154 R. M. URIU
Past industrial policy efforts in Japan have focused on three stages
of development. The first is the initial scientific research stage, typically bringing together the academic and business worlds. In the past,
the Japan government has supported a wide range of research efforts
and will then supply more concentrated support for those technologies that seem most promising. The second stage has involved public
policy support for the development and testing of commercial products.
While many governments have supported their industries in this manner,
Japan is distinctive in providing concentrated support for the third stage:
the full-scale commercialization of selected industries, often through the
encouragement of exports, until the industry achieves true commercial
viability.
The Origins of Japan’s Industrial
Policy for Hydrogen and Fuel Cells
Japanese industrial policy has often been most crucial in the earliest stage
of an industry’s development, as private firms have low incentives to invest
in an industry that is so far away from commercial viability. It is thus
important to look at the origins of Japan’s policies for the hydrogen and
fuel cell industry, which date back to the 1970s. Then, as now, Japanese
energy policymakers have tried to strike a balance between energy security, economic development, and environmental concerns. A long-term
dilemma for Japan has been how to access cheap (often imported) sources
of energy without becoming overly dependent on external sources of
supply. Moreover, since at least the 1990s, Japanese policy has reflected a
concern for mitigating global climate change.
The story of Japan’s hydrogen and fuel cell policy begins in 1974 when
hydrogen was first mentioned in an official energy policy statement. That
was of course the year of the First Oil Shock, an event that spurred Japan
to search for ways to decrease its demand for imported oil. The initial
policy focus was on reducing energy consumption, but the government
also began to investigate new sources of energy. Japan’s core policy was
known as the “Sunshine Program,” which aimed to research a range of
“new energy” that included hydrogen along with solar, geothermal, coal,
and nuclear power (Behling 2012; Hoffman 2012). 6
After years of research and product development, most of which was
taking place outside of the public view, Japan’s interest in hydrogen and
fuel cell technology took a major leap forward in the 1990s in the context
Past industrial policy efforts in Japan have focused on three stages
of development. The first is the initial scientific research stage, typically bringing together the academic and business worlds. In the past,
the Japan government has supported a wide range of research efforts
and will then supply more concentrated support for those technologies that seem most promising. The second stage has involved public
policy support for the development and testing of commercial products.
While many governments have supported their industries in this manner,
Japan is distinctive in providing concentrated support for the third stage:
the full-scale commercialization of selected industries, often through the
encouragement of exports, until the industry achieves true commercial
viability.
The Origins of Japan’s Industrial
Policy for Hydrogen and Fuel Cells
Japanese industrial policy has often been most crucial in the earliest stage
of an industry’s development, as private firms have low incentives to invest
in an industry that is so far away from commercial viability. It is thus
important to look at the origins of Japan’s policies for the hydrogen and
fuel cell industry, which date back to the 1970s. Then, as now, Japanese
energy policymakers have tried to strike a balance between energy security, economic development, and environmental concerns. A long-term
dilemma for Japan has been how to access cheap (often imported) sources
of energy without becoming overly dependent on external sources of
supply. Moreover, since at least the 1990s, Japanese policy has reflected a
concern for mitigating global climate change.
The story of Japan’s hydrogen and fuel cell policy begins in 1974 when
hydrogen was first mentioned in an official energy policy statement. That
was of course the year of the First Oil Shock, an event that spurred Japan
to search for ways to decrease its demand for imported oil. The initial
policy focus was on reducing energy consumption, but the government
also began to investigate new sources of energy. Japan’s core policy was
known as the “Sunshine Program,” which aimed to research a range of
“new energy” that included hydrogen along with solar, geothermal, coal,
and nuclear power (Behling 2012; Hoffman 2012). 6
After years of research and product development, most of which was
taking place outside of the public view, Japan’s interest in hydrogen and
fuel cell technology took a major leap forward in the 1990s in the context