This led Thai industrialization to contribute to high
economic growth with insignificant technological content and weak absorptive labour. In
contrast, Japan, South Korea and Taiwan are prominent in high labour absorptive capacity of
industrialist. In the Japanese case it could be seen as a proto-type of the developmental state
in terms of technology transfer and foreign investment during the 1950s. The Japanese state
exercised its power to channel foreign technologies into targeted key industries set by the
Ministry of International trade and Industry MITI as well as to ensure favorable contract
terms for Japanese firms. A foreign investment law was set up to empower the state to ensure
that most technology transfer contracts must have benefited her economy.