Remarkable success of Japanese economy after WWII has been an intriguing topic for many researchers. In relation to the theory and previous research this study proposes a different explanatory model of Japanese growth after WWII. The model proposed here relies upon a contribution of two key features of the Japanese economy- subcontracting as a type of organizational form of conglomerates and industrial policy that represents government-business relations. This paper further explores when and in what direction this proposed model was transforming. This study will provide the reader with a different view on the Japanese model of economic growth. By analyzing the evolution of subcontracting and industrial policy after the WWII up to present times this study will demonstrate current trends in the model. It will also throw light on what actions Japan is taking to adjust to a volatile economic surrounding.