Abstract Japan was the first non-western country to accomplish successful

industrialization, and the dominant perception of its ‘industrial policy’ had over-
emphasized specific characteristics of Japan. However, from the perspective of today’s
development thinking, Japan’s economic history shared a wide range of common
factors in usual economic development: macroeconomic stability, human resource
development, and economic infrastructure. Industrial policy in Japan sometimes worked
well and sometimes did not, depending on how effectively it counteracted market failure
and took advantage of market dynamism. We must note, however, that the external
conditions faced by Japan were widely different from what today’s developing countries
face. Keywords: industrial policy, industrialization, trade liberalization, macroeconomic
stability, economic infrastructure