Acknowledgements Part I: The Contribution of Theory to Convergence 1. Systemic Change, Convergence, and Institutional Choice - An Introduction and a Summary 2. Japanese Theory of Industrialization/Modernization: Between Liberalism and Developmentalism3. The Evolutionary Perspective on Institutional Divergence and Competitive Advantage4. A Comparative Institutional Analysis of Japanese Computer Network Systems Part II: The Pressure for Institutional Change in Japan and Germany 5. Evolution, Spatial Self-Organization and Path Dependence: Tokyo's Role as an International Financial Centre6. Technology and Innovation Management in German and Japanese Manufacturing Firms: Strategic Reorientation and Implications for Technological Competitiveness7. Japanese and German Corporate Governance in Transition: Forces of Change and Persistence Part III: The Impact on the Economy: What Must Change, What Can Stay? 8. The Japanese Firms Purchasing System: Strategic and Structural Changes of the 80s and 90s9. Implementation of Standards: What About the Possibility of a Convergence Production System by International Rules10. Flexible Rigidities and Redundant Capacities: Liberalization of Employment in Japan and Germany Part IV: Consequences for Public Policy 11. Coping with Market Rigidities in Germany and Japan12. The Changing Role of Higher Education in the Process of Internationalisation and Globalisation - A Japan-Europe Comparison