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How did the Meiji government encourage industrialization?

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Map showing the territorial expansion of the Japanese Empire from 1870 to 1942 across East and Southeast Asia and the Pacific. The map uses color codes to indicate the original Japanese territory in 1870, subsequent acquisitions, and the farthest extent of Japanese occupation and conquest by 1942, including parts of China, Korea, Manchuria, Southeast Asia, and numerous Pacific islands. An inset map displays the broader reach of Japanese control at its peak. — Empire of Japan The Empire of Japan, 1870–1942.

The Meiji government viewed industrialization as essential for achieving national strength and parity with Western powers. To encourage this development, the state implemented several strategic measures:12

Direct Investment and Pilot Programs: The government initially established pilot factories and experimental stations to jump-start industrial growth.1
Subsidies and Support: While military industries and strategic communications were state-run, the government fostered private sector growth through subsidies and administrative encouragement.1
Privatization: In the 1880s, to mitigate concerns over excessive inflation, the government sold many of its new plants to private investors who maintained close ties with officials.1
The Rise of Zaibatsu: This privatization process led to the emergence of the zaibatsu—large, influential business conglomerates like Mitsui and Mitsubishi—which came to dominate the Japanese economy.1
Economic Environment: Industrial efforts were further bolstered by the expansion of the rule of law, a growing domestic market, and favorable international trade conditions caused by instability in China.1