V I N N O VA R E P O R T VR 2005:04 INFORMATION AND COMMUNICATIONS TECHNOLOGY IN JAPAN A general overview on the current Japanese initiatives and trends in the area of ICT SHIGEYUKI NAITO & BOGUMIL HAUSMAN Title: Information and Communications Technology in Japan. A general overview on the current Japanese initiatives and trends in the area of ICT Author: Shigeyuki Naito and Bogumil Hausman - ITPS Series: VINNOVA Report VR 2005:04 ISBN: 91-85084-28-X ISSN: 1650-3104 Published: May 2005 Publisher: VINNOVA - Verket för Innovatonssystem / Swedish Agency for Innovation Systems VINNOVA Case No: 2004-00761 About VINNOVA VINNOVA, the Swedish Agency for Innovation Systems, integrates research and development in technology, transport, communication and working life. VINNOVA´s mission is to promote sustainable growth by developing effective innovation systems and funding problem-oriented research. Through its activities in this field, VINNOVA aims to make a significant contribution to Sweden´s development into a leading centre of economic growth. The VINNOVA Report series includes external publications and other reports from programmes and projects that have received funding from VINNOVA. The Swedish Institute for Growth Policy Studies (ITPS), is a Government Agency responsible for providing policy intelligence to strengthen growth policy in Sweden. ITPS primarily provides the Government Offices, Members of the Swedish Parliament, other state authorities and agencies with briefings based on statistical material, policy papers and key analyses. Business policy and regional development policy are areas given high priority. Changes in policy should be based on: · Statistic data and analyses of the structure and dynamics of industry – to obtain an up-to-date view of future challenges and opportunities. · Evaluation of results and effects of policy measures and programmes – to provide benchmarks and learn from measures implemented earlier. · Policy intelligence in order to look outwards and ahead – what issues are likely to come on the growth policy agenda in the future? These represent the principal missions of ITPS. I VINNOVAs publikationsserier redovisar bland andra forskare, utredare och analytiker sina projekt. Publiceringen innebär inte att VINNOVA tar ställning till framförda åsikter, slutsatser och resultat. Undantag är publikationsserien VINNOVA Policy som återger VINNOVAs synpunkter och ställningstaganden. VINNOVAs publikationer finns att beställa, läsa eller ladda ner via www.VINNOVA .se. Tryckta utgåvor av VINNOVA Analys, Forum och Rapport säljs via Fritzes Offentliga Publikationer, www.fritzes.se, tel 08-690 91 90, fax 08-690 91 91 eller [email protected] VINNOVA´s publications are published at www.VINNOVA .se Information and Communications Technology in Japan A general overview on the current Japanese initiatives and trends in the area of ICT by Shigeyuki Naito Bogumil Hausman Swedish Institute for Growth Policy Studies Science & Technology Office Tokyo, Japan January 2005 ICT IN JAPAN 2 ICT IN JAPAN Acknowledgments We would like to thank Kyoko Nakazato for providing the first chapter on general introduction to Japan and Naoko Sekiguchi for her help with gathering some of the data used in this report and converting them to graphs. Both are staff members of the Science & Technology Office in Tokyo. We have used some fragments from previously written ITPS reports produced at the Tokyo Office by Sabine Ehlers and Shigeyuki Naito [ICT 2003]. We would like to thank as well our colleges from VINNOVA: Jonas Bjarne and Torbjörn Fängström for valuable comments on a draft version of this report. 3 ICT IN JAPAN 4 ICT IN JAPAN Foreword This report is a result of a joint project between the Swedish Institute for Growth Policy Studies (ITPS) and VINNOVA's three growth areas in the area of information and communications technology (ICT): Micro- and nanoelectronics, Telecom systems and Software products. The aim of the project has been to identify, analyse and describe ICT relevant initiatives and trends in policy, research and business in the USA, Japan and China. The goal is to provide VINNOVA with a platform for making decisions concerning financing of needs-related research, development and demonstration of sustainable growth in the ICT area in Sweden. It is our hope that the report will provide constructive input for a wider audience with an interest in international development in ICT. Information and communications technology is defined in the report as technology (hardware, networks, systems, software) which facilitates the exchange of information between different people and machines. The focus of the report on ICT relevant trends and initiatives, however, covers not only initiatives which can be directly related to a specific area of technology (facilitative technology). It also covers initiatives in different needs- and marketing areas which have an impact on ICT development taken up in the report. The study covers initiatives and trends which can be perceived today or are expected to emerge within the next 5 years. The report is one of three review studies concerning developments in the area of information and communications technology: • Informations- och kommunikationsteknik i USA Martin Ahlgren, VINNOVA Rapport VR 2005:03 • Information and Communications Technology in Japan Shigeyuki Naito, Bogumil Hausman, VINNOVA Report VR 2005:04 • Information and Communications Technology in China Magnus Breidne, VINNOVA Report VR 2005:05 Stockholm in April 2005, Per Eriksson Director General VINNOVA 5 ICT IN JAPAN 6 ICT IN JAPAN Table of Content Foreword............................................................................................................................. 5 Summary............................................................................................................................. 9 1 Introduction to Japan.............................................................................................. 11 1.1 1.2 1.3 1.4 2 Introduction to ICT .................................................................................................. 13 2.1 2.2 2.3 3 Geography...................................................................................................................11 Economy......................................................................................................................11 Trade ...........................................................................................................................12 Society.........................................................................................................................12 Current Status of Networks .........................................................................................13 Japan as an International Competitive Power.............................................................18 Chapter Summary .......................................................................................................19 Politics...................................................................................................................... 21 3.1 National policy .............................................................................................................21 3.1.1 e-Japan Strategy ....................................................................................................21 3.1.2 e-Japan Strategy II .................................................................................................24 3.1.3 e-Japan Priority Policy Program - 2004..................................................................26 3.2 Chapter Summary .......................................................................................................31 4 Research and Development ................................................................................... 33 4.1 The Council for Science and Technology Policy and the Science and Technology Basic Plan (2001-2005) .............................................................................................................34 4.2 Ministry of Economy, Trade and Industry (METI)........................................................36 4.2.1 R&D Programs........................................................................................................37 4.2.2 New Industry Creation Strategy..............................................................................38 4.3 Information-technology Promotion Agency (IPA) ........................................................41 4.4 Ministry of Internal Affairs and Communications (MIC) ...............................................43 4.5 Ministry of Education, Culture, Sports, Science and Technology (MEXT) ..................45 4.6 ITS related R&D ..........................................................................................................45 4.7 Chapter Summary .......................................................................................................47 5 Industry .................................................................................................................... 49 5.1 5.2 5.2.1 5.2.2 5.3 5.4 5.5 6 Overview of the ICT related industry ...........................................................................49 ICT Market...................................................................................................................52 Telecommunications Business ...............................................................................52 Broadcasting Business ...........................................................................................53 Electronics industry .....................................................................................................53 Import and Export from/to Sweden..............................................................................54 Chapter Summary .......................................................................................................56 Conclusions on future trends ................................................................................ 57 6.1 Future trends ...............................................................................................................59 6.1.1 Hardware and Terminals ........................................................................................59 6.1.2 System Software and Computing ...........................................................................60 6.1.3 Networks.................................................................................................................61 6.1.4 Content, applications and services.........................................................................61 6.1.5 Business models.....................................................................................................62 6.1.6 Usage .....................................................................................................................62 6.1.7 Security...................................................................................................................63 6.1.8 Policies ...................................................................................................................64 7 Some suggestions for future Japan-Sweden ICT actions ................................... 65 Terminology ..................................................................................................................... 67 References........................................................................................................................ 69 Appendix I......................................................................................................................... 71 ICT Companies trading between Japan and Sweden ...............................................................71 7 ICT IN JAPAN 8 ICT IN JAPAN Summary The Japanese government (IT Strategic Headquarters) has succeeded with e-Japan Strategy to enhance ICT infrastructure in Japan by utilizing experts from industries and academia, by improving competition policy (especially within the broadband access network market), by allocating resources to ICT related, prioritized areas, and by promoting cooperation between different industries. However, the actual ICT usage was still low. Therefore, the government launched consecutive strategy and Priority Policy Programs to enhance the actual use of the existing infrastructure. At the same time evaluation of the policy implementation got high priority. Japan’s total expenditure on R&D (FY2002) was 16 675 billion yen, reaching 3.35% of GDP. About 70% was spent by industries, 20% by universities, and 10% by public institutions. 13.5% of total R&D expenditure was spent within the ICT area. Council for Science and Technology Policy lead by the Prime Minister launched the second-Term Science and Technology Basic Plan (2001-2005), which placed special priority on four fields: Life Sciences, Information and Telecommunications, Environmental Sciences, and Nanotechnology and Materials. As the result of the plan and the e-Japan Strategy, Japanese ministries launched many R&D programs and projects ranging from semiconductors and displays to grid computing, photonic networks, Intelligent Transport System and Ubiquitous Network. Japanese ICT industry structure is unique. Japan can produce a whole range of devices and components, from LSI and printed circuit boards, to finished products, such as PCs, mobile phones, telephone switches, and super computers. Ten largescale electronics manufacturers have played important role for the development of the ICT market in Japan. The market which was worth 116 trillion yen in 2002. In this report we present different technologies which are predicted to influence the ICT development in Japan in the coming years. The technologies include: • Hardware and Terminals • System Software and Computing • Networks • Usage, content, applications and services • Business models • Security issues The report suggests some future studies and areas which should be of interest to VINNOVA. The issues include: • Ubiquitous network/computing and human interface • Connected Home • Test beds and market of ultra-high speed networks and mobile networks • Robotics 9 ICT IN JAPAN 10 ICT IN JAPAN 1 Introduction to Japan 1.1 Geography Japan is an island nation lying off the east coast of Asia. It has the general shape of a crescent and extends 3,000 km from tip to tip. The country is made up of four main islands (Honshu, Shikoku, Kyushu and Hokkaido), which together with a little fewer than 7,000 smaller islands are collectively referred to as the Japanese Archipelago. The northern region featuring a sub arctic zone climate, the middle a temperate zone climate and the southern regions a subtropical zone climate. The islands of Japan are bounded by the Pacific Ocean on the east and the Japan Sea on the west. Japan’s land area is 378,000 km2, of which about the three quarters is mountainous. The main island has many mountains which are more than 3,000 meters high. As it is situated along the circum-Pacific volcanic belt, Japan has several volcanic regions from the far north to the far south. Japan has almost 1/10 of the world's approximately 840 active volcanoes, even though it has only about l/400 of the world's land area. Though volcanoes can cause great harm through large eruptions, they also contribute an incalculable tourist resource [NIPPON 2002, JA 2004]. 1.2 Economy The Japanese economy is the second largest market economy in the world. In 2003 it recorded a gross domestic product (GDP) of 501,498.8 billion yen (nominal), which is 0.8% increase from the previous year. Japan’s GDP per capita in 2003 was 3,929,000 yen (US$ 34,863) (1000 yen is about 70 Skr). The Japanese economy has gone through a number of stages since the end of the WWII. First, a recovery period during which Japan built its economy back up to the prewar level. Next, a high growth period which was driven by the heavy chemical industry, then after the two oil crises, a stable growth period driven by technology intensive industries. And in the 1990s, a prolonged recession triggered by the expansion and contraction of an economic bubble in the latter half of the 1980s. The unemployment rate, which has remained below 2% until the mid-1970s began to creep up and the average unemployment rate in 2003 was 5.3%. It is considered that the evidence of prolonged economic demise lies in Japan's 50year-old postwar economic system as well as in an increasing inability to respond flexibly to internal and external changes. Upon coming into power in April 2001, the Koizumi Cabinet has implemented policies covering regulatory reform, public company privatization (e.g. postal service privatization) and administrative reform. Economic revitalization is being promoted with policies to improve efficiency in areas such as labor allocation, fund allocation and research and development. Major changes are also taking place in the corporate world as companies strive to increase competitiveness by moving away from traditional employment practices such as lifetime employment and seniority-based wages [NIPPON 2004, JA 2004, CabOffice a]. 11 ICT IN JAPAN 1.3 Trade The current account surplus grew to a record-high 15.7853 trillion yen, an 11.6% increase over the previous year. Top export item is automobile, while top import item being crude oil as they had been the year earlier. This was the second consecutive year of growth in the surplus, with a main factor being an increase in exports to China and Asia. Additionally, there was a capital account surplus for the first time in the 34 years since 1969, with a figure recorded of 8.1320 trillion yen. This turnaround is the result of a rapid increase in investment in Japanese stocks, based on high expectations for the recovery of the Japanese economy. The trade balance also expanded for the second consecutive year. Although oil prices soared because of the war in Iraq and imports were at all-time high, exports to Asia, centering on mobile phone terminals and semi-conductors, also surged [Ministry FA]. 1.4 Society Japan’s total population stood at 127,619,000 in March 2004. Of them, approximately 19 % was 65 old or older, and by 2050 this figure is projected to be 35.7%. At the same time, the number of children that women have in their life (fertility rate) has been ever dropping and reached the level of 1.32 in 2002. This results in that the number of people aged 65 years old or older exceeds the number of people aged 14 years old or younger. The challenge that Japanese society faces is that the society is ageing more rapidly than any other industrial country has ever experienced. There is growing concern over the consequences that the aging society will have for the economy. To minimize the effects of the contraction of the working population, it will be necessary both to increase labor productivity and to promote the employment of women and people over 65. In addition, fundamental reforms will be necessary in pension and other social welfare systems in order to avoid large inequalities between generations with respect to the burdens born and benefits received [CabOffice b]. 12 ICT IN JAPAN 2 Introduction to ICT From the end of the 20th century to the beginning of the 21st century, we have seen a lot of digital technologies emerge, or, in other words, we have seen a general shift from analogue to digital technology. Since Japan is one of the leading technology developers in the world (many new technologies have been commercialized here), this applies in a very high extent to Japanese homes. This can be illustrated by PC vs. TV set, Mini Disk vs. Cassette tape, MP3 player vs. vinyl LP, digital camera vs. traditional chemical film camera, DVD player vs. VTR, and Internet vs. traditional sources of information like radio, TV and newspapers. This conversion to better and newer technology is a never stopping process. Currently there is an ongoing battle over a new DVD standard capable of recording/playing high-definition broadcasts which is expected to become the leading storage/reproduction medium for visual images over the next 20 years. One of the competing groups consists of Toshiba Corp. and NEC Corp. while the other group consists of 13 Japanese, U.S., European and South Korean firms, including Sony Corp. and Matsushita Electric Industrial Co. The Toshiba-NEC group is pushing for a standard called HD DVD, while the other group pushes for a standard known as the Blue-ray Disk. The two standards are not compatible and cannot be integrated. HD DVD is a standard that tries to utilize conventional DVD characteristics with much better quality, whether the Blue-ray Disk aims to create a new recording medium [NIKKEI a]. Another issue is the rapid development of the telecommunication technology. At the end of 2003, household penetration rate for mobile phones was 93.9 percent, of which 56.5 % were Internet compatible. The number of mobile phone subscribers exceeded the number of fixed phone subscribers. The household penetration rate for PC was 78.2 %, facsimile: 53.9 %, car navigation systems: 30.6 % [JTH 2004]. 2.1 Current Status of Networks Broadband digital networks are expanding rapidly in Japan (Japanese Ministry of Internal Affairs and Communications uses "Broadband" for the access means of DSL, cable TV, FTTH, and radio access; the actual speed can be said over 1.0 Mbps). The number of broadband subscribers approached 15 million at the end of 2003 fiscal year (Figure 2-1). Note the almost 50% increase in broadband subscribers from 2002 to 2003 (Figure 2-2). Japan has the third largest number of broadband subscribers in the world. Per capita, Japan is the ninth in the world (Figure 22, Figure 2-3) [MIC 2004], similar to Sweden. 13 ICT IN JAPAN Figure 2-1. Number of Broadband Subscribers. Note: DSL stands for Digital Subscriber Line, FTTH – FiberToTheHome. Source: Information and Communications in Japan, White Paper 2004, MIC. Figure 2-2. Internet Connection Methods for Home PCs. Source: Information and Communications in Japan, White Paper 2004, MIC. 14 ICT IN JAPAN Figure 2-3. International Comparison of Total Broadband Subscribers and Subscribers per 100 inhabitants (2002). Source: Information and Communications in Japan, White Paper 2004, MIC. Japan’s broadband services are the world’s least expensive and highest speed. A comparison of costs per 100 kbps is shown in Figure 2-4 [MIC 2004]. Figure 2-4. International Comparison of Broadband Fees (cost per 100 kbps; July 2003). Figures for Sweden are about the same as for United States. Source: Information and Communications in Japan, White Paper 2004, MIC. The number of third-generation mobile phone subscribers has grown rapidly to 16.69 million (of total 80 million of all mobile phone subscribers) in less than two 15 ICT IN JAPAN and a half years (since the start of services in October 2001) (Figure 2-5). The number of mobile phones with digital camera subscribers is 47.86 million, exceeding 60% of all mobile phones. Japan leads the world in mobile Internet access. Japan’s mobile Internet compatibility rate (89.5%) is the highest in the world (Figure 2-6). The mobile Internet compatibility rate is the percentage of mobile phone subscribers that include mobile phone Internet access [MIC 2004]. Figure 2-5. Number of 3G Mobile Phone Subscribers. Source: Information and Communications in Japan, White Paper 2004, MIC. 16 ICT IN JAPAN Figure 2-6. Penetration Rates of Mobile Internet in Major Countries and Territories (mobile Internet subscribers of all mobile phone subscribers) (Sept. 2003). Figures for Sweden are about the same as for Finland. Source: Information and Communications in Japan, White Paper 2004, MIC. As the consequence of the general development of broadband access technologies the number of IP telephones and Wireless Hot Spots are steadily increasing. IP telephony has been introduced by 7.3% of households and 11.1% of businesses and the number of hot spots has more than tripled in just one year (Figure 2-7) [MIC 2004]. 17 ICT IN JAPAN Figure 2-7. Change in number of Hot Spots (end of fiscal 2003). Source: Information and Communications in Japan, White Paper 2004, MIC. 2.2 Japan as an International Competitive Power Japan has a rather good world market share of home appliances and audio-visual equipment, although is not superior when it comes to PC and related equipment, nor mobile telephone terminals. For example, in 2002 the world market share of Liquid Crystal display TVs was 76.8 percent, Plasma display TV: 72.0%, Digital still picture camera: 65.5%, Plain paper copier: 74.4%, and Car navigation system: 64.7%. On the other hand, market share of Note PC were 26.5 percent, Desktop PC: 4.6%, DVD-ROM drive for PC: 49.5%, and CDMA mobile phone terminals 27.8%, other types of mobile phone terminals except CDMA: 21.2% [JH 2004, JTH 2004]. In the near future, digital home (and car) appliances will be equipped with advanced network functions, which will enable them to exchange data and information. This vision is often called Ubiquitous Networks, where everything communicates with everything. Since Japan has the world’s leading networked environment (see Chapter 2-1) the Japanese manufacturers have a unique advantage to develop, design, and test such new products directly in Japan. Therefore, both the government and related industries expect that emerging technologies, products and services for the ubiquitous network society would drive Japanese economic growth, and increase their international competitive power. A survey dealing with ICT technological edges among United States, Europe, Japan, and other Asian countries shows that [WP 2004, JH 2004] Japan is a leader technology developer of displays, mobile terminals, digital home appliances, sensors, and radio frequency identifications. At the same time Japan is lagging in technologies for middleware such as security and authentication, and contents/application development such as contents description language. On the other hand technologies for networks, such as Optical network and mobile network, are almost equivalent between Japan and United States. 18 ICT IN JAPAN Another related issue is that Japan (as shown in Fig. 2-8) is facing a growing industrial threat from neighboring Asian countries like China, Taiwan and South Korea [NIKKEI b]. Those countries, historically well known for much lower production costs, have recently become advanced also when it comes to new technology development. Figure 2-8. Global shares of major digital products between different companies (August 2004). Note: Companies without specified countries are based in Japan. 2.3 Chapter Summary Japan is the world leader when it comes to broadband digital networks access (DSL, cable Internet, wireless access, and FTTH) at home thanks to the dissemination of ADSL (nearly half of the Internet connection from home uses ADSL). Japan has the third largest number of broadband subscribers, and the lowest broadband fee (0.09 dollars per 100 kbps). For wireless networks, Japan is leading in the mobile Internet penetration (89.5 % of mobile phone users could access the Internet from their mobile phone), and 3G penetration (17 million of total 80 million of all mobile phone subscribers). 19 ICT IN JAPAN 20 ICT IN JAPAN 3 Politics 3.1 National policy The IT Strategic Headquarters for the Promotion of an Advanced Information and Telecommunications Network Society was established in January 2001, in order to promote measures for making Japan an advanced ICT society. The body is comprised of all the cabinet ministers as well as eight non-government experts such as Nobuyuki Idei, chairman of Sony Corp, and Dr. Jun Murai, Professor of Keio University, and is lead by Prime Minister Junichiro Koizumi [SHH]. 3.1.1 e-Japan Strategy In order to make Japan “the world's most advanced IT nation by 2005”, the IT Strategic HQ launched the e-Japan Strategy in January 2001, which focused on the development of infrastructure necessary for broadband and other advanced telecommunications services [e-Japan a]. Five Priority Policy Areas were decided: • Development of the World’s Most Advanced Information and Communication Network, aiming at the construction of ultra-high speed backbone network for all people to have constant access to the Internet at extremely low price, and also to promote the shift to the Internet with protocol IPv6. • Advancement of Human Resource Development, and the Promotion of Education and Learning, aiming to improve information literacy by making Internet access available at schools, and to foster IT instructors, technical experts, researchers, and digital content creators. • Promotion of e-commerce by deregulation and legislation for the new rules concerning electronic contracts and for the protection of consumers. • Promotion of the Digitization of the Administration and the Utilization of Information and Communications Technologies in Public Areas, aiming to realize e-government. • Ensuring of the Security and Reliability on Advanced Information and Communication Network, by promoting the protection of personal information, carrying out R&D on cryptography, and establishing emergency control system in organizations (this fifth priority policy area was added in eJapan Priority Policy Program in March 2001). Based on the e-Japan Strategy, two Priority Policy Programs were formulated to implement the above goals, and as a consequence a number of measures were carried out by ministries and agencies. With support from the government, the Japanese industry made efforts towards constructing an environment enabling “highspeed Internet used by 30 million households and ultra-high-speed Internet used by 10 million households”. The ambition has already been realized in a sense that the above access capability is already in place (but the actual number of subscribers is 21 ICT IN JAPAN much lower, see Figure 2-1). The construction of systemic infrastructure related to e-commerce and e-government has also made progress. Some achievements towards “Development of the World’s Most Advanced Information and Communication Network” are already mentioned in the Introduction to ICT chapter. The following figures are just some examples of the development in the policy areas [SHH, MIC 2004]. Figure 3-1. Advancement of Human Resource Development, and the Promotion of Education and Learning. Classrooms connected to the Internet in public schools 160 000 35% 140 000 Number 120 000 Achievement (%) 29,2% 25% 21,1% 100 000 30% 134 738 20% 80 000 60 000 15% 89 945 8,3% 10% 40 000 20 000 5% 36 834 0 0% Mar. 2001 Mar. 2002 Mar. 2003 Source : IT Strategic Headquarters Figure 3-2. Promotion of e-commerce. Scale of Business to Consumer Electronic Commerce Market. Source: Information and Communications in Japan, White Paper 2004, MIC. 22 ICT IN JAPAN Figure 3-3. Promotion of e-commerce. Scale of Business to Business Electronic Commerce Market. Source: Information and Communications in Japan, White Paper 2004, MIC. Figure 3-4. Promotion of the Digitization of the Administration and the Utilization of Information and Communications Technologies in Public Areas On-line electronic application, notification and other procedures 14 000 100% 96,1% 12 000 10 000 Number 90% 80% Achievement (%) 13 317 70% 60% 8 000 50% 44,5% 6 000 4 000 40% 30% 6 047 2 000 124 0,9% 133 1,0% 20% 612 4,5% 10% 0% 0 Mar. 2001 Oct. 2001 Sept. 2002 Jun. 2003 Mar. 2004 Source : IT Strategic Headquarters 23 ICT IN JAPAN Figure 3-5. Ensuring of the Security and Reliability of Advanced Information and Communication Network. Formulation of security policy at local authorities 1 200 90,0% Number Achievement (Prefecture) (%) Achievement (City) (%) 1 000 800 80,9% 80,0% 985 60,0% 703 50,0% 46,8% 600 70,0% 40,0% 400 270 200 29,2% 21,0% 30,0% 20,0% 12,8% 8,1% 10,0% 0,0% 0 Apr. 2001 Apr. 2002 Apr. 2003 Source : IT Strategic Headquarters 3.1.2 e-Japan Strategy II After the first phase of the IT strategy had been achieved at the beginning of 2003, the IT Strategic HQ evolved the strategy into the second phase of the expansion of ICT use and in July 2003 formulated the e-Japan Strategy II. The new strategy takes up seven areas for leading efforts [e-Japan b] to realize an “energetic, worryfree, exciting and more convenient” society: • Medical Services • Food • Lifestyle • Small and Medium Enterprises Financing • Knowledge • Employment and Labor • Public Service Progress in those seven areas should be done by effective utilization of IT. The process to be driven by private sector supported by the government. Each area got a detailed implementation plan: objectives, policies, possible problems/solutions, and key evaluation points. Based on the new strategy, a new priority program was decided, and a number of measures were carried out (see Table 3-1). 24 ICT IN JAPAN e-Japan Strategy II acceleration Package As the next step, in February 2004, the e-Japan Strategy II acceleration Package was adopted in order to accelerate implementation of the e-Japan Strategy II, and to achieve the goal of turning Japan into the most advanced IT nation in the world by 2005. The e-Japan Strategy II acceleration Package included the following blocks of issues [e-Japan c]: A. (Asia - International IT Strategies in Asia) Form the common IT base in Asia, such as an e-Passport scheme, and construct secure and low-cost network infrastructure. B. (Block and Back-up - Security: Reinforcement of Security Measures) An IT Security Expert Meeting was set up, and a private-sector expert was appointed as IT Security Advisor. Other IT security measures for the central government, local government and also private sector are to be taken. In order to ensure public safety and security, new schemes such as ePassport or ID card will be considered. C. (Content - Promotion of Content Measures) Promote reuse of existing contents assets as part of broadband services. Investigate the status of the Internet as a means of content distribution. Reinforce the content production foundations. Expand the Japanese version of the Bayh-Dole system (a system that allows ownership of intellectual property rights that are the result of research and development conducted under commission from the national or other government to be assigned to the party concerning the research). Establish digital archives of government contents, and expand its general use. D. (Deregulation - Promotion of IT Regulatory Reforms) e-Document Initiative: a uniform law (e-Document law) is to be adopted in order for the public to be able to store documents and records as they are required to retain by law in electronic format. Promote the use of IT in medical fields including electronic storage of medical information. Push for regulatory reforms necessary to coordinate real-world systems with cyberspace systems. E. (Evaluation) Reflect on the evaluation results by the Expert Committee on IT Strategy Evaluation to the e-Japan Priority Policy Program-2004. The committee evaluated the status of measures taken by the government under the e-Japan Strategy and e-Japan Strategy II. The committee will establish the cycle of “Plan-Do-Check-Action” within the e-Japan Strategy. 25 ICT IN JAPAN The committee will continue evaluation of the status of implementation of the e-Japan Strategy and e-Japan Strategy II, and will take necessary measures based on the evaluation results. F. (Friendly e-Government and e-Local Government - Promotion of eGovernment and e-Local Government) Promote telecommuting (teleworking) by national government employees. Realize one-stop service for import/export and harbor procedures. Expand government procurement to include more startup companies with advanced skills in the IT field, in order to nurture such companies. Promote measures for creating e-local government. 3.1.3 e-Japan Priority Policy Program - 2004 Based on the policy strategies the e-Japan Priority Policy Program - 2004 was formulated in June 2004 to incorporate priority policies and structural development to achieve its objectives for 2005 [e-Japan d]. The program covers also the direction to be taken for 2006 and thereafter. The program contains the following two Priority Policy Programs: • Last Program - the name Last is used to indicate that this is the last priority policy program to ensure the achievement of the 2005 goals. • Pre-program – a priority policy program to serve as initial step towards future goals in 2006 and beyond. In more details: • Last Program Promote the further acceleration of e-Japan Strategy II through the development and materialization of policies contained in the e-Japan Strategy II Acceleration Package. Further Promote effective IT utilization by focusing on the expansion of the Seven Leading Area policies contained in the e-Japan Strategy II. • Pre-program Sow seeds of Japan’s future IT society by introducing policies that will help pave the way for Japan to continuing on its path as a highly technologically advanced IT nation from 2006 and onward. Middle and long term policies, which would serve as the seeds to sow future development and growth, are to be given priority. The following Five Priority Policy Areas are designated to be given priority as base for future measures (see Table 3-1 and Table 3-2): • Development of the world’s most advanced information and communication network 26 ICT IN JAPAN • Advancement of human resource development, and the promotion of education and learning • Promotion of e-commerce • Promotion of the digitalization of the administration and the utilization of information and communications technologies in public areas • Ensuring of the security and reliability of advanced information and communication networks By allocating resources into policies within the above five areas, the Japanese government aims to promote new values and industrial creativity suitable for the 21st century. At the same time, the government aims to develop an environment where more people are connected (utilizing a whole range of devices) to worry-free and user-friendly high-speed networks, in order to use new services and access various types of content. In addition to the above mentioned five priority policy areas, some more general cross-cutting issues were defined: • promotion of R&D (Table 3-3) • development of new IT-centered international relationships • bridging of the digital divide • addressing issues caused by changes in the socioeconomic system A common ground for all the measures is the notion that the “the private sector has a leading role to play with government support”. This requires reviewing of governmental regulations to promote free and fair competition. While maintaining safety and reliability, the government must ceaselessly re-examine future competition policies to create an appropriate market environment. In addition, it must be assured that the private sector can benefit from the future economic gains. The government needs to actively implement actions concerning the objectives which would not be necessarily realized by private sector-initiatives alone [eJapan d]: • the realization of e-government • the improvement of a safe and secure IT utilization environment (assuring information security) • the bridging of the digital divide • the promotion of R&D for basic technologies • the promotion of international cooperation 27 ICT IN JAPAN Table 3-1. Number of measures in different priority areas. Source: e-Japan Priority Policy Program – 2004 by IT Strategic Headquarters. 28 ICT IN JAPAN Table 3-2. Budget for forming an advanced information and telecommunications network society (in million yen). FY 2002 228 932 FY 2003 221 966 96 462 112 514 Promotion of e-Commerce Promotion of e-Government 8 699 953 978 6 704 575 571 Promotion of the digitalization of the Administration and the Utilization of Information and Communications Technologies in Public Areas Reinforcement of Security Measures International Cooperation and Contribution Promotion of R&D Others Total 424 995 328 615 22 275 2 981 123 552 92 576 1 954 448 26 389 2 927 198 991 61 774 1 535 452 Development of the World's Most Advanced Information and Communication Network Advancement of Human Resource Development, and the Promotion of Education and Learning Source: IT Strategic Headquarters Table 3-3 Measures listed under promotion of R&D in the Priority Policy Program 2004. 1. Strengthen Japan's world leading technology fields and advanced basic technologies Ministry Target 1) 4G: R&D for realizing fourth generation mobile communication system MIC by 2010 2) R&D for ultra-high speed wireless LAN MIC in 2010 3) Development of technologies to enable the effective utilization of frequencies in terms of time and space MIC in 2011 4-1) Development of optic recording technology with 1 Tbit/square inch-level high density METI in FY 2006 4-2) R&D on the technology for photonic networks MIC in 2010 5-1) Development concerning device technology for wireless appliances MEXT/METI in FY 2006 5-2) R&D on the key device technology for photonic networks MEXT/METI in FY 2006 5-3) Development of device technology utilizing new principals and new technologies MEXT/METI in FY 2006 5-4) Development of next generation semiconductor device technology METI/MEXT in 2007 6-1) Integrated R&D concerning the usage of IPv6 into information appliances MIC by FY 2005 6-2) Implementation of demonstration experiments for the dissemination of information appliances METI by 2005 29 ICT IN JAPAN 7) R&D for IT technologies to realize network robots MIC in 2008 8-1) R&D for IT technologies to realize network robots MIC in 2008 8-2) R&D for technologies which accelerate transmission speeds and provide more functions for largescaled networks MIC in 2008 2. Technologies that would be more important, in order to realize “an energetic, worry free, exciting and more convenient society Ministry Target 1-1) Development of grid middleware for the provision of higher reliability and quality METI in FY 2005 1-2) Development of the basic software which will contribute to the formation of an ultra-high speed computer network (Grid computer) MEXT in 2007 1-3) Development of embedded software developing methods which will be necessary for next generation information appliances METI in 2005 1-4) Drastic strengthening of software development capabilities in cooperation with industry and academia METI in 2006 1-5) Enhancing next generation software development capabilities METI in FY 2006 1-6) Development of open source software METI in FY 2006 1-7) Development of basic software to create highly reliable software MEXT in FY 2007 1-8) R&D on the software technology utilized for higher solution 3D images MEXT in FY 2008 3-1) R&D on human interface technologies MIC in FY 2005 3-2) Development of next generation displays (largesize flat panel displays, such as, LCD, Plasma display, foldable organic electroluminescence display) METI in FY 2006 2) R&D on Information security 3. Application technologies that provide environment to enjoy new services and values at anytime Ministry Target 1) R&D on electronic tags (RF-ID) MIC/METI in FY 2007 2) Formulation of guidelines for the safe utilization of electronic tags MIC/METI in FY 2004 3) Promotion of R&D concerning the digitalization of broadcasting MIC by FY 2005 4) R&D to realize the practical utilization of the ubiquitous network MIC in 2007 Source: Priority Policy Program 2004 Note: MIC - Ministry of Internal Affairs and Communications; METI - Ministry of Economy, Trade and Industry; MEXT - Ministry of Education, Sports, Culture, Science and Technology 30 ICT IN JAPAN 3.2 Chapter Summary e-Japan strategy was defined in 2001, aiming to make Japan the world’s most advanced IT nation by 2005. Goals considering information and communication infrastructure have been achieved resulting in steady growth of number of broadband subscribers, number of Internet connected classrooms, growth of e-commerce market, and e-government readiness. However, the actual ICT usage was still low. Therefore, the government launched consecutive strategy and Priority Policy Programs to enhance the actual use of the existing infrastructure. Some key issues were development of application areas like medical services and food along with a general promotion of R&D. The ambition was to develop the world’s most advanced information and communication network. At the same time evaluation of the policy implementation got high priority. 31 ICT IN JAPAN 32 ICT IN JAPAN 4 Research and Development Japan’s total expenditure on Research and Development (R&D) during fiscal year (FY) 2002 was 16 675 billion yen, an increase of 0.9 percent from the previous year and has been increasing for three consecutive years. The ratio of R&D spending to GDP was 3.35%, an increase of 0.05 point over the previous year, and its rate is the higher than the past years. The breakdown by institutions shows that industries spent most in Japan (69.4% in FY2002), universities in the second place (19.7%), and then NPO/public institutions (10.9%) [MIC 2003]. Figure 4-1. R&D expenditure by institutions (in billion yen). R&D expenditure by Institutions (unit: billion yen) 11 577 FY2002 FY2001 3 282 69,4% 19,7% 10,9% 11 451 3 233 1 843 69,3% 19,6% 11,2% 10 862 FY2000 3 028 66,7% 0% 1 816 20% 19,7% 40% 60% 80% 2 220 13,6% 100% Industries Universities NPO/Public institutions Source : Report on the Survey of Research and Development 2003, MIC The breakdown by research areas (Figure 4-2) shows that the R&D expenditure (total for industries, universities, and public institutions) was spent mostly in the ICT area in FY2002 (13,5%) with life sciences as a close second area (12,4%) [MIC 2003]. Note also the rising expenditure in material/nanotechnology starting from almost nothing in 2000 to 2,4% in 2002. During this time the expenditure on energy R&D has decreased by 1,3%. 33 ICT IN JAPAN Figure 4-2. R&D expenditure by areas (in billion SEK). R&D expenditure by areas (unit: billion SEK) Material 23(1.9%) FY2002 Life science 148 (12.4%) ICT 161 (13.5%) Ocean development 7(0.6%) Energy 57 (4.8%) Environment, 49(4.1%) Other (60.6%) Nanotechnology 6 (0.5%) Space development 19 (1.6%) Material 20(1.7%) Ocean development 7(0.6%) Life science 141(11.9%) FY2001 ICT 161(13.6%) Environment 49 (4.1%) Energy 55 (4.6%) Other (61.5%) Nanotechnology 5( 0.5%) Space development 18(1.5%) Ocean development 9(0.7%) FY2000 Life science 127(10.9%) ICT 125(10.8%) Environment Energy 70 (6.1%) 38(3.3%) Other (66.4%) Space development 21(1.8%) 0% 10% 20% 30% 100% Source : Report on the Survey of Research and Development 2003, MIC In Japan there are many public and private bodies supporting Research and Development within the ICT area. The following subchapters are going to summarize the most important actors. 4.1 The Council for Science and Technology Policy and the Science and Technology Basic Plan (2001-2005) The Council for Science and Technology Policy (CSTP) was established as part of the government administrative reform in January 2001, to support the prime minister and the cabinet with the S&T expertise. It aims to plan basic and comprehensive science and technology policies, and to carry out comprehensive coordination among ministries and agencies, assuming a more general, global Japanese perspective. The council is lead by the prime minister, and its members are scientists, industry leaders and ministers of related ministries. The council has a secretariat consisting of about 100 people from the government, industry and academia. The mission of the council has been described in the third chapter of the SecondTerm Science and Technology Basic Plan (2001-2005) (approved by the cabinet in March 2001) [ST 2005]. It aims at eliminating the administrative sectionalism to implement policies described in the basic plan. The council is to cooperate with the Council on Economy and Fiscal Policy and the Strategic Headquarters for the Promotion of an Advanced Information and Telecommunications Network Society (IT Strategic Headquarters). Also, the council is to formulate promotion strategies for prioritized areas, principles for resource allocation and guidelines for project evaluation. At the same time the council should promote high quality science and technology activities to contribute to the development of the world as a whole. 34 ICT IN JAPAN The Second-Term Science and Technology Basic Plan (2001-2005) placed special priority on the following four fields of science and technology [ST 2005]: • Life Sciences • Information and Telecommunications • Environmental Sciences • Nanotechnology and Materials The goal is to achieve sustainable economic development in Japan and to guarantee safe and peaceful life for the Japanese people. To achieve this it is necessary to make active and strategic investments in selective areas of science and technology and to maintain and develop competitiveness of the Japanese industry. When it comes to the ICT area, the Science and Technology Basic Plan (20012005) claimed that R&D was important for formation and expansion of knowledgebased industries like ICT and high-tech industries, as well as for enhancing innovations in existing industries such as improvement of manufacturing technologies. While pushing for electronic commerce, electronic governance, home affairs, remote medical treatments, and distance-education/learning programs, such development also has a great impact on socio-economic activities in Japan at all levels, from everyday life to industrial production. Advances in the ICT area have become an important factor to promote safe and comfortable life of the Japanese people. It is important to promote R&D which introduces technologies necessary to realize an advanced ICT network society: a society, where people can use their capabilities to the maximum in a creative way through freely sending, receiving, and sharing information. The focus will be especially put on the following: • advanced network technology that enables all network activities to be performed safely, at any time, at any place, and without stress • high performance computing technology that enables rapid analysis, process, storage, and search of a tremendous amounts of distributed information • human interface technology that allows everyone to enjoy the benefits of an ICT society, not only individuals mastering complicated technical equipment • device technology and software technology to support the foregoing topics In order to promote the ICT related R&D, Japan will put emphasis on fundamental and leading R&D fields that are strategically important and market related, and will promote variety of those fields to speed the process of technological innovation. To achieve this, the emphasis will be put on innovative individual researchers trained by experts from private sector. 35 ICT IN JAPAN Other means are: • to promote institutional improvements • to ensure privacy and security of network activities • to provide test beds for developing technology • to work for international standardization • to foster education/learning for ICT literacy • to have readiness for handling disasters related to computer errors/service interruptions and social worries caused by illegal use of network • to bridge the digital divide Due to some market-related and policy reasons, through the recent years different S&T areas got different priorities. To glimpse at the transition of the S&T-related expenditure over time see Figure 4-3 [CSTP 2003]. Note the difference between Figure 4-3 and Figure 4-2 indicating different R&D priorities done by industry compared to universities. Figure 4-3. Transition of the S&T-Related Expenditure of 8 Areas (the government R&D budget excluding universities). The horizontal scale is in billion yen. Nanotechnology 2003 2002 Life science IT 175.3 406.8 (20.1%) (8.7%) M anufacturing technology and materials Environm ent 108.8 90.4 Energy 666.3 (5.4%) (4.5%) (33.0%) Energy 705.0 Life science IT175.8 100.6 85.6 393.4 (19.4%) (8.7%) (5.0%)(4.2%) (34.8%) Social 328.1 (16.2%) Frontier infrastructure Atomic-energy 301.9 (14.9%) 250.3 (12.4%) 20.0(1.0%) Social Atomic-energy infrastructure 255.4 (12.6%) 338.3(16.7%) Frontier 295.3 (14.6%) 16.4(0.8%) Life science 2001 390.7 (19.5%) IT166.3 84.7 80.4 (8.3%) (4.2%)(4.0%) Energy 685.6 (34.2%) Social Atomic-energy 370.9(18.5%) infrastructure 266.0 (13.3%) Frontier 306.2 (15.3%) 23.2(1.2%) 0 200 400 600 800 1000 1200 1400 1600 1800 2000 (billion yen) Source: CSTP “State of S&T policies based on the 2nd S&T Basic Plan in FY2002”, May 27, 2003. 4.2 Ministry of Economy, Trade and Industry (METI) The Ministry of Economy, Trade and Industry (METI) has been conducting R&D programs in cooperation with the New Energy and Industrial Technology Devel- 36 2200 ICT IN JAPAN opment Organization (NEDO) and Information-technology Promotion Agency (IPA), in fields where private companies cannot develop the required technology due to the following reasons: • the technology is so premature that no one yet can recognize how to turn it into business • a new system is needed to enable researchers to cooperate beyond existing organizations as the technology is interdisciplinary, taking account of technological potentiality in Japan like mobile, optical communication and device technologies As mentioned, METI enforces its ICT R&D budget both directly and through semigovernmental organizations, such as NEDO and IPA. ICT R&D projects especially for social infrastructure, such as new router development, information security and authentication technologies are carried out directly by METI officials (from planning a project, through public offering for the project implementation to postproject evaluation). There are some exceptions: hardware R&D is carried out through NEDO while Software R&D through IPA. Table 4-1 shows that METI’s budget spent on software technology increased more than 100% from 2002 to 2003/4. Notice as well large increase in hardware related R&D. Table 4-1. METI ICT R&D budget (in billion yen). FY2002 FY2003 FY2004 Hardware 16.31 21.13 21.01 Software 2.30 5.70 5.06 Source: Information Policy Division of METI. 4.2.1 R&D Programs The following R&D programs are currently financed by METI: Program for Development of Information and Communications Fundamental Technologies • Development of high-speed, high-function and high-reliability broadband network systems Develop fundamental technologies which would be necessary for next generation broadband networks that realize a high level of speed, functionality and reliability. • Development of high-speed and high-function wireless network systems Develop fundamental technologies which would be necessary for using new frequency bands for telecommunication equipment. Improve the processing speed of portable information appliances in order to cope with the expected 37 ICT IN JAPAN considerable increase in data being exchanged on wireless networks in the future. • Development of information and communication technologies using new technologies Develop information and communication technologies using new principles and technologies as an advance investment in novel technologies that can bring about next-generation breakthroughs. Program for Next-generation Semiconductor Fundamental Technology Development Develop fundamental process technologies for advanced semiconductor devices to realize next-generation large-scale integrated circuits (LSIs) that satisfy the requirements for more functions and lower power consumption in information and communication devices. Program for Development of Software Platforms • Developing software with a high level of reliability and safety, and software that can easily connect various digital home appliances to enable various services and functions. • Building infrastructure for the creation of information systems with open software with a high level of reliability and safety. • Developing revolutionary new software solutions, along with necessary human resource development. Program for Development of Next-generation Display Technology Along with the proliferation of broadband networks where images and video can be easily exchanged, the demand for next-generation display devices for home use is expected to grow rapidly. In order to allow more people to enjoy the benefits of broadband connections, fundamental technologies for highperformance flat-panel and high-resolution display devices are to be developed under this program. 4.2.2 New Industry Creation Strategy The Ministry of Economy, Trade and Industry announced its new industry creation strategy in May 2004. The vision is that recovery of the Japanese economy and its sustainable growth needs a dynamic reform of Japan’s industrial structure, by reviving its strong manufacturing base and developing service industries. The report stresses importance of policies encouraging not only capital investment but also investment in human resources and intellectual property. Part of the strategy is to coordinate cutting-edge technologies, such as nanotechnology, ICT, and biotechnology, with traditional Japanese technologies, techniques, and craftsmanship. 38 ICT IN JAPAN The strategy chose the following seven promising industry areas (the first four have cutting-edge character; the other three are to meet expanding market needs): • Fuel Cells o Expected large markets for use in automobiles and in homes o Base for friendly environmental policy o Challenges in durability and cost for commercialization • Digital Consumer Electronics o Integration of industry where Japan is already one of the world’s leaders o Creation of advanced technologies and increase of market shares o Challenges in vertical coordination, technical development, human resources and intellectual property protection • Robots o Application area is to assist or replace people working within nursing care, disaster relief, security and other operations with hard environmental conditions o Japan is already one of the world’s leaders when it comes to robotics o Challenges in market creation, technical development and regulations • Digital Content o Expected significant growth based on rapid development of digital consumer electronics o Expansion of Japan’s contents industry has positive influence on the future global culture o Challenges in distribution, human resources and fund procurement • Health and Welfare Devices and Services o Establishment of a healthy long-lived society o Social participation of the elderly o Welfare with minimal financial burden o International expansion of health industry o Challenges in regulatory reforms, ICT and bio-technology • Environment and Energy Devices and Services o Recovery of clean water, air and soil 39 ICT IN JAPAN o Development of devices and services with advanced environmental and energy technology o Challenges in regulations, technical development and information disclosure • Business Support Services o Separation and outsourcing of non-core operations due to business globalization o Expansion of new services utilizing ICT o Creation of new employment o Challenges in human resource development, quality and productivity To choose the above seven areas, the following criteria were used: • Have significant importance that supports the Japan’s economic growth in the future • Have strong domestic need that will contribute to the demand-led growth of the economy • Have a broad base, from law materials to final products, from medium-and small-sized enterprises to large corporations, and from large urban cities to regions • Areas where the market mechanism alone cannot endure the development, a comprehensive policy package is necessary with joint efforts by public and private sectors Table 4-2 shows the estimated growth of the market size in each area according to a survey by METI [Nakagawa 2004]. . Table 4-2. Market size by METI’s estimation (in billion yen). Current 2010 Fuel Cells n/a 1 Digital Consumer Electronics 54 96 Robots 0.5 1.8 Contents 11 15 Health and Welfare 56 75 Environment and Energy 52 78 Business support 76 107 Source: METI. 40 ICT IN JAPAN 4.3 Information-technology Promotion Agency (IPA) As mentioned in the previous chapter, IPA is financed by METI, and the objective of IPA is to promote the development of information technology by: • supporting development and greater use of innovative software • ensuring IT security and reliability • assisting the business development of information service providers • developing IT skills and knowledge • conducting Information Technology Engineers Examination IPA set down “Creativity”, “Competitiveness”, and “Security” as the three main pillars of its Mid-Term Plan that is being implemented until March 2008. IPA will assist the development of software which promotes the popular use of information technology. IPA, as a full supporter of small-scale businesses (the foundation of Japan’s industry), will encourage software development by small and medium sized IT start-ups, and will extend financial, technical and managerial support for IT investment in small-scale businesses. The followings are some of the IPA software development activities: Software development to promote the utilization of IT The project is targeted at developing advanced software to promote the utilization of IT in the leading fields described in the e-Japan Strategy II, such as: medical services, food, living amenity, financing of small and medium enterprises, knowledge, employment and labor, public service and e-commerce support/network security & reliability. This project aims at assisting marketoriented software development projects that are innovative and have high value-added character. The scheme provides support for commercialization and market development. Infrastructure for Open-Source Software (OSS) IPA is to build an infrastructure for the secure utilization of open-source software by helping upgrade the utilization and the development environments. Open-source software is expected to be highly effective in improving the quality of technology, re-utilizing the results, and ensuring reliability and security because the code is extensively checked by many highly skilled software experts. On the other hand, the infrastructure for using open-source software has not been fully established. For example, open-source software has weaknesses in support, development environment and user interfaces, and does not have many corresponding applications or middleware products. The establishment of the Japan OSS Promotion Forum was announced at the Japan-China-Korea Open-Source Business Conference held on November 14, 2003. The forum is held regularly, once or twice a year. The Ministry of Economy, Trade and Industry announced its support for usage of OSS by private companies and other institutions. IPA will serve as the secretariat for the forum. 41 ICT IN JAPAN Next-generation software development The project aims at developing innovative software intended for practical use within three to five years. IPA will invite project proposals, within the priority area guidelines, for next-generation software development which may be too risky to be undertaken by private funds alone. IPA’s designated project manager (PM) will select outstanding proposals through a screening process and the selected projects will be provided guidance, advice, project management and funding. Upon delivery of the developed software, the PM will test and evaluate the software and if required, will provide advice to make it ready for practical use. In principle, the intellectual property rights to the developed software will belong to the developers. IT SME Venture Support Project In the current severe economic environment many small and medium-sized IT enterprises (SMEs), despite having excellent technologies, are having difficulty commercializing them because of lack of funds and experience. The aim of this project is to assist such SMEs in developing and commercializing software that meets market trends and demands. IPA will assign project managers (PMs) who will provide relevant SMEs with advice, guidance and project management for processes ranging from development to commercialization. IPA will also provide part of the resources required to develop and commercialize the software. Again, in principle, the intellectual property rights to the functionally enhanced software products will belong to the developers. Matching Fund Type Software development and promotion This project aims at vitalizing the Japanese economy by developing and marketing software that is beneficial to businesses and individuals. Within the framework of the specific development areas set by IPA, the software will be jointly developed and marketed by the developers and IPA. For each project, IPA assigns a project manager with full expertise and experience in the related technology, marketing, and project management. Using the matching fund method where development and promotion expenses are shared, the developer and IPA share software development and marketing costs (on a 50-50 basis). Furthermore, revenues resulting from the developed software will be distributed between the developer and IPA. Business GRID Computing Development Project Grid computing is a form of distributed computing that involves coordinating and sharing computing, application, data, storage, or network resources across dynamic and geographically dispersed organizations. This is a project to be carried out jointly by IPA and METI. It aims at making GRID computing a reality in business fields that require a high degree of secu- 42 ICT IN JAPAN rity and reliability. The project goes on during a three-year period that began in 2003. IPA will make efforts to carry out research and development of the required software (including middleware) and to establish system development interfaces as international standards. 4.4 Ministry of Internal Affairs and Communications (MIC) The Ministry of Internal Affairs and Communications (MIC) has recently changed name from Ministry of Public Management, Home Affairs, Posts and Telecommunications (MPHPT). The following are some of the MIC-supported R&D activities: R&D on basic technologies for ubiquitous networks Ubiquitous networks allow all users to access and exchange information of any kind freely at any time, from anywhere, and from any appliance through the use of broadband and mobile access as well as intelligent home appliances and RFID tags that can access networks. The ubiquitous network society is expected to be realized through the combination of Japan’s technologies related to optical communications, mobile and intelligent home appliances which are highly reputed around the world. In order to realize this ubiquitous network society, MIC is promoting efforts towards the construction of R&D networks that might be used as test beds. The following R&D areas are prioritized: • Photonic network technology • Control and management technology • Ultra-high-function network technology utilizing nanotechnology • Quantum information and communications technology to realize cryptographic communications • Diverse network connection technology • Ultra-small chip networking technology • Ultra-high-speed certification technology The R&D test-bed networks promote the upgrading of network technology and the development and demonstration of new service applications. They will also play an important role in realizing the practical shift to the Ubiquitous Network society. An example is the Japan Gigabit Network (JGN), which was operated from fiscal year 1999 to fiscal year 2003. It was used by a total of 650 organizations and more than 2,000 researchers and provided tremendous results. The JGN II, a new R&D test-bed network (20 Gbps max., the follow up to JGN) began operation in April 2004. 43 ICT IN JAPAN Technology for the realization of a ubiquitous network society RFID (Radio Frequency Identification) tags have features that do not exist in bar codes. For example, by using radio waves, it is possible to read information contained in RFID tags from distant places and to read information from multiple RFID tags all at once. In addition, it is expected that RFID tags will become a basic tool connecting people and goods with networks in the ubiquitous network society. The RFID tags, being light, small and cheap, are perfect to be embedded in all kinds of physical objects. Since fiscal year 2004, MIC has been supporting projects working on the technologies for exchanging the attributive information in RFID tags between different platforms to link RFID tags with networks and to control access rights to the RFID tag based information. The vision is that by connecting ubiquitous networks with the personal robots and industrial robots that are expected to be used in homes and offices in the near future (network robots), some social problems related to aging and medical treatment and care can be solved. In a five-year plan starting from fiscal year 2004, MIC has been supporting R&D on such issues as “people-friendly communication technology” and “network robot linkage technology.” In fiscal year 2003, MIC began supporting comprehensive R&D on networkhuman interfaces including issues as practical multilingual voice translation systems for network-connected mobile terminals and technologies for preventing the harmful physical effects of optical stimulus from rapidly changing visual content. In March 2004 MIC convened a research group on ubiquitous sensor network technology. The technologies to perceive the conditions of people, things and the surrounding environment, and to transmit this dynamic information for further processing, are to be studied. Advances in space communications Space communications have many favorable features, for example the capacity to provide wide-area and simultaneous communications of a disaster-proof character. The technology is used in a wide range of fields including communications, broadcasting and positioning technology. To support its growth MIC is promoting the development of demonstration satellites and satellite experiments, including R&D on the quasizenithal satellite system, the ultra-highspeed Internet satellite, the Engineering Test Satellite VIII, and the Global Precipitation Measurement (GPM) initiative [MIC 2004]. As shown in Table 4-3, MIC gave priority to R&D on technologies to realize a ubiquitous network society. Also, following the e-Japan Strategy and the consecutive priority policy programs, security and international issue were given high priorities. 44 ICT IN JAPAN Table 4-3. Financial means provided by MIC for different R&D activities (in million yen). FY2003 FY2004 7 171 11 499 23 618 25 167 Promotion of network contents distribution 2 318 2 505 Promotion of information security 3 047 4 096 Development of wireless broadband environment 2 119 2 516 Promotion of international ICT strategies 5 581 6 909 12 968 14 056 Realization of a ubiquitous network society Promotion of digital broadcasting Promotion of ICT in administration and public services Source: Information and Communications in Japan, White Paper 2004, MIC 4.5 Ministry of Education, Culture, Sports, Science and Technology (MEXT) NAREGI (National Research Grid Initiative) is one of the collaboration projects among industry, academia and government, initiated by the Ministry of Education, Sports, Culture, Science and Technology (MEXT). The five-year project, started in April 2003, aims at the creation of an environment for next-generation computing systems. The background aim is to strengthen Japan’s international competitiveness in the ICT field. A major objective of the project is the research and development on application software for use in the nanotechnology and biotechnology fields. The NAREGI project had a huge impact even on other scientific areas that are closely related to industrial applications, such as new communications principles, electronic devices, optical devices, molecules, and the development of new drugs. MEXT allocated 3,200 million yen for this project in FY2004 [NAREGI Web, STT 2004]. 4.6 ITS related R&D Another important separate area for R&D activities is ITS (Intelligent Transport System). ITS is very ICT intense using both communication networks and IT devices. The area is very important for Japan and is supported by a number of different ministries and agencies (see Table 4-4). 45 ICT IN JAPAN Table 4-4. Financial means provided for ITS related R&D activities (in million yen). Area of Development Budget Item Operating Expenses FY2002 Operating Expenses FY2003 Ministry Advances in Navigation Systems Advances in Road Traffic Information Part of 16852 Million yen Part of 15256 Million yen MLIT ETC (Electronic Toll Collection system) R&D for Realization of Various Services Using DSRC (Dedicated Short Range Communications) used in ETC 0 Part of 15256 MLIT Assistance for Safe Driving Promotion of Comprehensive R&D of Driving Support Realized by Road-to-Vehicle Cooperation (repeated) Part of 16852 (repeated) Part of 15256 (repeated) MLIT Technology Assessment Task, Safe Driving Assist System for Advanced Safety Vehicle (ASV) (repeated) 95 (repeated) 99 (repeated) MLIT Technology Assessment Task, Safe Driving Assist System for New Generation Intelligent Vehicle (NGIV) 186 185 MLIT Survey and research on the optimization of traffic management 121 105 NPA Model Project of Environment Friendly Traffic Control 1213 74 NPA Verification Model Tests for Controlling Signals Based on the Real-time Information 419 27 NPA Comprehensive promotion of R&D on the computerization of road traffic managementrelated application and grant procedures and on the information of road management (repeated) Part of 16852 (repeated) Part of 15256 (repeated) MLIT R&D on Efficiency in Establishing Road Evaluation Systems 0 Part of 15256 MLIT The project making road transportation business highly efficient by utilizing Information Technology (Informing the best route to the destination by utilizing real-time bus location data) 0 103 MLIT Assistance for bus use promotion and other comprehensive schemes (repeated) Part of 1740 (repeated) Part of 1740 (repeated) MLIT The project making road transportation business highly efficient by utilizing Information Technology (Real-time Safety Management System) 55 0 MLIT Assistance for bus use promotion and other comprehensive schemes (repeated) Part of 1740 (repeated) Part of 1740 (repeated) MLIT Support for Pedestrians Comprehensive promotion of R&D on pedestrian support, etc. (repeated) Part of 16852 (repeated) Part of 15256 (repeated) MLIT Standardization and others Technical Cooperation regarding Traffic Safety 7 5 NPA R&D of regional ITS info-communication system 100 97 MIC Global promotion of ITS info-communication systems 16 16 MIC R&D on information and communications technologies for ITS implementations Part of 1350 819 MIC Project to standardize ITS 420 390 METI Developing Traffic Information infrastructure (Internet ITS) 100 Part of 3000 METI Optimization of Traffic Management Increasing Efficiency in Road Management Support for Public Transport Increasing Efficiency in commercial vehicles 46 ICT IN JAPAN Standardization of an Information Service System based on New-Generation Internet Technology Part of 900 Part of 1000 METI Promoting Car Sharing of Clean Energy Vehicles with ITS Technologies Part of 17000 0 METI Research and study of emergency information provision utilizing ITS technologies in a time of disaster 14 29 MLIT Survey on the benefit in terms of safety of road transport by making transport business highlyintelligent 16 10 MLIT Advanced vehicle identification utilization projects 171 200 MLIT NPA: National Police Agency MLIT: Ministry of Land, Infrastructure, and Transport MIC: Ministry of Internal Affairs and Communications METI: Ministry of Economy, Trade, and Industry Source: ITS Annual Report 2003, ITS Japan 4.7 Chapter Summary Japan’s total expenditure on R&D (FY2002) was 16 675 billion yen, reaching 3.35% of GDP. About 70% was spent by industries, 20% by universities, and 10% by public institutions. 13.5% of total R&D expenditure was spent within the ICT area. Council for Science and Technology Policy lead by the Prime Minister launched the second-Term Science and Technology Basic Plan (2001-2005), which placed special priority on four fields: Life Sciences, Information and Telecommunications, Environmental Sciences, and Nanotechnology and Materials. As the result of the plan and the e-Japan Strategy, Japanese ministries launched many R&D programs and projects ranging from semiconductors and displays to grid computing, photonic networks, Intelligent Transport System and Ubiquitous Network. 47 ICT IN JAPAN 48 ICT IN JAPAN 5 Industry 5.1 Overview of the ICT related industry Japanese large-scale companies have played major roles in the introduction of a wide variety of ICT products, both for development and production. These companies are Hitachi, Sony, Matsushita (Panasonic), Toshiba, NEC, Fujitsu, Mitsubishi Electric, Sanyo, Sharp and Oki. They have worked together with national research institutes such as AIST (National Institute of Advanced Industrial Science and Technology) and NICT (National Institute of Information and Communications Technology) and the public owned telecom carrier NTT. Most of these large-scale companies have manufactured a wide variety of ICT products. • electric and electronic components • semiconductors and integrated circuits • PC and work stations • mini/main frame computers • operating systems • computer languages and compilers • application programs • wired/wireless telephones • facsimiles • transmission systems • telephone switches (private branch exchanges) • routers • set-top boxes • home appliances (white goods, audio and visual products) • car navigation systems • car components and units • traffic (train) control systems • industrial control systems (industrial robots) • submarine cables and repeaters • communication satellites • defense systems 49 ICT IN JAPAN Those companies used to compete with each other as shown in Table 5-1. On the other hand, sometime they join forces to gain better impact with their products: • Hitachi and Mitsubishi Electric have a joint venture of System LSI • Hitachi and NEC have a joint venture of DRAM (Dynamic Random Access Memory) • Toshiba and Matsushita have a joint venture of TFT LCD • Fujitsu and Hitachi have a joint venture of Plasma display panels • NEC and Toshiba have a joint venture of space systems Table 5-1. World/Domestic market share of some ICT products in 2002 (1 means the largest market share holder). Articles Hitachi Sony Matsushita Toshiba To-Ma* NEC Fujitsu Mitsubishi Sanyo Sharp World market share DVD player Video camera TFT LCD Solar battery Digital Camera 1 1 2 3 4 5 5 3 1 1 Domestic market share Personal Computer PC server Unix server Facsimile Cell phone unit PDA Internet provider Logic IC Car navigation CRT TV & LCD TV LCD Plasma TV VCR DVD recorder Video camera Refrigerator Air conditioner Microwave Vacuum cleaner Lithium-ion battery 3 5 3 2 1 4 2 1 2 3 3 5 1 4 5 2 1 2 4 2 3 1 1 1 4 1 5 3 5 2 4 4 5 1 4 5 4 3 2 3 1 1 2 1 1 2 2 3 4 3 2 5 5 3 1 3 4 5 5 5 3 2 2 3 3 1 4 2 5 5 5 1 4 1 Note: *To-Ma: Toshiba-Matsushita. Source: “Shijou Senyuritsu” (Market share) by Nihon Keizai Shimbun. The nine major Japanese large-scale electronics manufacturers (listed in Table 5-1, except Oki) sales in 2002 fiscal year totaled 46 trillion yen, which is a 0.3 percent increase over the previous year. The investment to facilities and equipment was 2.4 trillion yen (an 11.6 percent increase over the previous year), and the R&D expen- 50 ICT IN JAPAN diture was 2.8 trillion yen (a slight increase over the previous year) [Shijou]. The sales break down of the companies ratio is shown in the Table 5-2 [EIA 2004]. The companies’ profiles could be described in the following way. Hitachi, Toshiba, Mitsubishi Electric are comprehensive manufacturers of electrical machinery. Although ICT equipment including semiconductors and consumer electronics are their mainstream products, heavy electric equipment such as power generators, industrial equipment, and defense systems are part of their product portfolio. NEC and Fujitsu have strong focus on ICT including semiconductors. Matsushita is similar to NEC and Fujitsu, but also produces consumer electronics. Sony, Sharp and Sanyo are focused on consumer electronics, although, Sony owns contents business and Sanyo produces commercial use electric systems and batteries. Table 5-2. Sales break down of large scale electronics companies. Sales (trilliion yen) R&D expentiture (%) Sales break down (%) Info. com systems Electronics devices Consumer electonics Industrial systems Financial services Contents Game Battery/Dry cell Others Hitachi Sony 8.3 7.4 4.8 6.2 19 15 12 22 6 26 61 Matsushita 7.5 7.8 59 30 16 4 Toshiba NEC Fujitsu 5.7 4.8 4.8 6.4 6.7 5.3 14 20 36 23 78 20 7 19 13 85 15 Mitsubishi Sanyo Sharp 3.3 2.5 2.2 4.3 5.4 7.3 17 12 20 38 20 53 9 14 13 4 19 30 49 3 2 7 15 8 10 Source: Denshi Kogyo Nenkan (Electronics Industry Almanac 2004) by Dempa Shimbunsha (Japanese). Historically, in many cases Japanese companies had the ambition to develop their own versions of products developed by other foreign companies. Using reverse engineering, the Japanese companies gained the required knowledge, contacted original manufacturers and bought know-how and licenses for their own production. Finally, they developed Japanese original version of such products by themselves, or together with other Japanese makers and/or national institutes. Another possible reason for making Japanese versions of foreign products was to overcome the language problem. End-users wanted, and still want, to handle more than 10,000 different Kanji and two other different character sets, especially for information handling systems (computers and computer controlled systems). Therefore, software modifications were required which was a barrier for foreign companies to enter the Japanese market. Through the years the large-scale companies joined different national ICT R&D projects and got access to both government budget for R&D and very skilled researchers with ICT competence. This was not so easy for medium and small scale companies. For example, NTT developed the original Japanese telephone switches 51 ICT IN JAPAN in the 1960s, together with Oki, Fujitsu, NEC and Hitachi. In parallel the Japanese government launched the “VLSI Project” in the 70s, the “Super Computer Project” and the “Fifth Generation Computer Project” in the 80s, “Sigma Project” aiming for software reuse for UNIX platforms in the late 80s, the “Friend 21 Project” for next generation human interfaces and the “Real World Computing Program” in the 90s. 5.2 ICT Market The market value of Japan’s ICT industry in 2002 was 116 trillion yen, which was a 2.7 percent decrease from the previous year. This was the first decrease since 1995. One of the reasons was a reduction in investment in computers and peripherals as well as wired and wireless telecommunication equipment. In addition, the share of the ICT industry as a proportion of the total industrial market value stood at 12 percent, which was a 0.2 percent decrease from the previous year [MIC 2004]. Figure 5-1. Transitions in the market Size and Proportion of the Information and Communications Industry to Overall Industries. Source: Information and Communications in Japan 2004, White Paper 2004, MIC 5.2.1 Telecommunications Business There were 12 518 telecommunications carriers in Japan at the end of 2003. New entrants during 2003 numbered 1 567 companies. Operators providing Internet services totaled 8 860. Fiscal year 2002 sales for the telecommunications business totaled 18.7 trillion yen, which was a 0.2 percent decrease from the previous fiscal year [MIC 2004]. 52 ICT IN JAPAN 5.2.2 Broadcasting Business There were 1 072 broadcasters (an increase of 46 over the previous fiscal year) at the end of 2003. Commercial broadcasters totaled 1 070 companies, of which 362 were terrestrial broadcasters, 134 satellite broadcasters, and 571 cable television broadcasters. Fiscal 2002 sales for broadcasters totaled 3.7 trillion yen, which was a 0.6 percent decrease from the previous fiscal year [MIC 2004]. 5.3 Electronics industry The electronic industry production in 2003 was about 19.3 trillion yen, according to METI (Ministry of Economic, Trade and Industry). This was a 6.6 percent increase over the previous year, but almost equal to 1987. The break down of the electronics industry was the following (see Table 5-3): • The production of consumer electronics equipment was about 2.3 trillion yen, a 14.2 percent increase over the previous year. The increase was mainly due to the high end digital equipment, such as Flat Panel TVs (Liquid Crystal Display (LCD) and Plasma Display Panel), DVD recorders, digital cameras, and car navigation systems. Conventional audio equipment, such as CD/MD players decreased by 13 percent from the previous year mainly due to shifting of the production overseas. • The production of industrial electronic equipment, which includes mobile phones, was 7.8 trillion yen in 2003, a 3.6 percent increase over the previous year. Mobile phone sales dropped in 2002, but jumped up in 2003 due to the popularity of digital camera embedded mobile phones and also the steady shift from 2G to 3G (the third generation mobile phone system). • Electronic parts and devices production was 9.2 trillion yen, a 7.4 percent increase over the previous year. This was due to the strong markets for mobile phones, digital audio and visual equipment and car navigation systems. • The increase of LCD (22 percent from the previous year) was due to the boom of LCD TV and new models of mobile phones. At the same time Japan lost its leadership in production of large size LCD panels for TV and PCs to the Korean companies (see Figure 2-8). However, Sharp is still dominant on the Japanese domestic market when it comes to large size LCD panels and small and medium size LCD panels used for production of PDAs and mobile phones. Most of the mobile phones in Japan use larger color LCD panels with higher resolution than the ones in US and Europe. The development caused by digital cameras being embedded in mobile phones. 53 ICT IN JAPAN Table 5-3. Electronic industry production in 2003. (million yen) year on year (%) 2,313,147 114.2 Consumer electronic equipment Video equipment 1,983,215 122.0 Audio equipment 329,932 82.4 Industrial electronic equipment 7,800,587 103.6 Communications equipment 3,413,075 115.0 686,083 86.8 Radio communication systems 2,726,992 125.3 Computers and related equipment 2,699,390 90.7 Electronic application equipment 807,841 111.7 Electric measuring instrumentation 502,581 115.3 Electronic business machines 377,700 88.8 9,182,322 107.4 2,927,431 100.2 Passive components 860,104 100.1 Connecting components 794,417 102.4 Electronic boards 789,936 101.8 94,851 80.6 388,123 98.5 6,254,891 111.1 Electronic tubes 319,678 104.3 Discrete semiconductors 961,825 108.6 Integrated circuits (ICs) 3,463,804 108.1 Liquid crystal device (LCDs) 1,536,584 122.0 19,296,056 106.6 Telecommunications systems Electronic components and device Electronic components Transducers Others Electronic devices Total Source: Denshi Kogyo Nenkan (Electronics Industry Almanac 2004) by Dempa Shimbunsha (Japanese). 5.4 Import and Export from/to Sweden In 2003 Japan imported 38 billion yen worth ICT equipment from Sweden, and exported for 50 billion yen to Sweden, i.e. a roughly 25% trading advantage to Japan. For a detailed list of Swedish companies active in Japan and Japanese companies active in Sweden see Appendix I. 54 ICT IN JAPAN Table 5-4. Japan import from Sweden (value unit: 1000 yen). Article group Value 2001 Telephony, Telegraphy 40 600 600 Audio and Visual Apparatus 15 407 525 Electrical Measuring 4 700 689 Electrical Power Machinery 2 674 384 Domestic Electrical Equip. 1 445 945 2002 Telephony, Telegraphy 26 822 874 Audio and Visual Apparatus 18 510 969 Electrical Measuring 5 465 906 Electrical Power Machinery 2 140 437 Domestic Electrical Equip. 1 297 927 2003 Telephony, Telegraphy 17 736 480 Electrical Measuring 5 142 939 Audio and Visual Apparatus 4 296 836 Electrical Power Machinery 1 573 389 Electrical Apparatus 1 309 321 Source: Trade Statistics, Ministry of Finance. Major products in the article groups from the value point of view (see Table 5-4) [MF 2004] were: • Telephone switches and radio transceivers in the “Telephony, Telegraphy” group • Parts for radio communication equipment in the “Audio & Visual apparatus” group • Console panels for electronic control systems, and numerical control systems in the “Electrical apparatus” group • Refrigerator, vacuum cleaner, and their parts, and electric heating resistor in the “Domestic electric equipment” group The drastic decrease of export value from Sweden to Japan (especially for Telephony, and Audio and Visual Apparatus) is strongly related to postponed investments in facilities and equipment to be done by telecommunication carriers (see Table 55). 55 ICT IN JAPAN Table 5-5 Investments in facilities and equipment done by telecommunication carriers (unit: billion yen). FY stands for fiscal year. FY 1999 2000 2001 2002 Fixed 1,889 1,702 1,277 1,134 Mobile 1,564 1,811 1,699 1,313 Source: Denshi Kogyo Nenkan (Electronics Industry Almanac 2004) by Dempa Shimbunsha (Japanese) Table 5-5 shows that the investments done by fixed operators have steadily decreased over the years. As the result the investments done by mobile operators became higher than fixed in FY 2000. However, even mobile operators’ investments have decreased after FY 2000. The problem is that telecommunication carriers, both fixed and mobile, have reduced their investments as a measure against continuous decreasing of ARPU (Average Revenue Per User). At the same time a peak of investments in the 3G infrastructure seemed to have passed and the process of replacing metal wires by optic fibers is about to be completed. 5.5 Chapter Summary Japan can produce a whole range of devices and components, from LSI and printed circuit boards, to high-end products, such as PCs, mobile phones, telephone switches, and super computers. Ten large-scale electronics manufacturers have played important role for the development of the ICT market in Japan. The market which was worth 116 trillion yen in 2002. 56 ICT IN JAPAN 6 Conclusions on future trends The Japanese national ICT policy has been mainly driven by the e-Japan Strategy I & II, and e-Japan Priority Policy Program 2004. The Japanese government, with its IT Strategic Headquarters, has succeeded in enhancing ICT infrastructure, but actual ICT usage is still below the expectations. For example, according to figures from February 2004 published by MPHPT the actual use of DSL was 28.7%, CATV - 11.1% and FTTH - 5.8%. Percentages refer to the share of actual users compared with the number of potential users. When it comes to E-government readiness index (based on website assessment, telecommunication infrastructure and human resource endowment) (Table 6-1) Japan is on the 18th position (Sweden on second). Measured by usage component index (based on individual, business and government usage) (Table 6-2) Japan is on the 11th position (Sweden on 5th). The set goal “To become the world’s most advanced IT nation by 2005” is still to be reached. As a result the government has shifted its focus from ICT infrastructure to ICT usage, and is consulting experts from both industry and academia to define appropriate measures. Table 6-1. E-government readiness index (based on website assessment, telecommunication infrastructure and human resource endowment). 57 ICT IN JAPAN Table 6-2. Usage component index (based on individual, business and government usage of the ICT technology). Source: Global Information Technology Report 2003-2004, WEF The Japanese domestic market is still very strong with many leading players in the ICT field (for example more than four PC manufacturers and four IC makers). Japan is leading in the field of mobile communications, small mobile terminals, ultrahigh speed network technologies, ITS, robotics, and aims to realize the ubiquitous network society by 2010. 58 ICT IN JAPAN Japan tends to be very technology focused in its ICT development, thus Sweden, with its more human-centered perspective, can be a very good source of inspiration. Also, Sweden could be a very good coach to enhance ICT usage in Japan. 6.1 Future trends Here we present different technologies which are predicted to influence the ICT development in Japan in the coming years. We used some material from previous reports produced at the ITPS Tokyo Office by Sabine Ehlers and Shigeyuki Naito [ICT 2003]. 6.1.1 Hardware and Terminals Hardware development sets the hard limits for possible ICT evolution. Ubiquitous computing demands cheap and durable displays, small and powerful batteries and virtually free and unlimited memory and processing power. PC, PDA or mobile: with regards to personal terminals, we are converging towards a one-type general purpose personal terminal for ubiquitous use, or diverging towards specialized terminals depending on context. Relevance of Japan With regards to network components, the Japanese government has invested substantial funds in R&D on backbone and access-line photonic network technology, as well as Internet node full fiber optic technology, aiming at a nationwide Terabit ultra-high-speed photonic network (Table 3-3). A gigabit-per-second class network, JGN (Japan Gigabit Network) has been in operation as a test bed connecting national research institutes and shared use research facilities, and JGN II with the performance of 20 Gbps at the maximum on major part of its network is also in operation. When it comes to electronic components, Japan, utilizing its accumulated semiconductor competence, very early began researching nano-technology. The area is now one of the focus areas in the R&D strategy of the Japanese government (Figure 43). Due to increased competition from Korean companies, most Japanese LSI makers have abandoned memory devices and instead focus their R&D on system-on-chip, a crucial technology for designing small terminals or networked home appliances. The government also pushes hard for R&D on fundamental process technologies for advanced semiconductor devices to realize next-generation large-scale integrated circuits (LSI) with the budget of 11.4 billion yen for fiscal 2004. In a similar way, the Japanese companies who previously worked on LCDs are now giving this area up to their Korean competitors, and instead focus their resources on new types of displays, such as Plasma Display Panels (PDP) and electronic paper. The government has also allocated considerable funds for this in their R&D budget: 840 million yen for FY2004 (Figure 2-8, Table 3-3 and Table 5-3). 59 ICT IN JAPAN NEC and Sony seem to deliver soon next-generation DVDs for PC with different standards. This might lead to another battle of the VHS and Beta for home video standards. When all devices become wireless, the portable energy source, or the battery, becomes a limiting factor with regards to weight, size and time before recharge. Fuel cell development may be the technology to solve these problems, and much research is focusing on this (Chapter 4.2.1). Japan has for decades produced and delivered robots to manufacturing plants all over the world. Recently other types of robots have come into the spotlight, for example entertainment robots such as AIBO and PINO, humanoid robots such as ASIMO, therapeutic robots such as Paro as well as some emergency rescue robots (Chapter 4.2.1). The Japanese world-leading hardware industry has helped create a vital, fastmoving consumer electronics market where all options are available, giving an early indication of user preferences and behavioral patterns. 6.1.2 System Software and Computing In order to realize the ubiquitous network society, things around us need to be intelligent. Embedded systems have in many applications already replaced traditional mechanical controls. In order to connect them and make them able to communicate with each other, control software and communication protocols will be crucial. User interfaces for input and output will become increasingly important as the terminals become smaller and ubiquitous, and that are more packed with functions. The ability of the industry to design appliances that are easy to use and understand is also crucial in order to make the technology accessible for all consumer groups. Relevance of Japan The open software architecture TRON is used in more than 50 percent of the appliances using embedded real-time operating systems produced in Japan. The TRON industry group has formed a new framework and a new development platform, which enables designers to reuse middleware [TRON]. The Japanese government recognizes that while the required IT infrastructure now largely is in place, IT usage is still not at top global level. Emphasis is therefore put not only on training the users, but also on developing user interfaces that make the technology accessible for all. Grid computing enables the sharing of power and resources of many computers, distributed and connected by networks. This has been suggested as a solution for high performance computing, and the government assigned four billion yen for grid computing research for fiscal year 2004. Also, it should be mentioned that Japan still has three major super computer makers: NEC, Fujitsu and Hitachi. 60 ICT IN JAPAN 6.1.3 Networks Networks are the crucial part of the basic enabling technology. There are many different technical issues related to networks: How can the high-speed backbone network be realized? What access network will become dominant and in what context? How do we make access available and affordable for everyone? The issues are further complicated due to different type of networks are expected to transparently work together. Relevance of Japan The Japanese government has formulated very ambitious goals for their high-speed backbone network, and are investing considerable research funding and prestige to realize it. Regarding the access network, the broadband connection fees in Japan on the fixed side are now the lowest in the world due to price competition. In connection with an early introduction of 3G telecom segments, this has made Japan one of the few markets in the world where consumers already have access to most network types, including major types of 3G networks, several hot-spot networks, as well as commercial VoIP. With 3G already in commercial service by the three national mobile carriers, the many world-leading Japanese ICT companies are focusing their mobile telecom research on 4G. Japan, with its challenging traffic situation, has also focused much attention and resources on developing a nationwide intelligent transport system (ITS). The owners of the approximately nine million VICS (Vehicle Information and Communication System) [VICS] on-vehicle units can, in addition to receiving near-real time traffic information, also receive a variety of on-demand information. Research is also made in the areas of safety, traffic management and emergency vehicle support. Because of the imminent crisis due to the lack of IP addresses allocated for Asia, Japan is a driver of the transition to IPv6. This new standard will in addition to a virtually limitless supply of addresses, necessary for the emergence of ubiquitous network, also offer higher security, better quality and the ability to transmit in realtime. 6.1.4 Content, applications and services In a world where ICT is ubiquitous, how can it be used to improve and enrich our lives? What will we be able to do, where, when, using what and to what price? The current issues include questions like: What services will be offered for leisure and business users respectively? What information and news-based services will be offered? What form will communication and social services take? What services should be commercial and for which public (for example information, education, health related services…)? 61 ICT IN JAPAN Relevance of Japan Japan has succeeded with what no other market has, namely to offer attractive, affordable, abundant mobile content for the consumers and to create a vital and profitable industry segment. “DoCoMo i-mode” has been a famous business model by its revenue sharing between the carrier and content providers, and also its adoption of the Internet standard, such as HTML and GIF format. It will be interesting to see if this will help the 3G market to take off, and if the experiences will be relevant to the business segment of the future ubiquitous ICT-society. 6.1.5 Business models During the first century of telecom, the business model was simple: a national governmental telecom operator sold voice communication and the subscribers paid for time and distance. With time the national carrier was privatized, which introduced competition to the telecommunication business. With further emergence of e-mail, the Web, mobile Internet, digital content, e-commerce etc, the business landscape changed completely. Content became digital, distance lost its relevance, the role of the incumbent organizations changed and new players appeared: payment providers, information brokers, content providers, web hotels, ISPs… The challenge, not yet overcome in Europe, is how to create business models which make the new industry viable for all necessary players while making the pricing models and commercial relationships comprehensible and worthwhile to the consumers. Relevance of Japan By focusing on evolution instead of revolution, ensuring that both content providers and users where with them every step of the way, the Japanese operators introduced the most successful business model for mobile internet and content so far: the i-mode model. The same industry is now trying to repeat the success with WLAN and 3G. 6.1.6 Usage ICT has the potential to influence all aspects of our lives. Tele-working could potentially affect our professional identities, the balance between our work and family life, how we live as well as the demands put on the public infrastructure. Communication services such as SMS, chat and online communities are already affecting the way especially young people socialize. E-commerce is influencing how we shop as well as the demands put on merchants. The Internet is also affecting the very nervous system of our society: the way citizens can influence and participate in the political process. The current issues include questions like: How and for what is it desirable that the society, the industry and the citizens use ICT? How do we get there? How to build competence, and educate the users? How to build trust and acceptance? How to bridge the digital divide? 62 ICT IN JAPAN Relevance of Japan Japan is lagging behind Sweden in general ICT use, both in the private and industrial sector. One of the reasons has been slow PC penetration to the Japanese homes due to the different Japanese character set. Even in 1995 when Microsoft released Windows 95, the PC penetration was less than 20 percent. At the same time the word-processor penetration was about 40 percent, which was twice as much as for PC. For comparison in 2003 the PC penetration was 78.2 percent while wordprocessor 26.7 percent. The problem is that Japanese use three different character sets in a mixed way: Chinese characters (ideogram, more than 10,000 characters), Hiragana characters (phonogram, 50 characters), and Katakana characters (phonogram, 50 characters). Furthermore Japanese write horizontally from left to right, but also vertically from top to bottom. When writing vertically, next line should start to the left of the previous line. These difficulties made the Japanese dedicated word-processing equipment popular for a very long time. The situation changed rapidly when computer application programs started handling Japanese. It is expected that the general ICT use should improve radically in the near future due to the fact that the mobile and fixed infrastructure is now in place, and private consumers have access to a complete range of choices when it comes to services, networks and terminals. Japan is facing similar problems as Sweden when it comes to overcoming a geographic and demographic digital divide due to an ageing society and disproportionately under-populated areas. The area of education and trust is also a shared concern. 6.1.7 Security Payment, authentication, integrity and privacy are all issues that have to be solved to create the consumer trust necessary to enable e-commerce, e-government, ehealth and all the other e-babies to take off for real. Companies on their side need to control access and protect their innovations and intellectual assets, which are to an increasing degree in a digital format and therefore can be copied and transferred to any corner of the world in a matter of seconds. IPR issues along with questions how to regulate and control misuse and criminal use of the Internet have to be addressed on a national as well as international level. Relevance of Japan When it comes to computer security, Japan has traditionally focused on the “hard” issues. Introduction of PKI (Public Key Infrastructure) and other technologies on a nationwide scale has been discussed as a tool to improve e-security, especially in the area of e-government. However when it comes to authentication, integrity and privacy, Japan can be considered as lagging behind Sweden. Conversely, due to their leading position in the mobile internet area, Japan has been confronted with some of its dark sides before any other country, including prostitu- 63 ICT IN JAPAN tion and other crimes linked to mobile dating services, and rampaging mobile scams and spasm. The legislative bodies and the operators have taken a number of measures to combat these issues. 6.1.8 Policies When it comes to policies, the general question is what the government can and should do to support and enable use of ICT in a beneficial way, for the growth of the economy and the improvement of quality of life for all citizens. Chapter 3 mentioned many good examples of government policies to make Japan “the world's most advanced IT nation by 2005”. The other issues are: What part of the spectrum should be regulated and how? Should the policy be based on commons instead of ownerships, and the spectrum regulated with technology instead of laws? Should Broadband connection (FTTH - Fiber To The Home) be provided as a facility with only the provision of services being market driven? Maybe the network should be “stupid” with intelligence only at the edges. Should the government support 3G and the established industry or should it let the unregulated W-LAN technology have a part of the market? Should VoIP be supported and regulated as a commercial service, competing with traditional telephone services? How to solve issues around roaming, antenna sites, etc? Relevance of Japan Japan is the second largest economy in the world, with large funds invested into research and development. As already discussed in previous chapters, since several years the Japanese government has identified ICT as a means to create growth in the economy. In 2001 the e-Japan strategy was established with the explicit goal to make Japan the world’s leading ICT nation by year 2005. Japan has succeeded in constructing a world-leading ICT infrastructure thanks to the efforts done by both the industry and the government. For example, a very low price of ADSL Internet connection is a result of the government encouraging open competition between ADSL carriers. However, the actual usage of the ICT infrastructure is rather limited and as discussed in previous chapters the government (IT Strategic HQ) launched consecutive strategy and priority policy programs in order to improve the situation. Some of the policies were based on methods widely used in companies to achieve a given goal, such as the PDCA (Plan, Do, Check and Action) cycle. Such methods seem to be working fine so far. 64 ICT IN JAPAN 7 Some suggestions for future Japan-Sweden ICT actions Ubiquitous network/computing and human interfaces All Japanese industries, universities, and government are tackling to realize the ubiquitous network society and ubiquitous computing. The work is done in different ways and at different levels, examples include RF-IDs, home networks, human interfaces, network agents, mobile communications, mobile terminals, media conversion, networked robots and services/applications. The Ministry of Internal Affairs and Communications (MIC) announced u-Japan Plan, which aims to realize ubiquitous network society by 2010. Historically Japanese ICT development has been very technology driven and hardware oriented. For example, despite previous declarations that humanmachine interfaces are going to be very important in the near future and large budgets has been assigned by the government for Human Interface R&D in the last 15 years, we have not yet seen a common universal interface with the same interaction pattern independently from the considered technical device. In Sweden, there are some research projects being part of the EU Disappearing Computing Program, which are focused on users’ behavior and users’ needs. Some other projects consider the fusion of Art and Technology as an elegant human interface. These different approaches may be a very good source of inspiration for Japanese researchers. Connected Home Last year, by an initiative of the Swedish Institute for Future Studies and the ITPS Tokyo office, bi-lateral communications and visits started in the field of Connected Homes (Smart houses, networked home appliances and future living). Two delegations from Sweden, one delegation from Japan and some individual researchers (both Japanese and Swedish) visited the respective countries. Both countries show a high interest in connected homes and are ready to establish further collaboration. Although this field is part of ubiquitous networks, it should be exposed separately to attract the required attention. Test-beds and markets of ultra-high speed and mobile networks Two ultra-high speed network test-beds, JGN and JGN II, are in operation in Japan. The possibility of making them available for tests and development by researchers, research institutes and companies in Sweden might be investigated. Japan is the world leader when it comes to commercial mobile networks based on 2.5G and 3G (W-CDMA and CDMA-2000) technologies, mobile terminals, in-car terminals (car navigation system) and services. The Japanese market is the best choice to test new mobile services and applications, provided for example by Swedish companies. 65 ICT IN JAPAN Robotics As mentioned in Chapter 6, Japan is one of the leading countries in the robotics research field. Robots require good sensors, actuators, control algorithms, light batteries, and system technologies. Some of the Japanese robots can be used as research platforms to test control algorithms and new commercial applications. For example, the latest AIBO (Sony’s pet robot) can function as a watch dog. When the AIBO is set to the watch dog mode and senses a moving object, it will automatically turn its head towards the object, and record both still picture and sound of the object, then send the information to the owner via e-mail. The owner also can send commands to AIBO at home via e-mail. Swedish researchers could utilize such hardware as platforms, and conduct novel research on control algorithms for autonomous systems. Delegations In order to learn about advances in everyday usage of ICT gadgets, and to see the latest advances done by Japanese researchers within the ICT area, Sweden should , on a yearly basis, send a delegation to Japan (consisting of researchers, policy makers, and representatives from industry). At the same time, following Japanese interest, the delegation could give seminars to present up-to-date information on the ICT advances in Sweden (ICT policy, latest research results, and market trends, etc.). Reports More detailed studies covering specific area of the Japanese ICT industry (in the similar manner as this report) could be done in order to find ICT-areas of great interest for future Japan-Sweden ICT-actions. 66 ICT IN JAPAN Terminology B-to-B Business to Business B-to-C Business to Consumer CDMA-2000 third generation mobile telecom technology CRT Cathode Ray Tube as used by non-flat TV sets and computermonitors Cryptography Scrambling plain text to cipher text in order to prevent third party eavesdropping, and to protect private information. DSL Digital Subscriber Line DSRC Dedicated Short Range Communications, so far in Japan it is used for ETC (Electronic Toll Collection) system, which consists of incar unit and road-side unit, and collects automatically toll road fee without stopping at a toll gate of highway. DVD Digital Versatile Disk or Digital Video Disk ETC Electronic Toll Collection FTTH Fiber To The Home FWA Fixed Wireless Access GIF Graphic Interchange Format Hot Spots wireless LAN nodes, which provide Internet connection. HTML HyperText Markup Language IC Integrated Circuits ICT Information and Communications Technology IP telephone Internet Protocol telephone, uses the Internet protocol packetswitched connections to exchange voice and other information. IPv6 Internet Protocol version 6, the latest level of the Internet Protocol. ISDN Integrated Services Digital Network, an agreed standard for sending voice, video, and data over digital or normal telephone lines. ISDN connections consist of two 64Kbps lines, both lines can be used simultaneously to offer speeds of 128Kbps. PC Personal Computer PDA Personal Digital Assistant PDCA Plan, Do, Check, Action RF-ID Radio Frequency Identification 67 ICT IN JAPAN Tele-commute Tele-commuting, tele-working: use of ICT to work outside of the traditional workplace TFT LCD Thin Film Transistor Liquid Crystal Display TRON The Real-time Operating system Nucleus VCR Video Cassette Recorder VICS Vehicle Information and Communication System VTR Video Tape Recorder W-CDMA Wideband Code Division Multiple Access, a third generation mobile telecom technology 68 ICT IN JAPAN References [CabOffice a] The Cabinet Office, Quarterly Estimates of GDP, http://www.esri.cao.go.jp/jp/ [CabOffice b] The Cabinet Office, Countermeasures for declining of birthrate and ageing society, http://www8.cao.go.jp/kourei/ [CSTP 2003] Council for Science and Technology Policy (CSTP) “State of S&T policies based on the 2nd S&T Basic Plan in FY2002”, May 27, 2003. [EIA 2004] Denshi Kogyo Nenkan (Electronics Industry Almanac 2004) by Dempa Shimbunsha (in Japanese) [e-Japan a] e-Japan Strategy (http://www.kantei.go.jp/foreign/it/network/0122full_e.html) [e-Japan b] e-Japan Strategy II (http://www.kantei.go.jp/foreign/policy/it/0702senryaku_e.pdf) [e-Japan c] e-Japan Strategy II Acceleration Package (http://www.kantei.go.jp/foreign/policy/it/040318senryaku_e.pdf) [e-Japan d] e-Japan Priority Policy Program 2004 (http://www.kantei.go.jp/foreign/policy/it/040615summary/040615gaiyo_e.pdf) [Fujitsu] Fujitsu company history [Hongo 2004] Interview with Mr. Hongo, Information Policy Division of METI, 2004. [ICT 2003] “Issues affecting the future of ICT” by Sabine Ehlers and Shigeyuki Naito, ITPS Tokyo, January 2003 [IPA Web] Information-technology Promotion Agency, Japan (IPA), (http://www.ipa.go.jp/) [ITS 2003] ITS Annual Report 2003, ITS Japan [JA 2004] Japan Almanac by Asahi Shimbun (2004) [JEITA] JEITA (Japan Electronics & Information Technology Industries Association) Statistics [JH 2004] Jouhouka Hakusho (Informatization White Paper) 2004 Japanese edition, JIPDEC [JTH 2004] Jouhou Tsushin Hakusho (Information and Communications White Paper) 2004 Japanese edition, MIC [MF 2004] Trade statistics, Ministry of Finance (http://www.customs.go.jp/toukei/info/topmenu_e.htm) [MIC 2003] Report on the Survey of Research and Development 2003, MIC 69 ICT IN JAPAN [MIC 2004] Information and Communications in Japan, White Paper 2004, MIC (http://www.johotsusintokei.soumu.go.jp/whitepaper/eng/WP2004/2004index.html) [MIC Web] Ministry of Internal Affairs and Communications (MIC) (http://www.soumu.go.jp/) [Ministry FA] Ministry of Foreign Affairs, http://web-japan.org/index.html [Nakagawa 2004] Nakagawa Report (“N Report”) – Toward a Sustainable and Competitive Industrial Structure-, (New Industry Creation Strategy), May, 2004, Ministry of Economy, Trade & Industry (METI) (http://www.rieti.go.jp/en/events/bbl/04070101.pdf) [NAREGI Web] NAREGI Website (http://www.naregi.org/index_e.html) [NIKKEI a] NIKKEI Weekly [NIKKEI b] The Nikkei Business Daily [NIPPON 2002] NIPPON the Land and Its People by Nittetsu Human Development (2002) [NIPPON 2004] Business Facts and Figures, NIPPON 2004 by JETRO (2004) [Oki] Oki Electric company history [SHH] IT Strategic Headquarters Homepage (http://www.kantei.go.jp/foreign/policy/it/index_e.html) [Shijou] Shijou Senyuritsu (Market share) by Nihon Keizai Shimbun [ST 2005] Science and Technology Basic Plan 2001-2005 (http://www8.cao.go.jp/cstp/english/basicplan01-05.pdf) [STT 2004] Science & Technology Trends (Quarterly Review), April 2004 by National Institute of Science and Technology Policy, MEXT. [TRON] T-Engine Forum (http://www.t-engine.org/index.html) TRON Association (http://www.assoc.tron.org/) [VICS] VICS Home page (http://www.vics.or.jp/english/index.html) [VP 2002] Effective innovation systems and problem-oriented research for sustainable growth, VINNOVAs Strategic plan 2003-2007, VINNOVA Policy VP 2002:4 [WP 2004] Information and Communications in Japan, White Paper 2004, Ministry of Internal Affairs and Communications. 70 ICT IN JAPAN Appendix I ICT Companies trading between Japan and Sweden Swedish ICT Companies active in Japan Swedish ICT Companies in Japan ABB K.K. Anoto Nippon K.K. Axis Communications K.K. Decuma AB, Japan Office Eklow Scandinavia Ltd. Electrolux (Japan) Ltd. Elekta K.K. Emhart Far East Corporation, Japan Branch Enea OSE Systems K.K. Facit K.K. Gammadata Scienta K.K. GSE Systems, Japan Habia Cable Asia Ltd. HMS Industrial Networks IAR Systems K.K. IFS Japan, Inc. Intentia Japan K.K. Micronic Japan K.K. Mydata Automation K.K. Nihon Teleca Nippon Ericsson K.K. Opticore ORC Software K.K. Radi Medical Systems K.K. Telelogic Japan Ltd. 71 www.abb.co.jp www.anoto.co.jp www.axiscom.co.jp www.decuma.com/index.html www.eklow.co.jp www.electrolux.co.jp www.elekta.com www.emhartglass.com/ www.enea.com www.facit.co.jp www.gammadata.se www.gses.com/ www.habia.se/ www.hms.se www.iarsys.co.jp www.ifsjapan.co.jp www.intentia.co.jp www.micronic.se www.mydata.com www.teleca.com www.ericsson.co.jp www.opticore.com/ www.orcsoftware.com www.radi.se www.telelogic.co.jp ICT IN JAPAN Japanese ICT companies active in Sweden Japanese Companies in Sweden (Area of ICT; 37companies) ALPS ELECTRIC CO., LTD. ANRITSU CORP. CANNON INC. Clarion Co., Ltd. DENSO CORP. EIZO NANAO CORPORATION FUJITSU LTD. FURUNO ELECTRIC CO., LTD. HAMAMATSU PHOTONICS K.K Hitachi Home & Life Solutions, Inc. Hitachi Maxell, Ltd. IIYAMA CORPORATION JEOL Ltd. (Nihon Densi) KAGA ELECTRONICS CO., LTD. Konica Minolta Photo Imaging , Inc. KYOCERA MITA JAPAN Corp. Matsushita Electric Industrial Co., Ltd Matsushita Electric Works, Ltd. NEC Corp. NIKON CORP. NITTO DENKO CORP. Oki Electric Industry Co., Ltd. OLYMPUS CORP. OMRON CORP PENTAX CORP. Pioneer Corp. Sharp Corp. SONY CORP. TAMURA CORP. TDK CORP. TERASAKI ELECTRIC CO., LTD. TOSHIBA CORP. Victor Co. of Japan, Ltd. Yamaha Motor Co., Ltd. YAMAHA CORP. YASUKAWA Electric Corp. www.alps.co.jp/index_e.htm www.anritsu.co.jp/E/ www.canon.com/index.html www.clarion.co.jp/english/index.cfm www.denso.co.jp/ja/ www.eizo-nanao.com/company/index.html www.fujitsu.com/ www.furuno.co.jp/ www.hpk.co.jp/eng/main.htm www.hitachi-hl.com/english/index.html www.maxell.co.jp/e/index.html www.iiyama.co.jp/index.html www.jeol.co.jp/english/index.html www.taxan.co.jp/english/index.html konicaminolta.com/index.html www.kyoceramita.com/ panasonic.co.jp/global/ www.mew.co.jp/e/corp/index.html www.nec.com/ www.nikon.co.jp/main/index_e.htm www.nitto.com/ www.oki.com/ www.olympus-global.com/en/global/ www.omron.com/index2.html www.pentax.co.jp/japan/globalsites/ www.pioneer.co.jp/index-e.html sharp-world.com/index.html www.sony.net/ www.tamuragroup.com/ www.tdk.co.jp/tetop01/index.htm www.terasaki.co.jp/tj/web/top.nsf www.toshiba.co.jp/index.htm www.jvc-victor.co.jp/ www.yamaha-motor.co.jp/global/index.html www.global.yamaha.com/ www.yaskawa.co.jp/en/ YOKOGAWA ELECTRIC CORP. www.yokogawa.com/ 72 VINNOVAs publications May 2005 See www.VINNOVA.se for more information VINNOVA Analysis VA 2005: 01 Wood Manufacture - the innovation system that beats the system. Only available as PDF. For Swedish version see VA 2004:02 development 04 Svensk sjöfartsnärings innovationssystem - igår, idag och imorgon 02 Stimulating International Technological Collaboration in Small and Medium-Sized Enterprises. 02 Nationella och regionala klusterprofiler A Study of VINNOVA’s SMINT - Företag inom bioteknik, läkemedel Programme. och medicinsk teknik i Sverige 2004 03 Regional ekonomisk tillväxt i 03 Innovation policies in South Korea Sverige 1986–2001. En studie av and Taiwan. Only available as PDF tillväxtens utveckling i Sveriges lokala 04 Effektanalys av nackskadeforskningen arbetsmarknader. vid Chalmers - Sammanfattning. Brief version of VA 2004:07, for brief version in English see VA 2005:05 05 Impacts of neck injuries research at Chalmers University of Technology Summary. Brief version of VA 2004:07, for brief version in Swedish see VA 2005:04 06 Forskningsverksamhet inom produktframtagning VA 2004: 01 The Swedish National Innovation System 1970-2003 - a quantitative international benchmarking analysis 02 Trämanufaktur - det systembrytande innovationssystemet. For English version see VA 2005:01 03 Impacts of the Swedish Competence Centres Programme 1995-2003. For brief versions in English and Swedisxh see VA 2004:05 and VA 2004:06 04 Telecom Dynamics - History and State of the Swedish Telecom Sectors and its Innovation System 1970-2003. Final Report. Only available as PDF 05 Impacts of the Swedish Competence Centres Programme 1995-2003 - Summary Report. Brief version of VA 2004:03. For brief version in Swedish see VA 2004:06 06 Effekter av det svenska kompetenscentrumprogrammet 1995-2003 - Sammanfattande rapport. Brief version in Swedish of VA 2004:03, for brief version in English see VA 2004:05 VINNOVA Forum VFI 2004: 01 Informationssamhället - åter till framtiden (Innovation policy in Focus) 02 Svensk innovationskraft - visionen måste vara starkare än motståndet (Innovation policy in Focus) VFI 2003: 01 Commercialization of Academic Research Results (Innovation policy in Focus) VFI 2002: 01 Betydelsen av innovationssystem: utmaningar för samhället och för politiken (Innovation policy in Focus) 02 Innovationspolitik för Sverige: mål, skäl, problem och åtgärder (Innovation policy in Focus) 03 Teknikparkens roll i det svenska innovationssystemet - historien om kommersialisering av forskningsresultat (Innovation policy in Focus) VINNOVA Information VI 2005: 01 VINNOVA in brief. For Swedish version see VI 2004:02 02 Årsredovisning 2004 VI 2004: 07 Effektanalys av nackskadeforskningen 01 Årsredovisning 2003 vid Chalmers. For breif versions in 02 VINNOVA i korthet. For English Swedish and English see VA 2005:04 and version see VI 2005:01 VA 2005:05 03 VINNOVAs activities within Biotechnology. VA 2003: 01 Innovationssystemanalys inom 04. VINN EXCELLENCE CENTER. flygindustri och luftfart. Förstudie For English version see VI 2004:05 02 Swedish Biotecknology - scientific 05 VINN EXCELLENCE CENTRES. publications, patenting and industrial For Swedish version se VI 2004:04 07 Kompetenscentrum i siffror 08 The Swedish Competence Centres Programme. Third International Evaluation - Group 2-6 (19 Centres) and Overall Impressions and Programme-wide Issues. VI 2003: 01 Verksamhet inom Transporter 02 Årsredovisning 2002 04 The Competence Centres Programme. Third International Evaluation. Group 1 (8 Centres) 05 The Concept of Innovation Journalism and a Programme for Developing it. Only available as PDF 06 EUREKA VINNOVA Policy VP 2005: 01 Kunskap för säkerhets skull. Förslag till en nationell strategi för säkerhetsforskning VP 2004: 01 Nationell strategi för transportrelaterad FUD VP 2003: 01 VINNFORSK - VINNOVAs förslag till förbättrad kommersialisering och ökad avkastning i tillväxt på forskningsinvesteringar vid högskolor. HUVUDTEXT. For appendixes see VP 2003:01.1 01.1 VINNFORSK - VINNOVAs förslag till förbättrad kommersialisering och ökad avkastning i tillväxt på forskningsinvesteringar vid högskolor. BILAGOR. Main text see VP 2003:01 02 Behovsmotiverad forskning och effektiva innovationssystem för hållbar tillväxt. VINNOVAs verksamhetsplanering 2003-2007. For English version see VP 2002:04, for full Swedish version see VP 2002:03 03 VINNOVAs forskningsstrategi. Strategi för hållbar tillväxt 04 Nationell Innovations- och forskningsstrategi för området Miljödriven teknikutveckling. Only available as PDF VP 2002: 02 Nationellt inkubatorprogram 03 Behovsmotiverad forskning och effektiva innovationssystem för hållbar tillväxt. En fördjupad version av VINNOVAs verksamhetsplanering 2003-2007. For short Swedish version see VP 2003:02, for short English version see VP 2002:04 av aktörsnätverk kring Intelligenta TransportSystem. Only available as PDF 07 Svensk forskning - rik på upplevelser. 04 Effective innovation systems and Only available as PDF problem-oriented research for 08 Fånga Vinden! - en klokbok för sustainable growth. VINNOVA’s tillväxt strategic plan 2003 - 2007. For Swedish 09 Utvärdering av det Nationella veersion see VP 2002:03 and VP Flygtekniska Forskningsprogrammet 2003:02 10 Forskning och Innovation i 05 Nationell strategi för FoU Småföretag. SBIR - Small Business inom området tillämpning av Innovation Research. Ett amerikanskt informationsteknik. program för behovsmotiverad forskning utförd av mindre företag VINNOVA Report VR 2005: 01 Effektivt arbete i processindustrin. Hur man gör. Från strategi till genomförande 02 Teori och metod för val av indikatorer för inkubatorer. Only available as PDF 03 Informations- och kommunikationsteknik i USA. En översiktsstudie om satsningar och trender inom politik, forskning och näringsliv. Only available as PDF 04 Information and Communications Technology in Japan. A general overview on the current Japanese initiatives and trends in the area of ICT. Only available as PDF 05 Information and Communications Technology in China. A general overview of the current Chinese initiatives and trends in the area of ICT. Only available as PDF 06 Under production 07 Samhandling för innovationsledd tillväxt VR 2004: 01 Nya material och produkter från förnyelsebara råvaror. En framtidsbild och vägen dit. For short version see VR 2004:02 02 Nya material och produkter från förnyelsebara råvaror. Short version of VR 2004:01. 03 Evaluation of the NUTEKVINNOVA programme in Complex Technical Systems 1997-2001. Utvärdering av ett FoU-program i Komplexa Tekniska System 19972001 04 Förnuft och känsla - en narrativ studie om äldre kvinnors bilkörning. Only available as PDF 05 Equipment for Rational Securing of Cargo on Railway Wagons. Utrustning för rationell säkring av last på järnvägsvagnar (jvgRASLA). Only available as PDF 06 Innovationspolitik för ITS. En studie 11 Arbetsgivarringar i Sverige förekomst, funktion och nytta 12 Evaluation of the Öresund contracts for cross-border R&D cooperation between Denmark and Sweden 13 Det öppna svenska innovationssystemet - en tillgång för Sverige VR 2003: 01 Fysisk planering i det digitala samhället. Telematik 2004 02 Kina störst på mobiltelefoni konsekvenser för omvärlden. Telematik 2006 03 Framtidens fordon - mötet mellan två mobila världar. Telematik 2006 04 Efter 11 september 2001: - Kan storebror hejdas? Telematik 2006 06 Kunskapskultur och innovation. Innovationssystem kring energirelaterad vägtransportteknologi. Förstudie. Only available as PDF 07 Förändrad finansiering av tranportforskningen. Only available as PDF 08 Inledande laboratorieförsök - Projekt AIS 32. Delrapport 1. Only available as PDF 09 Inledande fältförsök - Projekt AIS 32. Delrapport 2. Only available as PDF 10 Hur går det till i verkligheten? Innovationsprocessen utifrån 18 fall 11 Returlogistik - Utveckling av logistiksystem för returgodsflöden. Only available as PDF 12 Genusperspektiv på innovationssystem - exemplet svensk musikindustri Production: VINNOVA´s Communication Division Printed by: AJ Ekonomi-Print AB, www.ekonomiprint.se May 2005 Sold by: Fritzes Offentliga Publikationer, www.fritzes.se VINNOVA´s mission is to promote sustainable growth by developing effective innovation systems and funding problem-oriented research V E R K E T F Ö R I N N O V AT I O N S S Y S T E M VINNOVA, SE-101 58 Stockholm – S W E D I S H A G E N C Y F O R I N N O V AT I O N S Y S T E M S Besök/Office: Mäster Samuelsgatan 56 Tel: +46 (0)8 473 3000 VINNOVA @ VINNOVA .se www. VINNOVA.se Fax: +46 (0)8 473 3005
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