and supported the development of Japan's industry.

In short,
a single factory led to the development of industrial talent for all of Japan.

From government to private sector—a major shift in Japanese industry

However, the government cannot continue to operate all industries.
The state has its limits.
The role of the government is to

create systems.
prepare the foundation.
be responsible for national security.

That is it.
On the other hand, the role of companies is to

look at the market.
create products.
compete.
generate profit.

That is it.

Therefore, the Meiji government gradually transferred government-run businesses to the private sector.
This flow is

the transition from government to private sector

.
Here, it connects to the story of Eiichi Shibusawa from Episode 8.

The state builds the foundation of industry.
↓
Private companies grow.
↓
Industry develops through market competition.

This cycle began.

The growth of corporate groups like Mitsui and Mitsubishi

Crucial to discussing the industrial development of modern Japan is the
formation of corporate groups.
Representative examples are the
Mitsui Group and the Mitsubishi Group.

They were not merely trading companies.

Finance.
Mining.
Shipbuilding.
Trade.
Manufacturing.

They expanded their businesses into many fields.
Why were such corporate groups born?

The reason is that
modern industry required comprehensive strength.

Factories alone were not enough.
Capital was needed.
Logistics were needed.
Sales networks were needed.
Technological development was needed.

It became an era where a single company could not handle everything on its own.
Therefore, management that combined multiple businesses developed.

The strength of Japanese manufacturing was its 'culture of improvement'

When considering the industrial development of Meiji Japan, there is another important factor.
That is the culture of improvement.

As a strength of Japanese companies that would later be recognized by the world,

Quality control.
On-site improvement.
Continuous improvement.

This way of thinking.
Its origins lay in the artisan culture of the Edo period.
Artisans were not just people who repeated assigned tasks.

How can I make something better?
How can I reduce waste?
How can I improve quality?

They were always thinking about these things.
This culture was passed down to the on-site improvements of modern factories.

An important, yet little-known factor

The reason for the success of Japan's industrial revolution is
not just that 'the government was excellent.'
Nor is it just that 'they introduced Western technology.'
The essence is

the ability to convert past social assets into the mechanisms of a new era

itself.
From the Edo period,

Education.
Artisan skills.
Commercial culture.
Regional networks.
Credit systems.

Instead of destroying these, they were reallocated to modern industry.
This is also common to the Abolition of the Han System in Episode 4.
The Meiji government did not completely reject the old ways.
They identified usable assets and gave them new roles.

Why was Japan able to become an industrial nation in such a short period?

In the latter half of the 19th century, compared to the Western powers,
Japan had a large gap in economic scale.
However, its growth rate was extremely fast.

The reason for this is
that they did not start from zero.
During the Edo period,

Human resources.
Technology.
Commercial experience.
Social order.

had been accumulated.
The Meiji government focused these toward the direction of a modern state.
In other words, Japan's modernization was

not a reform that discarded the old Japan.
It was a reform that adapted the capabilities
that existed within the old Japan to a new era.

Connection to Modern Business

The same principle exists in corporate management.
When people talk about corporate reform, in many cases,
it is thought of as "discarding the old."
However, what is truly important is

what to keep,
what to change,
and how to reallocate it.

Cultivated over many years,
Technology.

Customer base.
Employee experience.
Corporate culture.

These are not relics of the past.
If utilized correctly, they become future competitiveness.
Conversely, if you try to protect past successes as they are, a gap with the times will emerge.
The reason Meiji Japan succeeded is

not because it rejected the Edo period.
It is because it converted the assets of the Edo period into the power of a modern state.

This is the same for corporate reform.
Transformation is

not about destroying the past.
It is about finding the value sleeping in the past,
and changing it into a form that can be used in the future.

Next Episode Preview

Meiji Restoration Series | Episode 10
Why did Meiji Japan expand overseas?
～ National strategy for surviving in the era of great powers ～

Japan grew as a modern state.
However, the world was in the age of imperialism.
As Western powers expanded their influence overseas,
why did Japan choose the path of overseas expansion?
It was not merely territorial expansion,
but a national strategy for a small country to survive in the competition among great powers.
What was 'Enrich the Country, Strengthen the Military'?
Why did Japan head toward the Sino-Japanese and Russo-Japanese Wars?
We will analyze the next management decision of the Meiji state.

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