© THE JAPAN TIMES, LTD., 2018

Davos Special
jaNUARY 23 ­— January 26, 2018

Clockwise from top left: Aerial view of thecongress center in Davos, Switzerland; The
World Economic Forum logo; Davos is surrounded by snow-capped mountains; Prime
Minister Shinzo Abe and World Economic
Forum founder and Executive Chairman
Klaus Schwab shake hands at the “TheReshaping of the World: Vision from Japan”
session at the WEF annual meeting on Jan. 22,
2014; The European External Action Service
held discussions at the 2017 WEF annual
meeting. world economic forum / Andy
Mettler / Moritz Hager / Faruk Pinjo

Working to build a shared future in a ‘fractured world’Global elites to hold discussions on autonomousvehicles, AI, blockchain and other technologies
Sayuri Daimon
Staff writer

As the global environment has changed
dramatically today with geopoliticalfissures, technological advances and ashared economy, the World Economic
Forum’s annual meeting will kick off on
Jan. 23 in Davos, Switzerland, with morethan 3,000 of the world’s influential andwealthy individuals coming from 100
countries.
This year’s meeting in the snow-capped
Alpine town will focus on the theme of“Creating a Shared Future in a Fractured
World,’’ which will see discussions on
possible solutions to the rifts that haveemerged politically, economically andsocietally.
“Creating a shared future in a fractured
world requires addressing issues on the
global agenda in a holistic, interconnected and future-oriented way,’’ said
Klaus Schwab, founder and executive
chairman of the WEF. “Our annual meeting in Davos provides an exceptional
platform for collaboration to create new
global initiatives.’’
One of the highlights of the four-day
meeting will be the expected attendanceof major political leaders, including British Prime Minister Theresa May, French
President Emmanuel Macron and U.S.

President Donald Trump. If Trump’s visit
is realized, he would be the first sitting U.S.
president to attend the WEF meeting sinceBill Clinton 18 years ago.
Chinese President Xi Jingping last year
became the first Chinese president toattend the Davos forum and made opening remarks defending globalization. Xi’sremarks were taken by world leaders
as a strong message that China wants toassume a global leadership role as otherworld powers struggle to tackle domestic
issues.
This year, another of Asia’s giants will
be in Davos. Indian Prime Minister Narendra Modi, the first Indian prime minister to attend the annual meeting since1997, is expected to deliver the keynote
speech at the meeting.
The gathering of key world players
also comes at a time when the European
Union faces the uncertainties of the Brexit
process. In Asia, the North Korean nuclear
issue lingers as a huge threat to regional
security, while Japan and South Korea
remain at odds over historical issues.
“We are now a year out from the Brexit
decision, and we are a year out from the
Trump administration that articulated
an America-first foreign policy doctrine,’’Lee Howell, a member of the WEF’s managing board, said. He added that leading
European countries such as Germany and

French President Emmanuel Macron and Indian Prime Minister Narendra Modi are among world
leaders expected to attend the World Economic Forum annual meeting in Davos. afp-jiji

France, as well as South Korea and Japan,
went through major elections last year.
“Politically speaking, a lot has changed
from a year ago. I anticipate significant
political discussions in Davos,’’ he told
The Japan Times.
Under such a rapidly changing world,
the annual meeting will also feature indepth discussions of the technologies
shaping the future, often dubbed thefourth industrial revolution.
In the past few years, the WEF hasboosted its efforts to collaborate with
global leaders of artificial intelligenceand robotics. It opened the Center for the
Fourth Industrial Revolution in San Francisco in March to accelerate cross-sector

cooperation with startups, world-leading
companies, experts and governments tohammer out science and technology policies that can benefit society while minimizing downside risks.
The center has nine areas of focus suchas artificial intelligence, autonomousvehicles, blockchain, cross-border dataflows and precision medicine.
“If I have precision medicine and if I’mable to edit your genes to deal with certain diseases, shouldn’t everyone benefit
from it? It shouldn’t be just a few that canafford it,’’ Howell said. “So we need to talkabout some principles first, not only on
how you design those technologies, but
how you deploy them and how you actu-

PAGE: B1

ally regulate and govern them.’’
Another example would be drones,
according to Murat Sonmez, head of the
San Francisco center. Safety and security
issues need to be discussed as there is nocommon registration protocol for drones
right now. It is also necessary to have aregulatory framework regarding who
owns data collected by drones and how
the data should be used. Drones will also
have an impact on civil aviation policy.
“If you are in a city like Tokyo, people
can fly 15 to 20 different types of drones.
There needs to be technical architecture
to track these drones and register them so
you know where they are,’’ Sonmez said.
That would require involvement ofpolicy makers around the world.
Sonmez said Japan’s Ministry of Economy, Trade and Industry (METI) has beenan active partner participating in projects
at the center.
“They are one of the first governments
to engage with us here in San Francisco.
We have a person in San Francisco from
METI, a dedicated person who actuallyworks at the center,’’ Sonmez said.
He said at least 10 more governments
will join their projects in the near future,and they are also working with international organizations, including the World
Trade Organization and International
Trade Union Confederation, so they can
discuss cross-border data flow and its
impact on jobs and skills.
“I can say interests are high because
these cities, states and national leaders aretrying to accelerate the creation of these

protocols because technologies are moving so fast,’’ he said.
The center also has about 30 partnercompanies, including Salesforce.com,
Microsoft Corp. and Japanese firms suchas Suntory Holdings, Ltd., Sompo Holdings and Cyberdyne Inc.
Sonmez said WEF established the center in San Francisco to be in the proximity of countries such as Japan and China
as Asia is becoming a major player in the
fourth industrial revolution.
According to a recent study by theEuropean Patent Office (EPO) and theHandelsblatt Research Institute on patents related to fourth industrial revolution between 2011 and 2016, 12 of the top
25 applicants at the EPO are Asian companies, with seven from Japan, three from
China and two from South Korea.
Samsung Group topped the numberof patent applications filed at the EPO
with 1,634 applications, followed by LG
Group’s 1,125 and Sony Corp.’s 885. OtherJapanese firms in the top list include
Panasonic Corp. with 413 applications,
Fujitsu Ltd. with 274 and NEC Corp. with
245.
Sonmez also pointed out that Japanis also significant in terms of its size anddemography.
“It’s the third-largest economy in theworld, and it is rapidly aging. So the issues
that a rapidly aging society have are very
different than those populations withmany young people,’’ he said, adding that
there are a lot of implications for futuresociety.

2 | The Japan Times | January 23 — January 26, 2018

Davos Special

Japan a global leader incryptocurrency investment
Minoru Matsutani
Staff writer

Japan is the global leader in the market
development of cryptocurrencies — a
global buzzword recently — some ofwhich have seen their values skyrocket
over the past year.
As of Jan. 15, yen accounts for 56.2 percent of bitcoin, or BTC, the most popular
cryptocurrency, according to coinhills.
com. Yen is followed by U.S. dollars at 28.4
percent, while all others account for 15.4
percent. Chinese yuan used to account for
the largest until January 2017, but dropped
after the state imposed strict restrictions on
cryptocurrency trading.
At this time, no statistics are available toshow the yen’s dominance across all typesof cryptocurrencies. BTC, accounted for
32.8 percent of the market capitalizationof all cryptocurrencies as of Jan. 15, making BTC the largest of at least 1,000 existing
cryptocurrencies, according to coinmarketcap.com.
Japan’s No. 1 position is owed to a solid
legal system supporting the industry tobuild credibility among individual investors, as well as Japanese familiarity withsecurities trading, said Midori Kanemitsu,
the chief financial officer of Japan’s largest
cryptocurrency exchange operator, bitFlyer Inc.
“Effectively, Japan is the first and only
country that has a proper legal systemregulating cryptocurrency trading,” Kanemitsu said. “That’s a big deal. Before the law
regulating cryptocurrencies, people worried what would happen to their money if
an exchange were to go bust.”
New York state has created the “BitLicense” to regulate cryptocurrency
exchanges, but “the restrictions are toostrict” and “it’s effectively not working”
as well as the law in Japan, she said, adding that there are only four companies
awarded BitLicense and bitFlyer’s subsidiary in the U.S. is one of them.
According to the Financial Services
Agency, Japan had 16 companies operating
cryptocurrency exchanges as of Dec. 26.
Yuzo Kano, bitFlyer co-founder and CEO,has worked hard to persuade lawmakers tolegalize cryptocurrency trading, Kanemitsu
said. Mt. Gox’s 2014 bankruptcy prompted
the industry to impose voluntary restrictions. As these restrictions were not effective, Kano began working with lawmakers
to legalize cryptocurrency trading, Kanemitsu said. The law was enacted in May
2016, and went into force in April.
Another reason that Japan is a driving
force for cryptocurrency market development, is that Japanese are familiar with day
trading, particularly on foreign exchanges.
“Japanese are the largest foreignexchange investors as well. I guess thatJapanese like speculative investments,”
Kanemitsu said.
Cryptocurrencies have become a major
financial product that can be alternatives tostocks, foreign exchanges and bonds. BTC’s
market capitalization was $230 billion asof Jan. 15, compared with Toyota Motor
Corp.’s $225.7 billion, Japan’s largest stock.
The market capitalization of all cryptocurrencies was $701 billion.
Kanemitsu and Maki Yoshisuji, a Coincheck Inc. spokesperson, said BTC, which
emerged from a thesis written by a person
under the pseudonym Satoshi Nakamoto,will continue to be the most popular cryptocurrency because it is the oldest cryptocurrency and is considered the most stablebecause it has never gone through changes
in specification.

“It’s not convenient for users if thebenchmark cryptocurrency changes too
much,” Kanemitsu said.
However, there is a risk of BTC losing
popularity if transaction fees continue tobe high.
Users have to pay transaction fees when
they buy or transfer cryptocurrency. Popularity means more transactions, leading tohigher transaction fees.
The average fee for BTC transactions
was about $26 on Jan. 16. This means thatthose who make an online BTC donationof $1 would end up spending $27. The fees
do not change regardless of transaction
volume.
The corresponding figures for ethereum
and ripple, the second and third-largest
cryptocurrencies in terms of market capitalization as of Jan. 16, were about $2.3 and$0.012 respectively.
A key to reducing transaction fees andremaining popular would be technologicalinnovation. Currently, BTC is technologically designed to be able to handle about
seven transactions per second. The fees
would be lower if the number of transactions per second increases. In addition to
BTC, other cryptocurrencies also have limits on the number of transactions a second.
“Engineers globally are working on
increasing the number of transactions fordifferent types of cryptocurrencies,” Kanemitsu said, adding that one technology
genius can potentially make any one cryptocurrency very popular overnight.
Kanemitsu and Yoshisuji said cryptocurrency is a great invention to change theway people live. It does not require banks
to transact, allowing transactions to happen at a relatively low cost. Travelers, aswell as those who want to send money totheir family members living overseas, canCryptocurrency values have skyrocketed in the past year. getty images

benefit from using cryptocurrencies.
“Japanese like such innovation. We likeusing it and developing it. I want Japan tosend the world a message on how fascinating cryptocurrency is,” Yoshisuji said.
Whether the current hype for cryptocurrencies is justified or not will rest on
demand for practical uses of cryptocurrencies. Companies such as bitFlyer andCoincheck are working on increasing thenumber of companies enabling the use of
cryptocurrency for transactions.
For example, Bic Camera Inc., the operator of a chain of stores selling various
electronics, in July began accepting BTC at
every outlet in Japan, with support frombitFlyer.
In Shibuya, the pop culture center ofTokyo, NEM Bar opened in December,where NEM, or otherwise known as XEM,
and BTC can be used to buy cryptocurrency-themed cocktails and other drinks.
XEM is also a type of cryptocurrency.

PAGE: B2

Coincheck has started a service to payelectricity bills in BTC in collaboration with
E-net Systems Co., an electricity supplier.
Global cryptocurrency exchanges areworking to spread the use of cryptocurrencies with various companies, and adoptions by companies such as Amazon.com
and Airbnb.com would “make a big difference,” Kanemitsu and Yoshisuji agreed.
However, some people caution thatthe prices of cryptocurrencies must be
stable for people to use them for regularpurchases.
“Nobody would want to use (cryptocurrencies) as money when their prices
are expected to go up,” said Kenji Saito, asenior researcher at Keio University’s Keio
Research Institute.
Cryptocurrencies’ core technology isbased on blockchain, which enables verification of transactions via multiple connected computers. It enables multiple
computers to store the transaction data,

making it difficult to falsify data. It thus
enables cryptocurrency management without central banks or other authorities.
Saito, who is also the representative
director of Beyond Blockchain and thechief science officer of BlockchainHub Inc.,
said blockchain is not a perfect technology
and his research team is building a newplatform named Beyond Blockchain One(BBc-1).
“We aim (for BBc-1) to be closer to perfection than blockchain,” he said.
As many programmers work to comeup with better-than-existing technologies,
while improving existing technologies,
many believe technological innovation will
make cryptocurrency closer to perfection.
“Cryptocurrencies are a world-changing
technology. While people today may havean image of them being a speculative
investment, we hope many people will
invest in them under manageable risk,”
Kanemitsu said.

January 23 — January 26, 2018 | The Japan Times | 3

Davos Special
Innovative maps show relationships among key issues
Jane Kitagawa
contributing writer

In 2016, World Economic Forum (WEF)
founder and Executive Chairman Klaus
Schwab proclaimed the fourth industrial
revolution as a distinct evolution from its
predecessor because of the rapid onset ofubiquitous change.
This revolution — the current environment in which disruptive technologies suchas artificial intelligence, cloud computing
and the “internet of things,” among others —is profoundly changing the way we live andwork.
The complexity and scale of such change
have seen the need for new means andapproaches to linking intelligence, understanding and specialists at the global level.
Transformation Maps, a collaborative
digital tool developed by the WEF available
in English, Mandarin, Spanish, Arabic andJapanese that harnesses knowledge, chartsinteractions and analyzes links between
industries, countries and issues that are shaping the world, may very well be the platform
to do so.
According to Jeremy Jurgens, managing
director and head of knowledge and digital
engagement at the Swiss-based non-profit,
Transformation Maps are certainly a solution
made only available because of the accelerated change brought about as part of the current industrial revolution.
Allowing users to contextualize awareness of various topics — cybersecurity will
be viewed differently by voters in America,
business leaders in the U.K., policymakers in
China and educators in the Middle East, forexample — the maps use a nodal display toconnect the dots between one of 130 core
insight topics and its different perspectives.
Jurgens elaborated in a conversation withThe Japan Times two weeks after the launchof the Transformation Maps at the WEF’s
Annual Meeting of Global Future Councils inlate 2017.
“This project is something I’ve always

Jeremy Jurgens

wanted to do. I saw the potential at the WEF
because we’re basically a multi-stakeholder
network, where you have people comingfrom different facets of life sharing ideas andthoughts. What happens is that we now actually have tools that allow us to connect thesetogether.”Jurgens, who has been at the WEF since
1999, after a stint at Microsoft and previously
working in Japan for various government
ministries, said experiments for Transformation Map-type tools began about 15 years
ago. “I remember I went through and I personally read every summary of every session
and workshop that we’d conducted over two
years. And then I manually tagged each one
and put them into a database,” he recalled.
Inspired by Austrian-British economist
and philosopher Friedrich Hayek’s 1945
essay on decentralized information, “TheUse of Knowledge in Society,” and economic
socialist Mark Granovetter’s 1973 paper,“The Strength of Weak Ties,” — “Second-tierconnections are more significant … transformations and disruptions are coming fromthe periphery” — the visually striking maps
draw upon the WEF’s knowledge networks
and make the most of hybrid intelligence.

In a time of fake news, the use of AI augmented by the judgment and sensibility ofhuman curation is of utmost importance tothe project’s integrity. “There are increasing
signs of distrust for traditional channels thatwere once considered an authority. Whether
it’s the media, whether that’s academia, politicians or other groups. What we wanted to
do with the maps was provide a place that
we keep humans in the loop. We’re using AI
techniques but (people) curate the content,
curate sources. Inevitably there’ll be somebiases, but at least they’re explicit, they’retransparent and they’re conscious to a certain extent,” Jurgens explained.
Despite being approached by numerous
corporations, the WEF retained its independence and intellectual integrity whencreating the maps, instead working with academia, foundations and other like-mindedorganizations from its networks.
According to Jurgens, the maps use cluster analysis and the concepts of entity andconcept extraction to connect issues thatat times may seem disparate. Key ideas arefound within a given piece of text and thensurfaced. Using algorithms, summaries are
extracted from texts based on key concepts,
enabling the maps to “Monitor this flow ofknowledge being generated by different
sources, create a summary of that, and thenprovide the link so that people can go andlook into that topic further.”
Human experts assisted in curating customized news feeds for the insight areas,
drawing upon media, think tanks and peerreviewed journals, among other sources.
A WEF team of machine intelligence
researchers, designers and others is now
looking into how to harness new techniques“such as modal temporal logic to explore theaggregate flow of knowledge, and see if it istrending toward different scenarios.”
Accessible after signing up to the WEF
TopLink portal, Transformation Maps canbe likened to a solar system. Select a core
insight, and see a map open up. Your topic
is at the center, surrounded by various key

Rashid Khalikov (right), assistant secretary-general for Humanitarian Partnerships with the Middle East and Central Asia, U.N. Office for the
Coordination of Humanitarian Affairs (OCHA), Geneva, uses a transformation map in a presentation at the World Economic Forum on the Middle
East and North Africa 2017. Benedikt von Loebell / VIA World Economic Forumissues identified by forum experts. Whenclicked, these sub-topics spawn a further ringof interlinked, related insight areas “exerting
influence” on the key issues. Clicking on oneof these outer points spawns a new transformation map, its topic now at the center.
Because of the different perspectives
offered, Transformation Maps in effect acts
as a counterbalance to so-called filter bubbles. “Some people read The Japan Times,
some people CNBC, some prefer NHK. Most
people just don’t have the time to look at a
broad range of sources. So one thing we do is
we provide a flow that’s not just kind of purenews or social feeds, but a flow of knowledge
that can actually tap into this wide rangeof sources from different parts around theworld,” Jurgens said.
Over 10,000 people registered to use themaps within the first t wo weeks of launch
and there have already been requests to
expand the maps into the Portuguese,
French and Korean languages. Initial popular insight areas included AI, blockchain(“Because of cryptocurrency and initial coinofferings”) and a “perennial domain of interest,” health.
But what has really excited Jurgens andhis colleagues at the WEF is the impact of
the Transformation Maps, their wide global
reach and how they dovetail with the themeof the 2018 WEF Annual Meeting in Davos,“Creating a Shared Future in a Fractured
World.” At the time of the interview, Jurgens

was road testing a beta version of a Transformation Maps mobile application that theWEF plans to release at the summit.
“We ran a workshop in Colombia witharound 50 individuals from a cross-section ofsociety,” Jurgens said. “We found that the map
was then presented to the president and cabinet and now they have one additional toolin their policy toolkit; the maps can act as acomplement to their existing policy tools.”
Users vary from individuals to corporations, academia, NGOs and governments.
“You see some domain names, you don’t
actually know what country that domainname represents straight off and you go andlook it up. That’s the nice power of the internet right there,” Jurgens said.

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PAGE: B3
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4 | The Japan Times | January 23 — January 26, 2018

Davos Special

Showcasing fine cuisine and culture
STAFF REPORT

Offering a welcome respite from thefour-day 2018 World Economic Forummeeting, the annual Japan Night reception presents participants with the finest
in Japanese cuisine and traditional artistic performances.
Held at the Central Sporthotel Davoson the night of Jan. 24, Japan Night is oneof the most-popular programs during
the international conference, typicallydrawing more than 500 guests, including
government leaders, corporate executives and academic experts from aroundthe world. The Ministry of Agriculture,
Forestry and Fisheries, as well as the
National Federation of Agricultural
Cooperative Associations are supporting
this year’s event.
“We aim to present culture and attractions unique to Japan through washoku(traditional Japanese cuisine) and alcoholic drinks that represent the country,”

said The Japan Night Organization Committee, which is comprised of representatives of 25 major private companies
and a university.
Washoku has garnered attention especially since it was added to UNESCO’s
Intangible Cultural Heritage list in 2013,
in recognition of Japanese cuisine as “asocial practice based on a set of skills,
knowledge, practice and traditions
related to the production, processing,
preparation and consumption of food.”
UNESCO noted it is “associated with anessential spirit of respect for nature thatis closely related to the sustainable use ofnatural resources.”
The two-hour buffet reception from
7 p.m. offers a variety of selected items
from Japan, according to the organizers.
Nigiri-zushi (hand-rolled sushi) using
ingredients such as tuna, Japaneseamberjack, scallops and salmon, as wellas broiled wagyu will be served. Additionally, grilled wagyu will be available
to guests and a seafood station will offera shabu-shabu hotpot featuring Japaneseamberjack and scallops with steamed
vegetables.
“In addition to the exquisite foods,
we’d like participants to see firsthand theexcellent knife skills and techniques ofchefs who are active around the world,”
the organizing committee said.

Klaus Schwab, founder and executive chairman of the World Economic Forum, delivers a speechat the 2017 Japan Night reception. the japan night organization committee

Japan Night organizers toast at the 2017 event. the japan night organization committee

The delicacies don’t stop there at thisyear’s Japan Night. A bento featuring
such items as rice cooked with various ingredients, wagyu boiled with soy
sauce and sugar, as well as scallop andkelp salad, will be served in a specially

Guests are served various Japanese delicacies, including sake and sushi, at the 2017 Japan Night event. the japan night organization committee

designed box.
Additionally the buffet features crisp
tempura made with Japanese vegetables,
including sweet potatoes, burdock andsquash, in addition to delicacies including Japanese amberjack grilled on hoba
magnolia leaves.
For dessert, traditional Japanese confectioneries are sure to satisfy attendees.
Additionally, a wide range of Japanese
beverages will also be served to the participants, including nihonshu (sake), Japanese whisky and wine. The top-quality
sake comes from Fukushima and Hiroshima prefectures.
On the entertainment front, Parisbased calligrapher Maaya Wakasugi
will be back again following his appearance in the 2016 event. He will entertain guests with a live calligraphydemonstration.

PAGE: B4

Karin Nakagawa plays a 25-string koto at the 2017 Japan Night reception.
the japan night organization committee

January 23 — January 26, 2018 | The Japan Times | 5

Saitama City

(Publicity)

Saitama in the vanguard of technological innovation
The city of Saitama, a major bedroom
community of Tokyo and a host of venues
for basketball and soccer games during the2020 Olympics, attracts many companies
with leading technology that Japan can beproud to showcase to the world.
Adjacent to one of the world’s largest
cities, Saitama enjoys the benefits of being
close to a huge market. Because manylarge manufacturers, which are their customers, are located nearby, it is home to
many small companies using their cuttingedge technology to manufacture products.
Many of Saitama’s companies makecomponents and materials, rather thanend products, meaning that most of thesecompanies do not enjoy as much namerecognition as they may deserve. However,their components and materials go into
many products that support people’s daily
lives and their excellent craftsmanship
techniques can be a major part of the CoolJapan campaign promoting tourism andthe unique culture of Japan.
The concentration of technology in thecity is owed to its convenient access tothe capital; it takes only 20 to 30 minutes
by train to reach Tokyo, Shinjuku andother major stations. This ease of accesshas attracted many types of businesses,
creating the demand for many different
technologies.
Highways and railways are well developed in Japan to connect Tokyo with otherareas of the country. Saitama serves as animportant hub connecting Tokyo with
Eastern Japan, and thus it is designated as“the gateway of eastern Japan” by the Ministry of Land, Infrastructure, Transport andTourism.
Saitama boasts six shinkansen lines,
as well as an orbital expressway. Thereis ongoing work to improve traffic flow
through additional railway and roaddevelopment.
Geographic advantage, distance fromthe sea and minimal elevationdifferences make Saitama
a suitable location forbusinesses to havecontinuity
opera-

tions
in place
becausesuch features
reduce disaster risks, such as
floods.
The Saitama Shintoshin urban area is anationally designated widearea disaster prevention centerand is an administrative district
that is home to national government
offices.
Not only does the city of Saitama havesuch varied advantages for businesses, italso provides local businesses with theopportunity to expand into the world.
The city takes various measures via
the Saitama City Foundation for Business
Creation to support local companies by
providing consultation, financial aid anddispatching experts to assist them, among
other activities.

Leading-edge certification

In one of the programs to help local companies, the city began the Saitama City
Leading-edge Companies Certification andSupport Program in April 2008. Currently,
the program has 33 companies designatedas leading edge.
These companies are allowed to tout
their leading-edge certification and use theofficial logo, which incorporates a hand to
signify the importance of human input inhigh technology, in their advertising andPR materials.
In addition to using the logo, the companies also receive support from the city

in a variety of forms. For example, thecity promotes them at international tradeshows, helps them in developments of
new technologies and sources new business. Additionally, the city will put more
focus on measures for employee training
and human resource development.
Through a screening process, a review
committee established by the city screensapplicant companies on the basis of originality and innovation, marketability, likelihood of submitted plans to be realized,
expansion potential and social value. The
committee is comprised of professionals
from corporate aid agencies, academia,
international business support organizations, as well as experts in productdevelopment, marketing, financing andaccounting.
The 33 certified companies boast cutting-edge technologies that cannot beeasily copied by overseas companies who
approach them to buy their components,
use their technology and form alliances topenetrate markets overseas.
The following companies are just threeof the certified companies that haveenjoyed global expansion.

ASAP

Established in 1999, ASAP Co., Ltd. is a manufacturer of semiconductor-production
equipment. Its products are machines thatare used to conduct one of the procedures,
called photolithography, to print circuitry
patterns on silicon wafers. The company
also produces metal-lift-off equipment, as
well as machines for wafer cleaning, laser
marking, spin drying and others.
The company’s strength is that it develops such equipment with its customers,
manufactures order-made products andprovides maintenance and other services
after delivery.
“We do everything from designing toassembling in house. Salespeople and engineers can share information very easily.
That’s a great benefit of our company,” said
ASAP President Makoto Osawa.
ASAP is also expanding its sales overseas.
Until 2016, overseas business accounted
for about 20 percent of sales, but the figure went up to 30 to 35 percent in 2017,with most of the sales in China and South
Korea. The company is attending
overseas trade shows and doingother things to expand
businesses in Asia,
the Ameri-cas andEurope.
For
example, it
has shipped oneof its machines to a
research laboratory at
the University of California,
Berkeley that any company
can use with the university’s permission. The U.S. and Europe have
many such research and development
centers and Osawa hopes sales to thoseplaces will build trust and attract newclientele.
Meanwhile, China is a huge market andhe is considering building a manufacturing center in Taiwan and a sales centerin China, though he intends to do so in amanner to protect its intellectual property,
he said.
ASAP is using its leading-edge company
status and taking advantage of Saitama’sTop, from left: ASAP Co., Ltd. President Makoto Osawa; Hasegawa Machine Works Ltd. President Toru Hasegawa; Shu Yamamoto, an officer of Iino Manufacturing Co., Ltd. and manager of the Association of Southeast Asian Nations Business Department, as well as the Sales Department. Bottom: Examples of products and a factory interior.

support. Osawa hopes Saitama will help
his company make connections with companies in Germany, the technology centerof Europe.

Hasegawa Machine Works

Hasegawa Machine Works Ltd., establishedin 1928, is a maker of factory equipmentthat focuses on manufacturing small-size
equipment. Its main products are numerical control lathes and machining centers.
Its customers are automobile parts makers, which account for about half of its
sales, as well as makers of medical cameras, watches and other precision products.
The company differentiates itself fromrivals through its high technology to makecompact products.
“The larger does not serve for thesmaller” is the company’s motto.
“We created this motto 20 years ago. The
concept came from our customers, not us,”said Hasegawa Machine Works President Toru Hasegawa.
The company wasdisplaying its
products

Antenna Giken Co., Ltd.
Arai Helmet Ltd.
Asahi Rubber Inc.
ASAP Co., Ltd.
Bellnix Co., Ltd.
Calsonic Kansei Corporation
Clarion Co., Ltd.
Cosmo Research Corp.
Goto Precision Engineering
Hamamatsu Co., Ltd.
Harves Co., Ltd.

Saitama’s 33 certified leading-edge companies

the maker did and its productivity surged,
he said.
Hasegawa Machine Works can use its
strength of making smaller equipment
to expand its business into the medical equipment industry and the jewelry
making industry. For example, makers ofcomponents connecting human bones
and dental implants can use Hasegawa’s
products.
The company, which has a manufacturing subsidiary in China, is active inattending overseas trade shows to pitch its
products and technology to potential overseas customers. It displayed its products
in six international trade showsin 2017, sending employees to three.

in an
exhibition in2000 and an
automobile parts
maker gave it an ideaof selling more units ofsmaller equipment, which

PAGE: B5

Hasegawa Machine Works Ltd.
Iino Manufacturing Co., Ltd.
Kaneko Manufacturing Co., Ltd.
Kimoto Co., Ltd.
Musashi Optical System Co., Ltd.
Nihon Dento Kougyo Co., Ltd.
Nippon Piston Ring Co., Ltd.
Nishina Industrial Co., Ltd.
Nissho Electronics Co., Ltd.
Nissin Kasei Co., Ltd.
Nittoku Engineering Co., Ltd.

Origin Electric Co., Ltd.
Porite Corporation
Saiden Chemical Industry Co., Ltd.
Science Inc
Softronics Co., Ltd.
Sumita Optical Glass, Inc.
Tamron Co., Ltd.
TechnoScope Co., Ltd.
Tokyo Titanium Co., Ltd.
Watanabe Co., Ltd.
Yamada Machine Tool Co., Ltd.

Saitama provides financial, as well asother support, for leading-edge companies
to attend such trade shows and Hasegawa
is “very satisfied” with the support his company has received, he said.
“Overseas expansion is importantbecause it offers a risk hedge. Because weare in a niche market, focusing only on
Japan limits our growth,” he said.

through the process of machining, forming,
stamping, grinding, welding and brazing.
“Iino Manufacturing is one of the competitive suppliers in the field of precision
processing,” said Shu Yamamoto, an officer
and a department manager of Associationof Southeast Asian Nations Business andSales.
To succeed, the company has to preserve
its particularity, the so-called Iino DNA,
which is the spirit of art, to say nothing of
quality, to break through given difficulties
to reach the next level.
Iino Manufacturing needs to infuse its
DNA to its overseas subsidiaries. Besides
Japan, the company has production plants
in China, the Philippines, the U.S. and Mexico, as well as a logistics center in Indonesia.
It is of utmost significance to secure
human resources to transfer the technology into those subsidiaries overseas.
Iino Manufacturing is also trying toincrease sales in fields other than autoparts. Certified as a leading-edge company,
Saitama has been introducing Iino
Manufacturing to medical equipment
makers and other overseas
companies.

Iino Manufacturing

Iino Manufacturing Co., Ltd., establishedin 1948, is a supplier of automotive parts,
mainly for Honda Motor Co., Ltd. It produces precision components for engines
and transmissions of automotive, motorcycles and other machines.
As for hollow dowel pins, which contribute to weight reduction compared withthe solid type, Iino Manufacturing is amajor supplier to Honda Motor Co. Ltd.
The company has the edge
on precision metalcomponents

6 | The Japan Times | January 23 — January 26, 2018

Society 5.0(Publicity)

Japan: A frontrunner to solve social challengesA

chieving sustainable growth
while coping with a population
decline calls for “Society 5.0,” asuper smart society where we
can resolve various social challenges by
incorporating the innovations of the fourthindustrial revolution such as the “internet ofthings,” big data, artificial intelligence, robots
and the sharing economy into every industry and society.
Japan, in a sense, is far ahead of the rest of
the world in realizing this new society, as
it is compelled to do so. About 27.3 percent
of Japan’s 127 million people were aged 65
or higher in 2016, with the ratio expected
to reach 38.4 percent by 2065, according to the Ministry of Internal Affairs andCommunications.
The country’s medical expenses are also
expected to increase. The Ministry of Health,
Labor and Welfare reported ¥41.3 trillion
in medical costs in fiscal 2016, and they are
expected to increase to ¥57.8 trillion by fiscal
2025, according to the National Federation of
Health Insurance Societies.
Being a frontrunner, a wide range of challenges — that will soon be faced by more andmore countries — somewhat forces Japan tocome up with innovative solutions.
Large corporations in Japan have traditionally driven innovation. However, on this front,
the real boosters to the engine come from therising startups. Without startups, “Society 5.0”
will not be realized to its fullest potential.

Innovation from startups

There is a persistent perception of Japaneseindustry involving excessive “red tape” or“being slow on the innovative front,” butsuch ideas are outdated. Driving innovation — creating an ecosystem to promote
continuous innovation — has been one of
the top priorities in Prime Minister Shinzo
Abe’s administration.
To facilitate the launch of startups, thegovernment has implemented various
measures, including the removal of theminimum capitalization requirement
and the establishment of the Innovation
Network Corporation of Japan to provide
capital and managerial support. The Japan
Venture Awards have been awarded tomore than 260 entrepreneurs since 2000.
Moreover, the government has supported
entrepreneurial education programs at
schools and plans to host a global venturesummit in 2020, when the Tokyo Olympic
and Paralympic Games are held.
These efforts have helped venture capital to rapidly grow, with more than about¥261.2 billion ($2.4 billion) pouring into
startups from Japanese funds, including
both independent, as well as universityrelated funds, in 2016. According to Japan
Venture Research Co., that level of investment has not been seen since 2008.
These positive trends have not only provided flexible funding to startups’ fresh
ideas, but also expanded networks among
entrepreneurs, investors, governments andresearch institutions. One of the most outstanding outcomes of such networking is
the launch of The University of Tokyo Edge
Capital Co. (UTEC) in 2004. UTEC nurtures
cutting-edge technologies in Japan’s mostprestigious academic institution, the University of Tokyo, and helps monetize their technology through investment and networking.
“I have huge expectations for startups,”
said Tomotaka Goji, managing partner andpresident of UTEC, which has operated
four funds totaling ¥45 billion, investingin about 80 companies since its foundation. Nine of them went public and 10
were acquired in mergers and acquisitions,according to the firm.
“If the university startups combine their
original technologies with those from institutes and companies around the world, they
could produce something even better on a

Autonomous driving technology is expected to be widely used in “Society 5.0.” GETTY IMAGES

larger scale,” Goji stressed.

Labor shortage solutions

Creation of a solid ecosystem has enabledstartups to fully exercise their potential, bringing Japan closer to “Society 5.0.”
Goji noted Mujin, Inc. (“mujin” is the Japanese term for “unmanned”) could offer solutions to the growing labor shortage on theback of a decreasing population. The firm
invented intelligent robotic controller technology that was displayed at a recent international exhibition in Tokyo.
“It moved as smooth as a human,” Goji
recalled, who saw the firm’s technology atthe event. Mujin Pick Worker can recognize atarget object in 3-D, using collision avoidance
and real-time motion planning technology,
according to the company.
“As there is a tremendous need for loading
and unloading amid today’s labor shortage,
the scene showed me the actual realistic useof such technology,” Goji said.
The firm’s clients include many major
companies, including Canon Inc., Honda
Motor Co. and Askul Corp. Its technology
is also sought after by JD.com, the secondlargest e-commerce firm in China. It willreportedly start operating the world’s first
fully automated operation at its warehousein February, using Mujin’s technology.

Health care breakthroughs

A rapidly aging society will see ballooning
medical costs, imposing a huge burden on its
government’s fiscal condition. Innovation in
health care to increase efficiency serves as oneof the keys to solve such sustainability issues.
Two companies UTEC invested in could
help curb health care expenditures as theirtechnologies could be utilized for creating
drugs better suited for individual patientsand more effective in disease prevention,according to Goji.
Goji noted the analysis technology
invented by Repertoire Genesis Inc. is useful for determining immunological status andabnormalities, enabling doctors to know the
drug efficacy for patients in advance.
“This could facilitate the individualization of medical services more efficiently at
lower costs,” he said.
The firm has developed a next-gen T celland B cell receptor repertoire analysis thatis based on unbiased gene amplification
technology and bioinformatics.
Meanwhile, the technology of MiRTeL Co.,a startup founded by a Hiroshima University
professor, could lead to increasing health careproductivity and lowering medical costs whileachieving longevity. It utilizes a microRNAmeasurement test, Japan’s first disease-specifictechnique for the early detection of illness,that identifies irregularities in blood.
“This technology can detect diseases at
an earlier stage, even before doctors areable to give a diagnosis,” Goji noted. “Given
that, the technology could prevent theonset of a disease as it will enable a patient
to take necessary measures in their daily
health management.”

Environmental impact

Environmental protection is anotherimportant sustainability issue for which
innovation can provide creative solutions.
One such example is, according to Goji, thedevelopment of electric vehicles (EVs) by
Japanese startups.
GLM Co., which started as a Kyoto University venture, manufactures and sells
EVs, in addition to providing chassis forsuch cars produced by other makers.
“More and more makers of EVs are being

Tomotaka Goji, managing partner and president of venture capital firm The University of Tokyo
Edge Capital Co., has great confidence in Japanese startups. YOSHIAKI MIURA

Mujin, Inc.’s next-generation intelligent robot controller. Mujin, inc.

Besides building chassis for other electric vehicle (EV) makers, GLM Co. makes its own EVs such as
the GLM Tommykaira ZZ (above) and GLM G4 (below). GLM Co.

PAGE: B6

Newspicks brand design

launched in emerging countries, so the firmeyes those markets in providing chassis,”
Goji said.
In the development of EVs, proper battery management is crucial as the vehicles
are powered by a laminated battery pack,requiring solid control systems, Goji noted.
NExT-e Solutions Inc. is developing nextgeneration battery management systems,
as well as the technology to facilitate thereuse of lithium-ion batteries.
Goji said the company’s battery management system has been adopted in the mostpopular small EV in China, manufactured
by Zhidou Electric Vehicle Co., as well as in
the electric forklifts of Germany’s Jungheinrich AG.
To meet growing demand for lightweightEVs as the development and use of suchvehicles advance, Advanced Softmaterials
Inc. might offer a suitable product, according to Goji. The firm is engaged in the development of resin for use in the bodies of EVs
with Toray Industries, Inc.
“We are planning to test-drive a concept EV
equipped with the body utilizing the mate-rial when the Tokyo Olympic and Paralympic
Games are held in 2020,” Goji said, adding thatthe mass production could start in 2022.

Further promoting innovation

Japan is ranked third among major countries
in terms of research and development spending after the U.S. and China, according to a2017 report by the Center for Research andDevelopment Strategy, yet investment value
in startups has been quite small compared toother countries. In North America, venture
capital funds raised around ¥3.7 trillion ($34billion) in 2016, while Europe raised about¥663.9 billion ($6.1 billion) and Asia saw about¥1.4 trillion ($13 billion), with China-focused
funds accounting for 64 percent, according
to figures released by Preqin Ltd. Japan raised
approximately ¥276.3 billion the same year,
according to Japan Venture Research.
Stepping out of the “go it alone” principle ofclosed innovation among large firms might
be a key to further nourish the startup ecosystem. If they were to redistribute part of their
R&D money to joint businesses with startups,
Continued on page 7→“Society 5.0” could drastically transform the health care industry. GETTY IMAGES

January 23 — January 26, 2018 | The Japan Times | 7

Society 5.0(Publicity)

Public and private sector in
hand in hand cooperation→ Continued from page 6
including M&A, that could cause a rippling
effect of innovation in Japan. Recently
such a trend has been observed more andmore.
In the past, state-of-the-art technologies
and products developed by large corporations only to suit unique needs of Japanesecustomers were often ironically called “Galapagosized,” a term coined after the famous
isolated island in the East Pacific that ishome to unique animals. At that time theJapanese market by itself was big enoughand rapidly growing, but it will not last forever due to a shrinking and aging population.
Partnership with more flexible startups witheyes and ears to constantly changing needsof the global market would help avoid such
“Galapagosization” in the future.
At the same time, according to Goji, Japanneeds to take advantage of its uniquely
challenging environment that caused“Galapagosization” in the past, to lead theworld now. For example, in the field ofautonomous driving, Japan’s unique roadenvironment is offering developers, including startups, great opportunities to polishtheir technology to strengthen safety andcreate better products for practical use.
“Japan has many winding roads and lotsof traffic lights, bringing cars to a stop manytimes,” Goji noted. If autonomous technologies have developed through adapting to suchchallenging circumstances and overcoming
topographic difficulties, they can meet various traffic situations, paving the way for them
to be used elsewhere in the world, he said.

Vulnerability of cyberspace

In a society where everything is connectedin cyberspace, it means one intrusion candamage the whole system.
The increased connectivity in “Society
5.0” could mean that the world, including
Japan, will be more prone to cyberattacks,
but the vulnerability could be eliminated or
greatly reduced if necessary measures areproperly introduced.
The recent WannaCry ransomware attack
hit companies and organizations worldwide,causing extensive damage in around 150
countries, according to media reports.
“The cyberattack hit through the internet,
but it was minimized in Japan thanks to what
can be deemed a firewall that was in place inmany businesses,” said Toshio Nawa, executive director and senior security analyst at
Cyber Defense Institute, Inc.
Here, a simple question comes up: “Why
did Japan manage to minimize the damage
from the cyberattack?”

One possible answer can be attributed to
the fact that Japanese cybersecurity technologies are developed from the bottom up, rather
than from the top down, according to Nawa.
In general, the management in many
Western countries was highly interested in
the introduction of cybersecurity measures
as systems without them could badly affecttheir production lines or sales in the eventof accidents, Nawa said.

Security from the bottom

Contrary to such a trend, in Japan cybersecurity technologies have developed through theneeds of the gemba (the actual worksite) withthe purpose of purely protecting their own
systems. Japanese cybersecurity products
have often been proprietary, leaving top-quality technologies long buried within small andmedium-sized companies without having achance to be globally recognized.
Such technologies were hardly a cash
product, but this is no longer applicable forJapanese vendors now, as they are increasingly recognized domestically, as well as in
the world.
Through the development of cybersecurity products, vendors acquired deep
knowledge of the internal mechanisms ofcomputer systems, leading them to create
unique products with the focus on thosedetailed aspects, Nawa said.
Nawa noted FFRI, Inc.’s Yarai as such an
example. The product eliminates threats
before they begin with a patented precognitive defense. It has such features as static
analysis and sandbox engines that monitor
unusual programs at pre-execution.
According to the company, the product andits relevant systems have been introduced at
public organizations and infrastructure providers, including Hanshin Expressway Company Ltd. and Tokyo’s Toshima Ward Office.
Nawa went on to introduce F.TRON Inc.’sINTΦ, a software that takes control of acomputer, fully protecting the system. The
product doesn’t allow malicious programs
to execute since it boots up right after thecomputer powers up. It works in a memory
space that the operating system can neveraccess, according to the company.
He also mentioned Blue Planet-works,
Inc.’s AppGuard, which has received highevaluations through many years of use at various U.S. government agencies. The productprotects all systems connected to the internet
from cyberattacks. Its unique platform prevents illegal behavior of malware in the earlystages of attack and the violation of importantsystems, according to the company.
As a matter of fact, a recent international

event showed increased attention on Japanese cybersecurity products. About 1,000
people visited the Japan Pavilion at the Interpol World 2017 global exhibition in Singapore
in July, in which 10 companies from the Japan
Network Security Association participated,
including UBsecure, Inc. and Infosec Corp. The
number of visitors was twice as large as theirinitial target of 500, implying growing attention on the Japanese technologies on the backof increasing need for high-quality services.

Further changes ahead

While Japan moves toward “Society 5.0”
with the integration of the physical world
and cyberspace in sight, the country has
to undergo a big challenge surrounding
its cyberspace. By 2025, metal cables, on
which the familiar integrated services
digital network (ISDN) is operated, will nolonger be used. ISDN has been utilized in
automated teller machines, building control systems, electronic data interchanges
and other areas.
This means that everything must be transitioned to optical fiber, forcing industries togo through major evolution, creating “a hugechange in the foundations of cyberspace ofbusinesses,” Nawa pointed out.
Thus, Japan will stand in a unique position to completely renew the current networks at once. This gives the country achance to learn from global best practices
and implement them with a touch of theirown knowledge of cybersecurity.
“These transitions would surely create
further needs for secure and stable internet
usage, leading to the development of moresophisticated and higher-quality services,”
Nawa said.

Public-private cooperation

To further strengthen cybersecurity, public and private cooperation is essential toaddress the growing threats of cyberattacks. Japan has something that could contribute to the world.
The Cyber Clean Center project, which
operated from 2006 through March 2011,
showed great success in terms of public
and private cooperation, even providing abenchmark for countries such as the U.K.
and Singapore.
Led by the Ministry of Internal Affairs
and Communications and the Ministry of
Economy, Trade and Industry, the project
promoted the removal of malicious bots.
More than 80 internet service providers andrelevant firms took part and coordinated toanalyze bot characteristics, providing information on removal from computers.

Coordination among various players is required to strengthen cybersecurity. Getty Images‘Society 5.0’ at 2025 Expo

Japan will showcase the above mentioned “allJapan” efforts in realizing “Society 5.0” to therest of the world during the Tokyo Olympics
and Paralympics in 2020, and hopefully at theWorld Expo in Osaka, Kansai, in 2025, which iscurrently under the bidding process.
At the 2025 Expo, Japan aims to present what the country can offer in terms ofsolving global challenges, including thosein health care, medical treatment, food, theenvironment and disaster prevention, on
the artificial island of Yumeshima (Dream
Island) in Osaka Prefecture.
Osakans are well known for their yatteminahare or “give it a try” attitude that signifies
their spirit of trial and error.
“Jumping in with both feet and giving it ashot. That’s the important spirit Japan needs
in realizing this ‘Society 5.0,’” the prime minister once noted, emphasizing that the area issuitable to host the international event.
The World Expo 2025 in Osaka is proposed
to take place for 185 days from May 3 throughNov. 3, with the number of visitors expected
to be about 28 million. Osaka successfully
hosted Japan’s first expo in 1970, attracting
more than 64 million visitors.
The host country will be selected at theGeneral Assembly of the Bureau International
des Expositions in November.
$/¥ exchange rates based on the 2016 Bankof Japan average (¥108.83/$)“Society 5.0” pages are sponsored by the Government of Japan.

Implementing proper measures, including cutting-edge hardware and software, is essential forcybersecurity. Getty Images

The layout of pavilions and site configuration highlights the diversity and uniqueness of theWorld Expo 2025 Osaka, Kansai, venue concept. Ministry of Economy, Trade and Industry

The planned Khus plaza at the Expo site serves as a major gathering spot, which will be thehighlight of the interaction and co-creation. Ministry of Economy, Trade and Industry

PAGE: B7

Toshio Nawa, executive director and senior security analyst at Cyber Defense Institute, Inc.,
stresses the necessity to further strengthen cybersecurity efforts. Yoshiaki Miura

The Cyber Defense Institute, Inc., in collaboration with NEC Corp., helped with scenario development
for the Interpol Digital Security Challenge held in Singapore in March. Cyber Defense Institute, Inc.

8 | The Japan Times | January 23 — January 26, 2018

Davos Special

Wagashi confections enjoy increased global popularity
Makiko Itohcontributing writer

Back in the 1990s to early 2000s, my sister worked as a chef in the kitchen of the
Toraya Cafe in New York City, the sole
North American branch of a famous
wagashi (traditional Japanese confections) maker that has been in businesssince the late 16th century. Her job was tocreate savory lunch items that would complement the lineup of traditional sweet
confectioneries that Toraya is renownedfor. She enjoyed her job and found it challenging, but there was one problem —the store, located on the Upper East Side
right around the corner from the FrickMuseum, had trouble attracting customers. The Japanese expat community loved
it (Yoko Ono was a regular customer),but the locals seemed to find the bean
and rice-based confectioneries hard to
get used to. Toraya New York eventuallyclosed their doors in 2003.
In the 15 years since, awareness of Japanese cuisine in general around the world
has increased greatly, including an appre-

ciation for wagashi. The word wagashi
literally means Japanese snack, although
it usually means sweet confections. They
range from homey items such as kushi
dango, rice dumplings on skewers coatedwith a bean paste, to the highly refined,
delicate confections called jo-namagashi
that are formed in shapes that reflect theseasons.
Most wagashi are based on a few simple
ingredients, with white or brown sugar,
beans (both red adzuki beans and whitebeans) and short-grain (mochi) rice andrice flour as the most common, while apaste made with finely pureed beans andsugar called an is often used as a filling or
topping. Some wagashi also use kanten(agar), kuzu (kudzu) flour, wheat flouror potato starch, as well as starch-based
sweeteners such as mizuame (a clear sugar
syrup). Many wagashi are quite sweet,
since they are meant to be paired withthe slight bitterness of green tea, andsome have a touch of salt or soy sauce toenhance their sweetness.
A big reason for the increasing popularity of wagashi is that they are very pho-togenic. To use one of the top trendingphrases of 2017 in Japan, the colors andshapes of wagashi are “Insuta-bae,” having
great appeal on Instagram or other social
media. The textures and flavors are often
quite unfamiliar to Western consumers
used to European-style pastries, but aswith most edible things it seems that themore they are tried, the more familiar
and tasty they become. In an informal
survey of more than a hundred Japanesefood enthusiasts, some mentioned mamedaifuku, a dumpling of pounded rice
dough filled with bean paste and studded
with slightly salty beans, and taiyaki, anan-filled pastry baked into the shape of afish, as favorites.
Manga and anime are widely acknowledged as being windows to Japaneseculture for the world, and they havealso helped make people more awareof wagashi. Japanese movies and television shows have also helped to spreadthe word. The Netflix series “Kantaro:
The Sweet Tooth Salaryman,” starring
kabuki actor Matsuya Onoe, which originally aired on TV Tokyo and is based on

From top: Konpeito, brightly colored sugar candy; Kintaro ame is a traditional candy in a cylindrical shape, originating during the Edo Period andoften representing a picture of legendary hero Kintaro as a child. After being sliced, the cylinder’s cross-section shows an almost exact replica of
Kintaro’s face; Kuzu manju is made with kuzu (kudzu) jelly and is served in the hot summer months. The transparent watery surface and smoothmouth feel is supposed to evoke a feeling of coolness to combat the heat. all photos on this page courtesy of makiko itoh

a manga, presents a variety of wagashi incomically exaggerated detail along with
Western sweets that are favorites in Japansuch as Mont Blanc and caramel pudding.
Since it started airing late last year theseries has quickly gained an international
cult following.
Another reason for wagashi’s appeal
these days is that some see them as analternative to European-style pastries
for health and other reasons. Since many
wagashi are based on beans and rice
rather than wheat flour, butter, milk andeggs, they are gluten, dairy and often eggfree. (Not all wagashi fit these criteria
though; some like dorayaki, small pancake
sandwiches filled with an, are made witha batter that contains wheat flour andtypically eggs, too, as is kasutera cake, taiyaki and others. One can’t forget all thatsugar either.) They also fit within religious
dietary restrictions — Koeido has had
their kibidango (small, sweet mochi cakes)
halal-certified, for example.
With the number of overseas tourists toJapan increasing annually, some wagashi
makers, many of whom have been in busi-

ness for generations, are trying to attract
their business. Some have been taking
their cue from mass-market snack makers like Nestle, which makes traditional
Japanese-flavored Kit Kats — such as matcha and sake flavors — in Japan only, thathave attracted lots of buzz worldwide.
The 260-year-old wagashi maker Okashi
Tsuchiya, based in Ogaki, Gifu Prefecture,
has been one of these, with creations
such as Mizu no Iro (The color of water),a beautiful assortment of candies madewith agar and sugar, and Korando, a chocolate log containing locally sourced driedpersimmons, figs, toasted rice and walnuts. Since many newcomers to wagashi
find the sweet bean paste the most daunting aspect of wagashi to get used to, somewagashi makers have been experimenting with jam or whipped cream as fillings
instead.
Tokyo’s 124-year-old Aokiya has taken adifferent approach, by changing the recipe
for the bean filling in their traditional
Kurodora dorayaki to suit the tastes ofboth overseas tourists and young Japanesepeople. The creative adaptation of foods

and ingredients from other cultures isnothing new; yokan, a rectangular log ofadzuki bean paste, sugar and kanten, is aJapanese adaptation of a Chinese concoction of sugar, beans and boiled and jellied
mutton.
Japanese snacks have been slowly
increasing their presence outside Japan,
too. Minamoto Kitchoan has 40 stores ineight countries and areas, with outlets inmajor cities such as New York, London,
Singapore, Taipei and Hong Kong offering various wagashi, and subscription
boxes that have selections of Japanesesnacks (usually called dagashi rather thanwagashi) are increasing in popularity.
There are local takes on the wagashi tradition too, such as The Little One, a dessert
cafe that opened in December on New
York’s Lower East Side.
As for Toraya, their Paris store, which
actually opened its doors before the New
York one and will mark its 38th year ofoperation in 2018, has grown in popularity recently and is a fixture in the French
capital. Perhaps it’s time for them to tackle
the U.S. market again.

Clockwise from top: An assortment of nerikiri, a type of jo-namagashi that is traditionally served at a tea ceremony; Ningyo-yaki doll cakes are
grilled cakes filled with an (finely pureed beans and sugar) that originated in Ningyo-cho, Chuo Ward, Tokyo; Anmitsu is a homey bowl of rice
dumplings, an (bean paste) syrup and fruit; Mamedaifuku, a dumpling of pounded rice dough filled with bean paste and studded with slightly saltybeans. It received attention recently since being featured in the Netflix series ‘‘Kantaro: The Sweet Tooth Salaryman.’’

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