Restricted Competition

Firms were encouraged to
- focus on product quality and customer service,
- avoid price competition, and
- cooperate on basic research and development.
In extreme cases, price competition was converted into price coordination (i.e., "dango" or cartels).
Research cooperation was often coordinated by government research institutes, and MITI itself would often assign research fields to particular firms. Discipline was maintained with the cooperation of main banks (which managed capital flows) and trading firms (which were essential in promoting the massive exports required to achieve world-class economies of scale).
Johnson focused mostly on successful cases like steel, shipbuilding, automobiles, and computers. He also ignored some cases where the authorities turned a decidedly cold eye toward a firm's plans, yet they succeeded (motorcycles).