That’s the title of a Newsweek article that explores why Japan is not more of a powerhouse on the world technological stage.

Japan is a technological powerhouse. If you exult in brilliantly bizarre gadgetry, engineering wonkery and prodigious feats of craftsmanship, you’ll feel right at home. It’s also an extremely sophisticated business environment. The Japanese domestic market is big and nuanced; Japanese consumers are notoriously finicky and demanding.

On the face of things, it would all seem to add up to an entrepreneurial paradise, a playground of creativity and innovation. Japan spent $130 billion on research and development last year (more as a percentage of GDP than the United States or the EU, putting it in third place globally behind Sweden and Finland). It registers, far and away, more patents than any other country—even more than the United States, with more than twice the population.

So you’d think Japan would be confident about its technological future, but you’d be wrong. These days, big business, academia, think tanks, government and the media, as well as the average Japanese salaryman, are all brooding about the state of their economy in the digital era. The educational system is going down the tubes, it’s said, generating math and science scores that increasingly lag behind other OECD countries. The government is gridlocked, stalling urgently needed economic reform. Managers are mired in old mentalities, while imaginative newcomers can’t find the space or the capital to develop their ideas. It’s a syndrome that’s sometimes summed up in a single, angst-ridden question: how come we weren’t the ones who invented the iPod?