The establishment of so-called inclined taxation system in 1951, supported by the Firm
Rationalization Promotion Law in 1952, also had a substantial impact. This system
provided generous corporate tax exemption arrangements in purchasing specific types
of machinery and equipment, and accelerated the introduction of foreign technologies
and investment on imported machinery and equipment. For a long time, due to the war
Japanese firms had no access to new technology developed abroad, and it was thus
extremely important to enable these firms to obtain technology transfers in order to
bridge the gap. In this regard, the system worked well.