Many Japanese SMEs have the technology and knowledge base, yet are capital-poor with exorbitantly high labor and materials operations costs relative to Chinese firms.
An infusion of foreign talent into a country with a faltering professional league and poor World Cup performances has paid dividends over the long term in knowledge-sharing and experience, contributing to revivals of both professional league and World Cup play.
The result is a profound imbalance in the global production of knowledge: probably the most powerful engine of divergence in global well-being between the rich and the poor.