Final answer:
The complex Japanese language was the greatest hindrance to software innovations in Japan, as Western-designed keyboards and screens did not suit logogram-based languages, creating diffusion barriers.
Step-by-step explanation:
The greatest hindrance to the development of software innovations appropriate for world markets in Japan was C. The complex Japanese language. Keyboards and cell phone screens developed in the West were designed for alphabetic scripts and did not accommodate East Asian logogram-based languages well, creating significant barriers to the diffusion of technologies in East Asia. While other factors such as bureaucratic structures, economic issues, and infrastructure investments all played a part in Japan's development, the complex nature of the Japanese language presented unique challenges specifically for software adaptation and innovation.