Japan Revitalization Strategy 2016

Provisional

Section 2 Specific measures

Ⅰ Creation of new prospective growing markets, enhancement of Local Abenomics, etc.

1. Realization of the fourth industrial revolutions(1) Progress in achieving KPIs
<KPI> “Aim for over 30,000 registered IT Security Support Providersby 2020.”* KPI newly set up by this year’s edition.
<KPI> “Aim for 15 million subscribers to MVNOs (Mobile Virtual
Network Operators) by the end of this year.” (Approx. 9.54
million contracts as of March last year)⇒ December last year: Approx. 11.55 million contracts(2) Specific new measures to be taken
The Government will establish control tower functions through cooperation
among government, industry and academia to strategically push forward
research and development of artificial intelligence (AI)-related technologies, a
key to the fourth industrial revolution as well as industrialization taking
advantage of Japan’s strengths, while promoting national scale endeavor
towards discovery and implementation of projects for data utilization andregulatory and system reforms.
As well, the Government will drive environmental development to support
the fourth industrial revolution. To be more specific, it includes businessrenewal acceleration to keep pace with fast change, development of systems
for human resources and education, promotion of IT utilization in mid-ranking
companies and SMEs, facilitation of data distribution, and development of IT
infrastructure such as infrastructural improvement of security and informationand communications.
i) Establishment of control tower functions to accelerate research anddevelopment, and practical implementation of AI-related technologies,
a key to the fourth industrial revolution, and promotion of regulatory
and system reforms and cross-business and cross-organizational datautilization projects[1] Establishment of the “Council for Strategies for Artificial
Intelligence Technology” with control tower functions concerning AIrelated technologies under cooperation among government, industry
and academia, and promotion of research and development, andpractical implementation of AI-related technologies- The “Council for Strategies for Artificial Intelligence Technology” wasestablished in April this year as a control tower to accelerateindustrialization which leverages Japan’s technological advantage in AIrelated technologies and the field of real business. While breaking all thebarriers among the Government, government-affiliated research
institutions, universities, and the public sectors, and making strategiccooperation with overseas research institutions as well, the Government

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will engage the “Council for Strategies for Artificial Intelligence
Technology” to draw up a roadmap defining objectives of research anddevelopment related to AI technologies conducted under cooperation
among government, industry and academia, and industrialization thereofby the end of this fiscal year, in order to win through in the global
competition concerning the fourth industrial revolution with concerted
efforts. As well, to realize centralized promotion of research anddevelopment of technologies all the way to practical implementation
thereof, the Government will specify measures necessary for world-classresearch and industrialization in this fiscal year, such as establishment of
global research bases to conduct research and development in fields which
integrate Japan’s advanced technologies in robotics, advanced
measurement and analysis, and fine processing with AI-related
technologies; development of groundbreaking fundamental technologies;
acceleration of practical AI implementation through provision andstandardization of tools including AI-related software modules; andimprovement of research environment.
- Coupled with such efforts, the Government will promote continual
discussion both inside and outside Japan with respect to establishment ofinternational principles on matters to be noted (including transparency,
controllability, etc.) upon development of AI based on the spread andnetworking of AI and its impact on society and humans, continual
revisions of such principles, and other related social and ethical issues.
[2] Promotion of regulatory and system reforms and data utilization
projects[Development of a project-selection system]- In order to deal with the fourth industrial revolution, where it is difficult topredict technological innovation and speed is valued more than ever, theGovernment will introduce a new mechanism to implement regulatory
reforms this summer at the earliest, through which the public and private
sectors share future image of business to be achieved by a specific date, fromwhich they work backward to draw up a roadmap and implement specificreforms. [Discussed later.] (To be detailed in “II-1. Introduction of a newmechanism for regulatory and system reforms”.)- The first stage of the fourth industrial revolution was a race for data on theinternet whereas, in the second stage, data from the real world, such as
manufacturing which Japan is strong at, will be competed for. For thisreason, the Government will enhance its efforts to develop businessincluding identifying cooperative business fields where data can becollected, analyzed, and utilized as assets across different businesses andorganizations through utilization of the “IoT Acceleration Consortium”
and “Robot Revolution Initiative.” In order to accelerate creation of advanced business projects andpractical implementation, the “IoT Acceleration Lab” will 1) provide
assistance for short-term projects by individual companies in bothfinancial and regulatory aspects (utilization of the System of Special

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Arrangements for Corporate Field Tests and the System to Remove
Gray Zone Areas), and at the same time, 2) work on environmental
improvement including reforms of regulations and rules throughdemonstration projects (in the fields of smart houses, infrastructure,etc.) utilizing medium to long term projects by multiple companies. To
form these projects, the Government will accelerate its efforts topromote cooperation among companies and local governments, aswell as partnership with governments of Western, Asian, and Middle
Eastern countries and international institutions with a purpose of
establishing Japan as an IoT business hub and attracting the world’s
IoT business to the country. While working with local universities,
research institutions and businesses as well, the Government will
promote local governments’ active efforts to establish “Local IoT
Acceleration Labs” in order to conduct its project discovery programon a nation-wide basis.
Together with such efforts, in light of a shift from cloud-based
centralized data management and processing structure to a distributed
computing system, which will take place in a full-grown IoT era, theGovernment will propose technological strategies to realize distributed
computing including cooperative AI and embedded software, in
addition to virtualization technology which realizes all functions
through software, while deliberating institutional issues towards
utilization of blockchain technology in business and promotion of data
distribution, thereby aiming to develop relevant policies this fall.
 By promoting venture companies’ research and development by using
test environment (testbeds) owned by the National Institute ofInformation and Communications Technology (NICT) throughactivities of “Smart IoT Acceleration Forum,” the Government will
provide assistance to create services in priority areas closely
connected to people’s lives and local revitalization, such ascommunications, broadcasting, agriculture, medical treatment, andcities/ housing.
 At the “Robot Revolution Initiative,” the Government will carry out
discussion on proposal for international standardization efforts incooperation with Germany concerning business reform andsmartification of manufacturing industry by use of IoT and big data,
and deliberation for discovery and creation of model case efforts.

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[Implementation and realization of individual projects]<Related to business fields of B to C>a) Further enhancement of healthcare and medical services by utilizing IoT- In order to utilize information in fields of medical services, etc., theNext-Generation Medical ICT Infrastructure Council will deliberate on the“Agency Organization (tentative name)” system. Based on the results, theGovernment will take necessary legal measures sometime next year.
[Discussed later.] (To be detailed in “I-2. Making Japan the world’s mostadvanced country in healthcare”.)- In order to realize provision of “individualized healthcare services”
which cater to the needs of each single person, the Government will startby the end of this fiscal year a demonstration project which, under theconsent of individuals, collects and analyzes medical practitioners’ receipts
for health insurance claim, and medical checkup information held byinsurers and companies as well as health data which can be obtained
regularly through wearable terminals, etc., and provides individual
healthcare services. As for reform to enhance medical insurers’ incentives
for preventive healthcare and health management, the Government will
design it so that incentives would be given to preventive healthcare andhealth management based on ICT including efforts for the saiddemonstration project. (To be detailed in “I-2. Making Japan the world’s
most advanced country in healthcare”.)b) Development of environment for realization of advanced automateddriving including unmanned automated driving- To realize transportation services by unmanned automated driving andautomated driving on expressways by the 2020 Tokyo Olympic andParalympic Games, the Government will develop systems andinfrastructure enabling necessary demonstration projects by next year
based on the “Public-Private ITS Initiative/Roadmaps 2016” (decided
by the Strategic Headquarters for the Promotion of an Advanced
Information and Telecommunications Network Society (hereinafter,
referred to as the “IT Strategic Headquarters”) on May 20, 2016). As
well, to promote innovation in ITS including such automated driving,
the Government will make efforts for research and development
projects under the Strategic Innovation Promotion Program (SIP) by
the Council for Science, Technology and Innovation, and will work on
development and utilization of traffic database including vehicle
detectors to be installed on streets based on the above roadmap.
- By breaking the barriers between businesses, the Government will
standardize specifications of automated driving maps, based on
which it will propose an international standard sometime this fiscal
year. As well, the Government will promote development of maprelated data through cooperation of public and private sectors, andaim to put them into practical use by as early as 2018.

4c) Development of environment for further business use of small drones- The Government will aim for realization of package delivery bydrones in three years at the earliest as well as further use of small
drones in a variety of fields including disaster-stricken areas fordamage inspection, search, and rescue, management of
infrastructure, surveying, and the agriculture, forestry and fisheries
industries. For this purpose, the Government put together expertiseof both the public and private sectors into “Summary of issues
concerning a roadmap and system design for utilization andtechnological development of small drones” (decided by the PublicPrivate Council for environmental improvement concerning small
drones on April 28, 2016). Based on this Summary, the public andprivate sectors will work together to realize the “industrial revolution
in the sky” by developing evaluation standards for small drones’
performance and an operation control system, providing assistanceto technological development and demonstration for improvementof collision avoidance functions, and starting discussion onnecessary measures (rules for operation control and collision
avoidance of small drones) so that new safety-approved technology
would be smoothly adopted for practical use. As well, by thissummer, the Government will systematically organize and sharesafety measures based on application of the revised Civil
Aeronautics Act, and will decide on the direction of system designfor ensuring safety. Then, the Government will go on to discuss
details of the system design. In addition, the Government willdevelop necessary systems by this summer to allow extension of
bandwidth and increase in radio signal output available for drone
operation and data transmission, and use of mobile phones up in thesky.
d) Realization of the world’s most advanced smart factories- The Government will aim to create more than 50 advanced cases ofcross-organizational use of sensor-collected data among factories,
between factories and headquarters, and among companies by 2020.
Based on this, the Government will propose an international
standard. As well, the Government will further enhance cooperation
with other countries, including Germany with which Japan issued ajoint statement in April this year.
e) Promotion of utilization of next-generation robots- The Government will start deliberation on next-generation robots.
Different from robots which have action patterns installed inadvance and repeat accurate and fast actions on the basis of input
data which are homogeneous to a certain degree, next-generation
robots, which the Government will develop element technology forwith an aim to put them to practical application, will have AI
installed, thereby learning and acting autonomously. As well, while5cooperating in efforts for research and development/
industrialization of AI, the Government will push forward withtechnological development and demonstration for a wide range offields such as transportation of people and goods including in an
emergency, response to a disaster, and management of infrastructure
in order to realize a new robot society where multiple robots
recognize their surroundings and work together autonomously.
f) Smartification of industrial safety- With regard to industrial safety, the Government will introduce a
new system at the beginning of next fiscal year, which enables more
flexible regulations according to the safety capabilities including
application of regulatory positive incentives to businesses which aretaking advanced voluntary safety measures, for example, by using
IoT for continuous monitoring. At the same time, the Government
will conduct demonstration experiment in plants to promote sharing
and utilization of data across corporate boundaries, based on which
the Government will revise the systems. In addition, theGovernment will promote development of new insurance products
reflecting utilization of IoT, thereby encouraging plant owners toinvest in efforts for smartification while leveraging implementationof an IoT-based smart safety system for export of Japan’s
infrastructure.
g) Promotion of utilization of IoT, big data, AI, and robots concerning
prevention of and response to a disaster- With regard to enhancement of countermeasures against naturalcalamities based on detailed simulation of a disaster bysupercomputers, and utilization of IoT, big data, AI, and robots fordisaster prevention and response including use of sensors, robots,and small drones in disaster-stricken areas for inspection, search,and rescue, the Government will take into account huge potential
needs of such technological application and possibilities of future
overseas implementation and actively push for technologicaldevelopment and demonstration as well as introduction andpromotion thereof.
h) i-Construction- In order to promote use of ICT in overall construction andproduction process from research/ survey to design, execution/
inspection, and maintenance/ renewal, including utilization of 3D
data obtained by flying drones for earthworks such as raising andcutting the ground, the Government will start applying necessary
standards to basically all large-scale national construction projects
from this fiscal year. (Reducing the number of days for inspection
and the amount of inspection documents to a fifth and a fiftiethrespectively)

6i) FinTech [Discussed later.] (To be detailed in “II-2. System reform
towards future investment”.)- The Government will enforce the Act to Partially Amend the
Banking Act to Deal with Environmental Change including
Development of Information and Communication Technology, andprepare government ordinances and Cabinet Office ordinances
required to deal with virtual currency and technological innovation
as a result of IT development.
- To strengthen international competitiveness of Japan’s financial
business, the Government will discuss issues related to FinTech andmeasures for them at the “Panel of Experts on FinTech Start-ups”
and promote cooperation and integration of human resources fromvarious fields as well as formation of a network with people fromfinancial and IT industries in order to develop a FinTech ecosystem.
- To promote development of environment to strengthen cooperation
between financial institutions and financial IT companies, theGovernment will continue to discuss issues related to financial
systems in the Financial System Council in light of further
development of FinTech from the perspectives of promotion of
innovation, user protection, fraud prevention, and ensuring ofsystem security. In so doing, the Government will also discuss how
the legal system should be in terms of the relationship between
FinTech companies and financial institutions while getting themeasure of future development of their cooperation and taking into
account the relationship with the current bank agency service
system.
- To develop regulatory and system environment promoting
innovation, the Government will provide new legal status tosettlement agencies which have high technological capabilities andreliability in credit card business and take necessary legal measures
to improve convenience of internet transactions by leveraging their
original IT technologies.
j) Promotion of big data utilization through the spread of cashlesstransactions- By accurately understanding the needs of increasingly diversified
domestic consumers and foreign visitors to Japan through utilizationof big data, the Government will aim to contribute to developmentof excellent products and services, provision of attractive tourism,
and further stimulation of consumption by foreign visitors. To thisend, the Government will make the following efforts.
 The Government will promote necessary data standardization
related to credit card settlement and purchasing information
sometime this year.
 As the Act on the Protection of Personal Information which wasrevised last year will come into force, the Government will
promote development of rules concerning data anonymization at7

relevant trade associations in consideration of privacy.
 By using IT (non-contact electronic tags which caninstantaneously read multiple pieces of tag data), the Government
will develop environment to collect and utilize a variety of dataobtained in supply chains.
 The Government will statistically analyze big data, and discuss
its contribution to various statistics and surveys and its politicaluse for the “Regional Economy Society Analyzing System(RESAS)”.
 To promote development of environment where credit cards can beused safely, the Government will encourage smooth implementationof the “action plan” developed by companies related to credit cardtransactions and take necessary legal measures. [Discussed later.](To be detailed in “II-2. System reform towards future
investment”.)k) Realization of IoT-based hospitality services- To realize “Omotenashi (hospitality)” which enables solo foreign
tourists to walk around and enjoy comfortable stay, the Government
will conduct demonstration projects for realizing various advanced
services and settlement environment through utilization of attributeinformation obtained by IoT and cloud technology as well as
cooperation among businesses, and will aim for their practical use
by 2020.
<Related to business fields of C to C: Promotion of sharing economy>- To develop sound sharing economy, new economic activities using
idle properties, based on innovative IT development, theGovernment will establish a council to hear from parties concerned,
and will aim to put together necessary measures this fall. In sodoing, to ensure safety of consumers while promoting innovationand creation of new business, the Government will discuss mutual
evaluation systems between service providers and users andvoluntary development of rules by private organizations in light ofrelated existing laws and regulations, as needed.
ii) Development of environment to support the fourth industrial revolution[1] Development of environment towards promotion of data utilization
For thorough data utilization, a key for Japan to deal with the fourthindustrial revolution, leverage its potential and increase its competitivenessat an accelerated pace, development of appropriate environment is of vital
importance. To this end, the Government will eliminate silos and drive an
integrated rule development effort especially for development of data
platforms which enable cross-business, cross-organizational data collection
and analysis, utilization of personal data, and formation of a safe and sounddata distribution market.

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- With regard to data platforms, the Government will clarify fields forcompetition and cooperation based on Japan’s strengths, and will promote
development of demonstration environment, systems and rules, andinternational standardization efforts so that the public and private sectors
could work together for data collection, and that companies could shareand utilize such data. As well, for creation of a data distribution market,
relevant ministries and agencies will cooperate and smoothly start
discussion on who will have rights and/or responsibilities among those
who exchange data, and clarification of transaction rules, thereby
encouraging prompt subsequent efforts.
- With regard to personal data, the Personal Information Protection
Commission will develop general-purpose guidelines which will apply
across all business fields regarding handling of personal information as
well as necessary rules concerning handling of anonymized information
sometime this year. As well, the relevant ministries and agencies will
work together and discuss identification and scheduling of areas, wheredata utilization is expected in a separate manner and appropriate
environment needs to be developed, based on information obtained
through specific data utilization projects, then will arrive at conclusion by
the end of this year. Based on the enactment of the Act on the
Arrangement of Related Acts to Contribute to Creation of New Industries
and Realization of Revitalized Economy and Society and Rich Lives of
the People through Appropriate and Effective Use of Personal Information
Held by Administrative Organs (Act No. 51 of 2016) (the Act for the
Amendment for the Act on the Protection of Personal Information Held byAdministrative Organs), the Government will provide cooperation to local
governments, if they discuss revision of measures concerning protectionof personal information in future, by providing necessary information tocontribute to facilitating their deliberation.
- To promote safe and secure utilization of personal data whose traffic ison the rise in the era of IoT and AI, the Government will put together
ideas on mechanism of personal involvement in data distribution, soundtransaction market, and structure for individuals to use their own
information for themselves or society by providing it to trusted entities,
from aspects of technology and systems by the end of this year.
- The Government will ensure a necessary system is in place for the
Personal Information Protection Commission, which was launched in
January this year, from the perspectives of promotion of data utilizationand development of environment for international data distribution.
[2] Promotion of speedy business renewala) Promotion of business renewal and facilitation of business reconstruction
in light of the fourth industrial revolution- As business models change increasingly faster, the Government will
discuss necessary measures to accelerate research and development toproduce innovation, strategic investment in tangible and intangible assets
to win global competitions, and business reconstruction based on9management strategies even faster by looking into the future, and will
come to a conclusion including whether institutional measures arenecessary by the end of this year. Then, the Government will takenecessary measures with possibilities of introducing related bills early on,
say, in the next ordinary session of the Diet.
b) Development of financial and capital markets compatible with the fourthindustrial revolution- In the era of the fourth industrial revolution where sources of added valuechange intermittently depending on how data are used, open innovationand smooth replacement of business fields are gaining their importance.
Under such circumstances, the Government will promote constructive
dialogue between companies and investors/ shareholders in order tosecure fairness and transparency in financial and capital markets, promote
supply of growth funds, and make sure that the management and board of
directors of companies could effectively fulfill their roles andresponsibilities by successfully dealing with a change in management
environment. As well, while discussing how to revitalize equity
investment to promote innovation, the Government will encourage
implementation of high-quality financial intermediation functions which
will contribute to solutions of industries and businesses through financing
based on business assessment and supporting core business. [Discussed
later.] (To be detailed in “II-2. System reform towards future
investment”.)c) Promotion of strategies for intellectual property and standardization to
win through in the fourth industrial revolution- With easier collection, processing, and transmission of information at lesscost, increasingly diversified use of information including copyrighted
materials, and the advent of creation by AI, new challenges in systems
have surfaced, that is, how intellectual property including copyrightshould be protected. By analyzing such challenges, the Government will
aim for an early legal reform, possibly in the next ordinary session of theDiet, on provisions of the Copyright Act which flexibly limit rights torealize a next-generation intellectual property system compatible with thefourth industrial revolution, for which the Government will start detailed
discussion on resulting effects and impact and take necessary measures.
[Discussed later.] (To be detailed in “III-1. Enhancement of capabilities tocreate innovation ventures”.)- In the fields of social systems related to the fourth generation industrial
revolution, and advanced technology where international technologicalcompetition grows increasingly severe, the Government will further
promote international standardization of the country’s excellent
technology in light of increased efforts by its counterparts in Europe, US,
China, and South Korea for the same purpose. As well, the Government
will take the initiative in developing a system to promote international
standardization by the end of this year. The new system will take on

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planning and process management concerning projects for National
Research and Development Agencies including the National Institute ofAdvanced Industrial Science and Technology (AIST). [Discussed later.](To be detailed in “III-1. Enhancement of capabilities to create innovation
ventures”.)d) Accurate assessment of actual condition and strict law enforcement toensure fair and free competition- As the fourth generation industrial revolution progresses where advancein digital technology and the advent of new business models are
drastically changing industrial structure including market power, relevant
ministries and agencies will work together and conduct a survey to learn
the realities of transactions in the digital market in order to ensure fair andfree competitive environment in the market and promote innovation. As
well, the Government will enforce relevant laws strictly and properly if it
finds that businesses with market power are violating the Antimonopoly
Act by inspecting whether they are not preventing fair and freecompetition in the digital market in light of change in economic
environment and the market.
[3] Establishment of a system to develop and train human resources
supporting the fourth industrial revolution- Based on the “General initiatives for developing human resources gearedat the fourth industrial revolution” announced on April 19 this year, theGovernment will create a system to develop and train human resources
supporting the fourth industrial revolution, which has three layers: 1)
development of top-level IT talent, 2) development of data scientists atuniversities, graduate schools, and technical colleges, and 3) IT training atelementary and secondary education to develop information literacy
including programing capabilities. [Discussed later.] (To be detailed in“III-2. Development and securing of human resources through a multifaceted approach”.)- Based on the outlook of industry structure and employment structure
produced by the fourth industrial revolution, the Government will hold ameeting of the “Council on Promotion of Human Resource Development
for the Fourth Industrial Revolution” which examines skills and jobs/
types of work related to IT and data required in each industry, and uses theresult for implementation of industry policy, employment/ labor policy,
and education policy, during this year. To this end, the Government will
ask for participation in the Council and cooperation for implementation of
specific measures from a variety of organizations, including relevant
ministries and agencies, industrial circles, labor circles, and educational
institutions, and will carry out specific consideration. [Discussed later.](To be detailed in “III-2. Development and securing of human resources
through a multi-faceted approach”.)

11[4] Influence of the fourth industrial revolution through promotion of
IT/ robot utilization at mid-ranking companies and SMEs
- To accelerate investment by mid-ranking companies and SMEs in robots
especially in the fields of manufacturing and services, the Government
will realize cost reduction of more than 20% for small general-purpose
robots and their installation, thereby accelerating introduction of robots to
mid-ranking companies and SMEs. To this end, the Government will
promote development of platform robots equipped with fundamental
functions commonly exercisable in general tasks and procedures, whileclarifying steps to adopt robots. As well, the Government will double
human resources to support development and introduction of robot-based
systems (system integrators) in five years (from current 15,000 to 30,000
in 2020).
- Coupled with such efforts, the Government will employ specialists of IT,
Kaizen activities, and robot introduction to support more than 10,000 midranking companies and SMEs in the next two years in order to drive thefourth industrial revolution as a nation. In so doing, this year, theGovernment will also launch an effort to develop bases where midranking companies and SMEs can consult “Smart manufacturingassistance group” which supports Kaizen activities on their production
sites and their introduction of IoT and robots.
- In addition, the Government will promote IT investment and labor-saving
investment according to the business condition of each company including
microenterprises’ efforts to develop online sales channels, development of
new products and services by SMEs and microenterprises from utilizationof IoT and big data as well as facilitation of business cooperation acrossdifferent industries.
[5] Structural change of IT industry to deal with the fourth industrial
revolution- Many companies in Japan’s IT industry are oriented to contractdevelopment and operation of a business system, and still mired in one
hundred percent subcontracting and multi-level subcontracting. In
addition, IT engineers are mainly evaluated on work hours, thereby forced
into long work hours, where it is hard to expect development of creativeand promising talent. To get the IT industry out of such circumstances, theGovernment will set up a conference where people from Ministry of
Economy, Trade and Industry [METI], Ministry of Health, Labour andWelfare [MHLW], IT industry associations, employer's associations, andlabor unions to meet and share the actual condition of multi-level
subcontracting structure and long work hours. The Government, then, will
discuss improvement plans and make request to industrial circles
accordingly. As well, the Government will improve skill standards toevaluate IT professionals compatible with the fourth industrial revolution.

12[6] Ensuring of cybersecurity and IT utilizationa) Ensuring of cybersecurity
In the era of IoT where everything will be connected to the internet,
development of measures for cybersecurity is not “cost” but “investment
in future” to support people’s lives and smooth economic activities bybusinesses. From this perspective, the Government will promote efforts toturn cybersecurity into a growth industry. At the same time, theGovernment will drive efforts for development of human resources,
measures for governmental agencies and key infrastructures, IoT-systemmeasures, research and development, establishment of international rulesin public-private partnership based on the Cyber Security Strategy(decided by the Cabinet on September 4, 2015) and the revised Basic Act
on Cybersecurity enacted this year.
- With regard to human resources development, the Government willproceed with discussion in accordance with the “Comprehensive policy
for enhancing cybersecurity human resources development” (decided by
the Cyber Security Strategy Headquarters on March 31, 2016). In sodoing, the Government will stimulate demand for human resources
through developing intermediary talent required for promotion of
corporate security measures, and raising awareness at the managementlevel. As well, the Government will promote efforts to supply humanresources through cooperation among industry, academia, and government
in providing education and exercise, and establishing certification. The
efforts include establishing a clear vision defining talent required in future
and aim for more than 30,000 registered IT Security Support Providers by
2020. The Government will discuss efforts to link such measures fordemand and supply of human resources to create a virtuous cycle, andincorporate them into the human resources development program of thenext phase which is to be developed and announced sometime this year.
As well, the Government will work towards radical enhancement ofcontrol tower functions of relevant ministries and agencies, ensuring anddevelopment of bridging security/ IT talent (department-trained experts),
and reinforcement of human resources at relevant agencies.
- With regard to protection of key infrastructures, the Government will
follow the “Roadmap towards revision of the third action plan concerning
data security measures of key infrastructures” (decided by the Cyber
Security Strategy Headquarters on March 31, 2016), and discuss “Systemenhancement against cyber-attacks ,” which covers enhancement of the
management’s efforts, information sharing, and internal control, as well as
ensuring of security concerning operation of the My Number system;“Revision of protected area concerning key infrastructures,” including
revision of the range of information shared; and “Enhancement ofcooperation among a variety of parties concerned,” including humanresource development through international cooperation, and partnershipamong industry, academia, and government. The Government, then, willreach a conclusion on revision of action plans by the end of this fiscal
year. Still more, the Government will appropriately handle issues which

13need to be addressed immediately without waiting for the revision ofaction plans. In particular, the Government will establish a system todevelop security human resources and technology in key infrastructuresand industries through cooperation among industry, academia, andgovernment sometime next year in light of the 2020 Tokyo Olympic andParalympic Games.
b) Promotion of IT and the My Number system utilization(Promotion of IT utilization in administrative procedures and private
sector transactions)- With regard to the “complete enumeration of all procedures based on laws
and regulations” (so-called complete survey), the National Strategy Officeof Information and Communication Technology, Cabinet Secretariat(hereinafter, referred to as “ICT National Strategy Office”) will release
surveys and the state of response of relevant ministries and agencies inJune this year, and then will study the results while the ministries andagencies will discuss future policies.
Based on the state of development of plans by relevant ministries andagencies to review administrative procedures and systems in accordancewith the “Basic guidelines concerning IT utilization” (decided by the IT
Strategic Headquarters on June 30, 2015), the ICT National Strategy
Office will work with them to identify procedures deemed appropriate forearlier IT introduction than others from the perspective of private sector
needs, decide the dates of introduction, and organize necessary legal andother measures by the end of this year.
For other administrative procedures as well, the ICT National Strategy
Office will interview relevant ministries and agencies to find out
necessary conditions for introduction of IT utilization, and inspect thembased on technological innovation and private sector needs. The ministries
and agencies, then, will incorporate the inspection results into the review
plans which are to be developed by the end of December every year.
(Further promotion of a shift to IT and BRP in the central and local governments)- With regard to operations and systems of the national administrative
agencies, the Government will work on reducing cost of information
system operation, and improving administrative services and operation
efficiency to increase public convenience and public value. To this end,
the Government will promote a shift to online digital service systems in
the fields of Hello Work (public job placement offices), pension, nationaltax, registration and incorporation. As well, by taking advantage of theintroduction of corporate ID numbers, the Government will promote
cross-ministerial efforts to develop business-friendly environment. For
this purpose, the Government will review procedures to realize simpler
and faster services by removing the need of attaching certificate ofregistered matters which are currently required in various procedures

14when starting a business, as well as promoting use of online procedures.
The new procedures will be included in the registration information
system at the time of its renewal in FY2018.
- To make use of knowledge gained from past efforts by one local
government in activities of others, the Government will discuss a new
system to provide opportunities where central and local governments can
exchange information and views, and will put together an idea by the endof this fiscal year from the perspective of promoting local governments’shift to IT and implementation of BPR.
- The Government will organize and classify results of deliberation andanalysis of actual cases of “local government cloud computing services”,
and provide the outcome and advice to other local governments tocontribute to their efforts in introducing cloud computing services infuture. Through such efforts, the Government will aim to double thenumber of municipalities which have introduced cloud computing
services, especially, “local government cloud computing services” toapproximately 1,000 by the next fiscal year.
- The Government will aim to reduce the cost of relevant information
systems in organizations that have not yet implemented local government
cloud computing services by accelerating efforts to introduce thoseservices while improving the sharing and standardization of operations. In
addition, even if local government organizations have already
implemented those services, efforts will be made to further improve thequality of local government cloud computing services such as byexpanding the range of cloud operations through further improving thesharing and standardization of operations. As the national level “Roadmap
for Reform of Government Information Systems” progresses, reform of
local government information systems will also be promoted. Throughsuch efforts, the Government will aim to reduce operation cost of
information systems of local governments (by 30%).
(Promoting use of My Number cards and My Number Portal Sites)
With regard to the My Number system, launched this January, theGovernment will give priority to winning the public trust through steadyissuance of My Number cards. The Government will also prepare for fullscale operation of My Number Portal Sites scheduled to be launched in Julynext year while discussing ways to promote use of My Number cards andMy Number Portal Sites aimed at improving convenience of people’s lives.
- To lighten the burden of childcare, the Government will realize a one-stop
online service based on the My Number system and My Number cards forregistration related to pregnancy, childbirth, childcare, etc. as early as Julynext year. The service will be available for those who wish to use it andwill save them from having to visit or send documents to local
governments. To this end, the Government will discuss realization of theservice while taking it account requirements of existing laws.
- The Government will deliberate on how information should be shared toassess the state of evacuation more effectively by using the My Number

15

system and My Number cards, at the time of a natural disaster orfollowing assistance for recovery of sufferers’ livelihood, and will
establish relevant policies by the end of this fiscal year.
- The Government will carry out consideration on various accessing
methods and institutional measures to realize certification of authority intransactions between corporations based on the public personalauthentication service in order to make it possible for persons delegatedby the presidents of companies to draw up and submit electronic
contracts, etc. by using My Number cards without documentation or
meeting face-to-face. The Government, then, will submit relevant bills to
the Diet as early as possible. Coupled with this, the Government will put
into practice simplified procurement procedures based on My Number
cards and corporate ID numbers from this fiscal year.
- The Government will make efforts to reduce cost concerning collection of
corporation-related information by using corporate ID numbers, simplify
various procedures for tax services and social security required whenstarting a business, and revitalize private businesses and makeadministrative affairs more efficient through implementation of an online
one-stop procedure. Coupled with this, the Government will start making
corporate information accompanied by corporate ID numbers accessible
from January this year and launch “Corporation Portal (tentative name)”for operation next January.
- The Government will start deliberation on the following items including
their pros and cons, and will put them into practice beginning from
whatever is ready: continued use of an electronic certificate for a user
certificate after one has moved out of Japan; increased information printed
on the surface of a card including one’s maiden name; utilization of My
Number cards’ My Key part (including public personal authentication
functions) for access to public facilities, and effective and efficient use of
local governments’ point systems based on local governments’ cloudcomputing services; and promotion of application of such points to local
shopping streets.
c) Promotion of open data in central and local governments
To realize open data for solutions, the Government will make efforts
based on “Open Data 2.0” (decided by the IT Strategic Headquarters
on May 20, 2016) while taking into account enhancement of Japan’s
industrial competitiveness and improvement of convenience ofpeople’s living. Around this summer, the Government will establish
specific targets for the period of intensive initiatives by 2020 infocused areas including realization of the Dynamic Engagement of All
Citizens. In so doing, the Government will work to increase machinereadable forms of data and content in other languages. Coupled with
this, the Government will promote voluntary efforts by local
governments based on their respective local characteristics as well as
efforts in areas where they can work with private companies such as
disaster prevention.

16

[7] Development of information and communication environment tosupport the fourth generation industrial revolutiona) Promotion of competition in the field of mobile communications- Based on the rule improvement on connection of mobile communication
networks in the revised Telecommunications Business Act, enacted lastyear, the Government will improve competition environment in themobile market by working toward liberalization of various functions
including member management functions and popularization of MVNO
by promoting discussion among companies concerning further
enhancement of convenience of MVNO services. As well, theGovernment will promote foreign visitors’ use of SIM cards issued inJapan and improve user environment in the mobile market.
b) Advance in the information and communication infrastructure andsecuring of frequency bands to offer IoT services- To advance networks for development of the information andcommunication infrastructure by 2020 to support data traffic in the era of
IoT, the Government will conduct development and demonstration
experiments in the next fiscal year to put optimum control technology into
practical use to realize fast and effective connection of a huge number of
IoT devices to networks by leveraging software and virtual technology. As
well, the Government will discuss clarification of skills required for
network operation and management based on these technologies, and how
relevant certification should be. In addition, the Government will promote
decentralization of data centers and research and development towards
realization of ad hoc wireless networks. As well, the Government willdevelop systems required for introduction of exclusive numbers for M2M
services, etc. to advance mobile networks sometime this year while
making inspection every year to find out the progress of major mobile
phone carriers’ efforts to launch IPv6 services for smartphone users by theend of next year.
- In order to deal with new needs created by IoT and the Tokyo Olympic
and Paralympic Games, the Government will promote frequency
reallocation implementation and frequency sharing by multiple wirelesssystems as well as research, development, and tests for technologies to use
frequency in an advanced and effective manner, and will secure frequency
bands accordingly. In addition, based on the results of research anddevelopment, the Government will carry out advanced implementation ofcomprehensive demonstration of the fifth generation of mobile
telecommunications technology (5G) from next fiscal year in places
including provincial cities while preparing systems including developmentof technology standards aimed at a service launch around 2020.
- In order to realize Wi-Fi environment which is easy for foreign visitors to
use at the time of travelling and a natural disaster, the Government will
promote development of free Wi-Fi environment in priority locations inmajor sightseeing and disaster prevention bases (estimated 29,000

17locations (*1)) by 2020 based on the national improvement project to be
developed by the end of this year (*2). As well, with the “Council for
promoting the development of free public wireless LAN,” theGovernment will promote effective utilization of existing Wi-Fi accesspoints by 2018, thereby developing systems of authentication cooperation
to enable seamless Wi-Fi connection across different carriers in more than
200,000 locations.
(*1 Number of locations is subject to further examination in future.)(*2 The improvement project will be revised every fiscal year.)c) Promotion of 4K and 8K
Aiming for approximately 50% of households in the country to watch
through 4K/8K in 2020, the Government will promote thespecifications by starting practical satellite broadcast based on them in
2018.

18

2. Toward a world leading healthcare country(1) Progress in achieving KPIs
< KPI> Extend the nation's healthy life expectancy by one year or moreby 2020.
[70.42 years old for males and 73.62 years old for females(2010)]⇒ 2013: 71.19 years old for males and 74.21 years old for females<KPI> By 2020, reduce the number of citizens with metabolic syndrome(those subject to specific health guidance) by 25% from FY2008[14 million (FY2008)].
⇒ FY2013: Down by approx. 16.0% from FY2008<KPI> Eliminate the assessment lag of pharmaceuticals and medical
devices to “zero” by 2020.
[Pharmaceuticals: 1 month, medical devices: 2 months (inFY2011)]⇒ FY2013: Drugs 0.1 year, medical devices 0 year(2) Specific new measures to be taken
As the fundamental development of system design for health andpreventive incentives for individuals, insurers, and employers progresses,
new business is developing for health and disease prevention. The
Government will make new efforts to lead this development to changing
behavior of individuals for health enhancement as well as establishment ofsustainable business models. In addition, the Government will not only aim
for promotion of health by services outside public insurance, but, byleveraging technological innovation including ICT, robots, AI, and genome
analysis, improvement of quality and productivity of medical and nursing
services, and quality of people’s lives, development and commercializationof innovative medical supplies and devices, and realization of the world
leading healthcare country, thereby penetrating into the global market.
i) Promotion of use of services outside public insurance[1] Development of frameworks involving medical and nursing service
providers
The Government will develop frameworks where people involved in
medical and nursing services and private businesses work together toprovide services so that services outside public insurance could lead to
specific change in individuals’ behavior including lifestyle improvement
through following health checkups and involvement of doctors, pharmacists,public health nurses, and national registered dietitians, and that services forcare prevention and assisted living outside public insurance could be utilized
as part of integrated communitycare systems. To this end, under the
Headquarters for Healthcare Policy, METI and MHLW, in cooperation of
medical service providers and private trade associations, will put together
basic ideas for development of such frameworks. At the same time, from19

relevant fields, the Government will identify fields where private businesses
are expected to make substantial contribution while developing guidelines
declaring joint development of sustainable models by the end of this fiscal
year. Upon development of the guidelines, in order to facilitate local efforts,
the Government will put together the ideas on, for example, the appropriate
division of roles of private businesses, insurers, local governments, andmedical institutions, in cases where seamless services need to be provided
for those who have not undergone health checkups at the Next-Generation
Healthcare Industry Council in cooperation with those concerned. Based on
the guidelines, the Government will use local versions of the NextGeneration Health Care Industry Council and conduct demonstration
projects for establishment of a model case from next fiscal year. The model
case, where medical and nursing service providers and service providers
outside public insurance work together in the same community to provide
services, will be rolled out to other regions.
[2] Creation, development, and visualization of a market for non-insured
services to support nursing care
The Government will create and develop a market for services notcovered by insurance in the field of nursing care such as prevention ofnursing care and dementia, assisted living and watching, and nursing meals,
thereby providing the elderly more options which help them continue theirlifestyles in their communities. In order to make sure that users, theirfamilies, local governments, care managers, and other parties concerned canappropriately access information on various services available in theircommunity, the Government will supportlocal governments to promote theirefforts to hold information and trial sessions on local non-insured services
for care managers and the elderly in cooperation with the Chambers ofCommerce and Industry and others. In addition, the Government will takeadvantage of networks of medical and nursing service providers and makeefforts for spreading nursing food sometime this fiscal year.
As well, to help local governments and private businesses work together
in their communities, the Government will use “Case studies of services
outside public nursing insurance towards development of integrated
community care systems (Guidebook for utilization of non-insured
services)” (developed by MHLW, METI, and the Ministry of Agriculture,
Forestry and Fisheries on March 31, 2016), thereby spreading knowhow
while promoting to local governments the importance of utilizing private
businesses as service providers.
[3] Development of a market for high-quality services based on evidence
To grow sound healthcare industry, the Government will develop systems
to weed out products and services of a low evidence level from the market.
With regard to healthcare services including exercise, the Government will
promote certification systems for active leisure programs and health tourism
while working together with public research institutions to start discussing
ideal forms of data collection, accumulation, and evaluation contributing to20

ensuring of service equality in order to develop the industry based on
objective evidence. The Government then will start making specific efforts
accordingly sometime next fiscal year and publicize the results. As for thehealth-related food market, the Government will build foundations to utilize
big data covering food ingredients and information on dietary habits, thereby
helping development of dietary support services according to individuals’
lifestyles.
With regard to measures to make use of efforts in these fields in acomprehensive manner in the field of healthcare, the Government will
discuss systems (for example a database of healthcare services on
websites) where healthcare service providers register their information sothat users could obtain information on service quality. The results ofdiscussion will be developed into policies by the Next-Generation HealthCare Industry Council by summer next year.
[4] Development of environment for voluntary creation of a new industry ofextending healthy life expectancy
The Government will develop environment to facilitate sustainable andvoluntary creation of an industry of extending healthy life expectancy. For
this purpose, the Government will use the System to Remove Gray Zone
Area of the Industrial Competitiveness Enhancement Act and clarify thescope of relevant laws’ application in the fields of healthcare and medical
services while organizing and publicizing cases of removal of gray zone
area, in consideration of safety and public health, to be used as referenceby new businesses expected to face the same issues. As well, theGovernment will work with the Regional Economy Vitalization
Corporation of Japan (REVIC), private trade associations, and otherorganizations and event organizers, and organically connect supply offunds (Local Healthcare Industry Support Funds, etc.) required to create
new businesses, supply of human resources to support establishment ofbusiness, and public commendation of excellent cases thereby creating an
ecosystem in the field of healthcare. In addition, the Government will
promote creation of business based on local resources such as food/agriculture, tourism, and sports while carrying out consideration for
promotion of discovery of causes of diseases peculiar to seniors,
fundamental research into aging control, and implementation of social
impact bonds to encourage local governments’ efforts to develop an
industry of extending healthy life expectancy.
[5] Further enhanced efforts for health and productivity management anddata health plans through strengthening insurers’ functions
The Government will enhance efforts of companies and insurers forhealthcare and disease prevention through health and productivity
management and data health plans. With regard to health and productivity
management, the Government will continue the Health & Productivity
Stock Selection for quality improvement and the spread of the idea, andreview the selection method while analyzing and studying the relationship21

between efforts for health and productivity management in individualcompanies and their business performance from the perspective of
business administration studies sometime this fiscal year. As well, through
Nippon Kenko Kaigi (Japan Health Council), the Government will aim toincrease the number of companies implementing health and productivity
management to 500 by 2020. For SMEs, the Government will launch acertification system for excellent enterprises implementing health andproductivity management this fall while discussing a new system incooperation with private businesses sometime this fiscal year to provide
incentives to certified companies in financial and labor markets. In
addition, the Government will provide knowhow through efforts to spread
Advisors for Health and Productivity Management.
As well, to accelerate national expansion of data health plans, theGovernment will help insurers with data collection/ analysis, andimplementation of joint health guidance programs so that insurers could
obtain sufficient volume of data to fully leverage their functions whileaiming to enhance their functions through utilizing ICT and big data basedon discussion on how examination and payment agencies should be in theera of ICT. As well, with regard to insurers’ efforts on data health plans, tohelp them use private healthcare service providers and make effective
efforts for healthcare and disease prevention of the insured, theGovernment will use the Private Business Utilization Working Group of
MHLW to work toward increased utilization of private businesses byassessing the current condition and sorting problems, will reach someconclusion by the end of this fiscal year on specific measures such assorting matters requiring attention when insurers choose private
businesses, developing efficient methods to choose a company, andcoming up with the way information should be disclosed to improve
quality of companies, and will start implementing such measures fromnext fiscal year. In addition, the Government will roll out the “Trade Fair
for Data health/ Preventive Healthcare Service,” held for the first time last
fiscal year, to multiple cities across the country this fiscal year, thereby
accelerating and expanding its efforts to match insurers/ local
governments and private businesses.
ii) Improvement of quality and productivity of nursing care by using
technology such as robots and sensors
While working towards halving documents including forms required byadministrative services, the Government will further promote its efforts to
support development of easy-to-use robots catering to on-site needs and to
introduce technology such as robots and sensors in the nursing site. As well,to collect and analyze outcome data on improved productivity of nursing
sites due to introduction of robots, etc., the Government will decide on fields
for demonstration projects quickly, and put them into commercial use fromthis fiscal year. Based on the results of data collection and analysis, theGovernment will carry out discussion on institutional policies to provide
appropriate evaluation to nursing services using robots, including discussion

22

on revision of care payments and standards of personnel allocation andfacilities to lighten the burden of frontline nursing care providers, while
taking into account the need of incentives to facilitate on-site innovation andcreativity. The Government, then, will reach a conclusion sometime next
fiscal year.
As well, the Government will promote standardization of data related tonursing services, operation analysis/ standardization of nursing records byusing ICT, spread of appropriate care management methods, and evaluationof service quality.
Through these efforts, the Government will promote improvement of
nursing care services and enhanced service quality by encouraging
appropriate nursing services which contribute to support for independence ofthe elderly, while aiming to improve productivity of nursing care thereby,
lightening the burden of care workers.
iii) Thorough utilization of ICT in the fields of medical and nursing services[1] Introduction of ID in the field of medical services
Based on the “Report by the Study Group concerning Utilization of the
ID Number System in Fields of Medical Services, etc.” (summarized by
the same Study Group on December 10, 2015), with regard to online
qualification confirmation of medical insurance, and introduction of an ID
number system in medical services, etc., the Government will discussspecific systems and actual practice sometime this fiscal year andimplement steady system development from next fiscal year, with the aimof launching gradual operation and full-fledged operation of the systemfrom FY2018 and FY2020, respectively. In so doing, the Government will
promote development while ensuring that introduction will be made theway the public feels safe and convenient by utilizing infrastructure foronline qualification confirmation such as public personal authenticationand My Number cards. At the same time, the Government will promptly
carry out discussion from the perspective of ensuring appropriate
operation of publicly funded medical treatment, and take necessary
measures as early as possible. In addition, the Government will promote
efforts for thorough digitization and necessary standardization of data in
the field of medical services.
[2] Utilization of big data for promotion of innovation, and application
to the medical front and policies.
With regard to a national database related to the medical service field,
the Government will steadily make efforts for long-term tracking ofpatients’ data, coordination between databases of the Project for
infrastructural development of Medical Information Database Network(MID-NET) and the Project for development of networks for collection ofpediatric and pharmaceutical information, and promotion of private use
thereof in accordance with the schedule summarized in the “Program for
Utilizing Data in Health Care and Similar Fields” (developed by the NextGeneration Medical ICT Infrastructure Council on March 30, 2016).

23

As well, the Government will establish the “Agency Organization(tentative name),” new foundations to widely collect treatment andcheckup data, and securely manage and anonymize them for safe use inorder to promote research and development for drug design and treatment
based on data from the medical service field while taking into account therelationship with existing laws. To this end, the Government will carry out
discussion on systems concerning the “Agency Organization (tentativename)” at the Next-Generation Medical ICT Infrastructure Council, theresults of which will be reflected in necessary legal measures to be
implemented next year. In so doing, the Government will make sure that
relevant ministries and agencies work together and discuss to create asystem which both medical service providers and patients find beneficial,for example, a system to realize support for evidence-based consultationin the medical front by utilizing an enormous amount of data collected by
the “Agency Organization (tentative name).”In addition, the Government will use the Round Table for ICT
Utilization Promotion in the Fields of Health and Medical Services todeliberate this fiscal year on ideal common infrastructures and platforms
and how to realize them for medical information of next generation, where
frontline workers in the medical service field will play a key role indeveloping an autonomous database valuable to patients, the public, andthe medical front, in order to make the most of these infrastructures whileaiming to provide patient- and the public-oriented medical services basedon ICT, realize sustainable medical systems, conduct joint research anddevelopment, and create new services by academy, industry, andgovernment. The Government, then, will take necessary measures through
MHLW, etc.
[3] Integral use of individuals’ medical- and health-related information
As new forms of information collection through wearable computers
are available, advancing the ways medical- and health-related data arecollected and managed, the Government will develop necessary
environment in anticipation of creation of a new market for services
including those for health management taking advantage of creativity ofthe private sectors. In order to realize provision of “individualized
healthcare services” which cater to the needs of each single person, theGovernment will start by the end of this fiscal year a demonstration
project which, under the consent of individuals, collects and analyzes
medical practitioners’ receipts for health insurance claim, and medical
checkup information held by insurers and companies as well as health data
which can be obtained regularly through wearable terminals, etc., andprovides individual healthcare services. At the same time, the Government
will roll out this project to SMEs and communities. As for reform toenhance medical insurers’ incentives for preventive healthcare and healthmanagement, the Government will design it so that incentives would begiven to preventive healthcare and health management based on ICT
including efforts for the above demonstration project. As well, to develop24

a system called Personal Health Record (PHR) to enable patientsthemselves to obtain their medical information over time in their life, theGovernment will take into account discussion at the Next-Generation
Medical ICT Infrastructure Council and start a research into smooth data
distribution and development of business operation models sometime thisfiscal year. At the same time, to ensure that efforts to provide the various
health management services will contribute to promotion of people’s
health and better life quality and will see sound development, the relevant
ministries will carry out necessary discussion on mutual coordination ofefforts and rules to be established under the direction of the Headquartersfor Healthcare Policy.
To expand the regional medical information sharing network across thecountry, a goal to be achieved by FY2018, the Government will provide
financial support for network creation in order to specialize andcoordinate sick bed functions via the Fund for Comprehensive Securing ofRegional Medical and Nursing Care, and utilize evaluation of ICT-based
information sharing in remuneration for medical services while providing
information on systems for developing mutually accessible networks andrelated knowhow sometime this fiscal year. In addition, the Government
will discuss this fiscal year on development of a system to enable theseverely mentally and physically handicapped, who highly need medicalcare, to receive reliable emergency medical care wherever they are in
Japan.
iv) Development and commercialization of high-quality medical supplies andequipment originated in Japan, capture of a global market, andinternational contribution[1] Promotion of research and development in the field of medical services
Through the Japan Agency for Medical Research and Development(AMED), launched on April 1 last year, the Government will provide
integral management and support for seamless research from fundamental
research to practical implementation, thereby promoting research anddevelopment to create Japan’s original and innovative medical supplies
and equipment. To be more specific, efforts will be accelerated andfocused in each field including creation of medical supplies, developmentof medical equipment, bases for creating innovative medical technologies,
regenerative medicine, personalized genome medical care, cancer, psychoneurologic diseases, emerging and re-emerging infectious diseases, andintractable diseases. For emerging and re-emerging infectious diseases, theGovernment will promote development of new vaccines, antimicrobial
agents, and antiviral agents. As well, the Government will develop legal
frameworks related to clinical research, and enhance systems of thePharmaceuticals and Medical Devices Agency (PMDA) while promoting
high-quality clinical research and tests of world standards.
In so doing, for a smoother handover of academic drug discovery tocompanies for development, the Government needs to enhance its support
functions for development of new drugs based on companies’ strategies.

25More specifically, the Government will promote development of a system
to provide private-public joint support according to the development phaseof drug discovery seeds and a strategic system to grant intellectual
property rights.
[2] Promotion of innovation through development of clinical innovation
networks
The Government will promote development of “Clinical Innovation
Networks,” creating a network of disease registration systems developedby the National Research Center for Advanced and Specialized Medical
Care (NC) and academic societies, thereby improving environment for
efficient clinical development.
As well, to realize effective medical treatment taking advantage ofadvanced medical technique through early detection and treatment ofdiseases, individualized medical treatment taking into account differencesamong individual patients, and state-of-the-art technology such as
regenerative medicine, the Government will provide support for systemdevelopment to facilitate consultation based on AI, IoT , and highdefinition video technology realized by collaboration of medical
institutions, companies, research institutions, etc., and will develop
technique and systems to evaluate performance and safety, a key to suchtechnologies upon implementation. In so doing, the Government will
publicize the “Guidance related to application for approval of medical
equipment programs” (announced on March 31 this year), which will
apply to medical diagnosis support systems based on AI as well, thereby
encouraging practical implementation while providing support fordevelopment of manufacturing technology for regenerative, cellulartherapy and gene therapy products, and biopharmaceuticals, as well as
early diagnosis technology.
In addition, the Pharmaceuticals and Medical Devices Agency (PMDA)
will provide enhanced support for promotion of practical implementation
through pharmaceutical affairs strategic consultation, and start making
experimental efforts from this fiscal year for development of new indicesand methods for drug efficacy assessment, based on data analysis using
big data including results of clinical tests, establishment of guidelines, anddevelopment by companies based on the instructions. Then, the PMDA
will establish the Regulatory Science Center in 2018 to go into full-scale
efforts. Based on such efforts, the PMDA will aim to enhance safetymeasures through analysis of consultation data of MID-NET and disease
registration information of NC, etc., and promotion of MID-NET use atcompanies and medical institutions.
[3] Realization of genome medical care with secured confidence, etc.
In the fields of cancer, intractable diseases, and rare diseases wherepractical application of genomic information to medical treatment isunderway, the Government will promote development of a system toprovide genome medical care involving medical institutions which have26

advanced technologies related to genomic tests/ analyses, and reading,while discussing solutions for challenge of promoting new products andtechnologies using genome data for clinical treatment.
As well, to realize application of genetic examination business for
consumers to promotion of health, the Government will endeavor forsound development of the business, by conducting quality and precision
management on genetic tests, providing information based on scientificevidence, protecting personal information, and so forth.
[4] Development of an ecosystem involving companies from other industries
and venture startups
To develop and commercialize high-quality medical equipment cateringto the needs of the medical front, the Government will support entrants
from other industries, and their development of product concepts,
intellectual property strategies, human resources development, and sales
channel development by making use of private funds while strengthening
networks of the medical front, medical equipment developers, entrants
from other industries, and local support agencies (networks to support
medical equipment development). As well, the Government will work
together with the medical frontline workers, and strengthen systems topick up and analyze their needs effectively and efficiently. In so doing, toexpand and develop local clusters, the Government will enhance its efforts
to develop human resources, including those in SMEs working on
innovation, who can create medical equipment while considering an exit
strategy including insurance application and international expansion.
In addition, at an advisory panel related to promotion of ventures
aiming for medical innovation, with regard to support for medical
ventures from future visions and fundamental research to application forpharmaceutical approvals, the Government will discuss enhancement ofresearch support for ventures, support for securing of human resources,enhancement of consultation support on pharmaceutical affairs and prices,and ensuring of venture support systems by MHLW, etc. Based on
proposals obtained in the discussion, the Government will take support
measures for medical ventures, thereby accelerating practicalimplementation of seeds for high-quality medical supplies discovered byuniversities and research institutions. By making such efforts, theGovernment will promote support according to the development phase of
drug discovery seeds and technologies and accelerate innovation.
Through these efforts, the Government will develop an ecosystem fordevelopment of high-quality medical supplies and equipment, andcontribute to extension of healthy life expectancy and improvement of
medical treatment quality.
[5] Capture of a global market, and international contribution
To promote medical and nursing care and medical equipment originatedin Japan in a global market, the Government will encourage developmentof medical equipment catering to the needs of countries and regions where27

it is used in terms of performance and a price level. As well, theGovernment will aim to make Japan the first country to propose apractical evaluation method concerning medical equipment, and promote
it to be accepted and used as an international standard.
With regard to promotion of “outbound” international expansion among
all the international development of medical and nursing care, theGovernment will utilize the Medical Excellence JAPAN (MEJ) and theJapan External Trade Organization (JETRO) and provide various supports
such as support for establishment of local medical institutions (Japanesestyle medical bases) operated by Japanese medical institutions overseas,and support for sales channel development and project organization for
effective medical and nursing services which also package humanresources development and system development of individual countries aswell as medical equipment and supplies. To further promote market
development for medical equipment, the Government will promote
development and enhancement of maintenance systems for medical
devices.
With an aim to seize the initiative in rule development concerninginternational health by strengthening cooperation with international
institutions in anticipation of regulatory preparation at various countries,
the Government will work on establishment of a control tower for humanresources strategies which takes charge of developing human resources forinternational health policies. At the same time, the Government will
promote understanding of regulations and systems for Japan’s medical
supplies and equipment through training provided by the Asian Training
Center for Pharmaceuticals and Medical Devices Regulatory Affairs of thePMDA, thereby developing environment for exportation of Japanesesystems to other Asian countries. In addition, through cooperation withvarious international conferences and agencies, the Government will
promote Japan’s systems to the world and work towards other countries’
employment of Japan’s experience, expertise, and technologies when
dealing with health issues.
Based on the “Basic Plan on Strengthening Countermeasures for
Infectious Diseases that Pose a Threat to Global Society” (decided by the
Meeting of the Ministerial Council on the Response to Infectious Diseases
that Pose a Threat to Global Society on February 9, 2016), theGovernment will promote various measures such as developing
frameworks of coordination and response by international agencies at thetime of infectious disease crisis, support for the “Global Fund to Fight
AIDS, Tuberculosis and Malaria” which provides financial assistance tothe World Health Organization (WHO) and developing countries,
establishment of systems to develop and delegate human resources,
implementation of measures to provide medical supplies to developing
countries in a comprehensive and effective manner, enhancement ofsystems and measures to control a crisis of a domestic infectious disease,enhancement of research capabilities and functions concerning infectious
diseases, and international joint research. As well, based on the “National

28

Action Plan on Antimicrobial Resistance (AMR)” (decided by the same
Meeting on April 5, 2016), the Government will establish internationalcommon clinical assessment guidelines concerning drugs for treating
AMR infectious diseases, and discuss measures to promote new drug
development for AMR infectious diseases, which may involve
implementation of new systems, and ways of handling in the field ofanimals. For new drug development including vaccines to deal with
“Neglected Tropical Diseases (NTDs)” in developing countries, theGovernment will provide necessary support by leveraging excellent
research and development capabilities of Japan’s pharmaceutical industry.
In addition, as promotion of “inbound” tourism, the Government will
create necessary environment to provide medical treatment to foreign
visitors to Japan (for example, medical treatment provided to thosevisiting Japan for advance medical treatment as well as tourists).
Through these efforts, the Government will contribute to solutions tolocal challenges including improvement of health and medical standardsof other countries while capturing a global market which is expanding
especially in emerging nations.
v) Realization of “Business Alliances through a New Healthcare Corporation
System”
The bill for “Partial Amendment to the Medical Service Act to Incorporate
the Creation etc. of the ‘Business Alliances through a New Healthcare
Corporation System’” (Act No. 74 of 2015), which enables integrated
management of multiple medical corporations, etc., has passed. Ahead of its
enforcement in April next year, to ensure the system’s easy application, theGovernment will work on development of government and ministerial
ordinance while providing information effectively so that there would be avariety of cases of better medical and nursing service cooperation incommunities, optimum business operation of medical institutions, coordination
with various healthcare services, and enhancement of research anddevelopment foundation for medical supplies and equipment. As well, withregard to spinoff of hospitals which want integral management with otherhospitals but are currently attached to universities, the Government will aim fora smooth start to be made at the same time as the launch of the “Business
Alliances through a New Healthcare Corporation System.” To this end, theGovernment will conduct necessary regulatory reform sometime this year
while making steady preparation in cooperation with relevant parties.

29

3. Promote proactive agriculture, forestry and fishery, as well as
reinforce export(1) Progress in achieving KPIs
<KPI> “Increase the ratio of farmland used by business farmers to 80% in the next 10
years (ending in 2023).” (48.7% as of the end of FY2013)⇒End of FY2015: 52.3%<KPI> “Reduce the cost of rice production by business farmers by 40% in the next 10
years (ending in 2023) compared with the current national average cost,
including through efforts by industry on aspects of materials anddistribution.” (National average cost of rice production in 2011: ¥16,001/60kg)⇒The cost of rice production by business farmers in 2014:
 Individual management* ¥11,558/60kg (28% reduction from ¥16,001/60kg)
 Incorporated organizational management** ¥11,885/60kg (26% reduction
from ¥16,001/60kg)* Among certified farmers, individual management bodies in which agricultural
income per agricultural worker from rice-farming is equivalent to income fromother industries (with the cropping acreage of paddy rice no less than 15 ha)** Incorporated organizational management bodies whose sales amount of rice isthe highest(Average cropping acreage of rice: about 27 ha)<KPI>“Increase the number of corporate farmers four-fold from the 2010 level to
50,000 in the next 10 years (ending in 2023).” (2010: 12,511 corporations)⇒ 2014: 15,300 corporations<KPI> “Expand the market size of agriculture based on collaboration among the
primary, secondary and tertiary industries (“AFFrinnovation (sixth
industrialization)”) to ¥10 trillion in 2020.”⇒FY2014: 5.1 trillion yen*
* Total market size of seven areas which are expected to grow (processing anddirect sale, export, interactions between cities and villages of agriculture, forestry
and fishery etc.); it was compiled as the market size of “AFFrinnovation (sixth
industrialization)” by the Council of Food, Agriculture and Rural Area Policies<KPI> “Increase the number of projects to promote collaboration among the primary,secondary and tertiary industries with regard to dairy farming to 500 by
2020.” (2014: 236 projects)⇒As of the end of April 20115: 284 projects<KPI> “Increase the value of exports of agricultural, forestry and fishery products andfoods to ¥1 trillion yen earlier than 2020, the initial target year.” (2012: ¥449.7
billion)”⇒2015: ¥745.1 billion

30(2) Specific new measures to be taken
To promote growth of community-based industries of agriculture,
forestry and fisheries, their preservation and development as key
industries, thereby improving income of those engaged in this sector, theGovernment has worked on promotion of rice policy reform andagricultural cooperative reform as well as consolidation of farmland
through establishment of the Public Intermediate Organization for
Farmland Consolidation based on the “Japan Revitalization Strategy.” As aresult, an unprecedented scale of operation with more than 100ha offarmland is developing, and the Government needs to accelerate this trend.
As well, “aggressive measures for agriculture, forestry and fisheries
industries” are becoming ever more critical because TPP, which willmaterialize a market of 800 million people, is a huge opportunity to theseindustries.
For this purpose, while steadily implementing reforms included in the“Japan Revitalization Strategy” and measures based on the“Comprehensive Policy Principles Related to TPP” (decided by the TPP
Task Force on November 25, 2015), the Government needs to promotethorough efforts for productivity improvement by increasing sales andreducing a production cost and intermediary margin through collection anduse of excellent expertise from production sites by taking advantage ofcooperation among industrial circles, IT systems and big data.
Accordingly, efforts will be made in the following areas: i) Enhancementof production sites through development of management bodies, ii)
Creation of a value chain through promotion of the “AFFrinnovation (sixth
industrialization)”, iii) Strengthening export capabilities to capture a global
food market, iv) Development of forestry into a growth industry, and v)
Development of fisheries into a growth industry.
i) Enhancement of production sites[1] Strengthening the functions of the Public Corporation for Farmland
Consolidation to Core Farmers through Renting and Subleasing (FarmlandBank)
Last fiscal year’s results (of borrowing and subleasing) of the Public
Corporation for Farmland Consolidation to Core Farmers through Renting andSubleasing (Farmland Bank) tripled from the first year (FY2014). To put the
Corporation on track in all the prefectures, the Government needs to further
promote improvement. To this end, the Government will take following
measures.
- To improve the Corporation’s performance, prefectural governors’
strong leadership is indispensable. Aiming to increase prefectures’
incentives for use of the Corporation, the Government will introduce
a system to give consideration to prefectures with good results invarious measures. To be more specific, the Government willpromptly announce budget items covered by the system and abudget allocation policy according to business performance of the
Corporation. At the same time the Government will take into31

account the Corporation’s business performance and allocate
budget, which is to be allocated after announcement of the
Corporation’s last year business performance, based on the said
allocation policy. With regard to a system for considerate measures
after that, the Government will review budget to be covered andways of allocation as needed while examining effects of allocation.
- To promote discussion for greater farmland liquidity among farmers
in the same community, while releasing farmland information
efficiently, the Government will request the Corporation, etc. todevelop a system of officials by further employing agricultural
corporation owners and business owners, enhance local coordination
activities including more cooperation with land improvement
associations with a track record of expansion of farmland partitions,and agricultural committee members including those who promote
optimization of farmland utilization, publicize measures for tougher
taxation on unused farmland, and utilize measures for lighter
taxation on farmland leased to the Corporation for consolidation
purposes. The Government will find out and publish the status of
implementation accordingly.
- Based on concerns that inheritance of farmland without registration
is partially hindering the use of the Corporation, the Government
will conduct a national survey to assess the situation, and discuss
improvement measures including government-wide promotion ofregistration upon inheritance.
- The Government will further strengthen its development effort for
greater farmland partitions in areas where farmland consolidation isunderway by the Corporation. Through such effort, the Government
will further promote land improvement projects. The Government
will also push forward with the Japanese agricultural direct payment
system while trying to improve profitability of hilly andmountainous areas, which have disadvantageous production
conditions, according to the local characteristics. .
[2] Steady implementation of rice policy reform- Revitalization of paddy field farming competition requires
environment that enables farmers to choose their crops based on
their management decision. For this reason, the Government will
properly implement the process for the reform of rice production
adjustment program, aimed at rice to be produced in 2018. As well,in this process, the Government will review the past policy andexamine a potentuial future policy that will encourage farmers tomake further efforts and achieve self-sustaining management.
- With regard to rice, an KPI has been set up to improve productivityof rice as a staple diet and rice for feed, and the Government will
make sure to achieve it through implementing PDCA cycles. With
regard to feed rice, the Government will research and publish
production cost by this fall as a prerequisite for PDCA cycle

32

implementation while promoting the production cost reduction
manual, which was developed based on progressive approaches, andmaking sure that farmers are well informed on it.
[3] Development and securing of management bodies aiming to improvetheir productivitya) Development of farmers with business capabilities- The Government will provide and enhance learning opportunities
for willing farmers through local governments, universities andprivate institutions so that farmers could study sales, finance,
organizational management, and other necessary subjects for
management, including by taking online courses, while continuing
farming.
b) Enhancement of management bodies- The Government will further promote incorporation of selfemployed farmers while supporting management improvement ofcorporations. To this end, the Government will push for prefectural
efforts to further engage licensed tax accountants, Small andMedium Enterprise Management Consultants, and other business
management professionals in the field of agriculture by holding
networking events to put them in touch with people fromagriculture, and organizing training workshops to promote knowhow
sharing among business management professionals.
- Because it is technically and financially difficult for individual
farming businesses to have their own research and development
divisions, the Government will make sure that research results byuniversities and research organizations will be released the way they
are accessible from farmers, and will establish a system to enable
universities, research organizations, businesses, and farmers to work
together and conduct development of advanced technologies and onsite demonstration based on clear development goals.
c) Securing of next-generation human resources- To encourage the youth to become and remain as professional
farmers in the long run, the Government will review the pastmeasures and discuss new measures for investment in the rising
generation.
- To promote involvement and entry by agriculture-related ventures
providing new technologies and services which will lead to
improvement of farmers’ income, the Government will establish anaward system.
d) Development of a safety net- Regarding the introduction of income insurance for farmers
conducting business management properly, which covers theirwhole agricultural income and functions as their safety net, the33Government will consider its structure and relevant systems (e.g. an
agricultural mutual relief system) while conducting a feasibility
study. Consequently, the Government will take the necessary
legislative action.
- To contribute to securing of employment for people who have given
up farming due to the advent of large-scale farm management, theGovernment will create employment in rural areas by revising the
Act on Promotion of Introduction of Industry into Agricultural
Regions (Act no. 112 of 1971).
[4] Supply of necessary funds for growth- To make it possible for management bodies to smoothly borrowmoney required in their growth stage without having to excessively
rely on a personal guarantee, the Government will start from April
next year inspection and evaluation on the state of implementationof financing based on business assessment, which Japan FinanceCorporation has been working on in earnest since February this year,
and the Government will make necessary improvement.
- Aiming to revitalize agricultural financing by private financial
institutions, the Government will hold workshops for private
financial institutions to promote their learning of agricultural
knowledge and exchange with farmers, while strengthening
cooperation between Japan Finance Corporation and private
financial institutions, thereby promoting transferring of agricultural
financing knowhow. Also, the Government will review theguarantee system so that the credit-guarantee system would be
widely available to farmers when they borrow money from private
financial institutions.
- In order to respond to efforts of motivated agricultural corporations
aiming for development of large-scale operation, an upper limit of
an investment ratio allowed to an investor in an investee will beraised through “Development program for investment in agricultural
corporations,” ,.
[5] Accumulation and utilization of excellent expertise fromproduction sitesa) Cooperation with industrial circles- To improve productivity by leveraging knowledge from outside
agriculture through increased cooperation between agricultural andindustrial circles, the Government will promote joint developmentof cutting-edge model technologies with companies which haveadvanced technologies, and new products in cooperation with local
Chambers of Commerce and Industry and Societies of Commerceand Industry.
- To help agricultural corporations employ people with knowhow andexperience from other industries and apply their knowledge tofurther business development, the Government will work together

34with industrial circles to create a human resource matching system
while discussing a practical human resource development program
based on the actual condition in the field of agriculture in order topromote career development of employees.
b) Revision of a price formation system for production materials
With regard to agricultural production materials (agricultural machinery,
fertilizers, feed, agricultural chemicals, etc.), the Government will developa price formation system which will lead to improvement of farmers’
income. To this end, the Government will discuss the following items andput together specific policies this fall.
- Measures to enable farmers themselves to select and procure
production materials at a lower price- Efforts of production material manufacturers to provide products
catering to farmers’ true needs and to reduce production cost
- Efforts and measures to heat up competition among distributors inorder to provide production materials at a lower price for farmers
whether distributors are affiliated to agricultural cooperatives orcommercial organization- Measures to ensure fair and free competition when seeking todevelop procurement methods for inexpensive production materialsc) Realization of Japanese Food Valley through collaboration of industries
and universities- In the light of cases from Dutch Food Valley which came up with aninnovative greenhouse production system which has strong
international competitiveness, the Government will conduct Japan’s
original research and development through open innovation. To thisend, the Government will use the “Council for cooperation amongindustry, academia, and government,” established April this year, toconduct research under six themes including global expansion ofJapanese food and food industry, creation of a health promotion
industry, and creation of a new bio ingredient industry, and willbring promising research results for new business and products.
d) Drastic productivity improvement through introduction of innovativetechnologies- To remove growth restrictions from labor shortage, the Government
will promote use of a GPS-based automated driving assistancedevice, which enables inexperienced operators to drive a tractor as
skillfully as seasoned drivers. To this end, the Government will
promote joint technological development by manufacturers anduniversities to make products available at a markedly cheaper pricethan imported products by 2018 when a system of four quasi-zenithsatellites will be put in place.
- By employing night driving, multiple driving, and automateddriving, the Government will put an automated tractor driving

35

-

-

-

-

system to practical use. The system will use geospatial information(G-spatial information) including high-definition GPS information
which will remove a scale limit of land-extensive farming under thecurrent technical system. For this purpose, with regard to an
unmanned system enabled in fields under a human surveillancesystem, the Government will assist industry-university joint research
to make sure that products will be available by 2018 whiledeveloping guidelines for securing safety by the end of this fiscal
year. As well, to realize an unmanned automated driving systemthrough remote monitoring by 2020, which will be applied to cases
including a trip between fields, the Government will develop
relevant systems while promoting joint research even more.
To encourage advance in IT systems, which are becoming popularin the field of agriculture, and utilization of big data, theGovernment will promote standardization of various names andspecifications used in agricultural IT systems and will put them into
practical use. For this purpose, based on the “Standardization
Roadmap concerning Agricultural Information Creation/
Distribution Promotion Strategies” (developed by the Agricultural
Subcommittee of the Special Research Committee for Promotion of
New Strategies, the IT Strategic Headquarters on March 31, 2016”),
the Government will make efforts to roll out and promote across thecountry individual guidelines concerning names of farm work andenvironmental data items (the version for full-swing operation),developed last fiscal year, and a rule guide for standard use whiledeveloping individual guidelines concerning names of farm produce
and an agricultural data exchange interface (the version for fullswing operation) this fiscal year.
To make a rapid improvement in productivity by using AI and IoT,
the Government will work on the “AI future agriculture creation
project (tentative name),” thereby developing robots to reducemanual labor and make it more efficient, and conducting social
experiments on distribution efficiency improvement throughsharing.
To promote sustainable farming through the spread of soil making
technologies incorporating passed-down wisdom and scientificknowledge, and ensure that fine technical instructions are fully
available to producers and production groups in order to cater tocustomer needs for organic crops, the Government will promote
efforts for soil making provided by cooperation of external “soilmaking experts” and local promotion organizations.
With regard to development of production infrastructure, theGovernment will promote introduction of labor-saving technologies
for water management by use of ICT.

e) Promotion of farming as a new industry in cities.
- As the Basic Act on Urban Agricultural Promotion (Act No. 14 of36

2015) is enforced, the Government will develop necessary legal
systems to secure farmland, the place for new endeavor, and toencourage entry by new farmers and companies with venture spirit
in order to promote new farming created from various fresh angles
found only in cities. As well, to develop urban agriculture into a
growth industry, the Government will discuss farming based on ICT.
ii) Creation of domestic value chains[1] Realization of distribution and processing structure which enables stabletransactions under conditions in favor of producers
To improve farmers’ income, the Government will develop a system forestablishing distribution and processing industry structure where producers
can make stable transactions under favorable conditions. To this end, theGovernment will discuss the following matters, and develop specificmeasures this fall.
- Measures to create distribution structure where farmers are given
various options to decide buyers and prices on their own- Efforts by organizations related to agricultural cooperatives, various
farmer groups and distributors, and wholesale markets to develop
sales channels where farmers can sell farm produce at the highest
price and increase their earnings- Measures to make pricing and fees in various distribution channels
easy to understand and reasonable from farmers’ perspectives- Measures to secure fair and free competition when promoting
produce sales under favorable conditions to farmers[2] Reform of raw milk production and distribution structure
It is necessary to deal with change in raw milk supply and demand
structure after the introduction of the designated milk producer groupsystem, and diversified consumer needs of recent years, and strengthen
Japan’s dairy farming infrastructure while further improving dairy farmers’
income.
For this purpose, to evaluate and inspect various functions of the current
designated milk producer groups and realize development of Japan’s dairy
farming and its immediate response to final consumers, the Government will
discuss and reach a conclusion by this fall on pros and cons of the designatedmilk producer group system and who should be eligible for the current
subsidy in order to implement radical reform aimed at improving added
value through cultivating dairy farmers’ business mindset, and making
production and distribution more flexible.
[3] Promotion of collaboration among the primary, secondary and tertiaryindustries (AFFrinnovation (sixth industrialization))- To ensure that the Agriculture, forestry and fisheries Fundcorporation for Innovation, Value-chain and Expansion Japan (AFIVE) appropriately performs its role as an incubator supporting
growth of businesses in agriculture, forestry and fisheries through37

making sufficient investment, the Government will discuss measures
to provide direct support to agricultural corporations working on“AFFrinnovation (sixth industrialization)” without creating aseparate corporation. As well, to realize speedy business operation,
the Government will request greater on-site discretion on projectexamination and management while also asking for further
utilization of direct investment by A-FIVE to make smooth project
formation for “AFFrinnovation (sixth industrialization)” cutting
across different prefectures. While checking on the results of suchmeasures and assessing the progress, the Government will discuss
further improvement of systems and operation including expansionof investment targets.
- The Government will promote efforts to overcome challenge which
farmers face when they work on not only production but also
processing and sales based on a market-oriented approach, byemploying the help of experts from other industries who are familiar
with the area concerned.
[4] Development of environment to leverage brand power- The Government will discuss workable measures to introduce
mandatory labelling of origin of ingredients in all processed foods
so that businesses in agriculture, forestry and fisheries industries
could leverage their own brand power and compete appropreately
with both domestic and foreign competing producers, and that it
could help secure opportunities for consumers to make anautonomous and rational choice of foods.
- With regard to agricultural, forestry and fishery products andfoodstuffs with distinctive characteristics of their locality, theGovernment will promote registration of Geographical Indications(GI) based on the Act on Protection of the Names of Specific
Agricultural, Forestry and Fishery Products and Foodstuffs (Act No.
84 of 2014). The Government will also support the protection of
GI outside Japan by mutual GI protection with other countries,
thereby advancing the “Made in Japan” brand overseas.
- The Government will radically strengthen a national movement for
reduction of so-called food loss and waste, food still edible but
disposed of, through cooperation among food businesses, consumers
and public administration. As well, the Government will promote
Food Bank activities which deliver unused food products, generated
during production, distribution, and at home, to people and facilities
in need.
[5] Preparation of measures for the 2020 Tokyo Olympic and Paralympic
Games- Aiming to utilize the 2020 Tokyo Olympic and Paralympic Games
as an opportunity to promote Japanese food culture and Japanese
foodstuffs at home and abroad, the Government will cooperate so38

that the food procurement standards instituted by Tokyo
Organizing Committee will be based on characteristics of Japanese
agricultural and fishery production. In addition, as fundamental
preparation, the Government will introduce GAP (Good Agricultural
Practice) and HACCP (a management system in which food safety
is addressed through the analysis and control hazards in the
manufacturing process), and the spread and enlightenment ofsustainable farming including organic farming. As well, with regard
to GAP and HACCP, the Government will accelerate efforts forinternational standardization, starting to implement the certification
system for internationally-acceptable standards during this fiscal
year.
iii) Enhancement of export capabilities
The Government will strengthen export capabilities of Japan’s agriculture,
forestry and fisheries industries and expand sales channels of this sector’s
products and food to capture the world’s food market expanding especiallyin Asia. To this end, the Government will provide support for efforts bywilling businesses in agriculture, forestry and fisheries industries and foodcompanies based on the “Strategy to strengthen the exports of agricultural,
forestry and fishery products” (developed by the Headquarters on Creating
Dynamism through Agriculture, Forestry and Fishery Industries and Local
Communities on May 19, 2016), and will deal with regulations in othercountries which cannot be addressed by the private sectors.
In particular, the Government will promptly start working on the following“seven actions” newly presented in the Strategy.
1) Send all the information related to export such as local needs,
obtained from various routes including overseas diplomatic facilities, local
offices abroad, relevant ministries and agencies, etc. to the Japan External
Trade Organization (JETRO), and provide it to businesses in agriculture,
forestry and fisheries industries and food companies through websites andemail newsletters.
2) Promote quality of Japanese foodstuffs around the world by thefollowing measures.
- Discuss systems to guarantee quality and characteristics of Japanese
products by using Japan Agricultural Standards (JAS).
- Expand efforts to enable foreign travelers to experience agricultural,
mountain and fishing villages and Japanese food and food culture throughcoordinated use of “inbound” tourism measures.
- Push Japanese foodstuffs including Japanese tea as part of Japaneseculture and food culture.
- Develop and sell travel products under the themes of “Food” and“Farming”.
- Use overseas diplomatic facilities and Japan House as promotion base forJapanese products and foodstuffs.
3) Make strategic sales and promotion of Japanese foodstuffs by thefollowing measures.

39

- Plan and implement integral strategic promotion in the Strategic PlanningCouncil under the Export Strategy Executive Committee throughcooperation between public and private sectors while leveraging functionsof JETRO.
- Develop a system of relay shipment and annual supply to establish theJapan Brand.
- Start developing the “National/ regional event calendar” from thissummer which includes event information a year or longer later to enable
removal of overlapping fairs and coordination between different events.
- Promote and develop transportation technologies to keep freshness whichenable low-cost mass transportation.
4) Provide support for efforts of businesses in agriculture, forestry
and fisheries industries to establish sales bases overseas by themselves anddirectly export perishables and primary-processed products as part ofefforts to develop various sales channels.
5) Develop domestic wholesale markets into export bases by thefollowing measures.
- Promote opening of wholesale market facilities to foreign buyers andexporters.
- Ease regulations so that foreign buyers and wholesalers could make directtransactions and that intermediate wholesalers, with request from foreign
buyers, could directly trade with producers.
- Develop container yard for export on the premises of wholesale markets.
6) Establish the “Export regulation handling team (tentative name)”by this summer, which is comprised of staff from relevant ministries andagencies and aims to accelerate easing and removing restrictions of othercountries concerning export including food safety, radioactive substances,quarantine, and customs formalities through negotiation supported by awide variety of options found across Japan.
7) Simplify and accelerate domestic procedures related to export by
the following measures.
- Expand the area where NACCS (Nippon Automated Cargo and Port
Consolidated System, Inc.) can provide centralized processing ofcertificates by the end of this fiscal year.
- Provide flexible animal and plant quarantine services early morning, latenight, Saturdays and Sundays, and national holidays in places other thanmajor seaports and airports.
As well, the Government will promote the “National/ regional export
expansion strategies” and “Directions of efforts for enhancing export
capabilities by item” (“Two messages”), defined by the Strategy, throughholding seminars across the country and using websites and SNS.
Through these efforts, the Government will set up new export targets for
agriculture, forestry and fisheries products and food by this fall with an aim
to achieve 1 trillion yen, the target for 2020, as early as possible.

40iv) Transforming forestry into a growth industry[1] Creation of new wood demand- The Government will promote construction of wooden buildings
and wood use in public buildings, commercial buildings, and midto-high-rise buildings, such as the New National Stadium to bereconstructed for the 2020 Tokyo Olympic and Paralympic Games
with much wood as a showcase of modern technology in wood use,in addition to houses. For this purpose, the Government will
promote design and construction know-how which make actual
worker such as home builders easy to practice, human resource
development in wooden building, improving production systems of
new wood products and further research and development including
demonstration of aseismic performance, in addition to CLT (Cross
Laminated Timber) as building materials based on the bulletinpublished by April this year in accordance with the BuildingStandards Act (Act No. 201 of 1950) to promote use of new wood
products including CLT and wooden fireproof materials. Moreover
the Government will study further measures to promote constructionof wooden building and wood use in building which have not beenused much wood yet, including review the “Act for Promotion of
Use of Wood in Public Buildings (Act No 36 of 2010)”.
- In addition, the Government will promote use of woody biomass,research and development for international standardization andcommercialization of cellulose nanofiber (nanosized cellulose fibrils
which are as strong as steel while weighing a fifth as much), andresearch and development of higher value added products using
lignin, a component, which accounts for approximately 30% ofwood.
[2] Building of a stable roundwood supply system- To improve the current small-scale and decentralized supply
systems of domestic roundwood, and make stable, efficient large-lot
supply possible, the Government will continue its promotional effort
for identification of forest owners and forest boundaries, grasping
forest information by using geospatial information (G-space
information) and ICT, development of the networks of forest roads,
the development and introduction of advanced forestry machinery,and planned forest development (including a shift to forests withless pollen aimed at realizing “Zero hay fever society”). In so doing,
the Government will publicize and utilize the Act to Partially
Amend the Forest Act (Act No. 44 of 2016), which requires local
municipalities to establish forest land registers and has just made itlegally possible to fell jointly owned forests even if whereabouts ofsome of co-owners are unknown, thereby accelerating consolidationof forestry practices. In addition, to enable large-scale sawmills andplywood mills to procure roundwood in large lots in a timely andappropriate manner, the Government will promote efforts to share41

information the way between suppliers (upstream sector) anddistributors/ processors (midstream and downstream sector)directly.
- The Government will choose and selectively foster a dozen ofmodel “districts for transforming forestry into a growth industry”
across Japan, where businesses from upstream to downstream,
especially sawmills, plywood mills, and facilities using woody
biomass, are connected by a value chain, thereby realizing highprofitability.
v) Development of fisheries into a growth industry
To develop fishing and aquaculture industries into sustainable and highly
profitable operation systems as well as revive Japan’s marine products
industry through promotion of fishery processing and distribution andexpansion of consumption, the Government will take the following
measures.
- The Government will help fishing communities directly work withfood companies, distributors, and the Chambers of Commerce andIndustry, and adopt a market-oriented approach, thereby improving
fishery operators’ income and reducing cost. Through this measure,the Government will accelerate establishment of the “Fishing
Village Revitalization Plans” which aim to implement structuralreform of fisheries and fishing villages, and will achieve 600 casesof adoption, accounting for approximately 70% of a national fish
haul, by the end of this fiscal year (from 551 cases as of the end oflast fiscal year). As well, the Government will triple the target
number of cases of adoption of “Wide-Area Fishing Village
Revitalization Plans,” which aim for market integration andfunctional reorganization in wide areas and development of core
supporters through cooperation of multiple fishing communities,
and will aim for adoption in 170 communities and types of businessby the end of next fiscal year.
- The Government will aim to further expand marine products export
through advance in quality and sanitation control at base ports andpromotion of HACCP compatibility at fishery processing facilities.
- To drive fishing industry’s efforts for high-value added operation
based on a market-oriented approach by using IT and connecting
fishing districts and consumers, the Government will promote
efforts for distribution based on consumers’ needs.
- The Government will further promote sophistication of resource
management and aim to stabilize and strengthen fishing business. To
this end, among all resource management plans developed byvoluntary efforts of fishery operators, the Government will pick
1,400 of them, whose 5th year ended during last fiscal year, and willcomplete revision and improvement based on evaluation andinspection by the end of this fiscal year. As well, to consider phased
introduction of the Individual Quota scheme (IQ scheme) of fish
catches in light of various actual conditions of Japan’s fishing42

operation, the Government will make an interim assessment of the
IQ verification test being conducted on chub mackerels during thisfiscal year, and will put together improvement measures for the next
fiscal year’s verification test. In addition, the Government will starttalks with fishery operators from this fiscal year for increase in typesof fish, including Pacific cods, subject to the total allowable catch
system based on the Act on Preservation and Control of Living
Marine Resources (Act No. 77 of 1996).
- With regard to the aquaculture industry, the Government will lower
the industry’s dependence on natural resources for feed andseedlings, and realize more advantageous sales through cost
reduction and year-round stable shipment. To this end, theGovernment will provide support with cost measures for assorted
feed and measures for stable supply of live bait for aquaculture
while promoting development and use of assorted feed with a lower
rate of fish meal, including by using insects, as well as utilization of
artificial seedlings through breeding of premium pedigree. As well,
the Government will promote keeping production record, which
could lead to further export.

43

4. Realization of Japan as a tourism-oriented country(1) Progress in achieving KPIs
<KPI> “Increase the annual number of foreign visitors to Japan to 40
million in 2020 and 60 million in 2030.”⇒ 2015: 19.74 million (2012: 8.36 million)<KPI> “Aim for foreign visitors to spend 8 trillion yen in 2020 and 15
trillion yen in 2030.”⇒ 2015: 3.4771 trillion yen (2012: 1.846 trillion yen)
(2) Specific new measures to be taken
The number of foreigners who visited Japan last year was 19.74 million andthey spent 3.4771 trillion yen during their stay. These numbers have more thandoubled and tripled respectively in the past three years.
Tourism is the ace in the hole for “regional revitalization,” and a pillar of the
Growth Strategy aiming to achieve GDP of 600 trillion yen. Therefore, theGovernment will promote the overall tourism with both “inbound tourism”
and “domestic tourism” in light of its economic ripple effect over large areas,
while spreading both Japanese and foreign tourists, who tend to concentrate inparticular regions, across Japan.
For this purpose, the Government will raise the current targets, and add new
targets as follows, and will develop tourism into one of Japan’s key industries
by aiming to achieve such targets and striving to make Japan a tourismoriented country in a comprehensive and strategic manner.
- Number of foreign visitors to Japan:
40 million in 2020 and 60 million in 2030
- Consumption by foreign visitors to Japan:
8 trillion yen in 2020 and 15 trillion yen in 2030
- Total number of nights foreign tourists stay in regional areas:
70 million in 2020 and 130 million in 2030
- Number of foreign repeat tourists:
24 million in 2020 and 36 million in 2030
- Consumption by Japanese domestic tourists:
21 trillion yen in 2020 and 22 trillion yen in 2030
To this end, the Government needs to ensure that Japan’s abundant andvarious tourism resources are well maintained by proud people and that theirvalue is communicated to both Japanese and foreigners in a plain manner. As
part of such efforts, the Government will open the State Guest House andother attractive public facilities to the public, promote regional efforts to
attract tourists by leveraging local tourism resources including nature, farm
products, food, traditional culture, and scenery, help develop sightseeing tour
routes catering to the needs of foreign travelers including improvement on
wide-area tourism excursion routes to meet world standards, and seek tofurther increase foreign tourists’ spending through expanding consumptiontax-free stores.
Moreover, to create regional employment and develop human resources44through tourism and eventually develop Japan’s tourism into a highlyproductive and internationally-competitive industry, the Government will help
establish and foster Japanese-style DMOs (Destination Management/
Marketing Organizations) across the country, and improve productivity of
tourism by developing and reinforcing managerial talent for tourism andrevising old regulations related to hotel business and tour guides licensed for
guiding foreigners in Japan. In addition, to contribute to promotion of “sharing
economy” which utilizes and shares idle properties effectively, theGovernment will develop rules related to accommodation services offered at
private residences.
Furthermore, with regard to receiving environment including CIQ,
accommodation facilities, communications, transportation, settlement, etc., theGovernment will utilize regional liaison committees established in March lastyear with an aim to enhance systems to accept foreign visitors to Japan, andwill promptly take necessary measures to each of regional issues by clarifying
the deadline to do so and the body in charge of implementation. As well, theGovernment will realize more comfortable travel by completing a “corridor
for vitalizing local regions” which leverages high-speed transportation
networks including the Shinkansen and expressways. In addition, theGovernment will promote efforts to smooth out tourism demand fluctuations
by encouraging exercise of annual paid leave and staggered holidays.
Coupled with these measures, the Government will promote efforts to realize
Japan as a tourism-oriented country based on the “Tourism Vision to Support
the Future of Japan” (decided by the Council for the Development of a
Tourism Vision to Support the Future of Japan on March 30, 2016), and the“Tourism Vision Realization Program 2016 (Action Program toward theRealization of Tourism Vision 2016)” (decided by the Ministerial Council on
the Promotion of Japan as a Tourism-Oriented Country on May 13, 2016). As
part of the efforts, particularly, the following specific measures need to betaken to achieve KPIs.
Creating the most appealing tourism resources that will serve forregional revitalization[1] Opening highly-appealing public facilities/infrastructures to the
public without hesitation
・ Aiming at widely introducing historic and traditional facilities at home andabroad, State Guest House, Akasaka Palace is opened to the public since thisApril as long as it does not pose any problem on hospitality reception events.
The government is planning to specially open Japan’s best “hospitality” space
to the public around the 1st quarter in this fiscal year as long as it does notpose any problem on hospitality reception events. By doing so, thegovernment will start “special public opening” on a trial basis and widely
introduce highly attractive facilities to make visitors experience such“hospitality” space.
・ Based on the result of the trial public opening from April 28 to May 9, 2016,
the government is planning to start public opening of Kyoto State Guest Houseon the full year basis around the late July as long as it does not pose any

45

problem on hospitality reception events. Paying due attentions to special
public opening of State Guest House, Akasaka Palace, the government will
actively examine feasibility of special public opening of Kyoto State Guest
House as well.
・ Policymakers will actively open to the public any other public facility if ityields value as tourism resources.
[2] Branding Japanese national parks as the world-class “nationalparks”
・ Aiming at branding Japanese national parks as the world-class “national parks”
and systematically and intensively carrying out multiple projects, such as
employing private-sector’s insights and funds under “National Park FullEnjoyment Project” in order to launch/support high-quality plans enjoyablefor foreign visitors, provide high-quality feeling at national parks and intensify
information services bound for overseas markets, the government will start
attracting more foreign tourists to national parks by developing “National
Parks Step-up Program 2020 (tentative name)” for 5 national parks at first.
・In addition to enhancing public relation efforts to spread out and promote ecotourism, the government will provide support to ecotourism promotion
projects that will improve quality or encourage diverse use of regional natural
tourism, such as fostering high-quality human resources with a wide variety
of guidance techniques, developing highly-attractive programs that make useof high-quality natural landscapes, geoparks, spas or other natural resources,
or coping with inbound tourists by fostering tour guides for foreign visitors.
[3] Encouraging utilization of cultural assets as tourism resources
・ Aiming at putting more emphasis on “providing support to comprehensive
utilization of local cultural assets,” shifting away from traditional“preservation-oriented support” programs, the government will work on some
200 tourism spot projects, with focus on Japan Heritages and other cultural
assets, and also work on approximately 1,000 projects by the year 2020, suchas providing user-friendly multi language information services or wide-area
regional cluster projects incorporating cultural assets, rather than simply
utilizing cultural assets separately, in accordance with “Cultural Assets
Utilization/Understanding Promotion Strategic Program 2020.”[4] Creating better tourist spots by preserving/utilizing highly-scenic
tourism resources
・ To develop landscape plans for major tourism spots around 2020, thegovernment will encourage development of landscape plans nationwide andpush ahead with creating highly-attractive tourism spots bypreserving/utilizing highly-scenic tourism resources. Aiming at creating more
appealing tourism spots, preserving historic streetscapes and revitalizing
traditional festivals or other local cultures, policymakers will push ahead witheliminating utility poles mainly in priority areas as set forth in “Act on
Maintenance and Improvement of Traditional Scenery in Certain Districts46

(Act #40 in 2008, so-called “Historical Community Development Act”)” byutilizing PPP/PFI approaches.
[5] Establishment of certain rural areas as the best places to be
・The government will certify tourism promotion plans of certain rural areas toattract tourists, especially those from foreign countries, in the light of savoring
the fresh and fantastic delicacies and rich agricultural cultures. Such plans
should center on local dishes and agriculture, forestry and fishery sectors assource of them, which will make it very enjoyable to take a trip in beautiful
rural areas and Japanese nature and lifestyle. By promotion of integrally
branding certified plans above, the government will forcefully convey
attractiveness of local dishes as our pride to the people of the world.
[6] Taking advantages of tourism demand in local shopping avenues andexpanding consumption of traditional artifacts
・ Aiming at developing streetscape projects at the total 50 shopping avenues,
inner city areas and tourism spots and providing better environment forforeigners at the total 1,500 shopping avenues, inner city areas and tourism
spots by the year 2020, policymakers will enhance local community’s
revenue-earning capabilities and revitalize local economies by providing
support to: Setting up tax-free procedure desks, establishing appropriate WiFi environment, providing cashless terminals, providing alien concierge
services to foreigners, indicating multi-language guidance and enhancing
shop hospitality services at shopping avenues, inner city areas and tourism
spots striving to draw on inbound demand nationwide. In addition, thegovernment will collect and spread out information on shopping avenue’s
efforts to win inbound demand, aiming at emergence of spillover effect onother shopping avenues.
・ Aiming to increase the number of traditional artifacts producing districts to atleast 100 by the year 2020, the government will attract more foreign visitors
to traditional artifacts producing districts so that they will see and experience
the production site and actually feel highly appealing traditional artifacts. By
doing so, policymakers will stimulate foreign wealthy class’s consumer
appetite and provide information on highly appealing traditional artifacts fromforeign people’s perspectives by inviting overseas experts and enhancing
public relations efforts.
[7] Providing better and the world-class wide-area sightseeing tour routes
・ By sending expert teams to wide-area sightseeing tour routes (parachute teams),
policymakers will intensively develop landscaping or experience programs.
・ The government will hold competition session at an early timing in this fiscal
year to choose and intensively support eco-tourism, sake brewer tourism,
location tourism and other sightseeing routes that utilize theme-based highlyattractive tourism resources at each local community.
・ By selecting “Urban Tour Mini Routes” among wide-area sightseeing routes,
policymakers will revitalize historic roads, set up rest rooms and other rest
facilities,and encourage local community building activities on the package

47

basis.
・ To provide better tourism spots and cope with stronger inbound demand in the
future, policymakers will work with local communities and public transport
operators to wisely use capacities/space of existing roads or parking lots andenhance quick-impact countermeasures on traffic jams by making use of big
data.
・ By creating foreign tourists flow data that indicate flow of foreign tourists
among domestic spots and actual conditions on how they use public transportsystem, the government will encourage using such data for developing widearea tour routes and planning/reexamining strategic promotional projects.
[8] Restoring tourism demand in Tohoku area
・ To boost the number of foreign visitors at hotels in Tohoku 6 prefectures to
1.5 million in the year 2020 (3 times as many as the 2015 level), thegovernment will invite foreign travel vendors or media staff, improvetransport all-access-pass programs, encourage formation of wide-area tour
routes, revitalize Japanese inns and conduct Tohoku promotional efforts asJapan’s first destination campaign on the world-wide basis.
ii) Reforming and enhancing competitive edge of tourism industry toserve as Japan’s core sector[1] Forming/fostering the world-class DMOs
To form 100 world-class DMOs nationwide by the year 2020, the government
will especially work on the following projects.
・The government will register Japanese-style DMO candidate corporations andwork with related ministries/agencies to provide these corporations with onestop services including intensive support programs or counseling services.
・By developing new system tool “DMO Cloud” that makes it possible foranyone to easily and efficiently manage/market tourism spots, the government
will provide such new tool to stakeholders that form DMOs.
・To improve productivity of the service industry, policymakers will collectmunicipality-based foreign visitor accommodation/attribute data and tourism
resource big data to spread out and diffuse “Tourism Forecasting Platform” tothe public so that anybody is able to analyze data.
・The government will create human resources development programs suitable
to Japan’s needs by employing foreign insights, provide training sessions andestablish appropriate framework in which human resources developed will beable to play active roles nationwide, rather than simply serving for a certain
local community.
・To quickly address a human resource shortage that poses problems for local
communities, the government will provide matching services between local
communities and marketers with professional knowledge andcomprehensively provide support to package projects incorporating actual
human dispatching services.
・Related ministries/agencies will work one another to effectively use local
revitalization promotion subsidies to provide comprehensive support toJapanese-style DMOs, ranging from startup of new organization to48

autonomous organization management.
・ The government will set up new framework that encourages
collaboration/participation of public-private funds, related organizations,wide-area DMOs and some other stakeholders on ad hoc basis, reach out tocompetent organizations for regulatory reforms and provide support toprivate-sector projects worth 1 trillion yen.
[2] Fostering and strengthening tourism managers in line with industrial
circle’s needs
・To provide graduate school-level (including MBA) permanent programs for
top-level managers that play leading roles in the tourism sector, thegovernment will start developing practical and professional educational
programs in government-industry-academia in line with industrial circle’s
needs.
・For enhancing development of human resources that play core roles in regional
tourism, policymakers will study or look into feasibility of developing
standard curricula with an eye on curriculum reform at existing university’s
tourism schools.
・As for creating appropriate framework for new higher education institutes thatprovide practical vocational training programs, the Central Council for
Education will draw its conclusion by the middle of this year for opening up
new schools around FY2019 in order to take necessary systematic actions thisyear.
・For fostering human resources that support local tourism sector and cope with
tourists’ diverse needs, education institutions including specialized training
colleges and the industrial circle will work together to improve and upgradeeducational programs.
[3] Continuously deploying “Tourism Spots Revitalization Fund”
・To revitalize spa resort areas or some other districts with some common
elements and strongly make use of tourism spot potentials, the government
will work with public-private funds and related organizations as necessary to
examine feasibility of creating new framework capable of stably andcontinuously providing tourism community building-related investment
knowhow or human resources development capabilities even after completing
fund formation by Regional Economy Vitalization Corporation of Japan(REVIC), paying due attentions to activities of their “Tourism Spots
Revitalization Funds (tentative name)” with an eye on continuously launching“Tourism Spots Revitalization Funds” on the nationwide scale.
[4] Quickly eliminating an accommodation facility shortage andproviding accommodation facilities in line with diverse needs
・The government will work on eliminating an accommodation facility shortageby mitigating floor-area ratio to provide inns, hotels or other accommodation
facilities at an appropriate level and by granting financial assistance throughcommunity building funds that employ regional financial resources forrenovation projects that will turn old houses into accommodation facilities.

49

・The government will work on inbound demand encouragement projects foraccommodation facilities (providing a half (1 million yen at maximum) ofnecessary cost of establishing Wi-Fi environment, providing multi-language
services and setting up TV international broadcasting facilities, such as NHK
World TV). By doing so, policymakers will provide more user-friendly
environment for foreign visitors to Japan in order to eliminate anaccommodation facility shortage, encourage providing accommodation
facilities in line with diverse needs, and improve productivity in the hotel
sector through pushing ahead with cloud or other ICT solutions andreexamining operational framework, such as introduction of multi-task
operations.
[5] Strategically mitigating visa requirements
・ Among the 20 priority countries/regions in the Visit Japan program, thegovernment-wide efforts will be made to strategically mitigate visa
requirements for 5 countries that need visas for visiting Japan (China, thePhilippines, Vietnam, India and Russia) along with improving visibility
through promotional efforts and providing better environment for tourists.
- The government will relax visa issuance requirements for China (expanding
multiple entry visa for commercial purpose, cultural worker and intellectual
persons, extending the effective term to 10 years at maximum, andsimplifying visa application procedures for students at certain universities)
by this summer based on the decision to do so.
- It will also ease multiple entry visa issuance requirements for Russia(expanding commercial purpose, cultural worker and intellectual person
eligibilities and extending the effective term to 5 years at maximum) at an
early timing.
- The immigration authority will mitigate visa issuance requirements for India(simplifying visa application procedures for students at certain universities)
at an early timing.
- Coping with increased foreign tourists visiting Japan, the government will
enhance physical/human resources related with visa examination at
diplomatic establishments abroad so that foreign tourists will be able tosmoothly apply to the Japanese authority for their visa.
- It will intensively work on promotional efforts in the nations where strategic
visa requirements are relaxed.
[6] Comprehensively reexamining tourism-related regulations/schemes
The government will reexamine the following schemes from the viewpointsof coping with increased foreign tourists visiting Japan from neighboring Asian
countries, providing safe trips in accord with the lessons learned from Karuizawa
skiing bus accident and fostering/enhancing highly-competitive core industries.
・To cope with diverse tourist needs and expand supply quantity of interpreterguide services, the government will reexamine interpreter-guide program,including “service monopoly schemes” while keeping the service quality.
・To prevent providing excessively profit-oriented, low-quality or less safe tour50

products, the authority will introduce land operators registration program to
identify their actual conditions and examine feasibility of new program toappropriately guide/supervise problematic operators.
・The government will strive to provide appropriate framework in which type 3
travel agencies, accommodation facility operators or other local-based
operators will be able to easily plan/provide destination-type travel products.
[7] Addressing private accommodation services
・So-called “private accommodation services,” accommodation services that use
all or a part of a house (single-family house, condominium/apartment, etc.),
are needed to revitalize local communities and cope with rapidly increasingneeds of foreign tourists visiting Japan and tight accommodation demandsupply in urban areas. On the other hand, it is also necessary to create
appropriate rules by paying attentions to preventing spread of infections,appropriately managing anti-terrorism efforts and preventing possible troubles
with local residents. In this context, “Review Meeting on Appropriate Private
Accommodation Services” held by Ministry of Health, Labour and Welfare
and Japan Tourism Agency will coordinate its final report around this June bycontinuing to examine feasibility of setting up two accommodation service
provider categories (“landlord residence-type” and “landlord absence-type”)
to push ahead with certain satisfactory private accommodation services underappropriate regulatory framework. By doing so, policymakers will quickly
work on setting up necessary legal framework in line with the said report.
・By verifying actual operations of “National Strategic Economic Growth Areas
Foreigners’ Accommodation Facilities Operation Program,” the government
will identify specific problems and examine possible further utilization of thesaid program.
[8] Strategically upgrading promotion for foreign tourists visiting Japanand enhancing information services on diverse appealing points
・With target set at tourists from Europe, the United States and Australia as
well as at wealthy class, Japan should be branded as travel destination. To
this end, the government should have major opinion leaders in Europe, theUnited States and Australia who actually have special experiences in Japanand strongly broadcast their motion pictures from overseas key stations. In
addition, it will annually invite 100 overseas major magazines/media firms
and overseas travel agencies that handle tour plans for wealthy class tointroduce Japanese traditions/cultures with certain stories, and encourage
creation of Japan tours highly appealing to the said target.
・The government will support overseas information services by registering“host towns” among local governments that have mutual interactions withparticipant nations/regions of 2020 Tokyo Olympic/Paralympic Games. It
will also examine feasibility of launching “Olympic/Paralympic
Ambassadors (tentative name)” program that fosters/supports volunteers
that show ways in foreign languages to athletes/tourists visiting the local
community during the Games.

51[9] Encouraging invitation of MICE
・“MICE Promotion-related Ministries/Agencies Liaison Conference (tentativename)” will be set up within this year to take the following actions andexamine MICE support programs that provide government-wide support.
- The government will support upgrading of marketing efforts of global MICE
enhancement cities in order to enhance international competitive edge andcapabilities to invite convention bureau’s MICE programs.
- To encourage further utilization and diffusion of unique venues, the authority
will sort out any gap/problem between facility operator and user needs andshare information on such problems with facility operators.
・Integrated resorts (IRs) are expected to contribute to tourism revitalization,
local revitalization and industrial promotion. However, as the related
ministries/agencies need to examine creation of new schemes to prevent
possible problems from the perspectives of crime prevention, security
enforcement, youngster healthy development and addiction prevention, they
will examine IR projects, paying due attentions to IR promotion legislation
bill* and IR-related nation-wide arguments.
* IR promotion legislation bill: “Bill on Promoting Setting up Specified Integrated Tourism
Facilities Areas”iii) Providing appropriate environment in which all tourists will be able
to fully enjoy comfortable sightseeing trips without feeling any stress[1] Achieving innovative immigration services that utilize state-of-the-art
technologies
・ To shorten airport immigration service waiting time to 20 minutes or shorterin this fiscal year by introducing the world’s first immigration service package
and utilizing the best technologies in the world, and to achieve innovative
immigration services, the government will push ahead with several projects,
such as acquiring personal ID data beforehand through introduction of bio
cards, achieving pre-clearance services (pre-confirmation) at an early timing,
introducing automatic gate program for trustworthy travelers (trusted
travelers), introducing the world’s best facial recognition technologies andexpanding utilization of automatic gates for foreigner’s embarkation
procedures.
・ To mitigate passenger’s burdens related with departure airport security checkand provide stricter but smoother inspection services, the government will
introduce advanced security check equipment (voice scanners) that gains highpopularity in Europe and the United States.
[2] Establishing “regional revitalization corridor” by utilizing bullet
trains, expressways or any other high-speed transport network
・Although “Japan Rail Pass” is only available at limited overseas travel agents
before travel departure, the government will start demonstration experimentin this fiscal year so that foreign tourists will be able to buy the pass after
arriving in Japan. It will also set up inexpensive and sustainable aviation
network connecting between gateway to local area and between local areas.
・ For providing better access to tourism spots, the government will52

comprehensively check up tourist’s behaviors against actual transportconditions near tourism spots and existing common railway tickets for each
local area. Then, it will strive to enhance transport services and create/improvecommon railway tickets near tourism spots in line with tourist needs, provide
effective information services in foreign languages and make promotional
efforts.
・ To enhance expressway bus network, policymakers will create service areas,parking areas or other transit spots, push ahead with park-and-ride at
expressway bus stops, encourage private-public collaborative projects withrailway sector through expansion of grade seperation road scheme andenhance connection between transport modes (modal connect). For improving
user-friendliness of local bus services, the government will also push ahead
with private-public collaborative projects, such as improving town mobility
management and bus service waiting conditions, creating roadside station
demand bus and car-sharing transit spots, and achieving better transport
efficiency and labor-saving through BRT.
・ The government will utilize the “National Strategic Special Zone Act”
framework to expand effective use of private passenger cars so that foreign
tourists and other sightseeing visitors to Japan will conveniently and smoothly
move at sparsely-populated areas.
・ Expressway companies will work with the central/local governments and car
rental service operators to provide discount services, such as flat-rate tourtype drive pass for foreign tourists usable for multiple times at local
expressways.
[3] Enhancing gateway capabilities of local airports, etc.
・To enhance local airport gateway capabilities and revitalize wide-area tourism
services, the government will push ahead with integrated operations ofmultiple airports in Hokkaido (Public facilities operating right scheme, etc.).
・To invite international flights to local airports and create new flow of “localin, local-out,” policymakers will mitigate international flight landing fees at
local airports in collaboration with local efforts to invite international flights.
・To enhance airport capabilities in the Tokyo metropolitan area, the government
will put the top priority on expanding airport capabilities to accommodate
additionally some 80,000 flights by the year 2020, such as deciding its basic
stance for reexamining Haneda Airport flight routes in this summer at latest
by paying attentions to environmental impacts. It will also work with related
local governments to examine specific approaches for expansion of airport
capacities, including drastically enhancing Narita Airport capabilities fromthe year 2020 onward.
・ To improve business jet acceptance capacities at airports in the Tokyo
metropolitan area, the government will expand aircraft parking spots at
Haneda Airport and examine feasibility of improving acceptance capacities at
Narita Airport. It also aims to accept more business jets with collaboration
between Haneda and Narita Airports.
・To invite increased tourists to Hokkaido, New Chitose Airport will significantly
expand international flights departure-arrival slots in the winter flight53

schedule effective from the late October of this year and is planning toincrease per-hour departure-arrival slots in the summer flight schedule
effective from the late March of the next year onward.
・Kansai Airport will expand its immigration desks at the 1st terminal and set up
LCC-dedicated new terminal. Chubu Airport will also start setting up LCCdedicated terminal to serve as a new LCC hub.
[4] Accepting increased cruise vessels to increase the number of cruise
passengers visiting Japan to 5 million in 2020
・ The central government (Ports and Harbours Bureau, Ministry of Land,
Infrastructure, Transport and Tourism) will launch matching services between
cruise vessel operators seeking for anchorage port and port administrators(local governments) wanting to accept cruise vessels, give cruise vessel
operators information on available piers, prevent port administrators fromrefusing cruise vessel’s port calls, and push ahead with accepting increased
cruise vessels to Japan.
・To cope with increased and larger cruise vessels, the government will utilize
existing facilities, provide quay wall bitts, fenders, dolphins and piers, andgrant interest-free loans for passenger terminal building projects incorporating
private-sector’s innovations and wisdoms, aiming to form international cruise
hubs with CIQ areas and commercial capabilities.
[5] Reforming public transport user environment
・ To enhance capabilities to accept rapidly increasing foreign tourists visiting
Japan, the regional bloc liaison meetings, as mainly set up last March byregional bureaus of Ministry of Land, Infrastructure, Transport and Tourism,
will issue their reports in each bloc around the end of this year on further
policy actions for coping with increased foreign tourists visiting Japan andstrongly addressing problems by utilizing “Urgent Program to Improve
Foreign Tourists Acceptance Environment.
・For setting up hands-free tourism desks at all major traffic hubs by the year
2020 to establish hands-free tourism core network, policymakers are planningto double the number of counter desks (currently around 80) by the end of thisfiscal year.
[6] Significantly improving cashless environment
・ While three mega banks are planning to increase the number of their overseas
cards-compatible ATMs to the total 3,000 (a half of their total ATMs installed)by the year 2020, but the government will request them to drasticallyaccelerate such a move (to install most of these ATMs in 2018). In addition, it
will provide data useful for installing ATMs, encourage strategic projects for
installing high propriety ATMs with stronger needs, and follow up how muchthese efforts are progressing.
・ The authority will encourage diffusion of credit card- and IC-compatible
terminals to achieve “100% credit card payment” and “100% IC-compatible
terminals” by the year 2020 at major commercial facilities, accommodation
facilities and tourism spots for foreign tourists.

54

[7] Drastically improving communications environment and providing
appropriate environment in which anybody is able to walk outsidealone
・ To create Wi-Fi environment easily accessible by foreign tourists at the timeof their sightseeing trip or disaster, the government will push ahead withcreating charge-free Wi-Fi environment at high priority major tourism/disasterprevention locations by the year 2020 (including the estimated 29,000
locations*1, such as schools designated as evacuation center or shelter) in linewith the facility improvement plan*2 developed by the central government inthis year. By utilizing “Charge-free Public Wireless LAN Promotion Council”
to push ahead with effective utilization of existing Wi-Fi access points by theyear 2018, the government will create seamless Wi-Fi connectableauthentication cooperation scheme among service providers accessible from
more than 200,000 locations. In addition, it will accelerate elimination ofmobile phone “out of service” areas in bullet train lines.
*1: Further scrutiny is needed to check out the number of locations in the future.
*2: This plan is scheduled to be revised every fiscal year.
・Towards the target of societal implementation by the year 2020, the government
will steadily push ahead with “Global Communication Plan” to attain free,global human interactions without “language barriers” in the world. To thisend, policymakers aim to improve accuracy of multilingual speech translation
technologies and spread out these technologies to travel conversation, disaster
reduction/prevention and daily life areas. In addition, demonstration
experiment will be conducted at local commercial facilities and tourism spots,
aiming at improved visibility and further diffusion of multilingual speechtranslation systems.
・ To indicate traffic rules in an easily understood manner for foreign cyclists,
the government will standardize pictograms and road surface signs and create
safe and comfortable bicycle traffic environment.
[8] Enhancing foreign patient services capable of coping with urgent
patients
・ To provide Japan’s safe and secure medical services to foreigners, thegovernment will increase the number of “medical institutes that accept foreign
patients” to 40 in this fiscal year, aiming to set up such medical institutes at
100 locations by the year 2020, 5 times as many as the present level, withfocus on foreigner’s highly-populated areas, through assisting deployment of
medical interpreters or medical coordinators, supporting multilingual services
on hospital internal documents and increasing hospitals accredited with the“Japan Medical Service Accreditation for International Patients” (JMIP)
program.
[9] Reforming leave of absence programs
Through increasing the percentage of annual paid holidays actually taken
to 70% and diversifying vacation timings by the year 2020, the government
will take the following actions to encourage tourism sector through increased
days off.

55

・Lawmakers should pass Labor Standards Act Amendment Bill at an early timing,
which requires employers to allow their workers to take at least 5 days longannual paid leaves.
・Policymakers will work on intensive public relations for taking annual paid
leaves in holiday seasons in which continuous days off are easily taken andencourage workers to systematically take annual paid leaves in line with theirlocal events.
・ From the viewpoint to enhance family learning opportunities in local
communities, the government will further encourage education boards andschools to push ahead with various efforts for flexibly designating school
nonworking days in each local area.
・ The government will encourage family trips on weekdays by urging theindustrial circle to increase annual paid leaves by 3 days in line with flexible
nonworking days at education institutes.
・Policymakers will encourage central government’s civil servants to take theirannual leaves in line with school nonworking days.
[10] Pushing ahead with universal designs for 2020 Tokyo
Olympic/Paralympic Games・To push ahead with better universal designs and mental barrier-free at tourism
spots and public transportations in the wake of the 2020 Tokyo
Olympic/Paralympic Games, the authority will work on community building
and mental barrier-free projects on the nationwide scale in line with “Tokyo
2020 Accessibility Guideline.” By doing so, it will draw on potential demand
for travels in Japan among disabled persons at home and abroad and create
comfortable travel environment for elderly persons and child-rearing
generations to encourage their consumption behaviors. To this end, thegovernment will conduct hearing sessions for disabled persons organizations,
incorporate their opinions and coordinate interim report around this August toissue final report as “Universal Design 2020” within this year.
・ The government will revise traffic barrier-free standards, examine
improvement in wheelchair user environment, provide support to bus/taxi
barrier-free financed with license plate donations, give support toaddition/installment of elevators and platform doors at 2020 Tokyo
Olympic/Paralympic Games-related railway stations, set up barrier-freeenvironment at Narita/Haneda Airports and main passenger vessels terminals,
create continuous and wide-area barrier-free environment including roads
surrounding stadiums or tourism spots.

56

5. Changing sport/culture to growth industries
5-1. Pioneering the future for the sport industry(1) Progress in achieving KPI<KPI> “Aim to expand the sport market size (5.5 trillion yen in thepreceding year) to 10 trillion yen by the year 2020 and 15 trillion
yen by the year 2025”* KPI newly set out this time
<KPI> “Aim to boost the percentage of adults that play sports at least
once a week from the current 40.4% to 65% by the year 2021”* KPI newly set out this time(2) Specific new measures to be taken
A rise in sport-related consumption and active investment mindset among
Japanese citizens and private-sector firms as well as stronger overseas attentions
to Japan is anticipated in the wake of the 2020 Tokyo Olympic/Paralympic
Games. Taking advantages of this opportunity, the government will revitalize thesport industry from 2020 onward and turn it into Japan’s core industry.
i) Reform of stadiums and arenas (changing cost center into profit center)[1] Developing new guidelines on stadiums and arenas
To make athletic fields, gymnasiums or other sport spectating locations more
attractive and profitable facilities (stadiums/arenas) that spectators would like tovisit repeatedly, the government will coordinate new maintenance/operationalguidelines on facility location/access, size, ancillary facilities or services by theend of this fiscal year. Public-private collaboration council (tentative name) will
be set up at an early stage to create new guidelines and to maintain/operate
specific facilities under public-private collaboration.
[2] Providing support to actualize pioneering cases of multi-functional
facilities based on “smart venue” concept
Taking domestic or overseas pioneering cases into consideration, the central
government will quickly examine and actualize support measures such asdispatch of experts to local governments setting up sport facilities as sustainable
exchange facilities with multiple functions to combine public facilities orcommercial facilities including surrounding area management (such sportfacilities are so-called “smart venues”), rather than sport facilities with a single
function. In this process, policymakers will disseminate best practices to makeuse of PPP/PFI and provide support such as giving knowhow for actualizing
pioneering cases of multi-functional facilities including the consession systemof public facilities.
ii) Enhancing management of sport contents holders and encouraging
creation of new businesses[1] Setting up an appropriate domestic framework for promoting
university sports
Ministry of Education, Culture, Sports, Science and Technology and Japan

57

Sports Agency will play central roles in advancing the discussion and drawing aconclusion by the end of this fiscal year on feasibility of a multi-university andmulti-sport umbrella organization (Japanese-style NCAA (National Collegiate
Athletic Association)), which aims to utilize potential of sport resources ofJapanese universities (production of high-skilled human resources, economic
revitalization, regional contribution, etc.) and to establish appropriateorganizational management practices and sound university sport business.
[2] Establishing a new platform that fosters and utilizes sports business
managers
Aiming at providing work-ready business managers to improve
management including organizational operation, profitability and governanceof sport-related organizations, the government will work with professional
leagues, sport-related organizations, private-sector firms, education institutes
and some other stakeholders to examine creating “Sports Business Manager
Platform (tentative name)” that provides professional/practical skills andmatching services for a wide variety of human resources inside/outside thesports circle, and draw a conclusion by the end of this fiscal year.
iii) Strengthening industrial competitive edge of the sport circle[1] Creating new sport media businessTo create new sport media contents market by making best use of values ofJapan’s sport contents including professional, amateur or student sports, thegovernment, academic and industrial circles will start working together from thisfiscal year (Sport Media Review Meeting (tentative name)) to examine effective
utilization of broadcasting technologies, encouraging tapping into overseas
markets and identifying possible approaches on new rights business, while
paying due attentions to pioneering cases in foreign countries.
[2] Creating new businesses through collaboration with other sectors
To support and expand collaborations between sports and other sectors
including health, foods, tourism, fashion, culture and art as well as enjoyment ofsport as “athletes” or “spectators,” policymakers will aim at creating new values
in sports by integrating sports with technologies, introducing wearable devices
based on digital technologies (IT), developing/utilizing new sports goods andencouraging sport-related data flow. To this end, towards creation and expansionof new sport markets, the government will work with competent
ministries/agencies to examine possible support measures, such as businessmatching for collaboration with other sectors, and draw a conclusion by the endof this fiscal year.
[3] Increasing sport population that supports expansion of the sport
market (increasing sport population without distinction of age or
gender)
The government will examine possible approaches on developing/diffusing
new sports easy to participate, recommending easily accessible sports at58

workplace, enhancing exercise/sport programs suitable for life stages and setting
up appropriate environment for disabled sports, and draw a conclusion on its
basic stance by the end of this fiscal year.

59

5-2. Revitalizing economy through utilization of cultural/art resources(1) Progress in achieving KPI<KPI> “Aim to boost cultural GDP to 18 trillion yen by the year 2025 (some3% as percentage to overall GDP)”* KPI newly set out this time
<KPI> “Aim to increase the percentage of art viewers to some 80% andthe percentage of those actually engaging in cultural/art activities
other than art appreciation to some 40% by the year 2020”* KPI newly set out this time(2) Specific new measures to be taken
Japan enjoys diverse, unique and abundant cultural and art resources backed byits long history, ranging from traditional culture and performing art to cartoons,animations and games. In addition to making maximum use of these resources, thegovernment will enhance necessary capabilities for coping with new policy needs
expected for cultural administration and make further efforts on cross-sectional
projects in government-industry-academia collaboration, regardless of past cultural
policy framework or policy methods. Aiming at improving visibility of the Japanbrand by providing effective information services at home and abroad such as
cultural diplomacy through international cultural exchange by dispatching or
accepting artists, the government will expand economic spillover effect based on
cultural and artistic resources.
i) Expanding the cultural/art industry and economic spillover effect
Recognizing that culture widely covers not only cultural assets, traditional arts,
but also foods, education, documents, music, motion pictures, game softwareand other contents or designs, the government will expand its economic spillover
effect. To this end, Agency for Cultural Affairs will play the central role inanalyzing successful cases at home and abroad, develop a policy roadmap by theend of this fiscal year and realize specific policy actions.
ii) Changing cultural assets/resources from cost center to profit center
The government will develop “Cultural Assets Utilization/Understanding
Promotion Strategic Program 2020” to yield “profitability from cultural assets”
by taking the following actions:・ Disseminating values and attractions of cultural assets that embody
Japanese culture/history in a comprehensible and effective manner by
providing multilingual explanations on cultural assets
・Providing attractive environment for tourists by repairing cultural assets at
an appropriate interval and beautifying buildings and other cultural assets
・ Creating some 200 tourism spots nationwide that yield diverse profits
surrounding Japan Heritage or other cultural assets by the year 2020
・Promoting marketing or management by local governments in a way to
improve revenue-earning power of cultural assets
・Enhancing functions of museums through establishment of lectures about
tourism promotion utilizing cultural assets for curators or cultural asset

60

protection staff, and fostering/deploying high-quality heritage managers
From the viewpoint of improving revenue-earning power of cultural facilities,
the government will investigate and analyze pioneering cases including
multifunctional facilities or consession approaches, and push ahead withutilization of PPP/PFI for project formation.
iii) Creating and disseminating artistic culture that contributes to regional
revitalization and better brand capabilities
・In industry-academia-government collaboration, the government will workon setting up new hubs that lead to regional economic development,
creating/fostering producers and other human resources that support suchactivities, utilizing cultural assets, and promoting formation of new social
models that yield profits.
・The government will push ahead with “Culture Programs” on the nationwide
scale (200,000 events by the year 2020) to dig up cultural/art resources anduse them for regional revitalization and provide cultural/art information
about the Cultural Programs at home and abroad. In this process, with aneye on the aftermath of the 2020 Tokyo Olympic/Paralympic Games, thegovernment will work on “Beyond 2020 Programs” and improve Japaneseculture that contribute to creation of legacies on the nationwide scale.
・The government will widely encourage participation of handicapped people,
elderly citizens, parent and child, and other citizens in cultural/art activities,
investigate/analyze/apply to other cases precedent best practices that leadto acquisition of potential customers or players and business creation in
local communities, and accelerate projects such as holding workshops on
the nationwide scale.
iv) Yielding spillover effect by investing in sectors closely related with
culture[1] Cultural information and marketing expansion strategy that employs
new technologies/methods with focus on contents
・Development and diffusion of IoT technologies are anticipated to expand
contents delivery opportunities and create new markets. The government
will encourage technological development based on the content technology
map and push ahead with further development of the content industry andcreation of new industries in a way to contribute to Cool Japan Strategy. In
particular, it will work with other stakeholders on doing R&D or creating
new schemes in high-growth areas, such as virtual reality (VR).
・The government will support effective information services on regional
appealing points or wide-area projects through cross-sectional
collaborations between content industry, tourism or manufacturing industry
or fosterage of promising regional creators. To cultivate new overseas
markets for contents, it will also encourage content utilization by giving
support or enhancing international collaboration to collecting rights data, or
voice-over acting or other localization tasks.
・The government will push ahead with fostering human resources, such as
creators or producers through practical activities (OJT) in Japan’s world-61

class cartoon/animation/game or other media art sectors, creating archiveof media art fields and providing such information overseas.
[2] Strategically employing cultural potentials by using design
As design is playing more and more important roles in differentiation
strategies of products and services, the government will take the following
actions from the viewpoint of making use of cultural potentials.
・ To spread out and teach design utilization methods for corporate
management purposes such as incorporating diverse needs into designs
easily understandable for customers, the government will develop an action
plan by the end of this fiscal year, including enhancing information services
on pioneering firms and encouraging industry-academia-government
collaboration.
・ To recognize again cultural values rooted in all areas in Japan and makethem economic values, the government will provide designer
dispatch/collaboration support to corporations/organizations as well as
startup assistance by designers.
・ The government will take concrete policy actions to support humanresources development projects or set up appropriate framework, such as
introducing new curriculum incorporating design, technique and corporate
management elements at higher education institutes (universities or art
colleges).

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6. Revitalization and productivity improvement of service industry(1) Progress in achieving KPI<KPI> “Aim to send up labor productivity growth rate of the service
industry to 2.0% by the year 2020 (from 0.8% in 2013)”⇒1.0% in 2014(2) Specific new measures to be taken
For revitalization and better productivity of the service industry, the governmenthas been taking cross-sectional and sector-specific policy actions to send up laborproductivity in service industry by 2.0% by the year 2020 in line with “Service
Industry Challenge Program” (as decided by Headquarters for Japan’s Economic
Revitalization on April 15, 2015). To further advance efforts of “Service Industry
Challenge Program” in the future, the government will create new growth firmsthat serve as a driving force for revitalization and productivity improvement ofservice industry, make further efforts for improving productivity in each sector inline with applicable legal framework, and push ahead with local community
projects through utilization of SME organizations. In addition, the Council for
Productivity Improvement of Service Industry will push ahead with its activities tosend up productivity.
i) Creating 10,000 growth firms that achieve 10% productivity growth rate
By spreading out on the nationwide scale the best practices collected through“Nihon Service Award” since last July and deploying all policy programs
including “Manufacturing/Commerce/Service New Development Support
Subsidy,” the government will support IT-based innovative services
development, and create 100,000 growth firms on the nationwide scale that
achieve some 10% productivity growth rate by the year 2020. It will also start
operating “Hospitality Standards” as new private-sector accreditation criteriathat improve productivity by “visualizing” service quality of each service
provider. To be more specific, working with local governments as well as several
organizations, SME units and related trade associations that have insights on
productivity improvement in the service industry, the government will conduct
demonstration project by the end of this fiscal year for establishing screening
practices as certification authority and get across the outcomes for diffusion of“Hospitality Standards,” aiming at having 300,000 firms accredited by the year
2020. The government will start examination of feasibility of creating an ISO
version of Hospitality Standards by the end of this fiscal year, develop “Service
Overseas Expansion Grand Design (tentative title)” and provide support tooverseas expansion of the service industry through utilizing Japan External
Trade Organization (JETRO).
ii) Improving productivity in each sector
The government will push ahead with model creation/standardization efforts
to improve productivity in each sector of the service industry. Through activities
of “the Council for Productivity Improvement of Service Industry” set up by the63private and public sectors, it will encourage sending up productivity throughutilizing knowhow in other industries, such as manufacturing sector. While
making use of outcomes of these efforts, the government will work with tradeassociations or SME organizations to develop as soon as possible sectoral
guidelines, including 7 areas (transport, medical, nursing-care, childcare,
restaurant, hotel, and wholesale/retail) covered with “Service Industry Challenge
Program” in accordance with “Act for Amending a Part of the Act for
Facilitating New Business Activities of Small and Medium-sized Enterprises”(the Small and Medium Sized Enterprise Manufacturing Enhancement Act on
May 24, 2016). Then, the government will get across such guidelines throughSME organizations, etc., make use of a tool for conducting business diagnoses“Local Benchmarks” (Benchmarks for Local Companies) and provide support
to IT introduction or management guidance in a suitable manner forcharacteristics of the service industry, aiming to encourage active utilization of
applicable schemes.
iii) Improving local productivity through utilization of SME support
organizations, etc.
Aiming at “competitiveness enhancement and productivity improvement ofregional service industry,” the government will, by making use of Regional
Revitalization Promotion Subsidy, push ahead with setting up regional councils
that will examine, conduct and diffuse specific actions at a regular interval.
Through exchanging opinions at these councils, and while utilizing “Local
Benchmarks” (management indicator/evaluation method developed in thisMarch as reference for management assistance to improve productivity ofregional firms) in addition to sector-specific guidelines and best practices in linewith SME Corporate Management Enhancement Act, the government willencourage financial institutions and SME support organizations to deepen
dialogues with corporations. In the wake of these efforts, the government willencourage supply of growth fund to enterprises that strive to improve
productivity without resort to collaterals or personal guarantee through further
bringing out loans or consulting services based on commercial feasibility
evaluation by regional financial institutions. In addition, the government will
make a list of human resources as IT experts including regional IT consultants
prepared with IT coordinator associations or IT-related organizations and a listof human resources as service support experts related with Kaizen(improvement) activities in the workplace of service or development of a newservice, sharing with SME support organizations such as local SME and micro
firm counseling desk “Yorozu (general) Support Centers”, which are counselingservice counters for local SMEs and micro firms. Then, the government will alsoutilize SME support projects to enhance counseling services at the local level.

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7. Achieving reform among mid-ranking companies, SMEs andmicro enterprises(1) Progress in achieving KPI<KPI> Create consortia under industry-academic-government-financial
sector collaboration and provide support to 200 pioneering
technical development projects that employ local technologies
every year and some 1,000 projects for 5 years* KPI newly set out this time
<KPI> Ensure business startup ratio exceeds business closure ratio andaim at sending up business startup/closure ratio to the level of theUnited States or the United Kingdom (larger than 10% but
smaller than 20%) (currently business startup ratio and businessclosure ratio both stand at 4.5% (average for 2004-2009)⇒FY2014: Business startup ratio at 4.9% and business closure ratio at
3.7% (FY2013: Business startup ratio at 4.8% and business closure
ratio at 4.0%)⇒ Early-Stage Entrepreneurial Activity Index (FY 2015): 4.8% (FY
2014: 3.8%)* Regarding the startup/closure rate, the government has set a goal to"double the Early-Stage Entrepreneurial Activity Index (thepercentage of respondents who answered that they are"entrepreneurs or prospective entrepreneurs" in the “Survey onentrepreneurial spirit”) in coming 10 years" as a supplementaryindex looking ahead for the next 10 years, as it will require not only
the government policies but also change in social attitudes toward
entrepreneurship, which makes it a long-range goal.
<KPI> Increase the number of profit-making SMEs and microenterprises from 700,000 to 1.4 million by the year 2020
⇒FY2014: 859,753 enterprises (FY2013: 805,979 enterprises)(2) Specific new measures to be taken
The government has been implemented capital investment tax reduction todate, aiming to create core firms serving as a driving force in local economies,
enhance “Earning Power” of SMEs and micro enterprises through utilization ofregional resources and improvement of regional innovation capacity, and backup SMEs and micro enterprises making investment in productivity enhancement.
In addition, the government has also introduced fixed property tax reduction to
encourage capital investment for sending up productivity. Furthermore, thegovernment has been making efforts to strengthen Yorozu Support Centers,
which are one-stop counseling services for SMEs and micro enterprises, andenhance transaction capabilities of SMEs and micro enterprises, aiming at
expanding virtuous cycle.
In the future, with target set at SMEs and micro enterprises serving as a driving
force in local economies, the government will back them up in expanding their65

operations to the world markets in order for them to play more important rolesin their local economies. In addition, while working on enhancing regionalinnovation capabilities, the government will thoroughly back up mid-ranking
companies, SMEs and micro enterprises in improving their productivity throughIT utilization, as well as in enhancing their profit-earning capacities andimproving their trade terms and conditions.
To spread out the best business practices on nationwide scale, collaboration ofregional support organizations is absolutely essential. The government will workon networking and quality improvement of regional support organizations andprovide more effective corporate management support/guidance services.
Addressing manpower shortage due to decreased population, the government
will push ahead with local employment and occupational training support.
In the future, aging of business owners of SMEs and micro enterprises will befurther advancing at the local level. At the same time, overt decreased population
may pose an impact on local economy structure. In this context, the government
will examine appropriate support programs for SMEs and micro enterprises fromthese medium-term perspectives.
i) Establishing “Earning Power” of regional mid-ranking companies,
SMEs, and micro enterprises[1] Supporting growth of regional core firms moving toward the global
marketBy setting up regional innovation consortia consisting of industrial, academic,
government and financial sectors, the government will, among local mid-ranked
firms or SMEs, pick up corporations with highly-competitive technologies andpromising potential to grow to local core firms serving as a driving force ofregional economy by effectively using insights of universities on excellent
technical capabilities, corporate data held by regional financial institutions, andRegional Economy Society Analyzing System (RESAS). By effectively
deploying support staff, the government will provide support to setting up
collaboration schemes between regional core firm candidates and partner firms
or universities, and developing commercialization strategies for further growthof regional core firms, their efforts for cultivation of sales channels and R&D
activities in anticipation of their possible sales channels. From this fiscal year
onward, the government intends to provide support to 200 innovative projects
including the aforementioned efforts and some 1,000 projects in the next 5 years.
Furthermore, by setting up Global Network Council (tentative name), thegovernment will organize global coordinators (tentative name) consisting ofexperts with deep knowledge of commercialization strategies effective in the
global market and provide support to commercialization strategy development
or sales channel cultivation with an eye to the global market.
[2] Supporting overseas expansion of regional SMEs in the wake of TPP
The government will set up appropriate framework to provide courteous
information/counseling services on TPP and on how to use TPP so that midranking firms or SMEs will be able to cultivate their markets in the wake of TPP.
Utilizing experts with deep knowledge of overseas business under “New Major

66

Export Nation Consortium” newly established this February, the government
will support adjustment of necessary support programs, development of overseas
business strategies, availability of local human resources, acquisition of overseas
accreditations and cultivation of sales channels, aiming that more than 60% of
firms eligible for comprehensive support program will successfully expand theirmarkets or business operations.
[3] Pushing ahead with local innovation
The government will foster world-class research projects by encouraging
international joint research projects or deploying research assistants throughinviting high-quality foreign researchers at some 20 bases centering on regional
universities with potential for high-level research capabilities.
The government will encourage local mid-ranking firms and SMEs to put inpractice new technologies through conducting joint research projects in tie-up
with bridging research institutes with technological seeds. In addition, it will also
push ahead with nationwide collaborations with national research anddevelopment agencies and public test/research institutes by enhancing/utilizing
bridging schemes or human resources. The government will create businessproduction teams at regional universities with focus on local core technologies(a source of competitive edge), aiming to yield Japanese-style innovation eco
systems.
Furthermore, through intensified efforts from development of newtechnologies to societal implementation, the government will work on
revitalizing regional economy in Fukushima Hamadori area through newindustrial clusters. To be more specific, it will create research/demonstrationbase of robot or reactor decommissioning by inviting human resources at home
and abroad under Innovation Cost Initiative in order to push ahead with specificprojects in energy (including projects under “Fukushima New Energy Society
Initiative”) and agriculture/forestry/fisheries sectors. Through enhancing
support for local firms by a public-private joint team, it will push ahead withthese projects by involving companies inside/outside local communities.
As for acquisition or utilization of patent rights by SMEs, the government will
strengthen intellectual property strategies of SMEs and beef up necessary
screening framework from this fiscal year through increasing on-site interviews
at SME premises, spreading out patent practices with focus on foodfunctionalities and promoting cooperation with SME support organizations. In
addition, National Center for Industrial Property Information and Training(INPIT) will, in this fiscal year, start examine diversification of support
programs such as intellectual property investigations for developing intellectual
property strategies, aiming to expand support programs gradually from the next
fiscal year onward.
For accelerating standardization of highly-competitive technologies/productsof mid-ranking companies or SMEs, METI and Japanese Standards Association(JSA) will work with local governments, industrial promotion organizations,financial institutions, universities or public research institutes to dig up
standardization projects by expanding partner organizations of “Standardization
Utilization Support Partnership Program” into 47 prefectures nationwide.

67

[4] Supporting improvement of productivity of mid-ranking companies,
SMEs and microenterprises including IT utilization
Based on “Act on Amending a part of Act for Facilitating New Business
Activities of Small and Medium-sized Enterprises (SMEs Business
Enhancement Act)” (passed on May 24, 2016), the government will develop
sector-by-sector new guidelines on efforts for improvement of corporate
management capability of each sector as soon as possible. It will also work withsector-by-sector management capability improvement organizations to diffuse
any best practice on management capability improvement in an easily
understandable manner. In addition, it will also examine new framework tointensively support certified corporations sending up their productivity.
Furthermore, the government will push ahead with providing fine-tuned support
programs to micro enterprises from corporate management coaches ofcommerce and industry associations/chambers that are the closest support
organizations. It will also support sales channel cultivation of micro enterprisesthat work on sending up their productivity.
In particular, to send up productivity of SMEs under manpower shortage, thegovernment will make efforts in collaboration with private sector to push ahead
with laborsaving based on IT solutions or robots. With an eye on arrival of the
fourth industrial revolution, the government will work with commerce andindustry associations/chambers to hold introduction/counseling sessions on IT
utilization or introduction cases, aiming to reform awareness among businessowners of SMEs and micro enterprises, while paying due attentions to security
solutions.
In addition, experts at IT, Kaizen activity or robotics will provide support toat least 10,000 companies in the next 2 years. In this process, the government
will start in this fiscal year establishing new bases to consult “Smart
Manufacturing Supporters” that back up production-related Kaizen activities,
IoT or robot installation tasks at mid-ranking companies or SMEs.
In addition, the government will push ahead with IT investment or laborsaving
investment in line with actual corporate business conditions, ranging from efforts
for sales channel cultivation of online sales or other sales of micro enterprises tocreation of new products/services based on IoT or big data of SMEs or microenterprises, and smooth intercompany collaboration beyond industrial sectionalboundaries.
[5] Improving trade terms for subcontractors
To expand virtuous cycle into SMEs and micro enterprises on the nationwide
scale, it is important that business practice for employers to pay “appropriate
prices” for “high quality” should take root in Japanese industries throughdiffusion of government-labor-employer agreements. To this end, it is essential
to enhance effective countermeasures suitable for actual subcontracting
conditions, such as strictly dealing with unfair practices. Subcontractors arefacing difficulties in opposing inappropriate terms and conditions for fear of
possible suspension of business transactions. In this context, the government will
strive to improve terms and conditions for SMEs by simultaneously securingterms and conditions for large corporations at an appropriate level and enhancing

68

bargaining power of SMEs through holding hearing sessions on procurement
practices or related projects of large companies, enforcing Subcontractors Act ina stricter manner, further getting across subcontracting guidelines on problematic
business practices and best practices, and expanding functions of subcontractor
shelter to diffuse negotiation knowhow. In addition, the government willcontinue figuring out business practices and provide information services to set
appropriate business practices in place.
[6] Enhancing collaborations among business support organizations for
local SMEs and micro enterprises“Yorozu Support Centers,” one-stop counseling service counters that provide awide variety of support services for SMEs and micro enterprises, will play thecentral role to hold “Regional Support Organizations Collaboration Forum(tentative name)” in each prefecture, consisting of support organization
stakeholders such as commerce and industry associations/chambers, in order todeepen information exchange and regional collaborations and to push ahead with
networking of regional support organizations.
As for nationwide scale policies, the government will hold “SME National
Organizations Council” consisting of business support-related Yorozu Support
Centers or commerce and industry associations/chambers to widely spread out
action plans of each organization, examples of collaboration among support
organizations and good practices of each support organization. By doing so, thegovernment strives to enhance capabilities of regional support organizations andstrengthen mutual collaborations.
In addition, the government will make efforts to provide corporate support
knowhow, aiming at improving business support capabilities of business
instructors at commerce and industry associations/chambers.
[7]

Enhancing financial capabilities and accelerating business
revitalization or business succession to create “Earning Power” of
SMEs and micro enterprises
While utilizing business management indicators and evaluation methods(local benchmarks) useful for business support to improve productivity of local
firms, the government will encourage local financial institutions or support
organizations to have deeper dialogues with companies and provide growth fundto corporations striving to send up their productivity without dependence on
collaterals or personal guarantees.
The government will make take all possible steps to ensure financing of SMEs
or micro enterprises by considering their business conditions, such as taking
flexible actions at the time of emergencies or spreading out financing practices
without dependence on personal guarantees of business owners. While
expanding financial support programs, the government will draw a conclusion
on institutional measures by the end of this year by designing detailed program
to reexamine credit guarantee program so that financial institutions andcorporations will make further efforts for business performance improvement or
higher productivity. To encourage business revitalization or business successionof local SMEs, the government will examine necessary actions for providing

69effective support for business revitalization, achieving smoother businesssuccession and facilitating business management innovation through businesssuccession, and it will draw a conclusion on institutional measures by the end of
this year.
[8] Securing/fostering human resources by SMEs and micro enterprises
The government will find out human resources needed by local SMEs or
micro enterprises from among young people, women, senior citizens or otherdiverse human resources inside/outside the local community and provide referraland long-term employment support services. For example, the government will,in line with local needs, hold interaction meetings between SME businessowners and university students, training sessions for young corporate staff forlong-term employment purpose, joint company information sessions for women,referral/information seminars for utilization of senior human resources, seminars
for utilization of subsidy related to corporate employment and information
sessions on strengths of local companies for urban human resources.
By supporting activities of Professional Human Resources Strategic Base in
46 prefectures, the government will find out corporations with growth potentials
and expand job opportunities for professional human resources that havepossibility to go back to local area. It will also enhance collaborations between
urban large corporations and the said strategic base to encourage training
sessions or other human resources interactions and diversify workstyles ofprofessional human resources going back to local area, including dual
employment in local areas and Tokyo.
In addition, the government will provide support to business owners in any
sector that strive for long-term employment by launching employment
management program. The government will also provide SMEs as well as midranking firms with support for professional knowledge/skill acquisition so thatthey will foster newly-hired employees as their core human resources. By doingso, it will continue working on securing/fostering human resources for local midranking companies and SMEs.
[9] Revitalizing local downtown areas and shopping streets
With decreased population, lower birthrate and aging population progressing,
revitalization and maintenance of local downtown areas and shopping streets are
absolutely necessary for stimulating local economies. To this end, in line with“Comprehensive Policy Package to Support Local Community Building”
developed at the end of March 2016 and some other guidelines, the government
will spread out and expand “profitable community building” projects throughanalyzing earning powers and developing/verifying visions or action plans, andprovide support to creating/repairing commercial facilities that yield significant
spillover effect as a part of the said community building projects. It will also
support and spread out on the nationwide scale projects of drawing on inbounddemand at model-type shopping streets in Japan, enhancing local community
capabilities including elderly care services by using point card programs,
revitalizing shopping streets and sending up their productivity.

70[10] Encouraging spread of business continuity plans (BCPs) to diverseareas
To create disaster-resistant and flexible socioeconomic structure, it isimportant to actively push ahead with several projects including development ofbusiness continuity plans in preparation for emergencies. For creating newframework in which a third party will accredit corporations working on suchprojects, the government publicly announced certification-related guidelines in
February this year. In this context, certification bodies started soliciting for
certification projects in April.
In the future, the government will make this project known to the public byholding briefing sessions nationwide in tie-up with certification bodies, aiming
at some 100 certification projects in this fiscal year and 400 projects for 3 years.
Along with this, the government will collect and publicly announce noteworthy
projects of certification bodies. From the viewpoint of enhancing incentives forcompanies to get certified, the government will coordinate with related
ministries/agencies and explain or get across to financial institutions granting
loans related to BCPs, aiming to widely diffuse efforts for business continuity.

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8. Achieving manufacturing-oriented industrial revolution(1) Progress in achieving KPIs

<KPI> Expand the robot domestic production market size to 1.2 trillion
yen in manufacturing sector and 1.2 trillion yen in nonmanufacturing sector, including service sector in 2020
⇒FY2014: Approximately 590.1 billion yen in manufacturing sector;
some 61 billion yen in non-manufacturing sector(FY2013: Approximately 503.7 billion yen in manufacturing sector;
some 47 billion yen in non-manufacturing sector)<KPI> Send up labor productivity in the manufacturing industry by morethan 2% per year
⇒2014: +2.0% (on the year-on-year basis)(2013: +1.2% (on the year-on-year basis))
KPI> Expand the robot nursing-care equipment market size to some 50
billion, approximately 260 billion yen in 2030 [some 1 billion (in2012)]⇒2014: 1.27 billion yen<KPI> Successfully achieve remote monitoring-based unmanned
automatic driving systems, such as mobility between agricultural
fields, by 2020
* KPI newly set out this time(2) Specific new measures to be taken
As efforts to eliminate so-called “6 major problems” are steadily progressing,business performance of corporations in the manufacturing sector is improving. On
the other hand, lower birthrate and aging population have been showing a stronger
sign of manpower shortage, posing obstacles for domestic production expansion.
In this context, rapid digitalization coupled with emergence of new customer
needs backed by social situations has changed the source of value added: From
“goods” to “services” or “solutions.” Making use of their competitive edge,
corporations need to switch over to new business models.
In particular, speedy actions are necessary to cope with the fourth industrial
revolution, which has resulted from IoT, big data and artificial intelligence.
Business models themselves are changing at a faster pace than anticipated. For
example, automobile industry, which serves as a driving force in Japan’s economic
growth and has one of the most efficient supply chains in the world, has beenaddressing new business model called automatic driving. In the future, such
movement will spread out to the entire manufacturing sector.
As for smart factories, the government is planning to suggest international
standards and create at least 50 pioneering projects by the year 2020 that utilize
sensor-collected data beyond organizational boundaries, such as plant-to-plant,
plant-to-headquarters and company-to-company projects. It is necessary to steadily
actualize these projects by further enhancing collaborations with foreign countries,

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including Germany that issued joint statement in this April.
In addition to these efforts, for example, materials-related sector in which Japan
has competitive edge has started pushing ahead with efficient R&D efforts inintercompany collaboration projects using IoT and big data in terms ofdevelopment of innovative materials.
In apparel sector, so-called mass customization movement is accelerating. In
shipbuilding sector, development/production process productivity is improving
through utilization of simulation or 3D data. In biotechnology sector, genic
modification or growth condition control by using artificial intelligence or other IT
technologies will yield new trend to easily extract and utilize biotic functions.
In addition, industrial machineries, construction machineries and robots sectors
are seeing a shift to new business models: Enhancing after sales services, shifting
away from sale of machines; and providing solutions in relation with manpower
shortage by offering in-depth and efficient work management. Toward actualizing
next-generation robots, it is necessary to accelerate R&D on highly accurate
sensors, camera systems and other technologies.
In aircraft industry in which a lot of state-of-the-art technologies are used formaterials or functional goods due to high-level safety and efficiency requirements,
growth rate is estimated to stand at 5% in the future. In the world, new businessesor new services that make use of high-precision location/image data are created,backed by establishment of space infrastructures, such as positioning satellites orremote sensing satellites. For this reason, space-related market is anticipated to
grow rapidly. It is necessary to maintain and send up competitive edge in thesegrowth sectors and foster future growth seeds in Japan’s manufacturing industry.
i) Actualizing robot-based new industrial revolution[1] Implementing and advancing robots new strategy
Based on the follow-up in this May on how action plan in Robot New
Strategy is implemented, the government will steadily implement and further
bring forward sectional projects (manufacturing, services, nursingcare/medical, infrastructures/disaster countermeasures/construction,
agriculture/forestry/fisheries/food sectors).
・“Robot Revolution Initiative Council” will examine feasibility of suggestionof international standards or identification/creation of innovative projects in
tie-up with Germany in relation with business innovation or smart device
installation in the manufacturing sector by using IoT or big data. To actualize
next-generation robots, the government will start in this fiscal year
establishment of global research base on multi-sectional areas of technology
and artificial intelligence, such as high-accuracy sensors and camera systems.
In this process, it is necessary to work with Artificial Intelligence Technology
Strategic Conference.
Robots incorporate certain behavior patterns beforehand and correctly andquickly repeat tasks on the assumption that data input is homogenous to acertain extent. Researchers will develop element technologies, aiming to put
in practice next-generation robots that autonomously operate with artificial
intelligence, while learning. In addition, while working with projects on R&Dor putting in practice artificial intelligence, and aiming at actualizing a new73

robot society where several robots recognize their surrounding environment
and autonomously work one another, the government will push ahead withtechnological development and demonstration works in diverse areas, such as
movement of humans, transportation of goods, countermeasures on disasters
and maintenance of infrastructures.
・The government will push ahead with providing appropriate environment forlaborsaving of infrastructures inspection services, such as introducing on trial
basis new robots capable of inspecting certain infrastructures and developing
robot inspection procedures based on the outcomes of such trial run from thisfiscal year. By setting out clear development targets with robot performance,
policymakers will encourage developer manufacturers to participate if they
are willing to put them in practice. As for anti-disaster robots, policymakers
will encourage utilization of such robots by concluding disaster agreements,
etc. on disaster investigation and first-aid recovery robots with superior
performance suitable for on-site conditions. In addition, the government will
prepare evaluation criteria, etc. that require robots to satisfy multiple basic
performances at the same time under disturbance environment with multiple
factors, such as wind, rain or radio wave.
・The government will work on halving volume of documents, including forms
needed for civil services, and further push ahead with development support onuser-friendly robots suitable for on-site needs and introduction of robots andsensor technologies to nursing-care service providers. To collect/analyze
outcome data such as higher productivity of nursing-care services byintroducing robots, etc. policymakers will quickly decide demonstration fields
and start projects within this fiscal year. Based on available data collected andanalyzed in this way, while paying attentions to incentives in a way tocontribute to reducing burdens in nursing-care sector, the government will
examine, and draw a conclusion on within the next fiscal year, appropriate
systematic evaluation approaches on robot-based nursing-care services,
including review of nursing-care reward scheme, manpower distribution andfacility criteria. It will push ahead with standardizing nursing-care-related data,
analyzing/standardizing introduction of ICT to nursing-care records, diffusing
appropriate care management approaches and evaluating service quality.
By working on these projects, the government will encourage improving
nursing-care services in order to send up service quality through appropriate
nursing-care services serving for self-reliance support for elderly persons,strive for higher productivity of nursing-care services and mitigate burdens on
nursing-care staff. [Described above]
・The government will support industry-university joint research projects andcreate safety guidelines within this fiscal year so that high-precision GPS orother geospatial information (G geospatial information)-based tractor
automatic driving systems or man-monitored agriculture field unmannedsystem will become commercially available by 2018. In addition, to actualize
remote monitoring-based unmanned automatic driving systems, such as
mobility between agricultural fields, by the year 2020, the government willfurther push ahead with joint research projects and establish appropriate
framework.

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[2] Spill over the Fourth Industrial Revolution by encouraging midranking companies and SMEs to utilize IT and robots [Describedabove]
・To accelerate robot investment at mid-ranking companies and SMEs with focus
on manufacturing or service sectors, the government will reduce generalpurpose small robot prices and installation cost by 20% or more and accelerate
robot installation at mid-ranking firms and SMEs. To this end, researchers willdevelop platform robots usable for general-purpose tasks/processes andcapable of fulfilling common functions, and will make clear robots installation
procedures. In addition, policymakers intend to double human resources
supporting robot-based system establishment/installation works (system
integrators) within 5 years (from the current 15,000 to 30,000 in 2020).
・To push ahead with the Fourth Industrial Revolution for the entire Japan, IT,
Kaizen activity and robot technology experts will help at least 10,000 midranking companies or SMEs in collaboration within the next 2 years. In thisprocess, the government will start in this fiscal year establishing “Smart
Manufacturing Support Team” offices that support production site Kaizen
activities and IoT/robot installation tasks at mid-ranking companies and SMEs.
・ In addition, policymakers will encourage IT investment and laborsaving
investment in line with employer’s actual business conditions, ranging frommicro enterprises’ efforts for cultivating online or other sales channels to SME
and micro enterprise’s creation of new products/services through utilizationof IoT or big data, or to smoother intercompany collaborations beyond
sectoral boundaries.
[3] Creating appropriate environment for accelerating R&D and societal
implementation
To accelerate robot R&D and encourage demonstration experiments for
installation/diffusion in actual society, the government will, at an early timing inthis fiscal year, start establishing some 50ha-large big robot test fields and R&D
facilities for demonstration experiment on unmanned aircrafts and anti-disasterrobots in Fukushima Hama-dori area under Innovation Coast Initiative.
To develop safe robots with appropriate capabilities, policymakers will set up
review teams consisting of robot manufacturers, users, academic experts, etc. on
physical distribution, infrastructures inspections or disaster countermeasures atrobot test fields and start R&D on evaluation criteria and their verification
methods with eye on international standards on robot capabilities or operation
skills necessary for each sector in this fiscal year.
In addition, to accelerate R&D and societal implementation, the government
will hold robot international contests on competitions/demonstrations for solving
various social matters by making use of high-level robot technologies in a way
to attract world’s attentions in 2020. To hold such contests, Robot International
Games Executive Committee and Robot International Games Executive
Committee Advisory Conference set up last December will examine, and makedecision on within this year, what contests should be or how such games are held.
ii) Expanding aircraft industry
To achieve GDP of 600 trillion yen, the government will work on growth of75

Japan’s complete aircraft industry as a driving force for growth, breaking awayfrom the current small-sized industry, enhance strategic R&D from dual use
perspectives and significantly send up productivity by utilizing IoT, such as
applying robots to aircraft production process. By enhancement andtechnological development in materials/parts industries led by local core firms,
the government will foster supporting industries in local communities. It aims to
expand overall sales of Japan’s aircraft industry to 2 trillion yen in 2020.
iii) Enhancing/expanding space equipment/utilization sectors
As space equipment/utilization sector markets are anticipated to expand
rapidly in the world in the future, the government will issue its interim reportaround this summer in line with “Space Industry Vision (tentative name),” whichsets out growth targets of Japan’s space industry and outlines possible problems
and policy actions to achieve such growth targets.
As for space equipment sector, policymakers will work to cultivate overseas
markets on the full-scale basis and win some projects from customers in Asia,
Middle East or some other promising market. The government will establish new
public-private collaboration scheme under “Space System Overseas Business
Expansion Task Force.” To enhance international competitive edge of Japan’s
space industry, the government will push ahead with development on H3 rockets
and next-generation satellites. In line with Bill on Launch of Artificial Satellites,
etc. and Management of Artificial Satellites, the government will provide
appropriate business environment for private-sector enterprises to participate in
the rocket launching market, which is anticipated to expand in the world in the
future.
For industries that use geospatial information (G geospatial information) or
outer space, the government aims to create new businesses or new services thatwill play pioneering roles in the world, such as upgrading agricultural equipment
automatic driving solutions, smart forestry, unmanned machine cargo transport
services or anti-disaster systems through utilization of quasi-zenith satellite
systems, various remote sensing satellites and G geospatial information centers.
To this end, policymakers will develop KPIs for major categories and roadmap
to attain them within this year and amend Basic Plan on Promoting Geospatial
Information Utilization within this fiscal year. By providing high-level security
for quasi-zenith satellite systems, the government will provide stable user
environment for the said satellite systems. Through activities of “Space New
Economy Creation Network (S-NET)” to provide arena for space/non-spacesector firms, policymakers strive to create outer space-related ventures andencourage new business models and technological innovations, and aim at
creating 100 outer space-related new projects by the year 2020. In addition, inline with Bill on Appropriately Handling Satellite Remote Sensing Records, thegovernment will make efforts to reduce satellite remote sensing records
utilization projects and foster satellite operations/image sales businesses.
The government will further push ahead with its efforts to developinternational rules on outer space, as they are essential to enhance/expand thespace sector, including prevention of emergence of space debris.

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9. Revitalizing the housing market with focus on existing houses trading
and renovation markets(1) Progress in achieving KPI<KPI> “Double the existing houses trading market size to 8 trillion yen
by the year 2025 (from 4 trillion yen in 2010); Efforts should bemade to achieve this KPI by the year 2020 as much as possible.”⇒2013: 4 trillion yen<KPI> “Double the renovation market size to 12 trillion yen by the year
2025 (from 6 trillion yen in 2010); Efforts should be made toachieve this KPI by the year 2020 as much as possible.”⇒2013: 7 trillion yen(2) Specific new measures to be taken
With population decrease, lower birthrate and aging population, further
economic growth will require cultivation/fosterage of new housing market in
addition to newly-built house market. Many Japanese people recognize homepurchase as their goal in their life and their houses are not necessarily wellmaintained/managed after getting purchased. In this context, existing houses
trading/renovation markets are not so active.
For this reason, the government will create and revitalize existing houses
trading/renovation markets, shifting to “new house circulating system” in which
high-quality housing stock will be evaluated as an asset and traded to the next
generation even after a few decades. To restrain an increase in vacant houses, thegovernment will establish “new house circulating system” and push ahead withreplacing older houses by rebuilding projects.
The government will aim at growth of new related industries by encouraging
diffusion of IoT technology-based next-generation houses.
Furthermore, to mitigate housing expense burden on young or child-rearing
households and provide comfortable child-rearing environment, the government
will push ahead with utilizing existing houses, including vacant houses.
i) Creating existing houses trading market in which houses are evaluated as
an asset[1] Creating trading market for high-quality and appealing existinghousesTo establish “new house circulating system” and create existing houses
trading market, it is necessary to expand trading volume of high-quality andappealing existing houses and create a framework for appropriately evaluatingsuch housing stock.
To be more specific, the government will improve quality of existing houses
by supporting energy-saving or “long-life quality housing” renovation projects
and secure quality backed by building status investigations (inspections) anddefects insurance policies.
The government will provide support to creation of trading/financial

77

framework for evaluating asset value of existing houses, and launch registration
program for “Premium Existing Houses (tentative name),” which are highquality and highly appealing products.
By comprehensively taking these policy actions, the government will create
existing houses trading market that evaluates houses as an asset and mitigate
post-retirement anxieties due to decreased asset value of houses, aiming to
expand consumption.
[2] Eliminating nonperforming assets and encouraging new investment
The government will stimulate removal and reconstruction of former quakeproof standard-based houses, including vacant houses. It will examine feasibilityof new framework to streamline consensus-formation rules for encouraging
reconstruction of condominiums with many vacant units. To facilitate
identification of vacant house owners and push ahead with their removal orreconstruction, the government will examine possible new scheme to encourageinheritance registration procedures. Through these efforts, the government will
work on eliminating nonperforming assets and encouraging new investment.
ii) Encouraging diffusion of next-generation houses
To address various residence needs and expand housing life industry related
to IoT technology or other new technologies, the government intends to workwith related ministries/agencies, housing-related makers, etc. to collectinformation on pioneering cases of leading-edge next-generation houses, such as
IoT houses, health houses or security houses, and identify various challenges,
including feasible approaches to encourage introduction of related equipment’s
standards, within this fiscal year, aiming to examine next-generation houses’
functional capabilities and their future visions and diffuse next-generation
houses with a view to overseas markets.
iii) Mitigating housing expense burden on young or child-rearing
households by effectively using existing houses[1] Mitigating housing expense burden on young or child-rearing
households by effectively using existing houses
To mitigate housing expense burden on young or child-rearing households byeffectively using existing houses, the government will create new frameworkthat employs existing private-sector rental houses such as vacant houses, so thatyoung or child-rearing households will easily move in to housing units withnecessary quality and space at an affordable rent. To this end, a panel inHouses/Housing Sites Committee under the Social Infrastructure Improvement
Council will examine related matters and draw a conclusion on the direction of
new scheme within this fiscal year. And the government will quickly create
existing houses market in which high-quality and appealing existing houses areeasily available.

78[2] Setting up local community-based child-rearing environment
To provide community-based child-rearing environment in cooperation with
community building projects, the government will provide support to invite
child-rearing support facilities into public rental housing complexes in the wakeof their reconstruction or accelerate establishment of child-rearing support
facilities at private-sector housing complexes.

7910. Overcoming environment/energy constraints and expanding
investment(1) Progress in achieving KPI<KPI> “Legally separate power transmission and power distribution services
on April 1, 2020 as the final stage of electric power system reform”⇒Setting up OCCTO (Organization for Cross-regional Coordination ofTransmission Operators, Japan) on April 1 of the last year; The Diet
passed Act to amend a part of Electricity Business Act (Act #47 in
1952) on June 17 of the same year, which includes legal separation of
power transmission and distribution sectors; Setting up Electricity
Market Surveillance Commission on September 1 of the same year
(reorganized as Electricity and Gas Market Surveillance Commission
on September 1 of the same year); and Full liberalization of electric
power retail sector started on April 1 of this year
<KPI> “Aim to boost the percentage of next-generation automobiles
among new car sales to 50-70% by the year 2030”⇒Next-generation automobiles as a percentage to overall new car sales
stand at 29.3% (in FY 2015)<KPI> “Set up some 160 commercial hydrogen stations by FY2020 andabout 320 stations by FY2025”⇒76 stations are already set up (at the end of this March)<KPI> “Create ‘Negawatt Trading Market’ that trades saved electric
power in the next year”⇒ Conducting technical demonstration for potential evaluation ofdemand cut related with Negawatt trading
To launch energy resource aggregation business on the full-scale basis,the government will set up policy promotion arena, including forum of
industry-academic top management or review sessions where
working-level staff get together.
(2) Specific new measures to be taken
To reform conduct energy systems and achieve appropriate energy mix, thegovernment will push ahead with “Energy Innovation Strategy” (as decided by
Ministry of Economy, Trade and Industry on April 18, 2016) to expand energy
investment and send down CO 2 emission. In addition to these efforts,
policymakers will steadily work on “Anti-Global Warming Plan” (as decided by
the cabinet on May 13, 2016) to simultaneously achieve economic growth andthe FY 2030 greenhouse gas emission reduction target.
In line with the Paris Agreement that sets out the 2 degrees Celsius target,
policymakers will drastically reduce greenhouse effect gas with view to the year
2050. To this end, the government will push ahead with national campaign,
strategically work on reforming social infrastructures and lifestyles, and societal
implementation of technologies for a long term, push ahead with enhancement80

of R&D on innovative technologies and overseas deployment of Japan’s highlycompetitive technologies in line with “Energy/Environment Innovation Strategy”(as decided by Council for Science, Technology and Innovation on April 19,2016) in a way to contribute to emission cut in the world.
In addition, lower resource prices have led to sluggish resource development
investment in the world, resulting in slow-down of the world economy. In thiscontext, in order to underpin sustainable growth of the world economy andmitigate the risk that Japan, where resource consumption heavily depends onimport, will face a sharp rise of resource prices again, the government will
actively encourage resource development investment and make efforts for
procuring resources at affordable prices through fostering/developing LNG andnatural gas trading markets that connect the domestic and overseas markets.
To make Fukushima Prefecture a pioneering location that will open a way torenewable energies and future hydrogen society, public-private collaborative“Fukushima New Energy Society Initiative Council,” which held its firstmeeting in this March, will develop “Fukushima New Energy Society Initiative”
in this summer at latest.
i) Pushing ahead with drastic energy-saving[1] Pushing ahead with energy-saving in the industrial sector
By expanding to distribution/service sectors the sector’s energy-saving top
runner program (benchmark program) for energy-intensive sectors,
policymakers intend to cover 70% of energy consumption of all sectors withthe top runner program by FY2018. The government will enhance energysaving investment support to SMEs by expanding energy-saving counselingregional platforms (i.e., collaborative units that energy-saving supporter has
set up in tie-up with local chamber of commerce and industry, local
governments, consulting firms, financial institutes, etc.) set up at 17 locationsin Japan up until the last fiscal year, and set up energy-saving-related support
service desks on the nationwide scale in the next fiscal year at latest. To
encourage large firms to provide SMEs with energy-saving technologies andactively collaborate with SMEs in energy-saving projects, the government
will review evaluation methods for joint energy-saving projects (amendmentof criteria) in line with Act on the Rational Use of Energy (Act #49 in 1979;
Energy-Saving Act) in this fiscal year, including collaboration with J-Credit
program.
To simultaneously achieve economic growth and energy-saving, thegovernment will review support programs and Energy-saving Act-based
regulatory schemes, aiming at strongly backing up productivity improvement
efforts, such as energy reduction volume, energy-saving for reducing specificenergy consumption, or collaborative energy-saving efforts of several parties
in their sector or supply chain.

81[2] Pushing ahead with energy-saving in consumer sector
Policyholders will make efforts so that a majority of custom-made houses
built by housing makers will be net zero energy houses (ZEH) by the year
2020. To this end, to encourage major housing makers to publicly announce
their target of increasing ZEHs to more than a half of newly-built custommade houses by 2020, the government will reexamine ZEH incentive
framework from this fiscal year. To double energy-saving renovation works
by the year 2020, policymakers will start providing support to insulation
retrofit works with high-performance windows or insulating materials and to
renewal projects to high-efficient hot-water supply facilities.
To newly build net zero energy buildings (ZEBs) by the year 2020, thegovernment will do demonstration for each region, usage or structure fromthis fiscal year and develop ZEB design guidelines based on the demonstration
result by FY2018. Aiming at sending up light emitting diodes (LED) and otherhigh-efficient lighting devices to 100% for flow by the year 2020 and 100%for stock by 2030, the government will expand lighting top-runner criteria to
incandescent lamps within this fiscal year.
[3] Pushing ahead with energy-saving in transportation sector
To send up the percentage of next-generation automobiles to 50-70% of
new car sales in 2030, the government aims to boost the number of electricvehicles (EVs) or plug-in hybrid vehicles (PHVs) owned to 1 million at
maximum by 2020 and that of fuel cell vehicles (FCVs) to some 40,000 by
2020 and 800,000 by 2030. To attain these targets, policymakers will makeefforts for creating initial demand, set up self-sustaining markets at an earlytiming and establish rechargers or hydrogen stations absolutely necessary for
diffusion of these vehicles. The authority aims to set up 160 commercial
hydrogen stations in Japan by FY2020. In parallel, it will also reexamine
regulations on hydrogen stations, such as license of self-filling operations.
Policymakers will strive to set up some 100 renewable energy-based hydrogenstations (relatively smaller station) nationwide by FY2020.
To significantly improve performance of car-mounted batteries and send
down cost, the government will push ahead with R&D on common
fundamental technologies to send up energetic density 5 times (500kwh/kg)
as much as the current level for 5 years from the current fiscal year to FY2030.

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[4] Expanding energy-saving, low-carbon products/services market
through national campaigns
To drastically strengthen national campaign that encourages anti-global
warming “smart choice (Cool Choice)” such as energy-saving, low-carbon
products/services, under collaboration of the government, corporations,groups and local governments, new task forces will be established for LED,
energy-saving consumer electronics or other major sector under “Cool Choice
Promotion Team” in which Minister of the Environment serves as the teamleader in this May. The government will also develop national campaign
implementation plan. It will expand LED, energy-saving consumer electronics
or other related markets by pushing ahead with effective information services
in line with the said plans and household eco diagnosis services that offer
detailed energy-saving suggestions to each household.
ii) Encouraging introduction of renewable energies
In accordance with “Act to amend a part of Act on Special Measures
Concerning Procurement of Renewable Electric Energy by Operators ofElectric Utilities” and related schemes, the government will satisfy both of
maximizing introduction of renewable energies and reducing burdens on
Japanese citizens, and take policy actions as follows.
[1] Eliminating constraints on electric power systems
OCCTO (Organization for Cross-regional Coordination of Transmission
Operators, Japan) aims to develop “Wide-area power system long-term policy”
within this fiscal year, which outlines its basic stance on establishing andrenewing wide-area interconnection grid systems in the future. OCCTO will
also reexamine operating rules on cross-regional interconnection grid systems.
Policymakers will push ahead with developing concrete rules, provide moreaccurate output estimates on photovoltaic power generation or wind power
generation and encourage developing technologies, such as upgrading output
control technologies and battery discharge control technologies.
[2] Pushing ahead with R&D and regulatory system reforms
To make self-reliant and stable renewable energies, policymakers will pushahead with technical development/demonstration on sending up power
generator efficiency or sending down battery system costs as well as R&D on
next-generation energies such as floating-type offshore wind power
generation. The government will also accelerate wind/thermal power
generation environment assessment, provide support such as setting out wind
power generation promotion areas, provide appropriate environment for highpotential offshore wind power generation projects, and reexamine regulatory
framework for securing long-term and stable photovoltaic power generation.

83

[3] Expanding renewable energies in Fukushima Prefecture
To introduce renewable energies at the maximum level and create
innovative models on future new energy society, the government will pushahead with “Fukushima New Energy Society Initiative” to efficiently enhance
power grids, aiming at achieving wind power plan at Abukuma mountains andFukushima Prefecture coastal areas where largescale wind power generation
projects serve as a suitable solution.
iii) Establishing new energy systems[1] Achieving both of power sector’s new market entry and CO 2 emission
cut
To encourage new entrants’ investment under electric power full
liberalization in this April and attain CO 2 emission reduction target at thesame time, the government will take political actions that will encourageachieving the targets of voluntary schemes for electric power sector’s major
players. To be more specific, aiming at surely achieving the electric power
sector’s FY 2030 CO2 emission factor target (0.37kg-CO 2 /kWh) in line withenergy mix and CO 2 emission cut target, policymakers will encourage sending
up power generation efficiency in accordance with Energy-saving Act andpush ahead with lower carbon on on-sale electric power through pushing up
retail-level non-fossil power source percentage to 44% or more based on
Energy Supply Structure Upgrading Act. The government will also ask major
players to cooperate in reporting their actual CO 2 emission factors foremission calculation/report/disclosure purposes in line with Act on Promotionof Global Warming Countermeasures (Act #117 in 1998; Global WarmingCountermeasures Act). Through these efforts, the government will push ahead
with new investment and suspension/abolition or operation cut of old and lowefficient coal-fired thermal power generation. To further improve thermal
power generation’s efficiency, researchers will gradually develop nextgeneration thermal power generation technologies, such as Advanced-Ultra
Super Critical (A-USC) thermal power generation or Integrated Coal
Gasification Fuel Cell Combined Cycle (IGFC) by around 2050.
[2] Establishing IT-based renewable energy/energy-saving hybrid energy
systems and local-production local-consumption energy systems
To launch “Energy Resource Aggregation Business” for IT-based integrated
management/control of customer-side energy resources (photovoltaic power
generation facilities, batteries, demand responses, etc.) for electric power
trading purposes, policymakers will develop negawatt (a type of demand
responses) trading rules within this fiscal year and aim at creating negawatt
trading market the next year. In addition, as experts will examine feasibilityof new capacity mechanism to yield necessary supply capacity (kW) in the
future, policymakers aim to utilize negawatt as much as the United States’level where negawatt already becomes widespread (6% of the maximum
demand), while making sure that negawatt is traded with appropriate value by
FY 2030. The government will work on demonstration on “Virtual power
plant,” which controls customer-side energy resources in an integrated manner84

and serves like a single power plant, and establish 50 megawatt VPPs in
FY2020. Aiming at self-sustained VPPs in FY2020 at latest, policymakers
will establish new scheme for accelerating price reduction within the next
fiscal year. In addition to creating more flexible and stronger energy systems,
the government will push ahead with installation of local-production localconsumption energy systems that will lead to local community revitalizationand effective and stable use of local resources including biomass.
[3] Pushing ahead with achieving hydrogen society
Toward actualizing hydrogen society, the government will accelerateinstallation of hydrogen stations serving as residential-use fuel cells, fuel cellvehicles or infrastructures, expand hydrogen usage, and develop/demonstratehydrogen-related technologies such as hydrogen power generation gas
turbine-use combustors or liquefied hydrogen carrying vessels, aiming at fullscale introduction of hydrogen power stations and set-up of large-scalehydrogen supply chain around 2030. In addition, policymakers will create
appropriate models that will “create” hydrogen from renewable energies and“store and transport” and “use” it in Fukushima Prefecture.
iv) Strengthening R&D on innovative energies and environment
technologies
Development and diffusion of innovative technologies will serve as a key
to solve environmental and energy problems in the world. It is important in
the short run to send up existing technology’s efficiency and thoroughly pushahead with energy-saving efforts. Researchers will develop, demonstrate,
implement and put in practice at an early timing Japan’s first gallium nitridebased high-efficient devices, batteries for accelerating introduction of nextgeneration vehicles, and new structural materials that will improve energy
consumption efficiency.
Then, in line with “Energy and Environmental Innovation Strategy” asdeveloped in this April, the government will place a higher priority on R&D
on highly promising innovative technologies, rather than simply extending
traditional technologies and enhance R&D schemes on the government-wide
scale, aiming to significantly cut down CO 2 emission around 2050.

85v) Enhancing resources security under lower resource prices[1] Pushing ahead with resource development/securement at home andabroadAs stagnant resource prices have resulted in sluggish resource development
investment in the world as well as slow-down of the world economy, thegovernment will actively provide support to risk money supply through Japan
Oil, Gas and Metals National Corporation (JOGMEC), underpin sustainablegrowth of the world economy through boosting stagnant resource
development investment in the world, and mitigate possible risks that Japan
will face soaring resource prices again, aiming at stable supply.
As for domestic resource development, the government will test-drill
conventional oil and natural gas deposits off the coast of Shimane andYamaguchi Prefectures within this fiscal year.
As for marine resources, policymakers are planning 1-month-long gas
production experiment on sand layer-type methane hydrate in this fiscal year
and will start full-scale survey and R&D on resource collection technologies
for shallow-type methane hydrate. In terms of sea-floor hydrothermal deposits,
the government is planning the world’s first mining/lifting pilot test in the next
fiscal year and conduct in-depth survey/exploration of rare earth or othermarine mineral resources as well as their production technology surveys.
Along with this, the government will procced with survey research on
environmental impact evaluation methods and demonstration/test productionof equipment-related technologies, and steadily push ahead with engineer
fosterage system operations from this fiscal year, aiming to enhance marine
industries.
As for secondary materials emerging at home and abroad (used leadbatteries, electronic parts scrap, etc.), in order to steadily recycle nonferrous
metals by making use of Japan’s pioneering environmental technologies, thegovernment will examine appropriate regulations as set forth in Act onControl of Export, Import and Others of Specified Hazardous Wastes andOther Wastes (Act #108 in 1992). Based on such examination result,policymakers will take necessary measures at an early point. To encourageuse of “urban mines” and growth of recycling service providers andnonferrous
smelters,
researcherswill
developinnovativetechnologies/systems that will make use of IT to efficiently recycle rare metals
or other metallic materials in collaborations between arterial and venous
economies. Policymakers will evaluate/review recycling targets in line with
Small Electric/Electronic Equipment Recycling Act within this fiscal year andalso work on increasing recycling volume.
[2] Fostering and development of flexible LNG and natural gas trading
markets linking local and global markets
In order to enable procurement of LNG at reasonable prices and in a stablemanner based on the “LNG Market Strategy” and utilizing the advantageous
position of being the world’s largest LNG consumption country, theGovernment will improve the liquidity of LNG and natural gas transactions

86

through the relaxation of the destination clause restricting resale by the firsthalf of 2020s, establishment of an LNG price index reflecting demand in
Northeastern Asian region, and promotion of development of domestic gas
supply infrastructure, thereby aiming to make Japan a hub for LNG
transactions and price formation. To this end, the Government will develop an
environment in which a variety of energy transactions, including LNG andelectricity futures transactions, can possibly be done in one stop, from thestandpoint of the convenience of market participants.
vi) Utilization of nuclear power generation of which safety has been
confirmed
Based on the premise of prioritizing safety above all other considerations
and sparing no effort to eliminate the concerns of citizens, the Government
will leave matters concerning the safety of nuclear power stations to the
judgment of the Nuclear Regulation Authority (NRA), if the NRA accepts thata nuclear power station complies with the world’s most stringent regulatory
requirements, the Government will respect its judgment and move forwardwith the restart of that nuclear power station. In doing so, the national
government will be at the forefront of efforts to secure the understanding andcooperation of interested parties, including the local authorities of the areas inwhich they are sited.
In order to promote enhancement and reinforcement of countermeasuresagainst possible nuclear power plant incidents, the Government will formulate
evacuation plans, organize drill, training and other human resource
development systems, secure evacuation routes through road development,
and maintain and improve radiation protection facilities, and strive to secure
security and safety of residents. Simultaneously, the Government will listen to
the voice of communities, and take a whole-of-government approach foractions in an attempt to resolve incidents and enhance support of victims,
thereby striving to regain social trust on nuclear power.
Moreover, from the standpoint of improving safety and reducing thevolume and toxicity of radioactive waste, the Government will utilize test
reactors, such as experimental fast breeder reactors and high-temperature gascooled reactors owned by the Japan Atomic Energy Agency and otheruniversities to promote research and development initiatives toward the future,
while properly moving forward with international cooperation as premises fornuclear nonproliferation initiatives. At the same time, the Government will
make steady efforts to foster human resources in these fields.
vii) Promotion of global expansion of Japanese energy and circulationindustries[1] Promotion of global expansion of the energy industry through energy
infrastructure export
Under the initiative of “Enevolution,” the Government will contribute toconstruction of energy policy formulation system and development of energy
infrastructures in emerging countries through the utilization of policy

87formulation experiences and advanced technologies ever accumulated by
Japan, including support for establishment of energy master plans to at least
four countries mainly in Southeast Asia; joint development of roadmaps toachieve energy-saving and renewable energy goals, implementation of
support for construction of training systems for establishment of energy
management judgment criteria, and improvement of the competence toadminister such criteria in the four ASEAN members (Indonesia, Malaysia,
Thailand and Vietnam) by FY2020. In addition, a guideline which sets forthindices and method for measurement in order to secure the quality of power
plants, such as stable supply of electricity and environmental considerations
will be established by the APEC, thereby diffusing quality power plants
including high-efficient thermal power generation.
With respect to the Joint Crediting Mechanism (JCM), it is estimated that
accumulated greenhouse gas emissions of 50 to 100 million tons of carbon
dioxide equivalent will be reduced and removed by FY2030 through theGovernment’s projects to be done within the annual budgetary framework, in
addition to contributions from private sector-led projects, and the Government
will deploy inter-city collaboration projects in at least five countries by theend of this fiscal year, increase the number of partner countries, and assist
those countries in building up projects. Additionally, once the Government
indicates potential contributions of Japanese companies in a private sector-led
project and obtains consent of the counterparty country, such project will be
designated as the JCM, in principle. Taking the most of the private sector
vitality in globally expanding excellent low carbon technologies through theJCM or other initiatives, the Government will aim to achieve the project sizeof 1 trillion yen on a cumulative basis by FY2020.
[2] Promotion of global expansion of circulation industry by gathering thesystem, administration and technical cooperation as a single package
In order to address the issue with wastes which are expected to increase in
Asia, the Regional 3R Forum in Asia and the Pacific consisting of 39 country
members will be used to publish the “Asia Pacific 3R White Paper” compiling
waste-related information of each country by the end of next fiscal year, andbusiness operators will be urged to utilize such information. Moreover, theGovernment will start assistance toward construction of energy saving-type
resource circulation systems, and newly establish a capacity of new entrant
business operators to assist global expansion of circulation industry in andafter next year. Through these efforts, the Government will strategicallypromote global expansion of high-efficient processing and other technologies
owned by private companies in tandem with inter-government cooperationand inter-municipality collaboration, and aim to double incineration and otherrecycling plant exports by FY2030.

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11.

Improvement of the competitiveness of cities and reinforcement ofindustrial infrastructure functions(1)

Progress in achieving KPIs

<KPI> “Tokyo will be ranked among the top three cities in Global PowerCity Index by 2020.”⇒In 2015, Tokyo took the fourth place (fourth place in 2012).
(2)

Specific new measures to be taken
In order to reinforce Japan’s international competitiveness and drive its
economic growth, the Government will enhance industrial infrastructure
functions through early development and utilization of high standard
highways, projected Shinkansen high-speed train lines, and Linear Chuo
Shinkansen Line and other high-speed transport networks, international hub
airports, and international container and bulk strategic ports, proceed withefforts for “Invest Smartly, Use Smartly” strategic infrastructure management
and compact cities with public transport networks, and make efforts tomaximize stock effects of infrastructures including stimulation for private
investment and productivity improvement. At the same time, the following
initiatives will be taken.
i) Improvement of the competitiveness of citiesIn order to effectively utilize real estates through securitizationtransactions, the Government will promote real estate supply in the fieldsof tourism and nursing care of which needs are expected to increase
toward the future, and make unified changes to the relevant laws
necessary for renovation of vacant houses and shops through cloudfunding or other petty money subscription program, management andutilization of idle real estate donated, and enhancement of real estate
information including appraisals and assessments, thereby aiming todouble total assets such as REITs to approximately 30 trillion yen byaround 2020.
In order to improve the attractiveness of cities and inviteinternational investments and human resources, the Government willassess all urgent urban renaissance districts in which five years havepassed, in principle, after they had been designated as such within the next
three years, and collectively promote urban development by designating
and reviewing districts that are suitable as hubs of activities of global
companies given the convenience of transport access and accumulation ofurban functions.

The Government will accelerate implementation of excellent
urban development projects led by the private sector by setting up nearlytwenty facilities, including international conference halls, medical centersthat can accept foreign people, and childcare facilities, by 2020 to
improve international business and life style environments. The
Government will also create liveliness of cities by providing assistance to89

private-sector activities to raise “earning power” of communities, such as
renovation projects for vacant shops and idle facilities.
ii)

Reinforcement of industrial infrastructure functions
The Government will accelerate the efforts of the council consisting oftrucking companies, consignors and others to reduce long-hours work,
efforts toward promotion of fair trading practices including improvementof trade terms for subcontractors and other SMEs, and promotion of
introduction of joint transport system including IT-based junction transport
services. In addition, the Government will promote the following initiatives,and embody the “Logistics Productivity Revolution” to raise laborproductivity of logistics vendors by about 20% by 2020:For the purpose of maximizing stock effects of road networks,
realizing quick and smooth logistics and mitigating traffic congestion,
development of the circular routes in the three metropolitan areas,
including the three circular routes in the Greater Tokyo area, will bepushed forward, user-oriented new fare system will be introduced, andpinpointed congestion measures utilizing ETC 2.0 and other big data will
be taken.
In order to promote development of logistics centers that arehighly accessible to highways, new rules on direct connection to logistics
centers and effective utilization of road spaces will be discussed.

Guidelines for design and administration of buildings considering
logistics will be established by the end of this fiscal year so that freights
can easily be brought into buildings by securing ceiling heights that
correspond to freight elevators and carrying vehicles in buildings.
The standards for permission of passage of special vehicles thatallows for introduction of a double-connected truck in which a single unitof truck can carry two normal large-sized truckloads will be relaxed, andthe average examination period for such permission will be shortened
from the current about one month to around ten days by reinforcing
automatic examination system utilizing electronic data.
In order to accelerate efficient navigation of vessels that canquickly respond to weather conditions and detect any fault in advance byutilizing Internet of Things (IoT) and big data, and promote more efficientdesign and production of vessels, the Government will raise Japan’s sharein vessel construction worldwide by approximately 10% (i.e., from 20%
to 30%) by 2025 through creation of a rating system for safety
performance, economy and other factors that are also the strengths ofJapan, and formulation of Japan-led international standards.

90II. Regulation and System Reform to realize revolution in productivity

1. Introduction of a new mechanism for Regulatory and Institutional
Reforms(1) Specific new measures to be taken
It will be too late to begin discussion about regulation and system reform after
problems become apparent, because it is difficult to predict technical innovationand the priority is put on speed in the Fourth Industrial Revolution. It is necessary
for the government and the private sector to share the future business image, draw
a roadmap by the back calculation of goals, and simultaneously proceed withtechnical development and refinement of business models by the private sector andregulation and system reform by the government. Even if an assumption gap arises,
it is also necessary for the government and the private sector to share it concurrently
and modify their respective actions instantly.
In order to make Japan “the most business-friendly country in the world,” itis necessary to thoroughly support business operators in improvement of
productivity to bring a “600 trillion yen GDP economy” into reality.
Given these, the Government will introduce two new reform mechanisms to
respond to new era and proceed with further reforms.
“Roadmap method for the back calculation of goals” to win the Fourth
Industrial Revolution”
 In order to cope with the Fourth Industrial Revolution where it is difficult topredict technical innovation and the priority is put on speed, the government
and the private sector will share the future business image they should aim toaccomplish by setting a time limit, draw a roadmap by counting backwardfrom it, and introduce a new mechanisms to implement concrete reforms in orafter the summer of this year.
Introduction of new methodologies for regulation and system reform
to proceed with regulation reform and simplification and computerizationof administrative procedures from the standpoint of business operators
 In order to thoroughly support business operators in improvement of
productivity with the aim of making Japan “the most business-friendly
country in the world” and bring a “600 trillion yen GDP economy” into reality,
the Government will introduce new methodologies for regulation and system
reform to concurrently proceed with regulation reform and simplification andcomputerization of administrative procedures, and systematically take actions
to reduce regulatory and administrative procedure costs from the standpoint ofbusiness operators by setting a time line. To this end, conclusions will bereached within one year to fundamentally simplify the regulatory andadministrative procedures related to the activities of foreign companies
investing in Japan (if a conclusion can be reached earlier, the Government will
determine specific measures as up-front actions within the year and implement
them promptly). For the areas other than those related to the activities of91

foreign companies investing in Japan, the Government will decide specificmeasures, if it is possible to start up-front actions, within the year andimplement them promptly. Considering the status of the implementation of
those up-front actions and the actions related to the activities of foreigncompanies investing in Japan, the Government will conduct surveys into themethodologies adopted by foreign countries, and examine the approaches toreduce regulatory and procedural costs and how goals should be set. Then, theGovernment will decidefocused areas where the governmentshould promoteregulation reform, simplification of administrative procedures; and evolutionof information technology in an integrated and unified manner and on a fullscale basis by the end of this fiscal year, decide the goals to reduce regulatory
and administrative procedural costs, and promote systematic efforts toaccomplish them.

92

2.

Institutional Reform for Investment in the Future
In order to ensure a positive cycle of Japanese economy, it is important todevelop an environment in which it is possible to make the best of knowledge ofprivate companies and urge private companies to invest in the future.
To this end, the Government has ever been making efforts to strengthen
corporate governance of companies by formulating the Stewardship Code and the
Corporate Governance Code. Under these circumstances, listed companies,
including the three mega-bank groups, have started to take actions to reduce thenumbers of shares held by banks in their customers and clients. The Government
has also opened up the public service markets to private companies through theintroduction of concession-based PFI projects. In addition, the Government has
proceeded with the growth-oriented corporate tax reform and establishment of
exceptional measures for the property tax on machinery and equipment, and has
supported aggressive and bold investment judgments of companies in the“government-private sector dialogue toward investment in the future.”
The Government will continue to mobilize all policies to aim to bring the“country where companies can most easily do business in the world” into realty,
and will improve the medium- and long-term corporate value by making corporate
governance work effectively, not only superficially, enhance the effectiveness andefficiency of disclosure of corporate information, enrich dialogues between
companies and their investors, and promote investments from the medium- andlong-term perspective. It is also important to facilitate rebalancing of portfolios thatshould lead to citizens’ stable formation of assets, improve the competitiveness andproductivities of industries and companies through exhibition of high-quality
financial intermediation function, and strengthen concession-based PFI project
initiatives.
Under the above-mentioned recognition, the following initiatives will be taken
to proactively support investments in the future by private companies.
2-1.
(1)

Promotion of “Proactive Management”
Progress in achieving KPIs

<KPI> Aim to expand the level of capital expenditures to approximately
80 trillion yen a year in the next three years (by FY2018)⇒ FY2014: 68.4 trillion yen* Changed the previous KPI (to get back to the pre-Lehman shocklevel, i.e., approximately 70 trillion yen a year (average level for thefive years before 2007) by FY2015)

93

(2)
i)

Specific new measures to be taken
Enhancement of corporate value through the corporate governancereforms
As the corporate governance “framework” was substantially developed last year,
such as the formulation and adoption of the Corporate Governance Code and theenforcement of the amended Companies Act, it is said that the year of 2015 was
the “first year of the corporate governance reforms.” The corporate governancereforms continue to be one of the top agenda of Abenomics, and the first priority
issue is to deepen those reforms from “superficial” to “substantial.”
To this end, it is effective to raise the effectiveness of pressures from institutional
investors on listed companies. As a result, the realization of “constructive dialogues”
from the medium- and long-term perspective will be strongly promoted.
From this point of view, the Government will ensure through discussions andreviews at the “Council of Experts Concerning the Follow-up of Japan’s
Stewardship Code and Japan’s Corporate Governance Code” (the “Follow-up
Council”) that institutional investors will properly fulfill their stewardship
responsibility by putting interests of customers and beneficiaries (including
ultimate beneficiaries) first. The Government will also urge investors and listedcompanies to make efforts to improve the quality of dialogues between them.
Concurrently, the Follow-up Council will monitor the efforts of listed companies
to help their board of directors to exhibit their effective functions and banks to
reduce shareholdings in their customers and clients, and ensure that listedcompanies will make appropriate efforts to improve the effectiveness of corporate
governance. The Financial System Council will consider measures to realize themarket structure that would contribute to effective corporate governance, also
based on the philosophy depicted in the G20/OECD Principles of Corporate
Governance.
In addition, in order to maintain sustainable growth of companies and improvethe medium- and long-term corporate value, the Government will improve theeffectiveness and efficiency of disclosure of corporate information, and improve
the quality of, and secure the reliability of, the underlying accounting standards andaccounting audit.
[1] Deepening of the efforts toward effective corporate governancereformsA)
Efforts of the Follow-up Council
Through discussions and reviews at the Follow-up Council, the following
actions will be taken to improve the effectiveness of corporate
governance of listed companies:In order to realize “constructive dialogue” between investors and listedcompanies, the Follow-up Council will urge institutional investors tohave dialogue to give companies “awareness” based on theunderstanding of individual companies and their business environments,94and discuss the way in which conflicts of interest should be properly
controlled so that voting rights may be exercised in a manner consistent
with interests of customers and beneficiaries based on the stewardship
responsibility.
In order to contribute to constructive dialogue between investors andlisted companies, the Follow-up Council will urge companies to makeefforts based on which they can have dialogues with investors, by
publishing their management policies including their basic capital
policies, and their management strategies and plans in a way that is easy
for shareholders to understand, and transmitting information in English.
Based on its recommendation on the way the board of directors shouldbe, and in collaboration with the Japan Exchange Group and otherorganizations, the Follow-up Council will grasp and publish the effortsof listed companies for appointment/dismissal of a chief executive officer(CEO), as well as for the structure, administration and evaluation of theboard of directors, and urge listed companies to make efforts to help the
management and the board of directors to fulfill their roles andresponsibilities effectively.
The Follow-up Council will work together with Japan Exchange Groupand other organizations to analyze what measures listed companies havetaken to reduce banks’ shareholdings in them, and monitor the situations
so that companies that “make banks hold” their shares may not prohibitbanks from selling their banks, for example, by implying that thecompany will stop transactions with the bank, when banks decide to
reduce their shareholdings in business companies.
From the standpoint of increasing international understanding of theefforts for corporate governance in Japan, the Follow-up Council willtransmit information on its discussions and efforts overseas in a timely
and effective manner.









B)


Improvement of sustainable corporate value and promotion of mediumand long-term investments
The Government will aim to strengthen the function to monitor theboards of directors, including the processes of appointing and dismissinga CEO. More specifically, in order to meet the need of companies thathave interest in the governance framework in which the decision-making
speed will be secured by delegating the discretion to conduct business tothe management led by CEO, and the board of directors will chiefly
decide management strategies and business performance evaluations, theGovernment will formulate guidelines and concrete case studies
concerning the roles and method of administration of the board of
directors, appointment and dismissal of a CEO and succession planning,
introduction of incentive remuneration, and practical affairs of thenomination and remuneration committees (including those of an optional
nature) by the end of this fiscal year, while compiling Japanese andforeign advanced sample cases. Also, the Government will work with therelevant organizations to discuss possible measures to further accelerate95

qualitative and quantitative improvements of human recourses who willserve as outside directors.
In addition, the Government will make further discussions and efforts
about measures to secure the period of time during which companies canenhance disclosure of information, shareholders can consider proposals
and companies can have dialogue with shareholders in order to develop
most desirable environment for dialogue from a global point of view, andwill aim to realize a process for dialogue-type shareholder meetings.
With respect to electronic delivery of attachments to the notice ofconvocation of the general meeting of shareholders, the Government will
expand the scope of information that can be provided electronically inlieu of those documents even without individual approvals ofshareholders and proceed with discussions toward the development of a
new system so that those documents can basically be provided
electronically. More specifically, based on the proposals by the “Study
Group on Promoting Electronification of Processes for Shareholder
Meetings” published in April this year, the Government will refer to thefollowing common points of the electronic delivery system in foreigncountries: (i) that all sets of information legally required to be submitted
to the general meeting of shareholders have been disclosed on theinternet; (ii) the minimum information including URLs will be given to
shareholders in writing; (iii) no individual approvals of shareholders will
be required for a company to adopt the system; and (iv) shareholders whowish to receive all information in writing will need to request that thecompany provide such information in writing. At the same time, theGovernment will discuss concrete legislative measures to take, given thesystematic environment and realties surrounding the general meetings ofshareholders in Japan, as well as corporate practice considerations, whileaiming to start improvement of the company law system in early springof next year.
With respect to the electronification of the voting process inshareholder meeting, to enhance the quality of voting rights to be
exercised by securing the period of time during which shareholders canconsider proposals and companies can have dialogue with theirshareholders, the Government will urge those concerned and otherrelated organizations to discuss: (i) one-stop process for exercise of
voting rights; (ii) cooperation of platforms for electronic exercise of
voting rights; and (iii) the way the procedure for proper and smooth usageof those platforms should be. Then, the Government will hold a meeting
to check the progress of such discussion.
For the way in which the date of shareholder meeting and the record
date for exercise of voting rights should be set based on global andbusiness practices, the Government will urge those concerned, including
companies, investors and dialogue support service industry, to change
their awareness and behaviors by holding meetings to check the status of
discussions by those concerned and the relevant organizations, based on
the status of discussions about effective and efficient disclosure.

96

In addition, the Government will transmit information in Japan andabroad on the progress of the efforts of those concerned to realize theprocess for a dialogue-type shareholder meeting.
Not only from the standpoint of promoting investments based on ESG(environment, society and governance) factors, the Government will also
consider the way in which corporate management and investments
creating sustainable corporate value should be and how such value shouldbe evaluated, and the mechanism of governance facilitating the
optimization of investments in human, intellectual, manufacturing andother capital resources based on long-term management strategies, andhow managers should make investment decisions and how investors
should evaluate those decisions, as well as how information should be
provided, and reach conclusion on what policy measures the Government
should take to encourage optimization of investments by the end of thisfiscal year.

[2] Realization of the market structure to secure the effectiveness ofcorporate governance
As indicated in the G20/OECD Principles of Corporate Governance,
the stock market rules and regulations play an important role to ensure
effective corporate governance. The Principles also present the thoughtthat it is important that the stock market should provide fair and efficient
price discovery for shareholders to work on companies based on
medium- and long-term corporate value of companies.
From this standpoint, the Financial System Council will consider thefollowing points and contribute to trans-border discussions on the stock
market rules and regulations.
 How the exchanges should exhibit their self-regulatory functions
contributing to ensuring effective corporate governance.
 Possible impacts of algorithmic high-frequency trading that isclaimed to adversely affect the fair and efficient price discovery
function on the fairness, transparency and stability of markets.
[3]

Improvement of the quality of disclosure of information,accounting standards and accounting audit
It is necessary to secure the fairness and transparency of the market
and promote constructive dialogue between companies andinvestors/shareholders to facilitate supply of growth capital in the market
and promote sustainable growth of companies.
From this standpoint, the following measures will be taken to help
companies to provide corporate information required by investors in an
effective and efficient manner, and further improve the quality ofaccounting standards and accounting audit and secure the reliability of
those standards and audit.

97A) Improvement of the effectiveness and efficiency of disclosure ofcorporate information
In order to facilitate supply of growth capital in the market andpromote sustainable growth of companies, it is necessary to secure thefairness and transparency of the market and promote constructive
dialogue between companies and investors/shareholders. From thisstandpoint, the Government will realize an integrated disclosure
framework that will ensure that corporate information required byinvestors will be provided effectively and efficiently, and develop an
environment which will ensure that companies will set the schedules andrecord dates for shareholder meetings reasonably and appropriately.
Disclosure documents of listed companies consist of business reports
and financial statements under the Companies Act (Act No. 86 of 2005,
as amended), annual securities reports under the Financial Instruments
and Exchange Act (Act No. 25 of 1948, as amended), and earnings
reports under the relevant stock exchange securities listing regulations,and each of those documents has different purposes and roles, whilecertain systematic problems that are different from those of foreigncountries have been pointed out, such as duplication of information andclerical burdens, appropriateness of disclosure timing, and two types ofaudit reports.
To resolve those problems, it is necessary to realize most effective
and efficient disclosure system even from a global point of view bysorting out, and eliminating duplications of, disclosure items with respect
to the statutory disclosure all listed companies are compulsorily andcommonly required to comply with, from the standpoint of promoting
dialogue between companies and investors as set forth in the“Stewardship Code.”As the first step for consideration toward the realization of suchintegrated disclosure, the “Disclosure Working Group” of the Financial
System Council compiled the report in which the certain directionality
was presented.
Given the above, from the standpoint of promoting dialogue between
companies and investors and based on the previous discussions at the
Financial System Council, the related government bodies and Tokyo
Stock Exchange, Inc. will work together to have trans-system and crossgovernment discussions, and make the following comprehensive
examinations and efforts by the first half of 2019, with the aim ofdeveloping an environment which is designed to realize the mosteffective and efficient disclosure system from a global standpoint and set
reasonable schedules and record dates for general meeting ofshareholders:

98







B)

With respect to the way integrated disclosure of business reports andannual securities report, and the earnings report and audit report for
the relevant fiscal year should be, the related government bodies andTokyo Stock Exchange, Inc. will meet together with the attendanceof companies that are willing to participate in constructive dialogues
with investors and shareholders; prepare and share comparative tables
based on actual disclosure cases of companies; organize approachesof the related government bodies on integrated disclosure ofstatutorily required items; and, if there are items of disclosure that canbe statutorily commonalized further, reach conclusion on concrete
ways to commonalize them, including details of necessary works anddeadlines, by the end of this fiscal year.
For quarterly disclosure, it is necessary to continually verify thenecessity for statutory disclosure and how it should be, consideringinternational situations and discussions. First of all, the Government
will sequentially start evaluation and analysis of Tokyo Stock
Exchange, Inc.’s review of earnings reports, and the possible impacts
and effects of such review, and identification of points required to be
improved in the future in the course of this fiscal year.
While proceeding with the above-mentioned efforts for institutional
reforms of disclosure, from the standpoint of promoting integrated
disclosure by companies by giving companies sufficient timenecessary to prepare integrated reports on and after the most recent
settlement date, as well as of securing the period of time during whichinvestors can consider proposals and promoting investors’ dialogue
with companies by enabling companies to disclose such integrated
reports enough prior to the date of the meeting and, the Government
will make efforts to develop a comprehensive environment forcompanies emphasizing dialogue to set schedules and record dates
for shareholder meetings reasonably and appropriately in relation to
the situations in the United States and European countries (forexample, to hold a general meeting of shareholders four months after
the most recent settlement date and/or shorten the period between therecord date and the date of the meeting by setting a record date after
the most recent settlement date, like foreign countries).

Improvement of the quality of accounting standards
In order to improve the quality of accounting standards to be used inJapan, the Government will cooperate with the Financial AccountingStandards Foundation, the Accounting Standards Board of Japan, The
Japanese Institute of Certified Public Accountants, Japan ExchangeGroup, and companies to promote the following initiatives:
 Promotion of expansion of companies voluntarily adopting IFRSThe Government will work with the relevant organizations toprovide opportunities to share experiences of companies that havecompleted transition to IFRS, and facilitate the practices ofcompanies adopting the IFRS or considering transiting to IFRS by

99







C)

dispatching and communicating IFRS interpretations, thereby
promoting expansion of companies voluntarily adopting IRFS.
Strengthening of international transmission of opinions on IFRSThe Government will more strongly offer Japan’s opinions as tohow IFRS should be in connection with goodwill accounting andrecycling (i.e., accounting for items recognized in othercomprehensive income to be transferred to net income).
Enhancement of the quality of Japanese standards
The Government will provide support necessary to accelerate
discussions to enhance the quality of Japan’s revenue recognition
standards at the Accounting Standards Board of Japan.
Fostering of international accounting specialists
The Government will cooperate with the related organizations tobuild up a pool of human resources who can offer opinions as to IFRS
in international arena. The Government will also grasp humanresources who can handle accounting audit practices under IFRS andhow audit firms foster those human resources and urge audit firms to
make appropriate efforts, both through The Japanese Institute ofCertified Public Accountants.

Securing of improved quality and reliability of accounting audit
In order to establish a positive cycle of audit firms providing highquality accounting audit under effective governance and management
being properly evaluated by companies and shareholders and aiming toprovide higher-quality accounting audit, and secure a sustainableimprovement and reliability of the quality of accounting audit, theGovernment will take the following initiatives based onrecommendations of the Advisory Council on the Systems of Accounting
and Auditing: The Government will establish the principles for systematic
administration of audit firms (the governance code for audit firms)
and strengthen management of audit firms. More specifically,
management teams of audit firms will be required to show leadershipto urge their members to exercise professional skepticism build up
and clarify administration and supervision frameworks, and conduct
human resources enlightenment, and personnel assignment andevaluation.
 The Government will urge audit firms to work hard to establish
highly transparent and effective audit firm governance by asking
them to appropriately disclose and explain their status of governanceand their efforts to secure quality, and ensure that market participants
including shareholders and investors of audit clients, and thecompetent authorities can more easily check audit firms externally.
 The Government will cause companies to enhance their accounting
audit disclosure, including the period of time during which thecompany has been audited by the same auditors, and enhanceprovision of information on accounting audit to shareholders and

100



[4]

other stakeholders, so that shareholders can make appropriate
judgment on appointment and dismissal of the auditor.
A forum for dialogue between the authority and major and quasimajor audit firms will be established to share the awareness on issues
with accounting audit of large listed companies, thereby improving
the audit service levels.

Promotion of dialogue between companies and investors
Tokyo Stock Exchange, Inc. has introduced JPX Nikkei Index 400 ofwhich constituent stocks are to be selected based on 3-year average ROE
and appointment of independent outside directors, and have had stockindex-linked exchange traded funds (ETFs) based on JPX Nikkei Index
400 listed.
The Bank of Japan has the policy of purchasing ETFs constituted bystocks of companies that are making positive efforts for capital
expenditures and investments in human resources. The Government will
aggressively urge those concerned to make such efforts smoothly.
Given the diffusion of emphasis on ESG factors and the increase of
institutional investors who have willingly signed the United Nations’Principles for Responsible Investment, the Government will urge
companies to have aggressive dialogue with investors to reinforce theirmedium- and long-term growth power and profitability.

ii)
Promotion of metabolism and smoothening of business restructuring
As the pace of business model transformation goes up drastically, theGovernment will consider measures necessary to accelerate R&D that will create
innovation, strategic investment in tangible and intangible assets to win global
competition, and far-sighted speedy business restructuring based on management
strategies, reach conclusion, including the necessity for institutional actions, by theend of this year, and take necessary measures, considering bringing related bills
before the Diet meeting (including the next session of the Diet) early.
Simultaneously, the Government will consider how equity investment for
promoting innovation should be vivified.
iii) Promotion of business rehabilitation
In order to enable companies to proceed with business rehabilitation quickly andsmoothly even in case of there being creditors opposing to out-of-court workout
proceeding, the related government bodies will consider a legal framework, basedon details of the report by the panel of experts.
In addition, the Government will consider measures necessary for realization ofeffective rehabilitation support, smoothening of business succession, andpromotion of management innovation triggered by business succession in order topromote business revitalization and business succession of regional SMEs, andreach conclusion on institutional actions by the end of this fiscal year.
2-2. Realization of vital financial and capital markets

101

(1)
i)

Specific new measures to be taken
Promotion of portfolio rebalancing contributing to supply of growth
capital and development of market environment
In order to realize a good capital flow and facilitate rebalancing of portfolios thatshould lead to citizens’ stable formation of assets, it is necessary to work on bothhouseholds and financial institutions.

With respect to household accounts, the Government will further disseminate
NISA and Junior NISA schemes and develop those schemes to widely facilitate
stable formation of assets through long-term, diversified and accumulated
investments starting with a small amount, and strengthen financial and investment
education useful for such formation of assets.
The Government will ensure that financial institutions engaged in distribution
and development of financial instruments and financial institutions that arecontracted by households and pension fund and other institutional investors for
management and administration of their assets will fulfill the fiduciary duty,
thereby urging them to contribute to citizens’ stable formation of assets, so that theformer can take actions putting interests of customers (households) first, and thelatter can manage operations that are truly in the interest of customers andbeneficiaries through appropriate conflict of interest management andsophistication of management techniques.
[1]

Development of environment and investment education that will
facilitate rebalancing of household portfolios
 Considering that long-term and diversified investment approaches
utilizing accumulations starting with a small amount is useful torealize stable formation of assets by households, the Government willfurther disseminate NISA and Junior NISA schemes and develop
those schemes from the standpoint of facilitating formation of assets
though such accumulation methodology.
 Concurrently, in light of the importance of widely communicating theeffect of long-term diversified investment utilizing accumulation, theGovernment will further improve citizens’ financial literacy byenhancing financial economic education programs, and make efforts
to further disseminate workplace savings NISA scheme in which
officers and employees at each workplace can join and receive
financial and investment education, and get it established. Similarly,
the related government bodies will cooperate with each other todisseminate the defined contribution annuity scheme in which
officers and employees can join and will be given opportunity toreceive financial and investment education at each workplace and get
it established.
 It is pointed out that although much of household assets are held bysenior citizens, treatment of listed stocks under the inheritance tax
distorts selection of assets by citizens, because listed stocks are
exposed to large price fluctuation risk after the inheritance until the

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

due date of payment of the inheritance tax and are disadvantageous
in relation to other assets. Such situation may perhaps become anegative factor in working on citizens for stable formation of assets,
and the Government will consider improving it.
Given the recent deposit interest rate reductions, the Government willdevelop an environment in which individuals can more easily hold
JGBs by simplifying the procedure for purchasing JGBs for retailinvestors that are free from the risk of principal loss, from thestandpoint of broadening the width of management of individual andhousehold assets, as well as of making it possible to manage them asadvantageously as possible.

[2]

Ensuring that the fiduciary duty will be fulfilled The Financial System Council will consider necessary actions toensure that all entities engaged in formation of assets by customers,such as development, distribution and management of instruments,
and asset management, will fulfill their fiduciary duties (customeroriented management of operations).
 The Government will take the initiatives to make fees for high-risk
instruments such as investment trusts and savings insurance moretransparent and appropriate, from the viewpoint of providing
instruments that meet the need of customers and are truly in theinterest of customers.

[3]

Promotion of sophistication of asset management by financial
institutions
 Sophistication of asset management by financial institutions willcontribute to a sustainable economic growth through market
revitalization and citizens’ stable formation of assets. For
sophistication of asset management by financial institutions,
including Japan Post Bank and Japan Post Insurance, the Government
will verify how the asset management business is positioned in theunderlying business model and what management issues they areaware of, and encourage them to make efforts for that purpose.

[4]

Development of tools supporting long-term stable investments
In order to contribute for households’ long-term and stable formationof assets, the Government will hasten the efforts of Japan ExchangeGroup for further dissemination and establishment of JPX Nikkei
Index 400, and development of new stock price index such as smart
beta index.
 From the standpoint of forming a thick market which a variety ofinvestors including households can join, the Financial System
Council will consider how new stock price index contributing tohouseholds’ long-term stable formation of assets should be developed,
how ETFs should be originated and the liquidity of ETFs should be
improved, and how distribution channels should be like.


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[5]

Improvement of the convenience of financial and capital markets
and their revitalization
 With the aim of strengthening the competitiveness of Japan’s asset
management business, the Government and the private sector will
work together to set up a framework to sophisticate management andmaximize customer gains, diversify management companies
including independent ones, and develop an environment that will
attract superb fund managers and sophisticated financial
professionals from both inside and outside Japan.
 A one-stop office for foreign asset managers/owners who are
considering setting up an office in Japan will be established in the
Financial Services Agency for consultation. It will collaborate withthe “Financial Concierge Services” and the “Tokyo One StopBusiness Establishment Center” administered by the Tokyo
Metropolitan Government to provide one-stop services for all affairs
relating to the establishment of an office.
 In order to reduce settlement risks and improve the market efficiency,
the Japan Securities Dealers Association and other organizations
have been taking various initiatives with the aim of implementing“T+1” settlement of JGBs in the first half of FY2018 andimplementing “T+2” settlement of stocks as early as possible in 2019,
and the Government will encourage those initiatives to be taken
steadily.
 From the viewpoint of improving the convenience of market
participants and strengthening the international competitiveness ofthe exchanges in Japan, the Government will continue the work ofestablishing a comprehensive exchange as early as possible, andmake aggressive efforts to ensure that electricity and LNG futures
will be listed smoothly.
 The Government will develop an environment necessary forsustainable growth of the infrastructure fund market so that investors
may easily invest in infrastructure assets. The Government will alsocollaborate with the self-regulatory associations to take the initiatives
toward further dissemination and enlightenment of healthcare REITs
by holding sessions for healthcare companies.
 In order to improve the convenience of, and revitalize, the bondmarket, the Government will continue to encourage the efforts ofmarket players to revitalize the TOKYO PRO-Bond Market in which
Japanese and foreign institutional investors participate.

[6]

Ensuring of the fairness, transparency and stableness of the market
 Given the fact that the share of algorithmic high-frequency trading is
growing in the stock market, the Financial System Council willconsider measures to be taken so that the impartiality withhouseholds and other investors who cannot make such trading andthe formation of prices that reflect medium- and long-term

104

profitability of companies may not be adversely affected, and asystem trouble may not cause any problem in the market, from thestandpoint of ensuring the fairness, transparency and stableness of themarket.
[7]

Supply of growth capital by public-private funds
While paying attention to the principle of subsidiarity and the principle
for externalities that public-private funds and government-affiliatedfinancial institutions are required to comply with, given the current
situation in which they are still strongly sought to exhibit a priming effectfor supply of growth capital, the Government will consider initiatives thatwill enable them to further exhibit their functions.

[8]

Strengthening of strategic actions for international financial
regulatory reforms and international network/financial
cooperation
 In order to strategically cope with problems with international
financial regulatory reforms as the moves to strengthen regulations
continue globally after the worldwide financial crisis, theGovernment will strive to aggressively dispatch opinions on
reexamination of regulations such as avoidance of excessive
regulations. The Government will also encourage international
harmonization and collaboration of the regulatory authorities to
respond to the globalization of activities and transactions of financial
institutions.
 In order to strategically respond to problems with international
financial regulatory reforms, the Government will utilize a wide
variety of international conferences, and aggressively offer opinionsof the authority. Also, the Government will aggressively hold andinvite various meetings and conferences relating to international
finance, including high-level international conferences, in Japan.
 From the standpoint of Japan’s international presence and raising thepresence of Tokyo as an international financial center, theGovernment will provide necessary support to the International
Forum of Independent Audit Regulators (IFIAR), which has recently
decided to set up a permanent secretariat in Tokyo, for theestablishment of the secretariat in April of the next year and its
subsequent smooth administration.
 The Government will actively address international discussions
about the usage of FinTech.
 In order to promote dialogues and cooperative relationships withoverseas financial authorities, the Government will conduct bilateral
discussions.
 From the viewpoint of providing Japanese companies and Japaneseaffiliated financial institutions with support for global expansions, aswell as of expanding opportunities of Japanese investors to makeoverseas investments, the Government will provide Asian and other

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

[9]

countries with deep financial cooperation such as support for
improvement of the abilities of financial authorities and support fordevelopment of financial systems.
In order to steadily foster pro-Japanese groups in overseas financial
authorities, and reinforce medium- and long-term cooperation withthem, the “Global Financial Partnership Center” (GFPC) will
strengthen the preparedness for acceptance of researchers from not
only Asian countries but also Africa and Latin America. In addition,
GFPC will construct and reinforce its networks with researchers once
accepted.

Strengthening of collaboration to make Tokyo an international
financial center
In order to revitalize the Japanese economy, it is important to stimulate
the financial sector that will supply the underlying funds. Given this, inorder to make Tokyo a center that will attract human resources,
information and funds from all over the world, and supply funds to thesectors that need them in Japan and abroad, the Government will
strengthen the partnerships with the Tokyo Metropolitan Government
and the private sector, and further promote the efforts to revitalize
business exchange centers, hold and invite international financial
conferences, and provide collaboration programs for financial education.
The Government will also aggressively take the following initiatives: From the standpoint of promoting the Tokyo Global Financial Center
conception, the Tokyo Metropolitan Government will collaborate
with the office for foreign asset managers/owners to be established at
the Financial Services Agency (mentioned earlier) to deploy“financial concierge services” to provide foreign financial companies
with support for business in general, and strive to encourage
invitation of FinTech companies. In order to strategically cope withproblems with international financial regulatory reforms, theGovernment will widely utilize international conferences and otheropportunities, and positively disseminate opinions of the authority.
 In order to ensure that the areas along Eitai Street from Ohtemachi to
Kabuto-cho districts where the core functions of Japan’s financial
services gather around (i.e., “Tokyo Financial Street”) will work as ashowcase where overseas sophisticated financial professionals gather
around, the national government and the Tokyo Metropolitan
Government will be going forward with effective utilization ofnational strategic special zones, as well as with enhancement andreinforcement of invitation support measures.
 Including the above-mentioned measures, the study group consistingof representatives from the Tokyo Metropolitan Government, theFinancial Services Agency and private business operators will beestablished, in which participants will compile what measures should
be taken in the immediate future to contribute to promotion of theconception.

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ii)

Strategic Actions for FinTech
Recently, the move toward the fusion of finance and information technology
called FinTech has been in progress, revolutionizing the financial services andmarkets. Considering protection of users and prevention of frauds, it is importantto sophisticate financial services and link it to improvement of the convenience ofusers and strengthening of the growth potential of Japanese economy byintroducing the IT evolution into the financial sector. From this viewpoint, thefollowing initiatives will be taken.
[1]

Promotion of the financial innovation through Fintech
The Government will create FinTech ventures made in Japanconsidering global expansion to lead the world and aim at user-oriented
financial services innovation. From this viewpoint, the Government willproceed with forming up an environment (FinTech ecosystem) in which
advanced ideas will be created by human resources from a broad variety
of fields of the industry and academia and FinTech companies supportedby the supply of equity capital will grow. To this end, based on
discussions at the “Panel of Experts on FinTech Start-ups” that willconsider issues with FinTech, the Government will promote initiatives
towards construction of a forum where human resources from a wide
variety of fields can collaborate and formation of global networks withforeign persons concerned.
In order to facilitate sophistication of financial services, theGovernment will change inter-company bank remittance instruction
telegraphic messages to global standard XML telegraphic messages by2020 and proceed with initiatives towards financial EDI (electronic datainterchange) that will make it possible to attach commercial distribution
information to remittance instruction telegraphic messages. From thestandpoint of maximizing effects of the change to XML telegraphic
messages, including improvement of the productivity of SMEs andimprovement of cash conversion cycle (CCC), the industry and theMinistry of Economy, Trade and Industry will reach conclusion on
standardization of commercial distribution information to be containedin financial EDI by the end of this year.
Moreover, the government and private sector will work together toconsider providing a new mechanism that will bring less expensive andnon-urgent international money remittance (low-value remittances) into
realty, publishing the API (application program interface) of the banking
system that will enable creation of various financial services connecting
to the bank systems while paying attention to information security, andutilizing new financial technologies such as block chain technology. The
Government will also develop an environment for sophistication of cash
management. To this end, a framework will be organized through which
the government and the private sector can implement those initiatives.

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[2]

iii)

Institutional actions for FinTech movements
The Government will enforce the Act Partially Amending the
Banking Act to address changes in the environment such as evolution of
information telecommunication technologies, and promote thedevelopment of an environment to reinforce cooperation between
financial institutions and financial-related IT companies. In addition, theFinancial System Council will continue to consider financial-related
institutional problems, while looking into further evolution of FinTech,and taking protection of users and prevention of frauds into consideration.
In that process, the Government will fully identify the future directionsof the development of cooperation between FinTech companies andfinancial institutions, and consider how the legislative system for the
relationship between FinTech companies and financial institutions
should be, while paying attention to the relationship with the current bankagency business system. In order to realize the development of new
regulatory and institutional environments that will encourage innovation,
the Government will take necessary legislative measures in the credit
card sector by awarding new legal positioning to highly reputablesettlement agencies with high technology so that they can improve theconvenience of network transactions by utilizing their original IT
technologies.

Promotion of a cashless society
In order to improve the convenience and efficiency through the diffusionof cashless payment in light of the Tokyo 2020 Olympic and Paralympic
Games, the Government will promote the diffusion of cashless environment
in tourist spots and localities based on the “Measures for a cashless society”
formulated by the relevant ministries and agencies in December 2014.
To encourage the development of an environment in which credit cards canbe used safely, the Government will promote smooth implementation of the“implementation plans” established by credit card-related business operators,
with the aim of realizing international-level security environment by 2020,
such as realization of “100% shift to IC-compliant credit settlement terminal
devices," and take necessary legislative measures to secure the effectivenessof those plans, including obliging merchants and other establishments to takesecurity measures.
For the purpose of developing excellent products and services, providing
attractive tourism and further stimulating inbound demand by accurately
identifying the diversifying needs of domestic consumers and foreign peoplevising Japan through the use and application of big data generating from acashless society, the Government will encourage the following initiatives:
 To promote the required data standardization for credit card payment andpurchase information by the end of this fiscal year;

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




To urge the related trade associations to establish privacy rules to makeinformation anonymous in connection with the enforcement of the Act on
the Protection of Personal Information amended last year;
To utilize IT (such as contactless electronic tags through which more than
one kind of tag information can be read instantly) and develop an
environment to collect, use and apply various data generated from supply
chains; andTo statistically analyze information that can be obtained from big data andelectronic tags, and consider how those data can be politically utilized forvarious statistics and surveys, preparation of new consumption statistics,
and the “Regional Economy and Society Analyzing System (RESAS).” In
addition, the Government will urge more and more business operators tojoin advanced projects led by the private sector and universities that are
preparing consumption statistics by using purchase history data.

In order to realize the development of new regulatory and institutional
environments that will encourage innovation through FinTech, theGovernment will take necessary legislative measures in the credit card sector,
including awarding new legal positioning to highly reputable settlement
agencies with high technology so that they can efficiently secure the safety oftransactions by utilizing their original IT technologies.
For promotion of establishment of ATMs that can accept cards issued
overseas by financial institutions to develop a stress-free environment inwhich all tourists can comfortably enjoy sightseeing, the Government will
convert most of nearly half of all megabank ATM facilities (approximately
3,000 units in total) to ones that can accept cards issued overseas by the endof 2018, based on the “Tourism Vision to Support the Future of Japan”(decided at the meeting of the Council for the Development of a Tourism
Vision to Support the Future of Japan on March 30, 2016).
iv)

Improvement of the quality of the financial intermediation function
Financial institutions are expected to cope with the ongoing reduction andaging of population, continued low interest rates and various environmentchanges surrounding management, and financially support sustainable growthof Japanese industries and companies. From this standpoint, the Government
will secure the soundness of financial institutions, enable financial institutions
to fully demonstrate their financial intermediation function even when
economic or market stress arises, and enable financial institutions todemonstrate high-quality financial intermediation function contributing tosolution of problems facing industries and companies through lending andsupport for their regular business operations based on evaluation of businesspotentials, leading those efforts to improvement of the competitiveness andproductivities of Japanese industries and companies.

109

[1]

Stable demonstration of financial function towards improvementof the competitiveness and productivities of Japanese industries
and companies
 Financial institutions are required to financially support the efforts ofJapanese industries and companies to improve their competitivenessand productivities and to promote their metabolisms by flexibly
addressing substantial economic and market changes and stably
demonstrating the financial intermediation function. From thisstandpoint, the Government will encourage financial institutions toconstruct solid business administration and risk management systems
and further strengthen their financial bases. In particular, theGovernment will continue to request systematically importantfinancial institutions to reduce shareholdings in their customers andclients on a stable manner. Considering the review of global financial
regulations and the recent low interest rates, the Government will urge
financial institutions to make efforts to strengthen their management
bases through business model changes and reinforce their governancesystems. For regional financial institutions, the Government will urge
them to analyze the possible effects of reduction and aging of
population in the region on their respective business models, anddemonstrate lending and consulting functions based on evaluation ofbusiness potentials reflecting such analysis. In addition, theGovernment will improve the productivities of regional industries andcompanies and further accelerate their growth by urging regional
financial institutions to participate in and cooperate on platforms forreinforcing the regional growth together with other SME support
organizations and local universities. Through those initiatives, theGovernment will urge regional financial institutions to formulate andimplement medium- and long-term management strategies from theviewpoint of constructing their sustainable business models while
contributing to community development. In taking those initiatives,
the Government will utilize the capital reinforcement plan under the
Act on Special Measures for Strengthening Financial Functions, andstock purchases by the Banks’ Shareholdings Purchase Corporation, as
necessary.
 The Government will grasp the actual situation of support by financial
institutions for overseas expansion of companies, develop an
environment, cooperate with the relevant ministries and agencies, andencourage financial institutions to make further efforts, for example,
by sharing best practices.
 From the standpoint of supporting those efforts of financial institutions,
the Government will cause financial institutions to strike a balance
between the sound management of financial institutions anddemonstration of financial intermediation function, and consider aframework for prudence policy that will lead to persistentimprovement of risk management abilities of those financial
institutions themselves, while appropriately combining regulations

110and supervision, and rules and principles, and restricting regulatory
costs and side effects as much as possible. From the viewpoint of
securing the effectiveness of the above-mentioned framework, theGovernment will consider how financial institutions should bemonitored in the future.
[2]

Further enhancement and strengthening of financial
intermediation function
The Study Committee for Improvement of Financial Intermediation
will continually discuss issues and measures so that financial institutions
may improve their lending attitudes relying on collateral and guarantee,
appropriately evaluate business nature and growth potentials of theircustomer companies (evaluation of business potentials), and encourage
improvement of productivities of regional industries and companies andsmooth metabolism through lending and support for regular business.
Based on those discussions, the Government will encourage financial
institutions to take active responses and aggressively take the following
initiatives:

A)

Continuous hearings from borrower companies
The Government will continue to conduct hearings from borrower
companies, and urge financial institutions to provide high-quality
services that meet the needs of companies through the dialogue withfinancial institutions based on results of those hearings.

B) Formulation of various benchmarks in connection with evaluations offinancial intermediation initiatives
With respect to the financial intermediation function fulfilled by eachof financial institutions, the Government will formulate various
benchmarks by utilizing results of the above-mentioned hearings fromcompanies and knowledge of external experts, from the objective
evaluation perspective and for the purpose of having in-depth dialogue
about promotion of lending and support for regular business operations
based on business potential evaluation. The Government will encourage
financial institutions to make original and concrete disclosure of how
they have been fulfilling the financial intermediation function, based on
the characteristics of each region and needs of customers, including theuse of the guidelines for personal guarantee provided by business owners.
C) Reinforcement of collaboration between financial institutions and therelated organizations
From the standpoint of contributing to improvement of productivities
of regional industries and companies and smooth promotion of their
metabolisms, the Government will develop a system for collaboration
between financial institutions and the related organization.
More specifically, firstly, the Government will collaborate with the111

Japan Human Resources Co., Ltd. to encourage financial institutions totake specific measures to secure top management human resources thatcan resolve corporate issues when those issues have become apparent
through dialogues between companies and financial institutions.
Secondly, the Government will hold a meeting of the “Labor and
Financial Liaison Conference towards the Productivity Revolution of All
Industries,” and encourage the initiatives including advice of regional
financial institutions on the employment creation policy, and the related
ministers and agencies will work together to accelerate the laborproductivities of regional mid-ranking companies and SMEs and tosecure human resources in the growth industry by providing companies
that are tackling with both business administration improvement andemployment management improvement with integrated support.
Thirdly, the Government will urge financial institutions to positively
utilize the guidelines for personal guarantee provided by business owners
in lending money, reconsidering the existing guarantees and working out
guaranteed obligations, and will further communicate it to business
operators.
Fourthly, from the standpoint of improving the abilities of financial
institutions on the lending and support for regular business operations
based on business potential evaluation, support for businessreconstruction and support for the second challenge, the Government
will encourage financial institutions to utilize the functions owned by the“Regional Economy Vitalization Corporation of Japan” (REVIC) (i.e.,
dispatch of specialists, direct business reconstruction of companies,
investment in and management of regional vitalization funds andcooperate reconstruction funds, and purchase of debts guaranteed bybusiness owners).
v)

Review of management of public and quasi-public funds
In light of the recommendations by the Panel, the Government will takethe requisite steps to ensure that the necessary measures are implemented
swiftly and steadily, taking into account the need to ensure long-termsoundness, according to the scale and nature of the funds in question.

vi)

Improvement of Corporate Pensions
After the conclusion of the Bill Partially Amending the DefinedContribution Pension Act, the Government will promote smooth enforcementof such bill, and disseminate and expand corporate pensions by adopting the“risk-sharing defined benefit corporate pension plan” under which employers
and plan participants will share management risks.
Simultaneously, the Government will enhance post-retirement income ofparticipants by encouraging the pension and other funds to accept the112

Stewardship Code and otherwise make efforts to improve the effectiveness ofcorporate governance.

113

2-3.
(1)

Opening of public services and assets to the private sector (expansion ofutilization of PPP/PFI)
Progress in achieving KPIs

<KPI> “Expand the business size of PPP/PFI to 21 trillion yen for ten
years (from FY2013 to FY2022). Of which amount, the target
amount of concession-based PFI projects is 7 trillion yen.”⇒ The business size of PPP/PFI for FY2013 to FY2014 wasapproximately 2.4 trillion yen (as of March 2016).
(2)

Specific new measures to be taken
As the concession system makes it possible to effectively and efficiently
develop and manage infrastructures under severe financial situation by introducing
the management principles of the private sector into management of public service
facilities, and gives the private sector large markets and opportunities to reinforce
the global competitiveness, it is necessary to reinforce efforts to achieve numericalgoals including cultural and educational facilities (athletic, social education andcultural facilities) (three concession-based PFI projects to be embodied for the three
years from this fiscal year to FY2018) and public housing (three-types* of projects
in six “Action Plan Toward the Fundamental Reform of PPP/PFI” for the three
years from this fiscal year to FY2018 to be embodied), newly referred to in the“Action Plan Toward the Fundamental Reform of PPP/PFI.”
Under those goals, it is necessary to make efforts to further expand theutilization of concession system, the key pillar of PPP/PFI. In the prior projects,
including the water supply project of Osaka City, the water front redevelopment
and concession project in Fukuoka City, and more than one airport in Hokkaido,
should steadily address problems to be overcome.
*

PFI project utilizing the concession system (Type I), PPP/PFI project
recovering costs from business income through establishment and utilizationof profit-making facilities in parallel (Type II), and PPP project effectively
utilizing public real properties (Type III).

More specifically, the fields to be covered by the concession system will be
categorized into the “fields that will meet the expansion of demands resulting fromthe increase of the number of Japanese and foreign visitors, such as airports,
cultural and educational facilities, cruising ship passengers terminal facilities, andMICE facilities (growth-based fields)” and the “fields that will require
sophistication of asset management and development of new projects in responseto the reduction in demands resulting from the reduction of population, such as toll
highways, water supply services, sewage systems, and public housing (maturitybased fields)” and the following initiatives will be taken.

114

i)

Initiatives to be taken in the growth-based fields

To consider introducing a mechanism that will enable admission of
non-passengers to the domestic line’s security area, bringing of kitchen
appliances into such area, two-step security check for domestic lines andinternational lines, and relocation of CIQ facilities, or clarifying its
operations, in either case based on the assumption of considering security.

To consider transferring the unit ownership of CIQ facilities ownedby the national government and operators to the operator and leasing thosefacilities to the national government, and enabling flexible layout changes
in the terminal buildings.
To study and consider establishing duty-free shops at arrival lobbies.

To consider relaxing restrictions on construction hours within the
restricted areas, and clarifying the scopes of products that can be used as
airport runway lighting solutions, based on the assumption of smooth flight
operations and securement of safety.

In utilizing the concession system in multiple airports in Hokkaido,
to efficiently promote integrated privatization from the standpoint of tourism
strategies, including formation of wide-area sightseeing and excursion
routes.

For measures under the Local Allocation Tax Act and subsidiarity
for city-managed airports, to consider the desirable equal footing approachso that financial discipline may not be impaired even through the utilizationof financially non-independent concession.
In forming up a project, to consider utilizing not only concession
system for single facility but also complex and integrated concession
systems covering multiple facilities. Especially for cultural and educational
facilities in cities, to introduce a mechanism to consider complex operation
covering other facilities in the neighborhood.
For cultural and educational facilities, to consider issues necessary
to proceed with a concession-based PFI project, based on the cases in otherfields, including a methodology that will no longer require double
application with the designated operator system, and reach conclusion by theend of this fiscal year. Also to consider a mechanism for support of theburdens of municipalities in preparation for the concession system.

For cruising ship passengers terminal facilities, to build up amechanism reflecting overseas cases and the needs of users so that theconcession system may be utilized. At that time, to consider how to apply
the existing system to a concession-based PFI project, as well as amethodology that will no longer require double application with thedesignated operator.

To consider any methodologies to smoothly promote commercial
activities for passengers in the port areas, and stimulate development ofenvironments surrounding MICE facilities by utilizing national strategic
special zones, if necessary.
For cruising ship passenger terminal facilities and MICE facilities,
to set numerical goals for the number of concession-based PFI projects.

115

ii)

Initiatives to be taken in the maturity-based fields
In order to form up prior water supply projects, to consider
introducing a mechanism that will eliminate new burdens of municipalities
to the maximum extent through grant, subsidy or other measures only forcertain projects, including those which will be initiated before results ofconcession system in Japan are verified.
In order to provide municipalities with information necessary to
examine whether or not the concession system should be introduced into thewater supply project, to gather and analyze prior cases abroad andcommunicate results to those concerned.

To consider stipulating a mechanism to leave the grounds for amunicipality to be eligible to engage in the water supply business when it
decides to utilize the concession system, a mechanism for the national
government to inspect operators with focus on their management conditions
and water quality, and the method of calculation of rate costs if privatecompanies engage in the management of the water supply business in the
Water Supply Act (Act No. 177 of 1957, as amended), so that municipalities
may utilize the concession system without anxiety in the water supply
project.
To clarify concrete application procedures and permission criteria
when operators obtain permissions under the Water Supply Act and theIndustrial Water Supply Business Act (Act No. 84 of 1958, as amended), andcommunicate them to municipalities.
When a municipality introducing the concession system to any
business in the maturity-based field repays its obligations for that businessearly at the amount of concession price, to consider, from the standpoint of
encouraging introduction of that system, exemption from or reduction ofcompensation or any other alternative measures by summer and reachconclusion by the end of this fiscal year.

To consider measures to fund capital expenditures during the period
in the form of a reserve in the water supply business.

For the water supply business, in order to secure stable management
and implement efficient development and administration in the progress offull-scale reduction of user population, to promote the concession system byencouraging expansion of business area, depending on the actual situationof the region.

116

iii)

Initiatives across the fields

To promptly hold a forum for dialogue with private companies
toward the future expansion of projects, and hear opinions on initiatives
necessary to increase investment potentials and compile those opinions by
the end of this fiscal year.
To grasp human resources needs to be arisen when the concession
system is adopted in a broad variety of fields, and the areas previously nothandled by private companies are opened up to the private companies, anddevelop an environment necessary to secure an appropriate supply of humanresources and expand as an appropriate industry considering global
expansion.

It is important for deploying prior projects horizontally to share
information and knowhow between municipalities. To encourage the effortsof PPP/PFI regional platforms to consider forming up a concrete project, anddevise how to operate them so that it may be surely led to the formation ofa project.

117

3.
(1)

Bold regulatory reforms by the national strategic special zones
Progress in achieving KPIs
<KPI> “Japan will be ranked among the top three developed countries in
the World Bank’s Ease of Doing Business Ranking” by 2020.
⇒ 24th place in October 2015 (2 ranks down from the previous year)* The rank as of the previous year was revised from 19th to 22nd as aresult of change of ranking method.
<KPI> “Tokyo will be ranked among the top three cities in Global PowerCity Index by 2020” (4th place in 2012).”⇒ 4th place in October 2015 (unchanged from the previous year)(2)
Specific new measures to be taken(Promotion of the national strategic special zones at an accelerated pace under the
new goals)
With respect to the “national strategic special zones,” the two years prior to theend of the last year was designated as the intensified initiative period under the
National Strategic Special Zones Act enacted in December 2013 (Act No. 107 of2013, as amended in July 2015) to break through the so-called hard-rockregulations.
Over 50 regulatory reform matters have ever been realized by the national
strategic special zones, including the nationwide measures. The regulatory reforms
especially include the expediting of urban planning, lifting of so-called private
lodging services (residences that can accommodate tourists), establishment of new
medical departments, creation of the region-limited nursery teachers system,
clarification of employment conditions (establishment of the Employment
Consultation Centers), promotion of the private sector access to public schools,
review of clerical burdens of the Agricultural Committees, all of which could nothave been realized for many years.
In the ten areas designated in the three phases of May 2014, August 2015 andJanuary 2016 (“Tokyo Zone” (Tokyo Metropolitan area, Kanagawa Prefecture, andChiba City and Narita City, Chiba Prefecture), “Kansai Zone” (Osaka Prefecture,
Hyogo Prefecture and Kyoto Prefecture), “Niigata City, Niigata Prefecture,” “YabuCity, Hyogo Prefecture,” “Fukuoka City and Kitakyushu City, Fukuoka Prefecture,”“Okinawa Prefecture,” “Semboku City, Akita Prefecture,” “Sendai City, Miyagi
Prefecture,” “Aichi Prefecture,” and “Hiroshima Prefecture and Imabari City,
Ehime Prefecture”), a total of 175 projects were recognized by the Prime Minister
through the Council on National Strategic Special Zone (the “Zone Council”) andthe Council on National Strategic Special Zone held 50 times and 22 times,
respectively, and have been swiftly in progress in a visible manner.
In addition, as a compilation of the intensified initiative period, in March thisyear, the draft revision of the National Strategic Special Zones Act setting forth118

new regulatory reform matters in the field of medical care, tourism, and agriculture
based on the recommendations of the Zone Council and the proposals solicitedfrom all over the country, in addition to the regulatory reform matters included in
the “revised Japan Revitalization Strategy 2015, was submitted to the Diet, whichcame into force in May of the same year.
i)

Establishment of “new goals” of the national strategic special zones
In order to promote the “second stage” of the national strategic special zones at
an accelerated rate, and with an eye on the 2020 Tokyo Olympic/Paralympic Games,
and with the goal of attaining “post-World War II largest nominal GDP 600 trillionyen”, the Government will designate the two years until the end of next year as the“intensified reform reinforcement period”, and by establishing the following
initiatives as “new goals”, develop the most easiest environment for doing businessin the world to enable private sector to fully show their abilities which link toeconomic growth.
[1]

Reforms of remained “hard-rock regulations”
With respect to so-called “hard-rock regulations” for which no reform
has been made for many years, although they have prevented the private
sector from demonstrating their original thoughts as the economic andsocial situation change, the Government will break through theregulatory and institutional reforms through the use of the national
strategic special zones.
More specifically, the Government will add necessary designatedzones, and “visualize” concrete projects utilizing reform matters in an
accelerated rate, in addition to adding and deepening the existing
regulatory reform matters, seeing the followings as the areas and mattersthat require particular attention:
To encourage acceptance of “foreign human recourses” in a wide variety
of fields;
To promote “inbound” demand through the use of the concession system;
To promote “sharing economy” in a wide variety of fields;
To realize “equal footing” among business entities in a wide variety offields;To promote “diversified ways of working” especially in global andemerging companies; andTo reform the fields of “primary industry” and “tourism” contributing toregional revitalization.







[2]

Reinforcement of “gateway” functions to embody projects
In addition, the Government will constantly and comprehensively
respond to concrete needs one by one, including institutional obstacles
facing private business operators and municipalities across the nationthat may not resultantly be subject to measures in the national strategic
special zones (such as the confirmation that they can be realized under
the current system, in addition to nationwide measures and measures in119the structural reform special zones), and will reinforce the function as the“gateway” to embody all projects in close collaboration with theeconomic and other associations.
ii) Making and implementing projects promptly and addition ofdesignated zones
In the existing ten designated zones, the Government will thoroughly
utilize the regulatory reform matters under the National Strategic Special
Zones Act, and strongly work on the related municipalities to realize concrete
projects in a visible manner.
To this end, the Government will link the six primary designated zones
to further reforms based on the evaluation of the previous efforts conducted at
the end of the last year. With respect to the secondary and subsequent
designated zones, the Council on National Strategic Special Zone will
stringently evaluate results of the reforms based on the National StrategicSpecial Zones Act and the “Basic Policy for the National Strategic Special
Zones” (decided at the Cabinet meeting held on February 25, 2014), andmanage the progress using the PDCA cycle.
The Government will quickly respond to highly economical regulatory
reform proposals made by municipalities and the private sector across thenation, realize concrete projects one by one, and designate new zones, if
necessary.
iii) Addition of further regulatory reform matters
With respect to the national strategic special zones, the Council on
National Strategic Special Zone and the National Strategic Special Zone
Working Group will examine to add the following regulatory reform matters,in addition to the regulatory reform proposals not addressed to date and thosesolicited from all over the country, to the National Strategic Special Zones Act,and take prompt legislative measures, including submitting them to the next
session of the Diet.
To this end, proposals from any regions not designated as the national
strategic special zones and proposals that had never resultantly become
subject to the measures in the national strategic special zones will bepositively considered for realization as the nationwide regulatory reform
measures or as the regulatory reform measures in the structural reform special
zone or comprehensive special zone from the standpoint of “realizing thereform by choosing nationwide or special zone measure”.
Based on the policy of “soliciting proposals at least twice a year” in the
Basic Policy for the National Strategic Special Zones, the Government will
steadily solicit proposals from municipalities and the private sector
nationwide.

120

At that time, the Government will concurrently solicit proposals fromprivate business operators and municipalities to add and deepen “Reform 2020”
related projects, the momentum of the reforms in the growth strategies, andencourage the substantiation of each projects for being showcased by realizing
necessary regulatory and institutional reforms.
(Formation of globally competitive international cities and developmentof global innovation centers)[1] Further improvement of international urban function in the Tokyozone
 There are as many as 29 “Urban Reconstruction Projects” utilizing
the special exemption under the Act on Special Measures Concerning
Urban Reconstruction (Act No. 22 of 2002, as amended) in the Tokyo
zone, including the eleven projects consisting of the “Tokyo Global
Business Front” in the neighborhood of the Tokyo Station, with theaim of concentrating Japanese and foreign financial institutions andfostering the related human resources, of which economic ripple
effect amounts to as much as approximately 2.5 trillion yen only with
10 projects designated prior to the end of the last year.
 The Government will continue to relax the housing coverage ratio forpromotion of urban dwelling (special exemption from the BuildingStandards Act (Act No. 201 of 1950, as amended), and the Zone
Council will expedite necessary adjustments to further improve theglobal city functions of the Tokyo zone, among other zones. The
Government will also publish a plan to increase the total number of
the above-mentioned “Urban Reconstruction Projects” to 100 in two
years as part of “Global Business 100,” aiming to realize it early.
 With respect to “acceptance of foreign human resources supporting
housekeeping,” the Government will positively consider
implementing the project in the Tokyo Metropolitan area where there
are large concrete needs, based on the status of implementation in
Kanagawa and other regions, and reach conclusion promptly.
[2]

Fundamental strengthening of the Tokyo One-Stop Business
Establishment Center The “Tokyo One-Stop Business Establishment Center”, opened in
April last year that accept various applications necessary for startingup and opening business, will develop a support system in whichelectronic application is available for six clerical services including
registration, tax affairs, and pension in order to further encourage
start-up and opening of business by entrepreneurs (including foreignones), and expand the scope of acceptance of applications at counterscurrently available only for parts of clerical services relating to theimmigration controls to all clerical services, thereby fundamentally
improving the convenience of the Center.
 From the standpoint of facilitating immigration procedures of foreign
people in connection with business start-ups, the Center will add

121



“Engineer/Specialist in humanities/International services” to thestatus of residence they can apply at the Center, in addition to“Business manager” and “Intra-company transferee.” The Center will
also extend the deadline for application for the status of residence
which is currently within six months after incorporation of a company.
In order to improve its utilization ratio, the Center will closelycollaborate with the Government’s support measures for
SMEs/venture companies, and arrange for active introduction of
the Center at the business start-up counters of the Japan External
Trade Organization and strengthen public relations for Japanese andforeign people who wish to start up business, and foreign companies.

[3]

Promotion of “demonstration of near future technology” relating
to small drones and fully automated driving
 Under the revised “Japan Revitalization Strategy” 2015, in thenational strategic special zones, demonstration experiments of small
drones were conducted in Semboku City in July last year, and Chiba
City in April this year, while those of automated driving was
conducted in Kanagawa Prefecture (Fujisawa City) in February thisyear, and Sendai City in March this year. In order to promote “nearfuture technology demonstrations” in the national strategic special
zones, the Government will hold an international competition race ofsmall drones in Semboku City in July this year and frequently
conduct other demonstration experiments including the case of
involving necessary regulatory reforms to verify their effects.
 For automated driving, in order to aim at technical development up
to “Level 4” (fully automated driving), necessary measures will betaken promptly to realize demonstration on public roads of moving
services by unmanned automated driving in the special zones within
next year under the “Public-Private ITS Initiative/Roadmaps2016”(decided at the IT Strategic Headquarter on May 20, 2016) to enable
monitoring of an unmanned vehicle through the use of remotedevices and driving of automated vehicles without steering wheel andaxel pedal in the demonstration experiments on public roads.

[4]

Verification of “private residence” in the national strategic specialzones
 In order to respond to rapid increase of lodging needs of Japanese andforeign tourists, the Government will verify concrete problems with
implementation of the initiatives of so-called “private residence”
services now provided in Ota-ku, Tokyo and certain other national
strategic special zones (lodging in the special zones) based on actual
results of those services.
 In order to contribute the nationwide measures for private residence
rules now under discussion, the Zone Council for the national
strategic special zones will continually hear opinions from private
business operators on additional regulatory and institutional reforms,

122

including the requirements for the minimum number of lodging days
and the minimum floor areas of private residence in the special zones,
and surely realize necessary regulatory and institutional reforms.
(Construction of sustainable social security systems, such as response to
wait-listed children)[5] Measures for children on waiting lists reflecting the actual situationof the region
 While it is requested to eliminate the numbers of children on waiting
lists mainly in urban areas, the Government will consider measuresfor children on waiting lists reflecting the actual situation anddemands of the region, as necessary, based on the details and thestatus of implementation of the “Urgent measures toward theelimination of wait-listed children” compiled by the Ministry of
Health, Labour and Welfare on March 28 this year and the “Plan for
Dynamic Engagement of All Citizens” and reach conclusion
promptly.
 Concrete subjects of discussions include, for example, promotion ofutilization of childcare staff, other than nursing teachers, who support
nursing teachers, disclosure of information and third party
evaluations, including the utilization of the national strategic special
zones, provided that the quality of childcare may not consistently be
deteriorated.
[6]

Clarification of exemptions from the adaptation of the barrier freeordinances to small-sized licensed nursery schools
 In order to promote establishment of small-sized licensed nurseryschools as measures for wait-listed children, the Government willpromptly take the required measures to encourage reasonableadministration by refraining from calling for regulations on facilities
that users of small-sized licensed nursery schools are not assumed touse, given the purpose of the Barrier-Free Law of securing
autonomous life of ordinary citizens including children, after
clarifying that the Government does not oblige small-sized licensed
nursery schools to adapt to the building relocation and othersmoothening standards under the Barrier-Free Law, so that the Tokyo
Metropolitan Government may clarify by notice that a residential
complex can smoothly be used to establish a small-sized licensed
nursery school by changing the purpose of that complex as concreteadministration of “Article 14 of the Tokyo Metropolitan Government
Barrier-Free Building Ordinance” under the Barrier-Free Law, even
if it does not meet the designated standards.

[7]

Construction of a new nursing mechanism for compulsory
education of “children in need of medical care”
 Reflecting rapid increase of children in need of “medical care,” suchas sputum suction and tube feeding, in daily life, the Government will

123



[8]

consider enabling nursing not at home, such as at schools and whengoing to and returning from schools, including review of the current
on-visit nursing, in order to secure the opportunities of so-called“children in need of medical care” to fully receive compulsory
education, and reach conclusion promptly.
To this end, the Government will collaborate closely with the related
ministries and agencies on the existing measures after fully
considering desirable financial sources and fiscal restrictions.

Prior implementation of “work style revolution” of public officials
in the special zones
 In the national strategic special zones, the “Employment Guidelines”
have been developed and “Employment Consultation Centers” havebeen established for the purpose of introducing diversified work
styles and employment patterns. Special measures have been taken
for movement of human resources from government offices tostarted-up companies in order to facilitate movement of humanrecourses to the growing fields.
 The Government will strengthen the initiatives based on the previous
measures, and take measures for municipalities and other public
offices to lead the “work style revolution.” For example, given theefforts of municipalities to correct disparities of treatment between
regular employees and non-regular employees working at publicnursery schools, consumption life centers and other public offices
toward the principle of equal pay for equal work, the Government
will encourage public offices to lead problem solutions byconsidering how certain regulatory reform matters should be applied.
 Based on proposals from municipalities and other entities, theGovernment will utilize the special zone system to substantiallyexpand introduction of work style free from time constraints, flexible
way of work, and telework to public officials.

(Promotion of regional revitalization through acceptance of foreign humanresources including tourists)[9] Lifting of the bans on planning and provision of travel products bylodging service providers such as lodging in farmhouses
 It is important for enthusiastic lodging service providers to plan andprovide “region-limited” travel products utilizing resources peculiar
to the relevant region in the acceptance-side region (community),such as farmhouse lodging, in order to respond to an increase of
tourists including foreign people visiting Japan and promote regional
revitalization.
 To this end, the Government will consider simplification and otherreview of certified travel service supervisor required by the Travel
Agency Act (Act No. 239 of 1952, as amended), considering
demands in the national strategic special zones, and take necessary124measures, in order to broaden treatment of such “community-based
travel products” by lodging service providers.
[10] Promotion of acceptance of “foreign human resources” in a broad
variety of fields
 For acceptance of “foreign human resources” in the national strategic
special zones, the projects in Kanagawa Prefecture, Tokyo
Metropolitan area and Fukuoka City were approved last year basedon the exceptional measures for “human resources supporting
housekeeping” and “human resources for business start-ups”
included in the Revised National Strategic Special Zones Act in Julylast year, and the Amendment of the Act, that has been submitted to
the Diet in March this year and has come into force in this May,
contains the provision that the Government will consider concretemeasures for “Cool Japan human resources” to learn professional
knowledge and technologies and enhance their opportunities to work
expeditiously within one year after the enforcement of that Act, andtake necessary measures based on results of such consideration.
 It is provided for in “additional items for regulatory reform for the
National Strategic Special Zones” (compiled at the meeting of theCouncil on National Strategic Special Zones on March 2, 2016)that the related ministries and agencies will work together to consider“lifting the ban on work of foreign human resources who will engage
in agriculture” and reach conclusion promptly.
 In order to encourage revitalization of the related industries andresponses to inbound demands, the Government will conduct anecessary study about accepting a wide variety of foreign humanresources who the national strategic special zones should accept, as
well as the above-mentioned various foreign human resources, basedon proposals of municipalities and the private sector.
 With respect to “acceptance of foreign human resources supporting
housekeeping,” the Government will positively consider
implementing the project in the Tokyo Metropolitan area where there
are large concrete needs, based on the status of implementation in
Kanagawa and other regions, and reach conclusion promptly.
[Reprinted][11]

Further relaxation of the requirement for issue of region-limited
multiple-entry visas
 In order to promote tourism and support for reconstruction in themain regions affected by the Great East Japan Earthquake, theGovernment will consider further relaxing the requirement for issueof region-limited visas and promptly take necessary measures toincrease the number of tourists.
 At the same time, the Government will proceed with introduction of
the concession system to airports and other various infrastructures,and the zone conference for the national strategic special zones will125

from time to time hear opinions from private companies on additional
regulatory and institutional reforms, and surely realize necessary
regulatory and institutional reforms.

126

Ⅲ. Strengthening of the Power to Create Innovation Ventures and Creationof Human Resources full of challenge spirit
1.
(1)Strengthening of the power to create innovation ventures
Progress in achieving KPIs
<KPI> “Aim to increase companies’ investments in universities and national researchand development agencies by three times by 2025”: Companies’ researchexpenditures to universities and national research and development agencies(FY2014 results: 115.1 billion yen)
* New KPI established this year
<KPI> “At least 10 Japanese universities will be in the top 100 world universities in
the next 10 years.”⇒World University Ranking 2015-2016, Times Higher Educations magazine: 2Japanese universities within the top 100; QS: 5 Japanese universities within the
top 100; Shanghai Jiao Tong University: 4 Japanese universities within the top
100.
<KPI> “Japan will become the No.1 global innovator within the next five years”: 5thplace in 2013 to 2014; 4th place in 2014 to 2015
⇒ 5th place in 2015 to 2016 (down one rank from last year)<KPI> “Aim to increase the number of people eligible for annual salary or mixedsalary systems from 6,000 in FY2014 to 10,000 in FY2015”⇒ Approximately 10,400 persons eligible for annual salary systems as of October
2015 (attained)* New KPI established this year (increase the number of researchers between the
sectors in Japan by 20% by the end of FY2020)<KPI> “Aim to allocate resources to reform initiatives at each university and maintainthe percentage of the amounts affected at about 30-40% of the operation costsubsidies as at the end of FY2015.”⇒ FY2015 results: 32% (FY2014 results: 21%)
* New KPI established this year (aim to allocate resources to strategic reform
initiatives to strengthen the functions of each university (including the reforms
during the reform acceleration periods (from FY2013 to last year)) and maintainthe percentage of the amounts affected at about 40% of the operation costsubsidies through the third medium-term goal period of the national university
corporation (from FY 2016 to FY 2021))<KPI> “Aim to double nominal GDP as a percentage of VC investments in venturecompanies by 2022.”⇒ Current: 0.028% (3 year average between 2012 and 2014) (Source: “System of
National Accounts,” Cabinet Office and “VEC YEARBOOK/Annual Report on
Japanese Startup Business,” VEC)
* New KPI established this year

127

(2)
i)

Specific new measures to be taken
Finishing of construction of innovation national system
Considering the conclusion of the Act Partially Amending the National
University Corporation Act (Act No. 38 of 2016) (the “Amended National
University Corporation Act”) and the Act on Special Measures for Promotionof Research and Development by Specified National Research andDevelopment Corporations (Act No. 43 of 2016) (the “Specified National
Research and Development Corporation Act”) in May this year, theGovernment will move its priorities to development of a framework to
reinforce the power to create innovation and how it should be implemented.
To this end, the Government will encourage details of the “Comprehensive
Strategy on Science, Technology and Innovation 2016” (decided at the
Cabinet meeting on May 24, 2016) toward the realization and embodiment of“Society 5.0” published in the fifth-term Science and Technology Basic Plan
(decided at the Cabinet meeting on January 22, 2016) that has just started thisfiscal year. The Government will also strengthen the functions of national
universities for which third-term medium-term goal period has started thisfiscal year, strengthen “bridging” functions of national research anddevelopment corporations, and further strengthen formation of a forum of
joint creation that will gather together technology, human resources andcapitals. In the course of the Fourth Industrial Revolution, the Government
will build up a full-scale “organization” to “organization” industry-academia
collaboration framework in order to expedite development collaboration
ranging from basic research to social implementation through open innovation.
Through those initiatives, the Government will create innovation and form up
a positive cycle of investments in next innovation seeds of fruits obtained fromsuch innovation, thereby aiming to realize the world’s most innovative country.
The Government will set a total government-private R&D investment
objective at 4% or higher as a percentage of GDP, and aim to set government
R&D investment at 1% as a percentage of GDP, while securing theconsistency with the “Economic and Fiscal Reconstruction Plan” included in
the “Basic Policy on Economic and Fiscal Management Reform 2015”(decided at the Cabinet meeting on June 30, 2015). If the nominal growth rateof GDP during the relevant period is estimated based on the economic
reconstruction cases in the “Economic and Fiscal Projections for Medium toLong Term Analysis,” the total amount of government research anddevelopment investments that will become necessary during the fifth-term
Science and Technology Basic Plan will be approximately 26 trillion yen.
To realize this goal, the Government will develop an environment tosupport aggressive investments medium- and long-term innovative researchand development leading to corporate innovation and the awareness andbehavioral reforms for “innovation management” to the maximum extent.
Also, based on the “Intellectual Property Strategic Program 2016”128

(decided by the Intellectual Property Strategy Headquarters on May 9, 2016),
the Government will promote the initiatives to construct an intellectual
property system that will meet the Fourth Industrial Revolution, and to
reinforce international standardization and certification systems.
[1] University reforms
A)
Designated national university corporation system
Considering the conclusion of the Amended National University
Corporation Act, the Government will start operation of the designatednational university corporation system to invite various resources
through high-level management power, aiming to attain the world’s top
level, and aim to designate several national universities by the end of thenext year.
The Government will also promote creation of concrete model
projects utilizing the relaxation of the regulations on projects to beinvested.
B)

Distinguished graduate schools (tentative name)
The Government will form up “distinguished graduate schools(tentative name)” that will enable integrated education in different fields
such as integrated area of arts and sciences, and state-of-the-art educationin Japan’s strong fields, considering the needs of the industry, and wheremultiple universities, private companies, national research anddevelopment corporations, and overseas top universities will collaborate.
“Distinguished graduate schools (tentative name)” will foster humanresources with practical knowledge and expertise beyond the borders of
the existing schools and disciplines, and will be eligible to award interdisciplinary degrees.
Given the fact that the four fields including the fields contributing tocreation of new industries were presented in the “Basic Thoughts”
compiled by the industry-academia-government panel of experts toconsider distinguished graduate schools (tentative name) in April thisyear, the Government will encourage full-scale and close discussion
about the relevant idea between universities and companies that will bestarted in this fiscal year, and start to sequentially construct graduate
school education programs in next fiscal year, such as composition of
education courses and development of collaboration systems.
As there are some cases in which students participate in the industryacademia joint research programs at a “distinguished graduate school(tentative name),” rules relating to involvement of students will be
included in the guidelines to be formulated for universities and national
research and development corporations (as discussed below).
If a distinguished graduate school (tentative name) is formed in the129inter-disciplinary fields of IoT, big data, artificial intelligence,
manufacturing, and robotics and other driving system from thestandpoint of effectively and efficiently fostering human resources whowill play key roles in the industrial competitiveness of Japan in the future,
it will collaborate with the Artificial Intelligence Technology Strategic
Council and other organizations.
C) Acceleration of the initiatives to strengthen the functions of universities
Throughout the third-term medium-term goal period (from this fiscal
year to 2021) of national university corporations, the Government will
aim to allocate resources to strategic reform initiatives to strengthen thefunctions of each university (including the reforms during the reform
acceleration period (from FY2013 to last fiscal year)) and maintain thepercentage of the amount affected at about 40% of the operating costsubsidies, such as the function strengthening expenses, president’s
discretionary expenses, and amounts affected by the personnel and salarysystem reforms including the transfer to annual salary system.
In order to encourage national universities to take concrete initiatives
on newly permitted land and other property lending projects to reinforce
their financial bases, the Government will formulate guidelines on thelend or other property lending project approach by the end of this fiscal
year.
The Government will continue to promote World PremierInternational Research Center (WPI) initiatives to construct research
centers where excellent talents will gather from all over the world, andconsider a mechanism to horizontally deploy experiences and knowhow
of such initiatives inside and outside the universities and introduce it innext fiscal year, given that those initiatives will produce distinguishedresults, including creation of new inter-disciplinary fields, personnel andsalary reforms, and invitations of excellent researchers and solicitations
for donation from outside of Japan. In evaluating national university
corporations, the Government will use them as advanced cases ofreforms towards improvement of research capabilities and promotion of
globalization initiatives.
The WPI initiatives will have marked the tenth anniversary at the endof this fiscal year since the WPI initiatives had started to provide support
in 2007, and problems with maintenance and development of excellent
research systems at the universities where support had been finished havebecome apparent. The Ministry of Education, Culture, Sports, Scienceand Technology will aim to consider measures and desirable approaches
to continue those system reforms by the end of this fiscal year, whileclarifying how they should be positioned in the whole initiatives foruniversity reforms, and based on the standpoint of reconstructing a dual
support system through management expenses grants and competitive130

expenses, and reach certain conclusion.
[2]

Bids-type grants of research expenses
In addition to the Ministry of Education, Culture, Sports, Science andTechnology and the Cabinet Office that have decided measures to set thepercentage of indirect costs at 30% starting with newly adopted projects
subject to bids-type grants of research expenses for this fiscal year, therelated ministries and agencies will start to take trial measures to permit
indirect costs of bids-type grants of research expenses up to 30% in thisfiscal year after conducting necessary examinations.
The Ministry of Education, Culture, Sports, Science and Technology
will gather and present objective grounds for the necessity for
appropriate treatment of indirect costs at national university corporations
within this fiscal year.
Based on the objective grounds presented by the Ministry of
Education, Culture, Sports, Science and Technology, the Cabinet Officeand the related ministries and agencies will start to consider execution
rules for allocation of bids-type grant of research expenses (bids-typegrant of funds) to indirect costs, and measures towards further
improvement of the usability as early as possible during this fiscal year.
In addition, for the grants-in-aid for scientific research, theGovernment will consider introducing support for independence ofyoung researchers (improvement of adoption and satisfaction rates) andnew examination methods, and reconstructing research categories inorder to reinforce fostering of young researchers and promote creation of
new academic disciplines, and compile and publish results of suchconsideration in or around the summer of this year.

[3]

Reforms of national research and development corporations(strengthening of “bridging” functions)
The Government will continue to strengthen the “bridging” functionsof national research and development corporations to connect technicalseeds of universities to the industry in the shortest distance and to further
strengthen formation of a forum of joint creation that will gather together
technology and human resources (such as introduction of crossappointment system and promotion of joint research with the private
sector). More specifically, for the Japan Science and Technology Agency
that will enter new medium-term and long-term goal period next year,
the Government will specify the initiatives to create original and newtechnical seeds and to lead to strengthening of “bridging” functions in
the medium- and long-term goals and medium-and long-term plans.
Towards innovations of regional medium- and small-sized companies
and mid-ranking companies, the Government will continue to promote131

strengthening of collaborations among the national research anddevelopment corporations, and public experimental and research
institutions (“public experimental institutions”), local universities andoverseas research institutions, and will build up a mechanism in which
national research and development corporations with bridging functions
will surely connect results of national projects to social implementation(provision of samples, and international standardization of technologies)
by the end of this fiscal year. For fundamental technologies that will
become a driving force for long-term national growth, such as ocean
resources investigation and development technologies, space andaviation technologies, natural disaster observation/prediction/responsive
technologies, and quantum science and technology, the Government will
promote and strengthen research, development and social
implementation by national research and development corporations, andencourage creation of ventures based on technologies spun out in those
processes.
Given the fact that the innovation environment has changed at ahigher pace than expected, the related ministries and agencies will work
together to survey and analyze Japanese and foreign scientific andindustrial technology movements, draw out strategies and road maps
utilizing the “strength” and “advantage” of Japan, sophisticate the R&D
infrastructures towards accelerated creation of innovation at national
research and development corporations, and develop and deploy
challenging and innovative research and development initiatives,
including ImPACT.
ii)

Promotion of full-scale “organization” to “organization” industryacademia-government collaboration with which the organization’s
top management sill get involved
Thanks to the previous reforms of universities and national research anddevelopment corporations, both of them have been embodying movements ofself-innovation initiatives, including strengthening of their respectivefunctions, and have strong interest especially in collaboration with externalorganizations and social implementation of technologies. As the innovation
environments including the Fourth Industrial Revolution change faster than
expected, it is important for companies to broadly introduce technologies inJapan and abroad, and their expectation for open innovation has been growing
as never before.
Given these situations, the Government will evolve industry-academiagovernment collaboration that has been just the collaboration between
individual researchers and a single corporate organization (R&D division) andof which R&D amount per project has remained immaterial from a global
point of view into a full-scale, thickly connected and sustainable industryacademia-government collaboration in which top managements ofuniversities, national research and development corporations and companies

132will get involved (realization of a large-sized joint research project).
More specifically, the Government will boost companies’ investments inuniversities and national research and development corporations by threetimes beyond the average levels of OECD member countries by FY2025.
Taking the designated national university corporation system and the specified
national research and development corporation system into consideration, theGovernment will create at least five core model organizations that will enter
into full-scale industry-academia-government collaboration and global
collaborations and invite investments from Japanese and foreign companies
by the end of the next fiscal year. With focus on those organizations, theGovernment will promote formation of research, development anddemonstration centers that will attract top talents from all over the world dueto the world’s level remuneration, plans and life environments.
In order to encourage those initiatives, the Ministry of Education, Culture,
Sports, Science and Technology and the Ministry of Economy, Trade andIndustry will establish a forum to implement and realize concrete behaviors
for creation of innovation, including setting of goals by universities andnational research and development corporations and promotion of theawareness and behavioral reforms to strengthen the systems and promote
corporate innovations through the industry-academia and government
dialogues by the end of this fiscal year. Besides these, the following initiatives
will be encouraged.
[1]

Formulation of guidelines for universities and national researchand development corporations“Towards Strengthening of Industry-Academia-Government Joint
Researches” compiled by the KEIDANREN (Japan Business Federation)
in February this year refer to a wide array of issues, such as the system
to promote industry-academia-government collaboration including thefunction to propose plans, treatment of intellectual properties, protectionof trade secrets, desirable method for payments of joint research costs
and improvement of the transparency of the purpose of use of expenses,
and desirable personnel exchange utilizing the mutual cross appoint
systems, as the issues of universities and national research anddevelopment corporations seen from the industry with the goal ofbringing a full-scale industry-academia-government collaboration into
reality. Based on the previous discussions at the related ministries andagencies, and after coordination with the industry, the related ministries
and agencies will work together to formulate guidelines compilingprescriptions for and thoughts on those issues by the autumn of this year,
from the standpoint of facilitating the industry-academia-government
collaboration. For clarity, points the industry is expected to address will
be included in the guidelines.

133

[2]

Utilization of the guidelines for evaluation of national university
corporations and designation of designated national university
corporations
In conducting annual evaluation of national university corporations
under the National University Corporation Act, details of the guidelines
to be formulated in [1] above will be utilized as examples of theinitiatives to be referenced in evaluating the industry-academiagovernment collaboration initiatives. In designating designated national
university corporations, the Government will fully identify whether or
not they have been taken the initiatives reflecting the guidelines to be
formulated in [1] above in entering into the industry and academia
collaboration, and whether or not they plan to take those initiatives.

[3]

Strengthening of the efforts of specified national research anddevelopment corporations
With respect to specified national research and development
corporations that are expected to create the world’s class research results,
in the fields where revolutionary innovations are sought to realize 600
trillion yen of GDP, such as the inter-disciplinary fields of IoT, big data,
artificial intelligence, manufacturing, robotics and other driving system,
and regenerative medicine, energy, environment, nanotechnology, andmaterials, the Government will start initiatives to form up research,development and demonstration centers for the industry-academiagovernment collaboration chiefly in non-competitive fields by the end of
this fiscal year, based on the needs of Japanese companies, or reinforce
those initiatives. At that time, attention will be paid to reinforce basic
research initiatives to realize innovative results in ten years or longer, andto invite more than one company in the same industry, and overseas
excellent organizations and researchers.
In addition, in the fields where Japan’s strengths can be utilized, suchas nanotechnology and materials, the Government will establish a global
research center that will enable strategic sharing, application and use of
big data, and construct human and research networks. In addition to thedirectionality of those initiatives, those concerned will identify
operational problems and institutional bottlenecks, such as procurementof products and services for research and development activities andshare how they should be recognized, and take corrective actions, asnecessary, for the purpose of strengthening the functions of specified
national research and development corporations.
The Government will consider measures to promote ripple effects ofeffective initiatives taken by specified national research and development
corporations on other national research and development corporations.
Specified national research and development corporations will
provide positive cooperation in forming up a distinguished graduate

134

school (tentative name) and strengthen partnerships with designatednational university corporations, only if they can exert their strengths.
iii) Promotion of intellectual property and standardization strategy
surviving the fourth industrial revolution, etc.
1) System development of intellectual properties, etc., responding to thefourth industrial revolution
With the growing practical use of new technologies, including IoT, big data,
and artificial intelligence, new systematical challenges relating to the way ofprotection of intellectual properties have been evident regarding copyrights, e.g.
the facilitation of and lowering cost for accumulation, processing, disseminationof information, coupled with further diversification of use of information,
together with the emergence of case examples of creation by artificial
intelligence.
After the analysis of such challenges, in connection with the way of nextgeneration intellectual properties responding to the fourth industrial revolution,
the Government will develop specific discussions on flexible right restriction
provisions in the Copyright Act, including effects and impacts of the provisions,etc., toward the early revision of laws made in the next ordinary Diet session,etc. while taking necessary measures for the drawing up of guidelines for acts,
etc. to be covered by the revision and the further improvement of licensing
environment.
2) Strengthening of system to promote international standardization
In the areas of the social system relating to the fourth industrial revolution andadvanced technologies where international technology development competition
is increasingly intensified, the Government will further promote the international
standardization of Japan’s excellent technologies also considering the moves ofthe strengthening of international standardization activities by Europe and the
U.S., as well as China and South Kores.
Specifically, in respect of the priority areas of automatic driving, smart factory,
and robot, the Government will carry out demonstration work for examinationof technologies, as well as collection and analysis of data, when necessary, whilequantitatively and qualitatively expanding international standardization
proposals issued by Japan.
In addition, to promptly implement proposals from Japan at international
standardization institutions and strengthen responses to proposals from othercountries, the Government will create a system that promotes international
standardization under the initiative of the Government during this fiscal year, e.g.
national research and development agencies of National Institute of Advanced
Industrial Science and Technology, etc. formulate plans for transactions to becovered and implement process control.
3) Development of human resources for intellectual property andstandardization
In a bid to ensure the quantitative and qualitative expansion of future humanresources for intellectual property, etc., it is necessary to cultivate creativity,135

protect and use intellectual properties, as well as promote education tounderstand the purposes therefor. To this end, the Government will realize crosscurricular curriculum management at schools so that qualities and abilities forintellectual properties are fostered as entire education curriculum in line withdirections of next-period guidelines for education, and launch “Intellectual
Property Education Promotion Consortium (tentative name)” composed of
relevant ministries and agencies during this fiscal year in order to support
creation of a system whereby learning at educational sites is carried out throughcollaboration between community and society.
Moreover, the Government will advance preparation of learning materials(industrial property rights, Unfair Competition Prevention Act, Copyright Act,
standardization) contributing to the intellectual property education. In parallel,
the Government will encourage the appointment of a Chief Standardization
Officer (CSO) to incorporate standardization of respective enterprises into a partof business and management strategies, while developing discussions mainly by
the Japanese Standards Association, keeping in mind the establishment in thenext fiscal year of a new qualification system concerning human resources forstandardization to ensure that industries can use the system. In addition, humanresources for standardization will be fostered in collaboration with industry,
government and academia through an increase of learning courses forintellectual properties and standardization at a university or graduate school,
whether arts or sciences.
4) Strengthening functions of an intellectual property dispute settlement
system
As for an intellectual property dispute settlement system, in order to actually
prepare appropriate and fair evidence collection procedures, etc. where theprotection of business secrets and the prevention of abuses of systems are
considered, the Government will increase the value of intellectual properties andobtain a certain conclusion regarding the way of legal systems during this fiscal
year through specific discussions on the basis of opinions of parties concernedsuch as industries about the way of strengthening the intellectual property
dispute settlement system that contributes to the creation of innovation.
iv) Realization of “Venture Challenge 2020”
Up to now, the Government has been implementing various venture businesssupport measures, including the improvement of systems and the provision ofsubsidies. However, the current society has yet to be a society that continuously
creates global venture businesses in a true meaning that discontinuous greatchanges are caused in the way of competition in the global market and the entire
industrial structure. Not only government organizations but also entrepreneurs,
universities, research institutions, and local governments could have lacked“awareness toward the world.”
In addition, we cannot say that sufficient collaboration of measures has been
carried out by relevant ministries and agencies. Because of this, venturecompanies that receive support must find optimal measures in light of their linesof business and growth stage. Further, even if measures themselves are suitable

136

for their own situations, as a result of the fact that respective ministries andagencies have been finding independently supporting human resources andsupporting institutions used in those measures, matching of supporting humanresources and supporting institutions which are most suitable for needs called onby venture firms could not be made adequately among a wide range of options.
We must reflect on such points with an open mind.
All related organizations, such as the Government and local governments, aswell as enterprises, universities / R&D institutions, financial institutions, andbusiness groups, must be aware that “building up of a venture eco-system” where
global venture businesses are created spontaneously in succession is theircommon target and each of them needs to strongly recognize that each is a party
who must settle the above-mentioned issues. The respective entities will actively
find what can be done for needs of venture companies while deepening
collaboration with other entities. Thus, it is necessary to begin such “proactive
movement formation” and create venture businesses of a different level.
To this end, with a target of 2020, the Government has compiled, as the“Venture Challenge 2020,” a future image to be aimed by the Japan’s ventureeco-system and a direction of policy measures to realize such image, as well as
the way of collaboration with entities composing the eco-system, such as private
sector (approved by the Headquarters for Japan's Economic Revitalization on
April 19, 2016).
In the U.S., so-called concept of philanthropy has been established where awide range of persons, such as successful entrepreneurs as well as leaders in theregional economy and enterprises, return fruits gained in the process of businessto the society and contribute to settlement of social problems, forming a virtuous
cycle in the society. To well establish a virtuous cycle like that in Japan is a
crucial challenge from the viewpoint of a virtuous cycle of growth anddistribution.
Based on this, the Government will promote the following measures in the
future:1) Establishment of “Kakehashi (Bridge) Platform between Regions andthe World”
The Government will establish the “Kakehashi Platform between Regions andthe World” which constitutes a path leading to challenges the global market by
venture companies nationwide, including regions.
To this end, the Government will:- Raise the quality of the “Kekehashi Project between Silicon Valley and Japan”
launched in the previous fiscal year, and expand the project to Asia, Israel, andEurope, while leading to the holding of the Global Venture Summit (tentativename) in 2020, thereby creating a system for international collaboration withworld venture eco-systems.
- Find “proactive” transactions not “waiting” through a transaction finding
caravan to local districts and other approaches.
- Establish a consortium of government-related organization to ensure a unified
implementation of facilities tying the world and regions and create a systemthat provides support in the process from finding of promising venture137

companies in a region through challenges in the global market. Coupled withthese efforts, the Government will establish an Advisory Board for advices
from private-sector human resources who support venture businesses where
respective ministries and independent administrative agencies have networked,
and are persons holding extensive networks for supporting venture companies
inside and outside Japan, thereby enhancing supporting measures of theGovernment and advices for support for respective venture firms. Moreover,broad involvement of the venture business supporting human resources in suchprocesses and sharing of various types of knowhow are decided as a measurethat leads to a raise in quality and base of Japan’s venture business supporting
human resources. In this regard, the Government will keep in mind that Japan
will not fall behind world trends by sharing in the consortium of governmentrelated organizations and the Advisory Board the global human resources
networks expanded through the “Kekehashi Project between Silicon Valley andJapan” etc.
A) Creation of a system for international collaboration with world venture ecosystems
By creating a framework connecting entrepreneurs and venture businesssupporting organizations in Silicon Valley, a cutting-edge venture eco-system in
the world, and entrepreneurs, etc. in Japan, the Government will provide support
in finding business partners and improving business knowhow (“Kekehashi
Project between Silicon Valley and Japan” etc.)
In addition, from the standpoint of a raise in the quality of collaboration with
Silicon Valley, the Government will strengthen the finding of supporters, etc. forthe startup of business in Silicon Valley, who are enthusiastic about cooperation
with Japan, while expanding horizontally those initiatives also to other advanced
strongholds in Asia, Israel and Europe, thereby creating a strategic collaboration
system depending on the characteristics of the respective regions.
Also, the Government will strengthen the cooperation of overseas
entrepreneurs and supporters for the startup of business, e.g. creation of amechanism whereby investments in Japanese R&D venture businesses by theoverseas venture capital are encouraged and formation of research and practicaluse sites where the most advanced technologies and knowledge in the world are
introduced, while strengthening collaboration between those efforts and large
enterprises and leading to the creation of an autonomous innovation eco-systemby the private sector.
In addition, toward the “Global Venture Summit (tentative name)” in 2020
(In 2020 when Olympic and Paralympics Games are held, a world-scale event
will be held where first-rate corporate managers, entrepreneurs, venture capital,
and institutional investors are invited from all over the world for businessmatching, etc.), the Government will collaborate also with other internationallarge-scale events, while “visualizing” the appeal of Japan’s venture eco-systems
for overseas corporate manager, entrepreneurs, venture capital, and institutional
investors and disseminating information in full coordination with relevant
ministries and agencies.

138B) Finding of “proactive” local transactions
Through the use of special zones and promotion of the sharing economy, theGovernment will assist the dissemination of new projects to settle regional issues,
including depopulation and manpower shortage.
In addition, the Govenment will strive to strengthen collaboration with theregional transaction finding caravan by government-related organizations, local
startup accelerators, and municipalities that are enthusiastic about startup
support.
Moreover, the Government will implement measures in a united manner for
the finding of SMEs and mid-ranking companies leading the regional economy
using regional networks, support for creation of innovation beginning fromregional universities and establishment of “Regional Version of IoT Promotion
Laboratory,” and thoroughly make local transactions “proactive.”
Further, human resources who have accumulated adequate experience ofbusiness startup and corporate management in the world and the metropolitan
area will move back to local areas, which will encourage the “Proactive
Management” by local enterprises, while the Government will create amechanism which assumes the finding of entrepreneurs and the regional
development.
Also, the Government will promote formation of public venture businesses
that actively settle regional common issues through venture spirits and using
knowhow of private-sector projects, including the finding and fostering ofthoughtful young people who intend to start up a social business.
C) Unified implementation of related measures that connect the world and regions(establishment of the consortium of government-related organizations and theAdvisory Board)
The consortium of government-related organizations will study andcollaborate as much as possible in the same time advertisement for measures,
joint holding of various events, commonalization of application documents,
sharing and use of the results of various surveys (analysis of factors of growthof venture businesses provided by universities, international comparison ofbusiness startup activities), improvement of statistics and databases, andpreparation of venture business measure maps.
The Advisory Board will provide advice of a support policy for venturecompanies, etc. considered to have growth potential based on proposals, etc. forwhich proposals etc., were submitted from the respective government-relatedorganizations through the proactive finding of regional venture firms, etc., andact as a bridge to external organizations and enterprises. On this occasion,
government organizations will provide policy support that they hold in
collaboration with each other. Besides, the Advisory Board will provide advice
regarding implementation schemes for respective measures and the selection of
supporting human resources to be used.
In addition, the Advisory Board will continue studying the way of financing
venture companies and other matters while collecting and diffusing bestpractices regarding government procurement.

1392) Support for creation of autonomous innovation eco-systems by theprivate sector (exerting potentials of universities, national research anddevelopment agencies, and large enterprises)
As it has become possible to make capital contribution to funds forinvestments in venture businesses originating from universities by national
university corporations, the Government will continue promoting investment
activities through funds of four universities, namely, the University of Tokyo,
Kyoto University, Osaka University, and Tohoku University.
In addition, the Government will promote the active use of the designatednational university corporation system that enables capital contribution topersons providing consulting services, etc. through the use of research results ofuniversities.
Moreover, the Government will strive to make at least five universities or
national research and development agencies the most advanced strategic
research sites in the world having the world’s top human resources and joint
research facilities with enterprises. In parallel, to realize full-scale industryacademia collaboration where the top management of both an enterprise and auniversity is involved, the Government will encourage creation of anorganization-wide industry-academia collaboration system and thoroughimplementation of intellectual property management.
Besides, to vitalize venture investments by private enterprises, theGovernment will promote capital contribution to venture businesses and VCs as
well as carve-outs through further collaboration between large enterprises andventure companies and matching investments by government funds and private
funds, while facilitating efforts to foster human resources in order to increase
venture companies that will be investees of such capital contribution, etc. withthe aim of increasing human resources who challenge the startup of business.
Coupled with these initiatives, the Government will review the way of socalled philanthropy that fits in with Japan also considering trends and otherfactors in the U.S.

140

2. Development and securing of human resources through amultidimensional approach

2-1. Strengthening human resource capabilities(1) Progress in achieving KPIs
《KPI》 “The rate of teachers who can teach using IT during the class istargeted at 100% by 2020.” (Fiscal 2014: 71.4%)* KPI newly set《 KPI 》 “Ensure that the rate of formulation of IT environment
improvement plan in prefectures and municipalities is 100% by
fiscal 2020.” (Fiscal 2014: 31.9%)* KPI newly set《KPI》 “Ensure that the rate of improvement of ordinary classes for
wireless LANs is 100% by fiscal 2020.” (Fiscal 2014: 27.2%)* KPI newly set《KPI》 “Ensure that the number of students of members of society atuniversities and technical schools is 240 thousand in five years (by2018)” (2014: 120 thousand)⇒2015: 120 thousand《KPI》 “The rate of employment for the age 20 to 34 in 2020: 79% (2012:74%)”⇒2015: 76.1%(2) Specific new measures to be taken
In the “Japan Revitalization Strategy Revised in 2015” (approved by the
Cabinet on June 30, 2015), in a bid to strengthen human resource capabilities
that support the future on the basis of the notion that investments in humancapital will lead to certain and long-term return, the Government showed
initiatives, etc. concerning the promotion of career education, including
entrepreneur experience, etc., the creation of an education system throughcollaboration between special technical schools and industries, promotion ofinternship at universities, etc., enhancement of functions for fostering advanced
professionals at professional graduate schools, and the career development ofworkers. It is important to continue promoting those initiatives for strengtheningof human resource capabilities. In addition, from the standpoint of thedevelopment of global human resources, efforts to improve English capabilities
must be strengthened and educational environment functions at education
facilities outside Japan must be strengthened further so that children overseas
can receive high-quality education. At the same time, looking forward a great
innovative change of the new fourth industrial revolution, the Government needs
to advance new initiatives in view of strengthening of human resource141capabilities which are a future investment.
i) Reform of elementary and secondary education looking forward thefuture society
Toward the fourth industrial revolution, the development of human resources
who are able to exert various capabilities of each person to the extent possible,
combine various different types of knowledge and create new added value will
be called on.
To this end, in the elementary and secondary education, it is necessary torealize the “education curriculums open to the society” that responds to thechanging society and world through collaboration with the region and the society,and realize learning in view of active learning suitable for “next-generation
schools” and education in response to respective leaning needs while fostering
information use capabilities (including programming) needed to create newvalue using necessary information.
In addition, it is also important to release teachers from time-consuming
miscellaneous tasks, as well as reduce their burdens and secure time to give aclass by using IT and external human resources.
Initiatives for reform of the elementary and secondary education to settle thoseissues are as follows:
1) Nationwide development of education called on in the era of innovativechanges
To promote educational reform where Japan’s advantages are exerted toward
a new era, the Government will make a best mix of improvement in teachers’
teaching capabilities in the class and active use of IT while fostering knowledge
and skills, such as vocabulary and reading comprehension ability, as well as
creative skills to solve problems, thoroughly improving learning in view of
dialogic and independent deep learning (active learning) and providing guidance
depending on respective individuals (adaptive learning), thereby fostering skills
to solve problems at schools at a school and realizing careful education
appropriate for the understanding level of respective children, which are suitable
for the “next-generation school.”
In addition, to foster information use skills whereby IT can be used to find andsettle issues depending on a development phase, IT will be used effectively
according to characteristics of each subject in the process of finding and settlingissues of all subjects. In respect of the programing education, the Government
will strive to secure an opportunity of experiential learning at elementary schools
and making subjects compulsory in response to the phase of development, e.g.
making common and compulsory the programming learning at junior highschools and the subject for information at high schools.
To carry out such education nationwide, the Government will, during this fiscal
year, compile conclusions for reviews of new curriculum guidelines that will
begin from fiscal 2020, fiscal 2021, and fiscal 2022 at elementary schools, juniorhigh schools, and high schools, respectively, and take necessary measures
therefor.
Moreover, in a bid to develop outstanding human resources leading new era,

142the Government will review the existing initiatives and arrange an opportunityof education for elementary and junior high school students nationwide withparticular motivation and outstanding capabilities in the areas of science andmathematics as well as information, thereby examining and promoting initiatives
to increase their capabilities.
2) Strengthening collaboration between the government and private sector
through education consortium
Including active earning and programming education, it is important to not
uniformly determine IT educational materials and contents used at schools, but
to broadly share, evaluate, evolve, and disseminate things supporting teachers’
teaching capabilities through creative efforts of the private sector andeducational sites depending on the needs of schools. To this end, during thisfiscal year, the Government will establish a government-private sector
consortium composed of school-related persons as well as education-related
entities and IT-related enterprises and venture businesses through collaboration
between mainly the Ministry of Education, Culture, Sports, Science andTechnology as well as Ministry of Economy, Trade and Industry and Ministryof Internal Affairs and Communications, thereby beginning initiatives throughcollaboration between the government and private sector, which will accelerate
education using IT for development and sharing of excellent educational
contents as well as dispatch of external personnel to schools.
3) Thorough improvement of teachers’ teaching capabilities anddevelopment of IT environment
To show teaching capabilities of respective teachers facing children at aschool site to the extent possible, it is effective to refer to overseas excellent
initiatives and effectively use IT and private education tools. To this end, theGovernment will strengthen efforts to further improve teachers’ teachingcapabilities using IT, etc. in the fostering and training of teachers. To promote
those efforts, the Government will strive to submit early to the Diet, including
the next Diet, a bill for unified reforms of the fostering, employment andtraining of teachers, which will contribute to improvement of the quality ofteachers.
In addition, the use of external human resources, such as private humanresources, at schools is important. Thus, the Government will promotecollaboration and cooperation with the region and the society while facilitating
the use of special teacher's certificates and the special temporary lecturers
system.
Further, in providing education using IT, the development of the IT
environment of schools is also important. To this end, in respect of theenhancement of IT equipment and network environments, it is necessary tocreate a “one terminal for one person system” used by children and stablewireless LAN environment while referring to overseas excellent initiatives
regarding terminals. On that occasion, it is important to take into consideration
the elements of the aspect of software, including trends of more dramaticincrease of data that process teaching materials and animation contents

143depending on each child and a point that a school affairs support system iscalled on, and develop effective, practical IT environment that is called on in
and after 2020. Considering these viewpoints, the Government will compile
specific measures before this summer as a “Plan for accelerating
informatization of education,” including the standardization of wireless LAN
environment, etc. required at educational sites and planned environmental
improvement depending on the scale and the development status of local
governments, and then steadily implement activities of local governments, etc.,
e.g. encouragement of drawing up of an IT environment development plan.
4) Response to issues of copyrights, etc. in the informatization ofelementary and secondary education
When proceeding with the informatization of elementary and secondary
education, in order to settle issues regarding copyrights in managing andsharing educational materials, etc. prepared by teachers using a cloud, etc., theGovernment will keep in mind a balance between protection of rights and use
while examining the way of copyright systems and licenses and pursuing thecompilation of desirable directions at the Council for Cultural Affairs.
In addition, when promoting the informatization of future elementary andsecondary education, the use of educational contents and the management andsharing of learning information of children on a cloud are effective so suchactivities need to be disseminated to school sites throughout Japan. Personal
information protection ordinances of local governments to use a cloud in thefield of education and a response to information security policy are differently
treated depending on municipalities in some cases. Because of this, to ensurethat convenience and effectiveness are consistent at educational sites acrossJapan through the protection of personal information and securing of
information security as well as the use of a cloud, the Ministry of Internal
Affairs and Communications will compile and announce advanced cases, etc.
during this fiscal year in collaboration with the Ministry of Education, Culture,
Sports, Science and Technology, thereby promoting the informatization of
education at school sites.
ii) Strengthening human resource capabilities through higher education
higher education, etc.
1) Producing world top-level human resources in response to the fourthindustrial revolution era (fostering and strengthening of humanresources by the Outstanding Graduate School (tentative name) and
Outstanding Researcher System)
Also based on the needs of industries, the Government will make possible
a unified education of different area, such as a science and mathematicsfused area, and education of most advanced education of Japan’s strong areas,
and form the “Outstanding Graduate School (tentative name)” in which
multiple universities, private enterprises, national research and development
agencies and overseas top universities work together. At the“Outstanding
Graduate School (tentative name),” human resources who are ready to work
will be fostered without reference to existing graduate courses and majors,

144and the degrees, including interdisciplinary fusion, can be awarded.
In addition, considering that four fields, including a field contributing to
the creation of new industries, were shown in April this year in the “basic
concept” compiled by the advisory council to examine the Outstanding
Graduate School (tentative name) composed of government, industry andacademia, the Government will promote full-fledged and close consultations
about initiatives that will be commenced at universities and enterprises fromthis fiscal year, while sequentially drawing up graduate school education
programs for formation of education curriculums and improvement ofcollaboration systems from the next fiscal year.
In this regard, students of the “Outstanding Graduate School (tentativename)” sometimes participate in joint research conducted by industries anduniversities. Thus, in drawing up guidelines for universities and national
research and development agencies, rules for involvement of students will
also be included [written again].
Further, regarding the Outstanding Researcher System that allows
excellent young researchers to play active roles in a stable post and open
environment, open recruitment was commenced in February this year andmany private enterprises expressed intentions to accept outstanding
researchers. These are welcome steps from the viewpoint of the mobilizationof human resources and technologies. The Government will analyze theresults, etc. of decisions on acceptance of outstanding researchers during thisfiscal year and organizations receiving such researchers, while promoting
steady implementation of the system so that the outstanding researchers are
accepted smoothly at universities, national research and development
agencies, and private enterprises. In particular, at specified national researchand development agencies and designated national university corporations,
the Government will actively facilitate acceptance of outstanding researchers
using a Cross Appointment System with private enterprises, etc. ahead ofother organizations.
2) Development of top-level information human resources leading IoT, bigdata, and artificial intelligence and strengthening of education of scienceand mathematics
To develop and secure human resources who create future society responding
to the advancement of IoT, big data, and artificial intelligence, the Government
will promote establishment of faculties and graduate schools that foster a highlevel of data scientists, etc. in the higher education. Through the development
etc. of standard curriculums for mathematics education which provides a basis
for science and engineering, the Government will reinforce school-wide
mathematical and information education, while strengthening functions fordevelopment of professional human resources for mathematical andinformation areas at universities, graduate schools, and higher professional
schools for creation of industry-academia collaboration networks, etc.
In addition, to foster top-level human resources, the Government will call
together world-level researchers at specified national research and development
agencies, etc. in collaboration with higher education organizations, etc., carry145

out researches in the fusion field of drive systems, including IoT, big data,
artificial intelligence, as well as monozukuri and robots, and develop humanresources in an integrated manner, while forming international research sitesthat enable the strategic sharing and use of big data, etc. in the areas, such as
those of nanotechnology and materials as well as the global environment, where
Japan’ strengths can be demonstrated, thereby fostering professional personnel.
In this regard, if the Outstanding Graduate School (tentative name) is formed
and outstanding researchers are selected in those fusion areas, the Government
will strive to collaborate with the Artificial Intelligence Technology Strategic
Council, etc. and foster doctor human resources and excellent researchers who
are ready to work.
3) New higher educational institutions that provide practical vocational
education
With rapid changes in industrial structure, capabilities and skills needed forworkers now continue changing at an accelerated rate. Thus, it is necessary todevelop environment where everyone can quickly and flexibly learn
sophisticated vocational professionalism in a timely manner. Regarding the“new higher educational institution that provides practical vocational education”
that assume the realization of development of environment,” the Government
will establish an unprecedented “vocational professional fostering institution”
with abundant expertness and an education implementation system where“sophisticated vocational human resources” capable of being a driving force ofsite-level innovation leading a world industrial revolution are produced, andwhich drastically strengthens human resources capabilities of Japan who can
obtain a wage and academic degree of the same or more than existing university
graduates. In an effort to provide high-quality practical vocational educationand flexible learning environment as a venue of leaning of a wide range of age
groups, including not only prevocational young people, but also ambitious
members of society who want a step-up in the current job and a job in which
they participate actively, the Government will seek to develop discussions on
the following matters at the Central Education Council toward opening suchinstitution in fiscal 2019 and then take require legal steps around this year.
Further, the Government will set a standard for establishment in response to a
new era immediately after the enactment of the legislative bill.
A) Reflecting future needs of human resources acquisition in industries
The Government will properly understand new social needs, including
those of the pool of human resources and human resources specs called on inindustries which are changing in the progress of the fourth industrial
revolution through collaboration between the nation and related industries,
and create a mechanism whereby such needs can be reflected in the respective
curriculums and programs with a priority placed on.
B) Providing flexible learning environment in response to the new era
The Government will make facilities and equipment reasonable andflexible so that, regardless of the young or the members of society, the146sophisticated vocational professionalism can be learned in quick responseto changes in the real society, while creating a mechanism whereby
diversified curriculums easily accessed by the members of the society areprovided.
C) Flexible securing and fostering appropriate teaching human resources
To fully secure and foster proper human resources who teach in therespective areas, the Government will positively use external personnel, suchas practical teachers, who can respond to human resources acquisition needsof industries. On this occasion, together with this measure, the Government
will create a mechanism whereby the effective appointment of practicalteachers is promoted substantially, e.g. opportunities for training where
teaching skills can be learned for a short time.
D) Built-in incentives for assurance and improvement of quality as a
“vocational professional fostering institution”
The Government will create an assessment system in which objective
indicators and support measures are linked on the basis of the results of theemployment rate and business startup rate of participants in the class, as wellas the rate of participation of members of society and the level of satisfactionof participants in the class. In addition, to secure social significance andmission of the “education institution producing “sophisticated vocational
human resources” capable of leading a site-level innovation, with a lot ofexpertness, who are able to obtain a wage and academic degree of the same ormore than existing university graduates and serve as a driving force of a sitelevel innovation that may lead a world industrial revolution,” the Government
will create a mechanism to assure adequate quality and provide anauthorization.
4）Holding the “Council for Promotion of Human Resource Development
for the fourth industrial revolution fostering promotion
When the fourth industrial revolution is progressing and changes in the poolof human resources and human resources specs called on by industries are
forecast, the Government is required to strategically develop the humanresources who can play active roles in growth industries, based on changes in
the medium- to long-term industrial structure and employment structure. To thisend, through collaboration between relevant ministries and agencies, industries,
labor world, educational institutions, vocational training institution, and humanresources fostering industries, the Government will, during this fiscal year,
create a mechanism whereby changes in the industrial structure and employment
structure as well as the image of human resources and their qualities as well ascapabilities in response to new industries assumed in such changes, which could
come in the future, are pictured properly, while the results thereof are recognized
and shared by the government and private sector and reflected specifically invocational capability development policies and educational policies.

1475) Enhancement of functions for development of sophisticated professional
vocational human resources at professional graduate schools, higher
professional schools, and special technical schools
In a bid to produce abundant managerial human resources both qualitatively
and quantitatively who bolster the growth of the Japanese economy and improve
the productivity of the service industry, etc., the Government will enhance
human resource development functions regarding management-related
professional graduate schools, in the form of increasing characteristics of therespective schools, including globalization and community-based operation as
well as the strengthening of specified fields which are expected to develop in the
future. In addition, the Government will review the professional graduate school
system as soon as possible, enhance assessments where diversified views ofrelated parties, such as students and industries, are adopted, promote assessments
by international assessment institutions, facilitate collaboration with faculties
and graduate courses, and advance the clarification of subjects which constitutea core on the bases of the needs of enterprises, etc.
In respect of higher professional schools, the Government will promotereviews of educational programs for the reorganization of courses of study, etc.,
which respond to future changes of society and needs of enterprises. Moreover,
to foster human resources bolstering Japanese enterprises that are developing
globally, the Government will push forward the acceptance of foreign students
from the Southeast Asia, etc. at higher professional schools and overseas
development of higher professional schools to Southeast Asian countries.
Also regarding special technical schools, the Government will, during thisfiscal year, consider measures for promoting acceptance of foreign students inorder to develop human resources responding to globalization and the way of theeducation of special technical schools, including the examination of results, etc.
of “practical professional curriculums for vocation,” while taking necessary
institutional measures by the next fiscal year to strengthen functions for
professional human resource development by special technical schools based on
the needs of industries and ensure the assurance and enhancement of quality.
Further, in enhancing functions to foster sophisticated professional vocational
human resources, etc. at those higher education institutions, the Government will
enhance systems for example to strategically develop human resources who play
active roles in growth industries, in light of changes in the medium- to long-term
industrial structure.
iii) Promotion of human resources management by enterprises
1) Promoting provision of information on human resources development
initiatives at enterprises
Regarding information on initiatives for development of human resources, etc.
by enterprises (hereinafter referred to as the “workplace information”), it isnecessary to introduce databases with high practicality for job seekers, in which
enterprises that are willing to develop human resources are easily assessed to bepositive. Thus, the Government will prepare formats for the “workplaceinformation” useful to job seekers and request enterprises to actively provide awide range of “workplace information.” In addition, when providing the148

“workplace information” of enterprises to job seekers, the Government will
make a comparison between enterprises easy and prepare lists to contribute to
selection of jobs according to their desires. Policies coping with these measures
will be complied during this fiscal year in order to implement them from the next
fiscal year.
2) Maximum utilization of middle-aged and elderly human resources
Due to acceleration of changes in environment surrounding enterprises, only
human resources development within enterprise cannot cope with such changes
adequately. In addition, in the midst of increases in workers who have various
careers through a change of job, etc. the Government will create a mechanism
whereby human resources with capabilities and experiences are able to fully
exert their capabilities at enterprises that particularly need personnel who isready to work (for example, local SMEs and emerging enterprises on the trackof growth). To this end, the Government will compile and organize knowhow
and issues on a trial temporal transfer in accordance with the “trial enrollment
temporal transfer program” of the Industrial Employment Stabilization Centerof Japan, examine the way of another support system that is intended to beestablished in FY2018, and reach conclusions. In addition, an opportunity forcontinuous career consulting from early life by the “self-career dock” etc. will
be secured.
3) Accelerating comprehensive measures to employ and foster young
people who will create the future (introduction and promotion of “selfcareer dock”)
The Government will seek to realize the environment where young people
who assume the future are able to exert their capability and personality in theirworking career. To this end, in light of enactment of the Act on Employment
Promotion of Young People, the Government will promote the development of
human resources, etc. by enterprises, including the promotion of information
provision by enterprises and the promotion of introduction of the “self-career
dock,” while supporting the voluntary development of capability, including thelearning of IT technologies contributing to the career formation of workers using
a professional practical education training, etc. In addition, to foster humanresources in the area of monozukuri with high productivity, the Government will
immediately study a reduction or exemption of examination fees for proficiency
tests and reach conclusions thereof during this year, while examining specificmeasures for invitation of the World Skills Competition to Japan and reachingconclusions by the middle of the next fiscal year.

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2-2 Reforming the way of working and reforming employment systems(1) Progress in achieving KPIs
《KPI》 “Decrease the number of people with unemployed period of six
months or more by 20% in the next five years” (2012: 1.51
million )⇒2015：1.08 million《KPI》 “Raise the job turnover rate of general workers (excluding parttime workers) who changed their job in the next five years) by
9% in the next five years” (2011: 7.4%)⇒2014: 8.9%
《 KPI》 “Employment rate of people aged 20 to 64 in 2020: 81%”（2012:75%）⇒2015: 78.1%(2) Specific new measures to be taken
In response to a supply restriction caused by the declining population and in abid to continue realizing sustainable growth, the Government will early enact abill for partial revision of the Labour Standards Act, etc., while realizing the
productive ways of working and strongly promoting initiatives for prevention of
overwork for diversified workers to participate.
Implementation and realization of reforming way of working
1) Realizing productive ways of working
To further promote the reform of way of working and realize a productive wayof working, it is important for the concept to further disseminate in the society,which constitutes an important factor for consideration of whether the workplaceallows individuals to move away from the awareness of “joining a certain
company,” improve expertness depending on capability and personality without
long-time constraints in the workplace and exert the value of the individual tothe extent possible when selecting jobs. To this end, the Government will further
proceed with the review of measures for further promoting visualization ofenterprises’ initiatives and results concerning working hours and human resource
development [stated later] (details are stated in (“III-2-2-ii) Promotion ofvisualization in the labor market”). In addition, regarding the reform of way ofworking, good practices are collected and made public in various forms, but theGovernment will not only reduce working hours but also improve productivity
and expand earnings to upgrade the reform. Moreover, regarding the flexible
way of working such as telework, the Government will examine, analyze andmake public the way of contributing to productivity improvement of enterprises,
thereby utilizing and promoting telework.
Besides, the Government will hold the “Labor / Financial Liaison Conference
toward Productivity Revolution of All Industries,” while supporting enterprises,
etc. in an integrated manner that work on both business administration andemployment management through collaboration between relevant ministries andagencies, e.g. promoting an initiative for advices regarding an employment

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creation policy from regional financial institutions, etc., thereby acceleratingproductivity improvement of regional mid-ranking companies and SMEs andsecuring human resources in growth industries.
2) Early establishment of advanced professional system
In respect of the “advanced professional system,” it is important for highly
creative workers to fully demonstrate their potential in response to needs ofworkers who desire the way of working which is evaluated on results not on
hours and increase options so that an efficient way of working is possible. To
this end, regarding subject jobs to be stipulated in ministerial ordinances, after abill for partial revision of the Labor Standards Act is enacted, the Government
will develop discussions at the Labour Policy Council and reach conclusions
early so that jobs leading to the creation of innovation in new industries andmarkets that are changing with the times are allowed appropriately and flexibly
through proper consultations between labor and management.
When introducing the system,
A) As support for enterprises, the Government will specify necessary informationand examples of entries in the work rules in legal guidance, and leaflets toensure easy labor management for persons subject to the system.
B) As support for workers, the Government will provide information carefully toworkers who wish to uses the system while eliminating anxieties of such
workers when necessary, as well as establishing and disseminating a one-stop
consultation system that supports quick solution of problems when troubles
occur.
3) Realization of a policy of equal pay for equal jobs
In a bid to increase options for diversified, flexible ways of working of womenand young people, it is necessary to thoroughly improve labor conditions of nonregular workers. And to realize a policy of equal pay for equal jobs,
1) For dissemination and enlightenment, the Government will draw up guidelines
in which whether or not what kinds of differences of labor conditions arereasonable is shown by examples, etc. in order to ensure accurate applicationof the Labor Contract Act, Part-time Employment Act, and Worker
Dispatching Act.
2) The Government will clarify matters to be corrected as unreasonabledifferences of labor conditions, refer to systems of Europe so that suchcorrection is made smoothly, examine a packaged revision, etc. of the Labor
Contract Act, Part-time Employment Act, and Worker Dispatching Act,
including the establishment of governing provisions for judicial rulings
concerning unreasonable differences of labor conditions and the clarificationof accountability of business operators pertaining to differences of labor
conditions between non-regular workers and regular workers, and then submit
relevant bills to the Diet.

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In addition, on the basis of the “Plan for Realizing Conversion to Regular
Employees and Improvement of Labor Conditions” (approved by the
Headquarters for Plan for Realizing Conversion to Regular Employees andImprovement of Labor Conditions on January 28, 2016), the Government will
aggressively promote conversion from non-regular workers to regular
employees and improvement of labor conditions.
4) Shortening long working hours
Promotion of a reform of the way of working assuming long working hours
across the society, regardless of men or women, will allow new workers who
were unable to work due to childrearing and nursing care to get a job. In addition,
various initiatives and creative approaches of enterprises that attempt to makeup for a reduction in working hours with improvement of productivity and anincrease in motivation of individual workers who try to achieve good results
within working hours will lead to improvement of the “quality” of labor.
Through this, it is anticipated that earning capability of enterprises will bestrengthened and the birth rate will rise, e.g. by further balancing childrearing
and nursing care with working. Moreover, in view of measures for declining
birth rate and considering the population distribution of Japan, we must keep inmind that the strengthening of efforts to immediately shorten long working hours
will result in a significant increase in effects. In order to maintain Japan’s
industrial competitive edge in the world and realize sustainable economic growth,
coupled with challenging the declining birth rate and aging population, which
are structural issues of the Japanese society, it is required to quickly make apolicy decision on and strengthen initiatives for shortening long working hours
at this timing. Reflecting various initiatives already made by the government toreform the way of working, the recognition of challenging childrearing andnursing care while working has significantly been heightened. Thus, it is vital tocapture this timing and further support the correction of such practice.
A) Strengthening enforcement of the Labor Standards Act
The Government will strengthen supervision and guidance by the Labor
Standards Office under the Labor Standards Act. In particular, the Government
will implement thorough supervision and guidance with all workplaces
suspicious of overtime work of more than 80 hours per month as the subject ofpriority supervision. In addition, the Government will reinforce supervision andguidance in case the notification of the 36 Agreement, which stipulates overtime
work of more than 80 hours per month, was submitted.
Moreover, in view of strengthening the enforcement of the Labor Standards
Act, the Government will thoroughly disseminate the contents of andconsultation window for the Labor Standards Act, while strengthening a system
for supervision and guidance as well as investigation, including the improvementof a necessary personnel system, to make the strengthening of supervision andguidance valid.
B) Review of the way of overtime work regulations
The Government will early enact the bill for partial revision of the Labour

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Standards Act, etc. submitted to the Diet in April last year, while reviewing theway of overtime work regulations set forth in the 36 Agreement.
C) Promoting voluntary initiatives of enterprises
In addition to the measures to strengthen enforcement of laws and to promote
voluntary initiatives of enterprises to shorten long working hours, theGovernment will revise the guideline under the Act on Special Measures for
Improvement of Working Hours Arrangements (Act No. 90 of 1992) andincorporate in-depth measures into the revision as specific example, e.g. taking
a measure for rest intervals between working days. Also, the Government will
support enterprises which voluntarily strive to shorten long working hours andintroduce rest intervals between working days.
D) Promoting initiatives for national government employees
The Government will promote initiatives to shorten long working hours ofnational government employees also in promoting initiatives at enterprises.
Specifically, the Government will promote initiatives set forth in the “Guidance
for active social participation by women and promotion of work-life balance,”
including “Yukatsu,” and the promotion of streamlining operations using the
flextime system expanded in April this year as well as renewed thoroughreflection in personnel evaluation of efforts and results of managerial staff, etc.
to shorten long working hours, while examining working time management
using a system in light of the progress of the “reform of the way of working.”
Moreover, considering reviews made at the “Advisory body for accelerating thereform of the way of working at Kasumigaseki,” the Government will
immediately implement vertical development of advanced examples for shifting
to a paperless system and telework, while promoting the streamlining of Dietrelated operations. In addition, the Government will comprehend the
management capability called on managerial staff and study the way of
initiatives to improve the capability.
E) Development of a nationwide work-life balance drive, etc.
To foster social momentum toward shortening long working hours, seminars,
etc. to realize work-life balance have been held across Japan. On that occasion,
the Government will enhance such seminars, etc. so that the contents thereof arechanged to those not only to enlighten awareness but also to share specificpractical methods and best practices for the realization of work-life balance.
In addition, to understand and analyze impacts of the realization of work-lifebalance on earnings, etc. of enterprises, the Government will follow up
subsequent initiatives and results of enterprises that are subject to a national
award and collection of case examples.
To promote initiatives to realize a work-life balance at enterprises, with regard
to the framework for broader evaluation of enterprises that promote a work-lifebalance, etc. in the procurement by the nation, which was introduced in this fiscal
year, the Government will expand the framework to the procurement byincorporated administrative agencies, etc. during this fiscal year and in principle,
completely implement the new framework in the next fiscal year. Coupled with153

this effort, the Government will promote similar initiatives at local governments
and private enterprises.
5) Improvement of environment to raise wages and minimum wages
toward sustainable economic growth
The Government will provide support for enhancement of productivity of
SMEs and micro enterprises and improvement of transaction conditions so thata virtuous cycle of a wage rise at all income groups and an increase of corporate
earnings is sustained and expanded, while continuous promoting a rise in wages
and striving to rise minimum wages to around 3% per year also considering thenominal GDP growth rate.
Promotion of visualization in the labor market
Regarding initiatives for “visualization” of workplace information, including
the establishment of databases for enterprises promoting active social
participation by women (February this year) and the commencement ofprovision of workplace information (March this year), the Government will seek
to realize a virtuous cycle where enterprises that are more active in the reform of
the way of working, including development of human resources and theshortening of long working hours, are selected more in the labor market and thisfurther promotes voluntary initiatives of enterprises. To this end, theGovernment will carry out uninterrupted improvement of a mechanism toprovide such information, while examining the matters listed below, to integratevarious initiatives for “visualization” so that the mechanism becomes a highly
convenient one for information provision without reference to the attribute ofyoung people or women:
1) Introduction of a highly convenient search function and a mechanism forcomparison between enterprises2) Conjunction with various certification systems, such as those for “Eruboshi
Certification,” “Kurumin Certification,” “Youth Yale Certification,”“Stocks of Nadeshiko Brand,” and “Health Management Stocks”(indication of whether the certification are obtained)
3) Items subject to information provision (from the viewpoint of theshortening of long working hours, for example, information provision byenterprises is made available regarding overtime working hours enteredinto in the 36 Agreement)
4) The way of disclosing policies for the way of working including shortening
long working hours and various ways of working at listed companies
After examining those items, the Government will aim to implement them in thenext fiscal year, and compile policies to cope with during this fiscal year.
Creation of a highly foreseeable labor dispute solution system, etc.

In light of the “Japan Revitalization Strategy (revised edition 2015)”(approved by the Cabinet on June 30, 2015), the Government will
immediately examine the way of a highly foreseeable labor dispute solution
154system, etc., including the way of the monetary relief system at the time whena dismissal is invalid and necessity thereof, at the “conference for review of theway of transparent and fair labor dispute solution system” set up in October lastyear, reach conclusions as soon as possible, develop deliberations at the Central
Labour Standards Council, and then take required institutional measures.

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2-3 Participation by diverse workers(1) Progress in achieving KPIs
(Promoting active social participation by women)《KPI》 “Boost the employment rate of women (age 25-44) to 77% by
2020”⇒2015: 71.6%（2012: 68%）
《KPI》 “Aim for the elimination of childcare waiting lists by securingchildcare arrangements for about 500,000 children by the end of
next fiscal year” (Plan to Accelerate the Elimination of Childcare
Waiting Lists)⇒ The childcare arrangement expanded to about 219,000 in the last 2
years, FY2013 and FY2014.
(Promoting active social participation by the elderly)《KPI》 “Boost the employment rate of the elderly (age 60-64) to 67% by
2020”⇒2015: 62.2%（2012: 58%）
(Promoting active social participation by the handicapped)《KPI》“Boost the employment rate of the handicapped to2.0% by 2020”⇒2015: 1.88%（2012: 1.69%）(Utilization of highly-skilled foreign professionals)《KPI》 “Aim to recognize 5,000 highly-skilled foreign professionals by
the end of 2017 and further 10,000 highly-skilled foreign
professionals by the end of 2020”⇒ A total of 4,347 foreign nationals have been recognized as highlyskilled foreign professionals by December 2015 since the introductionof the points system in May 2012(2) Specific new measure to be taken
Act of Promotion of Women's Participation and Advancement in the
Workplace was enforced completely in April this year and initiatives, including
the drawing up of an action plan, etc. in accordance with the Act, have beenpromoted by companies, etc. Considering these development, the Government
will promote the following measures to further push forward the active social
participation by women. In parallel, based on the “Priority Policies 2016 to
Accelerate Active Social Participation by Women” (approved on May 20, 2016
by Headquarters for Creating a Society in Which All Woman Can Shine), theGovernment will promote the improvement of working conditions of nonregular female workers and the diverse way of working, including telework, aswell as initiatives of innovative changes of the way of males’ living andawareness.
Considering that the Act for Partial Revision of the Employment Insurance

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Act (Act No. 17 of 2016) which incorporates the expansion of application of
employment insurance to people at least 65 years old and the increase of servicesof Silver Human Resources Centers will be enforced sequentially from April thisyear, the Government will accelerate environmental improvement to realize thesociety where the elderly can actively work in their life toward active
participation in the society by the elderly.
Regarding utilization of foreign human resources, the Asian IT Engineers
Career Support Council of Japan was established in November last year with theComputer Software Association of Japan as a base foundation to support studies
of foreign IT human resources in Japan and employment after that. Amid
intensifying global competition in securing human resources, the Government
will actively attract excellent foreign human resources, such as IT humanresources, to Japan in order to revaitalize Japanese economy and improve its
competitiveness.
Promotion of active social participation by women
1) Promoting practical diversity management
Based on previous initiatives for “Nadeshiko Brand” and “Diversity
Management Selection 100” and through analysis of good practices, theGovernment will clarify the way of the diversity management (broadly including
the appointment of not only women but also foreign nationals and thehandicapped), which leads to improvement of growth potential and profitabilityof enterprises, while establishing a venue to develop new discussions on
measures for an increase of appeal for both enterprises and investors, including
for example the way of information provision promoting the diversity
management, and reach conclusions during this fiscal year.
Further, in conjunction with the above venue of discussions, in view of not
only human resources management of enterprises but also the effective use ofcapital, the Government will, at the Study Group on Investment for Sustainable
Value Creation, develop discussions on narrowly defined ESG (Environment,
Society, and Governance) as well as comprehensive discussions with an eye onhuman capital and intellectual capital regarding the way of corporate
management and investments to create sustainable corporate value andapproaches to evaluate them during this fiscal year, and reach a certain
conclusion.
2) Strengthening initiatives to eliminate childcare waiting lists
Based on the “Plan to Accelerate the Elimination of Childcare Waiting Lists”
and the “Measures for Urgent Response to Elimination of Childcare Waiting
Lists” compiled in March this year toward realizing the elimination of childcare
waiting list at the end of the next fiscal year, the Government will secure stablefinancial resources in accordance with the framework of the economic andfinancial revitalization plan, while steadily promoting improvement of venues ofchildcare and securing of childcare human resources. Specifically, theGovernment will actively develop the “Enterprise-led Childcare Project”
established under the Act for Partial Revision of the Child and Child Care
Support Act (Act No.22 of 2016) enacted in March this year and reduce157

operational burdens as well as support for acquiring a nursery teacher
qualification using ICT, etc., while further improving treatment of nurseryteachers, etc. and building career paths.
To promote joint construction of childrearing facilities of large-scalecondominiums, etc., the Government will compile model cases of joint
construction of childcare facilities using an exceptional measure to ease floorarea ratios, and disseminate the cases to local governments, etc. On this occasion,
the Government will deepen collaboration, etc. among urban planningdepartment, construction department, and childrearing department within local
governments, and make thoroughly known to local governments so that
initiatives in collaboration among related departments are carried out from thetime when an urban plan is drawn up and an exceptional measure is applied for
permission.
Based on a further increase in working women, the development of reform of
the way of working, and initiatives to take childrearing holidays that constitutecontinuous support for childcare, the Government will strive to secure the venueof childrearing. On this occasion, the Government will examine and analyze
systems and examples for nursery teachers in various countries during this fiscal
year and consider measures that further improve social valuation of nurseryteachers so that the social valuation of nursery teachers with professional
expertise improves for medium to long term and a nursery teacher becomes more
attractive occupation.
3) Review toward a system, etc. for better working environment for
women
Regarding reviews toward the taxation, social security system, spouseallowance, etc., the Government will develop specific discussions to realize
better working environment for women.
Regarding taxation, based on the “Summary of issues regarding the system oftaxation on personal income, including the creation of neutral tax system toselecting the way of working (primary report)” compiled by the Government Tax
Commission on November 7, 2014 and the “Summary of issues regarding theway of taxation based on structural changes in economic society” compiled by
the Government Tax Commission on November 13, 2015, the Government will
promote national debate extensively and carefully.
Regarding social security system, the Government will smoothly expand
application to part-time workers at large enterprises from October this year, andregarding SMEs, take an institutional system that open a path to the expansionof application on the basis of consensus between labor and management. In
addition, based on Article 2 of the Supplementary Provision of the Act on
Reinforcing Pension Function, the Government will steadily promotedeliberations on further expansion of application within three years after the
expansion of application of employees' insurance is enforced.
Regarding the allowance for dependent pertaining to spouses of national
government employees, the Government has requested the National Personnel
Authority to make deliberations, and will deal with this issue promptly based on
the result of deliberations. Also regarding spouse allowance at private enterprises,158the Government will broadly disseminate the “Matters to be considered fordeliberation on the way of spouse allowance” complied by the Ministry of Health,Labour and Welfare and encourage labor and management to consider the wayof spouse allowance.
The Government will enhance support for enterprises, etc. where the elderly
who are willing to work, regardless of age, seek to realize a society in which they
can actively work in their life by taking advantage of their capability andexperience and the continuous employment is extended to the age of 65 and older
and the mandatory retirement age is extended to the age of 65. In addition, theGovernment will develop a mechanism nationwide to secure various
employment and working opportunities using local councils, while supporting
re-employment of elderly people and ensure a dramatic enhancement ofopportunities where the elderly can active participation in the society though theuse of the “Lifetime working support desk” of the Hellowork and the “Careerhuman resources bank for prospective elderly retirees” that is a platform ofmatching for prospective elderly retireesiii) Promoting active social participation by the handicapped, etc.
The Government will continue focusing its efforts on support for social
participation by the handicapped, patients with an intractable disease, andpatients with cancer, including working support for them. Regarding thehandicapped, the Government will strengthen support for their job retention andpromote working support for the handicapped (collaboration between agriculture
and welfare) in the area of agriculture, while pushing social participation andindependence of the handicapped through promotion of cultural and artistic
activities by the handicapped.
iv) Utilization of foreign human resources
To overcome fierce global competition in the fourth industrial revolution, it isvital to more actively accept highly-skilled foreign professionals whose demandis increasing as with highly-skilled IT professionals in the wide range ofindustries with the evolution and deepening of information technology, andthereby improve the productivity of the entire Japanese economy.
To this end, the Government will issue constructive messages to accept highly
skilled foreign professionals, while further improving the living environment ofJapan, wages and employment personnel systems, as well as immigration andresidence control systems so that these are made attractive for highly skilled
foreign professionals who are pursuing employment outside their countries, andcreate a strategic mechanism whereby those professionals can actively work overa long period of time in Japan.
1) Considering immigration and residence control systems that further
attract highly skilled foreign professionals
In a bid to attract foreign human resources, including highly skilled IT
professionals, with advanced technologies and knowledge, who are expected to159

contribute to the growth of the Japanese economy, and work actively for a longtime, it is necessary to create immigration and residence control systems more
attractive than those of other countries. To this end, the Government has decided
to create the “Japanese–version green card system for highly skilled foreign
professionals,” which is the fastest such system in the world and substantiallyreduces the period of stay required before highly skilled foreign professionals
can apply for permanent residence from the current five years, and will takenecessary steps as soon as possible. At the same time, to make Points-based
System for Hiligly Skilled Foreign Professionals more user-friendly, theGovernment will revise requirements and promote further awareness of it.
In the case of significant investors and human resources in growth fileds suchas the IoT & regenerative medicine, the Government will consider approaches
to application for permanent residence by foreign human resources who make amajor contribution to Japan and reach a conclusion as quickly as possible.
2) Strengthening support for employment of international students andoverseas students by Japanese companies
Aiming to increase the share of international students who find jobs within
Japan from the current 30% to 50%, the Government will immediately draw
up measures to promote the development of special programs by universities,
including Japanese language education, medium- to long-term internship andcareer education. Further, as for students who have completed the special
program with the appropriate certification based on the standpoint of theresults of collaboration with companies and internship implementation plan,
the Government will, with appropriate involvement of ministries and agencies
in charge, provide preferential status of residence acquisition measures,
including simplification of documents to be submitted required to takeprocedures for a change of status of residence and speeding-up of screening
process for application, and then support the development of such programsby universities from the next fiscal year.
In addition, by strengthening the dissemination and advertisement incollaboration with a international student-related association and enhancing
the internship and employment enlightenment seminar at Employment
Service Center for Foreigners, the Government will promote the employment
of international students in Japan through collaboration between relevant
ministries and agencies.
Moreover, many human resources produced through the highly skilled
professionals development project implemented in Asian countries by using
public funds of ODA, etc. of the Japanese government have a high affinity forJapan. Thus, they are expected to promote innovation for domestic industries,
while contributing to the development of their countries and helping
strengthen a tie between Japan and their countries. To encourage those humanresources to reflux between Japan and Asian countries, the Government willreflect the needs of Japanese industries in the contents of the highly skilled
professionalsdevelopment project by ODA of the Japanese government atengineering top-level schools, etc. (universities, graduate schools) in Asian
countries to enhance the project. Also, in addition to universities and graduate

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schools that have implemented such project, the Government will takefollowing measures for excellent students, etc. of engineering top-levelschools, etc. (universities, graduate schools) in Asian countries that have yet
to implement such project;- Inviting excellent students, etc. to Japan, with target of 1,000 persons forfive years from the next fiscal year to 2021 and providing short and longterm training (studying at Japanese universities, internship at Japanesecompanies) to them, for the purpose of improvement of innovation
environment in terms of human resources in both Japan and Asiandeveloping countries- Effectively providing services, including job fairs and matching projects,
to excellent students who wish to have a job with Japanese companies
through collaboration between ministries and agencies- Taking measures to simplify documents to be submitted for an application
for preferential measures (including special additions in the “highly
skilled point system”) to obtain the status of residence and for status ofresidence regarding the excellent students, etc. and are certified after theforeign minister examines their eligibility
3) Promoting acceptance of foreign employees by Japanese companies
developing globallyWith reference to the mechanism of the “Project for acceptance of foreign
employees from overseas in the manufacturing industry” started from March thisyear and from the standpoint of an increase of initiatives to promote global
development with the strengths of Japanese companies demonstrated also inother areas than the manufacturing industry that contribute to the growth of theJapanese economy, the Government will conduct survey on needs for making
possible a short-period transfer and the acquisition of skills, etc. within a
corporate group with the involvement of a relevant minister responsible for the
project depending on the necessity of acquisition of specific professional skills
in Japan, examine the results of the survey and reach a conclusion during thisfiscal year.
4) Strengthening residence control infrastructure and facilitating /expediting of procedures for the status of residence
It is necessary to manage the residency situation of foreign nationals more
properly as the base for seeking to further acceptance of foreign human resources.
Thus, the Government will improve a mechanism that comprehends the working
status of foreign nationals by the end of the next year by unifying entry methodsof the “Notice of employment of foreign nationals” and a residence card, while
making further discussions to achieve more appropriate residence control. Also,
the Government will proceed with required preparations to ensure facilitation /expediting of procedures for the status of residence, including the introductionof online procedures, to commence from FY2018.

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5) Improving living environment to promote the acceptance of foreign
nationals
To promote the acceptance of foreign nationals, it is necessary to promote
not only institutional initiatives for residence control systems but also
environmental improvement necessary for foreign nationals to live in Japan.
Particularly, regarding educational environment, the Government will aim for
100% of the rate for participation in a Japanese language learning course byforeign children who need to learn Japanese as soon as possible so that, whilelearning Japanese, they can live a school life even at a general public school
in Japan, and in the region where there are many foreign children who need toparticularly learn Japanese, the Government will make sure that teaching of“JSL Curriculum” is surely implemented. Also, the Government willencourage relevant ministries and agencies to disseminate to medical
institutions, banks, and electricity / gas suppliers the information easily
understandable about sites, etc. where foreign languages can be used, and at
the same time, particularly regarding “medical institutions with a system toaccept foreign patients established,” the Government will improve living
environment, e.g. an increase of the number of such institutions to 40 during
this fiscal year.
(Consideration on approaches to accept foreign human resources)
To ensure sustainability of economic and social infrastructure, theGovernment will advance comprehensive and detailed study on approaches to
accept foreign human resources while focusing on the field where they are truly
required. To this end, the Government will conduct cross-governmental surveys
and considerations regarding essential issues including a mechanism that would
not be misconstrued as an immigration policy and the way to shape the national
consensus.

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IV Taking in Overseas Growing Market(1) Progress in achieving KPIs
《KPI》 “Aim to raise the FTA ratio to 70% (2012: 18.9%) by 2018”⇒ As of the end of FY2015: 39.5%*The share of trade value in total Japanese trade value with countries
with which EPA/FTA has entered into force or has been signed as ofthe end of FY2015 (based on 2015 trade value)*Negotiations on 6 EPAs are underway with a view to their earlyconclusions.
《KPI》 “Double the inward foreign direct investment (FDI) to ¥35
trillion by 2020 (as of the end of 2012: ¥19.2 trillion”⇒ As of the end of 2015: ¥24.4 trillion《 KPI 》 “Double the value of export by small and medium-sizedcompanies by 2020 compared with the 2010 level”⇒ FY2013: ¥13.8 trillion (FY2010: ¥12.6 trillion)《KPI》“Raise infrastructure project orders received to approximately¥30 trillion by 2020 (2010: Approximately ¥10 trillion)”⇒ 2014: Approximately ¥19 trillion*KPI figures include “income from business investments on overseas
infrastructure, etc.”《KPI》“Triple overseas sales of broadcast contents by FY2018 from the
FY2010 level”⇒ FY2014: ¥14.36 billion (FY2010: ¥6.63 billion)(1) Specific new measures to be taken
The Government will promote public and private joint initiatives to take inoverseas growing markets expanding primarily in emerging countries and toincorporate benefits therefrom into regions of Japan. The enforcement of TPP
signed in February this year will bring about great opportunities to take in huge
growing markets of 800 million people in the Asia and Pacific, which account for
approximately 40% of the world GDP. Taking this opportunity, in addition tosteady implementation of measures based on the “Comprehensive TPP-related
Policy Framework” (approved by the TPP Task Force on November 25, 2015),
the Government will accelerate the exports / overseas expansion of Japanesecompanies with technologies, including small and medium-sized companies,
while aiming to further expand the inward foreign direct investment and achievesustainable growth of Japan serving as an international global hub.
On that opportunity, the Government will also promote overseas developmentof manufactured products and infrastructure systems, as well as local products,
agricultural products, contents such as broadcasting contents, and services. In
addition, the Government will reinforce mutual collaboration in various fields
and collaboration with other industries such as tourism, thereby expanding a163

virtuous circle of the regional economy.
Promoting economic partnership negotiations, and conclusion/revisionof investment agreements and tax treaties

The Government will push forward to achieve early entry into force of
the TPP and expand its member countries/regions, and strategically and
expeditiously promote negotiations on other economic partnerships,
including the Japan-EU EPA, Regional Comprehensive Economic
Partnership (RCEP), and Japan-China-Republic of Korea FTA. Playing
central roles in building such wide-area new economic order, Japan aims
to take the lead in establishing comprehensive, well-balanced and highlevel global rules.
In addition, to improve business environment toward overseas developmentof Japanese companies, the Government will aim to sign and/or achieve entry
into force of investment-related agreements (investment agreements andeconomic partnership agreements withinvestment chapters) covering 100
countries / regions by 2020 according to the “Action Plan for improvement ofinvestment climate through promoting the conclusion of investment-relatedagreements” (announced in May 2016). The Government will strategically andactively promote conclusion of new agreements and amendment of existing
agreements to achieve this goal. Regarding partner countries for negotiations,
the Government will make discussions within the government every fiscal year
considering in comprehensive manner results and prospects for increases ofinvestment in partner countries / regions, requests from industries, consistency
with diplomatic policies, and needs and circumstances of partner countries /regions.
Regarding the contents of agreements, the Government will seek to secure ahigh level of quality, keeping in mind “free type” agreements that require an
indiscriminate treatment from the stage of new entry, and develop flexible
negotiations with an emphasis on speediness depending on specific needs ofindustries and circumstances of partner countries. In addition, the Government
will aim to create investment environment in response to new corporate activities
e.g. by considering inclusion of the areas of services and e-commerce. To further
accelerate those efforts, ministries and agencies centering on the Ministry ofForeign Affairs will strengthen their negotiation capacity in their collaboration
by increasing the number of negotiators and by promoting participation ofprivate human resources.
In addition, from the standpoint of vitalization of the Japanese economy
through promotion of sound international investment and economic exchanges
and considering economic relation with partner countries and requests frombusiness community, the Government will facilitate the amendment of existingtax treaties in response to changes in recent economic conditions, while striving
to increase networks for tax treaties by concluding new treaties with investee
countries where investment relations with Japan are expected to develop in the
future. Also, to further accelerate those efforts, ministries and agencies will work
together to strengthen their negotiation capacity.

164ii) Supporting overseas business expansion of small and medium-sizedcompanies taking opportunities afforded by the TPP
The Government will aggressively develop support to use TPP for regional
companies as well as small and medium-sized companies of Japan that have notbeen able to begin overseas business expansion so that they will be able toparticipate in a global value chain to be created by TPP and to tap a huge market.
To this end, the Government will ensure careful information provision and create
a consultation system for contents of TPP and methods to use TPP, as well as
utilizing specialists versed in overseas business under the “Consortium for New
Export Nation” established in February this year and providing comprehensive
support to respective companies, such as coordination of necessary supporting
measures, drawing up of overseas business strategies, securing of local humanresources, acquisition of overseas certification, and exploring of overseas sales
channels. On that occasion, various supporting institutions, including ministries
and agencies, local governments, Japan External Trade Organization (JETRO),
societies of commerce / chambers of commerce, financial institutions which
provide loans and advices to Japanese companies expanding business overseas,
will work together utilizing Japanese overseas diplomatic missions abroad andODA. Through this collaboration, the Government will create and laterally
develop successful cases that have not been realized without such collaboration.
The subject of support is not limited to industrial products but includes a wide
range of areas, such as traditional crafts, agricultural products, and services. The
Government will also promote collaboration with the distribution industry,including convenience store chains, which is expected to be developed overseas,on the back of the easing of restrictions on foreign investment based on TPP.
Through these efforts, the Government will aim at the successful rate of at least
60% for market exploitation / business expansion of companies subject tocomprehensive support.
iii) Enhancing the initiatives to promote inward foreign direct investment
The Government will implement measures based on the “Policy Package”(approved by the Counsil for Promotion of Foreign Direct Investment in Japanon May 20, 2016) drawn up with the aim of becoming an global hub for trade /investment taking opportunities afforded by the TPP, and further promote theinward foreign direct investment.
In order to support regional local governments, which play a major role inpromotion of foreign investments, in creating a strategic foreign investment
promotion policy that takes into account circumstances and characteristics of therespective regions and accumulating successful cases, the Government will
enhance support measures for local governments, such as the human resource
development and the provision of successful case examples inside and outside
Japan, as well as support for projects of local governments including the use of
subsidies for promotion of regional revitalization. In addition, the Government
will promote business alliances with foreign companies including throughcapital contribution / business tie-ups so that regional small and medium-sizedcompanies which have no overseas contact can strengthen their growth potential,
such as technological capabilities and expansion of sales channels, using165

management resources of foreign companies. Moreover, the Government will
strive to effectively utilize sales pitches by the prime minister and Cabinet
ministers and strengthen public relations through Japanese overseas diplomatic
missions, etc., while actively attracting the high value-added business sectors,
such as research and development division., by strengthening sales promotion ofand support for an individual cases including provision of investment incentives,
through strengthening of JETRO’s institutional capacity.
Further, to ensure drastic improvement of business and living environmentthat poses an obstacles to the attraction of foreign companies, the Government
will steadily implement the "Five Promises for Attracting Foreign Businesses toJapan" (approved by the Counsil for Promotion of Foreign Direct Investment on
March 17, 2015). In addision, in accordance with the above “Policy Package,”the Government will aim to reach a conclusion within about one year for drastic
simplifying regulations / administrative procedures related to investments inJapan by foreign companies, and then decide on and undertake specific measures
within this year as advance initiative for those for which a conclusion is obtained
early. Also, the Government will provide high-quality English education to all
children by allocating to all elementary schools at least 20,000 external humanresources of assistant language teachers (ALT), etc. as well as fostering teachersand enhancing practical training, while working on an increase of translation ofJapanese laws and regulations into foreign languages, strengthening of attractionof highly skilled human resources, promotion of employment of international
students in Japan, improvement of educational environment for foreign children,and promotion of multilingual services in the daily life.
iv) Expansion of infrastructure exports
Amid fiercer competition to acquire orders in terms of world infrastructure
demand that is expanding primarily in emerging countries, in an effort to achieve
the target for orders in response to a wide range of needs worldwide, theGovernment will effectively implement and utilize the measures incorporated in
the “Infrastructure Export Strategy” (revised in FY2016) (approved on May 23,
2016 by the Ministerial Meeting on Strategy relating Infrastructure Export andEconomic Cooperation) and “Partnership for Quality Infrastructure” (announced
in May 2015) as well as its specific measures (announced in November last year).
In addition, in accordance with the “Expanded Partnership for Quality
Infrastructure High-quality Infrastructure Export Expansion Initiative(announced in May this year), the Government will increase supply of financial
resources towards infrastructure projects including natural resources across theworld, aiming to achieve approximately 200 billion dollars for the next five years
and further improving relevant measures and strengthen institutional capacityand financial grounds of JICA, JBIC, NEXI, JOGMEC, and other relatedorganizations which contribute to those measures. Keeping in mind that
infrastructure exports will contribute to economic growth of both emerging
countries and Japan, to further increase the appeal of Japan’s infrastructure
projects and make differentiation with competing countries, the Government will
promote whole-government approaches by launching a coordination team, etc.
for each project through the Ministerial Meeting on Strategy relating

166

Infrastructure Export and Economic Cooperation and bolster the initiatives ofJapanese companies. On that occasion, in addition to the strengthening of
support by capital investments / loans and trade insurance using all publicfinancial institutions and public-private funds, the Government will combine
various policy tools, including the fostering of local human resources,enhancement of strategic public relations activities, feasibility study (F/S) for
projects, and demonstration project, as well as acquisition of international
standards, and support for improving operation of tests / evaluation sites foracquisition of certification, while securing quick decision-making and leading
joint initiative by the government and the private sector to receive orders.
In addition, the Government will examine various cases in the past regarding
infrastructure system exports, compile lessons / issues, and utilize them for
future receipt of orders through the sharing among relevant organizations andothers. Further, the Government will utilize a framework for inter-governmental
dialogues, opportunity of summit / ministerial level talks, and network between
Japanese ambassadors to and the governments of partner countries, thereby
working together with such government activities and various support tools
including those for development of human resources and institutional building,as well as private companies’ activities to receive infrastructure project orders.
Through these measures, the Government will promote specific initiatives ofprivate companies to receive orders with strategic involvement from the phaseof drawing up of industrial policy and development plan of the government ofpartner country.
1) Implementation of strategic human resource development
In the broad-ranging growth markets of emerging countries, the Government
will promote development of industrial human resources who contribute tosustainable growth, such as the fostering of engineers in the field of
infrastructure, including steady implementation of the “Industrial Human
Resources Development Cooperation Initiative” (announced in November 2015).
On this opportunity, it is necessary not only to foster industrial human resources
who are ready to work and administrative officials who assume the drawing up
of industrial policies but also to provide cooperation for fostering / research toJapanese higher educational institutions and research institutions includingcolleges of technology. In addition, the Government will implement the strategic
human resource development for government-related persons, etc. who are key
to making decisions on the infrastructure development plan, raising theirawareness of importance of standards for environment, safety, energy efficiency,
etc., for which Japan enjoys a comparative advantage, with the aim ofincorporating such standards in the form of specific regulations and evaluation
standards of partner countries. Moreover, the Government will promote
improvement of business environment, including support for improvement oflegal system, etc. in countries where Japanese companies have businesses.

1672) Conducting strategic public relations activities and promoting theimportance of “Quality Infrastructure Investment” in the process ofdeveloping relevant international standards
The Government will promote explanation and disseminate the philosophy of“Quality Infrastructure Investment” of Japan in crossing the boundaries of
relevant ministries and agencies / organizations by using effective means,including top sales of prime minister / Cabinet ministers, working on embassies
in Japan, and use of overseas diplomatic missions of Japan depending on thesubject. It will also implement strategic public relations activities this year by
preparing materials, including PR images, etc. for public relations that introduce
the advantage of Japan’s infrastructure technologies and launch a website todisseminate unified information. In addition, the Government will aim toestablish a position as international standard of the “Quality Infrastructure
Investment” by externally showing such concept at international conferences,
etc. and through implementation of projects by international organizations, suchas the Economic Research Institute for ASEAN and East Asia (ERIA). The
Government will encourage multilateral development banks to carry out aprocurement system reform considering a high quality of infrastructure.
Regarding sectoral initiatives, the Government will ensure that APEC draws up
guidelines for assuring a high quality of power stations by the end of this fiscal
year, while also promoting discussions on actions in other sectors.
3) Further expediting the process of yen loans and overseas investment &loans, and strengthening of collaboration with multilateraldevelopment banks
In response to more and more increasing push for early completion of
infrastructure developments from emerging countries, the Government will
promote use of new systems improved to expedite the process of yen loans andoverseas investment & loans e.g. by disseminating those systems to partnercountries and further expedite the process of such systems to make yen loans
more attractive.
In addition, the Government will utilize new support packages agreed by
Japan International Cooperation Agency (JICA) with the Asian Development
Bank (ADB) and an expansion of the framework for joint financing agreed by
JICA with Inter-American Development Bank (IDB), while working on
promotion of employment of Japanese human resources and creating specificcase examples in which such human resources are involved actively from the
upstream stage of syndication of loans. Further, the Government will proceedwith creation of same cooperative relations with other multilateral developmentbanks.
Promotion of Cool JapanTo ensure unified overseas development through collaboration of attractive
contents and peripheral industries according to the “Cool Japan Public-Private
Partnership Platform” launched in December last year, the Government will
promote syndication of specific collaboration projects with high synergy effects
and ripple effects. Specifically, on the occasion of contents-related events of168

private-sector, the Government will hold business seminars and introduce caseexample of collaboration, thereby arousing diverse relevant business operators
not only in the area of contents but also food / tourism / manufacturing to haveinterests in their collaboration, while conducting surveys on needs of each area
regarding collaboration, thereby specifying areas / business operators with a highpossibility of the commercialization of collaboration projects. After that, theGovernment will hold a matching forum where those relevant business operatorsand organizations participate, and then find prospective collaboration projects.
Further, to support commercialization of those prospective projects, theGovernment will strengthen matching support measures, including provision ofadvices for capital contribution to them by Cool Japan Fund.
In addition, from the viewpoint of effectively disseminating extensive
attractiveness of Japan ranging from pop culture including animation to culture
and art, and creating new Cool Japan-related industries including a cultureindustry, the Govenement will establish a study group under the abovementioned platform to bolster private-sector initiatives toward the creation of
Cool Japan hub on the site of the Haneda Airport, etc., and, work on
networking such hubs. On the other hand, looking at overseas, the Government
will drastically reinforce functions of the Cool Japan hubs, such as an overseas
diplomatic missions.
Further, the Government will promote development of human resources who
assume the Cool Japan and provide actively and more flexibly support from the
Cool Japan Fund. Moreover, to strengthen the international transmission
capability of contents, the Government will take various measures to pursue
promotion of contents industry. In addition, the Government will strengthenfunctions to find Cool Japan projects emerging from local districts and utilize
external human resources and overseas knowledgeable people throughcollaboration with support organizations such as JETRO, and further promote
vitalization of regional economy, thereby providing consistent support in theprocess from refinement of attractive regional resources to development ofoverseas sales channels.
Regarding Japanese alcoholic beverages, under the “Inter-Ministry/Agency
Coordination Committee for Promoting Export of Japanese Alcoholic
Beverages”, the Government, together with Japanese food, will promote
disseminating information using overseas diplomatic missions and various
personnel networks inside and outside Japan and contents, enhancing promotionof sake breweries tourism, etc. for inbound foreign tourists and others., using thetax-free shop system, and adding value by using the geographical indication
system, while supporting sales channel expansion by relevant ministries andagencies, and JETRO, as well as organizing issues on improvement of businessenvironment, etc. in export destination countries. Through these means, theentire Government will address those challenges.

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V Momentum for the reform ～ Promotion of the “Reform 2020” ～It is important to accelerate reform and innovation, using as a momentum of2020 when the 2020 Tokyo Olympic/Paralympic Games are held; Japan attracts
much attention from all over the world; and many foreigners visit Japan.
Accordingly, while using as the leverage the 2020 Tokyo Olympic/Paralympic
Games, the Government will make all-out efforts to promote core projects－whichshould be accomplished by 2020 and will become legacies succeeded to future
generations － as accelerators of reform and innovation. Specifically, theGovernment will implement the following six projects in the three priority areas,as the ones which can generate high policy effects by the implementation alongwith the rising attention from the world, put Japan’s strengths in social
implementation and show cases; appeal to overseas; and lead to economic growth
afterwards.
The Government will promote projects with the following matters as common
issues to be implemented by all projects. Particularly, in principle, keep in mind
that entities responsible for the project and the place of implementation should beclarified during this fiscal year, the status of progress should be managed strictly,
necessary regulatory reforms should be defined early, and these projects willcontribute to solutions of social problems and lead to a legacy that can be succeededin and after 2020.
To this end, from the medium- to long-term perspectives for each project, theGovernment will make clear social problems in the world to be contributed tosolution and matters to be left as legacy with an eye to 2020 and after. At the sametime, also from the standpoint focused on a success of the showcase, theGovernment will discuss and clarify a milestone for progress management taking
into consideration both of a buildup from now on and a back calculation from 2020,
while also utilizing the national strategic zone system to clarify matters forregulatory reforms to be accelerated and examining points to be emphasized in the
showcase. Through these discussions from both views in which time axes aredifferent, the Government will carry out refinement, etc. of respective projects. In
addition, the Government will develop uninterrupted discussions when necessary
to raise the momentum of reforms, including those discussions on additions andreviews of respective projects.

170

(Technology-utilizing solutions to social problems and export of systemsolution technologies)(1) Use of next-generation urban transportation system and automatic
driving technology
Stress-free next-generation urban transportation system
1) Social problems to be solved- Aim to realize the society where all people, including movement constraint
persons such as the elderly and the handicapped, can move comfortably.
2) Outline of project- Connect the downtown and the new Tokyo waterfront subcenter by bus
routes using automatic driving technologies (bus stop right arrival control,etc. whereby wheelchairs, etc. can get in and out of a bus without assistance).
3) Initiatives up to now- Keisei Bus Co., Ltd. was decided as operator of project in September last year.
Regarding a specific route for implementation place, a route from Toranomon
to International Exhibition Halls Bus Station will be realized when the 2020
Tokyo Olympic/Paralympic Games is over, which is shown in the business plan
drawn up in April this year.
- Research and development / demonstration of smooth acceleration/deceleration,
automated distance-to-curb adjustments (right arrival control) andtransportation system with priority on public vehicles have been carried out.
4) Major issues and future initiatives- Including local districts, specific considerations are necessary for how
initiatives are broadly developed and disseminated.
- It is necessary to comprehend whether or not the technology level of this projectis the world's most advanced level and can be showcased.
Securing means of transportation of the elderly, etc. and realization ofplatooning driving
1) Social problems to be solved- Seek to realize a society where all persons, including movement constraint
people, such as the elderly and the handicapped, can move safely andcomfortably.
- Respond to insufficient workforce (driver) in the depopulating society.
- Based on the way of sharing economy society, seek to create a business modelthat can secure both security and safety.
2) Outline of project- Provide means of transportation available to movement constraint people byutilizing automatic driving technologies in the “last one mile” connecting thenearest station and the destination. In addition, make possible a service fortransportation by unmanned automatic driving at the 2020 Tokyo
Olympic/Paralympic Games.

171

- Establish platooning technologies, etc. for electronical interlinking of asubsequent truck with a foregoing truck on the expressway, etc. and realize
platooning driving in a truck transportation service between cities.
3) Initiatives up to now- At the “automatic driving business study meeting” composed of thegovernment, industry and academia, which has been held form the last year,
needs were clarified and necessary issues for which discussions are necessary
to determine a business model were extracted.
4) Major issues and future initiatives- Make clear, during this fiscal year, the entities responsible for the project andthe place of implementation.
- Based on the “Public-Private Sector ITS Initiative/Roadmap 2016” (approvedby the IT Comprehensive Strategic Headquarters on May 20, 2016), establish
necessary systems and infrastructure to realize a service for transportation byunmanned automatic driving at the 2020 Tokyo Olympic/Paralympic Games.
In addition, clarify a business model and develop discussions on technology
development, demonstration, system, and business environment to realize theplatooning driving of trucks on the expressway, etc. in 2020. Further, examine
methods, etc. aiming for realization of complete automatic driving in 2020 andafter.
(2) Solutions to energy / environmental problems through use of distributed
energy resourcesi) Use of CO2–free hydrogen derived from renewable energy
1) Social problems to be solved- Seek to solve energy / environmental problems, which are world common
issues.
2) Outline of project- Produce CO2–free hydrogen by using renewable energy which exist
abundantly in local districts, transport such hydrogen to urban areas, andcreate supply chains which use it, thereby eliminating an unbalance between
demand and supply regarding renewable energy of local districts and urban
areas.
3) Initiatives up to now- To pursue discussions to specifically create a project that is able to secure
profitability of the project, the establishment of a working group composed ofworking-level personnel under the Council for a Strategy for Hydrogen and
Fuel Cells was decided on.
- A technology demonstration project for large-scale hydrogen manufacturing
equipment and a development / technology demonstration project forhydrogen transportation technologies are being implemented.
4) Major issues and future initiatives- Clarify entities responsible for project and the place of implementation during
this year. At the same time, examine a business model conscious of economic
efficiency- Proceed with technology demonstration related to a hydrogen transportation
method, while reviewing regulations for hydrogen station (self-filling, practical172

use of liquid hydrogen pump) in accordance with the “Implementation Plan forRegulatory Reform” (Cabinet Decision of June 30, 2015).
ii) Establishment of Innovative energy management system
1) Social problems to be solved- Aim to solve energy and environmental problems, which are world common
issues.
- Aim to create a business model conscious of sharing economy.
2) Outline of project- By controlling and utilizing in an integrated manner renewable energy
generation facilities and batteries, which are dispersed in regions, and
DemandResponse, etc., which is an advanced demand management method,establish an effective energy management method to make them work as if they
were one power plant (“VPP: Virtual Power Plant”).
3) Initiatives up to now- Technologies are being developed to use weather observation and prediction
data for predicting the output of renewable energy.
- The Commission on Energy Resource Aggregation Business was launched in
January this year and discussions were commenced about improvement, etc.
of communication standards for the remote control of energy equipment
4) Major issues and future initiatives- At the “VPP Project Committee (tentative name)” where VPP project-related
knowledgeable people adopt a project and carry out progress management,
determine persons who implement demonstration project during this fiscal year
and clarify entities responsible for implementation and the place of
implementation.
- Promote initiatives to establish a group control technology for batteries, while
continuously promoting discussions to improve communication standards andensure cyber security. In addition, revise the “Guidelines for Trading Negawatts”
to create a negawatt trading market during the next year.

173

(3) Realization of a universal future society through leading-edge robotic
technologyi) A universal future society experience project through leading-edge
robotic technology
1) Social problems to be solved- Respond to insufficient workforce in the depopulating society.
- Realize a stress-free living for diverse people, including elderly, handicapped,
and foreign nationals, where robots work actively in every living space.
2) Outline of project- With a core of Daiba and the Aomi region where the National Museum of
Emerging Science and Innovation is located and that are close to facilities for
the Tokyo Olympic/Paralympic Games, build experience fields for personal
mobility, ultra-realistic image technology, digital signage, multilingualtranslation, and leading-edge robotic technologies for guide robot, etc.
3) Initiatives up to now- The “Council for Promotion of Universal Future Society” which is composedof knowledgeable people was established in September last year andrecruitment of members began in October last year (number of members: 61
enterprises / organizations as of April this year).
- The “Chiba City Makuhari New Urban Center Working Group” was set up
within the Council for Promotion of Universal Future Society in April this year
and the demonstration field was extended to the Makuhari New Urban Centerregion.
4) Major issues and future initiatives- Promote the drawing up of an action plan to create a showcase in 2020. At thesame time, to further promote universal future society-related projects, etc.,
launch a working group for respective issues and clarify issues to ensure
practical use, including development and demonstration of technology.
ii) Urban areas and airports
1) Social problems to be solved- Respond to insufficient workforce in the depopulating society.
- Realize a stress-free living for diverse people, including elderly, handicapped,
and foreign nationals.
2) Outline of project- Compile and examine rules for the use of robots in the environment of urban
areas and airports where people are walking busily on a daily basis, anddisseminate to the world the fact that various robots are providing services
everywhere in the public space under the rules.
3) Initiatives up to now- The Robot Innovation Working Group was set up in September last year withinthe “Robot Revolution Initiative Council” composed of private business
operators, etc. for the use of robots.
- At the sub-working group set up within such innovation working group, rules
concerning the securing of safety for the use of robots are being considered,
while collaboration with relevant business operators etc. is now being
promoted regarding creation, etc. of use cases through implementation of a174

demonstration project to showcase.
4) Major issues and future initiatives- From this fiscal year, carry out a demonstration project that assumes use scenes
and then clarify the place of implementation of and responsible entities to put
the project into practice.
- In parallel, add and review rules for securing the safety as necessary at the
Robot Revolution Initiative Council sub-working group on the basis of theresults of the above demonstration project.
(4) International implementation of high-quality Japanese medical services
and technologies (inbound use of medical care)
1) Social problems to be solved- Disseminate the Japanese medical care to the world as the first nation with asuper-aging society.
2) Outline of project- See the year 2020 as a good opportunity to disseminate Japanese medical
services to overseas, and focus on the areas where there are high needs fromoverseas and Japan’s medical care has an international advantage, while listing
the medical institutions which actively accept patients for medical services(examinations, treatment and screening[including after treatment follow-ups],
and thereby enhance opportunities for visiting foreign patients to experience
Japan’s medical care in person).
3) Initiatives up to now- In June last year, the Inbound Working Group set up under the Task Force for
Global Reach of Japanese-style Medical Technology and Services compiled
and made public “Approach to the certification of companies supporting travel
for medical treatment and information-dissemination to foreign countries by
medical institutions accepting inbound medical examinees.”- In September last year, the general incorporated association Medical
Excellence JAPAN (MEJ), a certification organization, certified two
companies of JTB Corp. (JTB) and Emergency Assistance Japan Co. (EAJ) as
companies supporting medical tourism that consistently support medical
examination at domestic medical institutions for the period from visiting Japanto leaving Japan.- In September last year, a Japanese booth was installed at theexhibition for medical tourism held in Moscow. Companies supporting
medical tourism and Japanese medical institutions carried out PR for Japanese
medical treatment by holding mini seminars and providing individual
consultations. In addition, in December last year, certified companies
supporting medical tourism, etc. carries out PR for Japanese medical treatment
at the exhibition for medical treatment travel held in Beijing.
4) Major issues and future initiatives- MEJ is considering the framework and standards of Japan International
Hospitals (tentative name) at an advisory committee mainly composed of
medical care-related people. Thus, look for medical institutions that meetstandards, and announces medical institutions that will become “Japan
International Hospitals (tentative name)” during this fiscal year.
- Implement effectiveness verification and issue extraction of guidelines,

175including the certification of companies supporting medical tourism, andconsider a new response when necessary.
- Regarding overseas promotion of Japanese medical treatment, put future
strategies into practice early also based on the previous results ofimplementation.
(Developing an environment to increase the number of foreign tourists toJapan)(5) Showcasing Japan as the leading country of tourismi) Sightseeing Areas
1) Social problems to be solved- Aim to be the leading country of tourism with a view to achieving 40 million
foreign visitors in 2020.
2) Outline of project- Select local cities that promote tourism strategically, establish a Japaneseversion of DMO at those cities, enhance tourism resources, develop an
environment for cashless / multilingual translation, etc., use overseas
diplomatic offices, and disseminate information depending on attributes ofindividuals, thereby creating tourism regions that can embody the leading
country of tourism.
3) Initiatives up to now- Proposals were collected broadly from across the nation in November last year.
Three cities of Kushiro City, Kanazawa City, and Nagasaki City were selected
as a showcase of tourism-oriented country in January this year.
- A support team composed of members of relevant ministries and agencies was
set up and opinions were exchanged.
4) Major issues and future initiatives- Japanese version of DMOs will be launched in this fiscal year at three cities
of Kushiro City, Kanazawa City, and Nagasaki City which were selected anddecided on as the place of implementation.
- Centering on such Japanese version of DMOs, draw up an implementation plan
during this fiscal year whereby attractiveness of tourism resources is refined
as a showcase of country of tourism.
- In addition, based on such implementation plan, provide preferential support
for refinement of tourism resources, etc.
- Moreover, clarify regulatory reforms necessary for the refinement of tourism
resources and take immediate countermeasures.
ii) Tokyo
1) Social problems to be solved- Aim to realize a country of tourism with a view to achieving 40 million
foreign visitors in 2020.
2) Outline of project- Promote barrier-free accessibility, and provision of easy-to-understandguidance information in the continuous areas of Tokyo linking major terminal
stations and Olympic/Paralympic Games facilities.
- In addition, promote understandings of the public about barrier-free attitude.
3) Initiatives up to now

176- Regarding the way of barrier-free for public transportations, a study groupcomposed of knowledgeable people, relevant business operators andorganizations for the disabled people was set up, and access routes fromairport to competition venues, etc. were surveyed and examined.
- A “Tokyo 2020 Accessibility Guideline” is being drawn up to promote
universal designs in competition venues and their access routes of the 2020
Tokyo Olympic/Paralympic Games. Regarding items affecting designs ofstructures, prior studies were implemented and the approval was obtained
from the International Paralympic Committee in January this year.
- A survey for the guidance display and support of the pedestrian movement
were implemented at the Tokyo Station.
- Continuous efforts were made for barrier-free attitude .
4) Major issues and future initiatives- In promoting universal designs, mandatory for access routes from competition
venues of the Tokyo Olympic/Paralympic Games as well as Narita Airportand Haneda Airport, it is necessary to link promotion of barrier-free for public
transportations with provision of guidance display and barrier-free attitudedepending on the attribute of individuals and thereby increase an appeal as
showcase. To this end, make clear the contents of project as showcase by theend of this fiscal year.
- In addition, while the relevant ministries and agencies will closely work
together led by the Ministry of Land, Infrastructure, Transport and Tourism,
refine showcases at the Universal Design 2020 Liaison Committee among
Ministries and Agencies and expand the creation of universal design societies
nationwide.
Narita Airport and Haneda Airport
1) Social problems to be solved- Aim to be a country of tourism with a view to achieving 40 million foreign
visitors in 2020.
2) Outline of business- Enhance facilities’ convenience and amenities, through improvement to accessto Narita and Haneda Airport by railways and busses, and through theestablishment of information provision hubs utilizing the airports as gateways.
3) Initiatives up to now- In April this year, “Ideal ways of future urban railways in the Tokyo area”
including access to airports by railways” (reported by the Council of Transport
Policy) was compiled.
- The project of airport access bus in the national strategic special zone wasestablished as a menu according to the Act on Special Zones. In addition,
convenience for airport access buses was improved at midnight and earlymorning.
- To establish the information provision hubs utilizing the airports, standard
specifications were drawn up last year for maintenance of digital signage andsophistication of its functions. The development of multilingual technology is
now underway.
4) Major issues and future initiatives

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- Regarding improvement of access to airport by railways and busses,
transmission of various contents depending on attributes of individuals,
provision of barrier-free information, and installment of cutting-edge toilets,
concrete initiatives, and responsible entities and schedule of implementation
will clarified in this fiscal year, , to be suitable for showcases as gateway ofJapan open to the world.
- To this end, while relevant ministries and agencies work together led by the
Ministry of Land, Infrastructure, Transport and Tourism, establish a council,
etc. and refine showcases.
(Expansion of foreign direct investment into Japan and improvement /enhancement of business environment)(6) Measures to attract toward expanding foreign direct investments
1) Social problems to be solved- Leverage the internationally growing attention, expand foreign direct
investments, and thereby improve the business environment.
2) Outline of project- With a target year of 2020, hold various business conferences, such as (i) Japan
Business Conference (JBC), (ii) Regional Business Conference (RBC), (iii)World Forum on Sport and Culture (iv) Global Venture Summit, and thereby
strengthen external dissemination to expand foreign direct investments.
3) Initiatives up to now- To hold RBC from 2019 to 2020, JETRO have been supporting the formulationof initiatives toward attraction and provision of information by local
governments.
- To hold the World Forum on Sport and Culture in October this year, the “Sports
and Culture World Forum Public-Private Collaboration Implementation
Committee” was held in July last year, and a system to implement this forum
was created throughout Japan in cooperation with relevant ministries andagencies, business communities, and local governments.
- To improve the environment toward the Global Venture Summit in 2020, a
human resources development project was promoted, where entrepreneurs andpersons responsible for new projects were sent to Silicon Valley andparticipated in international matching events, such as SLUSH and SXSW.
4) Major issues and future initiatives- Regarding the JBC, RBC and Global Venture Summit, clarify specific timeschedules to hold those conferences and summit.
- Regarding the “World Forum on Sport and Culture,” actually develop specificdiscussions on PR, etc. for the contents of growth strategy. In addition,
examine the results of discussions on the government-private sector workshop,
implemented through collaboration with the World Economic Forum, andconnect with measures to expand foreign direct investments, e.g. reflect theresults in the growth strategy of the government, including the “Reform 2020
Project.”

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