The purpose of this paper is twofold: to identify the origin of actual Japanese crisis and the underlying conditions which conducted Japan into the recession; to examine why all economic stimulus Japanese government proposes fail to stop the decline of Japanese economy.

During the 80's, Microelectronical Systems (MEMS) have emerged as a new technological paradigm in the United States. From early one, some of Japanese private companies, who had already been engaged in a fierce technology race to develop semiconductors, decided to engage their R&D efforts in this...