To be fair, sometimes the "Japan is backwards" spiel is focused solely on their technology. And I don't think that one is wrong, even today. The keiretsus have continued to do a very poor job at innovating.
It's the same everywhere. We are now stuck in the world where the formula is of A or B.
Android vs Apple
Intel vs AMD
Sony vs Nintendo
Microsoft vs Linux
Firefox vs Chrome
For any technology that has a third party has a very little mindshare.
Not only does this make innovation hard. How? When only the same two contenders continue to dominate the market and have newr-infinite resources.
"let us buy you out, or we'll make our own"
tho how much is corporate shenanigans and how much is power law of company size, idk