K I ZU NA

Spring2022

Linking Japan and the World

Key Policy Issues

Wellness & Medical Innovation

KIZUNA

KANAZAWA SHOKO
Calligraphy Artist
Born in Tokyo in 1985, she started learning
calligraphy from her mother when she wasfive years old. One of the notable young
calligraphers of today, her solo exhibitions
have been held throughout the world,in cities such as New York, Singapore,and Prague. She was selected as one of theofficial poster artists for Tokyo 2020.

Welcome to KIZUNA, the official
magazine of the Government of Japan.
This bold work of calligraphy is
絆(kizuna) written in Japanese. Kizuna
means the enduring bonds between
people—close relationships forgedthrough mutual trust and support.
Originally describing the rope used
to tether domestic animals such as
horses and dogs, the meaning of
kizuna has evolved over the years. A
passage in The Tale of the Heike,compiled in the 13th century, uses theterm to refer to the bonds of love
between a father and his children.
More recently, kizuna has gone
beyond bonds tying together family
and close acquaintances; it is now
used in a broader sense of human ties
and connections. Of particular note is
the kizuna born among people during
natural calamities, which fosters
feelings of solidarity and serves as theunderlying strength to overcome
hardships.
Similarly, the kizuna cultivatedamong the countries of the world has
the power to deepen cooperation for abetter future. By reporting on a wide
variety of topics concerning Japan, we
hope that this magazine will provide
opportunities for Japan and the rest of
the world to connect and build
strong kizuna.

CONTENTS
KEY POLICY ISSUES

04

Building a Post-COVID-19 New Japan:
Policy Speech by PM Kishida

06

Vision for a Digital Garden City Nation: Achieving
Rural-Urban Digital Integration and Transformation

08

Tackling Local Challenges Through Digital
Transformation

10

Economic Measures to Overcome COVID-19 andPioneer a New Era

12Special Address at Davos Agenda on a New Form of
Capitalism

16

Lessons from SHIBUSAWA Eiichi, the Man Who
Formed the Foundation of Japanese Capitalism
PORTRAITS OF JAPAN18

Japanese Spring Blooms on the Dining Table
WELLNESS & MEDICAL INNOVATION

20

An 8K-Image Technology:
A Game-Changer for Future Surgery

22

A World Without Blindness:
A Bio-Venture’s Enduring Pursuit

24

Medical Innovation Blooms in Global Startup Cities

26

Ikigai: The Japanese Secret to a Joyful LifeREGIONAL STRENGTH

28

The Flavor of Fukushima Lights Up Reconstruction
SUSTAINABILITY

30

Ethical Lifestyle Movement Rooted in Traditional
Japanese Values

Spring 2022

COVER
Top: To observe digitalization in rural
areas, Prime Minister Kishida attended amock computer-based class at Ehime
Prefectural Matsuyama Higashi HighSchool in November 2021.
Bottom Left: A man over 90 years old in
Ogimi Village, Okinawa Prefecture lives
actively with “ikigai,” which brings value
and joy to life.
Bottom Right: Dr. CHIBA Toshio
developed the world’s first 8K endoscope.

03

KEY POLICY ISSUESBUILDING A POSTCOVID-19
NEW JAPAN:
POLICY SPEECH BY PM KISHIDAAN EXCERPTJANUARY 17, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202201/_00009.html

Introduction
The highest priority issue for the administration is
responding to COVID-19. It is precisely because we arefacing the hardship of COVID-19 that, rather than standtransfixed, we should build a post-COVID-19 new Japan,
with everyone taking up this challenge in cooperation.
Fundamental approach to COVID-19 responses
I advance our responses based on the most up-to-dateknowledge in a level-headed manner, as I listen to the viewsof experts. Even for policies on which decisions have alreadybeen taken, I intend to once again develop our response
flexibly and without hesitation if a better approach exists.
Responses to the Omicron strain
By adopting the most stringent border measures among
the G7 countries, we have minimized the inflow of theOmicron strain and we have had time to prepare for an
increase in the number of domestic cases of infection. We
will maintain the framework of border measures until theend of February.
Beyond that, from now we will place importance on
domestic countermeasures. We will redouble our efforts toensure that our medical treatment structures are solidly inplace, with a focus on providing unerring medical treatment
to patients with severe or moderate symptoms and persons
at high risk.
Reinforcing our domestic framework of prevention,
testing, and early treatment will also be critical. We willfurther accelerate the schedule for administering the third
vaccine dose. The orally administered therapeutic has
already been delivered to medical facilities.
A new form of capitalism
From the perspectives of both our Growth Strategy andour Distribution Strategy, we will embed structures into04

capitalism that correct its various harmful effects, thereby
maximizing the benefits that capitalism brings.
Under our Growth Strategy we will work to resolve social
issues, including digitalization, climate change, economic
security, and science, technology and innovation, andalso bring together investments from both the public andprivate sectors into fields where Japan has been weak thus
far to transform them into engines for growth.
We will also confront the problems of distribution anddisparities head on, leading to subsequent growth. In thisway, we will set the economy in motion from both thegrowth and distribution fronts, and by giving rise to a
virtuous cycle, we will create a sustainable economy.
The first pillar of the Growth Strategy is revitalizing
regions through digitalization. We will vigorously promotea Vision for a Digital Garden City Nation while also
realizing bottom-up growth, from the regions to the nation
as a whole.
Economic security is also a major pillar. We will enact
new laws to, among other things, provide support formaking the supply chain more resilient, prepare a safety
pre-screening system for critical equipment and systems
within core infrastructure, and prepare a patent nondisclosure system for inventions that are sensitive in termsof national security.
If we are to elevate social issues to become engines ofgrowth, the power of science, technology, and innovation
will be absolutely essential. Establishing a five-year plan, we
will work to get startups off the ground on a large-scale.
The key to realizing a sustainable economy is ourDistribution Strategy. First and foremost is wage increases.
Second, we will undertake a fundamental strengthening ofinvestments in people. We will at least double public andprivate investments made in people at an early time. Third,
we will maintain the middle class of the next generation,
which will shoulder the responsibilities of the future.

Focusing on families with small children and the young
generation, we will work to raise household income.
This spring we will compile both the grand design of the
new form of capitalism and an action plan. We will share
this same awareness of issues with leaders around the worldand build up a surge heading towards changes to capitalism.
Responses to the problem of climate change
The public and private sectors are working to share
a common overall vision, urgently at least doubling
investments into this field and we will be engaged in atransformation of our economy and society as a whole. We
will show to the public a path forward for economic andsocial changes, as our Clean Energy Strategy.
To contribute to the decarbonization of the world,
especially Asia, we aim to join forces with like-mindedcountries in creating the “Asia Zero Emissions Community.”
Towards a society in which all people can feel their purpose in life
We will work to foster women’s economic independence
and eradicate violence against women.
We will establish an Agency for Children and Families inorder to place policies affecting children at the very centerof our society.
Regional revitalization
We will work to transform agriculture, forestry, andfisheries into growth industries.
Keeping the post-COVID-19 world firmly in view, we
will promote a shift to greater added value in the tourism
industry.
Disaster response measures
I am strongly determined for us to reinforce our efforts toprevent and reduce disasters and enhance national resilience.
In regard to the reconstruction from the Great East
Japan Earthquake, we will advance our measures allowing
temporary stays in preparation for returning to the area,
moving towards the lifting of the evacuation order on
Reconstruction and Revitalization Bases.
Diplomacy and security
Firmly holding aloft the flag of ideals for the future,and, looking squarely at the actual situation, I will pursue“realism diplomacy for a new era.”As the first pillar, we will place importance on theuniversal values and principles of freedom,democracy, human rights, and the rule oflaw. I will hold talks with President Biden,
and we will further reinforce the deterrence
and the response capabilities of the Japan-U.S.
Alliance.
The abductions issue is one of the highest priority
issues. Working in cooperation with other countries, I will
do everything in my power to realize the return of all theabductees to Japan at the earliest possible date.
The concept of a “Free and Open Indo-Pacific” issupported by many nations. The Quad of Japan, Australia,
India, and the United States is advancing its cooperation,with practical cooperation taking concrete shape. We
will also strengthen our cooperation with ASEAN andthe countries of Europe. The peace and stability of ourneighboring region is also important.
As the second pillar, we will actively work to tackle
global-level challenges. I will establish the International
Group of Eminent Persons for a World Free of Nuclear
Weapons, with the participation of current and former
political leaders from around the world. We will convene
the first meeting in Hiroshima, aiming at sometime within
this year.
The third pillar is efforts to resolutely and fully defend
the lives and livelihoods of the Japanese people. We will
spend roughly a year drawing up a new National Security
Strategy, National Defense Program Guidelines, and MidTerm Defense Program.
We will realistically examine all options, including
possessing what is called “enemy base attack capability,”
without excluding any possibilities. We will fundamentally
reinforce our defense capabilities with a sense of speed,
including through the supplementary budget enacted lastmonth and the budget for fiscal year 2022.
Constitution
Within this Diet session too, I wholeheartedly lookforward to active debates on the Constitution being held.
Conclusion
Now, as we carve out a new era, we politicians and theadministration are called upon to reform and control
ourselves. I will engage in my duties humbly, aiming at politics
of trust and sympathy. I make a sincere request to all theJapanese people for their understanding and cooperation.

05

KEY POLICY ISSUESVISION FOR A DIGITALGARDEN CITY NATIONACHIEVING RURAL-URBAN DIGITAL INTEGRATION AND TRANSFORMATIONDECEMBER 28, 2021

To maintain future prosperity in the outlying regions of Japan and to encourage many people around the world
to gain a deeper understanding of and connection with the country’s rural areas, Prime Minister Kishida has put
forward his Vision for a Digital Garden City Nation, which aims to achieve rural-urban digital integration andtransformation.
The vision focuses on four broad initiatives, as follows:Ⅰ

Building digital infrastructure90%
5G coverage

The first is the building of digital infrastructure that stretches to every corner of the country, comprising
the following four goals: 1. The completion, in roughly three years, of a digital superhighway using submarine
cables surrounding the islands of Japan; 2. The building of more than a dozen regional data centers in about five
years; 3. Making optical fiber a universal service by 2030, with 99.9% coverage of households, and; 4. Achieving
5G coverage for 90% of the Japanese population by the end of fiscal 2023 (March 31, 2024). With thoseobjectives completed, it will be possible to use high-speed, large-capacity digital services anywhere in Japan.

II

Developing and securing
human resources with digital skills

2.3

millionhuman resources

The second initiative is the development and securing of tech-savvy human resources. Aiming at theacquisition of powerful digital skills on the part of university students and those receiving vocational training,etc., the initiative will establish a program to annually train 450,000 personnel to be responsible for thepromotion of digitalization in local regions, by the end of fiscal 2024 (March 31, 2025), reaching a total of 2.3
million by 2026.
The Tsuruoka Science Park, located among the beautiful rural
scenery surrounding Tsuruoka City in Yamagata Prefecture in
northern Honshu, is home to research institutes and venturecompanies that continue to create innovative technologies.

06

III Implementing digital services to solve rural issues

NEW

digital services

The third initiative builds on the first two initiatives to provide new digital services. For example, thefollowing goals will be being worked towards: 1. Realizing an agriculture sector by 2025 in which almost all
farmers in the country will practice “smart agriculture” with advanced technology—including AI, robots, andIoT—for improved efficiency and productivity in the face of labor shortages due to an aging population; 2.
Implementing new mobility service initiatives across about 40% of local governments nationwide, such as
setting up mobile clinics to eliminate medical disparities among regions; 3. Achieving digital transformation
at approximately 70% of all logistics companies, including the use of drones and automated delivery robots,by fiscal 2025 (ending March 31, 2026); 4. Providing an educational ICT environment that is fair andoptimized individually for each child, by distributing a digital device to each student attending school. The
aim is to let children from diverse backgrounds
further develop their qualities and abilities
without anyone being left behind; 5. Working
on revitalizing the country’s outlying regions
through digital technologies, by carrying out
such actions as promoting remote work atsome 60% of all local public organizations so
as to create a flow of people and work, and; 6.
Utilizing digital tools to connect local small
and medium-sized enterprises with overseas
businesses, so as to introduce the advantages ofJapanese products more widely and deeply.
Top: In November 2021, Prime Minister Kishidavisited Ehime Prefectural Matsuyama Higashi
High School to inspect a class making use of ICT.
Left: Digital technology is being introduced into
Japanese agriculture to improve the efficiency offarm work and the quality of products.
Right: The imminent use of drones to deliver
packages to depopulated areas is highly
anticipated.

Ⅳ Initiatives to leave no one behind

10,000digitalization supporters

The fourth initiative will, in addition to the previous three initiatives, establish a human-resource support
system to promote and realize a digital society where no one is left behind and where everyone can enjoy
the benefits of digital technologies regardless of his or her age, gender, or geographical location, among othercharacteristics. The system will begin in fiscal 2022 (i.e., from April 2022), with more than 10,000 digitalization
supporters nationwide, and will be enlarged as time goes on.

The above four initiatives, using digital technology, will realize new rural environments nationwide that areboth convenient and attractive while maintaining their prosperity, and will revitalize Japan as a whole throughthe bottom-up growth emanating from such areas.

07

KEY POLICY ISSUESTACKLING
LOCAL
CHALLENGES

Bandai Town is working on digital tranformation such as
issuing a digital currency using blockchain technology. It
also holds smartphone classes for seniors so that everyone
can enjoy the digital life. HIRO/A.COLLECTIONRF/AMANAIMAGESTHROUGH DIGITAL TRANSFORMATION

Efforts are underway across Japan to tackle local challenges through the power of digital transformation, leading toregional revitalization. One such example is the digital transformation being implemented in a rural area of
Fukushima Prefecture.
The Aizu region of Fukushima Prefecture is locatedabout 200 km north of central Tokyo. Blessed with
an abundance of nature, including Mt. Bandai and
Lake Inawashiro, Aizu is emerging as a region where
digital transformation is being incorporated into thevery fabric of local government. The need for digitaltransformation stems from the same challenge being
faced by regions throughout Japan: an aging andshrinking population.
With a population of just 3,300, Bandai Town
was the first local government in the country to
appoint, in November 2019, a Chief Digital Officer,

08

or CDO. “We’ve been working to move our systems
online, to the cloud, so that anyone, anywhere, cantake part in local government administration,” states
SUGAWARA Naotoshi, the town’s CDO. “Anoutflow of human resources has been an issue in the
countryside, but with the obstacle of transportation
removed, those living outside the town have been able
to get involved in matters of management. Where
there are people, more ideas are generated, and that
attracts even more people. The shortage of humanresources can be overcome with digital technology.”
In July 2021, Bandai Town issued its own digitalAizu region

Top: Prime Minister Kishida taking a look at
Aizuwakamatsu’s smart city initiative. With
the large screens at Smart City AiCT, users
can hold meetings online as if in the sameroom with each other.
Bottom: Opened in 2019, Smart City AiCT
has helped to create jobs in the region. New
innovations are expected to emerge from its
open interaction environment.

currency using the blockchain platform known as
Hyperledger Iroha. Hyperledger Iroha is an industrystandard technology from Japan developed incollaboration with Soramitsu Co., Ltd., a company
with a proven track record in blockchain technology
around the world, and the University of Aizu,
dedicated to computer science and engineering
education. The year before, the National Bank of
Cambodia chose Hyperledger Iroha when it launched
the world’s first central bank digital currency, and thetechnology is also being considered by the central
banks of Laos and Fiji for similar purposes. “Digitalcurrency enables the visualization of local economies
through the analysis of recorded data. The challenge
is how to circulate this currency within the region,”says Sugawara.
Ever since it pledged a decade ago to become a“smart city,” Aizuwakamatsu, one of the primarycities of the Aizu region, has been promoting theuse of ICT. The city has been making innovations
specifically aimed at its citizens, having developeda system of telemedicine using tablet devices, forexample, as well as a real-time display to show
where its snowplows are working, given the area’s
particularly heavy snowfall.

SUGAWARA Naotoshi,
appointed as Bandai Town’s CDO
two years ago, says, “I want todevelop the potential of the region
through the power of digitaltechnology.”

In 2019 the city opened an ICT office known as
Smart City AiCT to attract talent from the greater
Tokyo area and create jobs for young people. Thirtyseven companies from Japan and overseas, including
NEC, Microsoft, and Accenture, have offices atthe open innovation base. With a population of
120,000 and as a hub for industries in the ICT sector,
Aizuwakamatsu City is fast becoming a place where
forward-looking proof-of-concept trials are being
conducted in a wide range of fields full of potential,from new forms of mobility and self-driving robots
to the establishment of energy management systems
with electric vehicles as storage batteries.
To realize the sustainable society outlined by theJapanese government’s Vision for a Digital Garden
City Nation initiative, each region is working on
carrying out a digital transformation in its own
way, consistent with its needs and scale. Asked
about what Bandai Town will be like 10 years fromnow, Sugawara replies, “I doubt the town will havechanged much. Because digital technology is a meansof infrastructure, I imagine the town’s residents will
be able to continue living the same happy lives incommunities that are aided by the power that digitaltechnology provides. That is Bandai Town’s digitaltransformation.”

09

KEY POLICY ISSUESECONOMIC MEASURESTO OVERCOME COVID-19 AND PIONEER A NEW ERANOVEMBER 19, 2021

On November 19, the Japanese government determined new economic measures amounting to a projectwith a scale of 78.9 trillion yen, accompanied by a fiscal expenditure of 55.7 trillion yen.
Japan’s national economy, having suffered damage due to the COVID-19 epidemic, remains beset bynumerous difficulties. The number of new infections is on the wane, however, and restrictions on the activities
of Japanese people are gradually being eased.
The government will turn this situation into an opportunity and use the momentum of the new measures torestart socioeconomic activity at a near-normal level, as quickly and as early as possible, while still in the
COVID-19 era. A “New Form of Capitalism” will be launched to achieve a virtuous cycle of growth anddistribution, thereby setting the economy on a self-sustaining growth trajectory.
In order not to lose any of the momentum that Japan has gained so far, the government will adopt all feasiblemeans of risk management to deal with a possible resurgence of COVID-19. In addition, the government will
pay close attention to the downside risks that a new wave of infections or a disturbance in supply chains would
pose, thus preventing the bottom from falling out of the economy.
The four pillars of the new economic strategy and their economic effects are as follows:

Ⅰ

Prevention of the spread of new coronavirus infections

22.1

trillion yen

In view of the suppressed infection rate due to the increase in vaccinations, the government will reinforce
the medical care system, promote further
vaccinations, and ensure the procurementof therapeutic drugs. In conjunction withthese efforts, the government will disburse
cash benefits, in proportion to the scale ofoperations, to business owners who havesuffered a significant impact. Financial aid will
also be offered to people in dire circumstances.

Ⅱ Resumption of socioeconomic activities in a “Live withCoronavirus” environment and preparation for the next crisis

9.2

trillion yen

Vaccines and testing packages will be used to monitor and control the risk of infection spread. To stimulate theresumption of socioeconomic activity, the government will endeavor to boost demand in business sectors thathave suffered significant losses due to COVID-19. The government will promote the domestic development ofvaccines and therapeutic drugs in preparation for the possible appearance of new variants and/or new infectious
diseases. Japan will also contribute to international efforts to end the worldwide spread of COVID-19.

10

Ⅲ Launching a “New Form of Capitalism” to carve out
a future society

19.8

trillion yen

By growing the economy and distributing the fruits of that growth, Japan will achieve a widespread increasein national income, leading to further economic growth. In order to realize this virtuous cycle of growth anddistribution, the government will promote a growth strategy for a post-COVID society by making boldinvestments toward three primary pillars: the realization of a “science and technology nation,” the launch of a
“Vision for a Digital Garden City Nation,” and the attainment of economic security. The government will also
implement a distribution strategy that strongly supports the strengthening of distribution in the private sector, as
well as bolstering the distributive functions in the public sector.
Regarding the growth strategy, the realization of a “science and technology nation” will include theestablishment of a 10-trillion-yen university fund, investment in clean energy, and thorough support for startups. The “Vision for a Digital Garden City Nation” will involve the development of digital infrastructure, thepromotion of online administrative procedures, the encouragement of local regions to become the originators ofchange, the revitalization of agriculture, forestry and fishery industries, along with that of the tourist industry, andassistance to small and medium-sized enterprises to enable them to refurbish themselves and improve productivity.
Furthermore, a fundamental reinforcement of economic security will provide the nation with autonomy,competitiveness, and indispensability, and ensure that Japan achieves an autonomous economic structure.
The distribution strategy calls for a strong investment in people, thereby bringing security and growth. The
measures that the government will undertake include support for pay increases, investment in human capital andwork-style reform, increased distribution to non-regular employees, a review of the state of public prices, andsupport for children and their caregivers. These measures will build a society that leaves no one behind and will
strengthen distribution to workers as well as to those who have not benefited from economic growth in the past.

Ⅳ Ensuring safety and peace of mind through measures
to prevent and reduce disasters and to enhancenational resilience

4.6

trillion yen

Measures to prevent and reduce disasters and to enhance national resilience will be taken against storm andflood damage, which has become increasingly catastrophic and frequent due to the effects of climate change, as
well as against large-scale earthquakes and tsunamis.
Every effort will be poured into the restoration and reconstruction necessitated by the Great East Japan
Earthquake of March 2011 and other natural disasters, including the torrential rains of summer 2021.
Furthermore, as the security environment surrounding Japan is becoming increasingly severe, the country will
resolutely defend its territory, territorial waters, and airspace, as well as the lives and assets of the Japanese people.

Economic effect of the new measures
The smooth and steady application of these measures will strengthen the economy,
offset the downside risks, deal effectively with the threat posed by COVID-19,
stimulate private-sector demand, and place the economy on a self-sustaining growthtrajectory led by that demand.
New expenditures related to the above measures are estimated to support and boost
real GDP by approximately 5.6%.

GDP
%
5.6
boost

11

KEY POLICY ISSUESSPECIAL ADDRESS AT DAVOS AGENDA ON

A NEW FORM OF CAPITALISMJANUARY 18, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202201/_00008.html

On January 18, Prime Minister Kishida attended the World Economic Forum (WEF)’s Davos Agenda
meeting, which was held online. In his special address, he introduced his vision with an emphasis on the revivalof the Japanese economy through a “New Form of Capitalism.”
Pointing out global challenges ranging from climate change to social digital transformation, a widening of
the income gap and rising poverty, he underscored his determination to lead the global trend with this “NewForm of Capitalism,” demonstrating concrete examples of how capitalism can evolve.
The prime minister also stated that in this “New Form of Capitalism,” he would achieve a “virtuous cycle ofgrowth and distribution,” by launching new mechanisms to inspire investment and change the way of sharing
added values. He also elaborated on his priority policies: establishing a green society; promoting digitalization;and investing in people, and pledged to boldly pursue the inclusive transformation of Japan’s economy and society.

Prime Minister Kishida, in a speechat the Davos Agenda meeting,underscored his determination toachieve a “New Form of Capitalism.”

Professor Schwab,Distinguished guests,
First of all, let me extend my heartfelt congratulations
on the holding of the World Economic Forum’s “Davos
Agenda 2022” today.
1. Introduction
Last year, I went through some of the toughest
challenges that risked my political career. First, I ran

12

for presidential election of the ruling party (Liberal
Democratic Party: LDP) and won, taking the office as thePrime Minister. Then my party won the general elections
by securing a stable majority. My political style is to take anaggressive approach and introduce policies swiftly, while
placing the utmost importance to directly communicatingwith the people and workers at the frontline.
I will make the most of my approach to directly
tackle three agendas during my administration. First,

Growth provides resources through increasing
corporate profits and government revenue,
which leads to distribution.

overcoming the COVID-19. Second, reviving theJapanese economy through a “New Form of Capitalism.”Third, pursuing “realism diplomacy for a new era,” taking
a realistic approach in Japan’s foreign policy while aspiring
to the ideal.
Today, I would like to introduce my vision with anemphasis on the revival of the Japanese economy througha “New Form of Capitalism.”
2. What is a “New Form of Capitalism”?
We are facing a number of challenges ranging fromclimate change, social digital transformation, widening ofincome gap and rising poverty, chronic lack of mediumto-long-term investment, disparities between urban andrural areas, democracy in crisis due to shrinking middle
classes, to unforeseen emerging tensions in geopolitics andgeoeconomics.
If we look back on history, the world has gone throughseries of eras of paradigm changes, including, for example,
endeavors to establish welfare states and big governmentsin the 1950s and 60s, as well as the rise of neoliberalism
by President Reagan and Prime Minister Thatcher inthe 1980s and 90s. Just as the same historic scale as thesetimes, I believe that we are now in an era of anotherparadigm shift in policies.
I would like to pay respect to the role this Davos Forumhas played in leading vigorous and visionary discussions
on various topics including the Great Reset and the
Stakeholder Capitalism.
Some people point out that “state capitalism withunmonitored concentration of authority” is efficientin conducting social reforms. However, it is proven in
history that state capitalism without a function of checks
and balances carries a high risk of large side effects both athome and abroad.
That is why I will endeavor to transform the economy
and society toward a new era, while protecting theuniversal value of democracy. In other words, my goal is toachieve the “Great Transformation of Liberal DemocraticSociety.”
The Biden administration’s “Build Back Better” aswell as the European Union’s “NextGenerationEU”
are, I believe, also initiatives to achieve the same goal of
realizing historic social transformations.
I will steadily promote economic and social reforms,
while being subject to critical judgement by our

GrowthPublic and private
sectors work
together to achieve“growth” and“distribution.”

Distribution

Distribution increases demand in consumption andin investment while strengthening the potential for
growth, which leads to further growth.

citizens through elections. In order to do this, leaders ofgovernments, industries and labor must work together togenerate a massive momentum and create a tide of history
for a global paradigm shift in policies.
Japan is determined to lead the global trend with this“New Form of Capitalism” and will demonstrate concrete
examples of how capitalism can evolve, as Japan willassume the G7 Presidency next year.
3. Efforts to revive Japan’s economy“If general perception changes from seeing the glassas ‘half-full’ to seeing it as ‘half empty,’ there are majorinnovative opportunities.”
This is the theory of the “glass half empty”, quoted by
the famous scholar in management, Peter F. Drucker.
Japan is a prosperous, peaceful country and comfortable
to live in; this is one of the reasons why people in Japantend to cuddle themselves in their own silos, satisfied,and see things as “half-full.” However, through our fightagainst COVID-19, things have dramatically changed inthis time and age.
Nowadays, every day, we feel a sense of global crises in
our lives. When each person and each business share thisfeeling of “half-empty,” I am convinced, Japan will be able
to greatly transform itself with its bond of solidarity thatis inherent in our spirits.
In this “New Form of Capitalism,” I will demonstrate
to the people a clear and full picture of the historicchallenges the Japanese economy and society are currently
facing. Rather than leaving everything to the market andcompetition, we will focus on having both the public andprivate sectors work together towards reforms, sharing thefull picture of social and economic transformation. Japan’s

13

KEY POLICY ISSUES

Japan commits itself toachieving carbon neutrality
by 2050. Fukushima
Hydrogen Energy Research
Field (FH2R) is one of thelargest facilities producing
hydrogen from renewable
resources.

14

strong sense of solidarity becomes a foundation of a new
public-private partnership.
I will also launch new mechanisms to inspire
investment and change the way of sharing added values.
I will integrate them into both growth and distribution
strategies to achieve a full-scale “twin-engine of growthand distribution.”

Emissions Community” in Asia where both geopoliticaland geo-economic challenges are intensifying. This
community would become a platform to advance efforts
such as international joint investment on development ofzero-emission technologies and hydrogen infrastructure,joint financing, standardization of related technologies,
and establishment of an Asian emissions trading market.

4. Transformation of economy and society(1) Green society
To fulfill the Paris Agreement, Japan has committed
itself to the goals of achieving 46 per cent reduction inemissions by Fiscal Year 2030 and carbon neutrality
by 2050. The journey to achieving these goals is
extraordinarily challenging. Japan does not haveinternational grid connections. There remains strong
public distrust of nuclear power following the accident
in Fukushima. The cost of renewable power generation isinevitably high because Japan is an insular state with steep
mountains and surrounded by deep sea. These factors
create vulnerability in the Japanese economy.
In order to overcome such vulnerability on the supplyside, the private and public sectors will intensively work
together to transform and innovate toward a carbon
neutral society on both demand and supply side.
Our efforts include institutional reforms andsupporting policy in order to double investment as earlyas possible, as well as accelerating the development of
next-generation grids. In addition, I will also work on
carbon pricing and labor market reforms to transform
industrial structure and individual consumption. Japanis determined to boldly adopt policies that have been
politically difficult in the past, against the backdrop of the
public’s sense of urgency to tackle climate change.
I am also aware that many Asian countries have energy
structures that are similar to Japan. Just as the European
Union started as the European Coal and Steel Community
during the Cold War, Japan envisions an “Asia Zero

(2) Digital
Another important pillar is digitalization. In Japan,
progress in digitalization had been insufficient. People inJapan did not really feel a pressing need for transformation,and just wanted to keep the way of working they were used to.
The COVID-19 pandemic, however, sparked many
people once again how far behind we are in digitalization
while realizing the convenience of digital technologies. In
addition, we realized that the power of digital technology
is indispensable in solving Japan’s social problems amid
rapid progress of depopulation of rural areas and an aging
population.
Now is a “chance” for Japan. Taking this opportunity,
I will push forward Japan’s digitalization at a stretch. The
key to this is infrastructure.
Japan will build submarine cables around the country as
well as optical fiber networks throughout the archipelago.
In order to prepare for the surge in data processing withthe advent of the full-scale digital age, Japan will disperse
large-scale data centers throughout Japan. In addition,
Japan will promote next-generation networks using
optical communication technology that is 100 times
faster in speed and reduces electricity consumption to one
tenth.
An autonomous drone carries a box
containing hot meals for a field test of fooddelivery in Tokyo in November 2021. AFLO

Japan’s public and private sectors will jointly set
numerical targets and develop such infrastructure in aplanned manner. Japan will make it possible for people
to use ultrahigh-speed and large-capacity lines on a “oneperson, one line” basis.
As our existing systems do not meet the needs of
new businesses and services, my government will review
40,000 regulations and systems under the new guiding
principle of digitalization, which set up the principles
of how Japanese society is to be digitalized. I consider it
important to create a new market by setting new ruleswith an eye on frontier technologies like drones andautomated driving as well as recent developments in suchareas as healthcare and education.
In addition, I will take the “Data Free Flow with Trust(DFFT)” that Japan proposed three years ago in Davosanother step forward. Based on trust as a foundation,
we will realize a free flow of data which will bring about
innovation and bridge the wealth gap.
(3) Investment in people
Investment in people is the key to achieve both a carbon
neutral society and digitalization. In our time, creativity
and ingenuity of human beings provide the clue to solving
problems and the source of innovation.
For years, Japanese companies have tried vigorously
to curb cost and supply cheaper products than theircompetitors. In this endeavor, “investment” in people
has often been regarded as a cost. As a result, wage levelremains stagnant, and investment in human resources
development has also been limited.
As we move forward, we must build a virtuous cycle
where investment in people leads to continuous increasein company value and attracts further investment in
human capital. The government will introduce systems
to support human capital that fits this age of digitaltransformation, such as creating new employability skills
training program, promoting the appointment of female
executives, and utilizing side businesses.
In doing so, it is important to create a common
understanding not only among business people but
also with market players that investment in people
is a source of corporate value. This is essential increating a system that attracts more funds to companies
that promote medium-to-long-term corporate valueenhancement. To this end, Japan will create a disclosure

Sitting down to talk with a groupof auto mechanics, Prime Minister
Kishida said that raising wages
would be an investment in growth.

system for investments in non-financial assets such as
human capital.
5. Toward a sustainable Japanese economy
Japan’s “Abenomics” was based on the three pillars ofmonetary easing, fiscal expansion, and growth strategies,
including global standard corporate governance. As aresult, the Japanese economy is no longer in a deflationary
situation, and has achieved the expansion of women’slabor participation and employment.
“Abenomics” achieved great results, but it is clear thatthe efforts made thus far are not enough to transform theJapanese economy into a sustainable and inclusive one.
My cabinet will build on Abenomics’s achievements
regarding macroeconomics and market, and boldly
pursue the transformation of Japan’s economy andsociety, including green transformation and digitaltransformation.
Against the backdrop of the people’s sense of crisis, I will
design and implement a mechanism that will bring out thepeople’s endeavor and promote investment, especially, inthe areas of vulnerability in the Japanese economy.
6. Conclusion
The time to design a world beyond the Great Resetcannot wait.
To open up this new era, it is vitally important to haveas many people as possible to connect amongst each otherbased on trust through continual conversations whichtranscend differences in values, circumstances and views.
The Davos Forum has embodied such spirit andattracted political and economic leaders from all over theworld for a long time.
I am convinced that there is heightened importancefor both political and economic sectors to discuss publicaffairs and act together beyond their differences. In thiscontext, this Forum will become even more significant.
Finally, I would like to conclude my remarks by wishing
the continued success of Professor Schwab and the membersof the World Economic Forum as well as all the guests.
Thank you very much for your attention.

15

KEY POLICY ISSUESLESSONS FROMSHIBUSAWAEIICHI
THE MAN WHO FORMED THE FOUNDATION
OF JAPANESE CAPITALISMSHIBUSAWA Eiichi—the industrialist who helped build Japan’s new economic system in the late 19th to early
20th centuries and who was involved in the establishment and management of nearly 500 companies. What lessons
are there to learn from this man, who made it his goal to build a fair and inclusive capitalist economy based on his
unwavering stance of placing importance on not only profits, but public interests as well?

The global economy is
man who similarly pursued
now at a major turning
not only profits but also
point. Capitalism has long
public interests, aiming tobrought
prosperitytorealize a fair and inclusive
the world, and since theform of capitalism. This
1980s, neoliberalism, with
was SHIBUSAWA Eiichi,
its focus on free-market
an industrialist active fromcompetition, has been thethe late 19th to early 20th
wellspring for growth. Yet,centuries, and who is known
it also has increased poverty
as the “father of Japaneseand social disparities, andcapitalism.” At that time,
made the issue of climate
Japan was confronted with thechange more serious bydaunting task of rebuilding
placing larger burdens on
its political, economic, andA book compiling Shibusawa’s thoughts on various issues,
the natural environment. The Analects of Confucius and the Abacus, is still widely read tosocial foundations in order toAmid such a situation, the this day. Due to his contribution to Japan’s modern economy,
modernize the country after
he has been selected toworld has begun seeking out become the face of thethe end of more than 200
a new model for capitalism. new 10,000-yen bill inyears of national seclusion in
2024.
Prime Minister Kishida of FROM TOP : GETTY IMAGES,
1854.
Japan, who assumed office in THE MAINICHI NEWSPAPERS
A key figure taking up thisOctober of 2021, announced
challenge was Shibusawa.
his determination to realize a “new form of Recognized at a young age for his resourcefulness,
capitalism,” stating that the government will generate he was mandated by the government to travel togrowth by solving such issues as climate change, and Europe when he was 27 years old, where he witnessed
will distribute the fruits of this growth to human advanced industrial and economic systems. Upon his
capital so as to achieve further growth. By creating return to Japan, he quickly climbed the bureaucraticsuch a virtuous cycle of growth and distribution, he ladder to become a high-ranking official in theaims to build a sustainable economy.
Ministry of Finance, but resigned at the age of 33 toMore than a century ago in Japan, there was a promote private-sector business. He then established16

Left: June 1878, in the early days after the Tokyo Stock Exchange was opened as Japan’s first official stock-exchange organization. THE MAINICHI NEWSPAPERS
Right: Photo of Shibusawa (front row, third from the left) together with faculty members from Japan Women’s University at the time of its founding. In
addition to serving as president of this university, Shibusawa was the director of Tokyo Jogakkan Schools for Women, which he also helped to found.
JAPAN WOMEN’S UNIVERSITY

Japan’s first bank in 1873 and the stock exchange
in 1878. He applied himself to directing funds to abroad range of new industries, from sectors concernedwith infrastructure to textiles and insurance, and was
involved in the establishment and management ofnearly 500 companies.
“Many of the companies that Shibusawa helped
establish in a diversity of fields remain today. Thiscannot be found in any other country in theworld,” says Christina Ahmadjian, professor at
Hitotsubashi University Graduate School of Business
Administration, and the director of the Shibusawa
Scholar Program. Moreover, the world-renowned
economist Peter Drucker mentioned in his book, The
Age of Discontinuity, that “[Shibusawa’s] achievements
were a good deal more spectacular than those ofRothschild, Morgan, Krupp, or Rockefeller.”
Ahmadjian notes, “Rather than on profiting for
himself, his business ideas were always based on
how to create a society in which people are happy.
He believed in the power of business as the engine
to solve social problems and create a better world.”
What Shibusawa advocated was gapponshugi, which
can be defined as the pursuit of profits and theraising of capital through stock—similar in concept
to ordinary capitalism—while also calling for the
pursuit of public interests and the distribution of
profits to all stakeholders. “Shibusawa’s goal was tocreate a fair and inclusive economy that would enrich
the lives of a broad range of people and provide themwith various opportunities,” says Ahmadjian.
Believing that nurturing talent for new businesses
would lead to the creation of a prosperous nation,

Shibusawa also focused on education. He establishedmany schools specializing in business, including theCommercial Training School (now Hitotsubashi
University), and gave lectures and guidance at variousorganizations and meetings. Additionally, so thatwomen—who make up half of the population—could
contribute more to society, he also advocated thenecessity of their higher education and supported
the establishment of such schools as Tokyo Jogakkan
Schools for Women and Japan Women’s University.
According to Ahmadjian, “Looking now at the SDGs,
you can see that Shibusawa had already put most ofthem into practice, including gender equality. The
essence of the challenges facing human society is thesame in any era. Shibusawa was able to grasp thatessence.”
How can we create a world that will bring happinessto people? As new ordeals shake the global economy,
now may be the time for us to look to Shibusawa’s
doctrine for new hints on how to address this basic
question. 

Christina Ahmadjian, professor at
Hitotsubashi University Graduate
School of Business
Administration, and the directorof the Shibusawa Scholar
Program, which has the goal of
nurturing global leaders. “Now,more than ever, the world needs
leaders like Shibusawa,” she says.
“Shibusawa is a really good rolemodel, not just for his visions but
for his ability to act on them. The
world has a lot to learn from him.”

17

SPRINKLED
SUSHI
No flower-viewing party or spring banquet iscomplete without vividly colorful sprinkled
sushi (chirashi sushi). Sushi rice, flavored withvinegar and sugar, is festooned with seafood,vegetables, and other treats, truly expressing
the joy of welcoming a new season. Witha different character for each region andhousehold, even for Japanese people this isspecial. Schools, businesses, and other Japaneseinstitutions start a new year in April. Everyone
gathers around a table laid with festive foods
and celebrates the season of new beginnings.
18

PORTRAITS OF JAPANRegistered by UNESCO as an
Intangible Cultural Heritage,
Japanese cuisine is also praised
as an expression of natural
beauty and the passage of thefour seasons. A supreme example
is nerikiri, dainty confections
molded into the shape of flowers
and other symbols of the season.
Amazing morsels are created bytraditional, detailed handicraftfrom bean-and-sugar paste andgiven a variety of colors. The
advanced artisanal skills and highaesthetic consciousness bring thedelights of spring to the hearts
and eyes of the beholder.

JAPANESESPRINGBLOOMS
ON THE DINING TABLE

As sunshine warms the days, Japanese tables are laden with gorgeous dishes.
Traditional flavors that sparkle with artisanal skills quicken
the hearts of people impatient for spring.

JAPANESESWEETSAFLO

AFLO

SAKE OF SPRING
Each regional Japanese sake has a unique taste. Determined to rise from the devastation of theGreat East Japan Earthquake, the Tohoku region, including Fukushima, produces sake of highinternational renown, winning many prizes, such as the International Wine Challenge, thestrictest in the world. Spring sake—perfect for pouring into each other’s cups while appreciating
cherry blossoms in full bloom—has a floral aroma, subtle sweetness, and glides gently down
the throat. Brands with a pale pink color resembling cherry blossoms are also popular.
19

Scene from an actual surgery using the 8K
endoscope on a human patient. The images
produced are more detailed than those visible tothe naked eye. With multiple doctors and medical
staff being able to watch the operation at the sametime, they can undertake more difficult surgeries
and share the knowledge and experience gained.

AN 8K-IMAGETECHNOLOGY:A GAME-CHANGER FOR FUTURE SURGERY

The world’s first 8K endoscope has been developed by a Japanese doctor by applying the technologies of NHK Science &Technology Research Laboratories. Bringing microscopic nerves and blood vessels into full view on a big screen, it makes
advanced surgical procedures safer than before. How does such unprecedented resolution transform medical practice?
“It’s as if I were performing surgery inside thepatient’s stomach!”
The surgeon was amazed at the high-resolution
image being projected onto the monitor display when
he operated to remove a gallbladder in the world’s
first clinical surgery with the 8K rigid endoscope.
8K footage boasts 16 times as many pixels as the2K footage of endoscopes widely used today. That isnearly equivalent to being able to read a newspaper
from 10 meters away, and makes tiny blood vessels

20

and sutures—invisible to the naked eye—clearlyvisible.
Dr. CHIBA Toshio, a Japanese surgeon who has
performed endoscopic surgeries on fetal patients,
developed this world’s first 8K rigid endoscope.
He felt there was room to improve conventional
endoscopes of the time with their low image quality
and light sensitivity.
In 2006, while working as a doctor at the National
Center for Child Health and Development, Dr.

WELLNESS & MEDICAL INNOVATION

Chiba was transfixed by a documentarybroadcast on Nippon Hoso Kyokai (NHK,or Japan Broadcasting Corporation)
about the arrest of an airplane hijacker.
What captured his attention so firmly
was the fact that the faces of those
involved were clearly visible, even though
the camera footage was taken in the middleof the night in pitch darkness.
He desperately wanted to make useof this video technology for endoscopic
surgery. So, without wasting any time on
making a prior appointment, he went
immediately to talk to NHK Science &Technology Research Laboratories, which
was conveniently located opposite his
workplace. He was lucky enough to bumpinto the then director-general, TANIOKA
Kenkichi. The pair hit it off and decided on
the spot to start development to incorporate
first the night-vision technology known as
HARP and then the ultra-high-definition
8K technology in rigid endoscopes.
At the time the prototype 8K endoscope wasintroduced into clinical practices in 2014, it weighed
2.5 kg. Reducing it to be small and light enoughfor practical use in surgery was therefore a major
challenge. However, after much repeated effort, Dr.
Chiba succeeded in reducing the weight of the device
to 450 g in just four months. In 2017, an 8K rigid
endoscope was commercially launched, and the 8K
Surgical Microscope was released later.
“It’s because Japan has a very high level oftechnical expertise in 8K-image sensors andendoscopic lenses that we were able to make theproduct so much more practical,” he remarks.
“Compared to conventional endoscopes, 8K has a
far greater sense of realism. Once you’ve experienced
it, you can’t go back to the old image quality.” This
technology, which enables observations of minutedetails in the inner structure of the body, not only
allows for safer and more accurate surgical procedures,
but also provides the means for types of surgery
that have previously been extremely difficult. The
possibilities for medical treatment are wide-ranging,as Dr. Chiba says: “Footage of surgery by skilled

Top: An 8K image features many more pixels than the commonly used 2K image,allowing even the smallest details of the subject to be seen clearly.
Left: The 8K endoscope was developed by Dr. Chiba and his team by applying the
8K-image sensor technology for broadcasting used by NHK Science & Technology
Research Laboratories. AIR WATER BIODESIGN INC.

surgeons can be used for educational purposes, andonline medical care and remote surgery by medical
specialists can happen far more easily.”
To make the most of 8K-endoscope technology,
it is vital to develop high-speed communication
networks, such as 5G and fiber optics, to efficiently
share the vast amounts of 8K data. And if there is
progress in the development of robotic forceps formore precise operability than with the human hand,and evolution of AI capable of faster and moreaccurate diagnostic imaging, then 8K endoscopes
will be able to demonstrate their true value.
Dr. Chiba goes on, “How quickly we can bring good
products to the practical field is important. In orderto do this, I believe we need to foster open innovation
across borders and industries. Certainly, I would liketo cooperate with people and companies overseas tobuild infrastructure and develop technologies thatmake use of our 8K technology.”
Japan’s video technology, first developed aroundtelevision broadcasting, is having an impact that
could change the future of medical care. No doubt
Dr. Chiba will continue to take on the challenge ofcreating even better medical treatment.
CHIBA Toshio, M.D., Ph.D.
Specialist in fetal and pediatricsurgery. Chairman of board of
directors of the Medical
Innovation Consortium andproject professor at Juntendo
University, Faculty of Medicine.
He was awarded the Albert
Schweitzer Award in 2020 for
his achievements in thedevelopment of 8K endoscopes.

21

WELLNESS & MEDICAL INNOVATION

A WORLD WITHOUTBLINDNESS:A BIO-VENTURE’S ENDURING PURSUIT
As people age, many experience eye diseases, which in the worst-case scenario can lead to blindness. Helping to reduce
this risk is a former ophthalmologist who set his sights on launching a venture into unique and unparalleled research.
His team is currently developing a glasses-type device that aims to treat and control the progression of myopia as well
as a diagnostic device for eye diseases common among astronauts. So, why is it that this eye specialist continues to takeon the challenge of curing eye diseases with his venture company?
The great inventor Thomas Edison once said,“I have not failed. I’ve just found 10,000 ways that
won’t work.” Today there are people who, like Edison,continue to strive—unafraid of failure—toward theirgoals. One of them is KUBOTA Ryo, president andchief executive officer of Kubota Pharmaceutical
Holdings Co., Ltd., who aims for a “World Without
Blindness.”
Kubota first made a name for himself as an“The reason why I can keep on trying in fields
in which results are hard to achieve is that I
enjoy the daily process of trial and error withmy colleagues,” explains Kubota.

22

ophthalmology researcher. In 1997, he discovered
myocilin, one of the genes responsible for glaucoma,a major cause of acquired blindness. At that time,
genome research was becoming increasingly popular,
with a growing belief that all diseases could beunderstood and treated. Kubota, like everyone else,
believed this; having discovered the causative genefor glaucoma, he anticipated its eradication. Yet, eventhough the cause of the disease could be identified,no cure could be found. After discovering myocilin,
Kubota, wanting to treat patients himself, turned tothe profession of health care. However, desiring tofind a way to cure more patients from blindness, hejourneyed to the United States in 2000 to embark on
the path of research once again.
While at the University of Washington in 2002, heestablished the venture Kubota Vision Inc. (formerly
known as Acucela Inc.) based on his own research on
cell-based screening technology. The company worked
on developing a new drug for age-related maculardegeneration, a common cause of blindness in Europe
and the United States, but in the end, they did not get
the results they were hoping for. “The probability ofsuccess in developing a new drug is said to be one in
30,000. I had a succession of failures for more than six
and a half years before I discovered the causative genefor glaucoma, so I’m not so afraid of failure. But withthe company consequently moving into a new phase,
it was just a shame that I had to part ways with mycolleagues, many of whom I had been with since thecompany was first created,” recalls Kubota.
So it was that in 2016 Kubota moved his base to
Japan and made a fresh start once again, this timewith Kubota Pharmaceutical Holdings. Current
pipeline projects include Kubota Glass, soon to bereleased in Taiwan. These special glasses aim to treat
and control the progression of myopia by creating theillusion of looking at distant objects using augmented
reality, projecting images directly onto the retina.
Besides the fact that more people are suffering fromnearsightedness in recent years due to widespreaduse of smartphones and computers, it has become
clear that myopia is the cause of various eye diseases.
Therefore, Kubota thought that correcting myopia
would be effective in preventing eye diseases thatcause blindness.

KUBOTA Ryo, M.D., Ph.D.,
an ophthalmologist as well aspresident and chief executive
officer of Kubota Pharmaceutical
Holdings. After many years of
research and through his
experience discovering the causative
gene of glaucoma, Kubota learned
the importance of persevering
without ever giving up.

Top: A photo taken at a meeting at NASA on the development progress of thediagnostic device for eye diseases that Kubota Pharmaceutical is jointly
developing with the space agency.
Bottom:Kubota Glass is a special pair of glasses that aims to treat and control
the progression of myopia with their built-in mechanism to project an image
onto the retina. The company received medical device registration approval in
Taiwan. Global clinical trials are being planned from the latter half of 2022.

The company also has worked to develop a compact
optical coherence tomography (OCT) device thatcan be carried on the US National Aeronautics andSpace Administration (NASA)’s manned mission to
Mars. The compact binocular-like diagnostic device
helps to determine eye diseases that affect many crew
members on long-duration spaceflights, enabling onthe-spot AI diagnoses while transmitting data on thecondition of the eyes from space back to Earth. The
device is also being looked at for use in telemedicineon the ground, including on remote islands and inareas with sparse populations.
“It is unusual for pharmaceutical companies todevelop equipment, but innovation is impossible
unless we do something out of the ordinary. Most
unconventional businesses fail, but a few of them
become game-changers. In other words, venturecompanies and startups are the means for diversity,
just like the small species that survived the era wheneven dinosaurs went extinct,” says Kubota. His tirelessly
pursued efforts may finally come to fruition in Japan, acountry focused on carving out its future through thepower of science, technology, and innovation.

23

WELLNESS & MEDICAL INNOVATIONMEDICALINNOVATIONBLOOMS IN GLOBAL STARTUP CITIES

Kobe

Under a new growth strategy aiming at realizing a science and technology nation, efforts
are now underway across Japan to accelerate the practical application of innovative technologies.
Kobe City in Hyogo Prefecture is one example of a municipality making full use of its local strengths
to support the promising startups that can help resolve global challenges, in medicine and beyond.
Strain on medical institutions, healthcare providers
at risk of infection, a shortage of intensive carespecialists—such latent issues lurking at the frontlinesof healthcare have been exposed to the world by
the COVID-19 pandemic. A service provided by aJapanese startup, T-ICU, has the potential to solve
many of these problems simultaneously. Througha unique remote monitoring system combining ahigh-performance camera capable of 360-degree
photography in full HD resolution with a monitor
screen displaying vital signs, a patient’s condition

With a population of approximately 1.5 million, Kobe City
has flourished as a major Japanese trading port for many
years, and is set to continue attracting promising humanresources and businesses, both from within Japan andabroad, and to support 1,000 startups by fiscal year 2025.

24

can be grasped in detail by a specialist for remotediagnostics and advice.
One core concept of the Japan’s growth strategy is
to generate such innovative startups in order to drive
the development of technologies that can solve global
problems. This year has been set as the first year forfounding startups, with the goal to build ecosystems
that link entrepreneurs, universities, and financial
and public institutions so as to get them off theground.
Some local governments have already formed such

T-ICU’s remote ICU service uses
high-performance cameras installed ineach patient’s room for detailed
monitoring of the patient’s condition,complexion, and breathing. That
reduces the number of actual visits
doctors and nurses must make. In
addition, a specialist can offer 24-hour
remote support to the on-site doctor
by viewing, in real time, a vital signmonitor connected to other medical
devices, such as respirators.
JINAIKAI, URASOE GENERAL HOSPITAL

ecosystems that fully utilize the features of theircommunities. The city of Kobe in Hyogo Prefecture
is a pioneer in this initiative, providing a wide rangeof support to promising startups, from financial
assistance at the time of company establishment to thedevelopment of a business model. “We will continue
aiming to attract business incubators that offer
support from the idea stage to commercialization,
as well as to expand the entrepreneur base, including
students, and put a mechanism in place that will
ensure the continuous generation of startups in
Kobe,” says TAKEDA Taku, the city’s director of the
New Business Promotion Division.
T-ICU opened its office in the Kobe Biomedical
Innovation Cluster in 2019. “Thanks to theconcentration of medical institutes and organizations,vast knowledge and profound intelligence have alsocome together here. Such a situation makes it easy
to develop the horizontal connections that enable
access to the necessary information and specialists,”
says NAKANISHI Tomoyuki, the company’s CEO.
In 2020, T-ICU launched a COVID-19 response
project in collaboration with a designated medical
institution for infectious disease located in thisbiomedical hub, remotely connecting 9 hospitals
citywide. Through its systems, installed in these
hospitals, specialists provide advice on treatment
plans and the need for hospital transfers. “The city’s
general medical institutions are now confidently
able to provide patients with infectious diseaserelated care, enabling critical-care facilities to focus
on severely ill patients, which in turn helps preventa collapse of the healthcare system at times of peak
infection rates,” says Nakanishi. The company alsoplans to expand its business overseas by providing
remote training for doctors and nurses engaged inintensive care in developing countries.

With its eyes on the global business developmentof startups, Kobe has been cultivating talent andbusinesses by bringing in global accelerator programs
and international organizations. Projects havealready turned out numerous, growing companies
by working in partnership with the United Nations
Office for Project Services’ S3i Innovation Centre
and 500 Global, a Silicon Valley venture capital firm.
Many requests for participation in these projects arecoming from outside Japan and, as befits a city that is
one of the country’s leading international ports, Kobe
welcomes this trend. “By supporting open mindsets
and global perspectives, we hope to create a future inwhich young people ready to take on new challenges
will naturally gather here, with the expectationthat ‘in Kobe, you can create something new’”, says
Takeda.
Utilizing the world’s cutting-edge ideas and talentpool, the country continues to move toward a future
where both the startups of the world and its own can
grow. Right: The Kobe Biomedical Innovation Cluster is focusing its efforts on
supporting the commercialization of
R&D seeds. “Startup Creative Lab”
(photo), for example, is an
incubation facility for startups in thelife science field.
Bottom: Participants in the 500
KOBE ACCELERATOR program
the city implemented incollaboration with 500 Global, a
Silicon Valley venture capital firm.

25

WELLNESS & MEDICAL INNOVATIONIKIGAITHE JAPANESE SECRETTO A JOYFUL LIFE

The Japanese word ikigai, which has recently gained attention worldwide and enjoys widespread use, refers toa passion that gives value and joy to life. The author who prompted its craze speaks about the word’s appeal
and the effects it has on mental and physical health.

Numerous Japanese words haveentered the global lexicon, such as
mottainai and kawaii; one recent
newcomer is ikigai. A broadconcept, it refers to that whichbrings value and joy to life: frompeople, such as one’s children or
friends, to activities including
work and hobbies.
“There is no word like it
anywhere in the world,” says

Héctor Garcia, co-author of thebook Ikigai: The Japanese Secret
to a Long and Happy Life, which
helped push ikigai into the global
spotlight. Explaining that having
an ikigai is the key to leading a
happy life with a healthy body andmind, this book—which has beentranslated into 63 languages—has
sold more than 3 million copies
since its release in 2016. “WhenIn Ogimi Village, Okinawa Prefecture, many elderly people have an ikigai
and remain active, such as TEDOKON Keiki (bottom right, on the left),
who is 91 years old and still actively grows crops. There are also many events
the elderly can participate in, including a sports festival (top right). TAIRA
Toshiko (left), a 101-year-old textile artisan, has been making Bashofu, a
traditional fabric, for many years. She was designated a Living National
Treasure of Japan in 2000 for preserving this Okinawan craft. OGIMI VILLAGE

26

you feel down, just thinking about
your ikigai will change somethingin you. I receive comments evennow from readers who say theirlives were transformed by thisword,” says Garcia.
For this book, Garcia interviewed
more than 100 elderly residentsof Ogimi Village, Okinawa
Prefecture, renowned for being a“village of longevity.” One thingHéctor Garcia (second from right) and Francesco Miralles (far left), authors of Ikigai: The Japanese
Secret to a Long and Happy Life, say that they realized how important and powerful ikigai was whileinteracting with the senior citizens of Ogimi Village, Okinawa Prefecture.

that these healthy and active
seniors have in common is thateach has an ikigai, or somethingworth living for. “When we
asked what their ikigai was, theygave us explicit answers, such as
their friends, gardening, and art.
Everyone knows what the sourceof their zest for life is, and is busily
engaged in it every day,” says
Garcia. Another distinguishingfeature of this community isthat the elders have strongsocial links with their peers andfrequently get together to enjoy
karaoke, birthday parties, andmore. “Avoiding social isolation
is linked to the motivation andconfidence to lead active lives.”
Continuing to work orenergetically enjoy hobbies ischaracteristic of many Japanese
seniors. A national survey
conducted in 2018 found that
47.5% of people aged 70 and older
are active in ways such as working,enjoying hobbies, or participatingin community activities. Anotherstudy conducted on people aged
65 and over revealed that those
who work only for financial

reasons, compared with those whowork in pursuit of their ikigai, havea 1.55 times greater risk of decline
in functional capacity two years
later. Considering such data, theJapanese government is actively
supporting the employment
and social engagement of seniorcitizens. Borrowing the wordsof renowned psychiatrist Viktor
Frankl, “What man actuallyneeds is not a tensionless state but
rather the striving and struggling
for some goal worthy of him.”
Garcia believes that this applies

Garcia maintains that the Venn diagram
provided in his book and created byAmerican entrepreneur Marc Winn toillustrate the concept of ikigai (with the four
categories of “what you love,” “what theworld needs,” “what you can be paid for,”and “what you are good at”) can help you
find your ikigai if used as a basis to sort out
your thoughts. “For example, if you love tocook and are good at it, ‘cooking’ could
fulfill the categories of ‘what the world
needs’ and ‘what you can be paid for.’ Youraim could be a modest one, such as cateringa friend’s party, or bringing smiles to thefaces of those who have enjoyed your food.
Though it may be difficult to fulfill all four
categories, by keeping them in mind, you
can make your ikigai even more fulfilling.”

not only to senior citizens, but
to young people as well. In a
UNICEF survey conducted in
21 countries in 2021, about 36%
of young people (aged 15-24)
responded that they often felt
nervous, worried, or anxious, and
19% also said that they often felt
depressed or had little interestin doing things. For such young
people, Garcia published a newbook, Ikigai for Teens: FindingYour Reason for Being, in 2021.
“When we were children, we all
thought about what we wanted
to be in the future, but it is also
important to think about yourikigai from a young age. If I had
known about ikigai when I wasyoung, my life would have beendifferent.”
If the word and all its edifying
qualities are expanded acrossgenerations, ikigai may evolve
to further heights as a universal
term expressing a rich andfulfilling life.

What youlove
PassionWhat
you aregood at

MissionIkigai
Profession

What the
world
needs

Vocation

What you canbe paid for27

Bountifully blessed by nature, Fukushima Prefecture is famous not only for its rice, but also for such fruits as peaches, and strawberries, as well as
livestock farming. Last year, exports reached their highest level since official record-keeping began in 2005.

THE FLAVOR OF
FUKUSHIMA
LIGHTS UP RECONSTRUCTION
Nearly 11 years have passed since the Great East Japan Earthquake. Fukushima Prefecture suffered severe damage inthe disaster, but today it is well on its way to recovery, with exports of agricultural products surpassing pre-earthquake
levels. The world has come to love the “delicious tastes of Fukushima.”
Fukushima has been doubly
blessed by nature with anabundant water system and plentyof fertile soil. Diverse weather
patterns and landscapes within
the prefecture nurture a varied
and robust farming industry. Widetemperature differences between
day and night improve the flavor of
its rice, and the summer heat in thebasin-shaped valleys intensifies the28

sweetness of its peaches.
Fukushima has always beena cornucopia of food products,
but an accident at the Fukushima
Daiichi Nuclear Power Station
following the Great East Japan
Earthquake of 2011 led to a painful
era, when demand waned for its
vaunted agricultural and marine
products. Shipping restrictions
andreputational
damagedampened the consumption of
Fukushima’s food products, andmany foreign countries imposed
import restrictions that resulted
in a decline of exports from theprefecture.
Yet consumer confidence has
gradually returned, thanks tostringent pre-shipping monitoringof contamination and additional
scientific proof of the safety of

REGIONAL STRENGTHTokyo 2020: Australia’s Paralympic team enjoys a taste of Fukushima peaches. Jan Adams, the Australia’s
ambassador to Japan, says that good food is an excellent way for the two countries to strengthen their ties.
AUSTRALIAN EMBASSY, TOKYO

Fukushima’s food products. At one
point, 55 countries and regions
worldwide imposed restrictions
on food imports from Japan,
but many have now abolishedor eased them. For example, theUnited States lifted all restrictions
last September, announcingthat 10 years of sampling foodproducts from Japan had led to thedetermination that imports fromthe country posed very low risk toconsumers. The European Union
likewise eased its restrictions in
October, while Taiwan recently
announced this February that it,
too, would relax restrictions onimports from Japan. As restrictions
have eased, exports have increased,with the prefecture exporting 332
tons of agricultural products from
April to December in 2021—thehighest figure since the prefecture
began keeping records in 2005.
At the Tokyo 2020 Games held
last year, athletes, coaches, andother participants enjoyed thetaste and succulence of Fukushimapeaches. The prefecture presented
the Dominican Republic baseballteam with a large quantity of the
fruit, which disappeared in no timeat all. Ken Eriksen, head coach of
the U.S. softball team, gave a nodto the peaches at a post-practiceinterview in Fukushima, confiding
with a grin that he had devoured ahalf dozen at his hotel.
Not to be forgotten when
speaking of Fukushima specialties
is its sake. Daishichi Sake BreweryCo., Ltd. produces sake made by
the orthodox kimoto method, apainstaking process that requires
the fermenting yeast mash to
be prepared entirely by hand.
Daishichi has been actively
exporting its brew—which ishighly regarded abroad for its
mellow flavor—since the late
1990s. “Although Japanese sake has
the same high qualities of depth
and umami as full-bodied Westernwines, for a long time it was almost“The yeast mash essential for thefermentation of kimoto sake isprepared entirely by hand, andthat is the secret of its depth offlavor,” says OHTA Hideharu,
the representative of Daishichi
Sake Brewery.

Exports of alcohol achieved their highest level in FY 2019 and thoseof agricultural products their highest level in FY 2020 *Exports ofalcohol slightly decreased due to COVID-19 in FY 2020.

unknown to the rest of the world,”
says OHTA Hideharu, the 10th
generation owner of Daishichi.
The company undertook to open
up foreign markets in collaboration
with other breweries, initially by
enforcing strict quality-control
measures such as refrigerated
transportation, to ensure thatthe sake reached foreign markets
in optimal condition. They also
promoted their products at
restaurants and liquor shops toadvertise the charms of Japanesesake. These efforts gradually bore
fruit and led to an increase inexports. Daishichi was eventuallyasked to provide sake for a banquet
hosted by the Dutch royal family.
“Not too long after the earthquake,
we were invited once again to takepart in a banquet and serve sake tothe guests. It heartened us that we
could showcase the quality, safety,
and reputation of a product from
Fukushima,” Ohta recalls.
“It’s impossible to summarize theappeal of Fukushima products in asingle word or phrase. The varietyof the landscape produces so many
delicious foods—fruit, vegetables,
seafood, soba noodles. . . . All we
can do is take their flavors to aneven higher level and share themwith the rest of the world.”

Xavier Thuizat, head sommelier at Hôtel de Crillon, a famed five-star
hotel in Paris, compared Daishichi sake to the best of Burgundy wines,
calling it the Romanée-Conti of Japanese sake.

29

SUSTAINABILITYETHICALLIFESTYLE
MOVEMENTROOTED IN TRADITIONALJAPANESE VALUES

The term “ethical” comprises the concept of contributing to theworld by being aware of our impacts on society and theenvironment, and is therefore inextricably linked with the SDGs.
SHUTTERSTOCK

Gathering attention in Japan as a new concept encouraging actions that consider people and the environment,“ethical” initiatives are now developing in unique ways across different fields. At the basis of this movement is thedistinctive culture of Japan.
New words that are well-attuned to the needs of thetimes strike a chord with people and rapidly penetratesociety. One such word in Japan now is “ethical,” a loan
word from English. The term has recently entered thelimelight as a new concept asserting that awareness byboth individuals and companies of the consequencesof their actions and decisions will lead to solutions
to major issues facing society and the environment.
It is used in combination with other words to createsuch terms as “ethical consumption” and “ethicalliving.” It is the simplest and most approachable formof international contribution, through which anyone
can engender change in regards to global issues by justslightly altering their perspective.
Driven by the growing interest in the SDGs andthe movement to achieve carbon neutrality by 2050,

30“ethical” has now become a key term appearing in awide range of fields, from government and businessto daily life. “It has spread very rapidly especiallyover the past year,” says SUEYOSHI Rika, founderand director general of the Ethical Association,
which is spurring on the ethical movement in Japan.
“One main reason is that many people have seriously
rethought their lives during this pandemic.”
At the same time, the concept is not entirely new
to the Japanese people. Many aspects of the Japanese
way of thinking share something in common withethical action, such as mottainai, the concept ofusing what is available so that it is not wasted, andotagaisama, the concept of helping each other intimes of need. According to Sueyoshi, “The basis of
ethical action is to give sufficient thought to howour daily lives or the production of goods impact
society and the environment. Many individuals andcompanies are putting this concept into practice bychanneling the spirit that is deeply rooted in Japan.”She goes on to say, “Japan is leading the world in thetransformation to sustainability through various
technological innovations such as the developmentof new eco-friendly materials, but our country is also
good at making the most of what we already have.
This is prompting the birth of many ethical initiatives
that are distinctive to Japan.”Unique even among such initiatives is a nonprofit organization, Otera Oyatsu Club (Temple
Snack Club). Buddhist temples in Japan have a longestablished practice of not letting the offerings offood made to Buddha go to waste. They are eatenwith gratitude by the monks and their families, andshared with neighbors and visitors. Building uponthat concept, the initiative aims to make good useof the collected offerings by sending them to singleparent households suffering for various reasons.
Endorsing this idea of connecting the “haves” of

Top: NODA Yoshiki, one of the directors of Otera Oyatsu Club, says, “We
send not only snacks, but also rice and daily essentials such as masks, alongwith carefully crafted messages addressed to each recipient.”
Bottom: Traditionally the offerings made at the temple are first presented to
Buddha and then later shared among monks and local residents.

SUEYOSHI Rika, founder and director general of the Ethical Association,
holding a special class at a junior high school. Ethical consumption is
becoming a widely covered subject within educational establishments inJapan, from elementary schools to universities. ETHICAL ASSOCIATION

temples to the “have nots” of society in order to solve
the issues they each face, more than 1,770 temples
and some 580 civic organizations are now supportinga total of 22,000 children monthly. Individuals andcompanies have also joined in to provide support in
the form of donations and gifts.
Because of the pandemic, the number of households
seeking support has increased fivefold over the past
year. “The number of offers to provide assistance has
also grown, especially because such a harsh situation
exists,” says NODA Yoshiki, a Buddhist monk andone of the directors of this organization. In fiscal
2020, donations increased 2.3 times compared withthe previous year. The various supporters come froma broad range of society. They include an elementary
school girl who donated rice purchased with her own
allowance, as well as those who, having rebuilt theirlives through the support they received, have now
become support providers themselves.
Through this activity, Noda says that he was again
made aware of the deeply rooted Japanese spirit ofhelping each other. “Somewhere, in the back of mymind, I had a sense of superiority about helping
others. But I was able to renew my understanding that
we’re all equals, and of the importance of being there
for each other in times of need.” One of the mosttroubling aspects of poverty is the isolation of people
in need. Otera Oyatsu Club thus works actively asa platform to connect people asking for “help” withthose saying “I want to help” by awakening the spiritof mutual support.
Anyone can start their own ethical initiatives fromsomething easily accessible, based on their traditional
values and culture. If these actions continue tostimulate empathy and new ideas, we might see thebirth of new forms of international contribution, notonly in Japan but around the world as well.

OTERA OYATSU CLUB31

Spring 2022

Published by

Edited by

Public Relations Office, Cabinet Office
andOffice of Global Communications, Cabinet Secretariat
1−6−1 Nagatacho, Chiyoda-ku, Tokyo
100−8914, Japan

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