1 The Japan Industry Productivity Database covers annual data of capital and labor input and the input-output table, as well as accessory data such as technical knowledge stock and country-by-country industry-wise trade, for 84 sectors based on the SNA input-output table. We use here the data updated up to 2002 by Kyoji Fukao, Tsutomu Miyagawa et al. Since input labor and capital data are adjusted for quality of labor and capital, the TFP values exclude such data. One study using the JIP Database was released by Kyoji Fukao, Tomohiko Inui, Keiki Kawai and Tsutomu Miyagawa in 2003.