After the war, Nissan and Toyota were hobbled by low production productivity and were at risk of slipping into bankruptcy if not for a combination of huge governmental loans and special orders from the United States Army during the Korean War.11 Japanese automotive firms initially relied heavily on technology transfer from the United States and Europe. Toyota was more aggressive in developing internal research and development capabilities, a strategy eventually adopted by other Japanese automobile manufacturers.12 Japanese automotive manufacturers also concentrated on process improvements, with Toyota being an early innovator.