Innovation Japan

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Japan Business Strategy Forum 2006
Innovation Japan !
November 7, 2006
Hiroshi TSUKAMOTO President, Japan External
Trade Organization(JETRO)
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Messages from Japanese Government
New Prime Ministers Vision

• Commitment for Continued Reform
• Prosperity in good collaboration with Asian
  Countries
• (ex. China, South Korea)
• New Economic Growth through Innovation

SHINZO ABE (52)
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Why Japan?
- Worlds center for technological innovation and
product development -
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Japanese Government IT policy(e-Japan, u-Japan)
e-Japan strategy (2001 - 2005) Development of
IT Infrastructure(High Speed, Broadband) Expanded
internet connections (2005) ?DSL46.3 million
?FTTH35.9 million ?CATV33 million Reduced
broadband cost (DSL, Dollar per Mbps, 2005)
?Tokyo0.53 ?New York13.49 ?London5.91
?Paris2.39 ?Dusseldorf8.34 Growing mobile
market (Billion Dollar, 2005)?Mobile
contents(ringtone, game) 3.69 (39.0 Y-o-Y
growth) ?Mobile commerce(auction, ticket, stock,
bank) 2.85(57.1 Y-o-Y growth)
Source Ministry of Internal Affairs and
Communications
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Japanese Government IT policy(e-Japan, u-Japan)
e-Japan strategy (2001 - 2005) Emphasis on IT
usage 7 fields?Medical services ?Food
?Lifestyle ?SME financing ?Knowledge ?Employment
and labor ?Public services New ICT
infrastructure ?IT infrastructure for next
generation ?Secure and reliable IT environment
?RD for next generation knowledge ?Improvement
of IT literacy ?New international relationships
via IT
Source Ministry of Internal Affairs and
Communications
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Japanese Government IT policy(e-Japan, u-Japan)
u-Japan strategy (2004 - 2010) Objectives Ubiq
uitous network ?Seamless network from wired to
wirelessNGN,WLAN,FMC,RFID,ITS, GIS,
IA,PLC,WiMAX?Network collaboration
platformbilling and settlement,authentication,
encryption,GPS,DRM Advanced use of ICT
?Public servicese-government,e-municipality
?Medicalelectronic chart,medical ordering
?Employmenttelework,e-learning ?Logisticsfood
traceability ?Contentsdigital archive,on-line
game Secure and reliable environment to protect
privacy
Source Ministry of Internal Affairs and
Communications
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Japanese Government IT policy(e-Japan, u-Japan)
u-Japan strategy (2004 - 2010) Several ongoing
activities Current PSTN(Public Switched
Telephone Network) will be replaced to IP
network by 2008 to 2010. The number of FTTH
subscribers will become 30 million by 2010.
(FTTH Subscribers in 2005 5.46 million) 5-cent
IC tag(Hibiki project) is ready to be available
for marketability traceability and SCM
application.
Source Ministry of Internal Affairs and
Communications
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RD investment vs. GDP in leading nations
()
Japan 3.41 (156 Billion Dollar)
U.S. 2.61 (283 Billion Dollar)
Germany 2.51 (61 Billion Dollar)
France 2.16 (44 Billion Dollar)
UK 1.80 (38 Billion Dollar)
China 1.44 (24 Billion Dollar)
Source Ministry of Education, Culture, Sports,
Science and Technology
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Investment plans of major Japanese firms(FY06)
Source Nikkei newspaper article, May 26, 2006
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Innovative activities in Japan
Qualcomm, Inc Developing operating software and
an integrated platform for 3G and GPS services
with KDDI
(April 2002 , Mobile)
Sun Microsystems, Inc., Oracle Corporation Coopera
ting on advanced airport systems using RFID
technology at Narita Airport with ASTREC, ANA,
JAL, etc
(April 2004 2005, Logistics)
Cisco Systems, Inc. Developing next generation
router and high-end OS IOS XR for IP NGN with
Fujitsu
(December 2004 , Network)
Google, Inc. Installing search engine technology
for mobile internet services Ezweb with
KDDI(au).
(May 2006, Mobile)
Texas Instruments, Inc. Developing a
communication platform for mobile handsets for
the 3rd generation (3G/3.5G) and beyond with
NEC, NEC Electronics, Matsushita, and Panasonic
mobile.
(July 2006, Mobile)
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Why Japan?
- Access to new Asian markets -
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Growth in GDP share
2005
U.S 20.1
Other 30.9
EU 20.3
2000
U.S 21.4
Other 30.2
East Asia 28.7 (including Japan)
EU 22.5
1990
U.S 23.2
Other 28.2
EU 26.2
Note Figures based on PPP (Purchasing Power
Parity) valuation of country GDP Source IMF
World Economic Outlook Database (April, 2006)
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GDP share on Asian area (2005)
Asian NIEs
ASEAN4
Japan (4,571.3)
Total GDP In Asia100 (US billion) (9,679.6)
India (775.4)
China (2,224.8)
Japan
India
China
8.0 Source IMF World Economic Outlook Database
(April, 2006)
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Ease of doing business rankings
Source The World Bank Group Doing Business
2007
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New corporate law to stimulate business changes
(enacted in May 2006)
Liberalization of corporate establishment No
minimum capital requirement and more simplified
procedures. Stricter corporate governance with
expanded framework Reconstruct corporate
governance framework not only by introducing new
deregulations and the principle of autonomy, but
also by introducing stricter regulations as
required in areas of legal compliance. Streamlin
ed restructuring International triangular and
cash mergers to be possible from 2007. New
corporate entities Japanese version of
limited-liability corporation and more choices
for venture-business startups.
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JETROs FDI Promotion Activities
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Investing in Japan website
URL http//www.jetro.go.jp/en/invest/region/
5 key industries listed
Regional cluster information is shown by industry
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Business Partnership Events
US-Japan Investment Initiative Mission (Oct.
2-Oct.6 2006) Business partnering and seminar
tour for ICT companies -JETRO arranged seminars,
field trips, meetings and business match-making
in Sendai and Yokohama.
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CEATEC - (Oct. 3-Oct.5 2006) -JETRO held a
business match-making event for 40 companies from
13 countries with 90 Japanese companies.
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CES (Jan. 2007) -JETRO will hold a business
matching event. (http//www.jetro.org/content/381)
?
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Invest Japan Business Support Center (IBSC)
Locations Tokyo, Osaka, Yokohama, Nagoya,
Fukuoka, Kobe
Facilities
Consulting Services
? Marketing ? Laws and regulations ?
National and local government incentives
? Cost simulation ? Incorporation procedures
? Employment and labor issues
? Free temporary office spaces (Tokyo
IBSC has 32 spaces) ? Well-stocked library ?
Exhibition space and auditorium
Over 350 companies(124 US companies) have set up
a business in Japan with JETRO services
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Case Studies
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Thank you! Please visit our website www.jetro.or
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