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As the influence of Japan in the world economy becomes greater, Japanese companies will necessarily be globalized in a borderless economy. There are two aspects to the information revolution. The first is rapid technologic innovation in various fields such as microelectronics, new materials and biotechnology. The second is the reorganization of industrial structure. These environmental changes require the Japanese economy to be a driving force of technological innovation and to create new business and new employment opportunities. Japanese companies should meet requirements not only to survive themselves, but also to lead the new industrial revolution throughout the world. We can say that the concept of HES proposes a new economic system which Japan has actually developed in the process of adaptation to a changing environment. HES is a system that can integrate both the efficiency of capitalistic competition and the equality of socialistic democracy. It is a system that can resolve the internal contradiction of both the systems of capitalism and socialism, in which power is concentrated in minoritythe capitalists or the central government. Moreover, HES is a system of high productivity, which the Japanese economy demonstrates. In Japan, there seems to have been an invisible principle of coexistence of opposites.Historically, Japan has allowed the coexistence of various religions such as Shintoism, Buddhism, Confucianism, Taoism and Christianity. In the process of modernization after the Meiji Restoration, Japan has incorporated Western science and technology onto the Eastern spiritual culture. Since the Second World War, Japan has built a cooperative relationship between management and labor unions. Today, Japan is trying to synthesize capitalism and socialism into a new economic system. | 
