But given that these Japanese engineers could make big $$$ in other parts of the world, how do you avoid major brain drain?
But I'm not at all convinced that most of them could make much more money outside Japan. I've almost always had to communicate with Japanese devs in Japanese, because few of them spoke much English. They tended to be kids who didn't do all that well in school, including English class, so they didn't go to prestigious universities, whose students tend to go into more respected professions.
Things might have changed since I lived there, but Japanese devs were not valued very highly in Japan and most would have a hard time being more valuable outside Japan.