In the late 1990s, Japan was a global leader in technology. However, twenty years later, its digital world feels stuck in the past. While Japan’s physical engineering—like its famous bullet trains—is still world-class, its digital services are often frustrating. Many tasks still require paper forms, fax machines, and physical stamps (hanko).
This digital delay is caused by the "iron triangle," a rigid connection between the government, big business, and bureaucracy. While this system helped Japan grow quickly after World War II, it now makes it hard for the country to adapt to new software and startups. Because this alliance avoids risk, Japan now ranks low in digital competitiveness.
Even though the government created a "Digital Agency" in 2021, change is slow. For many, Japan's high-quality physical infrastructure makes these digital problems easier to ignore, blending modern engineering with old-fashioned habits.