Summary of the White Paper on
Manufacturing Industries
(Monodzukuri) 2011
October 2011
Ministry of Economy, Trade and Industry
Ministry of Health, Labour and Welfare
Ministry of Education, Culture, Sports, Science and
Technology
Contents
Part 1: Current Status and Challenges of Manufacturing
Infrastructure Technology
Chapter 1: Status of Manufacturing Industries in Japan in Correlation
with Changes in Domestic and Overseas Economies [p1]
Section 1: Trends in Japan’s manufacturing industries
Section 2 Current status of employment/labour of manufacturing workers
Chapter 2: Challenges and Prospects Facing Japan’s Monodzukuri
Industries [P14]㻌
Section 1: Manufacturing industries in Japan are facing structural changes in the
global economy
Section 2: Trend of Japan’s manufacturing industries after the Great East Japan
Earthquake
Section 3: Maintaining/enhancing Japan’s manufacturing infrastructure
Section 4: Japanese manufacturing industries aim to create value added in the
global market
Chapter 3: Fostering Human Resources that will Play Important Roles
in Monodzukuri Industries in Japan [P59]㻌
Section 1: Current status and problems of fostering human resources that will
serve Monodzukuri industries in the future
Section 2: Monodzukuri-related human resources development policies
Chapter 4: Education, Research, and Development to Support the
Foundation of Monodzukuri [P77]㻌
Section 1: Roles of universities (engineering), colleges of technology, specialized
high schools, and specialized training colleges in fostering manufacturing
human resources
Section 2: Educational/cultural capabilities for fostering monodzukuri human
resources
Section 3: Pushing ahead with R&D to enhance industrial capabilities
Part 2: Policy Actions in FY2010 for Promoting Manufacturing
Infrastructure Technologies [P90]
㻌
Annex: Policy Actions planned for FY2011 for Promoting
Manufacturing Infrastructure Technologies [P100]
㻌㻌
Part 1: Current Status and Challenges of Manufacturing Infrastructure Technology
Chapter 1: Status of manufacturing industries in Japan in correlation with changes in domestic and overseas economies
Section 1: Trends in Japan’s manufacturing industries
(Situation surrounding Japan’s manufacturing industries: Japan’s economic conditions (1))
The Great East Japan Earthquake occurred when the Japanese economy was showing signs of recovery from
the worldwide recession and the subsequent sluggish economic growth. Japan’s real GDP suffers negative
growth, affected by lower production activities and decreased final consumption expenditures. In particular, the
transport machinery industry has suffered a record-setting production drop, but mining and industrial output is
seeing a trend of recovery these days.
[Chart 1-1: Contribution of GDP components to the
real GDP growth rate]
䠄䠂䠅
[Chart 1-2: Trend of industrial production indexes
(manufacturing industries)]
110
110
4
100
100
3
90
90
2
〇㐀ᕤᴗindustries
Manufacturing
80
80
1
㕲㗰ᴗ
Iron
and steel industry
70
70
0
Chemical
industry (excluding
໬Ꮫᕤᴗ䠄㝖䠊་⸆
pharmaceutical products)
▲ 0.5
▲1
ရ䠅
60
60
▲2
▲3
⣧㍺ฟ
Net exports
බⓗᅾᗜရ
Public inventories
බⓗᅛᐃ㈨ᮏᙧᡂ
Public investment
ᨻᗓᾘ㈝
Government consumption
Ẹ㛫ᅾᗜရ
Private inventories
௻ᴗタഛ
Corporate capital
ఫᏯ
Residential investment
᭱⤊ᾘ㈝ᨭฟ
Final consumption
Electric
machinery industry
㟁ẼᶵᲔᕤᴗ
50
50
Electronic
parts/devices industry
㟁Ꮚ㒊ရ䞉䝕䝞䜲䝇
40
40
investment
▲4
General
machinery industry
୍⯡ᶵᲔᕤᴗ
ᕤᴗ
Transportation equipment
㍺㏦ᶵᲔᕤᴗ䠄㝖䠊
industry (excluding ships and
railway
rolling stocks)
⯪⯧䞉㕲㐨㌴୧䠅
spending
▲5
ᅜෆ⥲⏕⏘(ᨭฟഃ)
GDP (expenditure side)
30
30
▲6
Ϩ
ϩ
Ϫ
08
ϫ
Ϩ
ϩ
Ϫ
09
Source: Cabinet Office, “National Accounts”
ϫ
Ϩ
ϩ
Ϫ
10
ϫ
Ϩ
ϩ
11
101112
101112 11 22 33 44 55 66 77 88 99101112
10111211 22 33 44 55 66 77
10111211 22 33 44 55 66 77 88 99 101112
101112 11 22 33 44 55 66 77 88 99 101112
07
07
㻔ᅄ༙ᮇ䠅
(Quarter)
㻔ᖺ䠅
(Year)
1
08
08
09
10
10
1111
Remarks: Data are plotted, with the seasonally adjusted production index in October
2007 (i.e., business cycle peak) standing at 100.
Source: METI, “Industrial Production Index”
(Month)
䠄᭶䠅
(Year)
䠄ᖺ䠅
(Situation surrounding Japan’s manufacturing industries: Japan’s economic conditions (2))
Corporate views on business environment are deteriorating due to the negative impacts of the Great East
Japan Earthquake. In addition, the sales volume of products covered by the Eco Point or Eco Car Subsidy
Program has increased the positive impacts of these policy programs, but it has fluctuated so much due to the
termination/alternation of these policy programs or from the effects of the Great East Japan Earthquake.
[Chart 1-4: Trends in consumer electronics sales/
shipment volume and automobile sales volume]
䠄䠂䠅
200
෭ⶶᗜ
Refrigerators
[Chart 1-3: Business conditions DI]
䜶䜰䝁䞁
Air
conditioners
150
January 2011:
Products covered by
the point program
changed.
ⷧᆺ䝔䝺䝡
Flat-screen
TVs
䠄䠂䠅
100
30
20
50
Good business
ᴗἣ䛜Ⰻ䛔
conditions
10
May 2009:
Consumer electronics
eco-point program
was started.
March 2011:
The Great East Japan
Earthquake occurred.
Consumer electronics
eco-point program was
terminated.
0
0
▲ 50
▲ 10
1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7
09
▲ 20
䠄䠂䠅
▲ 30
Bad
business
ᴗἣ䛜ᝏ䛔
conditions
▲ 40
㻡㻜
Large
኱௻ᴗ〇㐀ᴗ
manufacturers
Large
኱௻ᴗ㠀〇㐀ᴗ
non-manufacturers
㻠㻜
㻟㻜
SME
manufacturers
୰ᑠ௻ᴗ〇㐀ᴗ
▲ 50
㻞㻜
SME
୰ᑠ௻ᴗ㠀〇㐀ᴗ
non-manufacturers
▲ 60
Ϩ
ϩ
Ϫ
08
ϫ
Ϩ
ϩ
Ϫ
09
ϫ
Ϩ
ϩ
Ϫ
10
ϫ
Ϩ
ϩ
11
㻝㻜
(Quarter)
䠄ᅄ༙ᮇ䠅
(Year)
䠄ᖺ䠅
September 2010:
Eco car subsidy was
terminated.
䠄ᖺ䠅
(10,000
䠄୓ྎ䠅vehicles)
March 2011:
The Great East
Japan Earthquake
occurred.
㻣㻜
㻢㻜
㻡㻜
㻠㻜
䕦 㻝㻜
㻟㻜
䕦 㻞㻜
㻞㻜
䕦 㻠㻜
䕦 㻡㻜
2
April 2009:
Eco car tax cut/subsidy programs
were started.
11
㻜
䕦 㻟㻜
Source: Bank of Japan, “Short-term Economic Survey of Enterprises in Japan (Tankan)”
Sales
volume (right axis)
㈍኎ྎᩘ䠄ྑ㍈䠅
Sales volume (changes on a
㈍኎ྎᩘ䠄๓ᖺྠ᭶ẚ䚸ᕥ㍈䠅
year-on-year
basis: left axis)
10
䠄᭶䠅
㻝㻜
㻜
㻝 㻞 㻟 㻠 㻡 㻢 㻣 㻤 㻥 㻝㻜㻝㻝㻝㻞 㻝 㻞 㻟 㻠 㻡 㻢 㻣 㻤 㻥 㻝㻜㻝㻝㻝㻞 㻝 㻞 㻟 㻠 㻡 㻢 㻣 (Month)
䠄᭶䠅
㻜㻥
㻝㻜
㻝㻝
(Year)
䠄ᖺ䠅
Source: Japan Automobile Manufacturers Association data; METI, “Current Survey of Production,”
and Japan Electronics and Information Technology Industries Association,
“Terrestrial Digital Television Broadcasting Receivers Domestic Shipment Volume”
(Changes of profit structure: Current status of globalization (1))
Japanese firms have a stronger tendency to earn profits in Asia or other emerging markets by expanding their
business operations overseas. In addition, Japanese firms’ overseas subsidiaries have more
suppliers/customers in their neighboring countries or other nations, suggesting that global supply chains are
getting more complicated.
[Chart 1-5: Trend of regional current profit of Japanese firm’s
overseas subsidiaries (manufacturing industry)]
[Chart 1-6: Trends in suppliers/customers of Japanese firms’ local
overseas subsidiaries (manufacturing industries)]
(%)
100
(in ¥1 billion)
6,000
᪥ᮏᅜෆ
Japan
⌧ᆅᅜ
Local market
Neighboring
䛭䛾௚
Others
⌧ᆅ࿘㎶ᅜ
countries
80
5,000
60
4,000
40
3,000
Europe
China
ASEAN4
04
NIEs3
05
06
Asia (the other countries)
07
Latin America
08
Middle East
09
Oceania
(FY)
Africa
Source: METI, “Survey of Overseas Business Activities”
Source: METI data (January 2011)
3
Future plan
(n = 230)
At the time of
Future plan
Suppliers of ASEAN overseas
ASEAN⌧ᆅἲே䛾ㄪ㐩ඛ
subsidiaries
Present
(n = 238)
⌧ᅾ(n=238)
03
ᑗ᮶ணᐃ(n=242)
(n = 242)
N. America
02
incorporation
タ❧ᙜ᫬(n=230)
01
ᑗ᮶ணᐃ(n=239)
(n = 239)
0
Present
(n = 234)
⌧ᅾ(n=234)
1,000
0
(n = 226)
Asia
At the time of
2,000
incorporation
タ❧ᙜ᫬(n=226)
20
Customers of ASEAN overseas
ASEAN⌧ᆅἲே䛾௙ྥᆅ
subsidiaries
(Changes of profit structure: Current status of globalization (2))
The income balance, which represents a gap between interests, dividends, or wages receivable from foreign
nations and those payable to foreign nations, has been exceeding the trade balance since 2005. Foreign
direct investment (FDI) of manufacturing industries is taking a downward trend on the world total basis,
showing a significant drop in North America and Europe, but it takes an upturn in Asia.
[Chart 1-8: Trends in foreign direct investment by region
(manufacturing industries)]
[Chart 1-7: Trends in income balance and trade balance]
(¥100
million)
䠄൨෇䠅
50,000
(¥1 trillion)
(඙෇)
18
40,000
16
14
30,000
12
20,000
15,507
10
12,505
10,000
8
6
0
4
Income
ᡤᚓ཰ᨭ
balance
Trade
㈠᫆཰ᨭ
balance
2
-10,000
05
0
00
01
02
03
04
05
06
07
08
09
06
䜰䝆䜰
Asia
10 (Year)
(ᖺ)
07
North
໭⡿
America
Middle and
୰༡⡿
South
America
08
኱ὒᕞ
Oceania
09
Ḣᕞ
Europe
10
඲ୡ⏺
World total
Remarks: Data for “Europe” from 2005 to 2009 represent the sum
of “Western Europe” and “Eastern Europe, Russia, etc.”
in the same period.
Source: Ministry of Finance, “Balance of Payments”
Source: Ministry of Finance, “Balance of Payments”
4
䠄ᖺ䠅
(Year)
(Changes of profit structure: Current status of globalization (3))
Current profits of overseas subsidiaries have been decreasing since 2008, but the back-flow of profits to the
domestic market suffered only a relatively small drop in 2008 and started to take an upturn in 2009.
Since the overseas subsidiary dividend income non-accrual program was introduced in April 2009, more and
more companies are intending to bring their dividend income back to Japan.
[Chart 1-9: Flow-back of profits to the domestic market]
[Chart 1-10: How to spend overseas subsidiary’s profits before/after
the overseas subsidiary dividend income
non-accrual program is introduced]䛇
㻠㻚㻜㻌
0
10
20
30
40
50
60
70 䠄䠂䠅
㻟㻚㻡㻌
48.5
Reinvesting profits
⌧ᆅ䛷฼┈䜢෌ᢞ㈨
locally
㻟㻚㻜㻌
43.6
㻞㻚㻡㻌
50.7
Retaining profits
⌧ᆅ䛷฼┈䜢␃ಖ
locally
㻞㻚㻜㻌
29.1
㻝㻚㻡㻌
Flow-back
to the domestic market
ᅜෆ䜈䛾㑏ὶ㢠䠄㓄ᙜ㔠䞉㓄ศ῭ᨭᗑ཰
(dividend
┈䠄ཷྲྀ䠅䠅 and distributed branch’s
earnings (receivables))
Current
profit per overseas
⌧ᆅἲே䠍♫䛒䛯䜚䛾⤒ᖖ฼┈
subsidiary
㻝㻚㻜㻌
㻜㻚㻡㻌
Other
䛭䛾௚
㻜㻚㻜㻌
㻜㻝
㻜㻞
㻜㻟
㻜㻠
㻜㻡
㻜㻢
㻜㻣
㻜㻤
㻜㻥
41.9
Bringing profits
ᮏ㑥䜈䛾㓄ᙜ㑏ඖ
back to Japan
(ᖺᗘ)
(FY)
69.5
1.9
1.1
Before the program is
ไᗘᑟධ๓䠄n=270䠅
introduced (n = 270)
After the program is
ไᗘᑟධᚋ䠄n=275䠅
introduced (n = 275)
Remarks: “The overseas subsidiary dividend income non-accrual program”
If a domestic corporation has 25% or larger shareholding ratio in a foreign
firm for six months or longer, the domestic corporation is able to exclude
95% of the dividend income from such foreign firm from its profits.
Remarks: The data are plotted, with the data in 2001 representing 100.
Sources: Chart developed by METI based on “Balance of Payments” by
Ministry of Finance and “Survey of Overseas Business Activities” by METI.
Source: Japan Economic Foundation, “Survey Research on Enhancing
Competitive Edge of Japan’s Industries to Address Changes in
Competition Environment”
5
(Trends in capital investment)
Overseas/domestic capital investment ratio in manufacturing industries is rising to 51.4%. A lot of firms put
emphasis on capital investment at overseas production bases for “capacity enhancement” purposes, while
they also focus on capital investment at domestic bases for “rationalization/laborsaving” purposes or “new
products or advanced products” purposes.
[Chart 1-12: Priority investment categories in FY2011
(in comparison with FY2010)]
[Chart 1-11: Overseas/domestic capital investment ratio]
(
140
127.9
FY 2010
FY 2011
120
Overseas
100
92.4
87.2
80
65.1
60
51.4
Capacity enhancement
Manufacturing
industry
Automobile
Nonferrous
metal
Remarks: Overseas/domestic capital investment ratio = (consolidated
overseas capital investment / consolidated domestic capital
investment) * 100; if overseas investment exceeds domestic
investment, this ratio will rise further than 100%.
Source: Development Bank of Japan, “Survey on Planned Capital
Spending for FY 2010, FY 2011, and FY 2012”
Source: METI, “The Second Emergency Survey on the Actual Status of
Industries after the Great East Japan”
6
No change
Chemical
0
Others
Electric
machinery
20
Environmental field
27.9
Maintenance and repair
32.2
23.7 26.0
Rationalization / laborsaving
(energy and resources saving)
39.5
New products / advanced
products
40
Domestic
(Stronger yen (1))
As for effective forex rates for recent years, the yen has been rapidly appreciating in comparison with the US
dollar, Euro, or Korean won. The yen is getting much stronger than is assumed by exporting firms.
[Chart 1-14: Assumed trend of forex rates by exporting firms]
[Chart 1-13: Value of major currencies in effective forex rates]
130
㏻㈌㧗
Stronger
120
110
100
90
80
㏻㈌Ᏻ
Weaker
70
60
nth)
1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 (Month)
䠄᭶䠅
07
08
09
10
11
(Year)
ar)
䠄ᖺ䠅
Japanese
᪥ᮏ෇
yen
US dollar
⡿ᅜ䝗䝹
Euro
䝴䞊䝻
Korean won
㡑ᅜ䜴䜷䞁
Chinese
୰ᅜඖ
yuan
Remarks: The data are plotted, with the forex rate in January 2007 representing 100.
Source: Bank for International Settlements (BIS)
7
Source: Bank of Japan, “Short-term Economic Survey of
Enterprises in Japan (Tankan)”
(Stronger yen (2))
With the yen getting stronger in relation to the US dollar, more than 70% of the respondent companies say that
they are facing “serious profit drop” or “profit drop to a certain extent.” If the forex rate stays around ¥76/$1 for
a half year or longer, more and more corporations will suffer “serious profit drop.” To address a sharp rise in
the yen value, overseas production transfers will probably speed up further.
[Chart 1-15: Impacts of the forex rate on earnings
(large manufacturers; against the US dollar)]
0
Impacts⌧ᅾ䛾෇㧗Ỉ‽䛾ᙳ㡪
of the current yen value
(n 䠄n=59㸧
= 59)
⌧ᅾ䛾෇㧗Ỉ‽䛜༙ᖺ௨ୖ
Possible impacts if the yen
value⥅⥆䛧䛯ሙྜ䛾ᙳ㡪
stays high for a half year
or longer
(n = 59)
䠄n=59㸧
20
15
40
60
61
32
Severe profit decline (operating profit will decline by 20% or more on
῝้䛺ῶ┈䠄Ⴀᴗ฼┈ᑐ๓ᖺẚ20䠂௨ୖ䠅
a year-on-year basis)
䜋䛸䜣䛹ᙳ㡪䛺䛧
Almost no impact
Sharp profit increase (operating profit will increase by 20% or more
኱䛝䛟ቑ┈䠄ྠ20䠂௨ୖ䠅
on a year-on-year basis)
47
[Chart 1-16: Impacts of stronger yen on overseas transfers]
80
100 䠄䠂䠅
12
12
8
12
Cutting down costs through
management efforts and product
design changes
Changing materials procurement
methods/percentage
(Overseas procurement is
increasing)
Changing parts procurement
methods/percentage
(Overseas procurement is
increasing)
ከᑡ䛾ῶ┈䠄ྠ20䠂ᮍ‶䠅
Profit decline to a certain extent (less than 20%)
ከᑡ䛾ቑ┈䠄ྠ20䠂ᮍ‶䠅
Profit increase to a certain extent (less than 20%)
Risk hedging through foreign
exchange contracts
Overseas transfers of production
plants or R&D facilities
Remarks: Survey period: August 22 to August 26, 2011
Source: METI, “Survey concerning the impact of the current strong yen
on industries (large manufacturers)”
Remarks: These are possible actions if stronger yen as of August 2011
(approximately ¥76/$1) continues for longer than a half year.
Source: METI, “Survey concerning the impact of the current strong yen
on industries (large manufacturers)”
8
(M&A situation surrounding Japan’s manufacturing industries)
“Overseas firms’ M&A toward Japanese manufacturers” are obviously increasing more than “Japanese
manufacturers’ M&A toward overseas firms.”
On the other hand, a stronger yen these days will have positive impacts on “Japanese manufacturers’ M&A
toward overseas firms.”
[Chart 1-17: Trends in overseas firms’ M&A toward Japanese
manufacturers]
(Projects)
[Chart 1-18: Trends in Japanese manufacturers’ M&A toward
overseas firms]
Overseas non-manufacturers’ M&A
toward Japanese manufacturers
(Projects)
Japanese manufacturers’ M&A toward overseas nonmanufacturers
Japanese manufacturers’ M&A toward overseas
manufacturers
Overseas manufacturers’ M&A
toward Japanese manufacturers
(Year)
Source: The data come from RECOF Data materials.
(Year)
Source: The data come from RECOF Data materials.
9
Section 2 Current status of employment/labour of manufacturing workers
(Status of the employment / labour market (1))
The number of people employed in manufacturing industries has been on a long-term downtrend, and although the
number began to recover in 2005, it has been declining again since the second half of 2007.
Unemployment rate (seasonally adjusted) has been showing a downward trend after hitting a record high of 5.5% in July
2009. Active jobs-to-applicants ratio (seasonally adjusted) is demonstrating a gradual upward trend having reached 0.66
in August 2011 after hitting a record low at 0.43 in August 2009. However, the employment situation still remains quite
severe.
The number of new job offers in manufacturing industries and the active jobs-to-applicants ratio in the areas of
production processes and labour services has recently been growing moderately.
[Chart 1-19: The number of employed workers, etc. in manufacturing industries]
[Chart 1-20: Trend of total unemployment rate and active jobs-to-applicants ratio]
(Ti mes )
(10,000 workers)
1,350
Employed person
Employee
1,300
(%)
㻝㻚㻝㻜
㻢㻚㻜㻌
㻝㻚㻜㻜
1,250
㻡㻚㻡㻌
㻜㻚㻥㻜
㻡㻚㻜㻌
1,200
㻜㻚㻤㻜
1,150
㻠㻚㻡㻌
㻜㻚㻣㻜
1,100
㻠㻚㻜㻌
㻜㻚㻢㻜
1,050
1,000
㻟㻚㻡㻌
㻜㻚㻡㻜
950
01
02
03
04
05
06
07
08
09
10
㻟㻚㻜㻌
㻜㻚㻠㻜
ϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫ (Quarter)
㻜㻜
㻜㻝
㻜㻞
㻜㻟
(Year)
㻜㻠
㻜㻡
㻜㻢
㻜㻣
㻜㻤
㻜㻥
㻝㻜
㻝㻝
(Year)
Active jobs-to-applicants ratio (lef t scale)
Total unem ploym ent ratio (right scale)
Source: Ministry of Internal Affairs and Communications, “Labor Force Survey,” and Ministry of
Health, Labour and Welfare, “Employment Statistics”
Remarks: I to IV represent the 1st quarter to the 4th quarter. The above figures are original series .
Source: MIC “Labor Force Survey”
[Chart 1-22: Changes in the Active Jobs-to-Applicants Ratios in Production Process and Labour Services]
[Chart 1-21: Changes in the number of job offers in manufacturing industries (October 2007 = 100)]
(Times)
100
90
1.6
All industries
Manufacturing industries
Electronic parts/devices/circuits m anufacturing industry
Metal product m anufacturing industry
Electric m achinery m anufacturing industry
Transportation m achinery m anufacturing industry
Total
1.4
80
1.2
70
Production processes/labor services
Metal processing
Transport m achinery assem bly/repair
Metal welding/cutting
Electric m achinery assem bly/repair
General m achinery assem bly/repair
1.0
60
0.8
50
0.6
40
0.4
30
0.2
20
0.0
08.9
10
08.12
09.3
09.6
09.9
09.12
10.3
10.6
10.9
10.12
11.3
11.6
(Year.month)
0
07.10
08.1
08.4
08.7
08.10
09.1
09.4
09.7
09.10
10.1
10.4
10.7
10.10
11.1
11.4
11.7
(Year, month)
Remarks: The above figures represent offers for permanent jobs excluding offers for new graduates but
including those for part-time jobs. The above figures are original series.
Source: Ministry of Health, Labour and Welfare, “Employment Statistics”
10
Remarks: The above figures represent offers for permanent jobs excluding offers for new
graduates but including those for part-time jobs. The above figures are original series.
Source: Ministry of Health, Labour and Welfare, “Employment Statistics”
(Status of the employment/labour market (2))
More and more corporations, mainly manufacturers, reported a rapidly growing feeling of excessive employment in the
first half of 2009, but the feeling gradually subsided after that point. However, it is becoming stronger again in the second
quarter of 2011.
The proportion of establishments that had implemented some form of employment adjustment was nearly 50% in the
second quarter in 2009. In particular, the proportion decreased after recording 70% in the manufacturing industries.
However, the trend is reversing in 2011.
The number of people covered by the employment adjustment subsidy program took a downward trend after the second
half of 2009. It has been decreasing after a sharp rise in March and April 2011.
In addition, a sharp rise in the yen value will likely accelerate overseas production transfers in materials/parts industries,
which play core roles in supply chains, leading to the loss of domestic job opportunities in manufacturing industries. For
this reason, the government needs to quickly take employment-security actions.
[Chart 1-23: Changes in the D.I. of employment conditions]
(Percentage point (“insufficient” m inus “excessive”))
← Excessive insufficient→
20
All industries surveyed
Manuf acturing industries
0
-20
-40
ϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩ (Quarter)
00
0䠍
02
03
04
05
06
07
08
09
10
11
(Year)
Source: Bank of Japan, “Short-term Economic Survey of Enterprises in Japan (Tankan)”
[Chart 1-25: Business closure plans received in relation to employment adjustment
subsidy (provisional)]
(Number of business
[Chart 1-24: Trend of the proportion of establishments that implemented employment adjustment]
(%)
(Persons)
80
establishments)
3,000,000
All industries surveyed
70
90,000
80,000
Manufacturing industries
60
2,500,000
50
2,000,000
40
70,000
60,000
50,000
1,500,000
40,000
30
1,000,000
20
30,000
20,000
500,000
10
0
10,000
0
0
ϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩϪϫϨϩ(Quarter)
00
01
02
03
04
05
06
07
08
09
10
11
08.6
08.9
08.12
09.3
09.6
Number of employees (left axis)
(Year)
Source: Ministry of Health, Labour and Welfare, “Survey on Labor Economy Trend “
FY2007
11
09.9
09.12
10.3
10.6
10.9
10.12
11.3
11.6
Number of business establishments (right axis)
Remarks: The figures for December 2008 and thereafter include the number of accepted business closure plans
related to the emergency employment stabilization subsidy for SMEs (established on December 1, 2008).
The applicable requirements have been eased since December 2009.
Source: MHLW data
(Policy actions to deal with current employment situation)
To address such employment situations appropriately, the government is steadily working on “Step 2” of New Growth Strategy in
line with the “2011 Employment Strategy: Basic Policy” drafted by the government, and is also pushing ahead with full-fledged
“Employment and Human Resources Strategies” as “Step 3.” To be more specific, the government is pushing ahead with
comprehensive employment/labour policies with the FY2011 budget, etc. by expanding employment/labour-related supportive
measures under the three policy pillars of “connecting,” “creating,” and “protecting” job opportunities.
(Note)The box with solid lines represents a project financed with the FY2011 budget, while the box with dotted lines shows a policy action already financed with FY2010 “Contingency Reserve for
Economic Crisis Response and Regional Revitalization” or FY2010 supplementary budget.
“Connecting”
job
opportunities
{ Creating the Job Seekers
Support Program
{ Employment support services for new
graduates or non new graduates
new
[¥77.5 billion]
Extending the “Emergency Human Resource
Development Program” until the “Job Seekers
Support Program” is formally launched
[¥11 billion]
• Assigning university graduates Job supporters at Hello Work
• Enhancing collaborations with universities to push ahead with cooperation in holding jobinterviewing sessions to provide job opportunities
• Pushing ahead with the utilization of “Hello Work” Facilities Dedicated to Support for the
Employment of New Graduates or “Headquarters for Supporting Employment of New Graduates
(consisting of Hello Work, local governments, labour circle, educational circle as members, etc.)”
Launching a new permanent program that provides
jobless people with free vocational training sessions
and livelihood support benefits during the training
sessions if they are not covered by the employment
insurance.
{ Extension of the Emergency Human
Resource Development Program
[Supplementary budget: ¥100 billion]
continued
{ Conducting model project of continued
the Personal Support
[¥3.9 million]
Service
Assigning 80 job-hunting support navigators that
provide job-related counseling or job placement
services to local governments that are working on
model project of personal support service
{ Project to help new graduates obtain jobs
[Reserve fund: ¥12 billion; supplementary budget: ¥49.5 billion]
Creating “a cash incentive scheme to increase the employment of graduates within three years from
their graduation (under the same terms as those for new graduates)” and “a cash incentive scheme
for trial employment of graduates within three years from their graduation” (financed with reserve
fund) and extending these programs by the end of FY2011 by spending supplementary budget; and
creating “a cash incentive scheme for non-new graduates employment” (financed with
supplementary budget)
{ Conducting model project of personal
support service
[Reserve fund: ¥2.9 billion]
Conducting personal support services as a model
project
{ Enhancing employment safety-net capabilities and strengthening vocational training programs for fostering human resources development underpinning growth areas
continued
[¥31.7 billion]
Making use of wide variety of training institutions include the school education system, such as universities or community colleges, to push ahead with vocational training programs in growth areas
{ Pushing ahead with
Job-Card System
“Creating” job
opportunities
“Protecting” job
opportunities
continued
[¥10.7 billion]
{ Fulfilling women’s
wishes for employment
continued
[¥12.5 billion]
{ Expanding the project to create jobs in priority fields
[Reserve fund and supplementary budget: ¥100 billion for each]
Extending policy actions for new employment opportunities creation and human resources
development in growth fields, such as long-term care services by the end of FY2011
{ Employment adjustment subsidy
[¥392.7 billion]
continued
Granting the employment adjustment subsidies as well as the emergency employment
stabilization subsidies for SMEs to support for companies’ efforts to maintain jobs
{ Enhancing the employment insurance system
expansion
{ Employment Measures for
continued { Employment support services continued
Older People
for persons with disabilities [¥23.3 billion]
[¥30.3 billion]
{ Creating of support program for human resource development in growth areas
[Supplementary budget: ¥50 billion]
Providing funds (¥200,000 at maximum) to cover actual costs of vocational training if the employer hires new workers, or
relocate manpower from other areas, in health, environment, and other related manufacturing processes and the employer let
employees undergo vocational training in locations other than their workplaces.
{ Relaxation of eligibility requirements for employment
adjustment subsidies
[Supplementary budget:
Amendment to the current framework]
Relaxing eligibility requirements for companies suffering from delayed production due to a sharp rise in the yen value
* Estimated to yield economic impacts worth ¥38.3 billion
[¥214.7 billion (unemployment benefits: ¥2,029.8 billion)]
• Raising the upper/lower limits of the daily basic allowance (e.g., raising the lower limit from the current ¥1,600 to ¥1,856)
• Raising the benefits ratio of the reemployment allowance (e.g., If the benefits period still remains 2/3 or more of the overall benefits period, the benefits ratio will be permanently raised from the current 30% (regular level in accordance with the
applicable law) or 50% (temporary level) to 60%)
{ Supporting SMEs to raise the minimum wage
new
[¥5 billion]
• Setting up one-stop counseling desks nationwide (167 locations) to provide business management and labor-related counseling services for SMEs working on raising their wages
• Providing subsidies if nationwide trade organizations in 13 industries, where raising the minimum wage will pose significant impacts, are working on their projects to raise the wage level (¥20 million at maximum, 15 organizations)
• Providing subsidies to the local SME with the minimum wage of ¥700 or lower if it systematically raises the wage level to ¥800 or more and introduces new equipment that will contribute to improving labor efficiency (the subsidy
ratio: 1/2).
{ Promoting workers’ mental health measures
continued
[¥3.6 billion]
12
(Employment/labour measures in response to the Great East Japan Earthquake)
To promote employment support and job creation for the disaster victims of the Great East Japan Earthquake on March
11, 2011, the government has set up the “Conference on promotion of employment support and job creation for the
disaster victims”, and formulates the overall countermeasures across the ministries and strongly pushes ahead with the
measures.
On April 5, 2011, the government decided its basic guidelines “to support the disaster victims’ employment and living by
Japan becoming one,” and named the overall project as “’Japan as One‘ Work Project”. In line with this basic guidelines,
the government is taking various policy actions by sorting them out as Phase 1, (defined as tentative emergency overall
countermeasures), as well as Phase 2 (comprehensive countermeasures through supplementary budgets and new
legislation).㻌
[Chart 1-26: Employment/labour measures in response to the Great East Japan Earthquake]
Phase 2: “’Japan as One’ Work Project”
Phase 1: “’Japan as One’ Work Project”
- Supporting your employment and living through “Japan as One” (The conclusion on the countermeasures Phase 1 decided at the “Conference on promotion of employment support and job
creation for disaster victims”)
- Supporting your employment and living through “Japan as One” (The conclusion on the countermeasures Phase 1 decided at the “Conference on promotion of employment support and job
creation for disaster victims”)
1. Basic guidelines
April 5, 2011
“’Japan as One’ Work Project”
The disaster victims’ employment and living will be supported by “Japan becoming one”, through measures listed below:
1) Creating employment opportunities for the disaster victims and utilizing the companies and resources affected by the
disaster through reconstruction projects
2) By carefully taking into consideration of the disaster victims and local areas accepting the disaster victims, supporting
the employment in areas outside the affected sites for those who desire.
2. Tentative, emergency overall countermeasures
Steadily creating jobs through
reconstruction projects , etc.
{
㻌x
Promotion of reconstruction projects
Restoration of infrastructures, clearing of
rubbles, construction of provisional housing,
and repairing and rebuilding of housing
affected by the disaster
‹ Expansion of “Project on Job Creation
in priority areas” and “Emergency Job
Creation Project”
Adding the “areas to deal with the earthquake
disaster” to the Priority Area of the “Job
Creation in priority areas”
㻌 x Abolishing the 1-year restriction on
employment period
㻌x
‹ Measures to prioritize the employment
of people from the local areas
Promoting to secure orders to local
contractor companies in the tentative
restoration projects
㻌 x Requesting that private employers to submit
the job offer for restoration projects to Hello
Work
㻌 x Providing incentives through the provision of
employment subsidies targeting the
unemployed affected by the disaster
㻌x
Constructing a system to match the
disaster victims and jobs
(1) Strengthening the function of matching disaster
victims and jobs in the affected areas
{
Creating “Japan as One” Job Council
By Prefectural Labour Bureau taking the lead, setting
up the councils comprising of the local governments,
outpost agencies of the Japanese government and the
relevant organizations on the prefectural basis
{
Expanding the functions of “Japan as One”
Hello Work
㻌x
Providing on-site counseling services to evacuation
areas
㻌 x Assisting those engaged in agricultural/forestry/fishery
workers and self-employed workers
㻌 x Expanding and conducting vocational training flexibly
{ Employment support in the areas affected by the
disaster
㻌 x Holding joint company information sessions targeting
the disaster victims
㻌 x Requesting industry organizations to explore
companies active in hiring disaster victims
(2) Strengthening the functions of matching disaster
victims and jobs outside the affected areas
㻌 x Providing houses as well as local life information
㻌 x Securing job opportunities for
agricultural/forestry/fishery workers and self-employed
workers
Overall countermeasures according to the supplementary budgets
and new legislations
“’Japan as One’ Work Project”
Steady creation of employment through
reconstruction projects (¥2,544 billion;
estimated to create job opportunities for
200,000 workers)
‹ Promotion of reconstruction projects
Maintaining/securing employment
of the disaster victims
‹Expanding the employment
adjustment subsidies
㻌 x Expanding the exceptional cases currently
implemented in the five prefectures to the areas
in further need
㻌 x Taking new exceptional measures for
businesses outside affected areas but having
close business relationships with those in the
affected areas
{ Assisting the management reconstruction of
SMEs, etc.
{ Preventing the cancellation of job offers of
new graduates, etc.
㻌 x Implementing strategies of preventing the
cancellation of job offers of new graduates who
were affected by the disaster
㻌 x Assisting the employment of affected
students by expanding the subsidies for the
employer who hire them
㻌 x Employment by the local governments through
“project on job creation in priority areas”
㻌 x Exploring and publicly announcing companies
hiring new graduates in the affected areas
{ Dealing with dismissals, rejection of the extension
of contracts and terminating the contracts of
dispatched workers
3. Informing the disaster victims for sure through effective public relations
activities
April 27, 2011
㻌 x Disaster recovery of public civil engineering facilities
(rivers, seacoasts, roads, ports, sewage lines, etc.),
airports, public housings, water supply systems,
industrial water supply systems, waste disposal
facilities, etc.
㻌 x Construction of disaster public housings, and
repairing public civil engineering facilities, etc.
㻌 x Restoration support for agricultural lands/facilities,㻌
coastal forests, forest lands, fishing ports/boats,
aquaculture facilities, etc.
㻌 x Disaster recovery of medical/nursing-care㻌
/childcare/disability facilities or occupational skills
development facilities
㻌 x Disaster recovery of school facilities, etc.
㻌 x Emergency restoration of the administrative
functions of municipalities
㻌 x Restoration of fire-fighting facilities
㻌 x Construction of temporary housings
㻌 x Disposal of disaster wastes (clearing of rubble, etc.)
‹ Expansion of the job creation fund
projects
㻌 x Increase the funds for the project on job creation in
priority areas and expand them
Assistance for disaster victims’ new
employment (¥15.8 billion; estimated to
underpin employment for 60,000 workers)
Maintaining employment and securing
stability in life for the disaster victims
(¥1,736.9 billion; estimated to underpin
employment for 1.46 million workers and
stabilize livelihood for 430,000 people)
‹ Expansion of subsidies for companies that ‹ Expanding the employment adjustment
hire disaster victims
Subsidies
㻌 x Creating new subsidy program for the employment of
disaster victims, etc. (Affected People Employment
Development Subsidy)
{ Expanding vocational training
㻌 x Expanding public vocational training in areas related to
construction etc.
㻌 x Exempting the fees of vocational training for school
graduates and employed people
{ Intensifying prevention of occupational accidents
on reconstruction sites
㻌 x When businesses are closed during the special eligible
period (1 year), employers are eligible for a maximum 300
days of subsidies payments
㻌 x Extending temporary measures (Persons insured for a
period of less than six months are eligible)
{ Exemption of various insurance premiums
㻌 x Dispensing with insurance premiums for medical
insurance, long-term care insurance, labour insurance,
employees㻌 pension insurance , etc.
‹ Supporting for the management
reconstruction of the management of
SMEs, farmers and fishermen, and the
{ Conduct on-site counseling services at evacuation
centers and develop employment opportunities
environmental health industry, etc.
corresponding to the needs for disaster victims
‹ Expansion of the extended payments of
㻌 x Strengthening Hello Work’ on-site counseling services
employment insurance benefits
on employment, and increasing in the number of special
㻌 x Further extending the number of days during which
staff promoting the development of job opportunities
{ Supporting for job seekers in wide area
㻌 x Increasing the budget on the expenses for having
interviews and relocation outside affected area
{ Employment support for newly graduates in
affected areas
payments for employment insurance benefits are paid in
addition to the present case-by-case extended payments
of employment insurance benefits (60 days)
{ Encouraging claims for reimbursement for
unpaid wages and making the reimbursement
quicker payments
㻌 x Increasing the budget and simplifying the application
procedures
The impact of job creation and support for employment through the Countermeasures Phase 2
Economically, a total of 4,296.6 billion yen is generated. Jobs are created for around
200,000 people. Over 1.5 million people’s employment is supported.
13
Chapter 2: Challenges and Prospects Facing Japan’s Monodzukuri Industries
Section 1: Manufacturing industries in Japan are facing structural changes in the global economy㻌
(International structural changes)
Emerging economies are enjoying significant growth, but Japan fails to take advantage of such growth. On the
other hand, as competition to acquire resources is getting stiffer owing to growth of emerging economies,
resource constraints are further intensified.
[Chart 2-1: Growth of Asian emerging economies, and increase
in value of exports by major countries]
㸦ᖺ㸻㸯㸧
[Chart 2-2: Trend of crude oil prices and consumption volume]
(1,000 barrels per day)
㸦ࣂࣞࣝ㸭᪥㸧
South Korean
㡑ᅜ㍺ฟ
exports
German exports
ࢻ࢖ࢶ㍺ฟ
USA
exports
⡿ᅜ㍺ฟ
Japanese exports
᪥ᮏ㍺ฟ
China,
NIEs, ASEAN GDP
୰ᅜ࣭1,(㹱࣭$6($1
*'3
USA
and EU15
⡿ᅜ࣭(8
*'3GDP
(US
dollars per barrel)
䠄㼁㻿䝗䝹㻛䝞䝺䝹䠅
USA
⡿ᅜ
Russia
ࣟࢩ࢔
㸦ᖺ㸧
(Year)
Source: Global Trade Atlas, World WDI
Japan
᪥ᮏ
India
࢖ࣥࢻ
China
୰ᅜ
Brazil
ࣈࣛࢪࣝ
EU
(15)
(8㸦㸧
WTI
oil price
:7,ཎἜ౯᱁
Other nations
ࡑࡢ௚ࡢୡ⏺
in
the world
South
㡑ᅜ Korea
(Year)
㸦ᖺ㸧
Source: BP "BP㻌 Statistical Review of World Energy June 2010"
14
(Manufacturing industries supportive measures in foreign nations)
Foreign nations are actively making efforts to advance their manufacturing industries. They aim to
simultaneously achieve the two goals of addressing limited resource availability and enhancing the competitive
edge of their manufacturing industries in the medium and long run by acquiring next-generation technologies
mainly in environment and energy saving fields.
[Chart 2-3: Examples of foreign governments’ supportive measures for manufacturing industries]
Main policies that contribute to enhancing the competitiveness of
manufacturing industries
USA
Core policy areas
{ National Export Initiative (March 2010)
¡ Green New Deal
Doubling exports in five years through expanding domestic investment
Support policy for innovation
and thereby creating job opportunities for 2 million workers
programs in environment and energy
fields
{ Cabinet decision on Electromobility National Strategy (May 2011) ¡ Electric car national platform
Fostering domestic firms as “lead
Creating the automobile tax exemption program for electric cars for ten
years in order to disseminate electric cars. Taking enhancement
market players” through supporting
Germany
R&D on electric cars
policies by spending 1 billion Euros by FY 2013 in addition to 500
million Euros for financing electromobility-related R&D projects which
were decided in 2009.
South
Korea
China
{ Framework Act on Low Carbon, Green Growth (April 2009)
Spending more than 50 trillion won on low carbon, green growth
areas, including manufacturing industries, for 4 years until 2012,
aiming to create job opportunities for 950,000 workers
{ Korea-EU FTA tentatively becoming effective (July 2011)
¡ Fostering the 10 major core
materials industries
¡ Green New Deal (Four main
national policies)
Creating job opportunities by
securing growth potentials through
low carbon, new energy policies
{ The 12th Five Year Plan (2011)
Enhancing the competitive edge of innovative industries by
designating (1) IT, (2) energy saving and environment protection, (3)
new energy, (4) bio, (5) high-performance manufacturing equipment,
(6) new materials, and (7) new energy cars as strategic industries
¡ Energy-saving, New energy
Automobile Industry Development
Plan:
Fostering large corporations that
manufacture EVs, etc.
15
(Aiming at “profitable Monodzukuri”)
Advanced manufacturing industries are developing in South Korea because the nation is gaining a comparative
advantage in intermediate commodities. Overseas firm’s M&A toward domestic manufacturers are also
increasing. Japan’s competitive edge is taking a downward trend. Japanese manufacturers should actualize
“profitable Monodzukuri” practices that create value-added products from technological advantages.
[Chart 2-5: Chinese/Korean firm’s M&A toward
Japanese manufacturers]
[Chart 2-4: Comparative advantage index]
Intermediate
୰㛫㒊⣲ᮦ
parts/materials
䠄௳䠅
18
᭱⤊〇ရ
Final
products
16
᪥ᮏ
Japan
90
0.97
1.34
00
1.11
14
1.13
09
1.30
16
firms
Korean
㡑ᅜ௻ᴗ
firms
12
1.00
10
China and
୰ᅜ䞉㤶 
Hong
Kong
8
0.68
90
0.67
00
1.59
09
1.62
0.80
Chinese
୰ᅜ௻ᴗ
1.50
6
6
4
2
Germany
䝗䜲䝒
0
90
1.13
1.07
00
1.14
1.10
09
1.12
00
1.20
01 02 03 04 05 06 07 08 09 10 䠄ᖺ䠅
Source: Data come from RECOF Data materials.
[Chart 2-6: IMD international competitiveness ranking] 㻌 㻌 㻌 㻌 㻌 㻌
South㡑ᅜ
Korea
90
0.90
1.39
00
1.24
0.90
USA
⡿ᅜ
90
0.96
1.17
00
0.94
1.20
09
1.07
2.0
1.0
0.0
Rank
䠄఩䠅
0.98
09
1.39
㻝
1.03
0.0
1.0
2.0
Remarks: Comparative advantage index (in the case of intermediate goods) =
(intermediate goods export/total export)/(intermediate goods export in
the world/total export in the world)
Source: RIETI-TID 2010
16
᪥ᮏ
Japan
USA
⡿ᅜ
Germany
ࢻ࢖ࢶ
China
୰ᅜ
South
㡑ᅜ
Korea
䠄ᖺ䠅
Source: IMD "WORLD COMPETITIVENESS YEARBOOK"
Section 2: Trend of Japan’s manufacturing industries after the Great East Japan Earthquake
(Damage caused by the Great East Japan Earthquake (1))
The Great East Japan Earthquake on March 11, 2011, has brought about significant damage in the Tohoku and Kanto
areas. Production disruption at affected firms has had extensive negative impacts on production activities in a wide
variety of companies through supply chains surrounding the manufacturing industries. Since a lot of firms do not fully
understand the supply chains they belong to, negative impacts have spread out further.
[Chart 2-8: Impacts of earthquake damage on production activities]
Secondary damage
Primary damage
[Chart 2-7: Total damage caused by the
Great East Japan Earthquake]
Categories
Damage
Buildings, etc.
(housing/housing sites, stores/offices,
factories, machines, etc.)
Approximately
¥10,400 billion
Lifeline facilities
(water supply, gas, electricity,
communications, broadcasting facilities)
Approximately
¥1,300 billion
Social infrastructure
(rivers, roads, ports, sewage systems,
airports, etc.)
Approximately
¥2,200 billion
Agriculture/forestry/fishery-related
(farmland/agricultural facilities, forest
land, fishery-related facilities, etc.)
Approximately
¥1,900 billion
Earthquake
Damage, etc.
Parts/materials
manufacturers
<Suspended>
Supply
disruption
Processing
manufacturers
<Suspended>
Supply
disruption
Final products
manufacturers
<Suspended>
Decreased
demand
Tertiary damage
Parts/materials
manufacturers
<Production
cutback>
Source: METI data
[Chart 2-9: Reasons for difficulties to procure raw [Chart 2-10: How much corporations understand the
situation of their supply chain (their suppliers)]
materials, components and parts]
Materials industry (n = 26)
Processing industry (n = 22)
Others
(Education facilities,
healthcare/medical/welfare related
facilities, waste treatment facilities, or
other public facilities)
Approximately
¥1,100 billion
Grand total
Approximately
¥16,900 billion
Source: Cabinet Office disaster prevention
group’s data
Suppliers have Supplier’s
damaged by suppliers have
the earthquake damaged by
the earthquake
Source: METI, “Emergency Survey on Actual Industrial Conditions
after the Great East Japan Earthquake” (April 2011)
Damage to
Distribution
network
17
Affected by
rolling
blackouts
Others
(n=2,851)
Other 1.2%
Understand more details
about their supply chain
than their supplier’s
parts/materials suppliers
22.4%
Understand
their supplier's
parts/materials
suppliers
29.7%
Only
understand
their suppliers
46.7%
Source: METI data (January 2011)
(Damage caused by the Great East Japan Earthquake (2))
Some affected firms enjoy high market share in the world and supply highly important parts/materials that play
core roles in the supply chains. Even in districts without direct earthquake damage, production or economic
activities have stagnated, bringing about extensive repercussions to corporations at home and abroad.
[Chart 2-11: Examples of damage by the Great East Japan Earthquake have spread out across the supply chain]
Coastal industrial Area
(affected by the earthquake)
Ethylene
Materials
{ Company V (Plant v), etc.
{ The company already
resumed operations in
May.
[Share]: World share
Hydrogen peroxide
solution
{ Company C (Plant c),
etc.
{ Plant c was
undergoing periodic
repairs as scheduled
and resumed
production at the end
of June.
Graphite [90%]
(Battery negative-electrode materials)
{ Company D (Plant d) [48%], etc.
{ Production equipment was restored
immediately after the earthquake
damage. The company procured raw
materials and resumed production.
Silicon wafers [66%]
Special rubber (EPDM)
Semiconductors
Lithium ion batteries
Intermediate
parts/materials
{ Company G (Plant ga) [20%], Company H (Plant
h) [18%], etc.
{ A lot of plants have stopped production.
Currently, domestic plants are producing
approximately 90% of the normal output.
Companies in the recovery process will resume
operations when they are ready to do so.
{ Company A (Plant a) [33%
(company total)], Company B
(Plant b) [29% (company total) ],
etc.
{ Plants with a large market share
temporarily stopped production.
Production facilities are partially
recovered at present and have
resumed operations, posing
negative impacts on overseas
firms as well.
{ Company E (Plant e), etc.
{ Production equipment was restored.
The company already resumed
production in May.
Final products
Ultrathin electrolytic copper foils
[100%]
{ Company W (Plants wa, wb, and
wc) [20%], Company X (Plant x), etc.
{ Production was suspended owing to
partial damage to plants and
negative impacts of planned outage,
but they have resumed production in
series.
Automobiles
{ Domestic production: Approximately ¥57
trillion
{ Approximately 1 million domestic workers
{ The current production is standing at 50%–
80% of the normal output. Production has
been recovering since June, and is
estimated to return to the normal level
around October to December.
{ Company L (Plant l)
[Microcomputers: 30% (company
total)], Company M (Plant m) [NC
chips: 50%], etc.
{ Company L (Plant l) is scheduled
to resume production in early
June, much earlier than the initial
schedule.
LCD TVs and smartphones
{ Some parts manufacturers have suffered earthquake damage, but
such damage has no problems to their production.
Home appliances and electronics
{ Domestic production: Approximately ¥31 trillion
{ Approximately 750,000 domestic workers
{ A lot of companies have already resumed operations.
ITO target materials
(Transparent electrode base
materials)
{ Company G (Plant gb) [40%], etc.
{ Production is increasing in series.
The company has been running on
full capacity production from the end
of July.
Synthetic quartz crystals [100%]
{ Company I (Plant i) [50% (company
total], Company J (Plant j) [22%
(company total) ], etc.
{ Upstream work processes are
resuming operations, while
downstream work processes will shift
to full capacity production in series.
LCD panels
<Small- and medium-sized LCD panels> [Products
for smartphone: Approximately 70%]
{ Company P (Plant p), Company Q (Plant q), etc.
{ Production has stopped owing to earthquake
damage. They resumed production fully at the end
of April.
<Large LCD panels>
{ Company R (Plant r), etc.
{ The company started resuming operations at the
end of April.
Industrial machineries
{ Domestic production: ¥22 trillion
{ Approximately 860,000 domestic
workers
{ A lot of plants resumed production
after suffering earthquake damage.
Source: Extracts from the documents distributed at the third meeting of the Basic Policy Subcommittee, Industrial Structure Council (May, 2011), METI.
18
(Impacts of electricity restraint and higher electric power cost)
The nuclear power station accident resulting from the Great East Japan Earthquake has resulted in a
constrained electricity supply. If operating rates at nuclear power stations decline and alternative power sources
are used, a rise in electric power cost will push up production cost across industries, possibly posing negative
impacts on the international competitiveness in many industries.
[Chart 2-12: Impacts of electricity restraint on
corporate activities]
[Chart 2-13: International comparison of industrial-use electricity tariff]
(US
cent/kWh)
䠄⡿䝉䞁䝖㻛㼗㼃㼔䠅
Company
Impacts on business activities
Japan
South
Korea
USA
France
Germany
UK
Italy
Source: METI, “FY 2010 Power Source Site Selection Promotion Adjustment
Project (Survey on Power Utility’s Cost Structure in Europe and the US)”
[Chart 2-14: Increased production cost as a percentage to operating surplus]
䠄䠂䠅
Precision equipment
Other manufacturing
industrial products
Transportation
equipment
Electric machineries
General machineries
Metal products
Nonferrous
metal products
Steel products
Ceramic, soil, and
stone products
Plastic products
Non-manufacturing
industries
19
Oil/coal products
Chemical products
Pulp/papermaking, paper
boards, and processed paper
Source: METI data
Lumber, wood products,
and furniture
Production
suspension
due to voltage
reduction
Textile products
Higher cost
due to
increased
private power
generation
Foods and beverages
Higher cost
due to shift
adjustments
Mining
Impacts on
business
performance
As massive amounts of significant
electric power is consumed for
manufacturing products, restrictions on
Chemical
electricity consumption will directly lead
firm A
to decreased production. A 15%
electricity consumption restriction will
probably send down corporate earnings
by more than 20%.
The company is planning nonworking
day shifts or acceleration of production
speed in order to mitigate limited
Automaker
electricity availability, but it needs to
C
make adjustments with the labor union
or increase the wage cost, such as
extra pay.
The company has been facing stiffer
competition with other manufacturers in
Asia. If the company starts private
Chemical
power generation to address limited
firm D
electric power availability, the cost will
double, posing significant negative
impacts on corporate earnings.
Even instantaneous voltage reduction
will lead to blackout in plants. It will
take at least 4 hours to recover from
Nonferrous
the blackout. Work-in-progress goods
metal firm
will become scrap. Plant workers need
G
to readjust measuring equipment every
time a blackout occurs, significantly
raising costs.
Source: Chart developed by METI based on
2005 Interregional Inter-industry Relations Table.
(Impacts of the nuclear power station accident)
The nuclear power station accident has yielded anxieties about Japanese brands, such as “high quality” and
“safety.” It has also had negative impacts on business activities of a lot of firms, such as delayed procurement
of materials and increased cost on radioactivity inspections.
[Chart 2-15: Impacts on Japanese brands (by nation)]
70
[Chart 2-16: Impacts of the nuclear power station accident on
corporate activities]
Before the
㟈⅏๓
earthquake
䠄%䠅
After the
㟈⅏ᚋ
earthquake
64
60
50
50
43
38
40
43
34
38
42
0
10
㸣㸧
20
30
We stopped product deliveries because our
suppliers are unable to procure their
materials and stopped their plant
operations.
24.3
Our production has decreased because we
are unable to procure our materials from
hazard zones.
30
20.0
16.4
Higher cost on radioactivity inspections
20
Boycotting or product delivery refusal owing
to harmful rumors
10
14.6
Higher cost due to changing material
suppliers and shifting away from material
suppliers in hazard zones
0
Overall average
USA
(n = 108)
UK
(n = 109)
China
(n = 109)
Interbrand Japan, “Quantitative Survey on ‘Impacts of Earthquake
and Nuclear Power Station Accident on Japanese Brands
Overseas’”
Remarks: Interbrand Japan surveys how consumers in the US, the UK, and
China have changed their recognition toward Japanese brands in
five industrial categories: “automobiles,” “consumer electronics,”
“cosmetics/toiletries,” “foods/beverages,” and “apparels.” The
company calculates the percentage of respondents choosing the
answer option “I think in that way very much” or “I think in that
way” in terms of five brand images: (1) trustworthiness, (2) safety,
(3) high quality, (4) stylishness, and (5) familiarity. The chart above
shows the average points of the five industries and the five brand
images.
Production base in hazard zones has
stopped operations
Source:
It is difficult to acquire manpower because
our workers have to evacuate.
9.3
2.1
1.6
㹬 㸧
Source: Chart developed by METI based on Teikoku Databank’s survey
(August 2011).
20
(Quick recovery of supply chains, and actions on electricity restraint (1))
Japanese manufacturers have recovered from earthquake damage at a quicker pace than expected, through
serious corporate effort and collaboration among companies.
[Chart 2-17: Production level at disaster-affected production bases
(June 2011 survey)]
Production level restoration schedule at disaster-affected production bases
Overall
manufacturing
industries
(n = 91)
July to
September 2011
October to
December 2011
January to
March 2012
Materials
industries
(n = 60)
Overall
manufacturing
industries
April 2012 at
earliest
Materials
industries
Processing
industries
Uncertain
Processing
industries
(n = 31)
Exceeding the pre-earthquake level
100% of the pre-earthquake level
Approximately 80% of the pre-earthquake level
Approximately 50% of the pre-earthquake level
Approximately 30% of the pre-earthquake level
Production is not resumed yet.
Source: METI, “Emergency Survey on Actual Status of Industries
after the Great East Japan Earthquake (2)”
[Column: Quick recovery through inter-company collaboration]
Renesas Electronics Corporation’s core plant, Naka Plant,
suffered earthquake damage, posing serious negative impacts
on supply chains of automobiles, electric appliances, and
machinery. However, aiming to resume production as soon as
possible, business partner automakers and electric appliance
manufacturers sent up to 2,500 workers a day to cooperate with
Renesas workers. As a result of their recovery work by
maximizing the effects of their teamwork efforts, Renesas has
quickly recovered from earthquake damage, much quicker than
initially scheduled.
Naka Plant: Changes in recovery plan
March
April
Show our hidden strength! We will get together to resume operations in June.
-Our customers all over the world are waiting for us-
May
June
July
August
September
Resuming
production on
September 1
Infrastructures recovery
Initial recovery plan
(as of March 21)
Recovery plan as of
March 28
Recovery of production equipment
Trial production and quality check
Infrastructures recovery
Resuming
production on
July 15
Infrastructures recovery
Recovery of production equipment
Trial production and quality check
Resuming
production on
June 15
Infrastructures recovery
Recovery plan as of
April 22
Recovery of production equipment
Trial production and quality check
Resuming
production on
June 1
Infrastructures recovery
Actual
performance
Wafer production
200 mm production lines: June 1
300 mm production lines: June 6
Recovery of production equipment
Trial production and quality check
21
Wafer production
Up to 2,500 workers a day are
giving a helping hand,
leading to a much quicker
recovery from earthquake
damage than initially scheduled.
Wafer production
Wafer production
(Quick recovery of supply chains, and actions on electricity restraint (2))
As recovery of affected production bases has restored supply chains, production level at unaffected plants has
also recovered quickly. Manufacturers have overcome electricity restraint this summer by making serious
electricity-saving efforts.
[Chart 2-18: Production level at unaffected production bases
(June survey)]
Production Level Restoration Schedule
Overall
manufacturing
industries
(n = 137)
July to
September 2011
October to
December 2011
Materials
industries
(n = 89)
April 2012 at
earliest
Overall
manufacturing
industries
Materials
industries
Processing
industries
Uncertain
Processing
industries
(n = 48)
Over the pre-earthquake level
100% of the pre-earthquake level
Approximately 80% of the
pre-earthquake level
Approximately 50% of the
pre-earthquake level
Source: METI, “Emergency Survey on Actual Status of Industries after the Great East Japan Earthquake (2)”
[Column: Electricity-saving efforts through nonworking day shifts]
The government requested companies to reduce their electric power consumption, anticipating tight electricity supply in the
summertime. In response to this, electricity consumers took actions in line with their own characteristics or industry’s
characteristics. Automakers decided to alter their nonworking days to Thursday and Friday on weekdays from July to
September, shifting away from Saturday and Sunday on which electricity consumption is relatively low. Automakers have
achieved electricity-saving outcomes by making serious efforts to gain an understanding of their staff members and local
communities in terms of a lot of problems related with childcare and daily commuting.
㻌
22
(Industrial hollowing-out is becoming highly likely (1))
After the Great East Japan Earthquake, the domestic business environment further deteriorated, as some
industrial analysts refer to it as “six problems.” Restrictions on electricity consumption or higher electricity tariff
will have significant impacts on overseas transfer of supply chains. In addition, approximately 40% of
respondent firms that procured materials/parts from overseas substitutive suppliers are planning to continue
overseas procurement in the future. It is worrying that the Great East Japan Earthquake may trigger further
hollowing-out of domestic industries.
[Chart 2-20: Possible impacts of electric power consumption restrictions or
higher electricity tariff on overseas transfer of supply chains]
[Chart 2-19: Possibility of supply chain overseas transfer
owing to the Great East Japan Earthquake]
No response
4%
Other
9%
Overseas
transfer is less
likely
18%
0
20
40
Electricity consumption
restrictions or unstable
electricity supply will have
negative impacts.
60
80
䠄䠂䠅
72.6
Higher electricity cost will
have negative impacts.
57.5
䠄䡊=113䠅
Source: METI data (May 2011)䠅
Overseas
transfers may
be accelerated
69%
[Chart 2-21: Post-recovery suppliers of affected firms]㻌
Source: METI, “Emergency Questionnaire on Supply Chain Restoration and
Industrial Hollowing-out after the Great East Japan Earthquake”
(May 2011)
Getting back from substitutive
suppliers (at home and abroad) to
original suppliers (at home)
Overall manufacturing
industries (n = 36)
23
Continuing to trade with
substitutive suppliers at home
Materials industry
(n = 22)
Continuing to trade with
substitutive suppliers abroad
Processing industry
(n = 14
Source:
METI, “Emergency
Survey on Actual
Status of Industries
after the Great East
Japan Earthquake
(2)” (August 2011) 䠅
(Industrial hollowing-out is becoming highly likely (2))
In line with domestic manufacturers’ stronger intentions to transfer production overseas, foreign governments
are making efforts to attract production plants to their home nations. This might accelerate overseas transfers
of companies.
[Chart 2-22: Examples of foreign central/local governments are making active efforts to attract Japanese firms to their home nations]
City A, South Korea
Chemical manufacturer D, South Korea
The city sent a Japanese firm investment invitation mission in May, offering
exemption of corporate tax for 3 years and income tax for 7 years.
City B, South Korea
The company set up a joint venture of secondary batteries in tie-up with a
Japanese firm. It expects that they will be able to successfully invite
corporate investment to South Korea, with Japanese manufacturers starting
production decentralization owing to the Great East Japan Earthquake.
Real estate firm E, Vietnam
The city makes arrangements directly with companies, with the Korea
Trade-Investment Promotion Agency (KOTRA) serving as an intermediary.
It is pushing ahead with inviting enterprises, including corporate mergers
and establishment of joint ventures.
Company E, which manages industrial parks in Vietnam, started to support
overseas business expansion of SMEs affected by the Great East Japan
Earthquake. To enhance the domestic supply chain by inviting parts
manufacturers, the company aims to establish a cluster consisting of
technologically capable SME manufacturers.
City C, China
(Through an official visit to express sympathy for Japanese firms after the
Great East Japan Earthquake) the company officials said, “they came to
know that Japanese firms would accelerate industrial transformation.
This is a chance to invite Japanese firms to China. We would like to make
an appeal that our transportation, hydro power generation infrastructures,
human resources, and technical capabilities are better than other
cities.” 㸧
Source: METI compiled the above information from news reports.
[Chart 2-23: Foreign governments’ invitations for overseas business expansion]
䠘୰ᑠ௻ᴗ䠚
<SMEs>
<Large
enterprises>
䠘 ኱௻ᴗ䠚
13%
18%
We
are invited
(ㅖእᅜ䛛䜙䛾ᾏ
(by foreign
እ㐍ฟㄏ⮴䜢)
government for
ཷ䛡䛶䛔䜛
overseas
business
expansion)
ཷ䛡䛶䛔䛺䛔
We
are not invited.
82%
87%
䠄䡊=57䠅
䠄䡊=85䠅
24
Source: METI, “Survey concerning the impact
of the currently strong yen on industry
(Large manufacturers)” (August 2011) and
“Survey concerning the impact of
the currently strong yen on industry (SMEs)”
(August 2011)
(Aiming to make a significant step forward by recognizing the earthquake damage as an opportunity)
The government should provide a better business environment, including taxation system or economic
partnership so that corporations will smoothly conduct their business activities at home and abroad in the
difficult business environment surrounding Japan’s manufacturing industries.
[Chart 2-25: Examples of TPP outcomes that Japan should seek]
[Chart 2-24: Important policy actions for Japan and regional
development (manufacturing industries)]
0
20
40
60
Quick recovery
from earthquake
damage
Trucks (bound for the US): 25%
(1) Eliminating tariffs
(item: %)
51.8
Anti-deflation
policies
Electric/electronic equipment (bound for
Australia): 5%
Construction machineries (bound for
Australia): 5%
38.4
Energy policies
for achieving
stable supply
Countermeasures
for lower birthrate
Passenger cars (bound for the US):
2.5%
67.3
Taxation system
for corporations
(reduction of
corporate tax, etc.)
Trade promotion
policies
(such as TPP)
Examples of TPP outcomes that Japan should seek
80 䠄䠂䠅
No discrimination in government
procurement for domestic and foreign
suppliers
33.1
26.2
(2) Creating fair rules
Enhancing intellectual property
protection schemes
Prohibiting government intervention into
license agreements
䠄䡊䠙3,107)
26.0
Simplifying the customs clearance
procedures
Source: Teikoku Databank, “Corporate Awareness Survey on Industrial
Hollowing-out” (August 2011)
Source: METI data
25
(Pushing ahead with the New Growth Strategy, and enhancing the global competitiveness under the stronger yen)
Aiming at further progress of the Japanese economy, the government will strive to achieve the New Growth
Strategy and push ahead with technical assistance related with resource-saving and energy-saving
technologies for rare earths, etc. In addition, it will make use of the recent stronger yen to address limited
resource availability through acquiring resource interests and to support M&A of overseas firms.
[Chart 2-26: Outline of the New Growth Strategy]
New Growth Strategy
- Strong Economy, Robust Public Finances, and a Strong Social Security System Targets
2020
 Achieve nominal and real growth in excess of 3% and 2%.
“
 Return consumer prices to a positive increase in FY 2011
“
 Lower the unemployment rate to 3%–4% as soon as
possible
“
7 strategic areas and 21 national strategic projects
Green Innovation
Life Innovation
Asia
Tourism-oriented nation
and local revitalization
Science-and-technologyand IT-oriented nation
Employment and
human resources
Financial sector
Finance is added to strategic areas because it will play important roles in
achieving growth.
Current situation
Sluggish growth
(real growth rate at 1% in the past decade; potential growth rate at 1%)
Trapped in deflation
(consumer price increase rate at 0% in the past 20 years)
Unemployment rate at 5%
Measures for ensuring achievement of the strategy
3 criteria for the adoption of projects
¡ “Demand and job creation” criteria: Place top priority on policy measures with significant
demand and job creation effects.
¡ “Selection and Focus” criteria: Prioritize on truly essential fields and avoid duplication of
similar projects.
- Participation of the people: Open up the public sector and place priority on active
participation by the people.
- Unification of institutional and policy measures: Place emphasis on policy measures
that are expected to generate synergy effects when implemented together with
institutional reforms.
¡ “Optimum option” criteria: Choose optimum policy measures that produce maximum
effects with limited financial resources.
Project timetable management
Creation of new demand and jobs
Area
Demand
creation
Job creation
Environment
(Green Innovation)
¥50 trillion
1.4 million jobs
Health (Life Innovation)
¥50 trillion
2.84 million jobs
Asia
¥12 trillion
190,000 jobs
Tourism
¥11 trillion
560,000 jobs
¡ Timetable management (commitment to successful implementation)
¡ Check on the implementation status and effects through the PDCA cycle
Consistency with the Fiscal Management Strategy
¡ Implementation of the New Growth Strategy consistent with the Fiscal Management
Strategy
¡ Reallocation of the budget with review of the expenditure priorities
Improve predictability in the eyes of the market
Ÿ Induce investment
Source: Excerpt from “Points of New Growth Strategy” on the Prime Minister’s Office website
26
[Column: Emergency Package in
Response to the Yen’s Appreciation]
On August 24, 2011, the Ministry of
Finance announced the “Emergency
Package in Response to the Yen’s
Appreciation” to deal with the rapid
appreciation of the Japanese yen.
By creating the emergency facility for
dealing with stronger yen ($100 billion),
the package aims at (1) stabilizing forex
rates by encouraging conversion of
private sector’s yen fund to foreign
currencies and (2) acquiring overseas
assets through M&A by making use of
the stronger yen, aiming to expand
national wealth in the long run.
METI is also planning to spend some
budget funds to encourage Japanese
firms to acquire foreign firms or overseas
resource interests.
The government currently needs to
prevent the hollowing-out of domestic
industries and simultaneously back up
Japanese firms so that they will draw on
growth of overseas firms.
Section 3: Maintaining/enhancing Japan’s manufacturing infrastructure 㻌
(Companies are expanding their business operations overseas (1))
Japanese manufacturers are actively expanding their business operations overseas to draw on overseas
demand these days, mainly in rapidly growing emerging markets. More and more manufacturers set up
production bases that also serve as sales bases in emerging economies, aiming to capture demand in
emerging markets.
[Chart 2-28: What kind of roles are overseas offices/plants of
Japanese firms’ overseas subsidiaries (in manufacturing
industries) playing (by region)?]
[Chart 2-27: Number of Japanese firm’s overseas subsidiaries
(manufacturing industries)]
(Growth rate on a
year-on-year basis)
(The entire manufacturing
industries: +3.1%)
(Number of firms)
Marketing/
planning
R&D
Design
North
America
Procurement
Europe
China: 1,393
North America: 1,276
Europe: 824
South Korea and Taiwan: 612
Production
Asia
(the whole
of Asia)
Sales
China
After-sales
services,
maintenance
ASEAN 10
North America
(n = 187)
Europe (n = 104)
Source: METI data (January 2011)
Future plan
At this time
At the time of
incorporation
Future plan
China (n = 439)
Source: METI, “Basic Survey on Overseas Business Activities”
27
At this time
At the time of
incorporation
Future plan
At this time
Future plan
Others
(FY)
At the time of
incorporation
At the time of
incorporation
South Korea
and Taiwan
At this time
Overall
management
ASEAN (n = 286)
(Companies are expanding their business operations overseas (2))
In the past, corporations expanded their business operations for “low cost production” purposes in most cases.
However, they are now planning their overseas business expansion mainly to “cultivate the global market” on the
back of a rise in emerging markets. Manufacturers are pushing ahead with overseas production of managerially
important core products as well as transferring core technologies to overseas production bases to enhance cost
competitiveness, but they should take appropriate countermeasures on technical outflow to maintain a
competitive edge in the long run.
[Chart 2-30: Do new or expanded overseas plants
oduce managerially important core products?]
product
[Chart 2-29: Reasons for setting up or produce
expanding overseas plants]
0
10
20
30
40
50
[Chart 2-32: Reasons for
conducting/examining overseas transfer of
core technologies]
No
0
54.7
Cultivating the global
market
Yes
64.9
38.3
42.3
Addressing/supporting
existing business
partners
4.9
5.8
9.1
13.0
Taking
countermeasures on
the forex rate
Invitation or request
from foreign
governments
70 䠄䠂䠅
䠂䠅
63.8
59.6
Addressing low-cost
production
Securing human
resources
60
Projects almost
done (n = 243)
ᐇ᪋῭䜏(n=243)
Projects in the
planning phase
(n = 208)
ィ⏬୰(n=208)
2.1
3.4
20
40
Enhancing cost
competitiveness
[Chart 2
2-31:
31: Have you ever transferred core
c
technologies
technollogies to overseas production bases?]
base
Uncertain
We will
never do so.
Yes, we have.
We might
do so.
41.6
Strong request from
business partners
27.2
Competitors are transferring
their technologies overseas.
R&D on new core
technologies is progressing
in the domestic market.
12.9
5.9
Invitation from foreign
nations
2.5
Others
3.5
Source: METI data (January 2011)
Source: METI data (January 2011)
Source: METI data
a (Janua
(January
anua
ar 2011)
28
2
8
80 䠄䠂䠅
69.8
Expanding the market share
in foreign nations
S
Source:
METI data (January 2011
60
(n=202)
(Monodzukuri in the domestic market (1))
Approximately 40% of the respondent manufacturers said that they “slightly scaled down” or “significantly
scaled down” their domestic production base when setting up or expanding overseas plants, while
approximately 25% of firms said that they shifted their domestic production to high value added products,
suggesting that they are scaling down domestic production bases but increasing domestic production of high
value added products.
[Chart 2-33: Changes in production volume at domestic
production bases when setting up or expanding overseas plants]
[Chart 2-34: Changes in the product mix at domestic production bases
when setting up or expanding overseas plants]
Expanding
domestic
production bases
Significantly scaling 11.0%
Shifting to
high value
added
products
24.7%
down domestic
production bases 8.1%
Slightly
scaling down
domestic
production
bases
30.4%
No change
50.5%
Shifting to other
products with HVA
at the same level
9.5%
Source: METI data (January 2011)
Shifting to
low value
added
products
2.1%
No change
63.7%
Source: METI data (January 2011)
29
(Monodzukuri in the domestic market (2))
Manufacturers have stronger awareness that their domestic base should work on R&D on advanced products.
In addition, manufacturers that actively make capacity investment at home are showing relatively better
performance. In the future, they should enhance their domestic bases through active investment and
employment because domestic bases serve as a source of competitiveness.
[Chart 2-35: Important roles of domestic bases]
0
20
40
Production
(general-purpose
products)
Production
(cutting-edge
products)
36.1
29.3
R&D
Research
51.0
58.7
Companies with
profit growth
(n=229)
43.8
45.2
50.5
47.9
Sales
Design
60 䠄䠂䠅
39.5
25.7
[Chart 2-36: Which will you put higher priority on if domestic
capital investment plan is conflicting with your profit target?]
19.5
12.1
16.6
25.0
27.0
23.0
39.8
Companies with
profit drop
(n=510)
46.8
Putting higher priority on capital
investment plan
Past
㐣ཤ(5䡚10ᖺ๓)
(5–10 years ago)
⌧ᅾ
Present
Future
௒ᚋ(5䡚10ᖺᚋ)
(5–10
years later)
Putting higher priority on profit
estimate
Remarks: Profit growth (or drop) means that operating profit
has increased (or decreased) by 5% or more for the
last 5 years.
Source: METI data (February 2011)
(䡊䠙2,150)
Source: METI data (February 2011)
[Column: Domestic investment and consensus-building are creating competitiveness]
Kureha Corporation sticks to R&D and production at home from long-term perspectives and is working on developing and producing new
materials. This is because the company recognizes it is important to identify characteristics of materials and improve their qualities by
paying due attention to consensus-building with downstream firms. For this reason, although the market is spreading globally, Kureha is
keeping competitiveness by maintaining its mother lines at domestic plants because know-how is concentrated in the mother lines.
An example of new materials created from Kureha’s efforts is binders for lithium ion batteries (materials that bind positive electrode
materials and aluminum foils as well as negative electrode materials and copper foils). Since the company developed the materials
approximately 40 years ago, it has been working on R&D and production tasks from medium- and long-term perspectives. As a result,
Kureha’s new materials have turned into successful materials for binders. Now, the company controls 70% of the world market share of
binders.
30
(Monodzukuri in the domestic market (3))
[Column: Monodzukuri is supported by high-quality employment]
Mirai Industries, Co., Ltd. in Gifu Prefecture shows its respect for employees
by adopting an employment and labor scheme with a lifetime employment
program with a retirement age of 70 years, 140 days off a year, and no
overtime work. It puts emphasis on proposals and self-initiatives of company
staff and has a lot of hot-selling products proposed by its staff members.
Nakashimada Engineering Works, Ltd. in Fukuoka Prefecture controls 50%
of the world market share and 80% of the domestic market share of headerformer (press equipment that manufactures screws and bolts) capable of
producing products with a diameter of 2.5 mm or less. The company
manufactures 70% of their parts in-house, keeping high product quality. It
significantly enhances accuracy and durability by carefully facing up sliding
surfaces manually in the assembling process. While enhancing processing
accuracy by actively introducing cutting-edge equipment, the company
handles finishing tasks with intensified manual work. High-quality “sliding
surfaces facing-up” techniques supported with long-term employment is
serving for differentiation from competitors and contributes to improving the
company’s international competitiveness.
[Column: Production process innovations]
As production cost is rising in Japan, it is very important to improve
production processes so that domestic plants will maintain global
competitiveness.
By visualizing, standardizing, and indexing operators’ production
knowhow, which is heavily dependent on personal skills in the
materials industry where production innovation is rather difficult,
Daicel Chemical Industries, Ltd., a manufacturer of synthetic
resins for automobiles and consumer electronics as well as
cellulose acetate for LCD-use films, has achieved a three-phase
operational improvement consisting of “viewing, stopping, and
changing” operational practices and has established a stable
production management system independent of skilled mechanics.
1) Viewing
Overhauling a series of tasks ranging from new order acceptance
to product deliveries, and checking out appropriate knowhow and
role-sharing
2) Stopping
Creating data on a case-by-case basis by getting interviews about
skilled mechanics’ behavior based on their experiences and
feelings, and carefully screening essential tasks
3) Changing
Introducing an IT system that reflects the outcomes of the
upstream processes and setting up a new program that will display
on the single operational screen the guidance showing abnormal
circumstances and a list of their possible reasons
As Daicel has accelerated its efforts before the baby boomer staff
retire, operators’ workload has decreased sharply, sending down
the number of necessary operators to 290 from 740 at the time of
introducing the new program. This production approach is called
the “Daicel approach” and spreads out to other firms through study
group sessions and on-site plant visits.
㻌
[Column: Low-carbon, Job Opportunity Creating Industries Invitation
Promotion Project Costs Subsidy]
By utilizing the Low-carbon, Job Opportunity Creating Industries Invitation
Promotion Project Costs Subsidy, Tanaka Chemical Corporation has
constructed positive electrode materials product plant for car-mounted
lithium ion batteries at the HQ plant site in Fukui City. As the market for
positive electrode materials for car-mounted lithium ion batteries is still in
the pioneer stage, analysts say companies capable of mass production at
an early stage will easily acquire competitiveness. However, since massive
amounts of capital investment is necessary, Tanaka Chemical Corporation
was not able to capture an appropriate timing for capital investment on a
single-company basis. As it represents a cutting-edge technology for which
market demand is estimated to get stronger in the future, the company has
received ardent invitations from
foreign nations. By making use of the said subsidy,
Tanaka Chemical Corporation was able to take a bold
stance without give away an opportunity for domestic
capital investment.
31
(Trends surrounding capital investment (1))
When selecting plant locations at home, infrastructure-related elements, such as “accessibility to customers,”
“sufficient site dimensions,” and “logistic conditions,” play important roles, in addition to “availability of plant
workers” and “subsidies and administrative support.”
[Column: Industrial clusters with core manufacturers]
The questionnaire survey this time has revealed that
infrastructure- or hardware-related aspects, such as “sufficient site
dimension”, “accessibility to customers” or “logistic conditions” play
important roles in selecting plant sites at home.
In addition to creating networks among geographically closer
organizations, METI has been comprehensively and effectively
deploying a wide variety of supportive programs and pushing
ahead with the “Industrial Cluster Plan” to create world-class new
businesses and encourage the formation of industrial
clusters/networks.
Chubu Area Aircraft Industrial Cluster, an industrial cluster, has
been supporting academic-industrial collaborative R&D and human
resources development projects.
As the development and commercialization of domestically
manufactured aircraft are progressing, it is important to create a
next-generation aircraft innovation cluster incorporating upstream
and downstream sections by taking advantage of favorable
locations where aircraft body manufacturers and material makers
are located.
From the viewpoint of creating the cluster “core” and enhancing
centripetal force, Chubu Bureau of Economy, Trade and Industry
should push ahead with creating further advanced clusters by
enhancing state-of-the-art hardware that plays important roles in
the creation of clusters, such as (1) testing equipment necessary
for form certification of large wind tunnels and large joint testing
machines because Japanese manufacturers are currently using
overseas facilities and (2) an R&D base (National Composite
Center) capable of comprehensively providing design technologies,
processing technologies and repair services on CFRP (composite
materials) usable for automobiles and aircraft.
[Chart 2-37: Important factors for selecting plant site at home]
0
5
10
15
20
25
30
35 䠄䠂䠅
Availability of plant workers
32.4
Sufficient site dimension
32.1
31.2
Accessibility to customers
25.3
Logistic conditions
Subsidies and
administrative support
24.2
19.2
Land prices
Transportation access
16.5
Easiness of plant locationrelated procedures
16.5
13.6
Availability of engineers
Cluster of suppliers
5.7
Wage level
5.4
Cluster of universities or
research institutes
1.3
(n=558)
Source: METI data (January 2011)
32
(Trend surrounding capital investment (2))
Manufacturers put more emphasis on “forex risks” or “tariff reduction, such as EPA or FTA” in making capital
investment overseas, but they tend to attach a higher value to the “cluster or accessibility of universities or
research institutes,” “flexible operation of labor force,” “environment constraints, such as CO2 emission
control,” “subsidy or other preferential treatments,” and “availability of engineers” in making capital investment
at home, than overseas capital spending.
[Chart 2-38: Important factors for making capital investment at home
and abroad in the future]
0
10
20
30
40
50
32.6
Availability of plant labor force
Availability of engineers
2.6
Flexible operations of labor force
11.9
14.8
Corporate tax rate
15.9
12.0
Social security cost burdens
Cluster or accessibility of partner firms
Forex risks
5.9
28.8
24.6
11.9
Tariff reduction, such as EPA or FTA
3.0
1.7
1
Personnel cost
0.6
6
Availability of plant labor force
0.7
.7
2
Cluster or accessibility of universities
or research institutes
0.9
0
2.5
Flexible operations of labor force
Subsidy or other preferential
treatment
Important factors for
ᅜෆ⏕⏘䛷䛾㔜ど᮲௳
domestic production
Important factors for
ᾏእ⏕⏘䛷䛾㔜ど᮲௳
overseas production
2.0
1.2
Corporate tax rate
1.3
Cluster or accessibility of business
partners
Cluster or accessibility of
partner firms
Forex risks
46.2
Environment constraints, such as
CO2 emission control
Administrative regulation/license
procedures
Tariff reduction, such as EPA or FTA
(n=725)㻌
0.9
1.2
0.4
2.1
0.6
6
0.4
Other
Remarks: The survey covers firms having overseas production bases.
Source: METI data (January 2011)
Source: METI data (January 2011)
33
4
5
4.5
Logistic conditions
23.0
27.9
3
1.8
Availability of engineers
Social security cost burdens
12.3
12.7
58.3
29.7
30.3
32.6
25.4
21.7
17.9
Cluster or accessibility of business
partners
Other
0
35.0
40.4
32.6
13.1
Subsidy or other preferential
treatment
46.8
31.6
Logistic conditions
Environment constraints, such as
CO2 emission control
Administrative regulation/license
procedures
70 䠄䠂䠅
48.7
Personnel cost
Cluster or accessibility of universities
or research institutes
60
[Chart 2-39: Important factors for capital investment at home
in the future (the percentage of responses on domestic capital
investment/that of responses on overseas capital investment)]
1.8
(Efforts for next-generation industries (1))
It is important to clearly identify demand for next-generation industries arising from changes in market needs, such as
recent resource/environment issues or lower birthrate coupled with aging population. Diffusion strategies are different
among next-generation industries. For example, low-priced products and cost reduction will be particularly necessary
for hybrid automobiles. In addition, a lot of respondents say Japan’s technological advantages and commercial
advantages will both improve in next-generation industries. However, as a lower percentage of respondents estimate
commercial advantages will rise stronger than technological advantages, it is necessary to enhance Japan’s
commercial advantages.
[Chart 2-41: Relationship between technological advantages
and commercial advantages in next-generation industries]
[Chart 2-40: Important diffusion strategies in next-generation industries]
䠄䠂䠅
10
20
Low-priced products and cost
reduction
Establishing safety and
trustworthiness
Establishing mass production
technologies and production
technologies
Establishing evaluation/testing
methods
Addressing the global standards
and international standards
Enhancing new infrastructures
Addressing resource constraints,
such as rare earths
Collaborating with sector peer
companies
Cross-industry collaborations
going beyond industrial barriers
Making partner firms involving
overseas makers
Enhancing after-sales services
Policy support in tie-up with the
government
12.5
18.5
19.3
30
50
60
70
53.6
57.8
30.0
25.4
80
71.5
Water treatment systems
Medical equipment
22.8
19.5
29.2
21.7
14.5
8.3
0.5
1.1
1.8
5.4
4.1
6.0
7.9
5.6
9.6
6.2
2.3
12.5
3.3
1.8
5.2
4.7
5.3
0.8
0.5
0.0
1.7
2.0
3.3
3.4
6.2
1.7
2.4
5.4
8.0
3.1
2.5
1.5
1.3
3.6
4.1
2.0
1.8
3.8
3.1
3.6
6.3
9.0
17.4
11.1
40
Lithium ion batteries
43.2
Nursing-care and welfare equipment
High-efficiency lighting
Carbon fibers
Electric cars
Energy-saving and eco-friendly housings
Commercial advantages
0
Power semiconductors
Plant factories
High-temperature superconductors
Nuclear power generation plants
Hybrid automobiles
Smart grids
Photovoltaic power generation systems
Aircraft
Thermal power plants
䢆䡮䢈䢚䢔䡫䢀䢚⮬ື㌴(n=600)
Hybrid
automobiles (n = 600)
㟁Ẽ⮬ື㌴(n=455)
Electric
cars (n = 455)
Technological advantages
Photovoltaic
power generation
ኴ㝧ගⓎ㟁䡸䡹䡿䢍(n=391)
systems (n = 391)
་⒪ᶵჾ(n=387)
Medical
equipment (n = 387)
28.0
Source: METI data (January 2011)
Nuclear power generation plants
ཎᏊຊⓎ㟁䢈䢛䢓䢙䢀(n=238)
(n = 238)
34
Remarks: The graph shows average points by allocating 3 points to the
questionnaire survey’s answer option “advantages will improve,” 2 points to
the answer option “advantages will remain almost unchanged,” and 1 point to
“advantages will decrease” within the next five years.
Source: METI data (January 2011)
(Efforts for next-generation industries (2))
Preparations for next-generation industries are also necessary in supporting industries that underpin
automobile and intelligent home appliance industries. Buildup of supporting industries to a certain extent at
home is considered necessary. In addition, supporting industries should play advanced roles, such as “highmix low-volume production,” “prototype development,” or “innovative production technologies.”
[Chart 2-42: Importance of supporting industries in
next-generation industries]
[Chart 2-43: Roles that supporting industries should play in nextgeneration industries]
0
10
20
30
40
Addressing high-mix
low-volume production
Not sure
20.3%
They are not
that important.
9.2%
41.6
Addressing prototype
development
They are
important and
should be built
up to a certain
extent at home.
47.6%
40.7
Suggesting innovative
manufacturing
technologies
39.5
Addressing quick
delivery services
They are important
but buildup of a
supporting industry
is not necessary.
22.9%
36.8
Suggesting innovative
production
technologies
30.2
Addressing mass
production
25.3
Addressing spot order
placement
Other
Source: METI data (January 2011)
14.0
1.9
Source: METI data (January 2011)
35
50 䠄䠂䠅
(n=959)
(Characteristics and problems of domestic Monodzukuri)
A considerable number of Japanese manufacturers recognize that they have problems in technical, education,
or other human resource-related issues. This suggests that human resources development, including technical
transfer, IT-based standardization, OJT, and Off the Job Training, becomes a serious problem for them.
[Chart 2-44: Characteristics and problems of domestic Monodzukuri]
Consensus-building-type
integration through vertical
integration is strong.
It is good at addressing horizontal rolesharing and module-type production.
It is good at fostering human resources
based on Off the Job Training curriculum.
It is good at fostering human resources
based on OJT.
It is strong at R&D within group firms.
It is good at open innovations through
external collaboration.
It is good at manufacturing products based
on IT, independent of specialized skills.
It is good at manufacturing products based
on skillful craftsmanship or implicit knowledge.
It is good at creating high-quality, highperformance single-item products.
It is good at creating products that will
It is good at creating a system/unit
prevail in the global market aimed at global
incorporating multiple components.
standards or international standards.
It is good at creating products
that will satisfy tough
customer/consumer needs in
Japan.
Strengths/characteristics that should be
further utilized in the future
Strengths/characteristics that should be
enhanced immediately
Remarks: In the questionnaire survey, respondents picked the top three options each from “Strengths/characteristics that should be further utilized in
the future” and “Strengths/characteristics that should be enhanced immediately.” The graph shows the average points by allocating 3 points
to the top priority option, 2 points to the second priority option, and 1 point to the third priority option.
Source: METI data (January 2011)
36
(Strong and weak points in the supply chain (1))
South Korea’s total export value and its import from Japan have a very strong correlation. After the Lehman Shock,
materials/parts are showing better recovery performance than final products. In the global supply chains, Japanese
materials/parts manufacturers are capitalizing on their strengths and winning the world market share.
[Chart 2-45: Comparison of South Korea’s total export value and
export/import with Japan]
($1 billion)
Export, total (the left axis)
Export to Japan (the right axis)
($1 billion)
Import from Japan (the left axis)
(Year)
Source: Korea Customs Service
[Chart 2-46: Changes since the Lehman Shock (for each process)]
Materials
(n=276)
Parts
(n=944)
Processing works
(n=363)
Final products
(n=1,129)
Other
(n=197)
Profits increasing
Profits remaining flat
Profits declining
Remarks: “Profits increasing (or declining)” means that the operating profit has
increased (or decreased) by 5% or more since the Lehman Shock.
Source: METI data (January 2011) 㻌
37
[Column: Winning the world’s top share in high-quality
materials]
Lintec Corporation controls more than 30% of the domestic
market share in adhesive paper/films for seal labels and
registers more than 40% of the world share in semiconductor
dicing tapes. The company applies its core technology
adhesion technologies and provides a wide variety of products.
One of the company’s strengths is providing custom-made
products incorporating customer needs. Sometimes, R&D staff
members directly visit customers with sales staff to identify
potential customer needs, aiming to utilize them for developing
new products. In addition to product development, the R&D
section is also researching Monodzukuri elemental
technologies of “blending,” “painting,” “drying,” “rolling up,” or
“cutting” in order to support a production scheme capable of
stably manufacturing high-quality products. As a result,
overseas customers give the company’s products high marks
for their high quality.
As the company earns profits in a wide variety of business
fields, it was capable of recovering at a relatively early stage,
supported by stable earnings less subject to business
fluctuations even after the Lehman Shock. In addition, the
company is pushing ahead with enhancing business
capabilities, such as reorganizing core plants and making
large-scale capital investment in its core business such as
seal-label-adhesive paper/films even in economic recession.
(Strong and weak points in the supply chain (2))
Japan has some business fields that play core roles in the supply chain, such as advanced parts/materials.
If Japanese manufacturers want to firmly keep control of next-generation industries in the era of international
role sharing, it is important to maintain/strengthen production capabilities that play core roles in the supply
chain.
[Column: Manufacturing custom-made
core parts/materials]
To attain automobile emission control
values, high-performance catalyst-use
zirconium compounds play key roles.
Daiichi Kigenso Kagaku Kogyo Co., Ltd.
controls approximately 50% of the world
market share of zirconium compounds
used for a promoter of automobile
emission catalysts.
As its customers and raw material
mineral deposits are scattered all over
the world, the company puts emphasis
on domestic production to prevent
overseas outflow of technologies that
yield the company’s competitiveness. As
approximately 50 staff members belong
to the R&D section out of the total 300
workers, the company is good at
custom-made high-mix low-volume
production through
advanced processing
works tailored to
customer needs. 㻌
[Column: Technologies contributing to
improving the performance of lithium
ion batteries]
High capacity negative-electrode
materials are necessary for improving
the performance of lithium ion batteries.
Hitachi Chemical has been working on
R&D based on carbon technologies
developed since its inception, and
succeeded in developing artificial
graphite capable of creating high
capacity negative-electrode materials.
The company controls the world’s top
market share (45%) in negativeelectrode materials, helped by its
unique technologies.
38
[Column: Rare earths equipment installation
subsidy]
Japan Metals & Chemicals Co., Ltd. utilizes the rare
earths equipment installation subsidy program to
introduce new equipment that extracts/recovers rare
earths from nickel hydrogen cells collected at home
and abroad in order to stably supply rare earths. By
doing so, the company intends to enhance
operational capabilities for stably supplying highcapacity high-performance battery-use negativeelectrode materials.
The subsidy program has induced domestic capacity
investment at the amount of ¥100 billion or more,
preventing the overseas outflow of production bases
or core technologies in growth industries, such as
battery parts/materials or neodymium magnets for
which market demand is expected to rise sharply. In
addition, the subsidy program has diversified supply
sources and has cut down annual rare earths
consumption by
approximately
10,000 tons in relation
with the current
domestic demand at
approximately
30,000 tons.
(Strong and weak points in the supply chain (3))
Approximately 50% of respondent firms say some parts/materials that they are procuring are not substitutable.
The Great East Japan Earthquake has revealed that the supply chain in the manufacturing industry has a
“diamond structure” in which parts/materials supply at tier 2 or deeper in the supply chain is concentrated in a
certain supplier.
[Chart 2-47: Do you have any parts/materials
unavailable from alternative suppliers
than the current suppliers?]
A lot of
parts/materials
are unavailable
from alternative
suppliers.
13.6%
No
parts/materials
are unavailable
from alternative
suppliers.
47.7%
[Chart 2-48: Diamond structure supply chains]
Pyramid structure
• Each corporate group has a wide base consisting of multiple
parts/materials manufacturers.
• Suppliers at each tier level are substitutable.
Finished car
manufacturer
Finished car
manufacturer
Diamond structure
• Production of some parts/materials concentrated in certain
suppliers.
• If such a supplier suffers earthquake damage, negative
impacts will occur on the entire supply chain.
Finished car
manufacturer
Finished car
manufacturer
Some
parts/materials
are unavailable
from alternative
suppliers.
38.7%
Tier 2 or
lower
damage
Substitutable
Tier 2 or
lower
damage
Substitutable
Source: METI data (February 2011)
Source: METI data
39
Damage
Not substitutable
Tier 2 or
lower
(Strong and weak points in the supply chain (4))
Rare earth production is unevenly distributed. Japan currently depends on China for most of its rare earth
imports. As approximately 50% of China’s rare earth export is bound for Japan, Japan is one of the major rare
earth consumer nations in the world. Imported rare earths are processed with advanced technologies to create
parts/materials for which Japan has a large market share and re-exported to China in many cases.
[Chart 2-49: Rare earth production
volume]
Malaysia
[Chart 2-50: Nations from which Japan is
importing rare earths]
Kazakhstan
Brazil
Russia
Others
USA
India
[Chart 2-51: Destinations of China’s
rare earth export]
Vietnam
Others
France
Japan
China
France
China
USA
Source: Mineral Commodity Summaries2011
Source: Ministry of Finance, “Trade Statistics of Japan”
Source: The Chinese Customs
[Chart 2-52: Supply chain examples of rare earths]
Hard disk substrates
Abrading agents
Japan
Glass substrates
Hard disks
PCs
Rare earth
Cerium oxide
Neodymium magnets
Magnet materials
Automobiles
Japan
Magnet alloys
Neodymium magnets
Rare earths
HDDs
Motors
Consumer electronics
Metallic dysprosium
Metallic neodymium
Metallic samarium
etc.
Source: METI data
40
(Strong and weak points in the supply chain (5))
If a company boasts a larger market share in the world, it knows the supply chain that it belongs to relatively
well. On the other hand, such companies tend to use rare earths, rare materials, or other parts/materials
susceptible to supply disruption. They should make efforts to reduce such risks.
[Chart 2-53: How well do companies understand their supply chain
(their suppliers)?]
[Chart 2-54: Do you use rare resources such as rare earths?]
High market share
companies
(n = 463)
High market share
companies
(n = 464)
Other companies
(n = 2,388)
Other companies
(n = 2,387)
Only understand their suppliers
Understand their supplier’s parts/materials suppliers
Understand more details about their supply chain than their supplier’s parts/materials suppliers, but do not
know the materials procurement route
Understand the materials procurement route as well
Yes, we do.
Other
[Chart 2-56: Have you ever examined possible solutions in case rare
earths get more expensive or becomes more difficult to acquire?]
[Chart 2-55: Do you have parts/materials susceptible tosupply
disruption?]
High market share
companies
(n = 463)
High market share
companies
(n = 70)
Other companies
(n = 2,392)
Other companies
(n = 285)
Some slightly important parts/materials
are susceptible to supply disruption.
No, we don’t.
Uncertain
Source: METI data (January 2011)
Not sure
Source: METI data (January 2011)
A high market share company means a corporation with a world market share
of 30% or more. The same meaning shall apply hereinafter on this page.
Source: METI data (January 2011)
Some important parts/materials are susceptible to
supply disruption.
No, we don’t.
We have identified
our solutions.
41
We are currently examining
solutions.
Source: METI data (January 2011)
We have never examined
such solutions.
(Strong and weak points in the supply chain (6))
Before the Great East Japan Earthquake occurred, approximately 95% of respondent firms said they are “taking
countermeasures against supply disruption risks, but these countermeasures are insufficient” or they are “not pushing
ahead with such countermeasures.” Not many companies lay down emergency actions as their BCP, but some of them
worked very well during the earthquake this time. They are effective as contingency planning.
Companies are getting more interested in mitigating risks, but some firms are planning on examining/conducting
“expansion of overseas production ratio.” This suggests corporate risk mitigation actions could back up industrial
hollowing-out further.
[Chart 2-57: Countermeasures on supply chain disruption risks]
[Chart 2-58: Changes in corporate strategies to mitigate product
supply disruption risks after the great earthquake]
We are taking
sufficient
countermeasures.
5.3%
We are not
pushing ahead
with such
countermeasures. We are taking
32.3%
countermeasures,
but these
countermeasures
are insufficient.
62.3%
Source: METI data based on the Teikoku Databank survey (August 2011)
42
Other
Preparing/reviewing BCP
(business continuity plan)
Business alliance/integration
with other firms
Sharing business partners
with technical information
Sharing technical information
with sector peer companies
Providing business partners
with supplier information
Examining/conducting
inventory optimization
Making efforts for product standardization
(reducing custom-made products)
Expanding the overseas production ratio
(examining/conducting dispersion of
production bases, including overseas plants)
[Column: Minimizing damage with BCP]
Group firms of Ricoh Co., Ltd. suffered from earthquake damage.
In particular, the toner plant of Tohoku Ricoh was severely
damaged because the plant tanks were damaged. However, as
the company had developed BCP in preparation for significant
disasters or accidents, it recovered faster than anticipated.
To be more specific, Ricoh set up the task force chaired by the
president to actively share information and check out the situation
by forming intersectional consensus. In addition, competitors
faced difficulties in securing communications tools, but Ricoh had
already created redundant networks and was able to smoothly
share information among group firms.
Examining/conducting dispersion of
domestic production bases
Source: METI data (February 2011)
(Strong and weak points in the supply chain (7))
On the basis of lessons learned from the Great East Japan Earthquake, Japan needs to establish robust
supply chains capable of reducing costs and maintaining competitiveness if the nation intends further growth.
Desirable directions
1. Enhancing contingency planning capabilities, such as risk diversification in core
sections of supply chains
-
Dispersion and creation of the second track
Industrial reorganization and business integration
Substitutive supply from multiple suppliers at the time of disaster
Sorting out and standardizing well-balanced specifications/parts, and making materials
specifications more flexible
- BCP (business continuity plan), etc.
2. Strengthening business/financial capabilities
[Column: Rare earth recycling efforts]
Hitachi, Ltd. developed a new technology that recycles rare
earths, which is necessary for the production of Hitachi’s core
products—motors. As a result, it developed new equipment
separating/collecting rare earth magnets from used products and
succeeded in extracting rare earths from rare earth magnets
using an experiment with dry method. Compared with the
traditional approaches, the new method is expected to send up
work efficiency and reduce environmental burdens.
Santoku has already commercialized the “Inter-user recycling
system,” which collects scrap emerging from business partners’
magnet manufacturing processes and recycles them with the
most effective approach. In addition, the company is pushing
ahead with R&D on new technologies capable of efficiently
separating/extracting rare earths from used products using wet
methods, reducing them to metals by using only industrial-use
equipment developed in-house, and recycling them as magnet
alloys. By exchanging opinions with automakers and consumer
electronics manufacturers, the company is working on research
projects for the expansion of recycling practices.
43
[Column: Projects to mitigate supply disruption risks of parts/materials]
Honda Motor is working on the following projects, aiming to enhance
competitiveness and reduce supply disruption risks of parts/materials.
1) Pushing ahead with diversifying materials suppliers
Listing parts/materials that Honda is purchasing from a single supplier,
and always updating and managing the list. As for parts/materials on the
list, Honda will make adjustments with suppliers to diversify materials
suppliers as soon as possible.
2) Managing suppliers
The company requests primary suppliers to periodically check their
parts/materials procurement practices. If the supplier is purchasing
materials/parts from a single supplier, Honda requests the supplier to take
the following actions in the priority order as follows: (1) pushing ahead
with diversifying suppliers, (2) diversifying production bases, and (3)
increasing product inventories.
3) Establishing a restoration support scheme at the time of disaster
Honda develops an internal program to send on-site a team of specialists
responsible for common infrastructures among plants, such as electric
power systems.
In addition to this, in tie-up with primary suppliers, Honda has started to
work on creating robust risk mitigation schemes, including secondary and
tertiary supply chains.
Section 4: Japanese manufacturing industries aim to create value added in the global market
(Processes that create value added)
Front-end processes, such as “planning/marketing” or “R&D,” as well as rear-end processes, including
“after-sales services,” tend to have higher value added. On the other hand, value added in
“manufacturing/production” takes a gradual downward trend.
In addition, suppliers actively working on “enhancing proposal-making capabilities” tend to increase new order
volume.
[Chart 2-59: Changes in work processes with high value-added]
[Chart 2-60: Actions taken to strengthen sales efforts
after the Lehman shock]
0
20
60
Enhancing proposalmaking capabilities
31.8
Present
(n = 2,715)
Enhancing new order
acceptance capabilities for
each unit
Planning/marketing
R&D
Design
Procurement
Manufacturing/
production
Sales/distribution
Source: METI data (January 2011)
Enhancing environmentconsciousness
40.9
18.9
13.0
Enhancing design
capabilities
Five years
later
(n = 2,640)
䠄䠂䠅
54.2
52.4
Enhancing cultivation of
new customers
Five years
ago
(n = 2,524)
After-sales services
40
Order volume
ཷὀ㔞ቑຍ(n=264)
increasing (n = 264)
4.9
4.3
Order volume
ཷὀ㔞ῶᑡ(n=651)
decreasing (n = 651)
12.1
11.1
Remarks: “Order volume increasing (or decreasing)” means that order volume has
increased (or decreased) by 10% or more since the Lehman shock.
Source: METI data (January 2011)
44
(Entering emerging markets (1))
As almost half of the respondent firms recognize China has almost the same economic size as advanced
nations, Asian markets are becoming very important among emerging economies. More than half of the
respondent firms already attain profits emergence in such promising markets. More and more firms are
estimated to yield profits in these markets.
[Chart 2-61: Size of emerging economy markets in comparison
with advanced nations]
0
20
୰ᅜ
(n=510)
44.7
㡑ᅜ䞉ྎ‴
South Korea
and
Taiwan(n=343)
(n=343)
100 (%)
80
34.1
35.6
Present
18.7
12.5
37.6
8.6
Future
Present
South
Korea and
Future
Taiwan
8.2
Present
ASEAN
(n=407)
19.9
ASEAN (n=407)
䜲䞁䝗
(n=315)
60
China
China (n=510)
India (n=315)
40
[Chart 2-62: Japanese manufacturer’s profit/loss in
emerging economies (by market)]
33.4
38.1
ASEAN Future
8.6
Present
11.1
䝤䝷䝆䝹
Brazil (n=238)
6.7
(n=238)
40.3
21.4
34.9
37.8
India
13.7
Future
Present
Other
Asian Future
markets
34.0
Present
䝻䝅䜰
2.2
(n=227)
Russia (n=227)
19.4
42.7
Brazil
35.7
Future
Present
୰㏆ᮾ
Middle
East
(n=223)
(n=223)
7.2 11.7
44.4
Already has almost the same size
(ඛ㐍ᅜ䛸)᪤䛻ྠ⛬ᗘ
as advanced nations
Will not have the same size for the
ᙜศཬ䜀䛺䛔
time being
Source: METI data (January 2011)
36.8
Russia
Future
Present
Middle
East Future
Will have almost the same
ᩘᖺ䛾䛖䛱䛻ྠ⛬ᗘ
size within a few years
䜟䛛䜙䛺䛔
Not sure
Profit emerges
45
Break even
Source: METI data (January 2011 )
Deficit emerges
(Entering emerging markets (2))
In rapidly growing emerging economies, Japanese manufacturers are competing with Chinese, Korean, and
Taiwanese firms as well as with other Japanese firms.
A lot of firms target the wealthy class. They also tend to put more emphasis on the middle-income class
because it is taking an expansion trend and will turn into the wealthy class in the future. Companies that put
the top priority on product strategies suitable to customer needs are showing better performance than those
emphasizing price/promotional strategies.
[Chart 2-63: Nationalities of competitor firms in emerging markets]
[Chart 2-64: The most important customer base in emerging markets]
China market
(n = 381)
Present
(n = 354)
South Korea and
Taiwan markets
(n = 226)
Future
(n = 435)
ASEAN markets
(n = 276)
India market
(n = 152)
Wealthy class
Middle-income class
Low-income class
Specific target other than income
classes
Source: METI data (January 2011)
[Chart 2-65: The most important strategies in emerging economies]
Other Asian markets
(n = 90)
Brazil market
(n = 86)
Companies with
profit growth
(n=417)
Russia market
(n = 71)
Companies with
profit staying flat
(n=223)
Middle East market
(n = 66)
Companies with
profit drop
(n=89)
China
South Korea and
Taiwan
USA
Europe
Japan
Other
Source: METI data (January 2011)
Product strategy
46
Price strategy
Promotion strategy
Remarks: Profit growth (or drop) means that operating profit has
increased (or decreased) by 5% or more in the last 5 years.
Source: METI data (January 2011)
(Entering emerging markets (3))
Japanese manufacturers have competitiveness in Monodzukuri in emerging markets, including design,
procurement, and production. However, they suffer competitive disadvantages in planning/marketing and
sales, so-called both ends in the smile curve, which yield relatively high value-added. Japanese
manufacturers should enhance these weak points, shifting to “profitable Monodzukuri” in the future.
[Chart 2-66: Weak points in emerging markets]
[Column: Brand-building strategy through national monopoly]
Eizo Nanao Corporation, a subcontract manufacturer that used to
produce displays for major electronics manufacturers, launched
its own brand “Eizo” in 1985 by making use of the company’s
high-level technical capabilities. By setting up the one-nation onedistributor system (exclusive sales agreement), the company
honestly listens to customers’ voices from trustworthy partners
and feeds them back to enhance customer satisfaction, leading to
successful brand-building. Currently, the company’s high
popularity in Europe is spreading out to the Chinese wealthy class,
sending up sales in the China market.
䠄%䠅
45
(n = 690)
39.4
38.1
30
21.0
21
15
19.7
20.0
14.1
10.6
9.3
[Column: Enhancing sales capabilities in collaboration with
overseas joint ventures]
Komatsu NTC, Ltd., a major manufacturer of automobile-use
machine tools in Toyama Prefecture, set up a local production
firm in China in 1996 in tie-up with a Chinese local firm. Komatsu
manufactures advanced equipment at home, while producing
machinery that strikes a balance between product quality and
price level for local manufacturers in the local Chinese market.
As motorization is currently progressing in China, demand for
machine tools is also rising sharply. By utilizing the connections
and sales network of the joint venture local partner, Komatsu is
marketing Chinese-made machines as well as domestically
produced advanced equipment to Chinese firms.
Overall management
Af ter-sales services,
maintenance
Sales
Production
Procurement
Engineering design
R&D
Marketing/Planning
(Product design)
0
Source: METI data (January 2011)
47
(Importance of Japanese brands* (1)) * Brand value of Made-in-Japan products
Before the Great East Japan Earthquake, Japanese manufacturers enjoyed certain price premiums because
Japanese brands have yielded positive impacts mainly in hardware aspects, such as “high quality and high
performance.” However, as the earthquake has also posed anxieties over Japanese brands, it is necessary to
restore credibility as soon as possible. On the other hand, software-like aspects, such as “product design and
styles” and “Japan’s unique culture,” have not generated profitability yet. It is important to capture the world
demand for Monodzukuri rooted in culture, such as highly promising Japanese traditional goods.
[Chart 2-67: Do Japanese brands have any effect?]
No
[Chart 2-69: Japanese brand’s price premium in comparison with products of
emerging economy’s manufacturers]
Made-in-Japan
* manufactured in Japan
(n = 423)
Yes
Made-in-Japan
* manufactured by Japanese
firms outside Japan (n = 402)
Yes, they have
slight effects.
No premium
0% or more, but less than 20%
50% or more, but less than 200%
More than 200%
20% or more,
but less than 50%
Source: METI data (January 2011)
[Column: “Cool Japan” project]
“Cool Japan” is a project that cultivates overseas market demand for Japanese local
products with high popularity/potential strength.
Sato Sen’i Co., Ltd. intensifies R&D on new products only manufactured in-house. It has
expanded spinning, knit-production, and original brand businesses, participated in the
world’s largest knit materials exhibition, and successfully entered into a contract with the
top brands in Europe and the US.
Materials (n=51)
Parts (n=182)
Source: METI data (January 2011)
Japan’s unique
culture
Product design and
styles
Cost effectiveness
Energy saving
Multi-function, high
functions
Durability
Safety
High quality, high
performance
[Chart 2-68: What is Japanese brand?]
Final products (n=199)
[Column: Traditional craftwork industry]
The traditional craftwork industry is a valuable sector that promotes daily commodities
rooted in local communities and delivers traditional techniques and cultures to the
contemporary era. However, due to recent stagnant demand, successor shortage, and some
other factors, production amount has decreased to a quarter of the peak level in the 1980s.
Through supporting production-site demand cultivation projects and successor fosterage
projects, the government pushes ahead with improving the environment so that traditional
technologies/techniques will be handed over to future generations.
48
(Importance of Japanese brands (2))
When looking at the price premium of Japanese brands for each industry sector, a lot of textile companies
show strong brand power. In addition, the general machineries sector and electric/electronic-related sector
also have strong brand power. Price premiums are relatively lower in the parts/materials sector than in the
final product sector. It is necessary to enhance appealing power in the parts/materials sector.
[Chart 2-71: Japanese brand’s premium by process]䛇
[Chart 2-70: Japanese brand’s premium by industrial sector]
Textiles
(n=17)
Materials
(n=48)
Chemicals/oil
(n=60)
Ferrous and
nonferrous
(n=26)
Parts
(n=167)
Metals
(n=46)
General
machineries
(n=61)
Electric/electroni
c machineries
(n=52)
Transport
equipment
(n=53)
Final products
(n=192)
Precision
machines (n=53)
No premium
0% or more, but
less than 20%
20% or more, but
less than 50%
50% or more, but
less than 200%
200% or
more
No premium
0% or more,
but less than 20%
50% or more,
but less than 200%
200% or more
20% or more,
but less than 50%
Source: METI data (January 2011)
Source: METI data (January 2011)
[Column: Preference for “made in Japan”]
Okuma, a major machine tool manufacturer in Aichi Prefecture,
devotes itself to manufacturing products for high-end markets by
making use of prominent technologies in Japan. As personnel cost is
soaring in China, the needs for labor saving, automation, and
increase in speed are getting stronger. As Japanese products that
satisfy these needs (safety, high quality, and durability) have stronger
customer needs, the company pushes ahead in cultivating the China
high-end market, backed by power coming from made-in-Japan
products.
[Column: Overseas consumers want “made-in-Japan” products]
In recent years, Yamada Denki Co., Ltd. is seeing a sharp rise in wealthy
class Chinese customers that buy “made-in-Japan” consumer electronics in
bulk as souvenirs. In overseas markets, people use “made-in-Japan”
consumer electronics without peeling off the “made-in Japan” label. In this
sense, the “made-in-Japan” brand serves as high status from the viewpoint
of high quality and trustworthiness in overseas markets. As foreign products
are gaining brand power, such as South Korean products with improved
designs, Japan needs to maintain its brand power in the future.
49
(R&D and commercialization)
As short-term R&D projects are increasing, innovations that will lead to development of epoch-making new products
will possibly dry up. As a lot of companies are working on important themes exclusively within their own company
group, more than 60% of respondent firms recognize that their R&D works are overlapping with their competitors’ R&D
works. It is also necessary to set up an appropriate inter-company collaborative framework.
Companies with hot-selling products tend to have closer interaction in their R&D sector, operating sector, and
intellectual property sector than those without hot-selling products.
[Chart 2-75: Does your company have interaction between R&D section and
operating section? (Companies with hot-selling products for the last 5 years vs.
those without hot-selling products)]
[Chart 2-72: Changes in R&D themes]
Medium- and
long-term R&D
projects are
increasing
12.7%
Short-term
R&D projects
are increasing
43.8%
No change
43.5%
Companies with
hot-selling products
(n=438)
Source: METI, “Quantitative Evaluation
Survey on Open Innovations related
to Japanese Firms’ R&D
Investment Efficiency”
Companies without
hot-selling products
(n=2,266)
R&D section does not have interaction with operating sector.
R&D section has interaction with the operating sector to a certain extent and is working on R&D theme.
No boundary exists between R&D section and operating section.
Not applicable
[Chart 2-73: Overlapping with
competitors’ R&D projects] 㻌
Recognizing
that our R&D
projects are not
overlapping
38.2%
Recognizing
that our R&D
projects are
overlapping
61.8%
[Chart 2-74: Stance on managerially
important R&D themes]
Putting
emphasis on
open innovation,
seeking
collaboration
with third parties
28.1%
Working on
such R&D
theme
exclusively
within the
company or our
corporate group
71.9%
Source: METI data (January 2011)
[Chart 2-76: Does your company have interaction between R&D section
and intellectual property section? (Companies with hot-selling products
for the last 5 years vs. those without hot-selling products)]
Companies with
hot-selling products
(n=436)
Companies without
hot-selling products
(n=2,257)
R&D section does not have interaction with intellectual property sector.
R&D section has interaction with intellectual property sector to a certain extent and is working on R&D theme.
No boundary exists between R&D section and intellectual property section.
Source: “Quantitative Evaluation Survey on
Open Innovations related to Japanese
Firms’ R&D Investment Efficiency”
Source: METI data (January 2011)
50
Intellectual property section does not exist.
Not applicable
Source: METI data (January 2011)
(Standardization efforts)
Companies have a considerable gap in their recognition of how important international standardization is.
However, companies that understand the importance of international standardization recognize that they
should start standardization efforts early. To survive in the global market, it is important to make efforts to take
full advantage of standardization outcomes, including the appropriate timing/approach.
[Chart 2-77: Importance of international standardization]
[Column: Shifting to “Successful technologies, successful operations”
business model]
In recent years, we are seeing a lot of cases where a Japanese firm
successfully wins a large market share in the initial stage, backed by
technological advantages, but loses market share in the market
expansion stage.
International standardization is an important tool to attain the goals of
business strategy. To make international standardization projects pay off
fully, it is necessary to analyze various factors, such as technological
capabilities and market presence, and clearly identify important points,
including setting up appropriate performance criteria or compatibility. In
addition, it is also necessary to create an appropriate framework capable
of keeping long-term competitive advantage by incorporating patent or
black box strategies.
㻌
Very
important
6.6%
Important
23.7%
Not sure
38.0%
Not
important
11.1%
Not very
important
20.6%
[Chart 2-79: Japan’s share in the global market]
Source: METI data (January 2011)
[Chart 2-78: Appropriate timing to start international
standardization program]
DVD players
Car navigation systems
㻌
5 years ago
(n=720)
World share
Digital cameras
LCD panels
DRAM memories
Present
(n=770)
Conceptual/planning phase
R&D phase
Commercial feasibility phase
Commercialization phase
After product release
Other
Source: METI data (January 2011)
(Year)
Source: METI data based on various source documents
51
(Enhancing business capabilities through corporate reorganization (1))
Japanese manufacturers tend to lose their competitiveness due to competition with domestic competitors. To
survive in stiffer global competition, it would be effective to strategically set appropriate targets and keep a
certain corporate scale through inter-company collaborations.
[Chart 2-80: Relationship between competition among Japanese firms and
business performance]
0–3 firms
(n=107)
4–10 firms
(n=187)
11 or more
firms (n=204)
Companies with profit growth
Companies with profit remaining flat
Companies with profit drop
Remarks: “Companies with profit growth (or drop)” means that operating profit has
increased (or decreased) by 5% or more for the past 5 years.
Source: METI data (January 2011)
[Chart 2-81: Market share (market leader ratio) and business
performance]
The market leader
(n=51)
1.0 time or more,
but less than 2.0 times
(n=37)
2.0 times or more,
but less than 5.0 times
(n=21)
5.0 times or more
(n=50)
Companies with profit growth
Companies with profit remaining flat
Source: METI data (January 2011)
Companies with profit drop
52
[Column: Reorganization for surviving in global
competition]
To overcome global competition, major domestic firms
are pushing ahead with collaborations and corporate
reorganizations.
In September 2010, Fiji Technica, the second largest
automobile metal mold manufacturer in Japan, and
Miyazu Seisakusho, the third largest manufacturer in
the same sector, integrated their business operations in
December 2010 with assistance from the Enterprise
Turnaround Initiative Corporation of Japan. Through
business integration of these two firms with
internationally respected high-quality technologies, they
centralize their business resources, aiming at
differentiating them from manufacturers in emerging
economies as advanced metal mold manufacturers,
breaking away from domestic over-competition, and
enhancing cost competitiveness through a global
network of production bases.
In the chemical sector, Idemitsu Kosan and Mitsui
Chemicals set up a limited liability partnership (LLP)
“Chiba Chemical Manufacturing” in April 2010. In
February 2011, Asahi Kasei and Mitsui Chemical
Holdings announced the establishment of “Nishi Nippon
Ethylene LLP.” Through these business integrations,
they aim at an optimal production scheme and efficient
business operations.
(Enhancing business capabilities through corporate reorganization (2))
In the final product sector, positive impacts from corporate reorganization include increased availability of human
resources, intellectual properties, and brands. In the materials sector, a lot of companies point out that they enjoy higher
capacity utilization or increased production efficiency. In the parts sector, many manufacturers are benefitting from
expansion of customer base. On the other hand, when examining the feasibility of corporate reorganization, a gap in
“corporate cultures” or “business strategies” becomes a significant obstacle. In addition, if corporate size increases,
problems of “antimonopoly law” or “systems reorganization” will also emerge.
[Chart 2-82: Positive impacts from reorganization of companies operating overseas]
0.0
10.0
20.0
30.0
[Chart 2-83: Obstacles for corporate reorganization by company size]
0
40.0(%)
20
40
60
80
62.2
11.8
Material procurement
Gap in corporate culture
19.8
19.0
59.7
60.7
Gap in business strategy
17.6
Expansion of customer
base
25.0
11.8
Bargaining power against
customers/business
partners
21.0
22.6
11.8
Better availability of
overseas sales channels
Improvement in capacity
utilization rate or
efficiency
11.8
4.9
Applicable rules/operations
of antimonopoly law
Opposition of business
partner firms
Decreased positions or
posts
27.4
Materials (n=17)
⣲ᮦ(n=17)
㒊ရ(n=81)
Parts (n=81)
17.6
23.8
17.2
᭱⤊〇ရ(n=84)
Final products (n=84)
18.2
20.3
Source: METI data (January 2011)
69.6
44.9
30.4
䠏൨෇௨ୗ
¥300 million or less
(䡊䠙2,711)
(n=2,711)
9.9
11.8
7.2
3.9
3.9
7.2
43.3
46.6
42.0
Staff employment problems
Necessary costs of
business integration, such
as system reorganization
81.2
42.0
23.6
25.1
Opposition from
shareholders or parent firm
29.4
19.8
5.1
Opinion gap about merger
ratio or shareholding ratio
22.2
22.6
16.0
16.7
Better availability of highquality human resources
or intellectual properties
Improvement in publicity
or brand capabilities
37.0
70.5
100 䠄%䠅
23.4
25.1
䠏൨෇㉸䡚
More
than ¥300
䠍䠌䠌൨෇௨ୗ
million
to ¥10 billion
(䡊䠙382)
or
less (n=382)
䠍䠌䠌൨෇㉸
More
than ¥10
billion
(n=69)
(䡊䠙69)
37.7
Source: METI data (January 2011)
[Column: Creating appropriate scheme that will encourage corporate reorganization]
Intending to maintain/enhance the competitiveness of Japanese manufacturers under global competition, lawmakers have amended “Act on Special
Measures for Industrial Revitalization and Innovation of Industrial Activities,” which came into force in July 2011. The amended legislation sets forth
necessary actions to accelerate and make smooth industrial reorganization. To be more specific, the minister in charge is required to have “dialogs”
with the Japan Fair Trade Commission in terms of reorganization plans. The “dialogs” are expected to provide information on overseas competitors’
investment trends or R&D projects on substitutive products, and enhance collaborations between industrial policies and competition policies.
In addition, for the “Rules on Review of Business Combination,” the Japan Fair Trade Commission has reexamined its review process and review
criteria on business combination regulations, taking into consideration the basic stance of the New Growth Strategy (June 2010) calling for
“reviewing and reexamining, as necessary, business combination regulations, paying due attention to the global market.”
53
(Creating virtuous circles between domestic bases and overseas bases (1))
Aiming to enhance domestic business capabilities that will yield competitiveness, some manufacturers are bringing back to
Japan their human resources, physical resources, money, and information resources, or other outcomes obtained from their
overseas business operations. It is important to create a virtuous circle in which companies will utilize business resources
obtained from their overseas operations to enhance the competitiveness of their domestic operations, which will in turn lead to
increasing profitability in overseas operations.
[Chart 2-84: Creating a virtuous circle of business resources]
Human
resources
Making use
of global
human
resources
[Column: Virtuous circle at home and abroad]
1) Cycle of manufacturing (Monodzukuri) capabilities
When launching overseas production in emerging economies, Denso
Corporation forms a low-cost development team to develop new
technologies that will bring down production cost. By doing so, the
company has a production scheme with adequate cost-planning
capabilities. To enhance the competitiveness of domestic production
base through the outcome of these efforts, Denso brings back lowcost production knowhow from the emerging economy’s production
base to its domestic plants and partner firms’ domestic plants, aiming
to achieve “high-performance, high-function, but low-cost” production.
2) Cycle of Monodzukuri financial resources
Aisan Industry, Co., Ltd. has mass production bases in emerging
economies where demand for automobiles is rising sharply, but it
also recognizes that domestic plants are a source of core
technologies, and has established a profitable international rolesharing scheme to this end. In principle, the company enjoys a
virtuous circle in which it brings back earnings of overseas operations
to domestic operations as dividends, spends such dividend fund on
state-of-the-art R&D projects, and further utilizes R&D outcomes for
overseas operations.
3) Cycle of Monodzukuri brands
Makino Milling Machine Co., Ltd., a major machine tool manufacturer,
keeps producing advanced products that make potential customers
think they would like to use Makino products some day in the future.
To this end, in Singapore the company produces and sells entry-level
product models that appeal to such potential customers. It is working
on spreading the Makino brand among customers that have
purchased entry-level product models, aiming to sell made-in-Japan,
high-spec machine tools in the future.
Companies with profit
growth
(n=76)
Companies with profit
remaining flat, or
profit drop
(n=114)
Companies with profit
Physical
growth
resources
(n=78)
Improving
manufacturing Companies with profit
(Monodzukuri)
remaining flat, or
capabilities
profit drop
(n=117)
Companies with profit
growth
Money
(n=80)
Bringing back
dividends
Companies with profit
and royalties
remaining flat, or
profit drop
(n=122)
Information
Forming
brand
images
Companies with profit
growth
(n=78)
Companies with profit
remaining flat, or
profit drop
(n=112)
Creation of a virtuous
circle will surely yield
such an effect.
Creation of a virtuous circle
is expected to yield such an
effect in the future.
It does not yield
such an effect.
Remarks: “Companies with profit growth (or drop)” means that operating profit has
increased (or decreased) by 5% or more for the past 5 years.
Source: METI data (January 2011)
54
(Creating virtuous circles between domestic bases and overseas bases (2))
Japanese firm’s overseas subsidiaries tend to decrease the percentage of their retained earnings in overseas
local markets, suggesting that manufacturers are bringing back more profits to Japan. Dividend income from
these firms is taking an upward trend. On the other hand, some manufacturers do not bring back their profits
to Japan because they are reinvesting their profits in overseas markets, including emerging markets that enjoy
rapid growth.
[Chart 2-85: Percentage of locally retained earnings of Japanese firm’s
overseas subsidiaries]
60
䠄%䠅
[Chart 2-86: Trend of profits receivable from overseas operations]
(¥1 million/company)
䠄ⓒ୓෇䠋♫䠅
50
40
30
Loan
interests, etc.
㈚௜㔠฼ᜥ➼
Loyalties
ࣟ࢖ࣖࣝࢸ࢕
㓄ᙜ㔠
Dividends
Source: METI, “Basic Survey on Overseas Business Activities”
20
[Chart 2-87: Reasons for not bringing back dividends to Japan]
10
0
0
䠌䠐
䠌䠑
䠌䠒
䠌䠓
䠌䠔
20
40
50.3
Funds are necessary for
overseas reinvestment
(Year)
䠌䠕䠄ᖺ䠅
14.8
No capital needs at home
Remarks: Calculation of the percentage of locally retained earnings of Japanese
firm’s overseas subsidiaries
“Total amount of locally retained earnings of these” divided by
“Total profit of these in the current term”
Source: METI, “Basic Survey on Overseas Business Activities”
Dividend taxation serves as an
obstacle
5.9
Domestic business
environment is deteriorating
Source: METI data (January 2011)
55
60 䠄䠂䠅
25.4
n=169
(Current status of overseas technology licensing/transfer (1))
Many companies argue that they will transfer their core technologies overseas with propriety given to business
chances, even though it is less likely that technical leakage preventive programs will be put in place. However, since
technical leakage occurs at almost a half of the companies that have transferred their core technologies overseas,
companies should enhance their awareness about creation of black boxes. Companies with favorable business
performance tend to have stronger awareness of creating black boxes at their overseas plants to which they have
transferred their core technologies.
[Chart 2-88: Basic stance on overseas transfer of core technologies in the future]
2.5%
Planning
overseas transfer after taking
ᢏ⾡ὶฟ㜵Ṇᥐ⨨䜢ㅮ䛨䛶䛛
technical leakage preventive actions
[Chart 2-90: Management of overseas plants to which core technologies
are transferred (by business performance category)]
䜙⛣⟶
2.0% 13.6%
20.7%
Planning
overseas transfer with focus
┠ฎ䛜䛯䛯䛺䛟䛶䜒䝡䝆䝛䝇
on business opportunities, even
䝏䝱䞁䝇䜢ඃඛ䛧䛶⛣⟶
through
technical leakage preventive
programs are not put in place
ᢏ⾡ὶฟ㜵Ṇ䛻㛵ಀ䛺䛟䝡䝆
Planning
overseas transfer if there is
business opportunity, regardless of
䝛䝇䝏䝱䞁䝇䛜䛒䜜䜀⛣⟶
technical leakage preventive program
Companies with
profit growth
(n=99)
Planning
no technological transfer in
௒ᚋ䛿ᢏ⾡⛣⟶䛧䛺䛔
the future
61.1%
Companies with
profit remaining flat
(n=29)
Other
䛭䛾௚
(n=198)
Source: METI data (January 2011)
[Chart 2-89: Technological leakage at companies with overseas operations]
Technological leakage will never occur because we have created black boxes
Technological leakage will occur to a certain extent, although we have created black boxes
We don’t take special actions, and technological leakage will occur to a certain extent
Other
Remarks: “Companies with profit growth (or drop)” means that operating
profit has increased (or decreased) by 5% or more since the
Lehman Brothers shock.
Companies that have
transferred core
technologies overseas
(n=220)
Source: METI data (January 2011)
Companies without
overseas transfer of core
technologies
(n=217)
Technological leakage occurs
Technological leakage is not confirmed, but it
would have occurred
Technological leakage has never occurred
Not sure
Source: METI data (January 2011)
56
(Current status of overseas technology licensing/transfer (2))
Technological leakage occurs through locally hired employees or products on sale in most cases. A black box
is created by the following approaches: “Restricting local staff’s access to information”; “Managing core
parts/materials information as trade secret”; and “Exporting production equipment from Japan by sealing off
knowhow in the equipment.” It is necessary to take further actions in the future.
[Chart 2-91: Pathways of technological leakage]
0
20
Japanese staff
(other than engineers/researchers)
3.5
52.8
Locally hired staff
30
22.8
Parts
18.9
13
0.4
Exporting production equipment from Japan by
sealing off knowhow in the equipment
35.9
20.5
19.2
Placing split orders to multiple production bases
or partner firms by dividing drawings
2.4
Data leakage
37.2
Keeping secrecy as knowhow, rather than
protection by patent
19.3
Production equipment
䡊䠙254
䠄䡊=254䠅
6.4
Sealing off knowhow or core technologies by
protecting core parts with semiconductor chips
3.8
Reviewing designs of product shape/functions to
prevent imitation
3.8
Other
40 䠄䠂䠅
38.5
Setting up “off limit zones” accessible only by
authorized personnel
44.5
Products on sale
Data disclosure by overseas
government’s intervention
20
Managing core parts/materials information as
trade secret
17.3
Data owned by partner firm
10
Restricting local staff’s access to information
Japanese retirees
Exhibitions
0
60䠄%䠅
40
8.3
Japanese staff (engineers/researchers)
[Chart 2-92: How to create black boxes]
5.1
Source: METI data (January 2011)
(n=78)
Source: METI data (January 2011)
[Column: Preventing technological leakages through a series of
innovations]
In addition to traditional technological leakage preventive
actions for overseas production, such as “Don’t bring out
drawings” or “Never bring out core technologies,” Tokyo
Electron Ltd. indirectly prevents leakage of state-of-the-art
technologies/knowhow by continuing state-of-the-art R&D
projects at home so that technologies for overseas production
will be made one generation older.
[Column: Utilizing local human resources and preventing technological
leakage]
When hiring new university graduates for the China plant, Morita Chemical
Industries, Co., Ltd. only employs job seekers that have no connection with
other firms. In addition, the company hires company staff from areas outside
plant locations that have only remote relationship with external communities.
Furthermore, Morita Chemical intentionally avoids automation of some
production processes to make technical transfer more difficult. By taking
these actions, the company achieves both goals of utilizing local human
resources and preventing technical leakages.
57
(Importance of global human resources)
Companies tend to show better business performance if their employees take more active stances on working
overseas. Employees will become more active in working overseas if the company grants stronger rights to overseas
workers. Since hiring alien executive officers will yield positive impacts, such as favorable effects on precinct peers or
utilization of human networks, companies with foreign executive officers tend to show better business performance.
[Chart 2-93: Willingness to work overseas vs. company’s business performance]
[Chart 2-95: Effects of hiring foreign executive officers]
0
10
20
Positive impacts on business
performance because he/she
is talented
More willing
(n=56)
35.1
Utilizing wider human network,
and expanding overseas
business operations
Passive
(n=39)
Companies with profit
remaining flat
7.1
䠄䡊䠙253䠅
Source: METI data (January 2011)
Source: METI data (January 2011)
[Chart 2-94: Business rights overseas vs. willingness to work overseas]
[Chart 2-96: Employment of foreign candidates for executive officers (by
business performance category)]
Stronger business
rights for overseas
workers
(n=56)
Companies with
profit growth
(n=79)
No change
(n=105)
Companies with profit
remaining flat
(n=53)
Weaker business
rights
(n=39)
More willing
25.8
No specific impacts
Companies with
profit drop
40 䠄%䠅
27.4
Positive impacts on
precinct peers
No preference
(n=105)
Companies with
profit growth
30
No preference
Companies
with profit drop
(n=73)
Passive
Remarks: “Companies with profit growth (or drop)” means that operating profit
has increased (or decreased) by 5% or more for the past 5 years.
Source: METI data (January 2011)
Already employed
(foreigners as executive officer candidates)
58
Source: METI data (January 2011)
None
Chapter 3: Fostering Human Resources that will Play Important Roles in Monodzukuri Industries in Japan
Section 1: Current status and problems of fostering human resources that will serve Monodzukuri industries in the future
1. Current status of securing younger human resources that will play important roles in the future
(Hiring full-time younger engineers)
Ninety percent of large corporations have employed new graduates as full-time engineers for the past 3 years, while
mid-50䠂 of SMEs did so in the same period, suggesting a gap depending on corporate size. On the other hand, there is
almost no corporate size gap in hiring mid-career workers younger than 35 years old (mid-career recruiting of younger
staff), because 60% of both large corporations and SMEs have employed such workers.
SMEs are less satisfied with both the quantity and quality of newly employed they have hired for the past 3 years than
large corporations.
As for basic stance on hiring young full-time engineers for the past 3 years, 80% of large corporations put focus on
“recruiting new graduates,” while SMEs are more dependent on mid-career recruiting. Mid-40%㻌 of SMEs focus on
hiring new graduates, and more than 50% of SMEs put main focus on mid-career employment.
[Chart 3-1: Have you hired full-time engineers
in the past 3 years?]
[Chart 3-3: Basic stance on recruiting full-time
engineers for the past three years
(on the basis of corporate size)]
[Chart 3-2: Concepts for recruiting/hiring full-time
engineers for the past three years
(on the basis of corporate size)]
(Employment of new graduates)
ồே䛻ᑐ䛩䜛ᛂ
ồே䛻ᑐ䛩䜛ᛂ
ເ䛜ᑡ䛺
䛔䞉䞉䞉䞉䞉䞉䞉
ເ䛜ᑡ䛺䛔䞉
0%
Fewer
SMEs
applicants are୰ᑠ௻ᴗ
showing up than
anticipated
Large
኱௻ᴗ
corporations6.4
SMEs
Large
corporations
(Employment of mid-career workers)
Unable to hire
୰ᑠ௻ᴗ
SMEs
human
resources with
the skill level
Large
we need
኱௻ᴗ
corporations
SMEs
Large
corporations
Yes, we have.
20%
We recruited new staff,
but did not employ applicants.
We did not recruit
new staff.
No
response
Source: The Japan Institute for Labour Policy and Training, “Survey on
Fosterage and Capacity Building of Younger Engineering Staff (in 2010)”
I agree.
19.3
40%
60%
27.1
80%
20.9
100%
0%
31.8
22.5
36.4
I tend to agree.
I tend not to agree.
18.3
35.8
I don't agree.
12.0
13.3
No response
Source: The Japan Institute for Labour Policy and Training, “Survey on
Fosterage and Capacity Building of Younger Engineering Staff (in 2010)”
59
60%
80%
100%
26.1
19.3
26.3
26.3
34.7
42.6
13.3
40%
27.8
SMEs
26.0
20%
Large
corporations
58.9
22.2
9.4 6.7
Mainly recruiting new university/high school graduates
Recruiting mid-career workers, rather than new graduates
Recruiting new graduates, rather than mid-career workers
Mainly recruiting mid-career workers
No response
Source: The Japan Institute for Labour Policy and Training,
“Survey on Fosterage and Capacity Building of Younger
Engineering Staff (in 2010)”
(Status of young part-time engineers)
Almost 60% of large corporations have young nonpermanent workers serving for Monodzukuri, while only a
little more than 30% of SMEs employ such nonpermanent workers.
Almost 70% of large corporations as well as a little more than 50% of SMEs have internal programs to appoint
young nonpermanent workers as full-time permanent workers. When appointing young nonpermanent workers
as full-time staff, both large corporations and SMEs attach a high value to “willingness for his/her tasks,”
“skill/knowledge level,” and “on-the-job performance so far.”
* “Nonpermanent worker” means “part-time staff” or full-time contract employee called “fixed-term plant worker,” “seasonal plant worker,” or
“contract worker.” It does not include employees without direct employment relations, such as “temporary workers” or “contract-based
workers.”
[Chart 3-4: Do you have young nonpermanent engineers?]
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
[Chart 3-6: Important factors for appointing nonpermanent engineers
as full-time staff (multiple answers allowed)]
0.0
32.9
SMEs
65.1
10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
௙஦䛻ᑐ䛩䜛ពḧ
Willingness
for his/her tasks
75.6
66.9
Skill/knowledge level
⬟䞉▱㆑䛾䝺䝧䝹
Large
corporations
57.5
Yes
䛔䜛
41.5
No
䛔䛺䛔
On-the-job
performance so far
Ⓩ⏝᫬䜎䛷䛾ᐇ⦼
20%
30%
40%
50%
60%
70%
80%
Age
ᖺ㱋
90%
100%
16.2
36.6
7.5
32.2
7.5
Other
䛭䛾௚
38.3
Yes
䛒䜛
No, but they might be appointed as full-time staff as a matter of business
ไᗘ䜒័⾜䜒䛺䛔䛜䚸ไᗘ䛾タ⨨䜢᳨ウ୰
practice.
29.5
6.2
21.8
4.1
No. We don’t have such business practice, either. We are not examining
ไᗘ䛿䛺䛔䛜䚸័⾜䛸䛧䛶ṇ♫ဨ䛻Ⓩ⏝䛥䜜䜛䛣䛸䛜䛒䜛
the feasibility of setting up such a scheme.
No
response.
ไᗘ䞉័⾜䛸䜒䛺䛟䚸ไᗘ䛾タ⨨䜒᳨ウ䛧䛶䛔䛺䛔
No. We don’t have such business practice, either, but we are examining
↓ᅇ⟅
the feasibility of setting up such a scheme.
Source: The Japan Institute for Labour Policy and Training,
“Survey on Fosterage and Capacity Building of Younger Engineering Staff (in 2010)”
60
70.2
53.4
40.5
1.7
1.5
1.0
0.8
No ↓ᅇ⟅
response
Large
኱௻ᴗ
corporations
76.3
18.4
19.1
12.5
16.8
10.9
20.6
Service years before
᫬䜎䛷䛾໅⥆ᮇ㛫
getting promoted
Academic qualifications
ᏛṔ
SMEs
୰ᑠ௻ᴗ
29.1
Promising outlook after
Ⓩ⏝ᚋ䛾ᑗ᮶ᛶ
getting promoted
Adaptable to change in tasks or
䛻ᛂ䛨䜙䜜䜛䛣䛸
job titles
[Chart 3-5: Do you have an internal scheme to appoint nonpermanent
engineers as full-time staff?]
10%
44.2
Cooperativeness
༠ㄪᛶ
No response
↓ᅇ⟅
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)
0%
49.5
SMEs
୰ᑠ௻ᴗ
82.6
7.7
8.4
Large corporations
኱௻ᴗ
Source: The Japan Institute for Labour Policy and Training,
“Survey on Fosterage and Capacity Building of Younger Engineering Staff (in 2010)”
2. Current status of fosterage and developing abilities of young human resources that play important
roles in the future
(Evaluation of skill level of young full-time engineers)
More than a half of large corporations and SMEs are satisfied with skill level of young full-time engineers, saying
young full-time engineers have “better skills than expected” in terms of “comprehension,” “job performance
abilities,” “sense of responsibility,” “expertise/skills in tasks in charge,” “ability to make judgments,” “challenging
spirit,” and “communication skills.” But SMEs are generally less satisfied with their staff’s abilities, including the
aforementioned skill categories, and give lower evaluations than large corporations.
Both large corporations and SMEs would like their young full-time engineers to acquire “job performance
abilities,” “challenging spirit,” “expertise/skills in tasks in charge,” “sense of responsibility,” and “communication
skills” in many cases. These skill categories correspond to young full-time engineers’ abilities that companies
are highly satisfied with, suggesting that they attach a high value to these skill factors.
[Chart 3-7: Evaluation on average level of young full-time engineers
(on the basis of corporate size)]
Comprehension
Job performance abilities
[Chart 3-8: Desirable/important skills that young full-time engineers should
have (on the basis of corporate size) (two answer choices selected)]
0.0
SMEs
Job performance abilities
SMEs
௙஦䛾㐙⾜⬟ຊ
Large corporations
Sense of responsibility
Willingness of job accomplishment and challenging
spirits
㐩ᡂពḧ䞉䝏䝱䝺䞁䝆⢭⚄
SMEs
Large corporations
Expertise/skills in tasks in charge
Expertise/skills in tasks in charge
ᢸᙜᴗົ䛻ᚲせ䛺ᑓ㛛▱㆑䞉ᢏ⬟
Sense of responsibility
㈐௵ឤ
Communication
skills
䝁䝭䝳䝙䜿䞊䝅䝵䞁⬟ຊ
Conceptual/planning
abilities
Ⓨ᝿ຊ䞉❧᱌ຊ
Ability
to cope with trouble
䝖䝷䝤䝹䛻ᑐฎ䛩䜛⬟ຊ
Extensive knowledge on related tasks and company㛵㐃ᴗົ䜔඲♫ᴗົ䛻㛵䛩䜛ᖜᗈ䛔▱㆑
wide tasks
Ability to make judgments
ุ᩿ຊ
Leadership
䝸䞊䝎䞊䝅䝑䝥
Comprehension
⌮ゎຊ
No ↓ᅇ⟅
response
SMEs
Large corporations
Ability to make judgments
SMEs
Large corporations
Willingness of job accomplishment
and challenging spirit
SMEs
Communication skills
SMEs
Large corporations
Large corporations
Ability to cope with trouble
SMEs
Large corporations
Conceptual/planning abilities
SMEs
Large corporations
Leadership
SMEs
Large corporations
Extensive knowledge on related
tasks and company-wide tasks
5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
Large corporations
SMEs
Large corporations
They have better skills than expected.
They have skills almost at the expected level.
They have lower skills than expected.
SMEs
୰ᑠ௻ᴗ
They have slightly better skills than expected.
They have slightly lower skills than expected.
No response
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)”
Large corporations
኱௻ᴗ
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)”
61
(Projects for fosterage and developing abilities of young full-time engineers)
Both large corporations and SMEs attach a high value to “on-site directly-connected” projects, such as “making
use of work standard documents” or “systematic OJT,” but SMEs are showing less appetite for these projects
than large corporations. On the other hand, almost 60% of large corporations are providing “Off the Job
Training, such as training sessions” outside production sites, while only a little more than 30% of SMEs are
working on these projects. In addition, a little more than 50% of large corporations are supporting workers’ selfdevelopment activities, while approximately 30% of SMEs are providing such support, suggesting that SMEs
are weaker in off-site projects than large corporations.
However, a lot of firms, including those currently not providing Off the Job Training, evaluate importance of Off
the Job Training and intend to provide Off the Job Training so that their staff will “acquire expertise/skills
necessary for their tasks.”
[Chart 3-10: Will you increase your Off the Job Training from the current level in order to foster or
develop abilities of young full-time engineers
(on the basis of corporate size)?]
[Chart 3-9: Corporate efforts for fostering and developing abilities of young
full-time engineers (on the basis of corporate size) (multiple answers
allowed)]
0.0
10.0
20.0
30.0
40.0
50.0
Task-test based training based on incremental increases in difficulty
48.2
37.1
Making them experience major tasks that they are mainly responsible for as
well as other related tasks on a rotational basis.
27.4
Supporting self-development activities (spontaneously developing/improving
occupational skills, such as studying in correspondence courses, purchasing
textbooks, participating in seminars)
13.7
Making them venture on new tasks
We would like to do
so.
68.4
We would like to increase
these programs slightly.
We will keep the current
programs.
We would like to decrease
these programs slightly.
We would like to
decrease these
programs.
0.0
10.0
20.0
30.0
40.0
50.0
௙஦䜔సᴗ䜢䝇䝮䞊䝈䛻㐍䜑䜛ୖ䛷ᚲせ䛺 ᑓ㛛▱㆑䞉ᢏ⬟䜢⩦ᚓ䛥䛫
Learning expertise/skills necessary for smoothly carrying on their duties or tasks
䜛䛯䜑䛾䜒䛾
㸲㹑㸦ᩚ⌮䞉ᩚ㡻䞉Ύᤲ䞉Ύ₩䠅䛺䛹䚸௙஦䜢䛩䜛䛖䛘䛷ᇶᮏⓗ䛺ᚰᵓ䛘
Learning
basic mindset for duties, such as orderly arrangement, cleaning, and
cleanliness
䜢㌟䛻䛴䛡䛥䛫䜛䛯䜑䛾䜒䛾
56.5
52.3
௙஦䛻㛵㐃䛧䛯㈨᱁䜢ྲྀᚓ䛩䜛䛯䜑䛾䜒䛾
Gaining qualifications related with tasks
OJTsystematic
䛷䛿⩦ᚓ䛜㞴䛧䛔య⣔ⓗ䛺▱㆑䞉ᢏ⬟䜢⩦ᚓ䛥䛫䜛䛯䜑䛾䜒䛾
Learning
knowledge/skills that are difficult to learn through OJT
59.1
ᢸᙜ䛩䜛ᴗົ䛸㛵㐃䛩䜛ᢏ⾡ศ㔝䛻䛴䛔䛶Ꮫ⩦䛥䛫䜛䛯䜑䛾䜒䛾
Learning technical fields related with tasks in charge
20.2
᪂䛯䛻ᑟධ䛥䜜䛯(ᑟධணᐃ䛾)タഛᶵჾ➼䛾᧯స᪉ἲ䛻㛵䛩䜛▱㆑䞉
Learning
knowledge/skills on operation procedures for facilities/equipment
newly installed (or scheduled to be installed)
ᢏ⬟䜢⩦ᚓ䛥䛫䜛䛯䜑䛾䜒䛾
䜾䝹䞊䝥䞉䝕䜱䝇䜹䝑䝅䝵䞁䚸
䝵䝑䝥䛺
䛹䛾ᙧᘧ䛷ᵝ䚻䛺ㄢ㢟䛻
Examining
various problems in䝽䞊䜽䝅
the formats,
such
as group discussions or
workshops
䛴䛔䛶᳨ウ䛧䛶䛔䛟䜒䛾
2.2
0.0
1.5
0.0
䛭䛾௚
Other
ຊ䜢ධ䜜䛶ྲྀ䜚⤌䜏䛯䛔䜒䛾䛿≉䛻䛺䛔
We have no intention
to put emphasis on specific programs
SMEs
No
response.
[Chart 3-11: Which Off the Job Training would you like to put more emphasis on in the
future (on the basis of corporate size) (multiple answers allowed)?]
44.6
23.8
Small group activities or other activities, such as QC group, at the workplace
Large corporations
69.4
34.4
Supplemental training, such as training sessions (Off the job training
sessions away from the workplace)
SMEs
70.5
43.0
Encouraging them to make improvements/suggestions at the workplace
80.0
56.4
46.6
Proceeding with OJT in line with our plans by designating the instructors
No response
70.0
51.1
Fostering our young engineers by using operation standard documents and
job procedures
Not providing any project as listed in 1 to 9 above
60.0
Large corporations
↓ᅇ⟅
No response
୰ᑠ௻ᴗ
SMEs
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)”
኱௻ᴗ
Large
corporations
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)”
62
60.0
70.0
(Framework for fostering/developing abilities of young full-time engineers)
Most companies are intending to foster/develop abilities of young full-time engineers “under the initiative of
production site” and “under the company’s responsibilities.”
However, SMEs without training sessions for work-site managers/supervisors in charge of fosterage occupy
the largest group. This suggests that companies intend to foster/develop abilities of young full-time engineers
“under the initiative of production site”, but SMEs only have limited capacities to do so.
[Chart 3-12: Who is responsible for fostering/developing abilities of young
full-time engineers (on the basis of corporate size)?]
(Who
is responsible?)
䠄㈐௵䛾ᡤᅾ䠅
0%
10%
20%
30%
40%
18.5
SMEs
୰ᑠ௻ᴗ
Large
኱௻ᴗ
corporations
50%
62.2
20%
30%
40%
90%
100%
0.0
50%
17.6
60%
70%
80%
52.0
19.7
60.6
⌧ሙ୺ᑟ䛷㐍䜑䜛
On
production-site’s initiatives
It
is mostly the initiatives of personnel/labor sections.
ே஦䞉ປົ㒊㛛䛺䛹䜢୰ᚰ䛻㐍䜑䜛䚸䛻㏆䛔
No
response
↓ᅇ⟅
20.0
30.0
90%
25.0
19.0
㒊ୗ䛾ᩍ⫱䛻㛵䛩䜛㡯┠䜢⟶⌮⪅䞉┘╩⪅
Evaluating how well managers/supervisors are doing
in educating their junior staff
䛾ホ౯㡯┠䛸䛩䜛
100%
8.9
It is mostly the production-site’s initiatives.
⌧ሙ୺ᑟ䛷㐍䜑䜛䚸䛻㏆䛔
On initiatives of personnel/labor sections.
ே஦䞉ປົ㒊㛛䛺䛹䜢୰ᚰ䛻㐍䜑䜛
No ↓ᅇ⟅
response
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)”
SMEs
୰ᑠ௻ᴗ
31.1
1.5
1.0
⟶⌮⪅䞉┘╩⪅䜢ᑐ㇟䛸䛧䛯ྲྀ⤌䜏䛿≉䛻
No specific action for managers/supervisors
䛿⾜䛳䛶䛔䛺䛔
17.1
3.2
1.6
Large corporations
኱௻ᴗ
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and Capacity
Building of Younger Engineering Staff (in 2010)”
63
50.0
48.7
47.7
6.7
8.3
⟶⌮⪅䞉┘╩⪅䛻䚸㒊ୗ䛾ᩍ⫱䛻䛴䛔䛶䛾
Providing manuals for education of their junior staff
to managers/supervisors
䝬䝙䝳䜰䝹䜢㓄ᕸ
17.6
40.0
32.5
Providing training sessions on
㒊ୗ䛾ᩍ⫱䞉⟶⌮䛻㛵䛩䜛◊ಟ
education/management of their junior staff
Other
䛭䛾௚
Large
኱௻ᴗ
corporations
10.0
⟶⌮⪅䞉┘╩⪅䛻㒊ୗ䛾⫱ᡂィ⏬䜢❧䛶䛥
Making managers/supervisors develop human
resources development
䛫䜛plans for their junior staff
It௻ᴗ䛾㈐௵䛷㐍䜑䜛䚸䛻㏆䛔
is mostly the company’s responsibility.
Workers
are responsible.
ᚑᴗဨಶ䚻ே䛾㈐௵䛷㐍䜑䜛
36.1
SMEs
୰ᑠ௻ᴗ
80%
23.6
The
company is responsible.
௻ᴗ䛾㈐௵䛷㐍䜑䜛
Itᚑᴗဨಶ䚻ே䛾㈐௵䛷㐍䜑䜛䚸䛻㏆䛔
is mostly the worker’s own responsibility.
No
response
↓ᅇ⟅
10%
70%
54.3
18.1
(Section that
plays
leading
䠄୺ᑟ䛩䜛㒊⨫䠅
roles)
0%
60%
[Chart 3-13: What do you do for work-site managers/supervisors in charge
of fosterage for young full-time engineers (on the basis of corporate size)
(multiple answers allowed)?]
37.3
(Is fostering and developing abilities of young full-time engineers proceeding successfully?)
More than 60% of companies evaluate affirmatively, saying it is “proceeding successfully” or “proceeding
successfully to a certain extent.” However, affirmative evaluation SMEs register a lower percentage than large
corporations evaluating affirmatively.
Many companies point out that their human resource development and capacity development programs are
unsuccessful because “they don’t have enough middle-ranking workers responsible for human resource
development” or “they only have insufficient know-how on effective educational training programs.” Mid-30㸣 of
SMEs point out “weak motivation among young full-time staff,” but only 10% of large corporations recognize it
as a reason for failure, suggesting a clear gap between SMEs and large corporations.
[Chart 3-14: Are you successful in fostering and developing the
abilities of young full-time engineers (on the basis of corporate size)?]
0%
20%
40%
60%
80%
[Chart 3-15: Reasons you are unsuccessful in fostering and developing the
abilities of young full-time engineers (on the basis of corporate size) (multiple
answers allowed)]
0.0
100%
20.0
40.0
60.0
We don’t have enough middle-ranking workers
⫱ᡂ䜢䛻䛺䛖୰ሀᒙ䛾ᚑᴗဨ䛜୙㊊䛧䛶䛔䜛䛛
responsible for fostering younger engineers.
SMEs 4.1
୰ᑠ௻ᴗ
Large
኱௻ᴗ
corporations
7.8
Successful
Not successful so much
No response
30.8
61.2
73.6
18.7
Successful to a certain extent
Not successful at all
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage
and Capacity Building of Younger Engineering Staff (in 2010)”
58.5
䜙
We have insufficient know-how on effective educational
ຠᯝⓗ䛻ᩍ⫱カ⦎䜢⾜䛖䛯䜑䛾䝜䜴䝝䜴䛜୙㊊
training programs.
䛧䛶䛔䜛䛛䜙
Younger and full-time staff are not willing to learn new
ⱝᖺ䞉ṇ♫ဨ䛻᪂䛧䛔ᢏ⬟䜔▱㆑䜢㌟䛻䛴䛡䜘䛖
skills/knowledge.
䛸䛔䛖ពḧ䛜䛺䛔䛛䜙
We don’t have many young full-time engineers newly
᪂䛯䛻〇㐀⌧ሙ䛻㓄ᒓ䛥䜜䜛ⱝᖺᢏ⬟⣔ṇ♫ဨ
assigned to production sites.
䛜ᑡ䛺䛔䛛䜙
Our
work
volume
is
too
high
in relation to the number of
⫋ሙ䛾ᚑᴗဨ䛾ᩘ䛻ẚ䜉䛶௙஦䛾㔞䛜ከ䛩䛞䜛
our staff members at the workplace.
䛛䜙
Our staff members are expected to show successful
ᚑᴗဨ䛜▷ᮇⓗ䛺ᡂᯝ䜢ồ䜑䜙䜜䜛䜘䛖䛻䛺䛳䛶
outcomes in the short run.
䛔䜛䛛䜙
We don’t have adequate budget/facilities for training
ᚑᴗဨᩍ⫱䛾䛯䜑䛾ண⟬䜔᪋タ䛜୙㊊䛧䛶䛔䜛
activities for our staff members.
䛛䜙
It
is
difficult
to
assign
young
full-time engineers to tasks
⫱ᡂ䞉⬟ຊ㛤Ⓨ䛻䛴䛺䛜䜛௙஦䛻ⱝᖺ䞉ṇ♫ဨ䜢
that will lead to fostering/developing their abilities.
㓄⨨䛩䜛䛣䛸䛜㞴䛧䛔䛛䜙
Experienced
staff are unable to give instructions because
ᢏ⾡㐍Ṍ䛾㏿䛥䛻䝧䝔䝷䞁ᚑᴗဨ䛜䛴䛔䛶䛔䛳
they fail to catch up with new innovation.
䛶䛚䜙䛪䚸ᣦᑟ䛷䛝䛺䛔䛛䜙
Others
䛭䛾௚
No response
↓ᅇ⟅
44.6
11.1
22.2
19.4
18.7
28.9
33.3
30.6
15.1
11.1
14.1
19.4
5.6
11.1
3.0
0.0
0.8
0.0
SMEs
୰ᑠ௻ᴗ
64
52.8
35.6
Large corporations
኱௻ᴗ
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and
Capacity Building of Younger Engineering Staff (in 2010)”
80.0
69.4
(Education/training and career formation support for nonpermanent engineers)
A lot of SMEs and large corporations are “encouraging improvement proposals or QC circles” or working on
“systematic OJT” or “new hires internal training sessions” for young nonpermanent engineers. On the other
hand, only a few companies are providing off-site programs, such as “outside training sessions,” “support for
self-development activities,” or “consultation of career.”
[Chart 3-16: Education/training/ career formation support for young nonpermanent engineers]
Encouraging improvement
proposals or QC circles
Systematic OJT
SMEs
Large corporations
SMEs
Large corporations
New hires internal training
sessions
Periodic internal training sessions
SMEs
Large corporations
SMEs
Large corporations
Outside training sessions
SMEs
Large corporations
Encouraging/supporting selfdevelopment
Consultation of career
SMEs
Large corporations
SMEs
Large corporations
Target is set at all of young
nonpermanent workers.
Target is set at a part of young nonpermanent
workers.
Source: The Japan Institute for Labour Policy and Training, “Survey on Fosterage and
Capacity Building of Younger Engineering Staff (in 2010)”
65
We do not provide such a
program.
No response
3. Problems and possible solutions in fostering young human resources that will play important roles in
the future
Companies recognize that fostering/developing abilities of young full-time engineers are generally proceeding
successfully, but it is necessary to provide support for SMEs so that SMEs will secure young full-time engineers
and enhance their fosterage/skill development programs for the on-site workforce.
(Pushing ahead with SME programs for hiring new graduates human resources)
New graduates are facing difficulty in finding job opportunities. However, SMEs are unable to hire new
graduates that they wish to foster as their core human resources in the future. As for final academic background
of new graduates that SMEs hire, new university graduates occupy a very low percentage because SMEs are
rather low-profile.
It is important that university students and high school students, including technical high school students, as well
as SMEs in the local communities get to know one another. It would be very meaningful to provide daily
information services among local high schools, universities, job-seeking students, and SMEs as well as
counseling services from Job supporters Hello Work, hold job-placement interview sessions for local SMEs, and
making efforts at appropriate matching services through utilizing internships.
(Enhancing human resource fosterage and skill development programs at SMEs)
By exchanging information with manufacturers at regular intervals, public vocational training facilities will provide
“workers’ training programs, such as custom-made practices in manufacturing industries,” which give local SME
workers opportunities to acquire advanced skills/knowledge, and provide “support, including instructor
dispatching services for developing effective training programs and counseling/supporting vocational training
instruction services.” As “shortage of middle-ranking workers responsible for human resource development” or
“insufficient knowhow on effective educational training programs” becomes a bottleneck for human resources
fosterage or skill development, it is very meaningful to provide support such as dispatching instructor, or
developing/implementing educational/training curriculum for SMEs intending to launch new businesses. It is
important to further get across related information among SMEs and encourage them to utilize our support
services suitable to the needs of individual SMEs.
66
Workers’ training programs, where custom-made versions are also available, represent appropriate Off the
Job Training opportunities. Most manufacturers using “career development promotion subsidy,” which grants
subsidies for financing Off the Job Training or self-development support programs, evaluate that the subsidy
program has led to training sessions or competence assessment for their employees. By further getting
across the information on this subsidy program as well as workers’ training programs and encouraging to
utilize them, it is important to push ahead with Off the Job Training and self-development activities at SMEs.
[Chart 3-17: How much are manufacturers utilizing the career development promotion
subsidy (in the manufacturing industry; on the basis of corporate size)?]
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
SMEs
୰ᑠ௻ᴗ
Large
኱௻ᴗ
corporations
19.2
100%
80.6
15.6
84.4
We have used the subsidy
฼⏝䛧䛯䛣䛸䛜䛒䜛
program.
We have not used the
฼⏝䛧䛯䛣䛸䛿䛺䛔
subsidy program.
Unknown
୙᫂
Source: Ministry of Health, Labour and Welfare, “Basic Survey of Human Resources Development (in 2010)”
[Chart 3-18: Has the career development promotion subsidy led to training sessions or competence assessment?]
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SMEs
୰ᑠ௻ᴗ
96.9
3.1
Large
኱௻ᴗ
corporations
97.4
2.6
Yes,
it has.
䛴䛺䛜䛳䛯
No, it hasn’t. program.
䛴䛺䛜䜙䛺䛛䛳䛯
Source: Ministry of Health, Labour and Welfare, “Basic Survey of Human Resources Development (in 2010)”
67
(Creating/utilizing an appropriate framework that objectively indicates vocational abilities)
SMEs are heavily dependent on recruitment of young mid-career workers with some work experience and appoint
nonpermanent workers as full-time staff based on their skills/knowledge and job performance. In this sense, it is significantly
important to conduct and utilize job performance evaluation, which objectively identifies the skill level of each staff member. As
effective tools for job performance evaluation, it is important to encourage corporations to deeply recognize/understand and
actively utilize the following programs: qualification programs, such as “National trade skill tests”; and “Vocational capability
evaluation standard,” which organize necessary occupational skills/knowledge for each industry.
In addition, it is also important to “make visible” vocational abilities (skills) level of each staff member as well as their work
experience and past records of human resource fosterage and capacity development efforts. Providing career consulting
services by utilizing the “Job-Card,” a tool for making visible these factors, will yield further positive impacts. If young workers
record their Off the Job Training or self-development activities on their Job-Card and work on their tasks by checking out their
Job-Card with their manager/supervisor, young staff will get more motivated or willing to improve their abilities.
If an increasing number of companies set up and utilize their internal capability evaluation standard for personnel evaluation
purposes by taking the opportunity of introducing the “Job-Card” system employment training program, vocational abilities will
be enhanced on an industry-wide scale. For this reason, it is significantly meaningful to encourage corporations to deeply get
across/understand the Job-Card system.
[Chart 3-19: What kind of qualifications do you use for vocational
capability evaluation purposes (in the manufacturing industry; on the basis
of corporate size) (multiple answers allowed)?]
0.0
[Chart 3-20: How to use vocational capability evaluation
(multiple answers allowed)]
0.0
10.0 20.0 30.0 40.0 50.0 60.0 70.0
Public qualification programs certified by the central
ᅜ䚸ᅜ䛾㛵ಀᶵ㛵䚸ᆅ᪉⮬἞య䛺䛹䛜ㄆ
government,
its related organizations, or local government
(other than National trade skill tests)
ᐃ䛩䜛බⓗ㈨᱁䠄ᢏ⬟᳨ᐃ௨እ䠅
20.0
40.0
60.0
80.0
100.0
Decision-making data for personnel evaluation
ே஦⪃ㄢ䛾ุ᩿ᇶ‽
purpose
Optimalேᮦ㓄⨨䛾㐺ṇ໬
personnel allocation
National tradeᢏ⬟᳨ᐃ
skill tests
Target of necessary
skill development for workers
ປാ⪅䛻ᚲせ䛺⬟ຊ㛤Ⓨ䛾┠ᶆ
Private-sector qualifications certified by a private
Ẹ㛫ᅋయ䛜ㄆᐃ䛩䜛Ẹ㛫㈨᱁
organization
Methods
of technical succession
ᢏ⬟⥅ᢎ䛾䛯䜑䛾ᡭẁ
Internal qualification
program certified by employer
஦ᴗ୺➼䛜ㄆᐃ䛩䜛♫ෆ㈨᱁
Human resource
recruiting
ேᮦ䛾᥇⏝
Developing human ேᮦᡓ␎䞉ィ⏬䛾⟇ᐃ
resource strategies/plans
Other
䛭䛾௚
Other
䛭䛾௚
Not certain
୙ ᫂
SMEs
୰ᑠ௻ᴗ
Not certain
୙ ᫂
Large corporations
኱௻ᴗ
SMEs
୰ᑠ௻ᴗ
Source: Ministry of Health, Labour and Welfare, “Basic Survey of Human Resources Development (in 2010)”
Large corporations
኱௻ᴗ
Source: Ministry of Health, Labour and Welfare, “Basic Survey of Human Resources Development (in 2010)”
68
Section 2: Monodzukuri-related human resources development policies
(Public vocational training)
As there are few private-sector vocational training organizations in the manufacturing sector, including the automobile,
electrical equipment, and machinery industries, public vocational training is expected to play a particularly important
role.
“Workers’ training programs” are designed to train highly skilled workers capable of serving as the core human
resources of Monodzukuri industries in the future by providing sophisticated machineries used at manufacturing sites
and setting up appropriate courses on high-level knowledge/skills in a wide variety of fields, such as addressing
technological innovations or improving/upgrading production processes.
In particular, training people who have quit jobs is an important public vocational training program to provide security
and safety in the daily life of Japanese citizens as the safety net of employment. And this training program is also
quickly and flexibly utilized a sharp rise in unemployed workers due to rapid recessions these days.
[Chart 3-21: Outline of public vocational training programs]
The central and prefectural governments are providing public vocational training programs for unemployed workers, employed workers,
and university graduates.
* Responsibilities of the central and prefectural governments: “give vocational training to workers who want to change their jobs, and who
need special assistance to their vocational abilities development and improvement.” (Article 4.2 of the Human Resources Development
Promotion Act)
Unemployed workers’
training program
(1) Participants: Job seekers at Hello Work
(free of charge (but participants must pay
actual cost, including textbook cost.))
(2) Training period: Generally from 3 months to
1 year
(3) Examples of main training courses
(Examples of Japan Organization for
Employment of the Elderly, Persons with
Disabilities and Job Seekers)
- On-site training courses
Metallic processing section
Electric equipment section, etc.
- Commission-based training courses
OA office work section, accounting task
section, etc.
Employed workers’
training program
(1) Participants: Workers currently employed (paid
training program)
(2) Training period: Generally from 2 to 5 days
(3) Examples of main training courses
(Examples of Japan Organization for
Employment of the Elderly, Persons with
Disabilities and Job Seekers)
- NC lathe practical techniques
- Practical work technologies on private-use
electric apparatus
- Practical designing technologies for barrierfree housing, etc..
69
University graduates
training program
(1) Participants: High school graduates, etc. (paid
training program)
(2) Training period: 1 year or 2 years
(3) Examples of main training course
(Examples of Japan Organization for
Employment of the Elderly, Persons with
Disabilities and Job Seekers)
[Professional courses]
Production technology section, electronic
information technology section, control technology
section, etc.
[Applied courses]
Production machineries system technology section,
construction work system technology section, etc.
<Job-Card system>
Quite a lot of “freeters” (i.e., job-hopping part-timers) have no option but to stay working as nonpermanent
workers, as they fall into a vicious cycle in which they cannot be employed as full-time workers because of a
lack of opportunities to improve their capabilities so as to qualify for a full-time job.
The Job-Card system was launched to guide these workers to stable job opportunities. In April 2011, Job Card
Promotion Council, consisting of labor-management groups and experts, developed the “New National
Promotion Basic Plan.” The program aims to help job seekers obtain a full-time job by (i) raising their
awareness about work through comprehensive career counseling and identifying the issues they face in
career formation, (ii) providing such people with an opportunity for practical vocational training comprising job
training at companies and lectures (Vocational Ability Development Program) and (iii) summarizing training
service providers’ evaluation of their job performance and their job experience in a Job-Card.
The New Growth Strategy (cabinet decision on June 18, 2010) seeks to further promote the Job-Card system
by setting the goal of increasing the number of Job-Card holders to 3 million by 2020.
[Chart 3-22: Outline of Job-Card System]
Outline of the program: The program aims to help job seekers obtain a full-time job by (i) providing comprehensive career counseling services, (ii) giving
practical vocational training and (iii) summarizing evaluation of their job performance and their job experiences in a Job-Card after completing the training course.
Clearly identifying job skills as
well as targets/problems
related with getting employed,
and then using such
information for attending
vocational training program or
making an appeal for job
hunting purposes
3) Public vocational training program (on-site training and commission-type training programs)
z Mainly designed for job seekers entitled to employment insurance benefits
z Providing knowledge/skills necessary for reemployment
z Providing advanced knowledge/skills in the manufacturing field or some other fields
4) Job seeker support training program
z Designed for job seekers not entitled to employment insurance benefits
z Providing various capabilities ranging from basic skills to practical skills
Getting employed without attending
training program
70
Getting employed as a full-time
worker by the company that has
provided the training program
2) Commission-type training (Japanese-version dual system)
z Designed for job seekers who need to acquire practical vocational capabilities
z Commissioning special training schools to provide training sessions
z Training scheme: Practical training on a corporate site (provided by partner firm on re-consignment
basis) + classroom lectures at education and training institutions, etc.
Making clear career
directions by clearly
identifying job abilities
acquired through training
program
Taking a job
Career counselor confirms job
seeker’s wishes on
employment or training
program.
1) Employment-type training
z Designed for job-hopping part-timers or other workers without work experience as full-time worker
z Companies hire trainees and provide training sessions.
z Training scheme: Practical training in a corporate site + classroom lectures at education and training
institutions, etc.
z It is also utilized as a training program to appoint a nonpermanent worker currently serving the
company as a full-time regular worker (career progression-type training program)
Competence evaluation by
company
Career consulting
Job-Card creation
Vocational Ability Development Program
Competence evaluation by
training service provider
Hello Work, etc.
Support from Hello Work
(Great Craftsmen in the present world)
By making honorable recognition of prominent craftsmen (great craftsmen in the present world), “Great
Craftsmen in the present world” aims to fostering a skill-oriented mindset throughout society in general,
improve the status of skilled workers and their skill levels, and boost young people’s motivation to become
skilled workers and serve such professions with pride and hope in accordance with their personal
characteristics.
Since the program was launched in FY1967, it has commended 5,138 award winners up until the 45th Award
for outstanding Skilled Workers in FY2010 (the program granted awards to approximately 100 workers by
FY1995 and then 150 workers a year since FY1996).
[Column: Skills of “Great Craftsmen in the present world” in FY2010]
Mr. Masayuki Tsunakawa, 56 years old
He is distinguished at refining the process to remove distortion in aluminum boards, making contributions to improving the quality of
aluminum board materials. [He works as a metal materials finisher at Mooka Plant of Kobe Steel, Ltd.]
He is able to find extremely small distortions, which are viewable with 400 times zoom with 3D distortion measuring equipment, and is
outstanding at refining skills, such as rectifying aluminum boards. He is also making significant contributions to improving product quality
of aluminum boards, such as printing plates, and makes efforts to foster young engineers by teaching his deep knowledge and skills. 㻌 㻌 㻌 㻌 㻌 㻌 㻌
[Mr. Tsunakawa on duty]
[Mr. Tsunakawa on duty]
71
(National Skills Competition)
The National Skills Competition is held annually to give young engineers nonbinding target by holding skill
level competition for youth engineers aged 23 or younger at home, to offer the opportunity to get familiar with
skills, and to aim at making an appeal to the general public about the importance and necessity of skills as
well as raising the public awareness of skilled work.
The 48th National Skills Competition was held in Yokohama City, Kanagawa Prefecture in October 2010.
1,028 contestants participated in the program, competing in 39 job categories, such as “lathes,” “milling
machines,” “precision machinery assembling operations,” or other manufacturing skills.
[Column: Outstanding Skills—National Skills Competition]
The 48th National Skills Competition was held from October 22 to 25, 2010 at 9 venues mainly in Pacifico Yokohama, Kanagawa
Prefecture, with 1,028 contestants participating in events for 39 job categories. During the competition, a lot of visitors including junior and
senior high school students saw the event and became familiar with occupational skills. In this way, the event organizers were able to
make further appeals about how occupational skills are important and wonderful.
In FY2011, the event organizers are planning to hold the National Skills Competition in December, mainly in Chiba Prefecture.
㻌㻌
[Competition (for precision
[A participant competing in making
machineries assembly operations)]
Western confectioneries]
72
(National Skills Competition for People with Disabilities)
“National Skills Competition for People with Disabilities” (Abilympics) is significantly contributing to creating a
“universal society” where anyone, including those with and without disabilities, will participate in society and
support each other. The 32nd National Abilympics was held in Yokohama City, Kanagawa Prefecture in
October 2010.
[Column: Overcoming disabilities—National Skills Competition for People with Disabilities]
The National Skills Competition for People with Disabilities (Abilympics) aims to improve disabled people’s occupational skills, deepen the
society’s understanding/recognition of disabled people, promote their employment, and improve their social status so that disabled people
will be able to have pride and confidence to participate in society as skilled workers.
[Participants competing in word
processor operations]
In FY2010, the 32nd National Skills Competition for People with Disabilities
(Abilympics) was held in Yokohama City, Kanagawa Prefecture for 3 days from
October 15-17.
Two hundred and sixty-seven contestants from all over Japan participated in the
competition in 22 job skill categories, competing in the skills they have been
enhancing in their daily work. In addition, they demonstrated their skills in the
innovative or highly promising three job categories of IT, office assistant, and bedpreparation.
At the same time as the 32nd Abilympics, “Work Fair for Persons with Disabilities
2010”—a multipurpose event consisting of exhibitions, demonstrations, and trial
experience sessions related to employment of disabled persons—was held. More
than 34,600 visitors, including those to satellite venues, attended the event.,
became a big event.
73
(National Skills Grand Prix)
National Skills Grand Prix is held every second year as a skills competition for 1st Grade Skilled Workers or
other participants with outstanding skills.
The 26th National Skills Grand Prix was held in March 2011 mainly in Chiba City, Chiba Prefecture, with 480
contestants participating in the event, competing in 26 job categories, including “lathes,” “machine assembly,”
“paper/fabric craftwork,” and “precious metal accessories.”
[Column: “Skill” festival—National Skills Grand Prix]
The National Skills Grand Prix is a skill competition for 1st Grade Skilled Workers or other participants with outstanding skills. It aims at
further improving skills of certified skilled workers and demonstrating their outstanding skills to the general public in Japan in order to
upgrade their status and skills. The National Skills Grand Prix started in 1982 and has been held every second year since the 22nd Grand
Prix in 2003.
The most recent competition, the 26th National Skills Grand Prix, was held in March 2011 mainly in Chiba City, Chiba Prefecture, with 480
contestants competing in 26 job categories.
[A participant producing straw mats]
[A tailor making women's wear]䛇
㻌㻌㻌㻌㻌㻌㻌㻌㻌㻌㻌
74
[ Tiling a roof]
(Young Fellow Manufacturing Tournament)
To raise awareness of monodzukuri skills among younger generations and foster them as full-fledged skilled
workers, it is necessary to give them appropriate targets for skill acquirement and provide opportunities for
skills competitions.
For this reason, “Young Fellow Manufacturing Tournament” are held every year for the youth who is less than
20 years old of the acquisition process at vocational training facilities, accredited vocational training schools, or
technical high schools in order to provide them with appropriate targets, encourage their employment by
upgrading their skills, and increase the number of young skilled workers.
[Column: Young Fellow Manufacturing Tournament]
To raise awareness of monodzukuri skills among younger generations and foster them as full-fledged skilled workers, it is necessary to give
them appropriate targets for skills acquirement and provide opportunities for skills competitions. For this reason, “Young Fellow
Manufacturing Tournament” have been held annually since 2005 for the youth who is less than 20 years old of the acquisition process at
vocational training facilities, accredited vocational training schools, or technical high schools.
The most recent event, the 6th Young Fellow Manufacturing Tournament was held in August 2011 at four locations: Techno College Maibara,
Techno College Kusatsu, Kobe International Exhibition Hall, and Hyogo Prefectural Monodzukuri College, with participants competing with
each other for their skills in 14 job categories.
[Participants competing in CAD operations]
[Participants competing in mechatronics skills]
㻌㻌㻌㻌㻌㻌㻌㻌㻌㻌㻌
75
[Participant working on a lathe]
(Recovery/reconstruction support for the Great East Japan Earthquake)
In areas that are still suffering an impact from the Great East Japan Earthquake, the
government is swiftly taking the following human resources development for
recovery/reconstruction from earthquake damage.
{ Expanding vocational training
- Expanding/implementing vocational training courses at public human resources
development training facilities, etc.
- Exempting the affected area’s trainees from admission fee, tuition, etc. for vocational
training for school graduates
- Exempting the affected areas’ trainees from tuition for workers’ training programs
payable by the affected areas’ employers
{ Life support in the training period
Relaxing the requirements for training/life support benefits so that persons not entitled to
employment insurance benefits will be able to attend vocational training programs without
anxiety (granting training/life support benefits to these persons if they are unlikely to earn
income due to earthquake damage; or flexibly operating the land/building requirements,
paying due attention to individual circumstances of affected persons)
{ Supporting reconstruction of public human resources development training facilities and
accredited vocational training schools affected by earthquake damage
76
Chapter 4: Education, Research, and Development to Support the Foundation of Monodzukuri
Universities’ engineering-related faculties, colleges of technology, specialized high scchools, and specialized
training colleges’ vocational training programs are playing important roles in fostering monodzukuri human
resources in Japan.
It is also absolutely necessary to enhance monodzukuri education, such as science/math education programs
at elementary, junior high, and senior high schools, push ahead with systematic career education throughout
various school stages, encourage understanding of S&T (science and technology) at community centers or
museums, and develop/enhance basic technologies related to monodzukuri. It is also important to foster
human resources working on monodzukuri processes in fashion, content, design, and food businesses, and
intellectual property protection tasks.
On the other hand, to restore monodzukuri infrastructures in areas affected by the Great East Japan
Earthquake, recovery/reconstruction of schools affected by the Great East Japan Earthquake is urgently
necessary. In this context, the government has posted necessary expenses in the FY2011 Primary
Supplementary Budget. To foster human resources that will play leading roles in the recovery of Japan in line
with needs of local communities and local industries, the government will support advanced education
programs at universities and industry–academia-government collaborative projects.
Section 1: Roles of universities (engineering), colleges of technology, specialized high schools, and specialized
training colleges in fostering monodzukuri human resources
1. Characteristics and programs of human resources development at universities (engineering)
Universities (engineering) provide a wide variety of education programs in their initiatives and have been
sending out high-level engineers who support Japan’s monodzukuri industries.
Currently, they are providing practical engineering education through collaboration with the industry, and also
working on fostering high quality engineers who will create new technologies or bring about innovations. In
addition, MEXT is pushing ahead with practical engineer education by compiling a report on practical engineer
training programs in FY2010.
77
[Column: Examples of improving curricula or teaching methods at universities (engineering)]
{ Department of Urban Management, Graduate School of Engineering, Kyoto University: Capstone Project
The department has a project in which students will comprehensively utilize the basic knowledge they have learned in their undergraduate
and master’s courses to plan/develop new projects on a wide variety of problems in urban communities.
To be more specific, students assume actual problems, including urban planning and river basin planning, collect/analyze information,
implement projects based on such information, evaluate project effects, prepare a report outlining the outcomes, and make presentations.
{ Nagaoka University of Technology: Custom-made Engineering Education Program
Corporate workers are attending lectures as full-time students. With instructors’ advice on lectures, students are able to take custom-made
curriculum made up of classes desired by the company/organization that they belong to.
In addition, the university has a practical training program in which students will attend OJT at companies for approximately 5 months in
their senior year and gain basic understanding on the research theme in their master’s course study or possible future career based on
such OJT outcomes, and it will help them think about creation/deployment of technologies in the future.
{ Kanazawa Institute of Technology: Developing and putting in practice a new project-style education system
Kanazawa Institute of Technology is working on specific projects in collaboration with partner firms. These projects include
“designing/producing wheels with the theme of wheels used for solar car projects,” “improving welding skills used for solar cars or formula
cars project,” and “learning optimal methods to use lead batteries.”
[Column: Examples of improving teaching abilities of instructors at universities (engineering)]
{ Muroran Institute of Technology
To create excellent university settings, the Muroran Institute of Technology aims to reform instructors’ awareness, encourage selfdevelopment, foster high quality instructors, and systematically improve education quality. To this end, the university evaluates its
education targets and achievements on a self-assessment basis, assesses classes, evaluates education contributions, and assesses
university instructors based on comprehensive evaluation on education, research, social/international contribution, as well as university
operations. By doing so, the university treats its instructors in an appropriate manner, taking into consideration these evaluation results.
{ Shibaura Institute of Technology
Aiming to share successful educational improvement projects inside/outside the university among all university staff and incorporate them
in improving their education projects, the university holds university-wide faculty development (FD: systematic project in which instructors
improve/enhance their class or teaching methods) lecture sessions at regular intervals. The university also gives an “Outstanding
Education Instructor” award to university instructors who show excellent performance in the classes or education improvement activities in
their charge and significantly motivate their students. By doing so, the university encourages/motivates university instructors to show
originality and ingenuity in their classes and shares award winners’ class operation practices among university staff.
78
2. Characteristics and projects of fostering human resources at colleges of technology
Colleges of technology are fostering creative/practical engineers that underpin companies’ on-site works.
Education provided by colleges of technology is characterized by experience-oriented specialized education
with a focus on experiments and practical training sessions. They are pushing ahead with improving
curriculums and educational methods, such as developing industry–university cooperative education programs,
providing long-term internships, and enhancing extracurricular activities for strengthening students’ originality
and ingenuity. In addition, they are also inviting instructors from companies and improving instructor’s teaching
abilities through teaching staff’s training programs at companies.
[Column: Examples of improving curricula and educational methods at colleges of technology]
{ Anan College of Technology: Monodzukuri Elite Engineer Fosterage Co-op Project
The college has the nation’s first fully-fledged joint education program (co-op education) that provides students with opportunities to have
work experience at a company’s production site and solve technical problems at companies by using the long vacation from their third
grade year to the fifth grade.
The third and fourth grade students will have 2- to 3-week-long OJT experiences four times (7–10 weeks work experience in total) to learn
communication skills and professional technologies, while the fifth grade students will foster problem solving abilities by actually solving
technical problems as their thesis (graduation research) project.
The ultimate goal of this project is incorporating into the curriculum what students should learn from company perspectives. Since FY2010,
the college is making use of corporate engineers to improve the curriculum, such as experiments or practical works.
{ Toyama College of Technology: Real experience-based program on steam engine technologies
Toyama National College of Technology provides experiment sessions to actually experience inventions or discoveries in technical history.
For example, the college provides classes incorporating lectures, experiments, researches, or problem solving sessions in which students
will research on the background why the invention is put to practical use, check out history of inventors, summarize related theories, and
create equipment for presentation purposes.
{ Hakodate College of Technology: Program based on external evaluation
The college conducts questionnaire surveys for companies or graduates about its curriculum and objectively recognizes problems
identified from the survey results. To incorporate survey results in improvement in their curriculum or teaching methods and to review the
process of organizational framework, principals of local junior high schools, high schools, university deans, and local companies’
representatives are giving feedback to the college as external evaluators after evaluating the college’s programs.
79
{ Robot competition
To foster originality and ingenuity of students, public and private colleges of
technology are working together to hold the robot competitions. Since the 1st
Robot Competition in 1988, this event is held as a nationwide annual
educational event in which students compete with each other in ideas and
technology, experience the fun of making robots based on their own ideas and
with their own hands, and share the same experience on the importance of
coming up with new ideas and the delight of monodzukuri for 20 or more years.
In the 23rd Competition in 2010, bipedal robots made by students were
competing with each other, carrying a vehicle with students on board.
About 4,000 people visited Ryogoku Kokugikan to watch the competition,
cheering the robot performance incorporating unique ideas and technologies
developed by the 25 teams of students who had survived the regional qualifying
rounds.
[Column: Example of improving teaching abilities of instructors at colleges of
technology]
{ Kochi College of Technology
The college continuously provides feedback to students by disclosing on the
Web the instructor’s comments and questionnaire survey results of students’
class evaluation questionnaire as well as feedback to its instructors through
Web disclosure on mutual class observations among instructors and their
class observation reports.
In addition, the college is working on improving instructors’ teaching abilities by
holding FD lecture sessions including teaching portfolio, identifying actual
conditions through academic achievement surveys for the first and second
grade students, holding FD training programs for newly assigned instructors,
and participating in SPOD (Shikoku Professional and Organizational
Development Network in Higher Education) training programs.
80
[Chart 4-1: KOSEN Robot Contest (Robo-con)]
[Chart 4-2: FD lecture session]
3. Characteristics and projects fostering human resources at specialized high schools
Specialized high schools foster promising workers serving for monodzukuri and play important roles providing
comprehensive humanistic education that fosters desirable industrious/work values as well as productive sensitivity
and creativity. They are working on unique projects for fostering future specialists in collaboration with universities or
research institutes. They are also pushing ahead with practical projects, such as developing corporate practical work
training programs through collaboration with local industry, practical skill instructions by corporate engineers, or
monodzukuri human resources fosterage programs incorporating joint research projects with corporations.
Technical high schools are providing a wide variety of unique programs in collaboration with the local industry. These
programs include attempting to acquire advanced qualifications under skilled engineers, setting up unique
programs/courses such as senior engineers (industrial Meister) programs or disaster prevention engineer courses, and
establishing special study courses to work on highly professional issues.
Agricultural high schools are pushing ahead with fostering specialists capable of making use of local specialty products
aiming to develop new products that will expand the consumption of rice. They are also working on joint development
projects on local specialty products or brand products in collaboration with local female entrepreneurs.
Fisheries high schools are working on fostering fisheries specialists capable of researching the possible effective
utilization of unused resources as valuable fisheries resources or developing local specialty products. They are also
providing education programs that incorporate fisheries education, environmental education, and business
entrepreneur education.
[Chart 4-3: On-site practical training work
at a company]
[Chart 4-4: First-prize winners of the “Robot Software Embedding”
section of the 5th Youth Monodzukuri Skills Competition]
81
4. Characteristics and projects fostering human resources at specialized training colleges
As an organization that fosters professional human resources that underpin local industries, specialized
training colleges are working on improving practical and professional knowledge/skills through collaboration
with local industry, aiming to foster knowledge/skills necessary for future career or actual life and to improve
literacy levels.
They are also expected to actively address adult education needs, such as improving occupational skills of
employed workers and re-educating job leavers.
[Column: Examples of projects at specialized training colleges]
{ Asano Institute of Technology (Project on creating framework to foster/evaluate engineers capable of reducing greenhouse gases):
A project selected for FY2010: “Professional Human Resources Fundamental Education Promotion Program”
Education institutes, such as specialized training colleges, and the industry is working together on the following projects to foster engineers
capable of contributing to countermeasures on global warming.
(1) Conducting questionnaire surveys on SMEs in major industrial zones
(Tomakomai in Hokkaido, Yokohama in Keihin Industrial Zone, Osaka in Kansai, and Fukuoka in Kyushu) about “appropriate
environment education at engineering special schools” and “actions taken to reduce greenhouse gases.”
(2) Conducting on-the-spot investigations by visiting major plants/facilities emitting
[Chart 4-3: Group discussions at the
greenhouse gases (cement plants, papermaking plants, garbage incineration
“Expert Human Resources Basic Education
plants, and experimental houses)
Promotion Program (Asano Institute of
(3) Providing demonstration lectures for students majoring in construction or civil
Technology (in Yokohama))”]
engineering by preparing an “Environment Education Syllabus” to learn applicable laws
and the Tokyo Mechanism on reduction of greenhouse gas emission
(Kyoto Protocol framework, etc.) as well as the current countermeasures on
global warming
* Asano Institute of Technology (in Yokohama) and Chuo College of Technology
Osaka (in Osaka) provide 36 demonstration lectures (1 lecture= 1 hour) .
After the demonstration lectures, these schools conducted qualification tests for
evaluating attendees’ achievements and then issued “Certificates” depending on their
grades.
The government will continue checking out outcomes of this program. These schools are
expected to foster engineers capable of contributing countermeasures on global warming.
In addition, engineers with this “Certificate” will play active parts in a wide variety of
companies/enterprises as core professional human resources capable of “cutting down
greenhouse gas emission.”
82
Section 2: Educational/cultural capabilities for fostering monodzukuri human resources㻌
1. Monodzukuri education, such as math/science education underpinning science and technology
The new Courses of Study for elementary and junior high schools (announced in March 2008) and new
Course of Study for high schools (announced in March 2009) stay focused on monodzukuri education,
improve class qualities of “Technology and Home Economics (technology)” classes at the junior high school
level in order to further enhance monodzukuri-related capabilities, and continue providing monodzukuri-related
programs in “Art and Handicraft” classes at the elementary school level, “Art” classes at the junior high school
level, and Crafts Production in “Art” classes at the high school level.
In addition, the new Course of Study for Science call for enhancing content of learning,
observation/experiment activities, and hands-on activities. Elementary and junior high schools increased their
number of classes for science in April 2009, ahead of the initial schedule of the new Course of Study.
Furthermore, the government is comprehensively pushing ahead with enhancing science/math education that
will underpin science and technology, such as supporting learning activities in collaboration between
universities, research institutes and schools, and systematically enhancing science education facilities, etc.
2. Enhancing career education and vocational education
The overall unemployment rate and the irregular employment rate for young people stand at a high level.
Young people are also facing problems of youth unemployment and leaving their jobs early. In this context,
school education should enhance career education and vocational education in order to provide support to
young people’s social and occupational self-reliance as well as the formation of their lifelong careers.
The Central Council for Education’s report on “Future vision on Career Education and Vocational Education㻌
at school” suggests specific approaches for the three basic directions:
•Pushing ahead with systematic career education, ranging from preschool education stage to higher education
stage;
•Putting emphasis on practical vocational education and reevaluating the importance of vocational education;
and
•Supporting career formation from lifelong learning perspectives.
83
3. Activities to enhance understanding in the society
(Activities to enhance understanding of science and technology)
The National Museum of Emerging Science and Innovation (Miraikan) plans interactions between researchers
and ordinary citizens by producing exhibitions or planning explanations/lectures/events that deliver state-ofthe-art science and technology in an easily understandable manner.
The Japan Science and Technology Agency (JST) supports projects that promote science communication
activities by science museums, universities, local governments, or scientific volunteers in local communities. In
this activity category, JST provides hands-on classes and experimental workshops.
[Column: “Innovation and the Future” section]
The National Museum of Emerging Science and Innovation (Miraikan) opened
in July 2001 and features the “Innovation and the Future” section as one its
four permanent exhibition areas. In this section, the museum exhibits and
demonstrates ASIMO, one of the most famous humanoid robots in Japan and
developed for household activities. Visitors are able to actually touch or
operate a wide variety of robots, including PARO, a therapeutic robot designed
to interact with humans and improve user’s motivation, relaxation, as well as
reduce stress. By closely interacting with robots, visitors are able to
understand with their eyes and hands “how robots move,” “what robots can
do,” and “what robots can do for humans.” In addition, this exhibition section
underwent a significant refurbishment in 2009, under the supervision of Dr.
Hiroyuki Sakaki, who serves as the vice president at Toyota Technological
Institute. After the renewal, the section added “the Spring of Wishes,” “the
River of Creativity,” and “the Sea of Fertility” in a similar manner to the “water
cycle” in order to exhibit a series of flows “how electric bulbs, quantum
computers, or other innovative technologies have been created from the past
to the present day,” with a focus on the two themes: “People’s wishes (i.e.,
imagination)” and “driving forces to actualize such wishes (i.e., creativity).”
84
[Chart 4-6: Exhibition floor after renewal works in 2009]
(Projects at community centers and museums)
Social education facilities, such as community centers and museums that provide the closest opportunities of
learning and interaction for local residents, are expected to further enhance their Monodzukuri related
projects, and community centers are providing handwork classes for parents and children as well as lecture
sessions where elderly citizens and children will work together on monodzukuri tasks.
In addition, museums collect, maintain, and exhibit materials, such as originals, models, charts, and images.
The National Museum of Nature and Science, Tokyo, is holding exhibitions and providing learning support
through exhibitions on R&D on aerospace technologies. It is also working on survey studies on natural history
and science/technology history.
4. Carrying on monodzukuri traditions to future generations
Monodzukuri traditions are handed over to future generations by designating craftwork arts or other
distinguished techniques as “important intangible cultural properties” or by selecting as “selected
conservation techniques” traditional techniques/skills that need to be preserved and are absolutely necessary
for preserving cultural properties.
[Column: Examples of exhibiting/demonstrating selected preservation
techniques]
Kinomoto Town Japanese Musical Instruments Original Yarn
Production Conservation Society, the organization that preserves the
selected preservation technique “Japanese Musical Instrument
Original Yarn Production,” is fostering successors of techniques for
manufacturing original yarns used for Japanese shamisen or other
string instruments. In the exhibition/demonstration project of selected
preservation techniques, the Society exhibited panels explaining
these techniques and demonstrated the manual process to collect
cocoon filaments in silk reeling machine.
85
[Chart 4-7: Exhibition/demonstration
(Nara City, Nara Prefecture)]
Section 3: Pushing ahead with R&D to enhance industrial capabilities
1. R&D of infrastructure technologies regarding monodzukuri
In order to achieve innovation based on monodzukuri, researchers are developing advanced measurement
and analysis technologies/equipment (high-pressure, constant-pressure adsorption measuring equipment)
and highly accurate simulation technologies (user interfaces serving as a common base) in FY2010. The
government is pushing ahead with R&D on fundamental monodzukuri technologies, such as development and
promotion of public utilization of cutting-edge large R&D facilities (completing development of the X-ray free
electron laser facility “SACLA” and partial startup of the next-generation K computer supercomputer “K
computer”).
[Column: Outcome of Japan’s Monodzukuri technologies: X-ray free electron laser facility “SACLA”]
“SACLA” is a supreme laser facility capable of oscillating X-rays “10 billion times further multiplied
by 1 billion times” as bright as the Sun. If we use this new beam, we will be able to capture ultrafastmoving atoms/molecules like frame-speed static images of 1 trillionth of second or shorter.
While the X-ray free electron laser (XFEL) facility “LCLS” already in operation is 3.7 km long,
Japan’s “SACLA” with better performance only runs 700 meters overall. This compact and energy
saving “SACLA “is supported by cutting-edge monodzukuri technologies of Japanese
engineers/researchers.
“SACLA” rays are generated by accelerating electrons to almost the same speed as light, and then
swinging them finely with equipment called an “undulator” equipped with strong magnets. C-band
accelerator tubes are capable of accelerating electrons in the world’s most efficient manner due to
Japan’s original technologies. In addition, Japan is the first nation in the world to develop the
technology that seals off undulator magnets in vacuum to further enhance magnetic energy.
Furthermore, the floor surfaces on which the aforementioned devices are set out are polished totally
flat without any concavity and convexity of 100 μm. The world’s smallest and highest-performance
XFEL in Japan is created by mobilizing these technologies.
These outcomes yielded from Japan’s monodzukuri practices are about to bring about the world’s
first research outcomes in Japan. Researchers are expected to identify functions of plants’
photosynthesis by intracellular movements at the atomic level or to develop innovative fuel cells,
storage batteries, and solar cells by analyzing electron status in detail.
86
[Chart 4-4: Bird’s-eye view of the
XFEL facility “SACLA”]
2. Promotion of research and development based on collaboration between the government, industry, and
academia
(Encouraging utilization of joint R&D by universities and companies, R&D for technology transfer purposes, or their outcomes)
In FY2009, the number of joint R&D projects between universities and private corporations stood at 14,779,
while that of R&D projects commissioned from private corporations to universities was 6,185. The number of
university-launched venture businesses amounts to 2,027 on an accumulated total basis.
To encourage the commercial viability of university research outcomes through industry–university
cooperation, the Japan Science and Technology Agency (JST) runs the “Adaptable and Seamless
Technology Transfer Program through Target-Driven R&D (A-STEP).” This program promotes
comprehensively and seamlessly intellectual property-based R&D projects by certain firms and certain
universities (researchers). In addition, JST also implements the “Technical Transfer Support Center
Program,” which technically supports universities’ intellectual property-related activities.
In addition, there is a special tax measure that allows the deduction, from corporate and income tax
statements, of a certain proportion of research expenses for joint experimental research by private
companies and universities.
[Chart 4-10: Number of research programs commissioned by
private companies to national, public, or private universities]
[Chart 4-9: Number of joint research programs undertaken by
national, public, or private universities and private corporations]
(Projects)
(Projects)
(FY)
8787
(FY)
(Setting up projects for strategically creating, managing, and utilizing research outcomes at universities)
MEXT is implementing “Industry–Academia–Government Collaboration Self-Reliance Promotion
Program” to enhance its projects for strategically creating/managing/utilizing university-level research
outcomes and to provide support to the university’s industry-academia-government projects through
industry-academia-government cooperation coordinators.
[Chart 4-11: Regional distribution of institutions implementing
“Industry–Academia–Government Collaboration Self-Reliance
Promotion Programs” (program enhancement support-type)]
[Chart 4-12: Regional distribution of institutions implementing
“Industry–Academia–Government Collaboration Self-Reliance
Promotion Programs” (coordinator support-type)]
These programs aim to set up appropriate environment in which universities, etc. are able to
independently work on industry–academia–government collaboration projects. In this process,
the government provides support to industry–academia–government partnership promotion
projects in which universities, etc. intending to set up/enhance the environment necessary for
their independent industry–academia–government partnership projects by employing industry–
academia–government partnership coordinators.
59 projects implemented at 67 institutions
Distinc- Intertive
national
Kyoto Institute of Technology (*)
Nara Institute of Science and Technology
{ Finding out excellent research outcomes at universities
{ Coordinating joint research/projects with companies or
local communities
{ Supporting establishment of partnership systems in
collaboration with local communities or local
governments, etc.
As of March 2011
Iwate University/Obihiro University of
Agriculture and Veterinary Medicine (*)
Osaka Prefecture University/Osaka City
University
Yamagata University
Kanto Area
20 programs/
23 institutions
Miyagi National College of Technology (*)
<Universities, etc.>
University of Tokyo
Ritsumeikan University (*)
International
Doshisha University
Kyoto University
Osaka University
Tokyo University of Agriculture and
Technology
Tokyo Institute of Technology
Chubu area: 12 institutions (11 coordinators)
{ University of Toyama
{ Shizuoka University
{ Nagoya Institute of Technology
{ Gifu National College of Technology
{ Kanazawa University
{ Hamamatsu University School of Medicine
Keio University
Tokyo University of Science
Okayama University/Tottori University (*)
Waseda University
Yamaguchi University
Kyushu/Okinawa
Area
Gunma University/Ibaraki
University/Utsunomiya University/Saitama
University (*)
13 programs/
16 institutions
University of Yamanashi/Niigata University (*)
Nagoya University (*)
Distinctive
Chubu Area
Nagaoka University of Technology/Institute of National
Colleges of Technology (*)
Hokkaido/Tohoku area: 14 institutions (9 coordinators)
{ Fukushima University
{ Muroran Institute of Technology
{ Sapporo Medical University
{ Obihiro University of Agriculture
and Veterinary Medicine
{ University of Aizu
{ Iwate University
{ Tomakomai National College
of Technology
{ Akita University
{ Sendai National College of Technology (Hachinohe National College of Technology,
Shinshu University (*)
Japan Advanced Institute of Science and Technology
Basic
Shibaura Institute of Technology
Kanto/Koshin’etsu area: 12 institutions (12 coordinators)
Soka University
Keio University (RIKEN, AIST)
Toyama National College of Technology (*)
IP
{ Ibaraki University
{ Utsunomiya University
{ Gunma University
{ Yokohama National University
{ Niigata University
{ Nagaoka University of Technology
Aoyama Gakuin University
Tokyo National College of Technology/
Nagano National College of Technology (*)
Hamamatsu University School of Medicine (*)
University of Shizuoka (*)
Ichinoseki National College of Technology, Akita National College of Technology, Tsuruoka National
College of Technology, and Fukushima National College of Technology)
{ Yamaguchi University
{ Ehime University
Ochanomizu University
Shizuoka University/Toyohashi University of Technology
(*)
Mie University (*)
Note: Asterisks denote institutions that implement the
project in collaboration with partner institution(s).
The following project categories have been
additionally introduced in FY2009:
- Bio: Setting up appropriate environment for
creating bio ventures
- Intellectual Property (IP): Establishing IP
portfolio formation models
The University of Electro-Communications
Chugoku area: 4 institutions (4 coordinators)
{ Tottori University
{ Hiroshima University
Research Organization of Information and
Systems
Basic
Kyushu Institute of Technology
Tokyo University of Marine Science and
Technology
Nihon University
Kanazawa University (*)
IP
Kyushu University
Kurume University
(Toba National College of Maritime Technology)
{ Fukui University
{ Nagoya University
{ Mie University
Tokai University
University of Toyama
University of Miyazaki (*)
{ Toyohashi University of Technology
{ Suzuka National College of Technology
University of Tsukuba
Kagawa University
Oita University (*)
As of March 2011
<The industry, local communities, and
local governments>
Tokyo Medical and Dental University
Saga University
Basic
Industry–academia–government partnership coordinator
Tohoku University
Muroran Institute of Technology/Kitami
Institute of Technology (*)
Basic
International
Distinctive
Kobe University (*)
Osaka University
Hokkaido University
Distinctive
International
Kinki Area
Kyoto University
Bio
Hiroshima University
6 programs/
6 institutions
Distinctive
Chugoku/Shikoku
Area
10 programs/
9 institutions
International
Basic
Distinctive
International
4 programs/
5 institutions
Hokkaido/Tohoku
Area
6 programs/
8 institutions
Basic
International:
16 programs/17 institutions
Distinctive:
22 programs/30 institutions
Basic:
17 programs/19 institutions
Bio: 2 programs/2 institutions
Intellectual Property (IP):
2 programs/3 institutions
Nagoya University/Nagoya Institute of Technology (AIST)
88
Kyushu/Okinawa: 4 institutions (4 coordinators)
{ Kyushu Institute of
Technology
{ Kagoshima University
{ Ryukyu University
{ Kumamoto National College
of Technology
Kansai area: 9 institutions (9 coordinators)
{ Shiga University of Medical Science
{ Kyoto University
{ Kobe University
{ Nara Institute of Science and
Technology
{
{
{
{
{
Osaka Prefecture University
Osaka City University
Ritsumeikan University
Kansai University
Kinki University
{
{
{
{
{
{
Shinshu University
St. Marianna University School of Medicine
Keio University
Meiji University
Waseda University
High Energy Accelerator Research
Organization, KEK
(Promotion of regional R&D for strengthening of industrial capabilities)
Since FY2002, MEXT has been working on the “Knowledge Cluster Initiative” and the “City Area Program.”
In these programs, universities or other public research institutes are playing core roles in R&D activities
under regional initiatives in the light of corporate needs, and take advantage of the results of R&D to
advance regional industries, develop new products, and improve services.
The government set up the “Council on Studying Public Testing/Research Organizations’ Possible Roles for
Pushing Ahead with Regional Innovations” in July 2010 in order to examine what kind of roles public
testing/research organizations should play from the viewpoint of pushing ahead with regional innovation on
the nationwide scale.
[Chart 4-13: Locations of the FY2010 Regional Innovation
Strategic Support Program (global type)]
[Chart 4-5: Locations of the FY 2010 Regional Innovation Cluster
Program (urban-area-type)]
Second term
Global base creation-oriented
* Adopted owing to the priority
support quota
Hakodate area
[Creating a sustainably developable marine industrial cluster,
recognizing that the sea is massive production system that
creates valuable resources]
Central region of Hokkaido with Sapporo at the center
Hirosaki area *
General: 10 locations
[Creating a health science industry by
developing/commercializing high-functional foods and useful
materials based on state-of-the-art analytical-type or activity
assessment-type research projects]
Development: 13 locations
* Adopted owing to the priority
support quota
Whole regions in Nagano Prefecture
[Creating internationally stronger locally rooted supercluster by high-level utilization of new
nanotechnologies/materials]
Yonago/Sakaiminato area *
Iwate Middle Prefecture/Kamaishi
area*
Toyama/Ishikawa region
[Creating R&D cluster on preventive and healthbased life science by developing bio-related
cutting-edge equipment]
Forming chromosome engineering R&D bases that
will serve for creating new drugs and developing
food functionality evaluation model animals
ᵱᶆᶇᶌᶈᶇᶉᶍᵍᵬᵿᶉᵿᶓᶋᶇᴾᵿᶐᶃᵿ
[Creating an innovation cluster of high value
added cobalt alloys from Iwate Prefecture]
Creating new industries with next-generation lighting
devices and new energy -related technologies
employing environment-friendly materials
Greater Sendai area
Lake Biwa South area*
Yamaguchi area
[The world’s most advanced
cluster of resource-saving and
energy-saving green materials]
[Developing diagnosis/treatment
technologies that will actualize “highlyadvanced medical treatment anywhere,
anytime”]
Fukuoka/Kitakyushu/Iizuka area
[Creating an advanced system LSI R&D
cluster that will play leading roles in the
world]
Middle and Northern Ishikawa area
Mutsu Ogawara/Hachinohe area
Developing high-performance, highly efficient
optical elements to which next-generation flat
panel display -related technologies are applied
Fukui/Wakasa area
Saitama/Ken-O area *
Creating new industries by
making use of nuclear and
energy -related technologies
Forming a bio manufacturing cluster that centers
on high-speed molecular evolution technologies
Chiba/Tokatsu area
Developing/Commercializing next-generation antibody
drug discovery systems and diagnostic -use devices that
employ cutting-edge regional basic technologies
Fukushima area *
Fukuoka/Tsukushi area
Kazusa/Chiba area
[Developing cutting-edge medical equipment
providing tenderness and safety with haptic-optical
technology: Toward creation of the world-class
medical equipment design/production hub cluster]
Forming high-performance automobile
parts R&D bases that employ nano
structure control materials
Forming a government-industry -academia collaborative
cluster to overcome immunologic/allergy diseases
based on cutting-edge genomic analysis technologies
[Creating a safe, secure, comfortable, and
sustainable innovation society through upgrading
optronics technologies]
Wide area in Kansai region
Kyoto and Keihanna Gakken region
Greater Tokai area
[Creating an internationally competitive
bio-cluster with focus on “drug discovery”
and “highly advanced medical treatment
services”]
[Creating the world-class cluster on developing highfunctional parts/materials based on nanotechnologies
that contribute to solving global environment problems]
[Toward creating an environment-friendly
high-functional materials based on cuttingedge plasma nanoscience/technologies]
Nagasaki area
Western Tono area
Developing human-friendly preventive
home care systems that make use of
noninvasive sensing technologies
Creating environment-friendly,
new ceramics industries
Southern Gifu area
Miyazaki oceanfront area
Shizuoka Prefecture/Hamamatsu area
Tokushima area
[Creating “the world-class
diabetes R&D clinical
cluster”]
Tokachi area
Forming new bio cluster by commercializing
newly developed advanced technologies that
provide food functionality and safety
Establishing leading-edge fermentation systems
learnt from local traditional fermented foods,
and developing new high-functional foods
Creating a health industry by developing preventive,
diagnostic, and drug discovery support technologies
that make use of biofunctions
Mt. Fuji area*
[Creating a highly advanced medical
R&D cluster in the world with focus on
cancer peptide vaccines]
Tsuruoka/Shonai area
Establishing functional evaluation systems and
creating a high-performance food industry cluster
that leverages home-grown agricultural products
Hiroshima area
[Creating a health society creation cluster aimed at
providing preventive and health services through
utilization of advanced preventive technologies]
[Creating a Pharma Valley medical cluster
by developing cutting-edge cancer
treatment technologies]
Kurume area
Creating the Tsugaru health and beauty
industrial cluster centering on
Proteoglycan
Creating aquatic resources -based
technologies tha t will underpin a heal thy,
safe longevity society
Developing advanced medical equipment that
makes use of manufacturing technologies and IT
Developing new-generation, total solid
polymer lithium secondary batteries and
deploying them for bringing about
advanced materials innovations
Creating Japanese-style sustainable
aqua-farming technologies
from Ehime Prefecture
Okinawa Coastal area
Creating marine bio-industries making use of
diversified subtropical marine resources in
Okinawa Prefecture, and forming brands for
seaweed produced in Okinawa
89
Mie/Ise Gulf Coast are
Ehime Prefecture Nan’yo area
Takamatsu area
Creating health bio-industries
making use of characteristics
of carbohydrate capabilities
Middle and North
Wakayama Prefecture area
Developing new functional foods and materials
employing Wakayama’s signature agricultural
products —“fruits”—and unique technologies
Kansai Science City
and neighboring areas
Developing ubiquitous bioinstrumentation
healthcare devices/systems
Part 2: Policy Actions in FY2010 for Promoting Manufacturing Infrastructure Technologies
1. R&D on Manufacturing Infrastructure Technologies
Pushing ahead with R&D on manufacturing infrastructure technologies, etc.
“New Growth Strategy,” as approved by the cabinet in June 2010, has listed “green innovation,” “life innovation,” “the
Asian economy,” and “tourism and the regions” as growing areas, and described strategies on “science and technology
and information and communications technology,” “employment and human resources,” and the “financial sector ” which
are areas essential to supporting growth. To actualize new economic growth in line with these policies, the government
takes necessary policy actions on Monodzukuri, which serves as the basis of the Japanese economy.
1) Tax system for promoting research and development (Estimated tax revenue decline: ¥235.8 billion (in FY2010))
- Tax credit system relating to the total amount of experiment and research costs*1
A tax exemption equivalent to 8–10%*2 of the total amount of experiment and research costs (the upper limit set at 20% of the amount of the corporate
taxes to be paid for the relevant fiscal year) will continue to be applicable, according to the research and experiment cost ratio (the ratio of experiment
and research costs to the total sales).
*1: As temporary policy actions under the FY2009 economic crisis policy package, the government takes the following actions: 1) The upper limit on
tax exemption in FY2009 and FY2010 would be raised from 20% of the amount of the corporate taxes to be paid for the relevant fiscal year to 30%;
and 2) the portion of the experiment and research costs in excess of the upper limit in FY2009 and FY2010 would be eligible for tax exemption in
FY2011 and FY2012, respectively.
*2: The tax exemption ratio relating to special experiment and research costs is a figure obtained by subtracting the tax exemption rate relating to
experiment and research costs from the rate of 12%.
- Tax system for strengthening SMEs’ technology infrastructures*3
Regarding R&D activities conducted by SMEs, a tax exemption equivalent to 12% of the experiment and research costs (the upper limit set at 20% of
the amount of corporate taxes to be paid for the relevant fiscal year) will continue to be applicable.
*3: As temporary policy actions under the FY2009 economic crisis policy package, the government takes the following actions: 1) The upper limit on
tax exemption in FY2009 and FY2010 would be raised from 20% of the amount of the corporate taxes to be paid for the relevant fiscal year to 30%;
and 2) the portion of the experiment and research costs in excess of the upper limit in FY2009 and FY2010 would be eligible for tax exemption in
FY2011 and FY2012, respectively.
- Tax deduction system relating to an increase in experiment and research costs
In addition to the aforementioned policy actions, taxpayers may select one of the following two options: The tax deduction system related to an increase
in experiment and research costs; or the tax deduction system related to the portion of the amount of experiment and research costs in excess of 10%
of the average sales (the upper limit set at 10% of the amount of corporate taxes to be paid for the relevant fiscal year, separately from the
aforementioned upper limits).
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Pushing ahead with R&D on Monodzukuri infrastructure technologies, etc.
2) Formulation of Technology Strategy Map
After developing “Technology Strategy Map” in 2005, which takes into consideration future needs of society and the people and advances
and other developments related to technologies, the government has been revising it annually. In June 2010, the government disclosed
“Technology Strategy Map 2010,” which covers 31 fields, up from 30 in the previous year’s version. The map is used as a communication
tool by staff serving in R&D management duties and R&D tasks.
3) Steadily pushing ahead with R&D projects (¥172.9 billion)
By sorting out R&D projects in the seven categories: 1) IT programs; 2) nanotech/materials programs; 3) Robot/new machinery programs; 4)
Energy programs; 5) Environment and safety programs; 6) Health and comfort programs; and 7) Aerospace programs, the government is
pushing ahead with R&D programs as well as necessary policy actions to commercialize outcomes of these R&D programs in an integrated
manner, aiming to encourage creation of innovations.
4) Strategic Basic Technology Upgrading Support Program (¥25,002 million)
Aiming to strengthen the competitiveness of Japanese manufacturing industries and create new businesses, the government has provided
support to SMEs’ projects from R&D to prototype stages that will contribute to upgrading the Monodzukuri basic technologies (20 technology
categories, such as casting, forging, cutting, and plating).
5) Establishing Tsukuba Innovation Arena (TIA)
To accelerate R&D on nanotechnology, the National Institute of Advanced Industrial Science and Technology (AIST), National Institute for
Materials Science (NIMS), University of Tsukuba, and Japan Economic Federation work together to push ahead with “Tsukuba Innovation
Arena (TIA)” to implement “Project on new materials power semiconductors that actualize low-carbon society,” “Project on ultralow voltage
devices that actualize low-carbon society,” “Project on ultra-lightweight, high-strength integrated materials that actualize low-carbon society,”
and some other projects.
6) Supporting interface for commercializing cutting-edge technologies
To put newly-developed technologies into practical use and create new markets, industries, and employment, the government has launched
“Innovation Cluster Support Program” to provide support to: 1) Set up appropriate facilities so that corporations will manufacture production
samples and demonstrate outcomes of R&D projects; and 2) set up joint research facilities to commercialize newly developed technologies
in industry–academia–government cooperation.
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Pushing ahead with R&D on Monodzukuri infrastructure technologies, etc.
7) Intensifying management of trade secrets and prevention of technology leakages
As the Unfair Competition Prevention Act, amended in April 2009, became effective on July 1, 2010, the government has revised “Trade
Secret Management Guidelines,” which suggest secret management methods and reference tools. In addition, the government gets across
and disseminates trade secret management practices by distributing brochures or mail magazines to corporations that had not managed
their trade secrets so far. Furthermore, it holds trade secret management briefing sessions or free counseling sessions by experts on the
nationwide scale. In addition, it also set up one-stop counseling desks that provide telephone consultation services on trade secrets.
Collaboration between manufacturing businesses and universities, etc.
1) Innovation system enhancement program (Universities Industry–Academia–Government Collaboration Self-Reliance Promotion
Programs) (¥2,649 million)
To actually make use of universities’ research outcomes in the society, the government enhances international industry–academia–
government cooperation activities and unique industry–academia–government cooperation projects and assigns industry-academiagovernment partnership coordinators, aiming to create appropriate environment so that universities, etc. will be able to work on industry–
academia–government cooperation projects independently.
2) Industry–academia human resources development partnership program (¥1,067 million)
To create a positive growth cycle in industry–university collaboration for human resource development, MEXT and METI have been pushing
ahead with “Industry–university human resources development partnership” program since FY2007 to provide opportunities for dialog and
actions relating to human resource development for the academic and the industry. In FY2010, the government takes specific actions, such
as developing/demonstrating industry–university joint human resources development model programs based on results of study projects and
diffusing projects on systematically fostering/evaluating social life basic abilities for university students.
3) Career Gateway to Asia (¥1.9 billion)
In order to form a network with other Asian countries, promote the globalization of universities and companies, and strengthen industrial
competitiveness, METI and MEXT have been jointly implementing the “Career Gateway to Asia” program since FY2007. This program aims
to foster advanced overseas human resources by providing a series of projects, including industry–university collaborative specialized
education, Japanese language education, corporate culture education, internships, and employment support for high-quality and motivated
international students from Asia or some other areas intending to find a job in Japan. In FY2010, around 1,000 international students
participated in this program.
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2. Securing monodzukuri workers
Providing stable employment, including preventing unemployment
1) Supporting human resources development in growing areas (¥50 billion, for 2 years of FY2010 and FY2011)
The government provides support to human resources development in growing areas by granting a maximum of ¥200,000 per eligible
worker to cover the employer’s training costs if the employer hires employees for an indefinite term or relocates company staff from other
sections and then provides Off the Job Training in growing areas, such as health, environment areas, and other related manufacturing
processes.
2) Maintaining/stabilizing employment through employment adjustment subsidy (¥725,741 million)
In order to prevent unemployment and stabilize the employment situation in other ways in cases where companies are forced to reduce
business activities for economic reasons such as economic cyclical changes, employment adjustment subsidy was provided to companies
that strive to maintain employment by suspending business operations temporarily or sending employees on loan to other companies, and
providing educational training programs.
3) Eliminating employment mismatch through Miryoku Hakken Tours (i.e., appealing points discovery tours) (¥100 million)
The government provides “Miryoku Hakken Tours” to encourage awareness changes and employment conditions for students by providing
students all over Japan with an opportunity to understand attractive points in individual industries with employment mismatches, such as the
monodzukuri sector, agriculture, and nursing care service sectors.
4) Encouraging support for reemployment of elderly people (¥38,881 million)
The government provides subsidies for employers who help employees who are scheduled to be unemployed find reemployment to
employers that hire job seekers of age 60 or older through “Hello Work” as their regular employees.
It is rather difficult for the elderly or middle-aged job seekers to quickly find a permanent job because they don’t have work experience for
the job they want. In this context, the government grants Trial Employment Incentive Pays to employers that hire elderly or middle-aged
workers on trial runs, intending to employ them as permanent workers later.
If three or more people aging 45-year old or older jointly set up a new company by making use of their work experience and create
continuous employment or job opportunities on their own, the government grants joint employment opportunities to make efficient use of
subsidies for senior citizens, etc.
93
Developing/improving vocational abilities
1) Emergency human resources development support program (approximately ¥290.6 billion for the two years of FY2009 and
FY2010; in addition, the program budget has increased by ¥100 billion due to FY2010 supplementary budget)
There are concerns that nonpermanent workers who lost their jobs due to employment adjustments may face a prolonged period of
unemployment. In light of this, the “Emergency Fund for Human Resource Development and Employment Support” was created in July
2009 as a safety net for people who are not eligible to receive employment insurance benefits. In addition, the government is working on
emergency human resources development support project to provide free vocational training sessions and to grant the training/livelihood
support benefits of ¥100,000 a month (or ¥120,000 if the recipient has a dependent family member) during the training period, if the
recipient satisfies certain requirements.
It should be noted that the emergency human resources development support project finished at the end of September 2011, while a job
seeker support program started in October 2011.
2) Job training for displaced workers and people looking to change jobs
Job training is being implemented by consigning training to various kinds of private sector education and training institutions, such as
specialized training colleges, universities, NPOs, companies seeking workers, etc., in addition to being implemented at public human
resources development facilities for the development of vocational capabilities, in order to promote the smooth reemployment of
workers, including manufacturing workers who were forced to leave their jobs.
Under the FY2010 budget, the government plans and actually accepts approximately 220,000 vocational trainees, almost remaining
unchanged from the preceding fiscal year.
As public human resources development facilities, etc. the government has 160 Human Resources Development Center, 14 Polytechnic
Junior College, 10 Polytechnic College, 1 Polytechnic University, 61 Polytechnic Center, and 19 Human Resources Development Center
for the Disabled as of April 2011.
94
3. Fostering Monodzukuri infrastructure industries
Pushing ahead with industrial clusters, etc.
1) Regional innovation cluster program (¥12,065 million)
Through industry–academia–government joint research projects where local universities with high-level R&D potentials will play core roles,
the government strives to form a new cluster that will sustainably create innovation by setting up industry–academia–government network. It
provides additional support to districts that have ever worked on cluster formation project so far.
2) Cultivating overseas markets with Cool Japan strategy
METI set up “Creative Industries Promotion Office” in June 2010 to consistently support branding strategies, sales channel cultivation,
marketing, and promotion efforts based on 10-year-based long-term visions. It has also launched “Cool Japan Strategy Promotion Program”
to guide craftsmen, creators, and SMEs to the world market.
In November 2010, the ministry held Cool Japan Tokyo Conference so that Japanese people will recognize anew “Cool Japan” for which the
international community feels empathy, possibly leading to new actions. In December 2010, to create an appeal for Japanese apparel
products in Shanghai, METI worked on sales promotion project through popular Chinese fashion magazines or IT and held product PR and
fashion show by using top models that play active roles in China and Japan.
From the viewpoint of effectively conducting “Cool Japan Strategy Promotion Program” and turning Cool Japan into profitable businesses,
METI held “Cool Japan Public–Private Expert Council” in November 2010 to examine specific overseas business expansion strategies
among experts. Ministers, vice ministers, or parliamentary secretaries from the Cabinet Secretariat (Intellectual Property Strategy Promotion
Headquarters), Ministry of Internal Affairs and Communications, Ministry of Foreign Affairs, Japan Tourism Agency, Agency for Cultural
Affairs, and Ministry of Agriculture, Forestry and Fisheries are attending the said council meetings.
3) Pushing ahead with BOP businesses (¥2,810 million at maximum)
The government has pushed ahead with corporate projects on “BOP Business,” which would contribute to sustainably solving social
problems (providing water, daily commodities/services, and reducing poverty) for low-income class (4 billion people with annual revenues
less than $3,000, accounting for approximately 70% of the world population) in emerging economies. To be more specific, the government
sets up and operates “BOP Business Support Center” to push ahead with information exchange sessions or project works in collaboration
among support organizations, private enterprises, and NGOs.
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Pushing ahead with industrial clusters, etc.
4) Exporting infrastructures and systems
To draw on active demand for infrastructures, the public and private sectors have worked together to push ahead with
“infrastructures/systems exports” in accordance with Industrial Structure Vision and New Growth Strategy. To be more specific, as the
government set up “Package-type Infrastructures Overseas Sales Related Minister Conference” and worked on top-level diplomacy or other
public–private joint efforts, Japan has won new orders for large-lot projects in electric power and aerospace sectors.
5) Policy actions on rare earths (¥101,410 million)
The government has taken policy actions to stabilize supply of rare earths and provide stable production at user firms. To be more specific,
financed with FY2010 budget, researchers have developed new technology capable of substituting rare earths with other resources or
significantly reducing consumption of rare earths. In addition, the government provides support to R&D on rare metal recycling. In April 2011,
it also developed the final report of “Study Group on Collection and Appropriate Treatment of Rare Metals from Used Small Home
Electronics,” jointly held by METI and the Ministry for the Environment since FY2008. In addition, the government has developed “Policy
Package on Rare Earth,” which calls for 1) developing substitutive materials consumption volume reduction technologies, 2) recycling, 3)
granting subsidies for new domestic processing/production technology plants, and 4) mine development and interests assurance, and post
the fund of approximately 100 billion in the supplementary budget.
6) Local New Growing Industries Creation Promotion Program (¥1,390 million)
To tap into high-growing industrial sectors expected to serve as the driving force of local economies and encourage creation of new
businesses, and to continuously create/foster new growth industry clusters that actively utilize local communities’ various strengths,
characteristics, and potentials by forming networks consisting of a wide variety of stakeholders, such as the industry/the academy and
government organizations, the government has commissioned external service providers to assign coordinators for wide area partnership
purposes and to provide business matching services that will connect seeds and needs.
7) Pushing ahead with setting up domestic plants in low-carbon employment-creating industries (¥110 billion)
The government set aside reserve fund of ¥110 billion as supportive measures for domestic capital investment in lithium-ion batteries, LEDs,
eco cars, and other low-carbon industries that Japan has the competitiveness in and are expected to further grow in the future. After inviting
public participation, the government adopted 153 projects at the end of December 2010. With these projects, capital investment is estimated
to stand at approximately ¥530 billion. If all of these projects finish successfully, supporting industries will enjoy additional market demand
worth approximately ¥1.9 trillion a year. As a result, job opportunities for approximately 95,000 workers will be created, including in
supporting industries.
96
Pushing ahead with industrial clusters, etc.
8) Encouraging introduction of electric cars, plug-in hybrid automobiles, etc. (¥14,508 million)
To put a curb on CO2 emission or reduce heavy dependency on oil in the transportation sector, the government has granted subsidies,
which amount to a half of the price gap with conventional automobiles at maximum, to buyers of electric cars, plug-in hybrid automobiles,
clean diesel automobiles, etc. In addition, it also grants subsidies for installers of charging facilities.
9) Eco-point system for home electronics (¥692,968 million)
In May 2009, the government launched the “Program to Promote the Spread of Green Home Appliances by Utilizing Eco-Points,” which
provide buyers of green home electronics (energy-saving terrestrial digital broadcasting-compatible TVs, air conditioners, and refrigerators)
with eco points exchangeable with a wide variety of products, aiming to push ahead with anti-global warming projects, revitalize the
economy, and encourage diffusion of terrestrial digital broadcasting-compatible TVs.
In accordance with “Three-Step Economic Measures for the Realization of the New Growth Strategy,” as decided by the cabinet in
September 2010, the eco point program for highly energy-saving 5-Star products was extended until March 31, 2011 (the program is
applicable to products with single energy-saving label 4-Star or higher). In addition, “Comprehensive Emergency Economic Measures in
Response to the Yen’s Appreciation and Deflation,” as approved by the cabinet in October 2010, call for reexamination of eco points granted
from December 2010. Furthermore, the eco point program is only applicable to replacement purchase or recycle of home electronics
appliances. By doing so, the government aims at soft landing by mitigating a reactionary drop after termination of the eco point program.
10) Eco-point system for housing (¥144.2 billion)
The “Eco-Point System for Housing” provides eco points exchangeable with a wide variety of products if environmental-friendly eco housing
is newly constructed or renovated. METI, MLIT (Ministry of Land, Infrastructure, Transport and Tourism), and Ministry for the Environment
jointly established this project in December 2009 and started accepting application documents in March 2010. The FY2010 economic
package has extended this program for one more year and has provided eco points to household equipment installed with eco renovation
(e.g., solar heating system, water-saving toilets, and super-insulated bathtubs). By taking these actions, the government aims to increase
housing-related investment in wide variety of supporting industries, induce economic-stimulating effects, and increase energy-saving houses.
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Fostering small- and medium-sized enterprises (SMEs)
1) Encouraging corporate management innovations
The government has taken the following actions in order to support innovations in management by SMEs intended to significantly improve
management through new business activities conducted in quick response to changes in the economic environment, such as the
development and production of new products, the development and provision of new services, and the introduction of new methods of
producing and selling products and providing services.
- Loans provided by governmental financial institutions
Low-interest loans were provided to individual SMEs, associations, and voluntary groups implementing projects to carry out innovations in
management after obtaining approval of their business innovation plans based on the Act for the Promotion of New Business Activities by
Small and Medium-Size Enterprises.
- Special cases related to the Small and Medium-Size Enterprise Credit Insurance Act
As special cases of the ordinary insurance, unsecured insurance, and small-lot special insurance as specified under the Small and
Medium-Size Enterprise Credit Insurance Act, support was provided to facilitate the supply of funds for projects implemented after approval
of business innovation plans based on the Act for the Promotion of New Business Activities by Small and Medium-Size Enterprises.
2) Supporting SMEs’ overseas business expansion
To enhance support for SMEs’ overseas business expansion projects, METI launched “Conference on Supporting SMEs in Overseas
Business” (chaired by Minister of Economy, Trade and Industry) in October 2010. METI works with MAFF and related organizations to
create the framework to provide fine-tuned support mainly from regional bureau of economy, trade, and industry.
- SME Overseas Business Expansion Support Program (¥4,009 million)
JETRO and SME Support, Japan (the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN), which play core
roles in the “Conference on Supporting SMEs in Overseas Business,” have jointly provided SMEs with expert advices, support for
exhibition at overseas trade fairs, and support for exhibition at domestic trade fairs that attract a lot of overseas buyers.
- Japanese Brand Fosterage Support Program (¥654 million)
The government has provided subsidy to partially cover the cost of SME projects in which several SMEs work with one another to develop
their strategies based on strong/weak points of their materials, develop new products in line with such strategy, or exhibit at overseas trade
fairs.
98
4. Promoting Learning Activities related to Manufacturing Infrastructure Technologies
Enhancing Monodzukuri education in school education
1) “Become a specialist’ project (¥13,093 million at maximum for school/households/local community
collaborative promotion projects)
A project was implemented in collaboration with universities, research organizations, and others through the provision of
support for such distinctive initiatives as education that incorporates advanced technologies and skills.
2) Project to foster personnel that support local industries (¥13,093 million at maximum for
school/households/local community collaborative promotion projects)
The relevant ministries (METI, MLIT, and the Ministry of Agriculture, Forestry and Fisheries), together with specialized
high schools and the local industry, implemented initiatives to foster professional workers who protect the culture of
manufacturing as well as culinary and everyday life and support local industries.
3) Project to develop human resources with practical skills through industry–academia collaboration (¥1,207
million)
Educational programs that help to develop human resources with practical skills through industry–academia
collaboration at universities and colleges of technology were developed and implemented.
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Annex: Policy Actions planned for FY2011 for Promoting Manufacturing Infrastructure Technologies
Policy actions on promoting Monodzukuri infrastructures technologies in relation with the Great East
Japan Earthquake
Countermeasures on cash flow
1) Emergency Guarantee on Recovery from the Great East Japan Earthquake (the first supplementary budget:
¥320.9 billion)
2) Special loan on the Great East Japan Earthquake (the first supplementary budget: ¥178.6 billion)
3) Countermeasures against double loan debts (the second supplementary budget: ¥54 billion (for SMEs))
4) Emergency Financial Support Package for Middle- and Large-sized Corporations (the first supplementary
budget : ¥10.5 billion)
Supporting recovery on plants, school facilities, etc.
1) Temporary plants/stores construction project (the first supplementary budget: ¥1 billion; and the second
supplementary budget: ¥21.5 billion)
2) SME Associations or other Shared Facilities Disaster Recovery Subsidy (the first supplementary budget:
¥15.5 billion; and the second supplementary budget: ¥10.0 billion)
3) Support Experts Dispatching Program for Recovery/Reconstruction at SME Support, Japan (the first
supplementary budget: ¥1billion)
4) Recovery of school facilities, etc. (the first supplementary budget: ¥245 billion)
Countermeasures on harmful rumors
1) Subsidy for dose inspections of export products (the first supplementary budget: ¥670 million)
2) Actions on harmful rumors (expanding support for SMEs’ overseas business expansion) (expanding SMEs’
overseas business expansion) (the second supplementary budget: ¥2 billion)
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