Don’t know about cultural issues, but basically Japanese tech industry has been striking out on the big trends since the 00’s. They just kept making the wrong bets.
CD/DVD - clung onto physical media when MP3/MP4 was taking root. Basically devastated the entire Japanese CE industry built around it when combined with the below.
CRT/LCD/Plasma - Actually the leader in display tech until they made two huge miscalculations. Japanese companies continued to develop CRT for monitors, while Koreans went all in for small LCDs. Devastated the CRT market in basically 5 years. For large formats, went for Plasma and did not invest in OLED. Again Koreans ate their lunch, then Chinese delivered coup de grace by taking all low to upper mid market for LCD.
FOMA (3G) - Actually deployed one of the first 3G networks. Early 00’s had many articles about the “futuristic” Japanese cell phones which had apps and games etc. Japanese network operators were still confident they could hold up against the iPhone (they did not). Basically relegated NTT to network operator rather than telecom equipment provider.
EV/NiMH battery - again, Japan was the leader in Li-Ion initially, most laptops in the late 90’s used Japanese Li-Ion cells. However, Toyota didn’t think Li-Ion could be used safely in automotive applications (In fact they still use NiMH), and the entire Japanese industry followed. Elon Musk would prove this to be a bad bet. Toyota followed this up with investing in Hydrogen (and again convinced the government and the rest of the industry, which they basically own), which has been a failure. To be fair on the Hydrogen idea, I thought it was definitely the future in the mid 00’s. However, what changed was the mass adoption of smartphones which drove down the cost of Li-Ion cells and huge research put into increasing the energy density.