Japan, a country known for its cutting-edge technology and innovative spirit, has been stuck in the dark ages of digitalization for decades. While it boasts world-class robotics and aerospace industries, its digital capabilities lag behind other developed nations.
The problem began to manifest in the 1970s and ’80s, when Japan’s electronics industry led the global charge, but failed to adapt to software-driven economies. The country’s risk-averse culture and seniority-based hierarchical system also hindered innovation.
In contrast, small businesses and individuals were slow to adopt digital tools, preferring traditional methods like fax machines and personalized ink stamps. Larger corporations and institutions faced significant barriers to change, making it difficult for them to modernize their services.
The Covid-19 pandemic exposed Japan’s digital shortcomings, with the government struggling to respond using outdated tools. However, in 2020, the government launched a dedicated Digital Agency to address the issue, introducing initiatives like cloud-based infrastructure and smart social security cards.
Companies are now racing to catch up, hiring external consultants to help them digitize their systems. Despite growing pains, experts believe that Japan can close the digital gap with some Western peers in five to 10 years.
As Japan continues its journey towards digitalization, it’s clear that there is a public hunger for modernization, particularly among younger generations. With companies embracing cashless payments and online services, the country is slowly but surely moving forward, albeit with some lags behind other nations.
Source: https://edition.cnn.com/2025/08/09/asia/japan-digital-technology-fax-intl-hnk-dst