NIRA OPINION PAPER
No. 59 | December 2021

NIRA OPINION PAPER
No.59 | December 2021

Japan as a Co-creation Partner- The Role and Challenges in a Digital Age Asei Ito

Adjunct Senior Fellow, NIRA /Associate Professor, Institute of Social Science,
The University of Tokyo.

With the spread of information devices in emerging and developing nations, theeconomies and societies of these nations are rapidly becoming digitalized. Theirgovernments are also embarking on new development initiatives, and the
expectations on foreign companies are changing dramatically. What role can theJapanese government and Japanese companies play against this background? In thisreport, I first summarize the main trends in the digitalization of emerging countries
since 2020, following which I focus on the role of Japan as co-creation partner in thelatter half of the report. In particular, I will examine five channels of economic
involvement: (1) Participation in development initiatives; (2) Research anddevelopment; (3) Market development; (4) Investment in local companies and strategic
alliances; and (5) Return of investment to Japan.
Japanese companies are beginning to invest in start-up companies in emerging
and developing nations and making efforts to create local businesses. In particular, it
is suggested that aspects of “Japan as a forerunner of issues facing advanced nations,”
such as problems of nursing care and medical care, may become more salient in theage of digitalization. At the same time, however, taking Southeast Asia and India as
examples, there are concerns that Japan's efforts may not be sufficient to meet rapidly
expanding needs, and that the nation’s presence may decline*.

This is a translation of a paper originally published in Japanese in December, 2021.

Copyright Ⓒ 2021 by Nippon Institute for Research Advancement
This is a translation of a paper originally published in Japanese. NIRA bears full responsibility for the translation
presented here.

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No. 59 | December 2021

Introduction - Questioning Japan’s Role in the Era of Digitalization
In recent years, the digital economy has made significant strides, as symbolized by therise of platform companies. In the midst of the COVID-19 crisis, there has been further
digitalization of administrative procedures, corporate activities, and consumer activities asmeasures to control the spread of the disease1. In Japan, the delay in the social implementationof digital technology was widely recognized against the background of the delay in COVID-19
countermeasures in 2020, and a policy-based shoring-up of the situation, as symbolized by thelaunch of the Digital Agency on September 1, 2021, has begun2.
The issue I would like to consider in this report is what role Japan can play as
digitalization progresses in other nations, in particular in emerging and developing nations3.
Historically speaking, Japan revitalized its external economic activities, in particularin Asia, from the 1960s onwards as the nation entered a period of economic recovery. Initially,
these activities were re-launched with Japan taking the role of “Japan as a provider of official
development assistance” (Figure 1). Later, in the 1980s and beyond, when the yen appreciateddue to the Plaza Accord and Asian nations took advantage of the wave of industrialization,
Japan began to play the role of an “advanced industrialized nation.” It invested directly in Asian
nations, established factories, created jobs, and transferred its expertise to manufacturing sites.
From the 2000s onwards, as it has faced the transformation of social issues represented byproblems such as the necessity for environmental measures and the transition to an aging
society with a declining birthrate in advance of other nations, Japan has played a role that may
be termed “Japan as a forerunner of issues facing advanced nations.”
Given this, the time has come for Japan to consider what position the nation can adopt
in the era of digitalization.

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presented here.

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No. 59 | December 2021

Figure 1 Genealogy of discussion of emerging countries and Japan's approach
Time period
1960s - 1970s

1980s - 1990s

2000s First half of 2010s

Late 2010s andbeyondMain issues
Era of the north-south problem:
postwar reconstruction, reduction ofpoverty / developing nations,
Colombo Plan
Era of industrialization: discussion ofindustrializing emerging countries,
cold war and developmental
dictatorship, Plaza Accord, flying geese
pattern
Era of market: Millennium
Development Goals (MDGs), BRICs,
resources, focus on consumer markets,
expansion of global value chains
Era of digitalization: Sustainable
Development Goals (SDGs), rise ofprotectionism, adjustment of global
value chains, populism, COVID-19
pandemic

Japan's approach
Japan as a provider of official
development assistance: postwar
reparations and development aid todeveloping nations
Japan as an advanced industrialized
nation:Expansion of official development
assistance (ODA), factory construction
through foreign direct investment (FDI)
Japan as a forerunner of issues facing
advanced nations:
Expansion of production networks, trade
in resources, infrastructure investment,
marketing to the middle class
Japan as a co-creation partner: Venture
investment, market development, cybersecurity cooperation, participation ininternational rules (artificial intelligence,cross-border data transfer)（Source） Adapted from my book, Dijitaru-ka suru shinkoukoku (“Digital Emerging Countries”) Figure 1.3

In international comparisons, it has been widely pointed out that the social
implementation of digital technology in Japan is lagging behind4. In light of this fact, what
approaches can Japan take toward emerging countries? One possible approach is to consider
both the positive and negative aspects of digitalization for emerging and developing nations, andto strengthen and realize the role of Japan as a co-creation partner5. On the positive side, we
can use digital technology to solve various problems in emerging countries and seize business
opportunities, and at the same time, we can learn from the trial and error of emerging countries
and return the results to Japan, which is lagging behind in digitalization. On the other hand, if
we look at the negative side, digitalization will, for example, increase the number of jobs in thelabor market that are not covered by social security systems. To address this issue, the provisionof support for skills training could be considered. In emerging countries, the problem of fakenews is even more serious than elsewhere, and we cannot ignore the problem of the developmentof “surveillance societies” from the convergence of authoritarian regimes and digital technology.
Furthermore, international rules are still in the process of being formulated in areas including
principles for the development and military use of AI (artificial intelligence) and cross-borderdata transfer, and Japan is expected to actively contribute to international discussions.

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No. 59 | December 2021
In the first half of this report, I will summarize recent changes in relation to thedigitalization of emerging countries. In the second half of the report, I will focus on the positive
aspects of digitalization that will expand the potential of emerging countries, and examine thetype of initiatives Japanese companies and the Japanese government are pursuing, considering
the nature of their potential, their implications, and the challenges they face.

1. Digitalization in Emerging Countries following the COVID-19 Pandemic
1-1. The Rise of Leading Companies emerging from ASEAN and India
With the further acceleration of digitalization since the COVID-19 crisis, new trends
have manifested in emerging countries. One point at issue is the tightening of regulations on
global platform companies and moves by companies in these nations to list on the stock market
and engage in mergers.
In July 2021, the G20 Finance Ministers and Central Bank Governors Meeting reacheda broad agreement regarding the taxation of giant multinational corporations, including GAFA
(Google, Apple, Facebook, and Amazon)6. In the original proposal, the line was drawn at 20
billion euros (approximately 2.6 trillion yen) in sales and a 10% profit margin, and themarket/user country would have the right to levy taxes on the excess profit portion. This could
provide a new tax base for emerging countries that do not have home-grown local platform
companies but have a large number of platform users7.
At the same time, the number of unicorn companies is increasing in emerging countries,
and the pace at which local companies are listing their stocks and merging with each other isaccelerating. In May 2021, it was announced that leading Indonesian start-ups Gojek andTokopedia would form a business alliance, creating a new company, the GoTo Group8. Combined,
the two companies will have a 2020 enterprise value of approximately 2 trillion yen, 100 million
monthly active users (MAUs), and 1.8 billion payments per year9. The company is reportedly
aiming for an overlapping listing on the New York Stock Exchange and the Indonesia Stock
Exchange10. The number of unicorn companies has also surged in India since 2020, reaching 57
as of September 2021. Local food delivery giant Zomato listed on the country's stock exchange
in July 2021, and payment service provider Paytm is reportedly preparing to do the same. In
terms of industry distribution, rather than the business-to-consumer (B to C) businesses of the

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NIRA OPINION PAPER
No. 59 | December 2021
past, business-to-business transactions (B to B) with small and medium-sized businesses andtraders as customers are now on the rise11.
In contrast to Southeast Asia and India, China, where the digital economy has matured
in terms of the rise of platform companies and growth in areas including B to B business, hasseen increased regulation of platform companies. In addition to the postponement of Ant
Financial's listing in the fall of 2020, immediately following Didi’s listing on the New York Stock
Exchange in June 2021, new downloads from app stores in China were suspended after thecompany was investigated by the Chinese government in relation to data security12. The Xi
Jinping administration is making “common prosperity” its new slogan, and is taking a tougher
stance against platform companies, which grew steadily in the 2010s.

1-2. The Operation of Digital Technology as seen in Myanmar and Azerbaijan
Digitalization also has negative aspects that deepen the vulnerability of emerging
countries. Negative aspects such as the fluidization of labor markets, the spread of fake news,
and the emergence of a surveillance society are becoming increasingly serious. Looking backover the past year, in addition to growing concern over the working environment of food delivery
couriers, we have also seen the threats that digitalization entails in the political and military
domains.
In the midst of the COVID-19 crisis, there is a sense that food delivery has become apart of life, especially in urban areas. Against this background, at the end of August 2021,
Singapore's Prime Minister Lee Hsien Loong announced a policy to enhance social security
coverage for gig workers who take one-off jobs from platform companie13. Mandatory injury
compensation and pension contributions by platform companies are expected to be considered.
The intention is to bring employment outside the social security system, which has increased
due to the expansion of the digital economy, into the framework of public social security.
Attention will be focused on this initiative to determine whether this is a sign that informal
employment in the digital economy is shifting to more formal employment.
On the political front, immediately following the military coup in Myanmar on
February 1, 2021, protests by the public were shared on social networking services (SNS),particularly Facebook. The sight of people marching and singing protest songs was encouraging
to many in the country. However, the army ordered providers to shut down Facebook and other

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NIRA OPINION PAPER
No. 59 | December 2021
social media on February 4, and connections have been unstable since then14. This was an
example of the rawness of Internet management under an authoritarian regime.
The military use of digital technology has also advanced. In September and October
2020, drones equipped with AI technology were deployed in military clashes between Azerbaijan
and Armenia in the disputed region of Nagorno-Karabakh. The Azerbaijani military, which
actively utilized the new weapons, won the battle and retook the region, which it had long been
unable to effectively control. Analysis suggests that the introduction of Turkish-made militarydrones by the Azerbaijani military neutralized the Armenian military’s anti-aircraft defense
network, which had been provided by Russia. It has been pointed out that the military balancein the disputed territories has shifted and that there may be an increasing number of military
conflicts between smaller nations in the future15. This news will also lead to concerns regarding
the introduction and proliferation of lethal autonomous weapons systems (LAWS) into actual
military conflicts.
Against this background, it would be desirable for the Japanese government andJapanese companies to play the role of Japan as a co-creation partner, focusing directly on boththe positive and the negative aspects of digitalization for emerging countries.

2. Five Pathways to Expanding Possibilities
Of the positive and negative impacts of digitalization on emerging countries, thefollowing section will focus on the positive aspects that contribute to solving local problems andstimulating economic development, and consider the ways in which Japanese companies andthe Japanese government should be involved16.
Looking at methods of launching businesses, there are a number of initiatives that are
already underway. These developments can be organized into the following five patterns ofapproaches to emerging digital markets: (1) Participation in government development projects;(2) Research and development; (3) Market development; (4) Investment in local companies andstrategic alliances; and (5) Return of investment to Japan (see Figure 2).

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Figure 2 Approaches to economic involvement in digitalization in emerging countries（Source） Prepared by the author.

The first approach is working to promote participation in digital development
initiatives through channels such as policy dialogue and cooperation agreements withgovernments and economic organizations in emerging countries, and to strengthen information
gathering17. From this perspective, the Japanese government has been taking the initiative inopening channels, in particular via Southeast Asian nations and the Association of Southeast
Asian Nations (ASEAN). Thailand was the advance staging post for these efforts, given that it
has been one of the most important bases for Japanese companies to advance into the region.
The Thai government has been seeking to promote smart manufacturing and the digital
economy under the slogan “Thailand 4.0”18, and in response to these policy trends, the two
governments signed a “Memorandum of Intent on Eastern Economic Corridor and Cooperation
on Upgrading Industrial Structure” on June 7, 201719. The Japanese business community is also
highly interested in the EEC, which the Thai government has made a priority project; amemorandum on investment promotion was signed between the Japan External Trade
Organization (JETRO) and the EEC Secretariat in October 201820, and Mitsubishi Electric
Corporation has been proceeding with the establishment of a factory automation demonstration
facility in the EEC21. With the dense concentration of Japanese companies in Bangkok, eventsfor Japanese start-ups, as described below, have been launched here in advance of othercountries, and the region can be seen as an advance experimental area for Japan's digitalization
strategy in emerging countries22.

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NIRA OPINION PAPER
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The Japanese government is also involved in a number of partnerships with the Indian
government, including the October 2018 Japan-India Digital Partnership, which, among otherthings, seeks to establish a Japan-India Startup Hub in Bangalore and invite Indian startups
to the Japanese technology exhibition CEATEC23. Forums for exchange, such as the “JapanIndia Digital Partnership Symposium” which was held in January 2021, seek to provide
opportunities to share business information even amid the pandemic, and these are expected toassist in promoting new business opportunities.
A related initiative is the Dialogue for Innovative and Sustainable Growth (DISG),
which is being promoted mainly by the AEM-METI Economic and Industrial Cooperation
Committee24. This is a framework for dialogue between representatives of industry, academia,
and government from Japan and ASEAN concerning what can be done to further enhance
growth potential and realize sustainable economic growth through the promotion of innovation
using digital technology, with cooperation between ASEAN and Japan. In view of the fact thatthe situation in ASEAN nations differs from one to another, it will be important to establish thistype of dialogue for each nation.
The second approach is for Japanese companies to establish R&D centers in emerging
countries, focusing on the digital and innovation fields. Between 2017 and 2019, Japanesecompanies were particularly active in establishing bases in Chinese cities that were centers ofinnovation. For example, the AEON Group established a development base in Hangzhou25, andKyocera established the Kyocera China Innovation Center in Shenzhen26.
The third approach is to develop the market: NEC has provided fingerprint and facerecognition technologies for India's biometric authentication system, Aadhaar27; this is a
representative example of Japanese companies working behind the scenes to support thedigitalization of emerging countries. Market development includes not only the provision ofelement technologies, but also the establishment of bases for social implementation and the
conducting of local demonstration trials of services that have already been developed in Japan.
Fujifilm has established health checkup centers in India focusing on cancer screening, which
represents an example of an attempt to test new services that have been difficult to implementin Japan due to regulatory issues in emerging countries28. Japan’s Ministry of Economy, Tradeand Industry (METI) has launched a project to support demonstration trials by companies inSoutheast Asia and India, which will be discussed in detail in the next section. In the area ofprovision of support for startup companies to participate in overseas trade exhibitions and their
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NIRA OPINION PAPER
No. 59 | December 2021
matching with major local companies (conglomerates), in addition to an interesting initiative
called Embassy Pitch at the Embassy of Japan in Thailand, in Bangkok29, the Japan External
Trade Organization (JETRO) is attempting to deepen ties with innovation hubs by utilizing its
offices around the world as part of a global acceleration hub project30.
The fourth approach is to invest in or deepen strategic alliances with leading start-ups.
Investments in venture companies do not only seek capital gains; it is also important for theinvesting party to make strategic investments in companies that can be expected to generate asynergistic effect. The SoftBank Vision Fund (SBVF) is actively conducting large-scale
investments in Japan and throughout the world. This initiative has thus far invested
approximately 200 billion yen each in unlisted emerging companies that are attracting attention
around the world. Softbank Chairman Masayoshi Son calls this a “Cluster of No. 1 Strategy”31.
Strategic alliances with local companies have also been developed. In China, Shionogi
has formed a strategic alliance with Ping An Insurance32, and Toyota Motor Corporation has
formed an alliance with a self-driving start-up company33. In Southeast Asia, strategic allianceswith local start-up platform companies are in the works; Toyota Motor Corporation and
Mitsubishi UFJ Financial Group, in addition to SoftBank, have invested in the ride-sharing
application Grab. Toyota has also entered into a strategic alliance with Grab to detect
abnormalities in vehicles based on driving data, allowing optimization of the frequency ofmaintenance34. Mitsubishi UFJ is also aiming to provide financial services to Grab users anddrivers35, an initiative that seeks to realize market development through collaboration andalliances with local platform companies.
The fifth approach is an attempt to channel the dynamism of emerging countries backto Japan. For example, there are moves to have overseas start-ups list on the Tokyo Stock
Exchange Mothers Index36. In addition to direct listing as a foreign company and listing throughthe establishment of a Japanese corporation, companies can also be listed using Japanese
Depositary Receipts (JDR), a system based on the increasingly common scheme in the U.S. oflisting by first depositing shares with a trust bank or similar financial institution and listing
securities issued based on this, rather than directly listing a foreign company. In terms of returnto Japan, one of the stated aims of the SoftBank Vision Fund has been to support the entry of
foreign unicorn companies into Japan. In a sense, this is an approach that seeks to promotesocial implementation in Japan by attracting foreign startups to the country as “black ships.”

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3. Tentative Evaluation and Points at Issue
3-1. Increase in Number of Corporate Partnerships and Lack of Absolute Value
How, then, can we evaluate the progress of these approaches? What will be offered here
is of course only a tentative assessment, given that the global outbreak of COVID-19 can beconsidered to have created difficulties in promoting new projects.
Figure 3 shows the number of collaborations in a broad sense (including investment,
capital and business alliances, joint development, etc.) being conducted by Japanese companies
with Southeast Asian start-ups, using information compiled by Kaori Iwasaki of the Japan
Research Institute based on company press releases and other publicly-available information.
A total of 86 projects were listed from 2012 to 2019; 10 projects are listed for 2020, during the
pandemic. This data demonstrates that there was an increase in the number of projects in the
fintech, mobility, and emerging technology areas, including artificial intelligence, up to theoutbreak of COVID-19.

Figure 3: Japanese companies: Investment in and collaboration with Southeast Asian startups(Source) Compiled from data provided by Kaori Iwasaki, Japan Research Institute. For data concerning the 86 cases
through 2019, see Kaori Iwasaki, “Partnership between Southeast Asian Startups and Japanese Companies andPossibilities of Listing on the TSE Mothers Board,” RIM Pacific Business and Industries, Vol. 20, No. 76, pp. 1-37, 2020.

While the number of initiatives themselves has increased, in terms of venture
investment trends, it is also the case that the number is insufficient in absolute terms.
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Investment in ASEAN and Indian startups expanded in total through 2019, but Japan's shareof this investment peaked in 2016 and has since been declining (Figure 4). Overall, Japanesecompanies have increased the number of new initiatives in which they are engaged, but in termsof volume, these efforts can be seen to be insufficient relative to the scale of growth of emerging
markets. Venture investment information differs depending on the data source, but acomparison of the ratio of venture investment in Southeast Asia and India using separate data
(Crunchbase) shows that Japan's share is declining37.
Of course, it is not always enough to simply increase financial input. While numerous
corporate venture capital (CVC) firms have been established in Japan, it should be noted thatwhat is demanded of them is not only to invest, but also to select investment projects with apurpose and strategy, and to accumulate expertise over time38. However, based on aggregatesin Crunchbase data, Japan's share in 2020 was 6.1%, and although Japanese companies havecontinued to launch initiatives even since the advent of the COVID-19 pandemic, there areconcerns that the gap between Japan and other nations will widen further39.
Figure 4: Trends in investment amounts in ASEAN and Indian start-ups by major nations andregions(Source) Prepared by the author from data in Ernst & Young ShinNihon, “Tounan ajia-tou/indo chiiki wo taishou nishita ajia DX gutaika ni muketa jittai chousa” (“Fact-Finding Survey regarding realization of Asia DX for Southeast Asia
and India Region”), p.49, Figure 23. Original data sourced from Preqin database.

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Progress in terms of the return of funds to Japan can also be said to be limited. With
regard to the deployment in Japan of technology and expertise originating overseas as
specifically supported by the SoftBank Group, one can cite the example of the popularization of
the PayPay payment application. On the other hand, Didi, a ride-share application in which
SoftBank has a stake, launched its service in Japan in September 2018 and expanded its service
area to 25 prefectures, but later reduced this number to 14. OYO, a major budget hotel company
in India, is also struggling to develop its business in the Japanese market40. Past examples
suggest that it is difficult for foreign start-ups to directly enter the Japanese market, and that
localization through the intervention of Japanese companies may be relatively effective. Looking
at listings on the TSE, as of May 2021, only two companies have listed using Japanese
Depositary Receipts (JDRs): TechPoint, a U.S. semiconductor design company, and Omni-Plus
System Limited, a Singapore-based plastics manufacturer and distributor41. As of 2021, it isreported that there are around 30 potential companies in waiting, but the “return to Japan”
remains limited42.

3-2. The “China Problem” and Economic Security
Another point at issue is the stance of strengthening economic security in various
nations due to the intensifying confrontation between the US and China. Currently, the UnitedStates, China, and Japan are all seeking to bolster their economic security. As a result, stricter
regulations are beginning to be applied to direct investment in emerging technology areas,
technology exports, and cross-border data transfers. With regard to the issue of data
management, it can be pointed out that in recent years, regulations have been strengthened not
only in the US and China, but also in emerging and developing nations, based on considerationsof the protection of privacy43.
The issue here is China's digital economy and its relationship with the domain of
emerging technology. To put it simply, “Is China a co-creation partner?” China is clearly pushing
forward with pioneering initiatives in the digital economy, and has become, in the true sense of
the phrase, a digital superpower. In terms of the unique business ecosystems created by
platform companies, and the active establishment of venture companies and creation of new
businesses, there are numerous business opportunities that Japanese companies should grasp
through collaboration, and many lessons that they should learn from business practices in
China. As an example of return to Japan, in the case of PayPay, a mobile payment application,
it is considered that technical expertise provided by Alibaba in China to Paytm in India was
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then transferred from India to Japan44. Cooperation with leading Chinese companies is moving
ahead, with the strategic alliance between Shionogi and Ping An Insurance, which has alreadybeen mentioned, just one example.
The first and most direct response demanded by increasingly stringent regulations iscompliance with those laws and regulations. The response will depend on the location of thealgorithms (technology) (on the Japanese side or the foreign side), the location of the data (onceagain, on the Japanese side or the foreign side), and whether or not these are transferred acrossborders. In particular in the case of sensitive technologies and data that are subject to technology
export control or the cybersecurity regulations of the nations concerned, it will be necessary to
avoid cross-border transfers as much as possible unless essential.
Another issue that must be considered is the selection of partners. As the U.S.-China
conflict intensifies, Chinese high-tech companies, led by Huawei Technologies, have been placedon the U.S. Department of Commerce's Entity List (EL). The background to this is the deep
relationship between companies, the government and the Communist Party in China, but oneof the specific issues is the policy of “military-civil fusion” promoted by the Chinese government45.
Many emerging technologies are dual-use technologies (i.e., technologies that can be used forboth civilian and military purposes). To take one example, numerous prominent start-ups haveemerged in China in the area of image recognition using AI and surveillance camera solutions
that utilize this technology. Many companies in these areas are also on the Entity List46. The
U.S. government has taken issue with the fact that the facial recognition technology provided
by these companies is also being used as a surveillance tool in the Xinjiang Uyghur Autonomous
Region, and is therefore closely associated with human rights issues.
Given this, how Japanese companies should position their relationships with Chinesecompanies and their local subsidiaries' R&D centers in the area of innovation represents a
difficult issue.

4. Attempting to develop Markets under Pandemic Conditions
4-1. Example of ADX program by METI
In order to study attempts to develop markets under pandemic conditions, below I willconsider the potential of Japanese companies based on projects supported by the Ministry of
Economy, Trade and Industry (METI). To date, the Ministry has supported projects under two
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frameworks, “ASEAN-Japan” and “Japan-India”; a total of 40 projects were selected for the
ASEAN region in FY2020 and FY2021, and it has been decided to provide support for eightprojects in India which will contribute to solving social issues47. The following section will focus
on the “Asia Digital Transformation (ADX) Projects” (referred to as “ADX Projects” below) andprovide an overview based on publicly available information.
Figure 5 shows a breakdown of the 40 projects being supported by METI in ASEAN bycountry. Thailand, which has already been mentioned, has the largest number of projects,
followed by Malaysia, Indonesia, Cambodia, Vietnam, and Myanmar. Singapore, which isconsidered to be a hub in Southeast Asia, has become a center for venture investment, but interms of market development, the number of projects being conducted is relatively small, due tosome extent to the progress of digitalization in the country and the limitations of its market.
Figure 6 shows the composition of industries being focused on (the author reorganized the data
based on JETRO data). Medical/healthcare/nursing care accounts for the greatest number ofprojects, followed by tourism/mobility, agriculture, and manufacturing. Considering that the
manufacturing sector accounts for approximately half of Southeast Asian subsidiaries ofJapanese companies, the percentage represented by the service sector here is high48.
Figure 5: Breakdown of Asia Digital Transformation ADX Projects by Country(Source) Calculations by the author based on JETRO website, “Projects selected as Asia Digital Transformation (ADX)
Projects (General and Special Frameworks),” (article published October 14, 2020; in Japanese) and “Projects selected
as a result of the 2nd Call for Asia Digital Transformation (ADX) Projects” (article published August 3, 2021; in Japanese).

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Figure 6: Breakdown of Asia Digital Transformation (ADX) Projects by Industry (FY2020 and
FY2021, 40 projects in total)(Source) As for Figure 5

What, precisely, are the projects that are being proposed in this context? Here, we will
focus on three types of projects from among those published on the JETRO website: those
involving large companies, those involving start-ups, and those involving small and mediumsized companies. A representative case of a project involving a large company, in terms of overall
structure, is Paramount Bed Co., Ltd.’s initiative to provide IoT solutions to nursing carefacilities in Indonesia49. This project seeks to deploy, in Indonesia, a device developed in Japanthat records the status of a patient’s sleep. As an example of a start-up company, we could point
as one example to Ssgri Co.,Ltd..50, which uses artificial intelligence to analyze satellite data andcreate digital maps, and aims to apply these maps to rice farmland in Thailand. As an example
of a small- to medium-sized company, one could cite ELM Inc.51. The goal of this company is todevelop a container-based vegetable cultivation system in Brunei, which relies on imports forthe majority of its fresh vegetables.

4-2. Can Japan's Expertise be Utilized?
These initiatives are still in the commencement phase, and it is therefore too early toevaluate them at this time. However, they do provide some suggestions for Japanese companies
considering the attempt to develop businesses in the digital sector in emerging countries.
The first question is how Japanese companies should differentiate themselves fromlocal companies, and in addition from platform companies. In areas in which platform
companies with a global reach have a competitive advantage (e.g., fundamental development ofartificial intelligence, matching with a large number of users, etc.) and, conversely, in areas in
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presented here.

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which only local companies have an advantage (e.g., areas requiring permits and approvals,
areas in which end users are decentralized and sales are costly, etc.), Japanese companies, as
foreign companies, may experience limitations. One possible solution would be to develop
industry- and application-specific solutions that have already been deployed in Japan.
The second question is how to devise ways to incorporate businesses in local
environments. In order to incorporate DX/IoT solutions in the field in emerging countries, it willbe essential to market solutions to on-site entities, for example hospitals in the case of medicalcare, nursing care facilities in the case of welfare, repair shops in the case of used parts,
fishermen and fishing businesses in the case of fisheries, and transportation agencies in the caseof mobility. It will also be essential to collaborate with these companies and institutions. It will
be necessary to consider how to effectively reach out to these entities.
A great many suggestions can be gleaned from the initiatives mounted by Japanesecompanies in ASEAN nations. One particularly important focus will be the possibility ofleveraging the expertise accumulated by Japanese companies over the course of their histories
when considering the nation’s role as Japan as a co-creation partner. There is room for Japanesecompanies to leverage their superior production management capabilities in the manufacturingindustry, extending their initiatives in the area of “Japan as an advanced industrialized nation
experiencing DX.” At the same time, numerous business proposals are emerging from what wemight term the “multiplication” of “Japan as a forerunner of issues facing advanced nations x
DX” in areas such as healthcare, nursing care, and agriculture. Not only large companies, butalso start-ups, will be able to flexibly expand their businesses globally; small and medium-sizedenterprises (SMEs) also have the potential to expand overseas52.

Conclusion: Three Challenges to becoming a Co-Creation Partner
As discussed above, Japanese companies have increased their efforts in becoming cocreation partners in emerging and developing nations in the digital era. Although such efforts
are still in the exploratory stage and this must therefore be a tentative assessment, the following
issues remain salient at this point.
First, while Japanese companies are increasing the number of new initiatives that they
mount in response to the rapidly expanding digital economies of emerging countries, theabsolute amount of money invested and the number of projects being conducted remain

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insufficient. As a result, there is a risk that there will be a further decline in the relative presenceof Japanese companies in this arena. In creating a position as a co-creation partner, it isdesirable that a specific number of business partnerships continue to be formed.
Second, in order to increase and deepen various forms of partnership, it will benecessary to share examples of effective application of each approach in Figure 2 in the future.
This means the sharing of “best practices.” In this report, I have presented five pathways, andinitiatives are moving forward in each of them. In future, it will be important to identify
successful examples in each pathway and examine the factors behind them, based on the resultsof the initiatives undertaken. At the same time, it may also be pointed out that while initiatives
undertaken by the Japanese government and Japanese corporations in Bangkok, as one
example, can be seen as pioneering, this does not mean that the experience and expertisegarnered as a result have necessarily been horizontally deployed in other emerging hub cities.
Third, Japanese companies themselves will ultimately need to undergo organizational
reform. They will need to consider organizational reforms in line with the path taken by their
new initiatives, such as increasing the sensitivity of information in relation to development
initiatives undertaken by national governments, considering the establishment of R&D centers,
and establishing open innovation systems linked to their head offices by granting local units acertain level of authority when making investments53. With regard to market development,
marketing companies related to local subsidiaries should be required to identify industryspecific demand. In the matter of returning solutions to Japan, it is possible that it will benecessary to align practices with Japanese business practices, rather than simply importing
them. Taking into consideration the examples discussed above, it will be necessary to devise
ways in which to incorporate new solutions into the Japanese context without reducing theirefficiency.
The trend which sees emerging and developing nations becoming increasingly
digitalized will be irreversible. In the midst of this trend, Japanese companies are undertaking
specific initiatives in a variety of areas, but they are still in the trial-and-error stage. It will be
desirable in future to examine the effects of these initiatives at a time when they can beevaluated in terms of market development.

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Note
* This paper is based on the discussion in Chapter 6 of Dejitaru-ka suru shinkoukoku - senshinkoku
wo koeru ka, kanshi shakai no tourai ka (“The Digital Emerging Countries: Transcending theAdvanced Nations or the Advent of the Surveillance Society?”; in Japanese) (Chuko Shinsho, 2020),
and is a substantially expanded version of “The New Phase of Digitalization in Emerging Markets:
Can Japan be a Co-Creation Partner?” which the author contributed to the September 25, 2021 issueof Shukan Toyo Keizai (published in Japanese). I would like to thank Ms. Kaori Iwasaki of the Japan
Research Institute for providing data on collaboration projects being conducted by Japanesecompanies. I would also like to thank Keiichiro Oizumi (Asia University), Kota Takaguchi(KINBRICKS NOW), and Ririna Yamamoto (Japan External Trade Organization (JETRO)) for theircomments on the draft of this report.
1 As representative examples, for a general overview see World Bank, “World Development Report

2016: The Benefits of Digitalization,” Ittosha (2016); for indicators, see OECD, Measuring the Digital
Transformation: A Roadmap for the Future (Paris: OECD Publishing (2019)); for trends in the AsiaPacific region, see OECD, Economic Outlook for Southeast Asia, China and India 2021: Reallocating
Resources for Digitalisation, (OECD Publishing (2021)).
2 Article published in the Nihon Keizai Shimbun, September 1, 2021; “Administrative DX in the Backwaters: Digital

Agency launched Today” (https://www.nikkei.com/article/DGKKZO75328960R00C21A9MM8000/)(In Japanese).
3 My book Dejitaru-ka suru shinkoukoku: senshinkoku wo koeru ka, kanshi shakai no tourai ka (“TheDigital Emerging Countries: Transcending the Advanced Nations or the Advent of the SurveillanceSociety?”; in Japanese) (Chuko Shinsho, 2020), published in October 2020, focused on the fact thatemerging and developing nations significantly advanced their level of digitalization in the 2010s.
4 The 2021 edition of the “White Paper on Information and Communications in Japan” includes asection titled “Causes of Japan’s Delay in Digitalization” and points out that Japan's ranking ininternational indicators of digitalization, including that offered by the United Nations Department of
Economic and Social Affairs (UNDESA), has been declining. As factors behind this decline, it points
to: (1) sluggish investment in information and communication technology, (2) ICT investment without
operational reform, (3) lack of ICT human resources and their uneven distribution, (4) past successful
experiences, (5) a sense of anxiety regarding and resistance to digitalization, and (6) insufficient digital
literacy. See the introduction to the 2021 edition of the Ministry of Internal Affairs andCommunications' “White Paper on Information and Communications in Japan 2021.”(https://www.soumu.go.jp/johotsusintokei/whitepaper/ja/r03/pdf/index.html)(In Japanese).
English version:(https://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2021/chapter-introductbehindion.pdf)
5 See Ito, A., Dejitaru-ka suru shinkoukoku: senshinkoku wo koeru ka, kanshi shakai no tourai ka(“The Digital Emerging Countries: Transcending the Advanced Nations or the Advent of theSurveillance Society?”; in Japanese) (Chuko Shinsho, 2020), Chapter 6.
6 Nihon Keizai Shimbun, June 28, 2021, “Digital Taxation: OECD Draft draws Line at 2.6 Trillion Yen

in Sales” (https://www.nikkei.com/article/DGXZQOUA25ENS0V20C21A6000000/)(In Japanese).
7 In this regard, the IMF research team estimated that tax revenues would decline by up to a

maximum of 0.15% against GDP in areas such as Singapore and Hong Kong (i.e., “taxation hubs”),
and that the effect of increased tax revenues on nations with larger domestic markets would be
negligible.
See Dabla-Norris, Era, Ruud de Mooij, Andrew Hodge, Jan Loeprick, Dinar Prihardini, Alpa Shah,

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Sebastian Beer, Sonja Davidovic, Arbind Modi, and Fan Qi, “Digitalization and Taxation in Asia,”
International Monetary Fund (IMF) Asia-Pacific and Fiscal Affairs Departments, Discussion Paper
No. 2021-017.
8 Techcrunch,

May 18, 2021, “Indonesia's Two Largest Startups, Gojek and Tokopedia, merge
Operations, forming New Company GoTo Group,”(https://jp.techcrunch.com/2021/05/18/2021-05-16-gojek-and-tokopedia-merge-to-form-goto-group/)(In Japanese).

Tokopedia HP, May 17, 2021, “Gojek and Tokopedia combine to form GoTo, the largest
technology group in Indonesia and the “go to” ecosystem for daily life”(https://www.tokopedia.com/blog/gojek-and-tokopedia-combine-to-form-goto-the-largesttechnology-group-in-indonesia-and-the-go-to-ecosystem-for-daily-life/)
910 Nikkei Asia, October 20, 2021, “Indonesia's GoTo bags $400 million from Abu Dhabi ahead of

IPO,” (https://asia.nikkei.com/Business/Markets/IPO/Indonesia-s-GoTo-bags-400-million-fromAbu-Dhabi-ahead-of-IPO).
11 Nihon Keizai Shimbun, September 15, 2021, “India's Unicorn Surge driven by 'Online BtoB',”(https://www.nikkei.com/article/DGXZQODK135J00T10C21A9000000/) and October 13, 2021,“Southeast Asian Unicorns rising, chasing the Indian Market,”(https://www.nikkei.com/article/DGXZQODK1179G0R11C21A0000000/) (both articles in Japanese).
12 Kwan, C. H., “Tightening of Regulations on Private Companies in China: The Cases of the Ant

Group and Didi,” Research Institute of Economy, Trade and Industry (RIETI), Chuugoku keizai
shinron, September 29, 2021 (https://www.rieti.go.jp/users/china-tr/jp/ssqs/210928ssqs.html) (InJapanese).
13 Nihon Keizai Shimbun, August 31, 2021, “Singapore to introduce Protection Measures for Gig

Workers,” (https://www.nikkei.com/article/DGXZQOGM30CIP0Q1A830C2000000/)(In Japanese).
14 Reuters, February 4, 2021, “Myanmar cuts off connection to Facebook,”(https://jp.reuters.com/article/myanmar-politics-facebook-idJPKBN2A33BO) (In Japanese).
15 Yomiuri Shimbun, December 21, 2020, “Drones wreak havoc in Battle over Autonomous Region,

Russia in Shock... 'Flagship Product' Missile Air Defense Network breached,”(https://www.yomiuri.co.jp/world/20201221-OYT1T50050/) (In Japanese).
16 Regarding the negative aspects of digitalization, the following issues can be raised: cooperation inskills education, contribution to the fight against fake news, cooperation with regard to cybersecurity,and contribution to the formulation of international rules. Because governments have a greater rolein these areas than companies, I will not consider them in this paper, but I intend to examine themin detail at another time.
17 Multilateral economic agreements such as the Trans-Pacific Partnership (TPP) and the Regional

Comprehensive Economic Partnership (RCEP) include chapters concerning e-commerce, but theirmain focus is on rule-making; from the perspective of mutual business creation, it will be necessary
to focus on cooperation that is more closely allied to specific business projects.
18 Oizumi, K., “What is 'Thailand 4.0” (Part 1) – “Thailand Steering a High-growth Path,” RIM Pacific

Business and Industries, Vol. 17, No. 66, pp. 91-103 (2017), and (Part 2) – “Development of the Eastern
Economic Corridor (EEC) and Its Challenges,” RIM Pacific Business and Industries, Vol. 17, No. 67,
pp. 99-115 (2017) (In Japanese).
Ministry of Foreign Affairs website, June 7, 2017, “Meeting between Japan’s Chief Cabinet
Secretary and Deputy Prime Minister of the Kingdom of Thailand, H.E. Dr. Somkid Jatusripitak,”(https://www.mofa.go.jp/mofaj/s_sa/sea1/th/page1_000345.html) (In Japanese)
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20 Japan External Trade Organization (JETRO), October 11, 2018, “JETRO Signs MOU with Eastern

Economic Corridor Officeto promote Investment by Japanese Companies,”(https://www.jetro.go.jp/biznews/2018/10/8cfc71a2e19134b5.html) (In Japanese).
21 NNA Asia, September 21, 2020, “Mitsubishi Electric to demonstrate the e-F@ctory Facility in the

EEC,” (https://www.nna.jp/news/show/2096059). A related channel for policy dialogue is theagreement on the Dialogue for Innovative and Sustainable Growth (DISG) at the Twenty-sixth AEMMETI Consultations in August 2020. See the Ministry of Economy, Trade and Industry’s press releaseof August 29, 2020, “Joint Media Statement,”(https://www.meti.go.jp/press/2020/08/20200828013/20200828013-6.pdf) (In Japanese)
English version: (https://www.meti.go.jp/press/2020/08/20200828013/20200828013-5.pdf)
22 For example, JETRO's Bangkok office conducted a questionnaire survey of human resources inThailand who had majored in computer science and similar fields (DX human resources); see JETRO,
March 2021, “Survey of Overseas DX Human Resources (Thailand),”(https://www.jetro.go.jp/ext_images/_Reports/02/2021/2f510f76d2af4fbd/report_0221_Thailand_rev.pdf) (In Japanese).
23 Ministry of Economy, Trade and Industry, October 29, 2018, “Agreement on Japan-India DigitalPartnership,” (https://www.meti.go.jp/press/2018/10/20181029004.html) (In Japanese).
24 Ministry of Economy, Trade and Industry, August 28, 2020, “ASEAN Economic Ministers Meeting

and Related Meetings Held,”(https://www.meti.go.jp/press/2020/08/20200828013/20200828013.html)(In Japanese)
English version: (https://www.meti.go.jp/english/press/2020/0828_001.html)
25 Nihon Keizai Shimbun, April 9, 2019, “Aeon establishes new company, Aeon Digital Management

Center, in China,” (https://www.nikkei.com/article/DGXLRSP507195_Z00C19A4000000/)(In Japanese).
26 Kyocera website, April 17, 2019, “Kyocera (China) Innovation Center opens in Shenzhen,”(https://www.kyocera.co.jp/news/2019/0402_shin.html) (In Japanese).
27 NEC Corporation website, October 12, 2016, “India’s Adhar Program, for which NEC provides

Biometric Authentication Systems, registers over 1 Billion People,”(https://jpn.nec.com/press/20161012_02.html) (In Japanese).
28 Nihon Keizai Shimbun, January 25, 2021, “Fujifilm opens a medical screening center focusing on

cancer screening “ (https://www.nikkei.com/article/DGXLRSP603729_V20C21A1000000/) (InJapanese).
29 NTT Data Institute of Management Consulting, Inc., “FY 2018 Asian Industrial Infrastructure

Enhancement Project (Surveys, etc. for the promotion of Business Development for JapaneseStartups in Thailand): Research Report,” commissioned by the Ministry of Economy, Trade andIndustry (https://www.meti.go.jp/meti_lib/report/H30FY/000165.pdf) (In Japanese).
30 JETRO website, “Global Acceleration Hub” (https://www.jetro.go.jp/services/jhub/) (In Japanese).
31 See SoftBank website, SoftBank News, February 16, 2018, “[Transcript]: FY 2018 3Q Results

Briefing (Part 1),” and the Q&A session in Part 2(https://www.softbank.jp/sbnews/entry/20180216_01) (In Japanese).
32 Shionogi website, October 13, 2020, “Establishment of Joint Venture Company between Shionogi

and Ping An Group,”Ping An-Shionogi”, and Business Plan of Ping An-Shionogi,”

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(https://www.shionogi.com/content/dam/shionogi/jp/investors/ir-library/presentationmaterials/fy2020/201013.pdf) (In Japanese)
English version: (https://www.shionogi.com/content/dam/shionogi/global/investors/irlibrary/presentation/2020/e-2011013.pdf).
33 Nihon Keizai Shimbun, August 26, 2019, “Toyota partners with Chinese Self-driving Vehicle

Startup,” (https://www.nikkei.com/article/DGXMZO48999270W9A820C1TJ1000/)(In Japanese).
34 Toyota Motor Corporation website, December 18, 2018, “Grab x Toyota Media Briefing,”(https://global.toyota/jp/newsroom/corporate/25713604.html).
35 Mitsubishi UFJ Financial Group, Inc, February 25, 2020, “Capital and Business Alliance withGrab” (https://www.mufg.jp/dam/pressrelease/2020/pdf/news-20200225-001_ja.pdf) (In Japanese).
36 Iwasaki, K., “The evolution of Southeast Asian Startups and Collaboration with Newly Dynamic

Japanese Companies: Prospects for TSE Mothers Listings,” RIM Pacific Business and Industries, Vol.
20, No. 76, pp. 1-37, 2020 (https://www.jri.co.jp/MediaLibrary/file/report/rim/pdf/11569.pdf) (InJapanese); Ioki, T., “IPO on Tokyo Stock Exchange Mothers: New Initiatives to Attract Asian
Startups,” JETRO Reports, August 4, 2020
(https://www.jetro.go.jp/biz/areareports/2020/0e92a25e2056157d.html) (In Japanese)
English version:(https://www.jetro.go.jp/en/jgc/reports/2020/16815068b4de6f77.html?_previewDate_=null&revision=
0&viewForce=1&_tmpCssPreview_=0).
37 The original data for Figure 3 is taken from the Preqin database, but details regarding investments

conducted through third nations, the registered locations of large-scale venture investment
institutions, and investment amounts are not publicly available, and this has affected the total to acertain extent. However, even when the amount is calculated from Crunchbase, which offers different
data, Japan's share of investment still displays a declining trend. For the CrunchBase data for India
and major ASEAN nations, see “Survey on Startup Investment to strengthen Competitiveness in
Emerging Asian Nations” (April 2021), DX Promotion Team, Invest Japan Department, Invest Japan
Division, Japan External Trade Organization (JETRO)(https://www.jetro.go.jp/ext_images/_Reports/02/2021/3b50f6dc3800fc5d/rpasia_202104all.pdf) (InJapanese).
For information on venture investment in the Southeast Asian region, see data published by Cento
Ventures, which ranks Japan sixth ($822 million) after China, Singapore, Australia, the U.S., andIndonesia in terms of the value of investment and third after Singapore and Indonesia in terms of thenumber of investments (45) in a cumulative total from 2013 to 2020. See Cento Ventures, “Southeast
Asia Tech Investment - FY 2020,”(https://www.cento.vc/wp-content/uploads/2021/04/Cento-Ventures-SE-Asia-tech-investmentFY2020.pdf).
38 The following report contains very useful recommendations for investment by Japanese companies

in ventures in emerging countries: Ministry of Economy, Trade and Industry and PwC, April 2020,“Current Status of Investment in Startups in Southeast Asia and India, and Recommendations forJapanese Companies: Research Report,” Report of the International Economic Research Project for
the Creation of an Integrated Domestic and Foreign Economic Growth Strategy (Research Project on
the Necessary Approach to Company Acquisition and Investment in Emerging countries)(https://www.meti.go.jp/policy/external_economy/toshi/kaigaima/kanren/southeastasia_india.html)(In Japanese).
39 Calculated from data published in the materials referenced in Note 37.
40 See Nihon Sangyo Shimbun, March 18, 2021, “Softbank’s Son’s AI Swarm Strategy: Japan is a

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'Testing Ground,'“(https://www.nikkei.com/article/DGXZQODZ2418G0U1A220C2000000/)(In Japanese).
41 Nihon Keizai Shimbun, May 27, 2021, “Foreign Companies listed on TSE for the First Time inThree Years and Nine Months via Japanese Depositary Receipts,”(https://www.nikkei.com/article/DGXZQOUC279U90X20C21A5000000/)(In Japanese).
42 Nihon Keizai Shimbun, June 29, 2021, “TSE to embrace Companies from Emerging Asian Nations;

More than 30 Companies consider listing,”(https://www.nikkei.com/article/DGXZQOUB2846W0Y1A620C2000000/) (In Japanese).
43 For recent trends in national regulations on transborder data transfers, see, for example, UNCTAD,

Digital Economy Report 2021: Cross-border data flows and development: For whom the data flow,
UNCTAD (2021), Chapter 5.
44 For an explanation by Masayoshi Son, Chairman of SoftBank, that the development of PayPay was

supported by Paytm, an Indian start-up company employing technology provided by China's Alibaba,see SoftBank News, February 8, 2021, “SBG is a “Golden Egg Industry”: Strategies to realize “Golden
Eggs” - SoftBank Group Corp. Q3 FY2021 Financial Results Briefing,”; approximately 53 minutes
into the report(https://www.softbank.jp/sbnews/entry/20210208_01) (In Japanese).
45 For a tentative assessment of military-civil fusion, see Kania, Elsa B., and Lorand, L., “Myths andRealities of China's Military-Civil Fusion Strategy,” Center for a New American Security, Technology& National Security Report, January 2021
(https://www.cnas.org/publications/reports/myths-and-realities-of-chinas-military-civil-fusionstrategy) and Lim, J., “Can “China Model” Compete? Evolving State Capitalism and Military-Civil
Fusion Strategy,” IFI-SSU-Working Paper No. 4, July 2021
(https://ifi.u-tokyo.ac.jp/en/wp-content/uploads/2021/07/SSU_WP4_Lim_EN.pdf).
46 TechCrunch, October 8, 2019, “Eight Chinese tech firms placed on US Entity List for their role inhuman rights violations against Muslim minority groups”(https://techcrunch.com/2019/10/07/eight-chinese-tech-firms-placed-on-u-s-entity-list-for-their-rolein-human-rights-violations-against-muslim-minority-groups/)
JETRO website, October 14, 2020, “Asia Digital Transformation (ADX) Projects (FY2020)(https://www.jetro.go.jp/news/announcement/2020/89bff31203b57b8b.html);” August 3, 2021, “Asia
Digital Transformation (ADX) Projects (FY2021)(https://www.jetro.go.jp/news/announcement/2021/d38074f8efc798ae.html);” August 3, 2021,“Subsidy for Promotion of New Business Creation including Asia Digital Transformation (ADX)
Projects (Japan-India Economic and Industrial Cooperation Project) (FY2021)(https://www.jetro.go.jp/news/announcement/2021/6854667ac8d219bd.html)(In Japanese).
47

48 According to the Ministry of Economy, Trade and Industry's 50th Basic Survey of Overseas Business

Activities (FY2019 results), there are 7,312 Japanese companies operating in the 10 ASEAN nations,of which 3,635, or 49.7%, are in the manufacturing sector and the remaining 3,677, or 50.3%, are in
the non-manufacturing sector(https://www.meti.go.jp/statistics/tyo/kaigaizi/index.html) (In Japanese).
49 “Demonstration project for the development of a more accurate monitoring Service business fortelemedicine and other situations using sensing devices in Indonesia, where the use of telemedicine
is spreading,” JETRO website, “Companies selected in the 2nd call for applications for Asia Digital

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Transformation (ADX) Projects”(https://www.jetro.go.jp/ext_images/_News/announcement/2021/d38074f8efc798ae/medicaly-4.pdf)(In Japanese)
English version:(https://www.jetro.go.jp/ext_images/_News/announcement/2021/d38074f8efc798ae/ADX2nd_projects_lists_english_rev2.pdf).
50 “Demonstration project to build a digital infrastructure for rice farmland information in

Thailandusing satellite data,” JETRO website, “Companies selected in the 1st Call for Applications for Asia
Digital Transformation (ADX) Projects”(https://www.jetro.go.jp/ext_images/_News/announcement/2020/89bff31203b57b8b/agri-3rv.pdf) (InJapanese)
English version:(https://www.jetro.go.jp/ext_images/_News/announcement/2020/89bff31203b57b8b/agri_eng-3.pdf).
51 “Development of temperate vegetable cultivation technology in Brunei using the container-type

robotic cultivation system 'EcoNursery®',” JETRO website, “Companies selected in the 2nd call for
applications for Asia Digital Transformation (ADX) Projects”（https://www.jetro.go.jp/ext_images/_News/announcement/2021/d38074f8efc798ae/agri-1.pdf） (InJapanese)
English version:(https://www.jetro.go.jp/ext_images/_News/announcement/2021/d38074f8efc798ae/ADX2nd_projects_lists_english_rev2.pdf).
52 See also Nihon Keizai Shimbun, November 25, 2021, “Sites of Nursing Care: an Opportunity to

improve the 'Japanese Model' for DX Competition”(https://www.nikkei.com/article/DGXZQOCD17B8H0X11C21A1000000/) (In Japanese).
53 As one recommendation related to venture investment, the Ministry of Economy, Trade andIndustry and PwC, “Current Status of Investment in Startups in Southeast Asia and India, andRecommendations for Japanese Companies: Research Report” cites the creation of a mechanism for
rapid decision-making.

Asei Ito
Professor Ito is an Adjunct Senior Fellow of the Nippon Institute for
Research Advancement (NIRA), and an Associate Professor in theInstitute of Social Science of The University of Tokyo.

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presented here.

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