Provisional

FY2017 Report on Priority Measures for Strengthening Industrial
Competitiveness
I. About this Report
In December 2012, the Cabinet decided to establish the "Headquarters for Japan's Economic
Revitalization," with Prime Minister serving as its head and all Ministers of State as its
members. Under the Headquarters, the Cabinet also decided in January 2013 to hold meetingsof the "Industrial Competitiveness Council." Under the "Headquarters for Japan's Economic
Revitalization," moreover, it was decided in September 2016 to hold meetings of the "Council
on Investments for the Future." The Council has taken the following actions:
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In June 2013, the "Japan Revitalization Strategy" was approved by the Cabinet.
In January 2014, the "Action Plan for Strengthening Industrial Competitiveness" wasapproved by the Cabinet.
In June 2014, the "Japan Revitalization Strategy (Revised in 2014)" was approved by the
Cabinet.
In February 2015, "FY2014 Report on Priority Measures for Strengthening Industrial
Competitiveness" was approved by the Cabinet and submitted to the Diet.
In February 2015, the "Action Plan for Strengthening Industrial Competitiveness (2015)"
was approved by the Cabinet.
In June 2015, the "Japan Revitalization Strategy (Revised in 2015)" was approved by the
Cabinet.
In February 2016, the "Action Plan for Strengthening Industrial Competitiveness (2016)"(hereinafter referred to as the "Action Plan 2016") was approved by the Cabinet.
In February 2016, "FY2015 Report on Priority Measures for Strengthening Industrial
Competitiveness" was approved by the Cabinet and submitted to the Diet.
In June 2016, the "Japan Revitalization Strategy 2016" was approved by the Cabinet.
In February 2017, "Action Plan for Strengthening Industrial Competitiveness (2017)"(hereinafter referred to as the "Action Plan 2017") was approved by the Cabinet.
In February 2017, "FY2016 Report on Priority Measures for Strengthening Industrial
Competitiveness" was approved by the Cabinet and submitted to the Diet.
In June 2017, the "Future Investment Strategy 2017" was decided by the Cabinet.
In December 2017, the “New Economic Policy Package” was decided by the Cabinet.

This Report summarizes the measures and the progress and implementation statusconcerning the measures for strengthening industrial competitiveness that are stipulated in the
Action Plan 2017 (hereinafter referred to as the "Priority Measures").
This Report has been formulated in accordance with Article 6, Paragraph 10 of the Act on
Strengthening Industrial Competitiveness (Act No. 98 of 2013), which requires formulation ofa report at the end of each fiscal year for submission to the Diet, concerning the progress,
implementation status, and evaluation results of these priority measures.
1II. Progress, Implementation Status and Effectiveness of Priority Measures
1. Creation of promising growing markets and pursuance of local Abenomics(1) Realization of the fourth industrial revolution
1) Progress in achieving KPI targets1<KPI> Register more than 30,000 information security specialists by 2020. [7] 2017: 6,944 specialists
2) Progress in implementing measures
MeasureCreation of an
environment foradvancedautomatic
travelling
includingunmannedtravelingContents and completion
Progress and implementation
deadlinestatusIn accordance with the The related notice according
Public and Private ITS
to the Road Trucking
Initiative Roadmap 2016
Vehicle Act (Act 185,
(decided on May 20, 2016
instituted in 1951) wasby the Strategic
amended in February 2017.
Headquarters for theProvided that alternative
Advanced Information andsafety measures are put inTelecommunications
place, moreover, self-driving
Network Society –vehicles that are nothereinafter the IT Strategic
equipped with steering
Headquarters), institutional
wheels, gas pedals, etc. areframeworks andpermitted to run on public
infrastructure will beroads. In addition, thedemonstrated by 2017 forApplication Standards forunmanned transportation
the Use of Roads forservices and expressway
Demonstration ofself-driving, which should
Remote-controlled
be in place before the 2020
Self-driving Systems were
set in June 2017.
Tokyo Olympics andParalympics.
 High-precision 3D map data
Industry-wide standards
for all expressways andwill be set for self-driving
highways will be developed
maps to propose
by the end of FY2018 (datainternational standards thison 14,000 km of major
fiscal year. At the same
expressways and highways
is already available).
time, the public and private
sectors will jointly develop
map data to put them in

Responsible minister 2
Prime Minister(Minister in charge ofInformation
Technology Policy,
Minister of State for
Science andTechnology, Ministerof State for Regional
Revitalization,
National Public
Safety Commission
Chairman)
Minister of Internal
Affairs andCommunications
Minister of Economy,
Trade and Industry
Minister of Land,
Infrastructure andTransport

The number in [ ] at the end of each KPI target represents the corresponding serial number in the attached "Progress in KPI Targets"for reference.
2
Article 6, Paragraph 3 of the Act on Strengthening Industrial Competitiveness stipulates that the "responsible minister" in the
Action Plan for Strengthening Industrial Competitiveness means the competent minister stipulated in the Cabinet Act (Act No. 5
of 1947). For this reason, Prime Minister is listed here for the responsible minister as the competent minister for affairs pertaining
to the Cabinet Secretariat and the Cabinet Office. As a reference for evaluating the implementation status and effectiveness ofpriority measures in accordance with the Act on Strengthening Industrial Competitiveness, ho wever, the Minister of State, who
assisted Prime Minister in the said measure at the point when this Report was formulated is also listed in parentheses for re ference.
1

2

place by as early as 2018.
Creation of anenvironment for
promotion ofdrones forindustrial use

Drone delivery will be
realized by as early as 2018.
Accordingly, technology toensure the safe operation ofdrones will be developed asthey are operated without
assistants and are not visuallycontrolled while performance
evaluation standards will be set
by the end of FY2017, with asystem established throughrevision of examination
procedures according to the
Civil Aeronautics Act (Act 231,
instituted in 1952). In addition,
safety technology will be
developed for flight above third
persons in urban areas, etc. andthe progress made will be taken
into account in designing
certification for drones andoperators.

As for technology to ensure
the safe operation of drones,
R&D projects started at the
beginning of FY2017 for
operation control and collision
prevention. Performance
evaluation standards, meanwhile,
will be set by March 2018 forflight accuracy, wind resistance,etc.

Prime Minister(Minister of State,
Chief Cabinet
Secretary, Minister incharge of Information
Technology Policy,
Minister in charge of
economic
revitalization,
Minister in charge ofCyber Security
The Ministry of Land,
Strategic
Infrastructure, Transport andHeadquarters,
Tourism and the Ministry of
Minister of State for
Economy, Trade and Industry
Regional
jointly established the
Revitalization,
Committee for Unmanned
Aircraft operated non-visually or National Public
Safety Commission
Flying Above Third Parties in
Chairman)
September 2017 and are in theprocess of determining
Minister of Internalrequirements for aircraft
Affairs andCommunications(involving non-visual flightwithout assistants), operators,
Minister of Justiceetc. by the end of FY2017.
Minister of Foreign
Discussions by the committee
Affairs
will be taken into account inrevising licensing and permission Minister ofgranting procedures in early
Education, Culture,
FY2018 according to the Civil
Sports, Science andAeronautics Act. At the same
Technology
time, certification systems will
Minister of Health,be designed for aircraft andoperators to enable flight above Labour and Welfare
third persons in urban areas.
Minister ofAgriculture, Forestry
and Fisheries
Minister of Economy,
Trade and Industry
Minister of Land,
Infrastructure andTransport

Promotion of
manufacturing
and IoT

More than 50 examples ofsmart factories will be
developed by FY2020 wheredata collected by sensors, etc. isshared across factories,

Sixteen demonstration
programs were implemented in
FY2016 and 2017 to create good
examples were smart factories
make use of data collected by
3

Minister of Defense
Minister of Economy,
Trade and Industry

Promotion of asharing

headquarters and companies. In
order to promote this program,
meanwhile, the Super Certified
Business System will belaunched in FY2017 in the fieldof industrial safety. At the sametime, cooperation will besought with Germany, etc. topropose international standards
and find/create good examples,
focusing on manufacturingbusiness innovation and a shift
to smart manufacturing bycapitalizing on IoT, big data,etc. According to cooperationagreements made at theJapan-Germany summit,
moreover, Japanese companies
will participate in CeBIT 2017
(Hannover, Germany) to
showcase innovativetechnology while companies
will be encouraged to cooperatewith one another, with Japanesecompanies focusing on creating
and promoting global IoT
business.

sensors, etc. for sharing acrossorganizations. In addition, about
210 examples were collected
through the Robot Revolution
Initiative (RRI) and the Ministryof Economy, Trade and Industry.

According to the Sharing
Economy Promotion Program,

Efforts are underway topromote a sharing economy by

In the field of industrial safety,
institutional changes were madein April 2017 for the High
Pressure Gas Safety Act (Act204, instituted in 1951) while theSuper Certified Business System
was put in place for businesses
implementing advanced risk
assessments or independent
safety measures using
technology such as IoT and big
data, where incentives areoffered, such as flexible
procedures to retrofit facilities(up to 8-year continuous
operation, discretion in setting
safety inspection standards, etc.);
the first certification was granted
in December 2017.
A concept dubbed “connectedindustries,” which represents
Japan’s industrial philosophy,
was communicated at CeBIT
2017, which was held in
Hannover in March 2017. At thesame time, the Hannover
Declaration was agreed andsigned at the ministerial level topromote bilateral cooperation. In
the fields of international
standardization and security,
meanwhile, experts from Japan
and Germany participated in the
RRI and jointly developed astrategic document that features
issues to be discussed, bilateral
cooperation policies, etc.
Incidentally, the RRI released an
online use case map that provides
IoT examples in Japan, Germany
and France for sharing purposes.

4

Prime Minister(Minister in charge ofeconomywhich was developed in
November 2016 at the Sharing
Economy Review Meeting to
set voluntary rules for the safety
and reliability of a sharing
economy, the Sharing Economy
Promotion Office wasestablished in January 2017,tasked with a systematic andeffective promotion of
measures concerning a sharing
economy (information sharing,consultation services, etc.).

Creation of an
environment forcapitalizing ondataThe revised Personal
Information Protection
Law (Act 65, instituted in2015) will be
communicated to protect
personal rights andinterests and facilitate data
distribution; the revised
law is scheduled to takeeffect in May 2017.
Accordingly, the Personal
Information Protection
Committee will be
reinforced to provide
businesses with a better
understanding of ananonymous processed
information system alongwith consultation services
and information that help
them set voluntary rules.
Considering the
globalization of economic
and social activities,
moreover, efforts will bemade to communicate with
U.S. and EU
representatives, participate
in international cooperative
frameworks and establish
cooperation with eachcountry’s authorities, alldesigned to create anenvironment for smoothinternational data
distribution.
Data distribution and usage

setting the Sharing Economy
Information
Technology Policy)
Model Guidelines, which help
business associations certify
Minister of Internalsafe, reliable services. In
Affairs andaddition, the Sharing Economy
Communications
Promotion Office provides
Minister of Economy,
consultation services to local
Trade and Industry
governments, etc. on the
introduction and use of a sharing
economy while sending sharing
economy missionaries as needed.

Following enforcement of the Prime Minister
revised Personal Information(Minister in charge ofProtection Law in May 2017, aInformation
consultation hotline wasTechnology Policy,
established to help businesses
Minister of State fordeal with personal information
Economic and Fiscal
Policy)and anonymous processed
information while lecturers held
Minister of Internalseminars sponsored by business
Affairs andassociations and local
Communications
governments, with consultation
Minister of Economy,
services and briefing sessions
offered to help certified personal Trade and Industry
information protection bodies set
voluntary rules for personal
information protection
guidelines. At the same time,
experts were mobilized toreinforce the Personal
Information Protection
Committee.
More than 150 businesses(retailers, financial institutions,healthcare providers, welfareorganizations, etc.) have released
anonymous processed
information as of December
2017 while private organizations
are developing personal
information protection
guidelines, case studies andvoluntary rules.
As for creation of anenvironment for smoothinternational data distribution,
there is agreement with the U.S.
5

systems will be reviewed
from technical andinstitutional perspectives
with a basic policy set by
the end of FY2016. They
involve PDS (Personal
Data Store), where
personal data distribution is
promoted with direct
involvement of the owners,
and information banks or adata distribution market,
where personal data is
entrusted to reliable
persons for the sake of theowners and society.


The Data Distribution
Contact Guidelines will berevised in FY2017 toensure a fair exchange ofdata between businesses,
thereby creating a data
distribution market.

to promote the multilateral
APEC Cross-Border Privacy
Rules (CBPR) while the Personal
Information Protection
Committee has conducted
briefing sessions for public
relation purposes. Specifically,
11 international seminars, etc.
were held between April and
December 2017, inviting a totalof about 800 participants. In
addition, 97 briefing sessions
were held for domestic
businesses on the Personal
Information Protection Law and
the CBPR system, inviting 7,824
participants.
On the basis of the Personal
Information Protection Law,
meanwhile, several meetings
have been held since FY2016
with the EU judiciary to create aframework for the smoothtransfer of personal data between
Japan and the EU, with anagreement scheduled to takeeffect in the first quarter of
FY2018 between the Personal
Information Protection
Committee and the European
Commission.
As for participation ininternational cooperative
frameworks, the Personal
Information Protection
Committee was approved as an
official member of theInternational Conference of Data
Protection and Privacy
Commissioners (ICDPPC) in
September 2017. In addition, thecommittee participated inmeetings held by the Global
Privacy Enforcement Network(GPEN) and forums sponsoredby the Asia Pacific Privacy
Authorities (APPA).
As for promotion of personal
data distribution involving the6owners, the Data Distribution
Environment Commission
reviewed PDS, information
banks, etc. and released aninterim report in March 2017,
including recommended
guidelines. In addition, the public
and private sectors will jointly
discuss a certification scheme for
information banks for release by
the end of FY2017.
As for creation of a data
distribution market, the Contract
Guidelines for Data Usage
Rights (ver. 1.0) were announced
in May 2017 to communicate
rules on industrial data usage
rights based on cross-sectional
contracts.
Promotion of
metabolism andrestructuring
toward the 4th
industrial
revolution

Considering the status of the
Act on Strengthening Industrial
Competitiveness, discussions
will be held to encourage
innovation (e.g., promotion of
metabolism and restructuring),with the need to address
institutional aspects in mind;
necessary measures will betaken by the end of FY2017.

Requests were made to
Minister of Economy,
introduce a tax-deferral program Trade and Industry
that encourages mergers andacquisitions using treasury
shares, review restructuring tax
requirements and extend tax
relief for registration andlicensing regarding businessrestructuring according to the
Act on Strengthening Industrial
Competitiveness, all of which aredesigned to promote corporate
restructuring and have been
incorporated into the frameworkof the FY2018 tax revisions. In
addition, negotiation transactions
along with the existing TOB are
deemed exceptions to theCompanies Act, which applies toshare-based mergers andacquisitions. To facilitatebusiness restructuring, moreover,business restructuring ADR will
be revised, where rules are set toincrease the possibility ofprotecting transaction debts
indispensable for continuingbusiness, even when businessrestructuring ADR gives way tolegal liquidations; relevant bills
will be submitted to the FY20187

ordinary session of the Diet.
In December 2017,
meanwhile, public investment
funds including Innovation
Network Corporation of Japan(INCJ) were fully discussed atthe “Risk Money Supply
Workshop for the 4th Industrial
Revolution,” whose interim
report was released. With theworkshop’s review results taken
into account, INCJ’s investment
destinations will be examined
and its risk money supply
capabilities (including
investment capabilities) will bestrengthened; relevant bills will
be submitted to the FY2018
ordinary session of the Diet.
Promotion of
the 4thindustrial
revolution byhelping leading
small andmedium-sizedbusinesses
introduce IT androbotsTo help leading small andmedium-sized businesses keep
pace with the 4th industrial
revolution, the initial cost of
introducing small
general-purpose robots will be
reduced by more than 20% and30,000 personnel specializing
in development andintroduction of robot systems(system integrators) will be
secured by FY2020. To help
more than 10,000 leading small
and medium-sized businesses
introduce IT and robots by
FY2017, moreover, experts willorganize a support system andthe “Smart Manufacturing
Support Team” program will berolled out in cooperation withsupportive institutions topromote Kaizen, IoT and robots
at workshop level.

To reduce the initial cost of
Minister of Economy,
Trade and Industry
introducing small
general-purpose robots by morethan 20%, a project is underway
to develop robot-based
commercialization technology
for release in FY2019. To double
the number of system integrators,
moreover, efforts are underway
to promote introduction of robots
by educating and training themand create a favorable
environment by setting skill andprocess standards. As a result,
there are about 22,000 system
integrators as of December 2017,
up from about 15,000 in April
2016.
More than 17,000 leading
small and medium-sizedbusinesses have introduced IT
and robots between FY2016 andNovember 2017 throughguidance by IT experts andconsultation services provided bygeneral support centers. In
addition, the Smart
Manufacturing Supportive
Institution Liaison Conference
was held in December 2017 to8

build a solid support system byexperts while the Smart
Manufacturing Support Team has
been expanded to provide
services at 25 locations in
FY2017 (up from five in
FY2016), with the expert
program expected to go into fullswing in FY2018.
Promotion of
space equipment
and the industry
using it

Quasi-zenith satellites
(Unit 2, 3 and 4) will belaunched in FY2017 toestablish a four-unit system
by FY2018, thereby
providing round-the-clock
high-accuracy positioning
services (with cm-level
error).

Unit 2, 3 and 4 quasi-zenithsatellites were launched andare being tested to establish afour-unit system.
Efforts were made tocommercialize thequasi-zenith satellite
system’s achievements
through demonstration invarious fields such as
agriculture and ITS. In linewith the Basic Plan for the
Advancement of Utilizing
Geospatial Information(decided by the Cabinet in
March, 2017) and its
operation schedule, data
owned by ministries andprivate businesses wasprocessed and sharedthrough the Geospatial
Information Center (aplatform to consolidate
geospatial information
provided by the public andprivate sectors) anddemonstrations wereconducted to promote theGeospatial Project, which
involves automaticnavigation, automatedagriculture, remote sensing
in forestry and disasterevacuation support.

To lead the world increating a new industry
using geospatial
information and outerspace, industrial activities
such as automaticnavigation of agricultural
vehicles, smart forestry,i-Construction, dronetransport anddisaster-prevention
systems will be upgradedbased on a new basic planand roadmap for promotionof geospatial information(scheduled for release in
FY2016), leveraging thequasi-zenith satellites,
remote-sensing satellites
and the Geospatial
Information Center.
With the Space Act (Act76, instituted in 2016) inplace, flexible technicalstandards and guidelines
will be developed in
FY2017 for enforcement in
FY2018 to encourage
venture companies, etc. tomake inroads into the spaceindustry and private

Cabinet and ministerial
orders, guidelines andapplication manuals weredeveloped to enforce theSpace Act, part of which
took effect on November 15,
9

Prime Minister(Minister of State,
Chief Cabinet
Secretary, Minister ofState for Space
Policy)Minister of Internal
Affairs andCommunications
Minister ofAgriculture, Forestry
and Fisheries
Minister of Economy,
Trade and Industry
Minister of Land,
Infrastructure andTransport

Cybersecurity

businesses, into the rocket
launch market.

2017 (with in-advanceapplications accepted).

With the Act on EnsuringAppropriate Handling ofSatellite Remote Sensing
Data (Act 77, instituted in2016) in place, efforts will
be made to reduce risks
associated with handling ofsatellite remote sensing
data and support businesses
engaged in satellite
operation and image sales.

Relevant Cabinet andministerial orders, etc. weredeveloped with respect to the
Act on Ensuring Appropriate
Handling of Satellite
Remote Sensing Data, partof which took effect inAugust 15, 2017 (within-advance applications
accepted), followed by full
enforcement on November
15, 2017.



The status of each measure
will be reviewed andevaluated in line with the
Cybersecurity Human
Resource Development
Promotion Policy (decided
by the Cybersecurity
Strategy Headquarters on
March 31, 2016) to develop
cybersecurity humanresources while thePromotion, Education and
Human Resource
Development Investigation
Committee will holddiscussions to develop andannounce a future humanresource development
program in FY2016.

In July 2017, theCybersecurity Strategy
Headquarters compiled the
Cybersecurity Strategy Interim
Review – Cybersecurity Toward2020 and Beyond, whichsummarizes measures to bepromoted and strengthened,
considering threats that could
arise after the completion of thecurrent strategy (decided by the
Cabinet on September 4, 2015),
with priority issues being
addressed. In January 2018,
moreover, the headquarters
determined the Basic Policy for
Reviewing the Next
Cybersecurity Strategy.

As for human resource
To further protect key
development, the Cybersecurity
infrastructure, discussions
Human Resource Development
will be held to promote
Program was developed andpioneering approaches
announced in April 2017 to(classification), strengthen develop cybersecurity human
information sharing toward resources who can contribute to
the 2020 Tokyo Olympics
society in addition to theand Paralympics and make companies they work for.
necessary arrangements
The Key Infrastructure Expert
based on risk management Panel, meanwhile, reviewed thethrough review of the Third Third Action Plan for
Action Plan for
Information Security Measures
Information Security
for Key Infrastructure in March
Measures for Key
2017, followed by the Fourth
Infrastructure (reported to
Action Plan for Information
the Cyber Security Strategy
Security Measures for Key
10

Prime Minister(Minister in charge ofInformation
Technology Policy,
Minister in charge ofCyber Security
Strategic
Headquarters,
Minister of State forFinancial Services,
Minister of State for
Economic and Fiscal
Policy, Minister ofState for the “My
Number” system,
National Public
Safety Commission
Chairman)
Minister of Internal
Affairs andCommunications
Minister of Foreign
Affairs
Minister of
Education, Culture,
Sports, Science andTechnology
Minister of Health,Labour and Welfare
Minister of Economy,
Trade and Industry
Minister of Land,
Infrastructure andHeadquarters on October
12, 2016). Accordingly, theaction plan will befinalized by the end of
FY2016. Considering theresults of these discussions,moreover, a basic policy
will be developed by thesummer of FY2017 on
cyber security during the2020 Tokyo Olympics andParalympics and thereafter,with feasible measuresscheduled for phased
implementation.
Promotion of IT
inadministrative
procedures andprivatetransactions

With the Basic Act on
Cybersecurity and the Act
on Facilitation ofInformation Processing
partially revised (Act 31,
instituted in 2016) andenforced (on October 21,2016), communication
with incorporated
administrative agencies,
etc. will be kept under
supervision.

Considering the status ofadministrative procedures andsystems reviewed by eachgovernment agency based on
the Basic Policy for the Use of
IT Utilization (decided by the
IT Strategy Headquarters on
June 30, 2015), the IT Strategy
Office will cooperate withgovernment agencies in
identifying procedures thatshould be prioritized for IT
utilization from the perspectiveof private needs and determine
details of arrangements (timingof introduction, legislative
frameworks and other measuresthat are deemed necessary) by
May 2018 according to theresults of discussions held by
the Regulatory Reform

Transport
Infrastructure, which was
mapped out by the Cybersecurity
Strategy Headquarters in April
2017. Specifically, the concept of“performance guarantee” wasincorporated and the term “ITfailure” was replaced with “keyinfrastructure service failure,”
given that comprehensive
approaches are needed, including
information technology (IT) andoperational technology (OT).
Also included are themeasures to strengthen theinformation sharing system forevents such as the 2020 Tokyo
Olympics and Paralympics.
With the Basic Act on
Cybersecurity and the Act on
Facilitation of Information
Processing partially revised (Act31, instituted in 2016) andenforced, moreover,communication withincorporated administrative
agencies, etc. has been kept
under supervision since April
2017.
The Digital Government
Promotion Policy (determined by
the IT Strategy Headquarters andthe Strategic Conference for the
Advancement of Public andPrivate Sector Data Utilization
on May 30, 2017) sets out anaction plan for IT-based
administrative procedures andprivate transaction.
All administrative procedures,etc. associated with laws andregulations administered by eachgovernment agency were
understood through review of
those procedures and the Digital
Government Implementation
Plan, which includes a more
specific version of theabove-mentioned action plan,
was developed in January 2018.
11

Prime Minister(Minister in charge ofInformation
Technology Policy)
Minister of Internal
Affairs andCommunications

Promotion Council, etc. The IT
Strategy Office will also
consider technologicalinnovation, private needs, etc.
for other administrative
procedures and solicit inputs
from government agencies
regarding requirements for
introducing and leveraging IT,
the results of which will be
reviewed. Each government
agency, meanwhile, will reflect
them in its plan, which isrevised by the end of December
every year.
Promotion of IT in thegovernment andlocal authorities
and of BPRWith the enterprise
identification number
system introduced,
cross-sectional approaches
will be taken to create afavorable environment forbusinesses while efforts
will be made to eliminate
the certificate of registeredmatters (which is requiredfor business registration)and simplify administrative
procedures (by promoting
online procedures), all ofwhich will be reflected in aregistration information
system to be revised from
FY2018.

The registration information
system will be revised from
FY2018 to establish a system thatfacilitates information exchange
between administrative agencies.
Accordingly, the Digital
Government Implementation
Plan was developed in January
2018.

Prime Minister(Minister in charge ofInformation
Technology Policy)
Minister of Internal
Affairs andCommunications
Minister of Justice

In line with the Action Plan for Minister of Financethe Simplification and
Minister of Health,Acceleration of Registration and Labour and Welfare
Incorporation Procedures
Minister of Economy,(decided by the CIO Liaison
Trade and Industry
Conference on October 31,2016), moreover, the National
Tax Agency used corporate
registration information provided
To further promote IT and online and daily by the Ministry
BPR (Business Processof Justice and eliminated theRe-engineering), local
certificate of registered mattersgovernments will be visited for incorporation in April 2017,
for guidance andwith the Act on the Use of
discussions on the
Numbers to Identify a Specificintroduction of a local
Individual in Administrative
cloud system, which
Procedures (Act 27, instituted in2013) taking effect.
constitutes support for
local governments thatAt the same time, the Local
have an appetite for
Cloud Introduction Manual,
innovation. At the same
which analyzes, summarizes andtime, the analysis results of
categorizes local cloud caselocal cloud case studies
studies, was developed towill be summarized andpromote IT and BPR in local
categorized for local
governments while the heads ofgovernments that will
12

introduce the system while
the achievements madewill be communicated to
all local governments alongwith advice to help them
introduce the system(particularly, a local cloudsystem). The target is to
double the number of
adopters (about 1,000
bodies) by FY2017.

Promotion of“My Number”
Card and “My
Number” Portal



local governments were visitedand requested to take specificmeasures to introduce thesystem, in which the Deputy
Chief Cabinet Secretary for
Information Technology Policy(government CIO) cooperate.
The manual was also used to
guide and advise the heads andadministration officials of local
governments at the Governors’
Association, the Mayors’
Association, town and village
assemblies, seminars, etc.

In parallel with thefull-fledged introduction of“My Number” Portal in
July 2017, discussions will
be held to promote the useof “My Number” Card and“My Number” Portal,
which are expected tomake everyday life
convenient.

Child-raising one-stop
Prime Minister
services using “My Number”(Minister in charge ofPortal were launched in July
Information
2017, with applications withTechnology Policy,
e-signatures phased in from
Minister of State for
October 7, 2017 forDisaster Prevention,
administrative procedures
Minister of State forconcerning child raising and
Declining Birthrate,
education. The full
Minister of State for
implementation of thethe “My Number”
system)According to an action plan information sharing system in
November 2017, moreover,developed in December
Minister of Internal
obviated
the
need
to
submitlegal
2016 for the One -stop Card
Affairs anddocuments such as residence and Communications
Project to help as manytaxation certificates whenpeople as possible realize
Minister of Financemaking applications online.
the convenience of “MyMinister of Health,Number” Card, efforts will
Efforts are also underway toLabour and Welfare
be made to: realize andincrease the number of bodies
upgrade child-raisingthat offer issuance services at
Minister of Economy,
one-stop services using
convenience stores by reducing
Trade and Industry“My Number” Portal (to be burdens on municipal
phased in from July 2017); governments so that over 100
increase the number ofmillion people can use theservices by the end of FY2019.
bodies that offer issuanceservices at convenience
Systems such as My Key
stores, leveraging measures Platform are already in place
to reduce burdens on
where points obtained throughmunicipal governments
My Key Platform and private(covering over 100 million
business can be used at local
people by the end of
shopping malls, etc. In addition,
FY2019); and establish ademonstrations started insystem where points
September 2017 to promote local
obtained through My Key economy supportive points.
Platform and private
The Declaration on thebusiness can be used atCreation of the World's Most
13

local shopping malls, etc.


Referring to an interim
report provided by theDisaster Planning andVictims Relief Task Force(September 2016), theschedule will be fixed by
the end of FY2016 fordesigning an information
sharing system that enables
an effective monitoring of
evacuation situations, etc.
using the “My Number”
system and “My Number”
Card in time of disasters or
when providing relief tovictims.
Institutional measures will
be discussed for
certification of authority
regarding inter-corporationtransactions, etc. throughpublic personal
identification services
while the legislative
framework required will be
developed by the end of
FY2017 to help corporatedelegates prepare andsubmit contracts and otherlegal documents online
using “My Number” Card(and without face-to-facecommunication andpaperwork). At the sametime, a systeminfrastructure will be
developed to phase inelectronic transactions
designed to simplify thegovernment’s procurement
procedures (fromexamination ofqualifications for bidding
to conclusion of contracts
using “My Number” Cardand corporate identification
numbers), a program thatwill start in FY2017.

Advanced IT Nation - Basic Planfor the Advancement of Publicand Private Sector Data
Utilization (decided by the
Cabinet in May 2017) prioritizes
leveraging the “My Number”
system for disaster planning andvictims relief while specificmeasures for the latter will be
developed by the end of FY2017.
As for institutional measuresfor certification of authority
regarding inter-corporationtransactions, etc. through publicpersonal identification services,
the Act on Promoting Electronic
Proxies (Act 64, instituted in2017) was established in June2017 and came into force inJanuary 2018. Accordingly, thegovernment’s procurement
procedures using an electronic
procurement system compatible
with “My Number” Card andelectronic proxies will be
simplified, beginning in FY2018.
In December 2017, input ofbasic information was simplified
using corporate identification
numbers and the Corporate
Information for electronic
application procedures for Japan
Venture Awards, etc., which will
be applied to those for subsidies
earmarked for small- andmedium-sized companies andventure companies. In addition,patent information and eachgovernment agency’s
consolidated data wereincorporated into businessinformation included in the
Corporate Information.

14

Other phased-in measures
in FY2017 include
application toadministrative proceduresfor subsidies for venturecompanies, linkage withother administrative
agencies’ portal sites andupgrading of corporate
information to be included
in “Corporate
Information,” which waslaunched in January 2017.

Promotion of
In line with the Basic Act onopen data in the the Advancement of Public andgovernment and Private Sector Data Utilization
local authorities (Act 103, instituted in 2016),
open data will be aggressively
promoted with due
consideration given to safety,
security and protection of
personal information.

In line with the Basic Act on
Prime Minister
the Advancement of Public and (Minister in charge ofPrivate Sector Data Utilization,
Information
the Strategic Conference for the Technology Policy)
Advancement of Public andMinister of Internal
Private Sector Data Utilization
Affairs andand the Public and Private Sector Communications
Data Utilization Planning
Minister of Economy,
Committee were established
Trade and Industry
under the IT Strategy
Accordingly, a control center
Headquarters. In addition, theconsisting of experts from the
Declaration on the Creation of
public and private sectors will
the World's Most Advanced ITbe established under the IT
Nation - Basic Plan for theStrategic Headquarters to
identify priority issues such as Advancement of Public andPrivate Sector Data Utilization
the 2020 Tokyo Olympics and(decided by the Cabinet in May
Paralympics and30, 2017) was formulated in May
auto-navigation maps, taking
2017, with eight priority areas
into account the needs of theprivate sector, while necessary identified, which resulted in themeasures will be taken by 2020 Open Data Basic Policy (decided– a period in which they will be by the IT Strategy Headquarters
on May 30, 2017). Management
intensively implemented.
of data owned by government has
been underway since June 2017.

Upgrading of
information
communication
infrastructureand earmarkingof frequency
band for IoT

Development anddemonstration of optimized
control technology to quickly
and efficiently connect anenormous number of IT devices
to the network using softwareand virtual techniques will startin FY2017 to develop andupgrade information
communication infrastructure
and the network – the backbone

To develop and upgrade
Minister of Internal
information communication
Affairs andCommunications
infrastructure and the network(the backbone of data
communication in the era of
IoT), a human resource
development model business waslaunched in September 2017,
taking into account a report
prepared in July 2017 by the
Information and Communication15

of data communication in theera of IoT. At the same time,skills required for operating andcontrolling the network using
these techniques, coupled withqualification standards, will bedefined by the summer of 2017,with human resource
development scheduled to startby the end of 2017. Reflecting
R&D achievements, moreover,a comprehensive demonstration
program will start in FY2017 inurban and rural cities forcommercializing the 5th
generation mobile
communication system (5G)
and the institutional framework
will be developed to startoffering services in around2020.

Council under the Ministry ofInternal Affairs andCommunications on
development of human resources
capable of operating andcontrolling the network in the eraof IoT where software and virtualtechniques are expected to
become widespread rapidly.
To commercialize the 5th
generation mobile
communication system (5G), a
comprehensive demonstration
program started in May 2017 inurban and rural cities to create
new markets based on 5G while
discussions started in November
to develop the institutionalframework for setting technicalstandards in response to a reportprovided in September by thecommittee of the Information
and Communications Council on
earmarking of frequency.

2. Toward the most advanced health-conscious nation(1) Major progress toward KPI targets<KPI> Extend healthy life expectancy by more than one year by 2020 [Men: 70.42 years
old, Women: 73.62 years old (2010)] [8] FY2013: Men: 71.19 years old, Women: 74.21 years old<KPI> Reduce metabolic population (those who need specific health guidance) by 25%
from FY2008 levels by 2020 [About 4.01 million in FY 2008] [9] FY2015: Down 16.5% from 2008 levels<KPI> Eliminate evaluation lag in pharmaceuticals and medical devices by 2020
[Pharmaceuticals: One month, Medical devices: Two months, FY2011 [17] FY2016: Pharmaceuticals: 0, Medical devices: 0(2) Major progress in measures
MeasurePromotion ofhealthmanagement

Contents and completion
deadline
Health management brands
will be continued and theselecting method will be
improved by FY2016 to
improve and promote healthmanagement where companies

Progress and implementation
statusA new system will be
developed to evaluate thefunctionality and effectiveness ofeach company’s approaches as
selection standards for healthmanagement brands. In February
16

Minister in charge
Prime Minister(Minister of Statein charge of Healthand Medical
Strategy(hereinaftersupport employees’ healthmanagement as a priority
management issue. In addition,
the relationship between eachcompany’s health management
approaches and its businessperformance will be studied andanalyzed from management
perspectives.
For small- and medium-sizedcompanies, meanwhile, the firstgood health management
certificates will be granted by
FY2016 and discussions will beheld to provide incentives tocertified companies in thefinancial and labor markets.

2017, 24 brands were selected as“Health Management Brand
2017” and 235 companies werecertified as “Blue-chip HealthManagement Company 2017
(Category: Large corporation).”“Minister in chargeof the Health andMedical Strategy”)
Minister of
Economy, Tradeand Industry

The relationship between theimplementation of healthmanagement and businessperformance or productivity will
be further studied and analyzed.
Likewise, 318 small- andmedium-sized companies werecertified as “Blue-chip HealthManagement Company 2017
(Category: Small- andmedium-sized corporation).”At the same time, companies
certified as blue-chip healthmanagement companies were
provided with information on
incentives such as low-interest
loans administered by local
authorities and banks.

Upgrading of thequality andefficiency of
nursing careusing robot
sensors, etc.

The program will be launched
FY2016 budget contributed to aby the end of FY2016 to collect study to demonstrate the effect ofand analyze outcome data on the robots in nursing care and theefficiency of robot-assisted
supplementary budget, tonursing care, the results ofdemonstrations at nursing homes
which will be reviewed to(between May and August 2017),
design a policy for evaluation of the results of which will be taken
nursing care using robots, etc., into account in reviewing theincluding review of nursing-care allocation of night-shift caregivers
benefits, staff assignment andfor cases where monitoring
facility standards, which
equipment contributes to efficient
contribute to alleviating burdens nursing care. Nursing-careon caregivers. The conclusion
benefits, meanwhile, will bewill be reached by the end ofrevised in FY2018 to improve the
FY2017.
efficiency of night-shift nursing
care.

Introduction of
ID intohealthcare

According to a report
prepared by the Workshop on
Introduction of the ID system
into Healthcare (released on
December 10, 2015), theframework of a system to verify
health insurance qualifications
online and introduce the

Minister of Health,Labour andWelfareMinister of
Economy, Tradeand Industry

The Health Insurance Task
Minister of Health,
Force under the Advisory Council Labour andWelfareon Social Security announced aplan in November 2017 to develop
a system using the infrastructureof the “My Number” system
where the health insurance
qualification of the insured is17healthcare ID system along withdetails such as administrative
work will be discussed in
FY2016 for systemdevelopment in FY2017; thesystem is scheduled to bephased in from FY2018 andfully operational from 2020.

centrally controlled regardless of
his/her insurer (which is
associated with a career change orretirement), with the ID number
issued individually (while it’scurrently issued for eachhousehold) for online verificationof health insurance qualifications.
Leveraging theseinfrastructural elements,
moreover, discussions will be held
to manage ID numbers for
information sharing in healthcare;the conclusion will be reached by
the summer of 2018.

Use of big data topromoteinnovation,
improve clinicalpractices anddevelophealthcare
policies

Legislative measures will betaken by the end of FY2017 todevelop infrastructure forcollecting clinical data, whichshould be safeguarded andanonymized, to promote R&D
of drugs and treatment based onhealthcare information.

As the FY2017 ordinary
session of the Diet passed the Billon Anonymously Processed
Medical Information forContribution to Medical R&D(Act 28, 2017), cabinet andministerial orders are being
discussed to enforce the law inMay 2018.

Prime Minister(Minister in chargeof the Health andMedical Strategy)
Minister of
Education, Culture,
Sports, Science andTechnology
Minister of Health,Labour andWelfareMinister of
Economy, Tradeand Industry

Systematic use ofindividual
medical andhealthinformation

Individualized healthcare
services will be demonstrated
from FY2016 to provide
healthcare services according toindividual needs by collecting
and analyzing medical checkup
data owned by insurers andcompanies and health data thatcan be routinely obtained fromwearable devices, etc. with theconsent of the subjects. Eachindividual, meanwhile, is
expected to manage his/her
medical and health data by life
stage and in chronological orderto create the basis for
information sharing designed
for various services.

The Ministry of Economy,
Trade and Industry demonstrated
a program in FY2016 for mild
diabetics and diabetes preliminarygroups as part of its initiative toleverage individual medical andhealth information owned bycorporate insurers, etc. to change
the lifestyle of the insured; theresults suggest that guidance
based on daily health data
contributes to some extent topreventing diabetes frombecoming full blown, while the
Health Information Sharing Rule
Definition Document (a healthinformation collection format)
was developed. Reflecting theseachievements, the Japan Agency
18

Minister of Internal
Affairs andCommunications
Minister of Health,Labour andWelfareMinister of
Economy, Tradeand Industry

In addition to encouraging
health insurers to promotefitness and preventive measures,moreover, incentives will be
provided to such measuresleveraging ICT, etc.

for Medical Research andDevelopment will conduct
large-scale, in-depth, extended
demonstrations from FY2017 tobuild evidence and upgrade
services.
The Ministry of Internal Affairs
and Communications, meanwhile,
is developing PHR (Personal
Health Record) model services (tosupport pregnancy, delivery andchild raising) and the basis for
managing and using data acrossservices.
As for incentives to encourage
health insurers to promote fitness
and preventive measures, theCommittee on Medical Checkup
and Health Guidance by Insurers
under the Ministry of Health,Labour and Welfare agreed in
April 2017 to gradually increase
the index of penalties for subsidies
for the elderly aged 75 or over andthe penalty/incentive rate, up to alegal limit of 10% , while the index
of incentives was approved in
October. As for the evaluationindex of incentives, the results ofmedical checkups arecommunicated to examinees
through ICT, with data shared
among insurers, to appropriately
evaluate various approaches(preventive measures, fitness,etc.) that contribute to optimizing
healthcare costs.

Realization of theCommunity
Healthcare
Cooperation andPromotion
Corporation
systemFollowing the enactment of
the bill on Partial Revision of
the Medical Service Act (Act74, instituted in 2015), which
includes the establishment of theCommunity Healthcare
Cooperation and Promotion
Corporation system designed toconsolidate the management ofmultiple healthcare
corporations, cabinet andministerial orders will be

The enforcement order andMinister of Health,regulation for the Medical Service Labour and
Act were revised in February and Welfare
enforced in April 2017 to enforce
the Act on Partial Revision of theMedical Service Act. Fourcorporations have been certified
so far while briefing sessions were
held in 27 cities to help
representatives from medical
corporations, etc. better
understand the system.
19

developed to make the system
functional for enforcement inApril 2017. At the same time,
information will bedisseminated in an efficient way
to cooperate with a better
community medical care,
optimize the management of
medical institutions, collaborate
with various healthcare services
and solidify the R&D
foundation for pharmaceuticals
and medical devices.
As for conversion ofuniversity hospitals poised tomerge with other hospitals into
other corporations, theCommunity Healthcare
Cooperation and Promotion
Corporation system will be
explained in detail to facilitate asmooth, simultaneous
inauguration in cooperation withthose concerned.

As for conversion of university
hospitals into other corporations,
relevant ministerial orders andnotices were issued in December
2016 and enforced in April 2017

Minister of
Education, Culture,
Sports, Science andTechnology(3) Proactive development of the agricultural, forestry and fisheries industries andstrengthening export capability
1) Progress in achieving KPIs
<KPI> Increase the ratio of farmland used by business farmers to 80% in the next 10 years[21]
End of FY2013: 48.7%  End of FY2016: 54.0%<KPI> Reduce the cost of rice production by business farmers by 40% in the next ten years(by 2023) compared with the national average cost in 2011, including through efforts
by industry concerning farm inputs and distribution systems [22]National average cost of rice production in 2011: ¥16,001/60kg
 National average cost of rice production in 2016
 Individual farming* ¥10,900/60kg (Down 32% from ¥16,001/60kg)
 Farming by incorporated organization** ¥11,677/60kg (Down 27% from
¥16,001/60kg)* Among certified farmers, individual farming management body (with rice-paddy acreage of more than15ha), whose farming income from rice paddy cultivation per one farmer is equivalent to that from otherindustry.
** Organized farming management body (with rice-paddy acreage of 22ha on average) whose sales income
from rice paddy cultivation is largest compared to that from other types of farming<KPI> Increase the number of corporate farmers four-fold from the 2010 level to 50,000 in
the next ten years (by 2023) [24]202010: 12,511 corporations  2017 (February): 21,800 corporations<KPI> Expand the market size of the so-called AFFrinnovation which means adding value
to agricultural products, forest products, and fishery products in an innovative way,
making new combinations, or creating a value chain, to ten trillion JPY in FY 2020[25]
 FY2015: ¥5.5 trillion<KPI> Increase the export value of agricultural, forestry and fishery products and foods to
one trillion JPY by 2020 [27]
 2016: ¥750.2 billion
2) Progress made in implementing measures
Description & timeline for
implementation
Promoting of
The Farmland Banks’consolidation and performances in each prefecture
aggregation ofduring FY2016 will be assessed
farmland by thein the spring of 2017, andPublicnecessary improvement
Corporations for measures will be taken based on
the results.
FarmlandConsolidation to
In addition, a system that
Core Farmers
allows infrastructure
through Renting establishment projects
and Subleasing
pertaining to farmland that the(Farmland
Farmland Banks are renting that
Banks)
will not require contributions
and consent from business
farmers will be established, withnecessary legislative measurestaken by the end of 2017.
Measures

Progress & status of
implementation
The track records of theFarmland Banks in respective
prefectures for FY2016 were
evaluated by the Headquarters on
Creating Dynamism through
Agriculture, Forestry and Fishery
Industries and Local Communities
held in May 2017. Based on theevaluation, measures such as thepromotion of utilizing
fruit-growing lands intermediaryareas between plains andmountains and strengthening
partnership with Optimized
Farmland Usage Promotion
Committee Members were taken.

Minister in charge
Minister ofAgriculture,
Forestry and
Fisheries

In addition, the Revised Land
Improvement Act was approvedby the 2017 ordinary session (ActNo. 39 of 2017), whichconsequently established a system
for an infrastructure development
project that will not require
contributions and consent frombusiness farmers.

Promoting the
Implementing steadily the
In order to establish an
production of rice initiatives for the reform of rice environment that enable farmers
based on thepolicy adjustment program from to choose their crops based onmarket demand
2018.
their management decision,having abolished the allocation of
the rice production quota by thegovernment and the subsidy
linked the allocation
21

Minister ofAgriculture,
Forestry and
Fisheries

Incorporation of
Farmer Income
Insurance

Necessary legislative
measures on the Farmer Income
Insurance system for business
farmers who are appropriately
managing business will be takenby the end of 2017.

The Revised Agricultural
Disaster Compensation Act (ActNo. 74 of 2017) was approved by
the 2017 ordinary session, which
established the Farmer Income
Insurance system that encourages
farmers to take on challenges,
such as for agricultural workers
who appropriately manage theirbusiness to produce new
profitable crops and develop newsales channels.

Minister ofAgriculture,
Forestry and
Fisheries

Improvement of
the employment
structure for
agricultural
workers in rural
areas

Legislative measures tochange the industry applicableto those expected to generatehigh locational demands in rural
areas in the Act on Promotion ofIntroduction of Industry into
Agricultural Regions (Act No.
112 of 1971) will be taken by
the end of 2017.

The Revised Act on Promotionof Introduction of Industry into
Agricultural Regions (Act No. 48
of 2017) was approved by the2017 ordinary session, and thelimitation of applicable industries
was removed, among otheramendments.

Minister ofAgriculture,
Forestry and
Fisheries

Reduction ofagricultural input
pricesTo contribute to the reductionof agricultural input prices,which would lead to theimprovement of farm income,legislation that clarifies thegovernment’s responsibilities
and measures to promote therestructuring of the industry will
be developed in the 2017
ordinary session.

Aiming at the reduction ofagricultural input prices, theAgriculturalCompetitiveness
Enhancement Support Act (ActNo. 35 of 2017) was approved by
the 2017 ordinary session.

Minister ofAgriculture,
Forestry and
Fisheries

Establishment of
distribution/
processing
structures that are
advantageous to
producers

Legislation that clarify thegovernment’s responsibilities
and methods to promote theindustry’s reorganization will be
developed in the 2017 ordinary
session in order to establish
distribution and procession
industry structures in which
producers can engage in stabletransaction with advantageousconditions.

With aims to establish
distribution and procession
industry structures in which
producers can engage in stabletransaction with advantageousconditions, the AgriculturalCompetitiveness Enhancement
Support was approved by the 2017
ordinary session.

Minister ofAgriculture,
Forestry and
Fisheries

In addition, the Plan for
Creating Dynamism in
In addition, drastic measures Agriculture, Forestry and Fisherywill be taken to ultimately
Industries and Local Communities
abolish regulations in therevised in December 2017
Wholesale Market Act (Act No. revealed plans to revise the35 of 1971) that have lost
Wholesale Market Act and the Act
reasonable grounds.
on Promotion of Food Marketing
22Structure Improvement.
Reforms on the
production anddistribution ofmilk and dairy
products

The current Act onCompensation Price for
Producers of Milk for
Manufacturing Use in which thegovernment provides financial
assistance only to producers
who consigns products todesignated agricultural
cooperatives will be reviewed,
and necessary legislative
measures will be taken after
fully discussing with relevant
parties.

The Revised Livestock
Farming Management
Stabilization Law (Act No. 60 of
2017) was approved in the 2017
ordinary session, and measures
were implemented to allow
producers to choose their shipping
destinations of choice.

Minister ofAgriculture,
Forestry and
Fisheries

Display of raw
material origins
for all processedfoods

A system in which the origins
of raw materials comprising the
top weight percentage will be
displayed in order of weight bycountry for all processed foods
will be developed.

A Cabinet Office Ordinance inwhich food labeling standards
pertaining to the origins of raw
materials in processed foods waspromulgated and enacted on
September 1, 2017 that mandates
all processed foods manufactured
in Japan to label the origins of raw
materials comprising the top
weight percentage.

Prime Minister

Measures based on theStrategies to Strengthen the
Exporting Power ofAgricultural, Forestry and
Fishery Industries (decided by
the Headquarters on Creating
Dynamism through Agriculture,
Forestry and Fishery Industries
on May 19, 2016) and theInfrastructure Development
Program for Agricultural,
Forestry and Fishery ProductExports (decided by the
Headquarters on Creating
Dynamism through Agriculture,
Forestry and Fishery Industries
on November 29, 2016) will besteadily implemented.
Necessary revisions will bemade afterwards in the Export
Strategies Executive Committee
held in March 2017, together
with verifying theimplementation status of

The implementation status ofexport-enhancing strategies wasverified in the Export Strategies
Executive Committee held inMarch 2017, and policies for
FY2017 on the strategies weredeveloped in May.

Minister of Foreign
Affairs

Strengthening ofexportcapabilities

In addition, the Japan Food
Product Overseas Promotion
Center (JFOODO) wasestablished within JETRO in
April 2017 as an export support
institution to plan and implement
branding and promotional
strategies for Japan-produced
products.
Furthermore, the Act to Revise
the Act on Standardization, etc. ofAgricultural and Forestry
Products (Act No. 70 of 2017)
was approved in the 2017 ordinary
session, and a framework to
strategically establish and utilize
JAS standards that will enhance
23(Minister of State
for Consumer
Affairs and Food
Safety)Minister ofAgriculture,
Forestry and
Fisheries

Minister ofFinance
Minister of Health,Labour andWelfareMinister ofAgriculture,
Forestry and
Fisheries

Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourism

export-strengthening strategies.

exporting power was developed.

In addition, a neworganization will be establishedby FY2017 to strengthen
support towards the branding
and promotion of agricultural,
forestry and fishery products
and foods produced in Japan, as
well as export business
operators.

The GAP cetification system
made in Japan for export(ASIAGAP) applied for therecognition of GFSI (Global Food
Safety Initiative), an international
food safety organization, in
November. As for the standards
and certification system for foodsafety management based on the
HACCP system, 21 certifications
had been issued within one year
up to August 2017, and it wasapplied for the recognition of
GFSI in September.

Furthermore, necessary
legislative measures will betaken by the end of 2017 tochange the system based on the
Act on Standardization ,etc. ofAgricultural and Forestry
Products (Act No. 175 of 1950)
so that measures such as theestablishment of Japanese
Agricultural Standard(JAS),
which will lead to promoting thequality and characteristics ofproducts made in Japan,will bepromoted.
In regard to GAP certification
made in Japan, an application
for seeking the internationalrecognition of the standards will
be filed in FY2017. As for the
standards and certification
system for food safety
management based on the
HACCP system, more than 10
certifications will be issued forthe initial year starting from
FY2016, and it will be applied
for seeking the internationalrecognition in FY2017.

24

(4) Realization of Japan as a tourism-oriented nation
1) Progress in achieving KPIs
<KPI> We aim to increase the number of international visitors to Japan to 40 million in 2020
and 60 million in 2030. [28]
 2015: 19.74 million; 2016: 24.04 million; 2017: 28.69 million (estimate)<KPI> We aim to increase the amount of consumption by international visitors to Japan to 8
trillion yen in 2020 and 15 trillion yen in 2030. [29]
 2015: 3.4771 trillion yen; 2016: 3.7476 trillion yen; 2017: 4.4161 trillion yen(preliminary)2) Progress made in implementing measures
Measures
Improvingextensive
sightseeing
routes to aworld-class level

Comprehensive
review of
tourism-related
regulations andsystems

Responding to
private lodging

Description & timeline for
implementation
Special measures that will
waive consumption and liquor
taxes for liquor made in Japan
sold to international visitors insake breweries approved as
duty-free stores in order tovitalize tourism in regional sakebreweries, increase the numberof international tourists visiting
the breweries and expand
spending through tourism.

Progress & status of
implementation
Special measures were launched
to exempt consumption and liquor
taxes for liquor made in Japan soldby liquor producers in liquor
production sites approved as export
liquor stores to international tourists
starting October 2017.

Minister inchargeMinister ofFinance

Necessary legislative
measures will be taken
regarding land operators byidentifying actual conditions
through incorporating a
registration system, together
with appropriately guiding andsupervising businesses that poseissues.

The Act to Partially Revise theLicensed Guide Interpreters Act
and the Travel Agency Act (Act No.
50 of 2017) was approved in the2017 ordinary session. Measuresthat adopt a registration system forland operators and requireappointment of administrators andissuance of documents wereenacted in January 2018.

Minister of Land,
Infrastructure,
Transport andTourism

Necessary legislative
measures will be taken to havecommunity-based enterprises,
such as Class 3 Travel
Operators and hotel operators,
plan and offer
community-based optional
tours more easily.

The Act to Partially Revise theLicensed Guide Interpreters Act
and the Travel Agency Act wasapproved in the 2017 ordinary
session and enacted in January
2018, with measures implemented
to establish a system forlimited-area travel service
supervisors.

Minister of Land,
Infrastructure,
Transport andTourism

Necessary legislative
measures will be taken to

The Private Lodging BusinessAct (Act No. 65 of 2017) was

Minister of
Health, Labour

25

Minister of Land,
Infrastructure,
Transport andTourismservices

Further
acceptance of
cruise ships toachieve 5 million
cruise visitors toJapan in 2020

establish regulatory
infrastructure by type of private
lodging and promote suchservices that satisfy certain
requirements under regulations.

approved in the 2017 ordinary
session, and measures were taken to
establish a notification system forcompanies that operate private
lodging services. Furthermore, theAct to Partially Revise the Inns andHotels Act (Act No. 84 of 2017)
was approved in the 2017 special
Diet session, and measures weretaken to enforce regulations on
unauthorized businesses. Both laws
are scheduled to be enacted in June
2018.

and Welfare

New framework that approvepriority usage of wharfs for
operators who invest on
accommodation facilities willbe established in order toaccelerate the development of
an international cruise hub
through utilizing private financeand public-private partnership,and legislative necessary
measures will be taken.

The Act to Partially Revise thePort and Harbor Act (Act No. 55 of
2017) was approved in the 2017
ordinary session and enacted in July
2017. A new system that approves
priority usage of wharfs for
operators who invest on
accommodation facilities wasestablished. In addition, six ports(Yokohama, Shimizu, Sasebo,
Yatsushiro, Motobu, Hirara) were
designated on July 26, 2017 asinternational passenger ship hub
ports in which the new system
based on the Act will be applied.

Minister of Land,
Infrastructure,
Transport andTourism

Minister of Land,
Infrastructure,
Transport andTourism(5) Upgrading the sports and culture industries to growth industries
5-1. Developing the future of the sports industry
1) Progress made in achieving KPIs
<KPI> Expand the sports market (2015: ¥5.5 trillion) to worth ¥10 trillion by 2020, and ¥15
trillion by 2025 [35] ¥5.5 trillion (2015)2) Progress made in implementing measures
Measures
Making sports
facilities more
attractive

Description & timeline for
implementation
Using leading cases forstadium and arena development
in Japan and internationally also
as reference to transform fields
and gymnasiums used forsporting events into facilities(stadiums, arenas) that are

Progress & status of
implementation
The Process Guide to Utilizing
Fundraising Methods and Private
Finance Pertaining to Developing
Stadiums and Arenas (“Process
Guide”) was compiled in May 2017
so that measures will be taken tolaunch reforms for stadiums and26

Minister inchargeMinister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Economy, Tradeattractive to spectators andprofitable, prompt the creationof new leading cases and rollout to other projects. In
addition, matters to be reviewed
and solutions for projectprocesses carried out by local
governments will be organized
by end of FY2016 as reference
to specifically implement theStadium and Arena Reform
Guideline announced in
November 2016.

arenas. In addition, the Stadium andArena Reform Guidebook that
includes the Stadium Arena Reform
Guideline and Process Guide
previously announced, measures toimprove profitability for stadiums
and arenas in Japan and abroad, andcase studies that involve leveraging
IT to enhance customers’
experience values was compiled inJune 2017. Efforts are being madeto publicize and raise awareness, aswell as promote the development of
new leading cases.

and Industry
Minister of Land,
Infrastructure,
Transport andTourism

Support on grasping issues thatarise and their solutions whenplanning the development ofadvanced stadiums and arenas byinvolving experts are being offered
as well. Support was offered for 12
projects between FY2016 and theend of December 2017.
Strengthening ofmanagement
capabilities ofsports contents
holders

Conclusions will be made onplans to establish aninterdisciplinary and inter-sport
type organization (JapaneseNCAA) that leverages thepotential capabilities (humanresources, economy
revitalization, regional
contribution, etc.) of sport
resources that Japanese
universities possess andestablishes appropriateorganizational management andsound college sports businessesby the end of FY2016. In
addition, discussions will beheld on establishing the Sports
Management Human Resources
Platform (tentative name) inorder to enhance management
capabilities for organizational
operation, profitability andgovernance of sports-relatedorganizations and securemanagement personnel who cancontribute to the organization
immediately, with conclusions

Discussions were made in thereview meeting on the promotion ofcollege sports, and conclusions
were compiled in March 2017. The
report indicated its basic stancetowards the promotion of college
sports, together with the principles
and anticipated roles of theJapanese NCAA. Specific planningof the system is also under way after
forming an academiaindustry-government council in
September 2017 to establish theJapanese NCSS by the end of 2018.
In addition, discussions weremade on the development andutilization of sports management
personnel in the Sports
Management Personnel Platform
Council meeting held in October
2016 and March 2017 comprisingexperts from the industry,
government and academia toestablish the Sports Management
Personnel Platform (tentativename), and organized the current
issues faced. Visions on ideal
27

Minister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Economy, Tradeand Industry

obtained by the end of FY2016. personnel and the education
curriculum are being discussed withaims to compile a plan on a systemthat develops sports management
personnel by the end of FY2018.
Strengthening theIndustry-government-acade
sports field’s
mia discussions on topics suchindustrial
as the effective utilization ofcompetitiveness
distribution technology,
promotion of expanding tointernational markets and newrights businesses will take placefrom FY2016 in anticipation ofcreating a new sports media andcontents market. In addition,
relevant ministries and agencies
will review supportive measures
on integration with otherindustries to create and expand
new sports markets to come toconclusions by the end of
FY2016.

Discussions on topics such as theeffective utilization of distribution
technology, promotion of
expanding to international markets
and new rights businesses were
made, and the utilization of newtechnology in the sports media field
were compiled in April 2017.

Minister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Economy, Tradeand Industry

In addition, it was concluded thatutilization case studies pertaining to
IoT in sports facilities andbusinesses should first be compiled
and made familiar as a result of
discussing supportive measures for
integrating with other industries tocreate and expand new sports
markets. Consequently, interviews
will be conducted to operators
possessing technology seeds within
FY2016 to compile new utilizationcase studies. The results will be
included in the Stadium and Arena
Reform Guidebook announced inJune 2017 to spread recognition
among operators and local
governments that are developing
plans for stadiums and arenas.

5-2. Economic revitalization that utilizes cultural and artistic resources
1) Progress in achieving KPIs
<KPI> Increase the cultural GDP to ¥18 trillion (about 3% of the GDP) by 2025 [37]
 2015: ¥8.8 trillion
2) Progress made in implementing measures
Measures
Expansion of thearts and cultureindustry andeconomic ripple

Description & timeline for
Progress & status of
implementation
implementation
Analysis on success stories in
The Cultural and Economy
Japan and internationally will
Strategy was developed inbe continued based on the
December 2017 for arts and culture
perception that food, education, to together create new values with
28

Minister inchargeMinister of
Education,
Culture, Sports,
Science andeffects

Generating ripple
effects throughinvesting onfields that areclosely
associated with
culturetext, audio, footage, contentssuch as gaming software anddesign, in addition to cultural
assets, traditional arts and arts
culture, are all broadly culture
to expand the economic ripple
effects. A policy roadmap will
be compiled by the end of
FY2016 to materialize themeasures to take. In addition,
efforts to make multiple
language versions of
explanations on cultural assets,
repairing according to theappropriate cycle of cultural
assets and decoration ofarchitecture will be made basedon the 2020 Cultural Assets
Utilization and Understanding
Promotion Strategy Program sothat about 200 sightseeing
location that feature cultural
assets, including those ofJapanese heritage, will beorganized by 2020.
Furthermore,industry-academia-government(museum) cooperation willcontribute to sustainable
development of local
economics, creating sites thatwill pave the way toward a
symbiotic society, and createand develop producers who will
support these actions in order toleverage cultural resources andformulate a new society modelthat generates profits.

other fields, with the new value
forming a mechanism thatindependently and sustainably
develops through having the newvalues effectively reinvest on thepreservation, inheritance and new
creation of culture and arts. Goingforward, an action plan that
includes key measures to promote
this strategic plan will be compiled
for the measures to be promoted(the cultural economy strategy andaction plan are positioned asencompassing the policy roadmap
that has been under discussing from
FY2016).

Efforts made in fields such as
virtual reality (VR) in which
new growth is anticipated will
be promoted, along with
contents-focusedcommunication of culture andmarket expansion. In addition,effective promotion andextensive publicizing of regions
and the development ofpromising regional creators will
be supported through having the

In order to promote efforts madein fields where new growth isanticipated, run extensive
publicizing of regions and thedevelopment of promising regional
creators through having thecontents industry and different
fields work together, support wasoffered to video production andinternational expansion of contents
that leverages advanced technology
through forming a consortium

Technology
Minister of
Economy, Tradeand Industry

For tourism attractions featuring
cultural assets, 114 sites weredeveloped by December 2017 as aresult of supporting certification ofJapanese heritage sites anddevelopment of a basic plan forhistory and culture.
Furthermore, support was offeredby local public bodies that utilized
cultural and arts resources in the
project that is developing a culture
and arts creation utilization
platform. Support was also
provided to a project that develops
management personnel andfacilitators in colleges.

29

Minister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Economy, Tradeand Industry

contents, tourism andmanufacturing industries work
together.

between a contents production
company and regional tourism andsports operators in regional
revitalization projects and contents
global demand creation
infrastructure development
structure pertaining to advanced
contents technology.

(6) Revitalization of the service industries and productivity improvement
1) Progress in achieving KPIs
<KPI> Improve the increase rate of service industries’ labor productivity to 2.0% by 2020(2013: 0.8) [39]
 2016: 0.2% (2015: 1.3%)
2) Progress in implementing measures
Measures
Creating leading
companies thatwill drive up the
productivity ofservice industries

Description & timeline for
implementation
In order to create 10,000
growing companies nationwide
in which productivity growth
rates are around 10% by 2020,
measures such as the promotionof the Act for Facilitating New
Business Activities of Smalland Medium-sized Enterprises(Act No. 58 of 2016),
development of innovative
services, support towards
adopting IT and visualization ofservices will be promoted while
linking the measures together as
well.

Progress & status of
implementation
So far, measures such leveraging
IT based on guidelines by businessfield through certification of about
40,000 business improvement plansof enterprises based on the Act for
Facilitating New Business
Activities of Small andMedium-sized Enterprises (as ofNovember 2017), capital
investments on innovative service
developments for about 6,000 cases
through the Innovative
Manufacturing, Business andService Development Support
Project (second supplementarybudget project for FY2016), and
15,000 companies were supported
through the Service Productivity
Enhancement and IT Adoption
Support Project (second
supplementary budget project for
FY2016). In addition, about 37,000
companies were certified for the
Omotenashi Standard Certificationthat “visualizes” service quality (asof the end November 2017).

30

Minister inchargeMinister ofInternal Affairs
andCommunications
Minister of
Health, Labourand Welfare
Minister ofAgriculture,
Forestry and
Fisheries
Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourism(7) Promotion of regional investments toward the future, innovation of medium-sizedcompanies, SMEs and micro enterprises
1) Progress in achieving KPIs
<KPI> Increase the business entry rate to a level that exceeds the exit rate so that the entry
and exit rates are on a par with the figures in the U.S.A. and Great Britain (10-20%)[41]
Entry rate in FY2012: 4.6%  FY2016: 5.6%
Exit rate in FY2012: 3.8%  FY2016: 3.5%

<KPI> Increase the number of profiting SMEs and small-scale enterprises from 700,000 to
1.4 million by 2020 [42]
 FY2015: 923,037 companies (FY2014: 859,753 companies; FY2013: 805,979
companies)
2) Progress made in implementing measures
Description & timeline for
implementation
Creating businessIn order to promotethat lead theinvestments that contribute toregional
regional areas’ future andeconomy andestablish a virtuous “earning
have high ripple
power” system in regions,effects of thecompanies that lead the regional
regional
economy will be identified
economythrough RESAS, various
policies such as a new tax
system, subsidy system andderegulations in finance will be
combined to intensively support
businesses that lead regional
economies. Necessary
legislative measures will bepromptly taken to implement
them from FY2017.
Measures

Progress & status of
implementation
The Regional Future Investment
Promotion Act (the Act of Partial
Revision of the Act on Formation
and Development of Regional
Industrial Clusters throughPromotion of Establishment of New
Business Facilities, etc. (Act No. 47
of 2017) was approved in the 2017
ordinary session and enacted on
July 31, 2017. The government
approved 144 plans submitted from45 prefectures and relevant
municipalities as of December 2017
for the basic policies developed
based on this Act. Moreover, basedon the approved basic policies, 112
regional economy-leading projects
have been approved as of December
2017 (according to reports fromprefectures). 2,148 “companies thatlead the future of regions”
recommended from Big Data on
corporate information, local
governments, commerce andindustry organizations and otherorganizations and anticipated tolead the regional economy wereselected and announced in
December 2017.
Support measures for enterprises
working on regional
31

Minister inchargePrime Minister(Minister of State
for Regional
Revitalization,
Minister of State
for Financial
Services,
Minister of State
for Economic andFiscal Policy)
Minister ofInternal Affairs
andCommunications
Minister ofFinance
Minister of
Health, Labourand Welfare
Minister ofAgriculture,
Forestry and
Fisheries
Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andeconomy-leading projects will be a Tourism
combination and concentration of
measures including tax systems
that back capital expenditure,utilization of subsidies promoting
local vitalization, support towards
R&D, prototype development andsales channel development,
establishment and utilization offunds through the Regional
Economy Vitalization Corporationof Japan (REVIC), Organization for
Small & Medium Enterprises andRegional Innovation, etc. andexceptional measures.
Enhancingproductivity of
midranking
companies,
SMEs and microenterprises
throughleveraging IT andother measures

In order to further support the
productivity enhancement ofenterprises such as throughleveraging technology,
necessary measures, including
the revision of basic policies
and guidelines by businessfield, will be promptly madebased on follow-up measures
made to respective businessfields according to the Smalland Medium-sized Enterprises
Business Enhancement Act
enforced in July 2017.

Support on improving
productivity through IT utilizationand capital investments are offered
to enterprises certified for their
management capability
improvement plans based on the
Small and Medium-sizedEnterprises Business Enhancement
Act. Since the Act was enforced inJuly 2016, about 40,000 plans havebeen certified (as of November2017). Follow-up measures havebeen implemented according to theprogress made by business field in
the Small and Medium EnterpriseMore industries will be added
Policy Making Council andto the guideline by business
Structural Reform Complete
field and certification of
Promotion Assembly of the Future"management innovation
Investment Meeting. Discussions
support organizations" will bewill be made on necessary revisions
broadened. Productivity willbased on these efforts.
simultaneously be improved bylaunching promotional
The number of industries thatmeasures that will increase
have developed guidelines bycapital investments of SMEs to business field have increased to 17,
levels before the Lehman
and certified management
Brothers crisis. Furthermore,innovation support organizations bydiscussions will be made on
business field has increased to 14
frameworks for supportingorganizations (as of December
systems that will safely and2017). Incentives such as
stably incorporate IT
expanding the eligibility of capital
technology at low cost in order investments to equipment andto expand application, andbuilding fixtures in order tonecessary incentives will be
extensively support industries
implemented accordingly.
including service industries, as an
exceptional measure for fixed asset
32

Minister ofInternal Affairs
andCommunications
Minister ofFinance
Minister of
Health, Labourand Welfare
Minister ofAgriculture,
Forestry and
Fisheries
Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourismtax, in addition to mechanicalequipment that are frequently use in
the manufacturing industry, in the
FY2017 tax reform.
To further promote theapplication of IT, measures arebeing considered to visualize IT
tools that will lead to improved
productivity and improved IT
literacy among supporting
institutions by the Small andMedium Enterprise Policy Making
Council.
Promotion ofsmooth businesssuccession
throughestablishing aconsistent
support system

A system that willconsistently offer assistance toSMEs and micro enterprises,
ranging from raising awarenessto supporting growth after
business succession, will beestablished. For this reason,promotional measures forprompt and strategic businesssuccession, changes in thebusiness succession tax system,
strengthening of the BusinessSuccession Support Center,
further familiarization of theBusiness Succession Guideline
and enforcement of support
toward SMEs working on
management reform after
succeeding business will be
developed. At the same time,efforts will be made to establish
a cooperative framework
between regional SME support
institutions and financial
institutions and further
familiarize companies on the
Guideline Pertaining toBusiness Owner Guarantee.

As an incentive for early andstrategic business succession,cooperative systems comprising
supporting institutions such as local
governments, associations ofcommerce and industry, chamber ofcommerce and industry, andfinancial institutions from 19
prefectures are being establishedthrough the Business Succession
Network Establishment Project
implemented in FY2017.
The tax system pertaining tobusiness succession will be applied
drastic expansions, including theabolishment of the maximum
number of shares deferred as an
exceptional measure effective for10 years in the outline of the
FY2018 Tax System Reform.
The Business Succession
Support Center strengthened
function, including the increase of
specialists, to establish a systemcapable of matching 2,000 merger
matchings a year within 5 years.
To familiarize the BusinessSuccession Guideline among
companies, a supportive project forcompanies working on management
reform after business succession
such as conducting new capital
investments to improve
productivity was launched in
FY2017 and assisted 65 businesses.
33

Prime Minister(Minister of State
for Financial
Services)
Minister of
Economy, Tradeand Industry

The Small and Medium Enterprise
Agency and the Financial Services
Agency has strengthened ties for
the Guideline on Business Owner
Guarantee to familiarize andpromote utilization among bothfinancial institutions and businesses
through running publicity activities
such as sending direct mail andannouncing news on thegovernment official bulletin forbusinesses.
Strengthening offinancial
functions toestablish the“earning power”
of SMEs andmicro enterprises

Utmost attention is paid to
encourage local financial
institutions to offer even more
active support for better
management, productivity
enhancement and otherimprovements of SMEs andmicro enterprises withconsiderations to the
management environment, etc.
of businesses. At the same time,necessary measures will betaken according to the revision
plan indicated on the credit
guarantee system by the
Financial Working Group for
the Council for Small andMedium Enterprise Policy inDecember 2016.

Taking into account the proposal
submitted by the Financial Working
Group for the Council for Small andMedium Enterprise Policy on thecredit-guarantee system in
December 2016, a bill was
submitted to the Diet in February
2017, and the Partial Revision of
the Act on Small and Medium
Enterprise Credit Insurance toPromote Improvement and Growthof Business Management (Act No.
56 of 2017) was approved in June.
The steps to be implemented forthis purpose include: (1) Risk
sharing between credit guarantee
associations and financial
institutions (ensuring adequate
interim management andmanagement assistance based on
business assessment by financial
institutions through appropriate
combination of direct loans(without loan guarantee) and“guaranteed loans” by financial
institutions); (2) Revising theguarantee ratio from 100% to 80%
so that optimistic management
improvements will be encouraged
by financial institutions for safety
net guarantee for struggling
industries; (3) Development of a
new safety net guarantee systemthat can be set in motion quickly inthe event of a large-scale economiccrisis and disasters by setting theapplication deadline in advance;and (4) Expansion of support to34

Prime Minister(Minister of State
for Financial
Services)
Minister of
Economy, Tradeand Industry

micro enterprises during the vital
startup and sustainable growthphases, and fine-tuned response,
etc. to financial needs at the time ofbusiness succession, withdrawal orother transitions.
Measures after revisions,
including legislative measuresaccording to the Revised Act, arescheduled to be enforced on April 1,
2018.

(8) Realization of a manufacturing industry revolution
1) Progress in achieving KPIs
<KPI> Improve the labor productivity of the manufacturing industry by more than 2%
annually [49]
 Average growth rate for the last 3 years (2014-2016): 2.6%
2) Progress made in implementing measures
Measures
Promotion of
manufacturing
IoT[as shown inprevious section]

Description & timeline for
implementation
Efforts will be made to create
more than 50 advanced cases
for smart plants that utilize datacollected through sensors
between plants, plants and head
offices, between companies andbetween different organization
by 2020. Furthermore, toaccelerate these measures, asystem that certifies “super”
offices in the industrial security
field will roll out starting in
FY2017. Together with
progressing on reviews toward
identifying and creating
proposals for international
standardization and advanced
case studies by partnering withcountries such as Germany inbusiness reform andsmartification of the
manufacturing industry throughutilizing IoT and big data, steps
will be made to create andspread global IoT business

Progress & status of
Minister in
implementation
chargeIn order to create advanced case Minister ofstudies of smart plants that utilize
Economy, Tradedata collected from sensors among and Industry
different organization, support on
experimental business projects were
offered to 16 projects in FY2016
and FY2017, and about 210
advanced case studies werecollected by calling for applications
through the Robot Revolution
Initiative Council (RRI) and theMinistry of Economy, Trade andIndustry.
In terms of the industry safety
field, a system reform was enacted
for the High-Pressure Gas Safety
Act in April 2016. The “Super
Certification Office System” wasnewly established to provide
incentives such as flexibility infacility change procedures thatallow continual operation periods of
up to 8 years and liberty in setting
security inspection methods to35

Spreading of the
fourth industrial
revolution
throughpromoting IT androbots to
midranking
companies andSMEs[as shown inprevious section]

headed by Japanese companies
providing opportunities forbusiness-to-business
partnerships such as showcasing
innovative technology at the
CeBIT held in Germany in 2017
while taking the cooperationagreement between the summit
meeting between Japan andGermany into account.

offices that conduct sophisticatedrisk assessments and independent
maintenance using technology suchas IoT and big data. The firstcertification was made in December
2016.

In order to make progress
towards having midranking
companies and SMEs to
respond to the fourth industrial
revolution, the government will
steadily implement measures toreduce initial installation costsof small-sized, general-purpose
robot by more than 20% by
2020 and double the number of
personnel (system integrators)
who support the development
and incorporation of robot
systems to 30,000. Efforts toenforce the support system run
by experts and expand the
network of Smart Production
Support Teams that assist in
improving production sites andincorporating IoT and robots
will be made while
collaborating with SME

The Government is making
Minister ofdevelopments in the Robot
Economy, Tradeand Industry
Utilization-Type
Commercialization and Application
Technology Development Project tolaunch in the market by the end of
FY2020 and working to cut initialinstallation costs of small-sized,
general-purpose robots by morethan 20% by 2020. In addition, it isworking to implement system
integrator projects to encourage
robot usage and develop a businessenvironment for robot system
integrators through developing skill
and process standards prior to
doubling the number of system
integrators. As a result, the numberof system integrators increased
from about 15,000 (April 2016) toabout 22,000 (December 2017).

At the CeBIT held in Germany inMarch 2017 that showcases
information communication
technology, the Government
demonstrated the Connected
Industries concept as its ideal visionof the industry and came toministerial-level agreements on the
Hanover Declaration that willfurther deepen cooperative ties. In
terms of international
standardization and the security
field, an expert working groupbetween Germany and Japan washeld at RRI. There, a common
strategy paper was that described
points of examination andupcoming collaborative policies
between the countries. RRI has
publicized an online use case mapthat shares IoT case studies fromJapan, Germany and France.

36

supporting institutions in orderto support more than 10,000
midranking companies and
SMEs in IT and robot
installations by FY2017.

In terms of the goal to support
more than 10,000 midranking
companies and SMEs in IT androbot installations by FY2017,assistance to more than 17,000
companies were offered between
FY 2016 through November 2017
through sending IT experts andoffering consultation in Yorozu
Support Centers. The Nationwide
Liaison Conference for Smart
Production Support Institutions w ill
be held on December 2017, andtogether with strengthening
cooperation with the support systemcomprising experts, the Smart
Production Support Team expanded
to 25 locations in FY2017 (from 5
locations in FY2016). More experts
will be available for service startingfrom FY2018.

(9) Revitalization of the housing market with a focus on the existing housing distribution andrenovation markets
1) Progress in achieving KPIs
<KPI> Double the existing housing distribution market scale to ¥8 trillion by 2025 *As
possible by 2020 [52]2010: ¥4 trillion  2013: ¥4 trillion<KPI> Double the renovation market scale to ¥12 trillion by 2025 *As possible by 2020 [53]2010: ¥6 trillion  2013: ¥7 trillion
2) Progress made in implementing measures
Measures
Formation of an
existing housing
distribution
marketpossessing both
quality andappealDescription & timeline for
implementation
A “Premium Existing
Housing (tentative name)”registration system thatpossesses both quality andappeal as products will beestablished by the end of
FY2016.

Progress & status of
implementation
The “Safety R Housing” system
in which a trade association
provides emblems under the
involvement of the government forexisting housing equipped withquality such as earthquake
resistance and underwent adequate
inspections (building condition
investigation, etc.) and offers
appropriate information onrenovations that tailor to consumer
needs was implemented on
37

Minister inchargeMinister of Land,
Infrastructure,
Transport andTourism

December 1, 2017.
Reduction of bad
Systems necessary toassets andpromote inheritance registration
promotion of new will be developed in early 2017
investments
in order to facilitate theidentification of the owner forvacant houses and move on to
exclusions and reconstruction.

The new Legal Inheritance
Information Certification System,
established to promote inheritanceregistration, have been effective
starting May 2017.

Minister ofJustice

Spreading andpromotion of
next-generation
housesVarious issues will beidentified by the end of FY2016
on advanced next-generation
houses. Business environments
to create new housing lifestyleservices will be worked on
based on the results.

A Discussion Session on
Next-Generation Houses Using IoT
Technology and Conference on the
Promotion of IoT and Big Data
Utilization on Housing were held
during FY2016 to identify issues inproviding next-generation houses
and housing lifestyle services thatutilize big data. Based on the
results, support towards
demonstrative projects aimed tocommercialize IoT-backed housing
lifestyle services and thedevelopment of rules that serve as afoundation of linking
lifestyle-related informationacquired through experimental
business project have been inprogress since FY2017.

Minister of
Economy, Tradeand Industry

Reduction of
housing costs foryoung andchild-rearing
households
through utilizing
existing houses

In order to establish a newframework that utilizes existing
private rental housing that isvacant so that young andchild-rearing households canlive affordably in houses withadequate quality and space,necessary legislative measures
will be promptly implemented
together with necessary support
measures.

The Act on Promotion ofOffering of Rental Housing to
Persons Requiring Special
Assistance in Securing Housing(Act No. 112 of 2007) was amended(promulgated April 26, 2017,
enforced October 25, 2017) so that a
new housing safety network thatincorporates a housing registration
system for persons requiring special
assistance in securing housing andfinancial assistance for renovations
and housing fees are offeredthrough utilizing private rental
housing and vacant homes.

Minister of Land,
Infrastructure,
Transport andTourism

38

Minister of Land,
Infrastructure,
Transport andTourism

(10) Overcoming environmental/energy limitations and increasing investments
1) Progress in achieving KPIs
<KPI> Legal separation between electricity generation business and transmission anddistribution business, the final phase of the electricity system reform, will be
executed on April 1, 2020 [55]
 The Act to Revise the Electricity Business Act which included legal separation
between electricity generation business and transmission and distribution business
was enacted on June 17, 2015, and the electricity retail market was fully liberated in
April 2016.
2) Progress made in implementing measures
Description & timeline for
implementation
Reforming theNecessary measures will beelectricity system taken toward the legal
separation between electricity
transmission and distribution
business to be executed in April
2020 and deregulation of retailrates to be put into action
thereafter.

Progress & status of
implementation
Some operators separated
electricity transmission anddistribution businesses in April
2016.

Reforming thegas system

Necessary measures will betaken towards the full
liberalization of the gas retailmarket scheduled in April 2017and legal unbundling of pipeline
sector departments in the top
three town gas companies
scheduled in April 2022.

The gas retail market was fully
Minister ofliberated in April 2017. Uniform
Economy, Tradeand Industry
reforms in the electricity, gas andheat supply fields will continue tobe promoted steadily along the Act
to Revise the Electricity BusinessAct (Act No. 47 of 2017) enacted inJune 2015.

Review of
feed-in tariff

Necessary measures toincorporate the newcertification system and bidding
system for large-scale solar
power generation included in
the Act on Special Measures
Concerning Procurement ofElectricity from Renewable
Energy Sources by Electricity
Utilities (Act No. 59 of 2016) to
be enacted in April 2017 will bepromptly adopted.

As a result of developing relevant Minister ofgovernmental and ministerial
Economy, Tradeand Industry
ordinances pertaining to the newcertification system andimplementing bidding guidelines
toward the incorporation of thebidding system for large-scale solar
power generation, the Act on
Special Measures Concerning
Procurement of Electricity from
Renewable Energy Sources byElectricity Utilities (Act No. 59 of
2016) was enforced on April 1,
2017.

Mandatory
requirements to

Workshops will be taken to
The regulatory measure portion
publicize the system prior to the of the Act on Improvement of

Measures

Minister inchargeMinister of
Economy, Tradeand Industry

Discussions on evaluation
criteria for the deregulation of retailrates will start in the expert
committee.

39

Minister of
Economy, Tradecomply withsteady enactment of theenergy-saving
regulatory measure portion
standards for new (system on complianceresidential
obligations and compliancehousing anddetermination, notification andbuildings
instruction system, ministerial
approval system, residential
Top Runner system, etc.) of the
Act on Improvement of Energy
Consumption Performance of
Buildings (Act No. 53 of 2015).

Energy Consumption Performanceof Buildings was enforced on April
1, 2017. Workshops and other steps
will continue to be taken to
publicize the system.

and Industry

Complete energy
efficiency
throughdeveloping
energyefficiency
potential

Based on a report by the
Subcommittee on Energy
Conservation under theAdvisory Committee for
Natural Resources and Energy,
legislative and budgetarymeasures will be promptly
adopted to (1) Strengthen
incentives for energy
conservation measures forindividual operators, (2)Promote cooperative energy
conservation measures for
multiple operators andcorporate groups, and (3)Utilize energy conservation
businesses run by third parties(in particular, the rationalizationof shipper regulations that are
divergent from actual
conditions following diversified
commercial transactions) inorder to simultaneously achieve
economic growth and complete
energy conservation.

For the points of discussion
mentioned, the Subcommittee on
Energy Efficiency under theAdvisory Committee for Natural
Resources and Energy continued
reviews in FY2017 and compiled a
proposal (opinions as the
Subcommittee on Energy
Conservation) on August 4, 2017.
Requests for budgetary
appropriations and taxation reform
requests in FY2018 were madewhile also taking the proposal into
account were made, and therequired support and taxation
measures were approved.
Discussions on materializing
relevant law and regulations are
currently in progress.

Minister of
Economy, Tradeand Industry

Review ofexport/importmanagement
systems for
specifiedhazardous
industrial waste

Based on the report submitted
by the Joint Meeting of the
Hazardous Industrial Waste
Trans-border Transportation
Working Group of the Industrial
Waste/Recycling Subcommitteeof the Industrial Technology
Environment Subgroup of theIndustrial Structure Council andthe Advisory Committee on the
Export and Import Regulationsof Specified Hazardous
Industrial Waste of theBased on the report by the Joint
Meeting, the Partial Revision of the
Law for the Control of Export,
Import and Others of Specified
Hazardous Wastes and Other
Wastes (Act No. 62 of 2017) that
include the clarification of
applicable objects and establishes acertification system for recycling
enterprises was passed andpromulgated in June 2017. Relevant
ordinances were promulgated in
January 2018, and relevant

Minister of
Economy, Tradeand Industry

40

Minister of Land,
Infrastructure,
Transport andTourism

Minister of theEnvironment

Recycling-Oriented Society
ministerial ordinances are currently
being developed.
Subgroup for the Central
Environment Council,
necessary legislative measures
will promptly be implemented
on the management of exports
and imports of specified
hazardous industrial waste
according to risks posed toward
environmental contamination,etc.

(11) Strengthening the competitiveness of cities and industrial infrastructure functions
1) Progress in achieving KPIs
<KPI> Tokyo will be ranked among the top three cities in the Global Power City Index by2020 [77]2012: Ranked 4th  2017: Ranked 3rd2) Progress made in implementing measures
Measures
Strengthen
competitivenessof cities

Description & timeline for
implementation
Necessary legislative
measures will be taken on the
Act on Specified Joint Real
Estate Ventures (Act No. 77 of
1994) to promote the restorationof idle real estate such as vacant
homes and stores by utilizing
cloud funding and othermethods.

Progress & status of
Minister in
implementation
chargePartial revisions of the Act on
Minister of Land,
Specified Joint Real Estate Ventures Infrastructure and(Act No. 46 of 2017) that focus on Transport(1) Establishing small-scalespecified joint real estate ventures,(2) Developing an environment
compatible with cloud funding, and(3) Amending regulations topromote quality real estate stock
were promulgated on June 2, 2017
and enacted on December 1, 2017.
The revision aims to restore vacant
homes and stores by utilizing
small-lot investments, revitalize
local economies and promote
quality real estate stocks in thegrowth areas.

(12) Consumer confidence incentives through public-private partnership
1) Progress in achieving KPIs
* None412) Progress made in implementing measures
Measures
Consumerconfidence
incentive
throughpublic-private
partnership

Description & timeline for
implementation
As an incentive to boost
consumer confidence throughpublic-private partnership, the“Premium Friday” incentive
themed to enrich lifestyles will
start from the end of February
2017.

Progress & status of
implementation
Premium Friday started from theend of February 2017 under theleadership of the Premium Friday
Promotion Council formed throughpublic-private partnership.

Minister inchargeMinister of
Economy, Tradeand Industry

For nationwide implementationof this incentive, the second
In doing so, the Premium
supplementary budget for FY2016
Friday Promotion Council
was used in publicity efforts,
composed of economic
including events in 11 locationsorganizations from retail, travel throughout Japan, and production ofand other industries and thethe Premium Friday logo, website,
Ministry of Economy, Trade and posters and newspaper
Industry will lead the efforts.
advertisements. These efforts werecovered in various media and
The second supplementary
contributed to spreading thebudget for FY2016 will also be
incentive.
utilized for publicity of thesemeasures in anticipation of
In terms of work reform, requests
progressing work reform andwere made through economic
stopping deflation trends.
organizations on the promotion offlexible work styles from
implementing Premium Friday.
Through these efforts, therecognition rate of Premium Friday
has reached about 90% after thenumber of applications for the logo
exceeded 8,000 (as of the end of
December 2017). On the other
hand, only a little more than 10% of
workers were able to leave work
earlier than usual on Premium
Friday.

2. Issues pertaining to regulations and system reforms toward achieving productivity
innovation(1) Incorporation of new regulation and system innovation mechanisms
1) Progress in achieving KPIs
<KPI> Japan climbs to one of the top three countries in the World Bank’s Doing Business
Ranking by 2020 [81]
 24th as of October 2017 (up two ranks from the previous year)422) Progress made in implementing measures
Description & timeline for
implementation
Incorporation of  With the goal to make Japan
new regulation“the world's easiest country
and systemfor companies to do businessreform methods
in,” new regulation andthat promote
system reform methods that
simplification
uniformly promoteofregulatory reform,
administrative
simplification ofprocedures andadministrative procedures
IT application
and IT application will beincorporated to actively
enhance the businessproductivity in order toachieve an “economy with
GDP of ¥600 trillion.”
Measures that will reduce
regulatory and administrative
costs from the companies’
perspectives will besystematically implemented
with specific targets set.
After considering
prospective methods
pertaining to reducing costs
for regulations andprocedures as well as ways to
set targets and investigating
on methods incorporated byother countries while taking
into account the progress ofpreceding measures on
simplifying regulations andadministrative procedures onfields related to andunrelated to investmentsfrom international companies
toward Japan, key fields thatshould be worked on forregulatory reform,
simplification ofadministrative proceduresand IT application will be
extensively chosen and cost
reduction targets forregulations andadministrative procedures
will be decided by around the
MeasuresProgress & status of
implementation
An emergency report on fields
pertaining to investments
made toward Japan byinternational companies wascompiled in the Working
Group on Reviewing
Regulations andAdministrative Procedures in
the Promotion Committee for
Direct Investments Toward
Japan (December 2016).



For measures other than theabove that can be implemented
in advance, applicablemeasures were chosen in the
Structural Reform Complete
Promotion Assembly(December 2016) and reported
to the Council on Investments
for the Future (January 2017).



Based on the progress of
implementing these measures,
the Administrative Procedures
Committee of the Regulation
Reform Promotion Meetingcompiled “Compilation by the
Administrative Procedures
Committee: Reducing Costs
for Administrative
Procedures.”In the Compilation by the
Administrative Procedures
Committee, nine key fields(Procedures pertaining to (1)Business license andcertification, (2) Social
insurance, (3) National tax, (4)Local taxes, (5) Subsidies, (6)Cooperation in surveys andstatistics, (7) Labor
management of employees, (8)Commercial registration, etc.,(9) Issuance of
documentations based onclaims from employees) werechosen, and the target for cost

43

Minister in charge
Prime Minister(Minister incharge ofregulation reform)

end of FY2017 tosystematically work on themeasures.

reduction in administrative
procedures (more than 20% inprinciple) was decided. The
Regulation Reform Promotion
Meeting also approved, and
the Prime Minister instructed
relevant ministries andagencies to work on
developing measures (March2017).

(2) System reforms oriented toward investments for the future2-1. Promoting “an aggressive management” approach
1) Progress in achieving primary KPI targets<KPI> “Achieve a goal to expand capital investments to approximately 80 trillion yen perannum within three years (by FY2018)”[80] FY2016: 82.6 trillion yen* We have changed the previous KPI target this time (the previous KPI target had been
to restore to the level prior to the Lehman Brothers Shock by FY2015 (approx. 70
trillion yen per annum or the five-year average ending 2007)).
2) Progress in implementing primary policy goals
PolicyPolicyresponse
pursuant todiscussions at
the Follow-up
Council

Policy Details and Implementation
Deadline
Japan’s Stewardship Code will
be revised before the generalshareholders’ meeting season in
the summer of 2017 so that
institutional investors (asset
management institutions andpension fund, etc. asset owners)
can effectively fulfill theirstewardship responsibilities and topromote “a constructive dialog”
with corporations from a
medium-to long-term perspective
pursuant to the opinion paper
presented at the “Follow-up
Council on the Stewardship Codeand the Corporate GovernanceCode” (titled “On the Question of
Effective Stewardship Activities
by Institutional Investors,”
released in November 2016) where
the Financial Services Agency and
the Tokyo Stock Exchange acted in

Progress and Implementation
StatusJapan’s Stewardship Code wasrevised in May 2017 whereingovernance and conflict-of-interest
management on the part ofinstitutional investors wererequired to be strengthened, etc.
and the role of asset owners such aspension funds was clarified.
The Financial Services Agency
and the Tokyo Stock Exchange
have also held “Follow-up Council
on the Stewardship Code and the
Corporate Governance Code” from
October 2017 where the progressstatus of corporate governancereforms was verified, andconsiderations are being made toformulate guidances which will be
used for dialogs between investors
and corporations.

44

Responsible
MinisterPrime Minister(Minister of State
for Financial
Services);
Minister ofJustice; Ministerof Economy,
Trade andIndustry

tandem as secretariats toward
deepening corporate governancereforms from “form” to“substance.”
Strengthening
the monitoring
function of theboard ofdirectors

To ensure that thedecision-making speed ismaintained by entrusting thedecision-making authority
concerning business operations to
the management team led by the
CEO and to address corporateneeds concerned with thegovernance system where theboard of directors decide primarily
on management strategies or
performance evaluation matters,
guidelines and specific examples
with respect to the board of
directors’ role and operatingprocedures, the CEO’s selection
and dismissal or succession plans,
the implementation of
incentive-based forms ofcompensation, and the practicalworkings, etc. of a nominating orcompensation committee shall be
prepared by the end of FY2016.

A report was compiled in March2017 at the “CGS Study Group(Corporate Governance System
Study Group)” created within the
Ministry of Economy, Trade andIndustry, which incorporated
suggestions with respect to efforts
to construct and implement a
corporate governance considered
to be meaningful in strengthening a
corporation’s “earning power.”
Based on the said report, the“Practical Guideline (CGS
Guideline) Regarding the
Corporate Governance System”
was formulated in March 2017 by
the Ministry of Economy, Tradeand Industry as a practicalguideline addressing the questions
as to how the board of directors
should function, how the
management team should beselected and how they should becompensated (including the CEO’s
selection or dismissal and how a
successor is to be groomed for the
CEO position, as well as theimplementation of incentive-based
forms of compensation), and how
the management team’s leadershipcan be strengthened, etc.
In addition, based also on
recommendations offered in thesaid guideline, the Tokyo Stock
Exchange revised the written
procedures regarding the report on
corporate governance in August
2017 to include the name, position
or rank, work contents, etc. of thecounselor or adviser to which theoutgoing president or CEO has
been appointed as items to bedisclosed in the said report (thesaid revised written procedures areapplicable in the said report
45

Prime Minister(Minister of State
for Financial
Services);
Minister ofJustice; Ministerof Economy,
Trade andIndustrysubmitted after January 1, 2018).
Achieving aninteractive
shareholders’meeting
process

Pursuant to recommendations of
Beginning in April 2017,
the “Study Group on thediscussions were held at thePromotion of Electronic Means for Legislative Advisory Council’s
the Process of GeneralCompany Law Subcommittee
Shareholders’ Meetings” compiled (corporate governance,in April 2016, with respect toetc.-related) with respect toproviding documents attached toproviding attachments onto a
the notice to convene a
notice to convene a shareholders’shareholders’ meeting, we have set meeting to expand the scope ofa goal to review the law andinformation provided
regulations of the Companies Act electronically in lieu of paperin the early part of 2017 to expand documents and, in principle, tothe scope of information provided provide such informationelectronically in lieu of documents electronically without obtaining
and, in principle, to provide such individual consent from theinformation electronically without shareholders.
obtaining individual approvals
Follow-up meetings to thefrom the shareholders.
“Study Group on the Promotion of
Also, with respect to theElectronic Means for the Process
digitization of the entireof General Shareholders’shareholders’ meeting voting
Meetings” were also held fromprocess or the date of record by
February 2017 to March 2017 atwhich the voting rights can be
the Ministry of Economy, Trade
exercised, meetings shall be held
and Industry where follow-ups
before the end of FY2016 towere conducted on the use ofconfirm to what extent progresselectronic means for the entire
has been made by the relevant
shareholders’ meeting voting
persons or relevant groups, etc.
process and on the status of
towards raising the quality of the progress made by relevant persons
exercise of rights by providing for or relevant groups, etc. toward
time whereby shareholders cansetting an appropriate
consider the agenda and engage in shareholders’ meeting-related
a dialog regarding (1) the exercise schedule.
of voting rights in a one-stop
In addition, to encourage moremanner, (2) the coordination
flexibility in setting dates for whenbetween platforms with respect toshareholders’ meetings areelectronically exercising one’s
convened so as to promote a better
voting rights, (3) the question of
dialog between corporations andappropriate and uninterrupted
investors, the Bill for Partial
procedures used for the said
Amendment of the Income Tax
platforms, and (4) the question ofAct, etc. (Act No. 4 of 2017) was
practicalities surrounding
passed at the 2017 ordinary session
changing the date of record.
of the Diet in which, among otherIn addition, pursuant to thethings, the extension of thedecision to revise the filing
corporate tax return filing deadline
deadline for corporate taxes, we
was allowed provided certain
will adopt necessary legislativerequirements were satisfied withmeasures with respect to therespect to corporations which
46

Prime Minister(Minister of State
for Financial
Services);
Minister ofJustice; Ministerof Economy,
Trade andIndustry

FY2017 Tax Reform so that theconvene their annual shareholders’dates when shareholders’ meetings meeting more than three months
are held can be flexibly decided.
from the next day their businessyear ended.
Promotinglong-term
investments,
etc towardsustainablegrowthOn the question of corporate
management and investments(ESG and investments inintangible assets, etc.) that will
generate sustainable corporate
value and how this should beassessed, we will pursue avenues
for a system of governance thatwould encourage the optimizationof investments in human capital,
intellectual capital andmanufacturing capital, etc. basedon a long-term management
strategy. We will also seek
solutions on the question of
investment decisions on the part ofmanagement and how investors
should evaluate those decisions, aswell as how information could best
be provided. We will offer ourconclusion as to how to encouragea policy that will address the
optimization of investments, etc.
by the end of FY2016.

A study was conducted at the“Study Group on Long-term
Investments (Investment
evaluating ESG Factors andIntangible Assets) toward
Sustainable Growth” which wasformed in August 2016 within the
Ministry of Economy, Trade andIndustry. The study groupconcluded that a guidance should
be formulated as a policy responseto raise the quality of information
disclosed by corporations and thequality of dialog with investors. As
a result, the “Guidance on aComprehensive Disclosure andDialog for the Collaborative
Creation of Value – Investment in
ESG Factors or Non-financial
Information and Intangible Assets– (Guidance for Collaborative
Value Creation)” was established.
In addition, the “Ito Report 2.0,” asystematic guide regarding
investment in ESG factors andintangible assets, was compiled asa report by the study group in
October 2017, which included a
recommendation to create, etc. aplatform to promote thecomprehensive disclosure ofcorporate information andencourage a better dialog withinvestors.

Prime Minister(Minister of State
for Financial
Services);
Minister of
Economy, Tradeand Industry;
Ministry of theEnvironment

Improvingthe
effectivenessand efficiency
of corporate
information
disclosure, etc

We have set as our objective toprepare the groundwork by the
first-half of 2019 to achieve themost effective and efficient
disclosure based on international
standards and to establish arational way of setting a scheduleand date of record forshareholders’ meetings.

With respect to the integrated
disclosure of business reports, etc.
and the annual securities reports,
we have asked the relevant
government offices and ministries
to participate with corporations,etc. in a study. Subsequently, areport was issued on the status of
the study on March 10, 2017 at the“Council on Investments for the
Future - Meetings to Aggressively

Prime Minister(Minister of State
for Financial
Services);
Minister ofJustice; Ministerof Economy,
Trade andIndustry

Accordingly, we will conduct
the following comprehensive

47

studies and proceed with thefollowing efforts:
With respect to the question of a
way to integrate the disclosure ofbusiness reports, etc. and annual
securities reports, as well as how
to handle the related summary ofaccounts or the audit reports, wewill ask the relevant ministries andagencies, etc. to participate withcorporations, etc. in a study of how
we should approach the idea of an
integrated disclosure and, should
there be disclosure items that canbe further shared, we will ask themto submit their conclusion
regarding specific ways to sharesuch disclosure items in FY2016.
With respect to quarterly
disclosures, we will study thecontents of the Tokyo Stock
Exchange’s revision to thesummary of accounts, as well as its
impact and assessment or analysis
of its effectiveness and consider if
any necessary improvements canbe made going forward.
From the perspective ofensuring sufficient time forinvestors to consider the agendas
presented and to promote a dialog
between investors and thecorporation, we will continue toprepare a comprehensive
groundwork for corporations toestablish an appropriate andrational way of setting a scheduleand date of record forshareholders’ meetings by
allowing sufficient time necessary
for corporations to prepare an
integrated report after they haveclosed their accounts at the end of
their accounting period and toensure that sufficient time isallowed for disclosure of the said
integrated report prior to theshareholders’ meeting.

Propel Structural Reforms.”
Pursuant to discussions held at thesaid council, the relevant
government offices and ministries
reached a preliminary conclusion
regarding disclosure items that canbe further standardized and acourse of action toward
standardization. Subsequently,
further studies were continued at
the relevant government offices
and ministries and a completed
draft was announced in December
2017 which incorporated
disclosure items that could readily
be standardized as well as details,
etc. with respect to specificmeasures to be taken.
With respect to the summary ofaccounts, revisions were made in
February 2017 to allow for more
flexibility and to place emphasis on
its role as a “flash report.”
Diversity in the disclosure of
performance estimates was also
supported. As for quarterly
disclosures, we are analyzing theimpact and effect of the said
revisions.
With respect to preparing the
groundwork for establishing arational and appropriate way ofsetting a schedule and the date ofrecord for shareholders’ meetings,
follow-up meetings to the “Study
Group on the Promotion ofElectronic Means for the Processof General Shareholders’Meetings” was held from February
to March of 2017 where follow-ups
were conducted on the use ofelectronic means for the entire
voting process and on the status of
relevant persons and relevantgroups, etc. in their efforts toestablish an appropriate
shareholders’ meeting-relatedschedule. In addition, in order toencourage more flexibility insetting dates for when48

shareholders’ meetings areconvened so as to promote a better
dialog between corporations andinvestors, the Bill for Partial
Amendment of the Income Tax
Act, etc. was passed at the 2017
ordinary session of the Diet inwhich, among other things,
allowed for the extension of thecorporate tax return filing deadline
provided certain requirements weresatisfied with respect tocorporations convening theirannual shareholders’ meeting morethan three months from the next
day their business year ended.
[Aforementioned]

2-2. Realizing a vibrant financial and capital market
1) Progress in achieving primary KPI targets* No reference is made2) Progress in implementing primary policy goals
PolicyLaying the
groundworkfor promotingtherebalancing ofhouseholdportfolios andinvestment
education

Policy Details and Implementation
Deadline
In the FY2017 Tax Reforms, we
decided to newly create theinstallment-type NISA program topromote savings and diversified
investments starting in small
amounts from the perspective of
supporting a stable way ofaccumulating wealth on the part ofhouseholds. We will proceed with
the necessary preparations,
including legislative reforms, tointroduce the installment-type
NISA program in 2018 and to also
promote education in the practicalart of investing.

Progress and Implementation
StatusThe Bill for Partial Amendmentof the Income Tax Act, etc. waspassed at the 2017 ordinary sessionof the Diet which, among otherthings, included the introduction of
the installment-type NISA
program. Furthermore, anotification was issued setting
forth the requirements related to
products permitted under the
installment-type NISA program.
Applications to open an
installment-type NISA accountwere accepted in October 2017 andpurchases from theinstallment-type NISA accounts
were commenced in January 2018.
With respect to education in thepractical art of investing, an “Easyto Understand Guidebook on
Installment-Type NISA” was49

Responsible
MinisterPrime Minister(Minister of State
for Financial
Services)prepared in September 2017 as aninvestment teaching aid forinvestment beginners to be used atfinancial institutions, etc. acrossthe country.
A strong
emphasis on
fiduciary
dutiesPursuant to a report by the
Financial System Council’s
Working Group, the Financial
Services Agency will establish andannounce the “principle ofbusiness operations focused firstand foremost on the customer” andto ensure that financial business
operators do not address the issue
in form only, efforts will be madeto establish and secure business
operations focused first andforemost on the customer.

Pursuant to a report by the
Financial System Council’s
Working Group, the Financial
Services Agency formulated the“principle of business operations
focused first and foremost on thecustomer” in March 2017 and has
been announcing a list of
businesses offering financial
services which have adopted thisprinciple on the Financial Services
Agency’s website on a quarterly
basis. In addition to the principle,
the FSA has also announced
policies directed toward ensuringthat the principle remains
established. Among those policies,
for the purpose of objectively
evaluating and “visualizing” theextent to which business
operations have focused first andforemost on the customer, the FSA
has indicated that it would be
effective if businesses offering
financial services could
incorporate specific key
performance indicators (KPIs)
when they formulate and announce
their policy efforts toward
establishing a business operation
focused first and foremost on thecustomer.

Prime Minister(Minister of State
for Financial
Services)

Ensuring thefairness,transparency,
and stability ofthe market

As the impact of high-speedtransactions increases in Japan’s
securities market, pursuant to areport by the Financial System
Council’s Working Group,
necessary legislative measureswith respect to high-speedtransactions will be promptly
adopted from the perspective ofensuring the fairness, transparency,
and stability of the market.

The Bill for Partial Amendmentof the Financial Instruments andExchange Act (Act No. 37 of 2017)
was passed at the 2017 ordinary
session of the Diet in which needed
measure were adopted for persons
conducting high-speed stock, etc.
transactions, including the
introduction of a registration
system. A Cabinet Order and a
Cabinet Office Ordinance, etc. inconnection with the enforcement ofPrime Minister(Minister of State
for Financial
Services)50

the Act were also promulgated in
December 2017.
Strengthening
coordination,etc. for the
purpose of
making Tokyo
into aninternational
financialcenterPursuant to a report issued by
the “Meeting to Discuss the
Attraction of Foreign Financial
Companies,” which wasestablished in Tokyo, measures
will be promptly adopted to create
an English guidebook etc.
describing how to open a businessin Japan oriented toward attracting
asset management businesses and
FinTech companies. In addition, apoint of contact will be establishedin the Financial Services Agency
for inquiries from and to respond toforeign asset management
institutions that are considering
opening a business site in Japan.

In addition to Tokyo’s
publication of an English
guidebook in September 2017,
which clarifies the necessary
procedures for foreign asset
management businesses wishing to
expand their business in Japan,
various steps were taken toward
attracting foreign financial
businesses. Moreover, the “‘Global
Financial City Tokyo’ Plan” wascreated in November 2017 whichcontained recommendations
regarding further coordinatedefforts that should be made by
relevant parties oriented toward
establishing Tokyo as a global
financial city.

Prime Minister(Minister of State
for Financial
Services)

The Financial Services Agency
also created a “Financial Market
Entry Consultation Desk” in April
2017 to accept inquiries for advice
from foreign financial businesses
regarding financial legal
procedures, etc. on opening abusiness site in Japan. In August
2017, the FSA successfully
shortened the registration
procedures under the business lawthat would have normally required
approximately six months from thetime of preliminary consultations
to completion to around threemonths. The FSA also completed
the editorial supervision of theabove English guidebook.
Promotingfinancial
innovation via
FinTechThe government and private
sector will cooperate through the“Payments Council on Financial
Innovation” to follow-up andensure the steady implementationof matters such as, a financial EDI
standard as remittances between
corporations transition to an XML
messaging format, offering
low-cost, non-urgent international
remittance services (low-value

The “Payments Council on
Financial Innovation” was held in
June and December of 2017
whereby they confirmed thatsteady progress has been madewith respect to issues under review
and exchanged views as to its
future course of action.

51

Prime Minister(Minister of State
for Financial
Services)remittances), releasing to the
public the banking system’s API(connection port), and addressing
issues for review, etc. regarding theutilization of blockchain
technology.
Aninstitutional
response to thedevelopmentof FinTech

Necessary measures, such as
Governmental and ministerial
providing for Cabinet Orders and ordinances were prepared by the
Cabinet Office Ordinances, will be relevant government offices andpromptly adopted for theministries and executed in April
uninterrupted execution of the Bill 2017 in connection with the Billfor Partial Amendment of thefor Partial Amendment of the
Banking Act, etc. (Act No. 62 of
Banking Act, etc. which was2016) which is a response topassed at the 2016 ordinary session
changes brought about byof the Diet as a response to changes
advances, etc. in information and brought about by advances, etc. intelecommunications technology.
information andPursuant to a report by thetelecommunications technology. In
Financial System Council’s
addition, the Bill for Partial
Working Group in December 2016, Amendment of the Banking Act,
necessary legislative measures will etc. (Act No. 49 of 2017) was
be promptly adopted with respect passed from the perspective ofto electronic clearing agents, etc., developing open innovation
who stand between the financial
between the financial institutions
institution and the customer andand FinTech corporations while
who offer account management or securing user protection, andelectronic remittance, etc. services which adopted necessary
on behalf of the customers, frommeasures, including thethe perspective of promoting open registration system for electronic
innovation (innovation throughclearing agents, and mandated thatcoordination and cooperation with financial institutions formulate andoutside parties) between theannounce standards regarding theirfinancial institutions and FinTech policy for coordination andcorporations while securing user
cooperation between electronic
protection.
clearing agents as well as mattersconcerning interface with thefinancial institutions.

Prime Minister(Minister of State
for Financial
Services)

Promoting acashlesssociety

Necessary measures will bepromptly adopted, such as
preparing governmental andministerial ordinances, for theuninterrupted execution of the Billfor Partial Amendment of the
Installment Sales Act (Act No. 99
of 2016) which incorporates aregistration system for member
store acquirers, etc., mandating
acquirers, etc. to survey, etc. themember stores, as well as

Minister of
Economy, Tradeand Industry

Governmental and ministerial
ordinances were prepared for thefull execution in June 2018 of theBill for Partial Amendment of the
Installment Sales Act which waspromulgated in December 2017.

52

mandating, etc. security measuresby the member stores with respect
to credit card transactions.

2-3. Private sector access to public services and assets (expanded utilization, etc. of PPP/PFI)
1) Progress in achieving primary KPI targets<KPI> “Expand the PPP/PFI project size to 21 trillion yen over the next ten years (from
FY2013 to FY2022). Of this, the objective for the PFI projects using the concession
system for public facilities, etc. will be set at 7 trillion yen.” [83]
 PPP/PFI project size from FY2013-2016 (actual values confirmed as of December
2017)
 PPP/PFI projects: approx. 10.8 trillion yen
 PFI projects using the concession system for public facilities, etc.: approx. 5.6 trillion yen

2) Progress in implementing primary policy goals
Policy Details and
Implementation Deadline
Policies that
Allow access to restricted areas
should be
for customers, etc. seeing
adopted in areas passengers off, premised onthat will address ensuring safety.
growthProgress and Implementation
StatusWe are in the process of studying
and listening to the opinions of
persons concerned about the issue
of introducing a mechanism
whereby persons other thanpassengers can enter the security
zone for domestic flights, premisedon attention to safety.

Responsible
Minister
Minister of Land,
Infrastructure,
Transport andTourism

Laws and regulations will berevised in FY2016 to allow
operators of public facilities, etc.
to freely lease their facilities totenants without the double
application of the public-private
partnership system when theconcession system for public
facilities is used for educational
facilities or passenger terminals,
etc. for cruise ships.

On March 31, 2017 the“Guideline on the Concession of
Public Facilities, etc. and theConcession Project for Public
Facilities, etc.” was revised toclarify that it was permissible toallow designated third-parties to
use the facilities without having the
public facility, etc. operator use it
in combination with the
public-private partnership systemby (1) leasing the facility inquestion to the public facility, etc.
operator after changing the said
facility into a non-administrative
property; and (2) leasing an
administrative property to the
public facility, etc. operator (onlywhen offering usage of the facility
outside the scope of the facility’s

Prime Minister(Minister of State
for Economic andFiscal Policy);
Minister ofInternal Affairs
andCommunications;
Minister of
Education,
Culture, Sports,
Science andTechnology;
Minister of Land,
Infrastructure,
Transport andTourism

Policy53

objective).
Policies that
Adopt necessary legislative
Preparations are underway toshould bemeasures applicable from
submit to the 2018 ordinary session
adopted in areas FY2018 with respect to the Actof the Diet a Bill to Amend the PFI
that are mature on Promotion of Private Finance Act.
Initiative (Act No. 117 of 1999)
and establish a “concentrated
period of activity,” from theperspective of promoting theconcessions system for public
facilities, etc. for water andsewerage projects by the local
governments, whereby special
support is provided by exempting
or reducing penalties whenliabilities of the said project are
prepaid at the value of theoperating rights through certain“pioneering efforts” which will
give an impetus for theapplication of such support tofuture similar projects.

Prime Minister(Minister of State
for Economic andFiscal Policy);
Minister of
Health, Labourand Welfare;
Minister of Land,
Infrastructure,
Transport andTourism

Necessary legislative measures
Preparations are underway to
Minister ofwill be promptly adopted forsubmit to the 2018 ordinary session Health, Labourand Welfare
water utilities (including bulkof the Diet a Bill to Amend theWater Works Act.
water suppliers) so that local
government can safely utilize theconcession system for public
facilities, etc., and to promote
geographical expansion so that
benefits from economy of scale
can be used to improve
profitability. We will also adopt
legislative measures for water
utilities to create a mechanism
where local governments have areason for remaining involved in
the water utility business, tocreate a mechanism where thefinancial conditions of theoperator and the water quality,
etc. are closely inspected by thegovernment, and adopt measureswith respect to the calculation
method, etc. used to determine
the underlying cost of the water
rates premised on private
enterprises involving themselvesin the water utility business.
54

(3) Using National Strategic Special Zones to achieve bold regulatory reforms
1) Progress in achieving primary KPI targets<KPI> “Have Japan rank within the top three countries of the World Bank’s Ease of Doing
Business Index by 2020” [81]
 24th as of the announcement in October 2017 (up by two ranks from the previous
year)<KPI> “Have Tokyo rank within the top three cities of the Global Power City Index by
2020” [77]
 3rd as of the announcement in October 2017 (no change from the previous year)
2) Progress in implementing primary policy goals
PolicyAccelerated
promotion of
the National
Strategic
Special Zones

Policy Details and Implementation
Deadline Following the outcome of thepast two years of bedrock
regulatory reforms, the next two
years up to the end of FY2017
will be designated as the“intensive reform enhancement
period” with respect to“National Strategic Special
Zones,” and reforms toremaining bedrock regulations
will be promoted by specifying“six areas” as priority action
items, including promoting, etc.
the acceptance of “foreign
human resources” in a wide
range of endeavors.
Progress and Implementation
StatusStarting in FY2016, we havedesignated the next two years up
to the end of FY2017 as the“intensive reform enhancement
period” setting as our “newobjective” to reform, etc. theremaining “bedrock regulations”
focusing our attention on six
priority areas or items, such as“promoting the acceptance of‘foreign human resources’ in awide range of endeavors.”

Regulatory reform items whichhave been achieved as a result of
the National Strategic Zones,
including nationwide measures,
We will proceed with nationally etc., number over 80 so far andimplementing those necessary
have been successful in achieving
reforms which have a large
regulatory reforms which haveeconomic effect and with respect long been difficult to achieve.
to outcomes at the zones that are
In addition to the regulatory
not particularly harmful toreform items incorporated in thefurther expand the effects of“Japan Revitalization Strategy
regulatory reforms.
2016,” the Amendment to theWe will adopt necessary
National Strategic Special Zones
measures immediately for those Act (Act No. 71 of 2017) was also
items which do not require anpassed at the 2017 ordinary
amendment to the law and forsession of the Diet which set forththose items which require an
new regulatory reform items, etc.
amendment, with a view toward focused primarily on thesubmitting a bill to the 2017
aforementioned six areas or items
55

Responsible
MinisterPrime Minister(Minister ofState for the
Promotion of
Overcoming
Population
Decline andVitalizing Local
Economy inJapan)

ordinary session of the Diet withrespect to matters noted in the“Japan Revitalization Strategy
2016,” such as “lifting the banon the employment of foreign
human resources working tosupport agriculture,” “lifting theban on offering or planningtravel commodities by persons
in the lodging services business,such as bed and breakfast inns
run by farmers, etc.,” in addition
to regulatory reform proposals
collected nationwide or from
district conferences. We will
also do the same with respect toregulatory reform items, such as“expanding the target age forregistered small-scale day carecenters.”

based on proposals collected from
district conferences and all acrossthe country.
Furthermore, a total of 264
businesses were certified by thePrime Minister at the Council on
National Strategic Special Zones
and the Advisory Council on
National Strategic Special Zones,
which were held 92 times and 32
times, respectively with regard to
the ten zones so designated overthree stages resulting in rapid
progress made with visible
results.

Each zone has been strictly
assessed at the Joint Zone
Conference on May 16, 2017with respect to the progressassessment, etc. of businesses in
We will fully utilize thethe ten designated zones andregulatory reform menu basedwhich has been announced
on the National Strategic Special
following hearings held at the 30th
Zone Act (Act No. 107 of 2013)
Advisory Council on Nationalat the present ten zones so
Strategic Special Zones.
designated and swiftly create
specific businesses with visible
results.

With respect to the present ten
designated zones, we will
manage their progress using the
PDCA evaluation cycle after
making a strict assessment of theoutcome of the reforms at theAdvisory Council on National
Strategic Special Zones, etc.
created under the National
Strategic Special Zone Act andthe “Basic Policies of the
National Strategic Special
Zones” (approved by the
Cabinet on February 25, 2014).

In addition, we will respondpromptly to any regulatory
reform proposals from local
governments across the country
as well as from the private sector
which may have a large
economic effect and implement
56each and every specific business
and, if necessary, designate
additional new zones.

3. Matters Related to “Strengthening the Creative Power of Innovative Ventures andEncouraging Those Persons with an Abundance of Spirit to Take on Challenges”(1) Strengthening the creative power of innovative ventures
We will strive to be the number one country in the world in innovation through completingthe creation of an Innovation National System where innovation is encouraged, and avirtuous cycle is formed with the fruits of one innovation sowing the seeds of investmentin the next innovation.
We will also strive to create a venture ecosystem where venture businesses are createdautonomously and continuously and which will contribute to solving common global
social issues serving as a spark that triggers economic growth of our nation.
1) Progress in achieving primary KPI targets<KPI> “The percentage of investments in research and development for both thegovernment and private sectors combined to GDP will be over 4%” [86]
 As of FY2016: 3.42%
2) Progress in implementing primary policy goals
PolicyUniversity
reforms

Policy Details and
Implementation Deadline
Pursuant to the passage of
the Amended National
University Corporation Act(Act No. 38 of 2016), theDesignated National
University Corporation
System began operations in
FY2017.
Pursuant to the “Basic
Concept of the ‘Stellar
Graduate School(provisional name)’ Plan,”in addition to promoting
full-scale and intense
discussions with respect tothe plan at universities andcorporations, we willsequentially create a
graduate school education
program which entails,
among other things,

Progress and Implementation Status

The Amendment to the
National University
Corporation Act, which
included the creation of the
Designated National University
Corporation System, wasenacted in April 2017. Three
universities, to wit, Tohoku
University, University ofTokyo, and Kyoto University,
were designated as DesignatedNational University
Corporations in June 2017.



In connection with the questionof the “Stellar Graduate School
Program,” the “General
Orientation of Publicly Inviting
Ideas for a Stellar Graduate
School Program –Final
Report–” (December 2017)
was announced with respect to57

Responsible
Ministers
Minister of
Education, Culture,
Sports, Science andTechnology

organizing a curriculum andpreparing a collaborative
system starting in FY2017.

discussions exchanged on
specific business designs basedon the “Basic Concept of the‘Stellar Graduate School(provisional name)’ Plan”(April 2016) compiled by apanel of experts comprised ofexperts from industry,
academia and government.
Each university is in theprocess of organizing acurriculum and preparing asystem of collaboration basedon the said report, etc.

Reforms oncompetitive
research
expenses

We will aggressively seek
ways to further improveusability, such as creating
rules regarding theadministration of indirect
expenses, etc. ofcompetitive researchexpenses (including
competitive funds).

In addition to aggregating theuse of competitive researchexpenses (including
competitive funds) andexpanding the scope of
temporary usage of purchased
research equipment, theCabinet Office and the relevant
ministries and agencies issued
an administrative communiqueto the universities, etc. withrespect to standards for theclerical processing of researchexpense usages from theperspective of easing theburden on researchers, etc.

Prime Minister(Minister of State
for Consumer
Affairs and Food
Safety; Minister ofState for Scienceand Technology
Policy); Minister ofInternal Affairs andCommunications;
Minister of
Education, Culture,
Sports, Science andTechnology;
Minister of Health,Labour andWelfare; Ministerof Agriculture,
Forestry and
Fisheries; Ministerof Economy, Tradeand Industry;
Minister of Land,
Infrastructure,
Transport andTourism; Ministerof theEnvironment;
Minister ofDefenseNational
research anddevelopment
institutereforms

We will strengthen the“intermediary” function of
the national research anddevelopment institutes,
introduce crossThe National Institute ofAdvanced Industrial Scienceand Technology (a national
research and development
institute) has established a

Prime Minister(Minister of State
for Consumer
Affairs and Food
Safety; Minister of58

appointments, and continue
to promote joint research,etc. with the private sector.
coordinated research laboratory
with corporations inside theinstitute called the “Crown
Lab” and has also assigned, etc.
“innovation coordinators” topromote the matching ofcorporate needs with the“seeds” of technology. Riken,
Institute of Physical andChemical Research (a national
research and development
institute) is trying to formulatea “science and technology hub”
function for better coordination
by establishing the institute’s
research site at thecorporations, etc. The National
Institute for Materials Science(a national research anddevelopment institute) has
formed anindustry-academia-government
coordinated platform which is
charged with serving as thefundamental research arm ofcorporations in the chemicalindustry and steel industry. As
these representative examples
demonstrate, the national
research and development
institutes are helping thetransfer of technology andstrengthening their“intermediary” function,utilizing a system of crossappointments, and promoting
joint research, etc. with theprivate sector.

As a medium- to long-term
objective and a medium- tolong-term plan, we will
specify efforts which willlead to the creation of the“seeds” of original and newtechnologies and strengthen,etc. the “intermediary”
function with respect to theJapan Science andTechnology Agency (anational research anddevelopment institute)which will soon enter a new
medium- to long-term
objective period starting in
FY2017.

The Japan Science andTechnology Agency (a national
research and development
institute) has specified efforts
leading to the creation of the“seeds” of original and newtechnologies and thestrengthening, etc. of the“intermediary” function as
their medium- to long-term
objective.



59

State for Scienceand Technology
Policy); Minister ofInternal Affairs andCommunications;
Minister of
Education, Culture,
Sports, Science andTechnology;
Minister of Health,Labour andWelfare; Ministerof Agriculture,
Forestry and
Fisheries; Ministerof Economy, Tradeand Industry;
Minister of Land,
Infrastructure,
Transport andTourism; Ministerof theEnvironment;
Minister ofDefenseFull-scaleindustry-academia
coordination
between an“organization”
and an“organization”

Under the Designated
National University
Corporation System and the
Designated National
Research and Development
Institute System, we will
create at least fiveinstitutions by the end of
FY2017 which will put into
practice full-scaleindustry-academia
coordination and global
coordination to serve as coremodel institutions to attract
investment from
corporations, etc.



We will proceed with ourefforts to disseminate andensure the effectiveness of
the “Guideline to Strengthen
Joint Research throughIndustry-Academia-Govern
ment Coordination,” which
was compiled as aprescription for resolving
issues facing
industry-academia-governm
ent coordination by
universities and national

research and development
institutes, etc. looking toachieve full-scaleindustry-academia-governm
ent coordination.



We have designated three
institutes (i.e., the National
Institute for Materials Science,
Riken, Institute of Physical andChemical Research, and the
National Institute of Advanced
Industrial Science andTechnology) as designatednational research anddevelopment institutes in
October 2016 to strengthen theindustries’ international
competitiveness and topromote the creation, spreadand utilization of results fromthe world’s highest level ofresearch and development. We
have also designated three
corporations (i.e., Tohoku
University, University ofTokyo, and Kyoto University)
as designated national
university corporations in June2017 that have shownconsiderable promise in
expanding their educationaland research activities at theworld’s highest levels.
We have disseminated the“Guideline to Strengthen Joint
Research throughIndustry-Academia-Governme
nt Coordination” via the“Regional Forum to Promote
Full-Scale
Industry-Academia-Governme
nt Joint Research,” acooperative effort by the
Ministry of Education, Culture,
Sports, Science andTechnology and the Ministry
for Economy, Trade andIndustry, and via policy
presentations, etc. by the Japan
Association of National
Universities to working groups,
national and private
universities, relevant university
organizations, andcorporations, etc. with respect

As part of a plan tostrengthen the system thatwas put into effect toachieve the world’s highest
level of research anddevelopment, etc. fordesignated national researchand development institutes,
the government will
introduce a new optional
contract system starting in
FY2017 for research anddevelopment where theearly outcome andimprovement is promising,
and which ensures
60

Minister of Statefor Science andTechnology Policy;
Minister of
Education, Culture,
Sports, Science andTechnology;
Minister of
Economy, Tradeand Industry

competitiveness andtransparency. We will also
implement further
improvements, if necessary,
pursuant to the introductionof a new optional contractsystem.

to promoting a full-scaleindustry-academia-government
coordinated joint research.
Furthermore, on the business
end, we moved forward with
our efforts to ensure theeffectiveness of the Guideline
for Industry-Academia
Coordination by confirming,
etc. the status of theindustry-academia
coordination efforts based on
the said guideline by providing
the universities with incentives
via the industry and academia
jointly created platform for thejoint research promotion
program (OPERA) andindustry-academia
coordination-related projects
conducted by NEDO.
We partially amended the“Basic Policy to Promote
Research and Development,
etc. by Designated National
Research and Development
Institutes” and introduced a
new optional contract system in
FY2017 which ensurescompetitiveness andtransparency with respect todesignated national researchand development institutes.
Based on the results, we will
also review in two years theoptional contract base amounts
and the scope of corporations
applicable under this system.

Support for
venturebusinesses

We will proceed with studying
the matter of coordination for the
relevant ministries and agencies
to cooperate and maximize thepolicy effectiveness using theConsortium and Advisory Board
for Government-Related
Institutions, which wasestablished under the “Venture
Challenge 2020” (decided on
April 19, 2017 by the
Headquarters for Japan’s

We executed policies to achieve a Prime Minister
venture ecosystem proposed in the (Minister in Charge“Venture Challenge 2020,” such as of Economic
expanding the dispatch destinations Revitalization)
under the “Project to Form a Bridge
between Silicon Valley and Japan,”studying specific measures tostrengthen the function of certain
funds that will lead to innovation,and the start of experimental efforts
aimed at incorporating newtechnologies and ideas offered by61

Economic Revitalization), andset as an objective the formationof a venture ecosystem where
venture businesses are createdautonomously and continuously
and which will contribute tosolving common global social
issues serving as a spark thattriggers economic growth of ournation.
To achieve this objective, wewill first sequentially create andoperate an on-line application
system starting in FY2017 tosimplify procedures from theperspective of venturecompanies to accommodate
them so they can more speedily
utilize policies.
Developing asystem forintellectual
property, etc.
as a responseto the fourthindustrial
revolution

medium- to small-sized enterprises
and venture companies in the public
procurement process.
Furthermore, we test started theon-line application system aimed atachieving a once-only function inconnection with measures tosupport venture companies by firstsimplifying the inputting of basic
information for the Japan Venture
Grand Prize.

We will conduct a study on a
new intellectual propertysystem and how it should be
operated, including thenecessity of adopting
legislative measures, withthe aim of compiling areport by the beginning of
FY2017.

“The Intellectual Property
Prime Minister
Promotion Plan 2017” decided by(Minister of State
the Intellectual Property Strategy
for Intellectual
Promotion Headquarters in May
Property Strategy);
2017 indicated the direction in
Minister ofwhich the intellectual property
Education, Culture,system should take toward the use Sports, Science andand application of data and artificial Technology;
intelligence.
Minister of
Economy, Trade
We will have a study
In April 2017, “The Intellectualand Industry
conducted at the Council for Property System Study Group for
Cultural Affairs, including
the Fourth Industrial Revolution,”an analysis of the effect and compiled a report regarding
impact of a flexible
corporate strategies in response toprovision to restrict rights in the fourth industrial revolution and
the Copyright Act (Act No. ideal intellectual property systems
48 of 1970) in response toin Japan for supporting those
corporations.
the development of thedigital network with a view
With respect to the appropriate
toward submitting a reform
measures indicated in this report,bill in the 2017 ordinary
the current status are as follws―
session of the Diet, and(1) as for organizing an
based on this result, etc.,
environment which guarantees fairadopt necessary measures.
consideration for the investment in
In addition, we will adopt
necessary measures, such as collecting or analysing data,
amended bill of the Unfair
efforts, etc. to formulate a
guideline with respect to the Competition Prevention Act will be
submitted to the 2018 ordinary
provision to restrict rights
and to create a databasesession of the Diet in order to62which consolidates rights
information on publications,etc. that would help inorganizing a licensing
environment.

establish measures against thewrongful acquisition, use andprovision of data in acoordancewith the new economic policy
package decided by the Cabinet
Council on December 8, 2017.
(2) pursuant to deliberation
results by the Industrial Structure
Council’s Patent System
Subcommittee to strengthen thefunctionality of the intellectual
property dispute resolution system,a bill to amend the Patent Act, etc.
will be submitted to the 2018
ordinary session of the Diet withrespect to a system, etc. that could
assess the necessity to submit
documents or objects to beinspected through appropriate andfair in-camera procedures.
(3) pursuant to deliberation
results by the Industrial Structure
Council’s Standards andConformance Subcommittee, a
study will be performed to amend
the Industrial Standardization Act
on the question of new standards
and conformance, and an
Amendment to the Industrial
Standardization Act will be
submitted to the 2018 ordinary
session of the Diet to expand theJapanese Industrial Standards (JIS)to include the services domain
based on the new economic policy
package.
In addition, the Council for
Cultural Affairs has conducted astudy with respect to a flexible
provision to restrict rights in the
Copyright Act in response to thedevelopment of the digital networkand has compiled its results in a“Council for Cultural Affairs
Copyrights Subcommittee Report(April 2017)” in April 2017.
Presently, we are preparing tosubmit a bill based on the contentsof the said report. In addition, we63are formulating a guideline withrespect to the provision to restrict
rights and presently performing
surveys and research as well as
demonstration testing with respect
to efforts, etc. to create a databasewhich consolidates rights
information on publications, etc.
Developing
human
resources forintellectual
property andstandardization

In addition to creating a“Consortium to Promote the
Education of Intellectual
Property Creation” in
FY2016 consisting of therelevant ministries, agencies
and organizations, etc. tosupport the formation of asystem where classroom
education is performed withthe cooperative support
from the community andsociety, we will proceedwith preparing a system tosupport education at theclassroom level bydeveloping teachingmaterial which would
benefit intellectual property
education.
Furthermore, we willencourage corporations toestablish a Chief
Standardization Officer(CSO) position to improve
the quality and expand thenumber of human resources
involved in promoting
standardization. We will
also consider initiating a
new certification system
regarding human resources
involved in standardizationthat would be put into effectin FY2016 and which could
be utilized by industrial
circles and patent attorneys.
In addition, we will expand
the number of courses withrespect to intellectual
property and standardization
offered at the universities,

In addition to establishing a“Consortium to Promote the
Education of Intellectual Property
Creation” in January 2017, we arein the process of preparing a system
in four regions to support education
at the classroom level bydeveloping teaching material which
would benefit intellectual property
education.
We have formulated ‘three actionplans for the development of humanresources for standardization’ inFebruary 2017 at the Government
and Private Sector Strategic
Conference for Standardization andthe Human Resources Development
Working Group for Standardizationconsisting ofindustry-academia-government
representatives to improve thequality and expand the number ofhuman resources involved inpromoting standardization. We havealso promoted the importance of not
only standardization specialists, but
human resources that will support
management and standardization as
well. In connection with this, theJapanese Standards Associationcommenced a certification systemfor experts in developing standards
in June 2017.
In order to increase the number ofcourses offered on intellectual
property and standardization, weare also in the process of preparing
course material (faculty
development teaching material)with respect to standardization in
FY2017 at the Yamaguchi
64

Prime Minister(Minister of State
for Intellectual
Property Strategy);
Minister of
Education, Culture,
Sports, Science andTechnology;
Minister of
Economy, Tradeand Industry

etc. regardless of whether
the field of study is in
humanities or science.

Strengthening
the function of
an intellectual
property
disputeresolution
systemThe Industrial Structure
Council’s Patent System
Subcommittee will conduct a
specific study on the question ofstrengthening the function of an
intellectual property dispute
resolution system and willsubmit their preliminary findings
with respect to what the legal
framework should be in FY2016.

University, which is the joint
utilization site for the organizedtraining, etc. of faculty members
involved in intellectual property
education.
The Intellectual Property
Minister ofWorking Group’s Patent System
Economy, Tradeand Industry
Subcommittee of the Industrial
Structure Council compiled theirfindings (March 2017) on thequestion of strengthening thefunction of an intellectual property
dispute resolution system. Based on
their findings, a bill to amend the
Patent Act, etc. will be submitted atthe 2018 ordinary session of theDiet to introduce a system where
fair and neutral third-party technicalspecialists, under an obligation toprotect confidentiality, can involve
themselves in the process ofcollecting evidence and assess thenecessity of submitting documents
and objects to be inspected using
in-camera procedures for an orderto submit documents or an order toproduce objects to be inspected.

(2) A multifaceted approach to developing and securing, etc. human resources2-1. Strengthening human resource capacity
1) Progress in achieving primary KPI targets<KPI> “Set a goal for the percentage of teachers utilizing IT to teach in their classrooms at
100% by 2020 (FY2014: 71.4%) [96] FY2016 (preliminary estimates): 75.0%<KPI> “Set a goal for the percentage of prefectures and municipalities which haveformulated an IT Environment Preparation Plan at 100% by FY2020 (FY2014:
31.9%)” [97] FY2016: 38.3%<KPI> “Set a goal for the percentage of ordinary classrooms connected to a wireless LAN at
100% by FY2020 (FY2014: 27.2%)” [98] FY2016 (preliminary estimates): 33.2%<KPI> “2020: A 79% employment rate for persons between the ages of 20 and 34 (2012:74%) [101] 2016: 77.7%
652) Progress in implementing primary policy goals
Policy Details and Implementation
Deadline
Nationwide
In order to have an elementary
expansion of the and secondary education across thetype ofnation which utilizes the strengths
educationof our nation to propel us toward aneeded in an era new era, the Central Council forof change
Education will conduct a study
regarding the revision of a new
government course guideline forelementary schools beginning in
FY2020, for junior high schools
beginning in FY2021, and forsenior high schools beginning in
FY2022 and has compiled a report
entitled, “Improvements to andNecessary Measures, etc. for
Government Course Guidelines for
Kindergartens, Elementary
Schools, Junior High Schools,
Senior High Schools, and Schoolsfor Special Needs Education(report)” in December 2016. Basedon this report, we will adopt
necessary measures and revise thegovernment course guidelines forelementary schools and junior highschools in FY2016.

Progress and Implementation
Status
We publicly announced in
March 2017 new government
course guidelines for elementary
schools and junior high schools
based on the idea of improving
the children’s quality ofassimilating information as wellas living self-reliantly andfostering the strength toparticipate in building a society
where the future is rapidly andunpredictably changing with theevolution of artificial
intelligence, etc. Under the new
government course guidelines,
we have defined the ability toutilize information as “thecapacity and ability which serves
as the foundation of learning”
and have sought to develop thisability cross-sectionally in the
curricula, etc. as well as
incorporated into the guidelines
the enhancement, etc. ofprogramming education. We arein the process of sponsoring
explanatory meetings, etc. torelevant persons so that they will
be well aware and cognizant ofour purpose to realize the idea set
forth in the new government
course guidelines.

Responsible
Minister
Minister of
Education,
Culture, Sports,
Science andTechnology

Creating an
education
consortium tostrengthen
coordination
betweengovernment andthe private
sectorIn March 2017, the Minister of
Education, Culture, Sports,
Science and Technology, theMinister of Internal Affairs andCommunications, and theMinister of Economy, Trade andIndustry cooperated to establish
the “Consortium for Future
Learning,” a government andprivate sector cooperative effort
to promote, etc. the education forprogramming. The consortium inquestion is in the process of

Minister ofInternal Affairs
andCommunications;
Minister of
Education,
Culture, Sports,
Science andTechnology;
Minister of
Economy, Tradeand Industry

PolicyWe will establish a government
and private sector consortium in
FY2016 consisting of relevant
ministries and agencies, school
officials, and corporations andventure companies involved in
education or IT in order to widely
share and assess IT-related teachingmaterial and contents which
support a teacher’s ability to teachand to disseminate such material as
they evolve. We will also proceedwith our efforts to accelerate66

Improving ateacher’s ability
to teach and to
firmly establish
an IT
environment at
the classroom
level

Producingpersons of talent
at a world top
level
conforming to
the fourthindustrial
revolution era

education utilizing IT, such as
developing and sharing
high-quality educational contents.

promoting the development ofhigh-quality teaching material,
creating a personnel support
system, as well as building, etc. a
portal site to post information.

We will strengthen our efforts tofurther improve the teaching abilityof teachers utilizing IT, etc. underthe Amendment to the Special
Regulations concerning
Educational Personnel via the Bill
to Amend Special Regulations
concerning Educational Personnel(Act No. 87 of 2016) which
incorporated an integrated
approach to reforming thedevelopment, employment andtraining of teachers. In addition,with respect to the preparing an
IT-friendly environment at schools,
we will steadily proceed with ourefforts with the local governments,
etc. to promote, among otherthings, the formation of an IT
Environment Preparation Planpursuant to the “Plan to Accelerate
the Computerization of Education”(July 2016) which compiled
specific measures to standardize
equipment needed in theclassrooms, including a wireless
LAN environment, etc., as well as
to systematically prepare an
environment corresponding to thesize of the local government and thestatus of its preparations.

With respect to efforts basedon the Amendment to the Special
Regulations concerning
Educational Personnel, we areformulating indicators related to
improving the capacity as school
principals or teachers to those
who have been mandated toappoint, etc. teachers, etc. at the
public elementary schools, etc.
under the said law, as well as
promoting the training of
mid-level teachers, etc. toimprove their capacity asteachers.

Minister ofInternal Affairs
andCommunications;
Minister of
Education,
Culture, Sports,
Science andTechnology

With respect to preparing an
IT-friendly environment at
schools, we created a “Panel ofExperts on the Question of
Preparing an ICT Environment at
Schools” to study the concept of
preparing an ICT-friendly
environment at schools in the
future and a “Final Summary”
was announced in August 2017.
Based on this Final Summary, weformulated the “Policy toPrepare an ICT Environment for
Schools beyond FY2018” inDecember 2017 and in addition
to notifying each Board of
Education, we are making surethat they are expected to promote
the stable and systematic
preparation of an ICT-friendly
environment for schools.

Pursuant to the “Basic Concept
of the ‘Stellar Graduate School(provisional name)’ Plan,” in
addition to promoting full-scale andclose discussions with respect tothe plan at universities andcorporations, we will sequentiallycreate a graduate school education
67

The Amendment to the
National University
Corporation Act, which
included the creation of the
Designated National
University Corporation
System, was enacted in
April 2017. Three

Minister of
Education,
Culture, Sports,
Science andTechnology

(humanresource
developmentandreinforcement
via the Stellar
Graduate
School(provisionalname) and theStellarResearcher
System)program which entails, among
other things, organizing acurriculum and preparing acollaboration system starting in
FY2017. [aforementioned]

universities, to wit, Tohoku
University, University ofTokyo, and Kyoto
University, were designatedas Designated National
University Corporations inJune 2017.
Development of
At the higher education
top level human institutions, we will promote theresources in the creation of faculties and graduate
field ofschools which train high-level data
information
scientists, etc. oriented toward thewho will be
development and procurement ofleaders in IoT,
human resources conforming to
big data, andadvancements in IoT, big data, andartificial
artificial intelligence, etc. In
intelligence, etc. addition to reinforcing education inand themathematics and information for all
reinforcement
students, we will also strengthenof mathematics the training and development
in higher
function of specialists with respecteducation
to the field of mathematics andinformation at universities,
graduate schools and technicalcolleges by creating, among otherthings, an industry-academia
coordinated network for the

In connection with thequestion of the “Stellar
Graduate School Program,”the “General Orientation of
Publicly Inviting Ideas for
the Stellar Graduate School
Program –Final Report–”(December 2017) wasannounced with respect todiscussions exchanged on
specific business designs
based on the “Basic Conceptof the ‘Stellar Graduate
School (provisional name)’Plan” (April 2016) compiled
by a panel of experts
comprised of experts fromindustry, academia andindustry. Each university isin the process of organizing
a curriculum and preparing asystem of collaboration
based on the said report, etc.

With respect to developing
high-level data scientists, weplan to develop data scientists bycreating a practicalindustry-government-academia
education network starting in
FY2018.
With respect to mathematics
and information education for all
students regardless of whether
the field of study is in humanities
or science, we will implement
education in mathematics anddata sciences for all students at
six university sites starting in
FY2017 and proceed with efforts
to organize a center to develop
and spread the product of these
implementation efforts to68

Minister of
Education,
Culture, Sports,
Science andTechnology;
Minister of
Economy, Tradeand Industry

education of mathematics andinformation.
In order to develop top level
human resources, the designatednational research and development
institutes, etc. will coordinate withhigher education institutions andassemble world class researchers to
conduct research and develop
human resources integrally in IoT,
big data, and artificial intelligence,as well as the overlapping fields ofmanufacturing and drive systems
such as robotics. We will also begin
working to create an international
research site by FY2017 that would
allow the strategic sharing, use andapplication of big data, etc. in fields
that can take advantage of ournation’s strengths, such as in thefields of nanotechnology / material
and the global environment.

universities across the country bycreating a standard curriculum
and teaching material.
Furthermore, with respect todeveloping and strengthening
specialists in the fields ofmathematics and information,
we have created a practicaleducation network bycoordinating with industry andacademia and have proceededwith our efforts to strengthen thedevelopment function of humanresources in the field of
information technology at theuniversities. We have proceededwith our efforts and selected fiveprojects starting in FY2017 to
implement the development of
the re-learning program for IT
technicians who are newly
playing an active part in society.
In addition to establishing an“Center for Artificial
Intelligence Research” at the
National Institute of Advanced
Industrial Science andTechnology in May 2015,
research and development andthe development of humanresources are being pursued
integrally at the “Center for
Advanced Intelligent Project” at
Riken, Institute of Physical andChemical Research, which was
opened in April 2016 as theresearch development site for the“Comprehensive Project for
Artificial Intelligence/ Big Data /IoT/ Cybersecurity” promoted by
the Ministry of Education,
Culture, Sports, Science andTechnology. Additionally, theNational Institute for Materials
Science started a new Program to
Reinforce the Development of
Revolutionary Material(M-cube) in FY2017 and isestablishing an international
research site in fields where the69

strengths of the nation can beutilized as well as developing thehuman resources necessary for
its implementation.
Creation of a
new higher
education
institution tocarry forth
practical
vocational
education

We will adopt necessary
legislative measures targeting the2017 ordinary session of the Diet
for the creation of such schools in
FY2019 pursuant to a reportcompiled by the Central Council
for Education on a specific systemdesign.

A Bill for Partial Amendment Minister ofto the School Education Act (Act Education,
No. 41 of 2017) was passed at the Culture, Sports,
2017 ordinary session of the
Science andTechnology
Diet. A standard, etc. for thecreation of professional training
colleges was also established in
September and procedures werecommenced to grant licenses toprofessional training colleges
scheduled to open in FY2019.

Hosting the“FourthIndustrial
Revolution
Conference toPromote Human
Resource
Development”

Following the transformation of
the industrial structure and thesocial structure as a result of the
fourth industrial revolution, we willappropriately portray a picture ofwhat we believe will be our futureindustrial structure andemployment structure together witha picture of human resources andtheir capacity and abilities, which
conform to the new industries thatare anticipated in such a future. We
will also share the results with bothgovernment and the private sector
to sponsor and study the “Fourth
Industrial Revolution Conference
to Promote Human Resource
Development” in cooperation withthe relevant ministries andagencies, industry, labor,
educational institutions, vocational
training institutions, and the humanresources development industry,
etc. so that these results may be
specifically represented in our
vocational ability development
policies and education policies, etc.

We created the “Fourth
Industrial Revolution
Conference to Promote Human
Resource Development” inDecember 2016 and held fiveconferences up to April 2017. We
discussed the type of humanresources that would bedemanded in the fourth industrial
revolution era and policies
necessary to deve lop such humanresources. We incorporated theresults of these discussions in the“Investment for the Future
Strategy 2017” (decided at the
Cabinet Council on June 9, 2017)as a “concentrated emergency
plan to strengthen our IT
abilities” which specified,among other things, reforms in
our IT skill standards as acompass for “what we should
learn,” the promotion of practicaleducation byindustry-government-academia
cooperation using actual
challenges confronting
corporation and data used bycorporations, and the support,
etc. of “Re-learning” so thatvarious people could acquirebasic IT and data skills.

Prime Minister(Minister in
Charge of
Economic
Revitalization) ;Minister ofInternal Affairs
andCommunications;
Minister of
Education,
Culture, Sports,
Science andTechnology;
Minister of
Health, Labourand Welfare;
Minister of
Economy, Tradeand Industry

Promoting theprovision ofWith respect to information
about the workplace in relation to

As for offering information
about the workplace, up to now

Minister of
Health, Labour70

information onefforts todevelop humanresources, etc.
by corporations

efforts to develop human resources,
etc. by corporations, we willcompile a response policy in
FY2016 regarding creating aformat for information about theworkplace, to address the strong
demand for corporations to offer
information about the workplace,and to create a table for providing
information about the workplace tojob applicants.

we have offered information by and Welfare
creating internet sites
individually according tocategories such as for youths or
for women, etc. However, wehave decided to integrate suchinformation as well as create atable for information about theworkplace and organize theminto a common database called
the “Comprehensive Website for
Providing Information about the
Workplace (provisional name)”
together with new informationsuch as overtime work hours asagreed under Article 36
regarding overtime work. In the
FY2017 budget, we included in
the budget expenses needed tobuild such a website and havebeen proceeding with its
planning and design
development.

Introduction
and promotion,etc. of theaccelerated
implementationof an integrated
policy toemploy anddevelop youths
that will create
the future(“Self-Career
Checkup”)

We will promote human resource
development, etc. on the part ofcorporations by promoting theprovision of information about theworkplace by corporations andpromoting the introduction of the“Self-Career Checkup” to create anenvironment which will allow
youths to demonstrate their abilities
and character in their occupational
lives. We will also support thedevelopment of one’s potential atone’s own initiative to acquire IT
technology and the like that will
benefit in forming a career for theworker using specialized practicaleducation and training, etc.

With respect to promoting the Minister ofprovision of information about
Health, Labourand Welfare
the workplace, in addition torequesting corporations toactively provide information
about their workplace under the
Act to Promote Youth
Employment, we have created a“Comprehensive Website for
Promoting Youth Employment”
which allows the registration andsearch of information on
corporations which actively
provide information about theirworkplace. Furthermore, we will
integrate the internet website
information offered individuallyaccording to categories such as
for youths or for women, etc. intoa “Comprehensive Website for
Providing Information about the
Workplace (provisional name)”so that youths can accessnecessary information in a tableformat.
In connection with the“Project to Support the71Introduction of a Self-Career
Checkup” which was
implemented in FY2016, wehave supported the model
introduction of the Self-Career
Checkup to fourteen
corporations and, based on theirresults, we have created a manual
to popularize the Self-Career
Checkup and we are taking steps
to communicate this to relevant
parties.
With respect to the acquisitionof IT technology that would
benefit the career formation on
the part of workers, the“Certification System for the
Fourth Industrial Revolution
Skill Acquisition Courses” wascreated in July 2017 where the
Minister of Economy, Trade andIndustry certifies highly
specialized and practicaleducational and training courses
centered around the fields of IT
and data. For those courses
which have satisfied certain
requirements, they have been
eligible to receive specializedpractical education and training
benefits. Sixteen of such courses
have been selected as such
starting on April 1, 2018.

2-2. Work Style and Employment Systems Reform
1) Progress in achieving KPI targets<KPI> The number of those unemployed for six months or more to be reduced by 20% in thenext five years (1.42 million in 2013) [102] 1.04 million in 2016
<KPI> The hiring rate of those who changed jobs (general workers excluding part-timeworkers) to be raised to 9% in the next five years (7.4% in 2011) [103] 8.6% in 2016
<KPI> The employment rate of those aged 20-64 to be raised to 81% by 2020 (75% in 2012)[104] 79.2% in 201672

2) Progress in implementing measures
MeasureContents and completion deadline

Earlyestablishment ofAdvanced
Professional
Labor System

In order to meet the needs ofthose who want their work
evaluated based on performance
instead of the time spent, the“Specific Highly Specialized Workand Result-Oriented Labor System(Advanced Professional Labor
System)" will be established in an
expeditious manner. In this system,
which is intended for workers who
have advanced vocational skills, acertain level of annual income isassured (at least 10 million yen, forinstance), the scope of their duties
is clearly defined, their healthcondition and work and life
balance are maintained, and thelength of their work hours andwages are not interdependent.

Progress and implementation
Minister (s)statusresponsible
The bill for amending the
Minister ofLabor Standards Act to include
Health, Labour
the establishment of the “Specific and Welfare
Highly Specialized Work andResult-Oriented Labor System,”having received a report from theLabor Policy Council in
September 2017, will be
submitted to the 2018 ordinary
session of the Diet.

* A bill for partial amendments to the
Labor Standards Act including theabove was submitted to the 2015
ordinary session of the Diet.

In addition, the Labor Policy
Council will study the target workthat should be stipulated byministerial ordinances, so that new
industries changing with times andthe work that leads to the creationof innovation in the market will beappropriately and flexibly
recognized. After the bill isapproved, the Labor Policy
Council will draw a conclusion at
an early date.
Realizing equalpay for equal
work

Based on the December 2016
guideline drafted by the Work Style
Reform Council on unequal
treatment of workers, theGovernment will work without
delay towards the realization ofequal pay for equal work throughthe revision of Labor Contract Act,
Part-time Labor Act, Worker
Dispatching Act, and othermethods, including the

In order to realize equal pay for
equal work, the Work Style
Reform Action Plan (finalized by
the Work Style Reform Council
on March 28, 2017) will be used
as a basis for establishing rules
supporting the draft guideline, as
well as rules banning different
treatment of permanent andnon-permanent, short-time, or
dispatched workers without

73

Prime Minister(Minister for
Working-style
Reform)Minister of
Health, Labourand Welfare

establishment of rules for making
court decisions on cases involving
unequal treatment.

Correct longwork hours

well-grounded reasons in thecontext of their job descriptions.
For this purpose, revision ofLabor Contract Act, Part-time
Labor Act, and Worker
Dispatching Act, etc., will be
proposed to the 2018 ordinary
session of the Diet, after
receiving a report from the Labor
Policy Council in September
2017.

In order to correct long work
With regard to enhanced
hours and strengthen the
supervision and instruction
enforcement of legal requirements, against overtimes of more than 80
Labor Standards Inspection Offices hours per month, death bywill apply stronger supervision and overwork has been added to theinspection to businesses where
reason for announcing names ofovertime of more than 80 hours per companies subject to correctional
month are suspected.
instructions, while also tightening
the legal definition of long work
From 2017, stronger initiatives
hours from over 100 hours per
to eliminate illegal long work hours
month to over 80 hours per
will be put into effect, including a.
month.
the establishment of new
guidelines for employers toWith regard to stronger efforts
correctly capture work hours,for eliminating illegal long work
hours, a brochure explaining theb. instructing the entire company to"employer guidelines for proper
rectify its labor practice whenmanagement of work hours"
illegal long work hours in morethan one of its facilities have been (January 2017) has been
published to clarify employer
found, c. extend the target of
guidelines for propercompanies to have their names
management of work hours. At
announced by being subject tothe same time, Directors ofcorrective instructions, and d.
Prefectural Labor Offices andthorough inspection and instruction
Labor Standards Inspectionof facilities lacking overtime
Offices will instruct the senioragreements between employers
management of companies
and workers based on Article 36 of
having illegal long work hours in
the Labor Standards Act.
more than one of their facilities,
In order to ensure that the Labor while the companies' names willStandards Act and worker support also be announced.
contact centers are widely known
With regard to stronger
to the publics, thereby effectively
inspection,
instruction, andenhancing the inspection andinstruction by relevant authorities, investigation frameworks, thea stronger structure for inspection, contents of Labor Standards Act
instruction, and investigation will have been repeatedly
communicated through seminars,
be established through thebrochures, and individual
placement of requisite staff
consultations, together with74

Prime Minister(Minister for
Working-style
Reform, Ministerin charge of Civil
Service Reform)
Minister of
Health, Labourand Welfare

members and other methods.
The Work Style Reform Council
will continue to discuss how tocorrect long working hours fromthe viewpoint of workers, covering
limits for overtime and othertopics. The target for the Council is
to create Work Style Reform
Action Plans in FY2016 so
requisite legal measures can be
implemented as soon as possible.
Existing guidelines based on the
Act on Special Measures for
Improvement of Working Hours
Arrangements (Act No. 90 of
1992) will be revised to include
provisions for setting intervals
between work hours and othermethods to facilitate initiatives bybusinesses to correct long work
hours.

promoting worker support
contacts through initiatives suchas the "work conditions hotline"
expanded in April 2017 toprovide consultations on work
conditions. Furthermore, theMinistry of Health, Labor andWelfare has established theSpecial Office for Excessive
Labor and increased the numberof Labor Standards Inspection
Officers to confront excessive
workload cases by an inspection,
instruction, and investigation
organizations.

With regard to limiting
overtimes, the Work Style
Reform Action Plan will be thebasis for a bill for revising theLabor Standards Acts etc. byincorporating overtime limits andother regulations. The bill will be
Projects based on "guidelines for reviewed by the Labor Policy
empowering woman public
Council in September 2017 andservants and advancing better
submitted to the 2018 ordinary
work-life balance" will besession of the Diet.
progressed through various
With regard to the work hour
methods such as the "happy earlyinterval, the Work Style Reform
evening initiative" utilizing the
Action Plan and discussions byflexible work hour frameworkextended in April 2016, as well as the Labor Conditions
Subcommittee of the Labor
ensuring employee appraisal
programs reflect managers efforts Policy Council will be used as aplatform for a bill on revising theand achievements on correcting
Act on Special Measures forlong work hours. The progress of
Improvement of Working Hours
these "work style reform"
Arrangements, with an aim toinitiatives will be the basis forhold employers accountable forfurther consideration of systems
setting non-mandatory targets forfor work hour management. "Keyprograms for accelerating central intervals between the end andbeginning of work hours adequate
government workers’ work stylereforms" will also be a source for for ensuring the health andadvancing the correction of public welfare of their employees. For
the purpose of promoting
servants’ long work hour.
spontaneous introduction of such
Furthermore, ideas generated bywork hour intervals, financial
the "discussion panel on workplace
support for counseling andleaders' management skills" will be
guidance programs based on
used to improve workplace leaders'
professional knowledge andmanagement skills.
expertise has been madeavailable, while the Expert Panel75

for Promoting Work HourInterval has been holding sessions
since May 2017 to discuss
advocacy initiatives.
As for reforming public
servants' work style, the"guidelines for empowering
female public servants andadvancing better work-lifebalance" and "key programs foraccelerating central government
workers work style reforms" hasbeen used as basis for thegovernment's undertakings on
operational efficiency, work
environment improvements, jobrole reassignment reviews andflexible personnel allocations to
avoid task concentrations, andensuring overtime schedules are
identified beforehand. In March
2017, the Cabinet Office has
published a report by the"discussion panel on workplaceleaders' management skills,"
while publishing anotherdocument on "key management
behaviors required for workplaceleaders" in April 2017, aimed at
middle-level government
managers. In July 2017, a revised
guideline for appraisal of
middle-level government
managers, based on the March
report on management behavior
required for workplace leaders,
was to government arms.
Facilitate
visibility inlabor market

Disclosure of information on
work styles within publiccompanies will be researched so aframework may be drafted by
FY2016, with the target
implementation date of FY2017.
Relevant data may include a.
Introduction of useful searchsystems and applications forcomparing companies, b.
collaboration with certification
programs for awarding businesses
with credentials for empowering

As for offering information on Minister ofthe workplace, up to now we have Health, Labourand Welfare
offered information by creatinginternet sites individuallyaccording to categories such as
for youths or for women, etc.
However, we have decided tointegrate such information as wellas create a table for informationon the workplace and organize
them into a common databasecalled the “Comprehensive
Website for Providing76

Creating labor
disputeresolution
systems withhigherpredictability

women, child-raising parents,
youth, or advocating employees'
health, c. selecting targets of
information disclosure, and d.
correction of long work hours andpromotion of diverse work styles.

Information on the Workplace(provisional name)” together withnew information such as overtime
work hours as agreed underarticle 36 regarding overtime
work. In the FY2017 budget, we
included in the budget expenses
needed to build such a website
and have been proceeding with its
planning and design
development.

After the “Study Group on
Transparent and Fair Labor
Dispute Resolution Systems"
draws a conclusion as soon as
possible, and through deliberationby the Labor Policy Council,
necessary institutional measures
will be established for the details oflabor dispute resolution systems
with higher predictability,
including what pecuniary remedies
in the event of nullity of dismissal
should be like and the need of such
remedies.

In May 2017, Study Group on Minister ofTransparent and Fair Labor
Health, Labour
Dispute Resolution Systems has and Welfare
submitted a report, with arecommendation on pecuniary
remedies in the event of nullity of
dismissal, saying that it would be"advisable for the Labor
Conditions Subcommittee todevelop a deeper understandingof the issue through expert
discussions over legal
technicalities." Based on this, theLabor Conditions Subcommitteeof the Study Group has decided tohold its session in December
2017 to have expert discussions
over legal technicalities.

2-3 Empowering diverse workforce
1) Progress in achieving KPI targets(Empowerment of women)<KPI> The employment rate of women (aged between 25 and 44) to be raised to 77% by2020 (68% in 2012) [113] 71.6% in 2016
<KPI> Increasing the capacity of nursery schools by approx. 500,000 between FY2013 andFY2017 [117]<KPI> The elimination of children on childcare waiting lists by the end of FY2017 (basedon the "Plan for Accelerated Elimination of Children on Waiting Lists") [118] The capacity of nursery schools increased by approx. 428,000 (between FY2013 andFY2016)
 26,081 children on waiting lists (2017).
(Empowerment of the elderly, the disabled, and others)
77

<KPI> The employment rate of those aged between 60 and 64 to be raised to 67% by 2020(58% in 2012) [121] 63.6% in 2016
<KPI> The effective employment rate of persons with disabilities to be raised to 2.0% by
2020 (1.69% in 2012) [122] 1.97% in 2017
(Utilization of highly-skilled foreign human resources)<KPI> Aim to recognize 5,000 highly-skilled foreign professionals by the end of 2017.
Furthermore, aim to recognize 10,000 highly-skilled foreign professionals by the endof 2020. [123] 9,728 professionals recognized as highly-skilled foreign professionals from theintroduction of the Points-based System for highly-skilled foreign professionals(May 2012) until September 2017.
2) Progress in implementing measures
MeasurePromotion ofdiversity
management

Progress and implementation
Minister (s)statusresponsible
Clarify how diversity
In August 2016, the Ministry of Minister ofmanagement can support business Economy, Trade and Industry
Economy, Tradeand Industry
growth and profitability. Alsoestablished the Discussion Panelconsider methods to makefor Diversity Management as
diversity management more
Business Strategy (Diversity 2.0).
attractive for businesses and
The Panel report of March 2017,
investors, to derive a conclusion
defining the diversity management
by FY2016.
that enhances middle - to long-term
corporate values as "Diversity
2.0," touched upon the currents
status of diversity management,
together with its challenges andtypical obstacles for
implementation. The report alsolaid out an action guideline forpractical Diversity 2.0 operation,by showing how to establish aneffective pro-diversity structure
through a company, disclose
information to and maintain
conversation with capital market,
and other specific actions to betaken by the business, together
with examples of leading
companies.
Contents and completion deadline

Currently, seminars are beingorganized throughout Japan toencourage companies to begin
acting upon this guideline,78effectively establish and maintain
diversity management throughout
their businesses.
Elimination ofchildren on
waiting lists

Based on the Emergency Planfor Eliminating Children's Waiting
List created in March 2016,
programs for expanding thecapacity for nurseries andkindergartens as well as securingchild-caring workforce in order toeliminate children's waiting list by
the end of FY2017 will be steadily
progressed.

The Plan for Accelerated
Elimination of Children on
Waiting Lists has been theguideline for increasing nurseryand kindergarten capacities,
including facilities provided bybusiness-lead initiatives. Capacityfor 428,000 children had been
secured between FY2012 andFY2015. It is envisaged thatcapacity for 593,000 children will
be secured in the five years ending
in FY2017, exceeding the 500,000
target set by the Plan. Projects toimprove employment conditions
for child-care workers and support
their re-employment have beensteadily implemented. In thiscontext, with regard to the faster
growth for women's employment
rate and the number of nursery
applications in comparison to
conditions prior to the Plan for
Accelerated Elimination ofChildren on Waiting Lists, the Safe
Child-raising Plan was created inJune 2017. As the children's
waiting list is expected to beeliminated, the new Plan aims tocreate capacity for another 320,000
children in line with the 80% target
for women's employment rate set
for the end of FY2022.

Prime Minister(Minister of State
for Measures for
Declining
Birthrate))
Minister of
Health, Labourand Welfare

Furthermore, the New
Economic Policy Package (Cabinet
Decision on December 8, 2017)
will accelerate the Safe
Child-raising Plan to clear thesame 320,000 goal by the end of
FY2020. The Package will be thebasis for steady implementation ofrelated policy measures.
Empowermentof the elderly

In order to realize a society
wherein senior citizens willing towork can do so throughout theirlife, support will be offered to"Subsidy for Promoting
Employment of Seniors Over 65"
was approved in the FY2016
supplementary budget, to offer
79

Minister of
Health, Labourand Welfare

companies that will extend theiremployees' retirement age to 65 or
maintain their continuous
employment status after 65, andalso to senior citizens seeking
re-employment.

financial support to companies
introducing systems for extending
continuous employment of all
employees willing to work after
65, extending retirement age to 65,
or abolishing retirement age rules.
Another approach is to create amanual explaining methods
created in FY2016 for extending
continuous employment andretirement age and offering good
examples thereof, using thisdocument during consultations andproviding support to businessowners.
Furthermore, "Lifetime Active
Career Support Desk," aspecialized team within Public
Employment Security Office forsupporting senior citizens, wasestablished in FY2016. 30 teams
are added in FY2017 (110 as ofJanuary 2018), strengthening
re-employment support bycomprehensively offering
consultations for re-designingsenior career life and providing
team support.

Consideringim
migration andresidence
control systems
that further
attract highly
skilled foreign
professionals

The Government has decided tocreate 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 forpermanent residence from thecurrent five years, and will takenecessary steps as soon as
possible. At the same time, tomake Points-Based System forhighly skilled foreign
professionals more user-friendly,
the Government will revise
requirements and promote further
awareness of it.

The Government has created"Japanese-version green card
system for highly-skilled foreign
professionals" in April 2017,
reducing the period of stayrequired before highly skilled
foreign professionals can apply forpermanent residence from thecurrent five years to three years.
This period will be further reduced
to one year for professionals withoutstanding skills (having earned
80 points or more). In addition, the
new methods for earing points
have been added to the rules of the“Points-Based System” forhighly-skilled foreign
professionals.

Prime Minister(Minister of State
for Economic andFiscal Policy)

Strengthening
support for

Aiming to increase the share ofinternational students who findIn order to have universities set
up special programs for

Minister for

80

Minister ofJustice
Minister of
Economy, Tradeand Industry

employment ofinternational
students andoverseas
students by
Japanesecompanies

Promoting
acceptance of
foreign
employees byJapanesecompanies
developing
globally

Foreign Affairs

jobs within Japan, theGovernment will draw up
measures to promote thedevelopment of special programsby universities, including
Japanese language education,
medium- to long-term internshipetc. Further, the Government will
provide preferential status ofresidence acquisition measuresrequired to take procedures for achange of residence status andthen start this operation from
FY2017.

international students, the Ministryof Education, Culture, Sports,
Science and Technology publicly
solicited for proposals on
establishing those special
programs. After consultation with
the Ministry of Justice, it had been
made clear during the process thatstudents who have completed thespecial programs will be given
preferential treatment when
updating their residence status. 12
programs have been selected andstarted in FY2017.

Moreover, the Government will
provide the opportunities oftraining (studying at Japanese
universities, internship at Japanesecompanies) to the excellent
students from engineering
top-level schools in Asian
countries, with target of 1,000
persons for five years from
FY2017. In addition, theGovernment will provide effective
support to excellent students whowish to have a job with Japanesecompanies through collaboration
between ministries and agencies,
and then take prefential measures
for them to obtain residence
statusas workers.

Under an initiative, “Innovative
Asia,” which is a joint program
between the Ministry of Foreign
Affairs and JICA, almost 150
graduate students have been
accepted in the initial year
(FY2017). They will be offeredinternship opportunities at
Japanese companies etcin FY2018.

With reference to themechanism of the “Project for
acceptance of foreign employees
from overseas in the
manufacturing industry” started
from March this year and from thestandpoint of an increase of
initiatives to promote global
development with the strengths ofJapanese companies demonstrated
also in other areas than the
manufacturing industry that
contribute to the growth of theJapanese economy, theGovernment will conduct survey
on needs for making possible ashort-period transfer and theacquisition of skills, etc. within a

In order to allow the workers in Minister ofthe retail industry to change
Economy, Tradeand Industry
employers in short periods andgain skills within the same
company group more smoothly,
residence status issues will beclarified in FY2017, aiming to gain
similarly positive results withreference to the mechanism of the“Project for acceptance of foreign
employees from overseas in the
manufacturing industry” .

Minister of
Education,
Culture, Sports,
Science andTechnology

Preferential treatment for
students enrolled in this program
who wish to apply for residence
status to work in Japan (bonus
points awarded under the
Points-Based System forhigh-skilled foreign professionals)
was introduced in April 2017.

81

corporate group with the
involvement of a relevant minister
responsible for the project
depending on the necessity ofacquisition of specificprofessional skills in Japan,
examine the results of the survey
and reach a conclusion during thisfiscal year.
Strengthening
residence
control
infrastructureand facilitating /expediting ofprocedures forresidence status

The Government will improve amechanism that comprehends theworking status of foreign nationals
by the end of the next year by
unifying entry methods of the“Notice of employment of foreign
nationals” and a residence card,
while making further discussions
to achieve more appropriate
residence control. Also, theGovernment will proceed withrequired preparations to ensure
facilitation / expediting ofprocedures for residence status
including the introduction of
online procedures, to commencefrom FY2018.

In order to unifyentry methodsof the “Notice of employment offoreign nationals” nd a residencecard, the Ordinance for
Enforcement of the Employment
Measures Act has been revised andwill take effect from February
2018. The relevant procedures andsystems details are being
considered to start an on-line
process for approving residence
status from FY2018.

Minister ofJustice

Improving
livingenvironment topromote theacceptance of
foreignnationals

The Government will make surethat teaching of “JSL Curriculum”
is surely implemented in theregion where there are many
foreign children who need toparticularly learn Japanese
language. Also, the Government
will improve living environment,
e.g. an increase of the number of“medical institutions with asystem to accept foreign patients
established to 40 during FY 2017.

The subsidiary programs forfinancially supporting local
governments to establish andextend their systems for offering
Japanese language coursess andother support to foreign children
have been strengthened. At thesame time, in order to ensure thattrainings are provided to foreign
children in need of Japanese
language support, laws have been
amended in March 2017 to include
Japanese language trainers as basic
faculty members in public
compulsory schools.

Prime Minister(Minister of State
for Economic andFiscal Policy)”.

The number of “medical
institutions with a system to accept
foreign patients establishedincreased to 111 in FY2017.

82

Minister of
Health, Labourand Welfare

Minister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Health, Labourand Welfare

4. Taking in Overseas Growing Markets
1) Progress in achieving KPI targets<KPI> Raise FTA ratio to 70% (2012: 18.9%) by 2018 [124] As of January 2017: 40.0%*

The share of trade value in total Japanese trade value with countries with which EPA/FTA
has entered into force or signed as of the end of January 2017 ( based on 2016 trade value)<KPI>
Raise overseas infrastructure project orders received to approx. ¥30
trillion by 2020 (2010: approximately ¥10 trillion)) [128] 2015: approximately ¥20 trillion* KPI figures include “incomes from business investments relating to overseas infrastructure
projects, etc.”<KPI> Triple overseas sales of broadcast contents by FY2018 from the FY2010 level [130]FY2010: ¥6.63 billion  FY2015: ¥28.85 billion
2) Progress in implementing measures
Progress and implementation
statusPromoting
The Government will continue toJapan has achieved successes
Economicpush forward with the negotiations including the Agreement at thepartnershipof TPP to achieve the early entry
Ministerial level on the TPP
negotiations,
into force, continue discussions on Negotiations among 11 countries
andexpansion of its member
in November 2017 and theconclusion/am countries/regions and, at the same finalization of the Japan-EU EPA
endment oftime, will strategically andnegotiations in December 2017.
investment-rel expeditiously promote other
The government will continue to
atedeconomic partnership negotiations make efforts toward earlyagreements
including Japan-EU EPA, RCEP
signature and entry into force ofand tax treaties and Japan-China-Republic of
the Japan-EU EPA, while
Korea FTA. Playing central roles promoting the RCEP,
in building such wide-area newJapan-China-Republic of Korea
economic order, Japan, as theFTA, and other economic
standard-bearer of free trade, aim partnership agreements.
to take the lead in establishing
With regard to facilitating
comprehensive, balanced, andinvestment-related agreements, thehigh-level global rules.
Japan-Israel Investment
Based on the “Action Plan for
Agreement was signed in February
improvement of investment
2017, and entered into force inclimate through promoting the
October after the Diet's approval inconclusion of investment-related
June. Additionally, in April 2017,agreements” (announced in May
the Japan-Saudi Arabia Investment2016), the Government will work Agreement, the Japan-Uruguay
on negotiations aiming to sign
Investment Agreement, and theand/or achieve entry into force of Japan-Iran Investment Agreement
investment-related agreements
entered into force. In September(investment agreements and2017, the Japan-Oman Investment
economic partnership agreements Agreement and the Japan-Kenyawith investment chapters)
Investment Agreement entered
MeasureContents and completion deadline

83

Minister (s)responsible
Prime Minister(Minister incharge of
Economic
Revitalization,
Minister of Statefor Special
Missions incharge ofConsumer andFood Safety)
Minister forInternal Affairs
andCommunications
Minister ofJustice
Minister for
Foreign Affairs
Minister ofFinance
Minister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Health, Labor andcovering 100 countries/regions by into force. Furthermore, other2020.
investment agreement negotiations
started in the same year (2017)
Furthermore, the Government
with Cote d'Ivoire, Bahrain,
will expand networks for tax
treaties in order to energize Japan's Turkmenistan, Armenia, Georgia,
Jordan, Senegal, Kirgyz, Nigeria,
economy by facilitating soundand Zambia, and in January 2018
international investment andwith Ethiopia. If all these
economic transactions.
investment agreements are enteredinto force, 91 countries/regions
will be covered. The Government
will aim to steadily advance these
agreements and aim to launch newnegotiations.

WelfareMinister ofAgriculture,
Forestry and
Fisheries
Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourism

New tax treaties with Latvia andSlovenia were approved during theordinary session of the Diet in May
2017 and entered into force in Julyand August that year, respectively.
Amendment of tax treaties with
Belgium and Austria were also
approved in the same session.
New tax treaties with Lithuania,
Estonia, and Iceland were signed
in July 2017, August 2017, andJanuary 2018 respectively.
Amendment of tax treaties with
Russia and Denmark were also
signed in September and October
2017, respectively.
The government also madesteady progress in tax treaty
negotiations.
Supporting
overseasbusiness
expansion of
SMEs taking
opportunities
afforded by the
TPP

Under the Consortium for New
Export Nation scheme, support
organizations will collaborate tooffer comprehensive support forJapanese SMEs developing
oversea markets.

Chambers of
Minister ofcommerce/societies of commerce, Economy, Tradeand Industry
local governments, financial
institutions, JETRO, and othersupport organizations are gathered
who, together with 474 experts (asof December 8, 2017) from diverse
fields, will offer bothcomprehensive and detailed
support to SMEs trying to expand
their operation overseas, fromdevelopment of overseas businessplans to on-site business meetingsand establishment of local
facilities.
84

Enhancing thePromptly and steadily
initiatives toimplement the “Policy Package”
promoteproposed by the Council for
inward foreign Promotion of Foreign Direct
Investment in Japan, such as
directfundamentally simplifying
investment
regulatory rules and administrative
procedures for foreign businesses
directly investing In Japan.

Discussions on fundamentally
simplifying regulatory rules andadministrative procedures haveresulted in “Final Report of theWorking Group for Revising
Regulations and Administrative
Procedures” of the Council for
Promotion of Foreign Direct
Investment in Japan (April 2017).

Prime Minister(Minister of State
for Economic andFiscal Policy)

Expansion of
infrastructure
exports

The “Infrastructure System
Export Strategy” was further
revised in May 2017.
Sector-specific strategies forelectricity, railways, andinformation and communications
have also been created.

Minister forInternal Affairs
andCommunications

Measures announced in the“Infrastructure System Export
Strategy” (FY2016 revision)(approved on May 23, 2016 by the
Ministerial Meeting relating
Infrastructure Export andEconomic Cooperation), the“Partnership for Quality
Infrastructure” (announced in May
2015) and its specific measures(announced in November 2015),
and the “Expanded Partnership for
High-quality Infrastructure
initiative” (announced in May
2016) will be steadily
implemented. At the same time,
individual programs such as
human resource development andstrategic promotion targeting
countries outside Japan will beeffectively combined to facilitate
joint initiative by the government
and the private sector for receiving
export orders.

All the 45 measures laid out inthe “Partnership for Quality
Infrastructure” (announced in May
2015) and its specific measures(announced in November 2015)
and in the “Expanded Partnershipfor High-quality Infrastructure
initiative” (announced in May
2016) have their implementation
frameworks established, enablingthese measures to be leveraged forexporting infrastructure systems
from Japan.
Regarding railway, airport,
ties/home, and swerage,
preparations are being made tosubmit bills to 2018 ordinary
session of the Diet so that public
institutions and companies may
commit with full-fledged
implementation from project
creation to operation,
maintenance, and management
after the completion of
construction.
Regarding strategic promotion
targeting overseas seminars in key
countries and regions forinfrastructure promotion, together
with city tours for embassies inTokyo, have been actively
organized.
85

Minister for
Foreign Affairs
Minister ofFinance
Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourism

Promotion of
Cool Japan

The “Cool Japan Public-Private
Partnership Platform” willorganize matching forums andbusiness seminars for ensuring
unified overseas development
through collaboration of attractive
contents and peripheral industries.

The Cool Japan Public-Private
Partnership Platform organizedmatching forums (February andDecember 2017) and a seminar(September 2017).

“Review Session for the
Establishment of Hubs for CoolPrivate initiatives for building
Japan” submitted a report on how
Cool Japan hubs will also bethese hubs can work together (Mayendorsed. Developing a network of 2017), while “the Review Session
these hubs will also enhance each on Cultivation of Human
Resources for Coolfacility's ability to communicate,develop human resource, andJapan” submitted an initial report
create new industries.
on human resources needed byrelevant industries and how
government organizations can
respond.

Prime Minister(Minister of Statefor Special
Missions in
Charge of CoolJapan Strategy)

5. Promotion of Momentum for Reform – “Reform 2020”
Progress in implementing measures
MeasureUtilization ofnext generationtransportation
systems andautomatic
drivingtechnology

Progress and implementation
Minister (s)statusresponsible
With an aim to realize the With regard to the SIP
Prime Ministernext-generation urban
autonomous driving system, the (Minister of Statetransportation systempuling-over control technology for Special(Advanced Rapid Transit, orused for the next-generation
Missions inART) in the water front areas
urban traffic system is being
Charge of Scienceof Tokyo by the 2020 Tokyo
field tested within is going
Technology
Olympic and Paralympic
through field tests on a test
Policy, Chairman
Games, R&D and othercourse simulating a real-lifeof the National
efforts concerning thetraffic situation with pull-overPublic Safety
pulling-over control
guideline added, in an attempt to Council)
technology, etc. will be
understand effects to ordinary
Minister ofcarried out under the Strategic
drivers' behavior and validate
Economy, Trade
Innovation Program (SIP),
the accuracy of pull-over control and Industry
etc. so that necessary
technology. Okinawa Prefecture
Minister of Land,
technologies will be delivered
became host to field tests forto the government of Tokyo
autonomous bus operation and Infrastructure,
Transport andand the operating body by
test rides by stakeholders to
Tourism2017. Specific plans forunderstand how this new
introducing these newtransport system can betransport systems into Tokyo
introduced into local areas andother parts of Japan.
and other areas will beconsidered and decided in Notifications based on the
FY2017.
Road Transport Vehicle Act
Autonomous driving
were revised in February 2017

Contents and completion deadline




86

technology will be leveraged
to offer a mode of travellingthe "last one mile" between
the destination and its nearest
train station. This new mode
will be accessible to people
with restricted mobility. A
validation site for transport
service systems using
driverless cars at the 2020
Tokyo Olympic andParalympic Games will beselected in FY2016, together
with the system operator.
Frameworks andinfrastructure required for theoperation will be established,including the validation to bemade possible by FY2017.

Solutions toenergy andenvironmental
problems
through theutilization of
distributed
energyresources

In order to establish
platooning technology byelectronically connecting alead truck to one or more
following trucks on
expressways and use truck
platooning for inter-city truck
transport services, a field testsite will be selected in
FY2016. A framework
allowing public roadvalidation will also beestablished in FY2017.

With a view to establishingnext-generation businessmodel, and leveraging theknowledge gained throughfield experiments on
converting locally available
renewable energy tohydrogen, the goal will be set
to establish an end-to-end
hydrogen system combining
renewable energy andhydrogen to cover all thesteps from production totransport and storage and tousage. A full-scale field testof technologies fortransporting and usinghydrogen created from87

to enable autonomousvehicles lacking steering
wheels or foot pedals run on
public roads, provided thatthese vehicles are equippedwith alternative safetymechanism. In June 2017, thenotification "Standards on theProcessing of Road Usage
Applications for Remotely
Controlled Autonomous
Driving System Field Test on
Public Roads" was publishedto create a suitableenvironment for validation.
Basic technologies forautonomous platooning,
including systems for brakes
and electronic towing, havealready been developed, to befollowed by field test on the
Shin-Tomei Expressway. The
issue of inter-vehicle distancehas also been considered.

The field test for creatinghydrogen from renewableenergy was started in August
2017 at Namie, Fukushima
Prefecture, after the feasibility
study results were compiled
for assessment by the New
Energy and Industrial
Technology Development
Organization (NEDO).
Currently groundwork isunder way at the site so theconstruction of test plant may
begin in the summer of
FY2018.
With regard to establishing an
innovative energy

Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourism
Minister of theEnvironment

renewable energy will begin
in FY2017. Results of thefeasibility study started in
FY2016 by business operator
will be closely studied to
select the full-scale field test
operator by the summer of
FY2017.


Realization ofuniversal futuresociety throughleading-edge
robotic
technologies

Establish an innovative
energy management system
by integrating renewableenergy, rechargeable battery,
and the sophisticated demand
response method to control
power consumption. During
the FY2017 field test
continued from the previous
FY, (1) the type and size ofenergy systems to be tested
will be extended, and (2)method for controlling energy
equipment more accurately
will also be tested.
Furthermore, in order tovitalize negawatt trading, a
new negawatt exchange will
be founded in April 2017,
while discussions on how
power transmission anddistribution businesses may
utilize the negawatt idea willcontinue.

With an aim for the social
implementation of leading edge
robotic technologies:

management system, (1) EV
and heat pump water heater
are newly tested to extend thetype and size of energy
systems in the FY2017
Demonstration Projects forbuilding Virtual Power Plants
utilizing distributed energy
resources, and (2) after the
Negawatt Trading Guideline
and the Trading Guidelines of
the Japan Electric Power
Exchange were revised, new
Negawatt trading market wasformally inaugurated in April
1, 2017. In addition, a total
demand response of about
1,000,000 kW was
successfully awarded during
the FY2016 public calls bygeneral electricity
transmission and distribution
system operatorsfor procuringother businesses as FY2017
electricity reserve power.

Specific action plan forrealizing a universal futuresociety by FY2020 will be
formulated in FY2016.
RoboCup 2017 Nagoya will
be used, in collaboration withlocal governments involved,
for extracting issues towards
showcasing advanced
robotics in 2020.
In order to accelerate theintroduction of service robots
at urban centers and airports,
results of field tests based on
88

The specific action plan forrealizing a universal futuresociety was defined andannounced in March 2017.
During the RoboCup 2017
Nagoya in July of that year, incollaboration with Nagoya
City Office and otherstakeholders, the contestants
and audience at the event havebeen surveyed for their views
on desirable 2020 showcase
scheme.
Action plan for accelerated
introduction of service robots
at urban centers at airports
was defined and announced in

Minister of
Education,
Culture, Sports,
Science andTechnology
Minister of
Economy, Tradeand Industry

real-life scenarios will bevalidated to define owners
and locations of relevant
robotic projects. Further
action plans will be
formulated in FY2016. The
Robot Revolution Initiative
will review safety guidelines
as required.

March 2017. Six field test
projects for providing
cleaning, security, andtransport services by robots at
urban centers and airports
were approved andimplemented in FY2017. With
regard to safety guidelines,
owners of the field test
projects were followed up
with surveys on the contentsof these guidelines.

International
implementationof high-quality
Japanese
medicalservices andtechnology(Inbound use of
medical care)

For promoting Japanese
medical services to potential
clients outside the country, areas
where overseas demand is highand Japan may have globallycompetitive advantages have been
identified to create Japan
International Hospitals, a group of
medical facilities accepting
patients from outside Japan. The
list of these Hospitals was firstpublished in FY2016. Potential
members will be continuously
solicited.

The initial list of JIH facilities
was announced in January 2017.
The third version of this list wasalso announced in December
2017. Forty-one
JIH-recommended hospitals exist
in 20 Prefectures. Potential
members will be continuously
solicited. JIH website has beenenhanced by powerful searchfunctions and multi-language
interface.

Showcasing
Japan as acountry of
tourism

Active support will be offered 
to areas selected for the
Tourism Nation Showcase,
based on the approachdeveloped by thecross-ministerial project
teamfor fine-tuning eachplace as a tourist attraction.
Services provided by thesupport will be extended andreviewed as required.

Barrier free design will be
actively introduced towards
the 2020 Tokyo Olympic andParalympic Games, based on
the actions proposed by theliaison meeting for relevantministries and agencies on
Universal Design 2020.
Individual actions will be
added and reviewed as
required.
89

Prime Minister(Minister incharge of Healthand Medicine
Strategy)

Active support has been
Prime Ministeroffered to areas selected for(Minister in
the Tourism Nation Showcase, charge ofbased on the approach
Women’sdeveloped by the
Empowerment,
cross-ministerial project
Minister in charge
teamfor fine-tuning each place of Tokyo Olympic
as a tourist attraction.
Games and Tokyo
Paralympic
Barrier free design have been
Games)
actively introduced towards
the 2020 Tokyo Olympic and Minister for
Paralympic Games, based on Internal Affairs
the Universal Design 2020
andCommunications
Action Plan decided by the
Ministerial Council on
Minister ofUniversal Design 2020.
Education,
The scope, project owners,
Culture, Sports,and schedule for the Haneda Science andand Narita Airport renovation Technology
projects have been clarified by Minister ofthe liaison meeting hosted by Agriculture,
the Ministry of Land,
Forestry andMeasures toattract toward
expandingforeign direct
investments nScope, project owners, andschedule for Haneda andNarita Airport renovation
projects will be clarified in
FY2016 by a liaison meeting
hosted by the Ministry ofLand, Infrastructure,
Transport and Tourism. The
project will be actively
advanced, with steps added
and reviewed as required.

Infrastructure, Transport andTourism. The project has been
actively advanced with theintroduction of multi-lingualinterface and enhanced usageof robots, while individualfeatures are being added andreviewed as required. For
example, the installation of
public telephones with sign
language interpreter service
have been added.

Fisheries

Before Regional BusinessConference (RBC) events
begin in 2019, steps will betaken during FY2017 tostrengthen partnerships with
regional governments and to
approach individual
businesses. Specificguidelines for each region(e.g. on format, timing, andvenues) will be considered to
draw a clear roadmap towards
these events, also serving toattract actual investments.

With regard to organizing
RBC events, regional
governments throughout
Japan were encouraged toactively host these
Conferences. Candidates
showing especially highinterest have been engaged in
discussions over specificguidelines (e.g. on format,
timing, and venues) to attract
actual investments.

Minister of
Economy, Tradeand Industry

・In preparation for the large scale
Global Venture Summit to be heldin 2020, The specifics of roadmap
for hosting it will be considered in
FY2017 through strengthened
cooperation with overseas
venture-related events and further
consultations with policy makers
of other countries participating
and supporting domestic andoverseas matching events.

90

In April 2016, theHeadquarters for Japan's
Economic Revitalization
launched the "Venture
Challenge 2020," proposing
how Japan's venture
ecosystem should look like in
2020, one of its major
milestones, the direction of
government policies needed tomake it happen, and what thecooperation with theecosystem's constituent
entities such as private-sector
companies should be like. In
response, dialogue withentrepreneur event organizers
and public authorities incharge of entrepreneurshippolicies outside Japan has
been started, together withexpansion and globalizationof matching events hosted by
Japan.

Minister of
Economy, Tradeand Industry
Minister of Land,
Infrastructure,
Transport andTourism
Minister of theEnvironment

III. Implementation of KPI Review
There are 134 KPIs set in the "Japan Revitalization Strategy," "Japan Revitalization
Strategy Revised in 2014," "Japan Revitalization Strategy Revised in 2015," and "Japan
Revitalization Strategy 2016." Each of these KPIs was assessed into four categories, A, B, F,
and N, depending on the state of progress made and other factors. More specifically, Category
A is when a KPI is progressing ahead of the schedule; B is when a KPI is showing a progressslower than A; F is for a KPI to indicate whether or not the measure has been put into
implementation during the year and thus requiring annual confirmation of the implementation
status; and N is for a KPI whose evaluation is dependent on the future acquisition of relevant
data and thus cannot be evaluated at present (the evaluation will be made upon obtaining thedata).
The current progresses of those 134 KPIs (based on Category A, B, F, N) and the details of
the progresses are summarized in the separate sheets, and the 134 KPIs have been categorized
as follows: 60 KPIs of A Category, 54 KPIs of B Category, 8 KPIs of F Category, and 12 KPIs
of N Category.

91

IV. Laws related to growth strategy
Regarding the Laws (Cabinet Acts) related to the measures prescribed in the Japan
Revitalization Strategy, the Japan Revitalization Strategy Revised in 2014, the Japan
Revitalization Strategy Revised in 2015, and the Japan Revitalization Strategy 2016, 9 Acts
were enacted in the 185th Diet session (extraordinary Diet in 2013), 30 Acts were enacted in
the 186th Diet session (ordinary Diet in 2014), 5 Acts were enacted in the 187th Diet session(extraordinary Diet in 2014), 22 Acts were enacted in the 189th Diet session (ordinary Diet in2015), 21 Acts were enacted in the 190th Diet session (ordinary Diet in 2016), 7 Acts wereenacted in the 192th Diet session (extraordinary Diet in 2016), and 28 Acts were enacted in the
193rd Diet session (ordinary Diet in 2017).
Diet session
185th Diet session (extraordinary Diet in 2013)
186th Diet session (ordinary Diet in 2014)
187th Diet session (extraordinary Diet in 2014)
189th Diet session (ordinary Diet in 2015)
190th Diet session(ordinary Diet in 2016
192th Diet session (extraordinary Diet in 2016)
193rd Diet session(ordinary Diet in 2017)

Number of Growth Strategy-related Acts
enacted
9 Acts30 Acts
5 Acts22 Acts
21 Acts
7 Acts28 Acts

Acts related to the Growth Strategy enacted are as follows:(1) 185th Diet session (extraordinary Diet in 2013)
 Act on the Partial Revision of the Electricity Business Act (Act No. 74 of 2013)
 Act on the Promotion of Renewable Energy Electric Power Generation Harmonizedwith Sound Development of Agriculture, Forestry and Fisheries (Act No. 81 of2013) Law for Partial Revision of the Pharmaceutical Affairs Law (Law No. 84 of 2013)
 Act to Ensure Safety in Regenerative Medicine (Act No. 85 of 2013)
 Industrial Competitiveness Enhancement Act (Act No. 98 of 2013)
 Act on Promotion of the Farmland Intermediate Management Program (Act No. 101
of 2013)
 Act for Partial Revision of the Act on Promotion of Improvement of Agricultural
Management Foundation to Promote Structural Reform of Agriculture (Act No. 102
of 2013)
 Law for Partial Amendment of the Pharmaceutical Affairs Law and the Pharmacists
Law (Law No.103 of 2013) National Strategic Special Economic Zone Act (Act No. 107 of 2013)(2) 186th Diet session (ordinary Diet in 2014)
92

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Act on Partial Revision of Act on the Japan Science and Technology Agency,
Independent Administrative Agency (Act No. 1 of 2014)
Act on Partial Revision of the Local Tax Act, etc. (Act No. 4 of 2014)
Act for Partial Revision of the Income Tax Act, etc. (Act No. 10 of 2014)
Act for Partial Revision of the Employment Insurance Act (Act No. 13 of 2014)
Act for Partial Revision of the International Trade Insurance Act (Act No. 19 of
2014)
Act on Japan Overseas Infrastructure Investment Corporation for Transport & Urban
Development (Act No. 24 of 2014)
Act for Partial Revision of the Radio Act (Act No. 26 of 2014)
Act for Partial Revision of the Act on Improvement, etc. of Employment
Management for Part-Time Workers (Act No. 27 of 2014)
Act for Partial Revision of the Act for Measures to Support the Development of the
Next-Generation Children (Act No. 28 of 2014)
Act for Partial Revision of the Act on Improvement and Vitalization in City Centers(Act No. 30 of 2014)
Act for Partial Revision of the Cabinet Office Establishment Act (Act No. 31 of2014)
Act for Partial Revision of the Ports and Harbors Act (Act No. 33 of 2014)
Act for Partial Revision of the Patent Act (Act No. 36 of 2014)
Act for Partial Revision of the Act on Special Measures concerning Urban
Regeneration (Act No. 39 of 2014)
Act for Partial Revision of the Act on Revitalization and Rehabilitation of Local
Public Transportation Systems (Act No. 41 of 2014)
Act for Partial Revision of the Financial Instruments and Exchange Act, etc. (ActNo. 44 of 2014)
Act on Promotion of Healthcare Policy (Act No. 48 of 2014)
Act on the Japan Agency for Medical Research and Development, Incorporated
Administrative Agency (Act No. 49 of 2014)
Act for Partial Revision of the Road Act, etc. (Act No. 53 of 2014)
Act for Partial Revision of the Act on General Rules for Incorporated Administrative
Agency (Act No. 66 of 2014)
Act for Partial Revision of the Electricity Business Act (Act No. 72 of 2014)
Act on the Partial Revision of the Immigration Control and Refugee Recognition(Act No. 74 of 2014)
Act on the Partial Revision of the Act on Payment of Grants to Farmers for Purposeof Stabilization of Farming Management (Act No. 77 of 2014)
Act to Promote Fulfillment of Multifunctional Roles of Agriculture (Act No. 78 of
2014)
Act on Development of Relevant Acts for Promoting Comprehensive Measures for
Securing Regional Medical and Nursing Care (Act No. 83 of 2014)
Act on Protection of the Names of Specific Agricultural, Forestry and Fishery
Products and Foodstuffs (Act No. 84 of 2014)
93

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Act on Partial Revision of the School Education Act and Act of National University
Corporations (Act No. 88 of 2014)
Act for Partial Revision of the Companies Act (Act No. 90 of 2014)
Basic Act for Promoting Small Enterprises (Law No. 94 of 2014)
Act for Partial Revision of the Act on Supporting Small Business by Commerce andIndustry Association and Chamber of Commerce and Industry (Act No. 95 of 2014)(3) 187th Diet session (extraordinary Diet in 2014)
 Act for Partial Revision of the Act on Temporary Measures concerning Customs(Act No. 110 of 2014)
 Act on Provision of Information Concerning Primary Product Declared under theJapan- Australia Economic Partnership Agreement (Act No.112 of 2014)
 Act for Partial Revision of the Local Revitalization Act (Act No. 128 of 2014)
 Act to Overcome Population Decline and Vitalize Local Economy in Japan (Act No.
136 of 2014)
 Act on Special Measures Concerning Fixed-term Employees with Expert
Knowledge and Skills (Act No. 137 of 2014)(4) 189th Diet session (ordinary Diet in 2015)
 Act on Partial Revision of the Local Tax Act, etc. (Act No. 2 of 2015)
 Act for Partial Revision of the Income Tax Act, etc. (Act No. 9 of 2015)
 Act for Partial Revision of the Telecommunications Business, etc. (Act No. 26 of2015) Act for Partial Revision of the Act on Revitalization and Rehabilitation of Local
Public Transportation Systems and the Act on the Japan Railway Construction,
Transport and Technology Agency, Incorporated Administrative Agency (Act No.
28 of 2015)
 Act for Partial Revision of the National Health Insurance Act etc. to Construct a
Sustainable Medical Insurance System (Act No. 31 of 2015)
 Act on the Fund Corporation for the Overseas Development of Japan’s ICT and
Postal Services (Act No. 35 of 2015)
 Act for Partial Revision of the Electricity Business Act etc. (Act No. 47 of 2015)
 Act on Improvement of Energy Consumption Efficiency of Buildings (Act No. 53 of2015)
 Act for Partial Revision of the Unfair Competition Prevention Act (Act No. 54 of2015)
 Act for Partial Revision of the Patent Act etc. (Act No. 55 of 2015)
 Act for Partial Revision of the National Strategic Special Zones Act and the Act on
Special Districts for Structural Reform (Act No. 56 of 2015)
 Act for Partial Revision of the Act on Ensuring the Receipt of Orders from theGovernment and Other Public Agencies by Small and Medium-Sized Enterprises,
etc. (Act No. 57 of 2015)
 Act for Partial Revision of the Trade and Investment Insurance Act and the Act on
Special Accounts (Act No. 59 of 2015)
94

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Act for Partial Revision of the Act on Facilitation of Succession of Management of
Small and Medium Sized Enterprises, etc. (Act No. 61 of 2015)
Act for Partial Revision etc. of the Agricultural Cooperatives Act, etc. (Act No. 63 of
2015)
Act on the Facilitation of Active Roles by Women in Their Working Life (Act No. 64
of 2015)
Act for Partial Revision of the Act on the Protection of Personal Information and the
Act on the Use of Numbers to Identify a Specific Individual in Administrative
Procedures (Act No. 65 of 2015)
Act for Partial Revision of the Civil Aeronautics Act (Act No. 67 of 2015)
Act for Partial Revision of the Act on Promotion of Private Finance Initiative (ActNo. 71 of 2015)
Act for Partial Revision of the Youth Labor Welfare Act, etc.(Act No. 72 2015)
Act for Partial Revision of the Act for Securing the Proper Operation of Worker
Dispatching Undertakings and Improved Working Conditions for Dispatched
Workers, etc. (Act No. 73 of 2015)
Act for Partial Revision of the Medical Service Act (Act No. 74 of 2015)(5) 190 the Diet session (ordinary Diet in 2016)
 Act for Partial Revision of the Income Tax Act, etc. (Act No. 15 of 2016)
 Act on Partial Revision of the Local Tax Act, etc. (Act No. 13 of 2016)
 Act for Partial Revision of the Employment Insurance Act (Act No. 17 of 2016)
 Act for Partial Revision of the Act on Child and Childcare Support (Act No. 22 of2016)
 Act for Partial Revision of the Local Revitalization Act (Act No. 30 of 2016)
 Act on Partial Revision of the Basic Law for Cybersecurity and the Act on
Facilitation of Information Processing (Act No. 31 of 2016)
 Act for Partial Revision, etc. of the Act on National Institute of Information andCommunications Technology and the Act on Facilitation of Implementation of
Projects for Development of Specified Communication and Broadcasting (Act No.
32 of 2016)
 Act on Partial Revision of the Act on Advancement of Integration and Streamliningof Distribution Business (Act No. 36 of 2016)
 Act on Special Measures for the Advancement of Research and Development etc. bySpecific National Research and Development Agencies (Act No. 43 of 2016)
 Act on Partial Revision of the Act on Japan Bank for International Cooperation (ActNo. 41 of 2016)
 Act on Partial Revision of the National University Corporation Act (Act No. 38 of2016) Act on Partial Revision of the Ports and Harbors Act (Act No. 45 of 2016)
 Act on Partial Revision of the Marine Traffic Safety Act, etc. (Act No. 42 of 2016)
 Act on Development of Acts Contributory to Creation of New Industries andAchievement of Vigorous Economic Society and Well Being of People Through
95

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

Proper and Effective Use of Personal Information Held by Administrative Organs,etc. (Act No. 51 of 2016)
Act on Partial Revision of the Defined Contribution Pension Act, etc. (Act No. 66 of
2016)
Act on Partial Revision of the Act for Facilitating New Business Activities of Smalland Medium-Sized Enterprises (Act No. 58 of 2016)
Act on Partial Revision of the Act on Special Measures Concerning Procurement ofElectricity from Renewable Energy Sources by Electricity Utilities(FIT Act)(Act
No. 59 of 2016)
Act on Partial Revision of the Banking Act to Keep up with Environment Changes
Including Developments in Information and Communication Technologies (Act No.
62 of 2016)
Act on Partial Revision of the National Strategic Special Zones Act (Act No. 55 of
2016)
Act on Partial Revision of the Building Lots and Buildings Transaction Business Act(Act No. 56 of 2016)
Act on Partial Revision of the Act on Special Measures concerning Urban
Regeneration, etc. (Act No. 72 of 2016)(6) 192th Diet session (Extraordinary Diet in 2016)
 Act on Launching of Artificial Satellites, etc. and the Management of Artificial
Satellites (Act No. 76 of 2016)
 Act for Ensuring Proper Handling, etc. of Satellite Remote-Sensing Records (ActNo. 77 of 2016)
 Act on Partial Revision of the Immigration Control and Refugee Recognition Act(Act No. 88 of 2016)
 Act on Proper Implementation of Technical Intern Training for Foreign Nationals
and Protection of the Technical Intern Trainees (Act No. 89 of 2016)
 Act on Partial Revision of the Installment Sales Act (Act No. 99 of 2016)
 Act on the Development of Related Legislation Following the Conclusion of theTrans-Pacific Partnership Agreement (Act No. 108 of 2016)
 Act on Partial Revision of the National Pension Act, etc. to Promote Sustainabilityof Public Pension System (Act No. 114 of 2016)(7) 193rd Diet session (ordinary Diet in 2017)
 Act on Partial Revision of the Local Tax Act and Aviation Fuel Transfer Tax Act(Act No. 2 of 2017)
 Act on Partial Revision of the Income Tax Act, etc. (Act No. 4 of 2017)
 Clinical Research Act (Act No. 16 of 2017)
 Act on Abolishment of the Act on Promotion of Agricultural Mechanization (ActNo. 19 of 2017)

Act on Abolishment of the Major Crop Seeds Act (Act No. 20 of 2017)
96

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


Act on Partial Revision of the Marine Transportation Act and the Mariner Act (ActNo. 21 of 2017)
Act on Partial Revision of the Act on Facilitation of For-Rent Housings Supply for
People in Need of Residence (Act No. 24 of 2017)
Act on Partial Revision of the Urban Green Space Conservation Act, etc. (Act No.
26 of 2017)
Act on Anonymized Medical Information used for Research and Development in
Medical Fields (Act No. 28 of 2017)
Act on Support for Building Competitive Agriculture (Act No. 35 of 2017)
Act on Partial Revision of the Financial Instruments and Exchange Act (Act No. 37
of 2017)
Act on Partial Revision of the Land Improvement Act (Act No. 39 of 2017)
Act on Partial Revision of the School Education Act (Act No. 41 of 2017)
Act on Partial Revision of the Act on Specified Joint Real Estate Ventures (Act No.
46 of 2017)
Act on Partial Revision of the Act on Formation and Development of Regional
Industrial Clusters through Promotion of Establishment of New Business Facilities,
etc. (Act No. 47 of 2017)
Act on Partial Revision of the Act on Promotion of Introduction of Industry into
Agricultural Regions (Act No. 48 of 2017)
Act on Partial Revision of the Banking Act, etc. (Act No. 49 of 2017)
Act on Partial Revision of the Licensed Tour Guide-Interpreters Act and the Travel
Agency Act (Act No. 50 of 2017)
Act on Partial Revision of the Act on the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc. (Act No. 53 of 2017)
Act on Partial Revision of the Port and Harbor Act (Act No. 55 of 2017)
Act on Partial Revision of Small and Medium-sized Enterprise Credit Insurance Act
and other Acts for Promotion of the Improvement of Small and Medium-sizedEnterprise Business Management (Act No. 56 of 2017)
Act on Partial Revision of the Act on the Stabilization of Livestock Business and the
Act on the Agriculture & Livestock Industries Corporation, Independent
Administrative Agency (Act No. 60 of 2017)
Act on Partial Revision of the Act on Control of Export, Import and Others ofSpecified Hazardous Wastes and Other Wastes (Act No. 62 of 2017)
Act on Promotion of Electronic Letter of Authorization (Act No. 64 of 2017)
The Private Lodging Business Act (Act No.65 of 2017)
Act on Partial Revision of the Act on Standardization,etc. of Agricultural andForestry Products and the Act on the Food and Agricultural Materials Inspection
Center, Incorporated Administrative Agency (Act No. 70 of 2017)
Act on Partial Revision of the Act on the National Strategic Special Districts and the
Act on Special Districts for Structural Reform (Act No. 71 of 2017)
Act on Partial Revision of the Agricultural Disaster Compensation Act (Act No. 74
of 2017)97

Provisional

KPI Progress Report
This report is a summary of progress made to date in achieving the KPI objectives advanced under the “Japan Revitalization
Strategy 2016” (hereinafter referred to as “the Strategy”).
 The “KPI” column refers to the KPI objectives advanced under the Strategy’s medium- to short-term work schedule.
 The “Main Supervising Ministry/Agency” column refers to the name of the ministry or agency, etc. that is particularly
associated with achieving the KPI objectives established for each policy group.
 The “Source of KPIs” column refers to the names of statistics or research, etc. on which the KPI figures were based.
 The “Latest Figures” column refers to the most recent KPI figures with dates (in brackets).
 The “KPI Progress” column has been categorized in the following manner:
A: KPI that shows progress toward target achievement at a pace faster than the proportion of the transitional period tothe target achievement period;
B: KPI that does not show as significant progress as A;
F: The policy itself constitutes a KPI, the implementation of which is to be confirmed for each fiscal year;(Example of KPI) Complete electric power system reforms by 2020 at the latest
N: An assessment cannot be made at this stage since data is not yet available (assessment will be madeas soon as data is made available).
 The “Details on the KPI Progress” column refers to the reasons behind and other details on the “KPI Progress”
assessment.

Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Realization of the Fourth Industrial Revolution(Society5.0)

Reference
No.

KPI

Latest Figures

1* Reduce the number ofgovernmental information systems
by 725 by transferring them onto a
cloud platform or other measures by
the end of FY2018

Number ofsystems to be
reduced: 447(March 2016)2* Reduce the operational cost (*) ofgovernmental information systems
by transferring them onto a cloud
platform or other measures byapprox. 120 billion yen by FY2021(*confined to operational costs
pertaining to government
information systems in operation as
of FY2013).

3

4

KPI
Progress

Details of KPI Progress

Source of KPIs

Main Supervising
Ministry/Agency

A

Some 447 governmental information systems werereduced in comparison with FY2012 (as of the end of
FY2015). The number of currently projected system
reductions by the end of FY2018, the target
achievement period, is 816 (56%).

Roadmap forreforming
governmental
information
systems

CabinetSecretariat (ITStrategic
Headquarters)

Reduction in
operational
cost:
Approx.30
billion yen(FY2016)

B

Reductions in operation cost from FY2013 totaled
approx. 30 billion yen (FY2016). Reductions currently
projected by the end of FY2021, the target achievement
period, total 111.8 billion yen.

Cost reduction
plan for thegovernmental
information
systems

CabinetSecretariat (ITStrategic
Headquarters)* Seeks to maintain the current top
position in a comparison ofbroadband charges (charges perunit speed) among OECD member
countries

No. 1(September
2014)

A

The current top position was maintained in acomparison of broadband charges (charges per unit
speed) among OECD member countries in OECD
Digital Economy Outlook 2015 released in July 2015.

OECD Digital
EconomyOutlook 2015

Ministry of Internal
Affairs andCommunications* Increase the number of MVNO
contracts to 15 million by the end of
2016

14.85 million
contracts(December 31,
2016)
15.86 million
contractsA

The number of MVNO contracts reached 14.85
million as of December 31, 2016 and 15.86 million as ofMarch 31, 2017. The KPI to increase the number ofcontracts to 15 million before the end of 2016 wasachieved for the most part.

Quarterly dataontelecommunicat
ion service
contracts andshares

Ministry of Internal
Affairs andCommunications

1

(March 31,
2017)

published by
the Ministry ofInternal Affairs
andCommunications

5* Provide free public wireless LAN
environment at major sightseeing
and disaster prevention locations
including sightseeing guide centers,
cultural properties, natural parks,
evacuation sites and centers, etc.
by 2020-N

It is difficult to assess the KPI at this stage sinceconfirmation of its progress is currently ongoing. About
30,000 locations were established as the target number
for developing Wi-Fi environment for disasterprevention by FY2019 based on the “Wi-Fi Environment
Development Plan for Disaster Prevention, etc.”(December 2016) (hereinafter referred to as“Development Plan”). The Government plans to further
promote the development of Wi -Fi environment basedon the Development Plan and to formulate and release
the updated version of the Development Plan before
the end of FY2017.

“Wi-Fi
Environment
Development
Plan for
DisasterPrevention,
etc.”

Ministry of Internal
Affairs andCommunications

6* Engage more than 100
municipalities in the autonomous
promotion and dissemination of
success models (including those
based on independent funds) by
FY202056 (December
2017)

A

Success models were implemented anddisseminated by 22 municipalities in FY2015, 10
municipalities in FY2016 and 24 municipalities in
FY2017.
Hearing surveys from related ministries and agencies
have confirmed the introduction of success models, etc.
in 301 municipalities in addition to the above as of April
2017. Detailed surveys will be made on the number ofmunicipalities engaged in the autonomous promotion
and dissemination of success models and the numberthat can be included in the calculation.

-

Ministry of Internal
Affairs andCommunications

7* Increase the number of Registered
Information Security Specialists tomore than 30,000 by 2020.

6,994 (as of
October 1,
2017)

A

The Registered Information Security Specialists
system began on April 1, 2017. Some 4,172 and 2,822
people registered as Registered Information Security
Specialists in the first and second round of registration.
The Government will continue its support for the
dissemination of the Registered Specialists system.

Tabulated bytheimplementing
organization(IPA)

Ministry of
Economy, Tradeand Industry

2Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Becoming the World’s Top Health-Oriented
NationReference
No.

KPI

Latest Figures

8* Extend the nation’s healthy life
expectancy by more than one
year by 2020 [70.42 for males
and 73.62 for females (2010)]

Males: 71.19,
Females: 74.21(2013)

9* Decrease the ratio of population
with metabolic syndrome (thosetargeted for specific healthguidance) by 25% from FY2008

Rate ofdecrease in thenumber of
citizens with

KPI
Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

A

Regarding this KPI, healthy life expectancy
increased by 0.77 years and 0.59 years for males andfemales, respectively, in the three years from 2010 to2013 ([Comparison] Average annual increase at aneven pace (+1 year in age/10 years) x Elapsed years(3 years) = +0.30 years in age), showing that steadyprogress has been made towards target
achievement.
In the “Future Investment Strategy 2017,” new KPIs
were set with a view to the establishment of targets
until 2025 in the “Plan for Dynamic Engagement of All
Citizens.”

Health and Labour
Sciences Research
Grant “Research on
the Future
Projection of
Healthy Life
Expectancy and
Cost Effectivenessof Measures on
Lifestyle-relatedDiseases”(* Calculated as a
Health and Labour
Sciences Researchbased on the
results ofComprehensive
Survey of Living
Conditions (largescale survey
conducted every
three years))

Ministry of
Health, Labourand WelfareA

To quote recent figures, the rate of decrease in thenumber of citizens with metabolic syndrome andthose with a high likelihood of suffering frommetabolic syndrome (refers to the rate of decrease in“Implementation
status of specified
health checkups
and specified

Ministry of
Health, Labourand Welfare3levels by 2020 [approx. 4.01
million (FY2008)]

metabolicsyndrome andthose with a highlikelihood of
suffering frommetabolicsyndrome (Rateof decrease in
those targeted
for specified
healthguidance):
16.5% (FY2015<Comparison
with FY2008>)

10* Increase the rate of citizens
undergoing health checkups (age40-74) to 80% by 2020 (including
specified health checkups)[67.7% (2010)]

Ratio of citizens
undergoing
medicalcheckups (healthexamination andhealth checkup)
and healthscreening (age:40-74): 71.0%(2016)

11* Expand the market size ofnursing-care robot devices toapprox. 50 billion yen in 2020 andapprox. 260 billion yen in 2030
[approximately 1 billion yen(2012)]

2.44 billion yen(2015)

those targeted for specified health guidance) was
16.5% in FY2015. Although the target (25% reduction
by 2020) is yet to be reached, the rate of decrease
has been rising yearly, at 9.7% in FY2011, 12.0% in
FY2012, 16.0% in FY2013 and 16.1% in 2014.

health guidance” by
the Ministry of
Health, Labour andWelfareB

The rate of citizens undergoing medical checkup(age: 40-74) was 71.0% in 2016, up 3.3 percentage
points from 2010 ([Comparison] Average annual rateof increase at an even pace (+12.3 percentage
points/10 years) x Elapsed years (6 years) = +7.4
percentage points). Since steady progress has notbeen made in achieving the KPI, the Government willneed to further promote measures.

Comprehensive
Survey of Living
conditions by the
Ministry of Health,Labour and Welfare(Survey on the rateof citizens
undergoing healthcheckup was
conducted only inthe year in which alarge-scale survey
is conducted <onceevery three years>

Ministry of
Health, Labourand Welfare

B

The nursing-care robot devices market needs to be
expanded to “approx. 50 billion yen in 2020” fromapprox. 1 billion yen in 2012 (estimate by the Ministryof Economy, Trade and Industry).
Follow-up studies on the market size should havecontinuity and should use statistics based on actual
figures, not estimates. According to a statistical“Survey on trendsof robot industry
and markets, 2015
version” by theJapan Robot
Association(general

Ministry of
Economy, Tradeand Industry

4

survey on service robots conducted by the Japan
Robot Association (general incorporated association)
since 2013, the size of the nursing-care robot devices
market was 2.44 billion yen in 2015 (actual
cumulative total of companies that responded).
Accordingly, the Government will need to further
promote the measures.

incorporated
association)

12* Number of nursing-care robot
devices to be introduced inpriority fields: 8,000 in 2030

4,505
(2015)N

Regarding the introduction of nursing-care robots inthe priority fields (movement assistance, movement
support, excretion support, monitoring of people withdementia, and bathing support), the Government
plans to develop the devices in the initial 2-3 years
under the “Japan Revitalization Strategy” inaccordance with the “Five-year plan for developing
nursing-care robots” and promote their introduction at
the site thereafter from wherever possible. According
to a statistical survey on service robots conducted by
the Japan Robot Association (general incorporated
association), the number of nursing-care robots forpriority fields shipped in 2015 totaled 4,505.

“Survey on trendsof robot industry
and markets, 2015
version” by Japan
Robot Association(generalincorporated
association)

Ministry of
Economy, Tradeand Industry

13* Dissemination of local medical
information linkage network to allareas of Japan towards the
FY2018 targets [approx. 200 (asof May 2015)]-

B

Some 238 newly developed networks wereidentified in FY2016, which is an 80% increase from2012 (134) prior to the formulation of the Japan
Revitalization Strategy. The Government plans tofurther promote the networks through the utilization of
the Fund for the Provision of Integrated Communitybased Healthcare and Long-term Care, utilization ofassessment of ICT-based coordination for medical
fees, improvement of data transmission that serves
as a reference for network building, among others.
In the “Future Investment Strategy 2017,” new KPIs
were set towards the “full-scale operation of thenational health and medical information network
starting in FY2020.”

Results of survey
on the status of
medical information
linkage network(FY2016 projectcommissioned by
the Ministry of
Health, Labour andWelfare)Ministry of
Health, Labourand Welfare

14* Increase the adoption rate ofelectronic medical charts by

77.5% (as of
October 2014)

A

The adoption rate of electronic medical charts bygeneral hospitals with 400 beds or more was 77.5%

Survey of Medical
Institutions (2014)

Ministry of
Health, Labour5general hospitals with 400 beds
or more to 90% by FY2020[57.3% (as of October 1, 2011)]

as of October 2014, which is 20.2 percentage points
higher than in October 2011 ([Comparison] Averageannual rate of increase at a uniform pace (+32.7
percentage points / 9 years) x Elapsed years (3years) = 10.9 percentage points), showing a steadyprogress toward target achievement.

and Welfare

15* Conduct 20 clinical trials andclinical researches using theregistered disease data by 2020.

11 casesA

The clinical trial and clinical research cases
introduced in the past totaled 11, with 6 cases in
FY2016 and 5 cases in FY2017, indicating a steadyprogress toward KPI achievement.

-

Ministry of
Health, Labourand Welfare

16* Formulate 5 guidelines, etc. on
clinical trial and clinical researchusing the registered disease databy 2020.

1 caseA

Regarding the guideline on clinical trial and clinicalresearch using the registered disease data, theGovernment issued a notification on the basic stanceon the use of medical data database including
registered disease data for the monitoring of thesafety of pharmaceutical products after manufactureand sales. The Government plans to continue theexamination of the guideline using the research
results as they are made available. Steady progress
is being made towards KPI achievement.

“Basic Stance on
the Use of Medical
Information
Database for the
Monitoring of the
Safety ofPharmaceutical
Products after
Manufacturing andMarketing”(Notification issued
by the Manager of
Safety Division,
Pharmaceutical
Evaluation Division,
Pharmaceutical
Safety andEnvironmental
Health Bureau,
Pharmaceutical
Division No. 0609No. 8 and Safety
Division No. 0609No. 4 dated June 9,
2017)

Ministry of
Health, Labourand Welfare17* Eliminate any time lag in the

Pharmaceuticals

A

The screening lag for pharmaceuticals and medical

Data tabulated by

Ministry of6

screening of pharmaceuticals andmedical devices by 2020
[Pharmaceuticals: 1 month,
Medical Devices: 2 months(FY2011)]: 0 year, medical
devices: 0 year
(FY2016)

18* Establish around 10 Japanese
medical treatment locations inother countries by 2020 [3locations (2014)]

Japanese
medicaltreatment
locations in othercountries:
established in 17
locations (as ofMarch 2017)19* Expand the global market forJapan’s medical technologies andservices to 5 trillion yen by 2030
[Export value of medical devices:
Approx. 453.0 billion yen; Export
value of pharmaceuticals: Approx.
144.0 billion yen (2010)]

Export value of
medical devices:
Approx. 620.0
billion yen;
Export value ofpharmaceuticals:
Approx. 150.0
billion yen(2015)]

devices for FY2016 was zero, showing steadyprogress despite some fluctuations from fiscal year tofiscal year.
The period of screening for both pharmaceuticals
and medical devices was cut short (New drugs:[FY2009] 22.0 months (median) → [FY2016] 11.6
months (70th percentile value); New medical devices:[FY2008] 19.9 months (median) → [FY2016] 12.0
months (70th percentile value)), according to thePharmaceuticals and Medical Devices Agency(PMDA).

the Ministry of
Health, Labour andWelfare andPMDA, and data
released in the U.S.

Health, Labourand WelfareA

With 17 Japanese medical treatment locations
established in other countries as of the end of 2017,
the process is progressing steadily.
The new KPIs set in the “Future Investment Strategy
2017” have raised the target figure to “around 20
locations.”

Hearing surveys
from businesses,
etc.

CabinetSecretariat(Headquartersfor Healthcare
Policy)N

The size of the global market to be captured by
Japanese medical technologies and services is thetotal of: (i) the size of the global market for medical
devices; (ii) the size of the global market forpharmaceuticals; (iii) the size of the market acquiredby Japanese treatment locations and other facilities
outside Japan, and (iv) the size of the market for
medical services received by patients visiting Japan.
This includes consultation fees paid at medical
treatment locations outside Japan and medical
expenses paid by patients visiting Japan.
Items (i) and (ii), which were calculated in the pastfrom the export value of medical devices andpharmaceuticals, can also be used to examine thesales of medical devices and pharmaceuticals abroad(2010: Overseas sales of medical devices (26companies) Approx. 880.0 billion yen / Overseas“Annual Report on
Statistics ofProduction by
PharmaceuticalIndustry” by the
Ministry of Health,Labour andWelfare, etc.

CabinetSecretariat(Headquartersfor Healthcare
Policy)7

sales of pharmaceuticals (25 companies): Approx.
3,100.0 billion yen / 2014: Overseas sales of medical
devices (26 companies) Approx.1,630.0 billion yen /Overseas sales of pharmaceuticals (25 companies)
Approx. 4,050.0 billion yen. Source: “Comprehensive
strategy for strengthening the pharmaceutical industry– Drug development in view of global expansion(references), etc.” by the Ministry of Health, Labourand Welfare).
As for (iii), it is difficult to make an evaluation at thisstage because the results of activities can only beobtained after medical treatment locations, etc. startfull-scale operations. At present, the Government is
considering the methods to identify data on local
market sizes.
Evaluation at this stage is difficult for (iv) as well,since the Government is currentl y reviewing themethods to identify the future market scale incooperation with the Japan International Hospital(JIH) and other parties.
20* Total number local public
transportation network
development plans formulated:
100 in FY2020 [26 local public
transportation network
development plans (as of March
31, 2015)]⇒ Achieved

333 (as ofDecember 31,
2017)

A

Steady progress has been made as 333 plans todevelop local public transportation networks were
formulated after the enactment of the Act for Partial
Revision of the Act on Revitalization andRehabilitation of Local Public T ransportation Systems(Act No. 49 of 2014) in November 2014.

8

Survey by the
Ministry of Land,
Infrastructure,
Transport andTourism

Ministry ofLand,
Infrastructure,
Transport andTourism

Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Reform of agriculture, forestry and fisheryindustries and export promotion

Reference
No.

KPI

Latest Figures

KPI
Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

21* Increase the ratio of farmland
used by business farmers to 80% in
the next ten years (by 2023)

54.0% (end of
FY2016)

B

While the deadline for target achievement is 2023
with the target achievement period of 10 years, 3 years
have elapsed at the point of the “latest figure.” While
the ratio of the accumulation of farmland in the handsof business farmers rose from 48.7% (at the end of
FY2013) to 54.0% (at the end of FY2016), progresshas been insufficient, as it would be preferable to havethis figure increased to 58.1% at the time of the “latest
figure” for target achievement. Consequently, theGovernment will need to further promote these andother measures.

“Statistics on
Cultivated Land
and Planted Area”
by the Ministry ofAgriculture,
Forestry and
Fisheries andsurvey by the
Agricultural Land
Policy Planning
Division ofManagement
Improvement
Bureau, Ministryof Agriculture,
Forestry and
Fisheries

Ministry ofAgriculture,
Forestry and
Fisheries

22* Reduce the cost of rice production
by business farmers by 40% (toapprox. 9,600 yen/60kg) in the nextten years (by 2023) compared with
the national average in 2011 byreflecting the efforts of the industry
in materials, distribution and otherareas.

Management by
individual farms:
10,900 yen/60kg(2016)
Management byincorporatedorganizations:
11,677 yen/60kg(2016)B

While the deadline for target achievement is 2023
with the target achievement period of 10 years, 3 years
have elapsed at the point of the “latest figure.” The costof rice production by business farmers in 2016 was
10,900 yen/60kg for individual farms and 11,677
yen/60kg for farming by incorporated organizations.
While the cost of rice production in 2011 was about
30% lower than the national average of 16,001
yen/60kg, it would be preferable to have this figure“Production costof rice and wheat
varieties” and“Analytical survey
on managementof incorporatedorganizations” by
the Ministry ofAgriculture,

Ministry ofAgriculture,
Forestry and
Fisheries

9lowered to 10,842 yen/60kg for management by
individual farms and 11,232 yen/60kg for management
by incorporated organizations at the time of the “latest
figure” for target achievement. Since progress has
been insufficient, the Government will need to further
promote these and other measures.

Forestry and
Fisheries

23* Increase the productivity of feed
rice production by business farmers
to twice the national average in2013 in the next ten years (by2025) through cost reduction andincrease in revenue (cut farmers’
production cost per 60kg of rice byaround 50% (approx. 7,615
yen/60kg)).

10,030 yen/60kg (2016)

A

While the deadline for target achievement is 2025with the target achievement period of 10 years, a year
has elapsed at the point of the “latest figure.” The costof producing feed rice by farmers has dropped from10,490 yen/60kg to 10,030 yen/60kg, which is lower
than 10,203 yen/60kg, a value that would be requiredat this point for KPI achievement.

“Production costof rice and wheat
varieties” by the
Ministry ofAgriculture,
Forestry and
Fisheries

Ministry ofAgriculture,
Forestry and
Fisheries

24* Increase the number of corporate
farmers by about four times fromthe 2010 level to 50,000 in the nextten years (by 2023)

21,800corporations(February 2017)

B

While the deadline for target achievement is 2023
with the target achievement period of 10 years, 4 years
have elapsed at the point of the “latest figure.” Whilethe number of incorporated farming organizations
increased from 14,600 (February 2013) to 21,800(February 2017), it would be preferable to have thisfigure increased to 28,760 to achieve the target. Since
progress has been insufficient, the Government willneed to further promote these and other measures.

“Census of
Agriculture andForestry,” “Survey
on Movement ofAgricultural
Structure” by the
Ministry ofAgriculture,
Forestry and
Fisheries

Ministry ofAgriculture,
Forestry and
Fisheries

25* Expand the market size of the socalled AFFrinnovation which means
adding value to agricultural
products, forest products, andfishery products in an innovative
way, making new combinations, orcreating a value chain, to 10 trillion
yen in FY 2020

5.5 trillion yen(FY2015)

B

While the time limit for achieving the goal is FY2020
with the period of 7 years starting with FY2013 during
which the market size range of the
AFFrinnovation was reviewed, 2year passed at thetime of the “latest figure”. While the market size of the
AFFrinnovation expanded to 5.5 trillion yen (FY2015)
from 4.7 trillion yen (FY2013), progress has been
insufficient, as it was desirable to have expanded to 6.2
trillion yen at the time of the “latest figure” to achieve
the target. Accordingly, the Government will need tofurther promote the measures, etc.

“Survey of the
AFFrinnovation”
by the Ministry ofAgriculture,
Forestry and
Fisheries

Ministry ofAgriculture,
Forestry and
Fisheries

1026* Increase the number of dairy
farms engaged in the sixth sector
industrialization to 500 by 2020

307 farms (April
30, 2017)

B

While the deadline for target achievement is 2020
with the target achievement period of 6 years, 3 years
have elapsed at the point of the “latest figure.” Whilethe number of farms engaged in the sixth sector
industrialization increased from 236 (2014) to 307(April 30, 2017), it would be preferable to have thisfigure increased to 368 at the time of the “latest
figures.” In view of the insufficient progress, theGovernment will need to further promote these andother measures.

Survey by theJapan Dairy
Council (generalincorporated
association)

Ministry ofAgriculture,
Forestry and
Fisheries

27* Achieve the target of i ncreasing
the export value of agricultural,
forestry and fishery products andfoods to 1 trillion yen in 2020 aheadof schedule and reach the 5 trillionyen mark by 2030.

750.2 billion yen(2016)B

While the deadline for target achievement is 2019with the target achievement period of 7 years (adecision to push the schedule forward by one year was
made in August 2016), 4 years have elapsed at the
point of the “latest figure.” While the export value ofagricultural, forestry and fishery products and foods
increased from approx. 450.0 billion yen to 750.2 billion
yen, it would be preferable to have this figure increased
to 764.2 billion yen at the time of the “latest figure” fortarget achievement. In view of the insufficient progress,
the Government will need to further promote these andother measures.

“Trade Statistics”
by the Ministry of
Finance

Ministry ofAgriculture,
Forestry and
Fisheries

11Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Realization of Japan as a tourism-oriented
nationReference
No.

KPI

Latest Figures28* We aim to increase the number ofinternational visitors to Japan to 40
million in 2020 and 60 million in
2030

24,039,700(final figure for2016),
28,690,900(2017
estimate)29* We aim to increase the amount ofconsumption by international
visitors to Japan to 8 trillion yen in2020 and 15 trillion yen in 2030

30

* We aim to increase the total
number of international visitor guest
nights in rural areas of Japan to 70
million in 2020 and 130 million in

KPI
Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

A

While the deadline for target achievement is 2020
with a target achievement period of 5 years, 2 years
have passed at the point of the “latest figure.”
The number of international visitors to Japan was
28.69 million in 2017, which grew at a rate (27.84
million) that exceeded the projected pace for KPI
achievement of “40 million in 2020.”“Statistics on the
Number ofInternational
Visitors” by theJapan National
Tourism
Organization

Ministry ofLand,
Infrastructure,
Transport andTourism (Japan
Tourism
Agency)3.7476trillion
yen (final
figure for2016),
4.4161trillion
yen(provisional
figure for 2017)

B

While the deadline for target achievement is 2020
with a target achievement period of 5 years, 2 years
have passed at the point of the “latest figure.”
Travel spending by international visitors to Japan
totaled 4 trillion 416.1 billion yen in 2017, indicating a
steady increase, however, it was lower than 5 trillion
286.2 billion yen, a figure that would be required in2017 to achieve the KPI. Based on the “Tourism Vision
to Support the Future of Japan” and other programs,
the government will seek to encourage international
visitors to extend their stay in Japan and expand their“material consumption” by strengthening promotional
efforts geared towards Europe, the U.S. and Australia
and improving nighttime attractions during their stays.

“Consumption
Trend Survey for
Foreigners Visiting
Japan” by theJapan Tourism
AgencyMinistry ofLand,
Infrastructure,
Transport andTourism (Japan
Tourism
Agency)No. of guest
nights: 27.53
million (final
figure for

B

While the deadline for target achievement is 2020
with a target achievement period of 5 years, 1 year and
10 months have passed at the point of the “latest
figure.”“Overnight Travel
Statistics Survey”
by the Japan
Tourism Agency

Ministry ofLand,
Infrastructure,
Transport and

12

2030

2016),
No. ofguest
nights: 26.47
million(provisional
figure forJanuary October 2017)

Tourism (Japan
Tourism
Agency)31* We aim to increase the number ofreturn visitors from other countries
to 24 million in 2020 and 36 million
in 2030

14.26 million(final figure for2016),
17.61 million(provisional
figure for 2017)

A

While the deadline for target achievement is 2020
with a target achievement period of 5 years, 2 years
have passed at the point of the “latest figure.”
The number of international visitors returning to Japan
in 2017 was 17.61 million, which exceeded the rate ofincrease for achievement of KPI (16.56 million) of “24million in 2020.”“Consumption
Trend Survey for
Foreigners Visiting
Japan” by theJapan Tourism
Agency and“Statistics on the
Number ofInternational
Visitors” by theJapan National
Tourism
Organization

Ministry ofLand,
Infrastructure,
Transport andTourism (Japan
Tourism
Agency)32* We aim to increase total travel
spending by domestic travelers to
21 trillion yen in 2020 and 22 trillion
yen in 2030

21.0 trillion yen(final figure for2016),
16.0 trillion yen(provisional
figure forJanuary September
2017)

A

While the deadline for target achievement is 2020
with a target achievement period of 5 years, 1 year and9 months have passed at the point of the “latest
figure.”Travel spending by domestic travelers totaled 16
trillion 17.7 billion yen in September 2017, which
exceeded the rate of increase for KPI achievement (15trillion 484.1 billion yen) of “21 trillion yen in 2020.”“Survey of Trends
in Travel andTourism
Consumption” by
the Japan Tourism
AgencyMinistry ofLand,
Infrastructure,
Transport andTourism (Japan
Tourism
Agency)33* We aim to increase the number oftax-free shops in rural areas fromapprox. 6,600 (April 2015) to the16,444 shops(October 2017)

A

While the deadline for target achievement is 2018with a target achievement period of 4 years, 2 years
and 6 months have passed at the point of the “latest

Tabulation by the
National Tax
AgencyMinistry ofLand,
Infrastructure,

The total number of international visitor guest nights
in rural areas of Japan was 26.47 million in October
2017, which showed a steady increase. However, it
was lower than 35.90 million, a figure that would be
required in October 2017 to achieve the KPI. Based on
the “Tourism Vision to Support the Future of Japan”
and other programs, the government will brush up
tourist resources, develop the environment forreceiving foreign visitors and launch promotional
efforts overseas to encourage more people to visit
rural areas.

13

scale of 20,000 in 201834

* Establish Japan’s position as theNo. 1 country in Asia for hosting
international conferences by 2030

figure.”Tax-free shops in rural areas totaled 16,444 in
October 2017, exceeding the rate of increase for KPI
achievement (14,957 shops) of “20,000 shops in2018.”
1st in Asia, 7th
in the world
Number ofinternational
conferences
hosted inJapan: 410(2016)A

Japan continued to assume the top position in Asia
in 2016 after becoming No. 1 in 2015.

14

Transport and(Japan Tourism
Agency)“ICCA Statistics
Report” by ICCA
(International
Congress andConvention
Association)

Ministry ofLand,
Infrastructure,
Transport andTourism (Japan
Tourism
Agency)Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Cultivate sports and culture as a growthindustry
Explore the future of sports industry

Reference
No.

KPI

Latest Figures

KPI
Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

35* Expand the size of the sports
market (2015: 5.5 trillion yen) to
10 trillion yen by 2020 and 15
trillion yen by 2025

5.5 trillion yen(as of 2015)

N

A group headed by the Development Bank of Japan has
examined the methods to calculate the sports market scale
in a stable manner to enable international comparison.
Since the direction has been decided to a certain extent,
an evaluation will made as soon as the latest figures are
made available.

Compiled by the
Ministry of
Education,
Culture, Sports,
Science andTechnology basedon a survey by theDevelopment
Bank of Japan

Ministry of
Education,
Culture, Sports,
Science andTechnology

36* Increase the rate of adults
participating in sports once aweek or more from 40.4% atpresent to 65% by FY2021

42.5%(FY2016
survey)B

The rate of adults participating in sports once a week ormore increased to 42.5% in FY2016 from 40.4% in
FY2015.
The progress has been inadequate since the rate waslower than 44.5%, a value based on a simple calculation ofincrease over 6 years from 2015 to 2021 for achieving the
65% target. The Government will need to further promote
its measures for target achievement. Measures to improve
the sports participation rate among the public will belaunched with a focus on businesspersons, women,children and senior citizens as well as handicapped
persons. This includes the establishment of a committee
comprising experts to examine the measures to raise thesports participation rate and the use of public-private
partnerships to create an environment in whichbusinesspersons can take part casual ly in exercise and“Public opinion
Survey on theTokyo 2020
Olympic andParalympic
Games” (FY2015)
and “Public
Opinion on
Participation inSports, etc.”(FY2016)

Ministry of
Education,
Culture, Sports,
Science andTechnology

15

sports.

16

Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Cultivate sports and culture as a growthindustry
Economic revitalization utilizing culture andart resources

Reference
No.

KPI

Latest Figures

KPI
Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

37* Expand the culture-related GDP to
18 trillion yen (approx. 3% of GDP)by 2025.

8.8 trillion yen(2015)N

The figures for 2016 will be identified by the springof 2018. In December 2017, the Government
formulated the “Culture and Economy Strategy”
based on the “Future Investment Strategy 2017.” An
action plan that incorporates the principal measures
to promote the strategy will be compiled before theend of FY2017 and measures based on the action
plan will be promoted to achieve the KPI.

“Survey andresearch on theeconomic scale andeconomic ripple
effects of cultureindustry” (NLI
Research Institute),
a projectcommissioned by the
Agency for Cultural
Affairs in FY2015

Ministry of
Education,
Culture, Sports,
Science andTechnology

38* Increase the proportion of citizens
engaged in the appreciation ofculture/art to approx. 80% andthose engaged in culture/art
activities other than appreciation toapprox. 40% by 2020

Proportion of
citizens
engaged inappreciationof culture/art
59.2%
Proportion of
citizens
engaged inculture/art
activities otherthanappreciationN

The next survey will be conducted in FY2018, andassessment will be made as soon as the results are
made available. The proportion of citizens engaged inappreciation of culture/art in FY2009 was 62.8% andthe proportion of people engaged in culture/art
activities other than appreciation was 23.7%
according to the “Public opinion survey on culture.”(Proportion of citizens engaged in appreciation ofculture/art activities: constant, proportion of citizens
engaged in culture/art activities other thanappreciation: increase (statistically significant))
With the aim of encouraging citizens to participate
more actively in culture/art activities and creating a“Public opinion
survey on culture”(Cabinet Office,November 2016)

Ministry of
Education,
Culture, Sports,
Science andTechnology

1728.1%

society in which all its members participate inculture/art activities, the Government will further
promote culture/art activities for its citizens, forinstance by advancing cultural programs to belaunched across Japan for the occasion of Tokyo
Olympic and Paralympic Games in 2020.

18

Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Revitalization and productivity
improvement of service industries

Reference
No.

KPI

39

* Improve labor productivity inservice industries to achieve thegrowth rate of 2.0% by 2020 (2013:
0.8%)

LatestFigures
0.2%(2016)

KPI
Progress
B

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

In 2016, the labor productivity growth rate dropped to
0.2% after registering 1.3% in 2015, which is lower than
the figure that would be required to achieve the 2.0%
target by 2020, assuming a simple increase of laborproductivity (1.3% in 2016). The reduction in 2016 can be
attributed to a high rate of increase in the number of
employees at approx. 1.7% while the rate of increase inadded values remained low at approx. 0.8%. By making
a comprehensive judgment by considering
macroeconomic conditions, the Government will promote
its measures to realize a labor productivity growth rate of
2.0% by 2020, including the acceleration of IT utilization
among SMEs, in service industries and other sectors aswell as strengthened collaboration with related ministries,
agencies and industrial organizations.

Estimate by the
Ministry of
Economy, Tradeand Industry basedon “National
Accounts” by the
Cabinet Office,“Monthly Labour
Survey” by the
Ministry of Health,Labour and Welfareand “Labor Force
Survey” by the
Ministry of Internal
Affairs andCommunications

Ministry of
Economy, Tradeand Industry

19Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Innovation in mid-ranking companies,
SMEs and micro enterprises

Reference
No.

KPI

Latest Figures

40* Establish a consortium based on
industry-government-academiafinance collaboration to support
some 1,000 pioneering
technological development projects
that utilize local technology over 5
years, or about 200 projects eachyear as a guide.

207 projects(FY2016)282 projects(FY2017)41* Increase the business startup rate
to a level that exceeds thebusiness closure rate so that thestartup and closure rates are on apar with the figures in the U.S.A.
and Great Britain (10-20%)(4.5% for both startup rate andclosure rate (Mean value for
FY2004 - FY2009))[Supplementary indicator]
Double the Entrepreneurial Activity
Index (Ratio of those that chosethe answer, “have started businessor plan to start business” in the“Survey on Entrepreneurship”) in
the next 10 years

Business startup
rate: 5.6% Businessclosure rate: 3.5%
(FY2016)KPI Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

A

This KPI was newly established in the“Japan Revitalization Strategy 2016,” which
was approved in a Cabinet meeting in June
2016. The number of supported projects were
207 in FY2016 and 282 in FY2017.

Survey by the
Ministry of
Economy, Tradeand Industry and
Ministry of
Education,
Culture, Sports,
Science andTechnology

Ministry of
Economy,Trade andIndustryN

The business startup/closure rates were
4.6% and 3.8% in FY2012 and 5.6% and 3.5%
in FY2016, respectively.
To achieve these KPIs, changes in theawareness of the public on business startups
will be required in addition to measures by theGovernment. Since this will be a long-termtarget, the Entrepreneurial Activity Index wasestablished as a supplementary indicator witha view on the next 10 years. In a FY2016
survey, the supplementary indicator was 5.3%,
exceeding the value (4.6%) that would bedesirable in the scenario of doubling the resultsof FY2014 survey (3.8%) in the FY2024
survey, which represents steady progress. The
Government will continue to examine
improvements in entrepreneurial spirit and take“Annual Reporton Employment
Insurance
Programs” and“Monthly Reporton Employment
Insurance
Programs” by the
Ministry of Health,Labour andWelfareMinistry of
Economy,Trade andIndustry

Supplementar
y indicator: A[Supplementary
indicator]
5.3% (FY2016)20[Supplementary
indicator]“Survey onmeasures for achieving the target for businessstartup and closure rates shown in thisindicator.

Entrepreneurship”
by the Ministry of
Economy, Tradeand Industry

42* Increase the number of SMEs
and micro enterprises in black from
700,000 to 1.4 million by 2020

923,037(FY2015)

B

The figure in FY2015 was 923,037. Although
the number has been growing year by year, it
is lower than the FY2015 value of 962,500 by
about 39,000, a value based on the scenario ofsimple increase during the target achievement
period (8 years). T his points to the need tofurther promote measures for target
achievement. In future, the Government will
steadily promote the necessary measures
including investment promotion measures for
SMEs and micro enterprises during the“Productivity Revolution/Intensive Investment
Period” up to 2020, strengthening of
meticulous management assistance schemes
and promotion of technological development
and marketing channel exploration.

“Corporation
Sample Survey”
by the National
Tax Agency

Ministry of
Economy,Trade andIndustry43* Realize the overseas expansionof another 10,000 companies in thenext 5 years (by FY2017)

Approx. 8,500
companies(Cumulative figure
for FY2013, 2014,2015 and 2016)

A

While the deadline for target achievement is2017 with the target achievement period of 5
years, 4 years have elapsed at the point of the“latest figure.”
According to a survey by the Ministry of
Economy, Trade and Industry on the number ofcompanies that launched fresh overseas
operations (exports and direct investment)
during FY2013-2016, the cumulative total
came to approx. 8,500. The value is sufficientat this point to accomplish the KPI (approx.
8,000 companies in cumulative total up to
FY2016) based on the scenario of simple
increase (2,000 companies/year) during thetarget achievement period.

Survey by the
Ministry of
Economy, Tradeand Industry

Ministry of
Economy,Trade andIndustry44* Increase the ratio of patent

15% (2016)

A

The figure reached 15% in 2016, increasing

Survey by the

Ministry of21

applications submitted by SMEs toapprox. 15% by FY2019

from 12% in 2013, 13% in 2014 and 14% in
2015, indicating a steady progress overall.

Japan Patent
OfficeEconomy,Trade andIndustry45* Increase the number ofintellectual property support cases
handled annually by Yorozu
Support Centers to 2,000 by
FY2016

1,745 cases(April 2016 - March
2017)

B

The figure during the target achievement
period (FY2016) was 1,745, which means thetarget could not be achieved. The KPI sets thenumber of intellectual property support cases
to be handled annually by Yorozu Support
Centers at 2,000 by FY2016. In future, theGovernment will launch measures to enhance
corporate awareness on intellectual property
support and make efforts to increase thenumber of support cases handled.

Survey by the
Ministry of
Economy, Tradeand Industry

Ministry of
Economy,Trade andIndustry46* Increase the number of interview
examination cases in rural areas
per year to 1,000 by FY2020

990 cases (as ofDecember 31, 2017)

A

On-site interview examinations are held
throughout the year in response to requests byapplicants.
Starting in FY2015, the Government has
been working to disseminate and implement
off-site interview examinations at “travelling
patent offices,” which were started by the
Patent Office in FY2015 as an intellectual
property support event, and to implement offsite interview examinations at the “INPITKANSAI office,” which opened in Osaka in July
2017. The results have been favorable.
While the deadline for target achievement is
FY2020 with the target achievement period of
6 years, 3 years have elapsed at the point of“latest figure. The figure exceeded approx.
720, which would be required as of FY2017 for
KPI achievement.

Survey by theJapan Patent
OfficeMinistry of
Economy,Trade andIndustry47* Standardize 100 excellent
technologies and products of midranking companies, SMEs andother businesses by 2020

10 cases(as of January 2018)

B

The figure was tabulated from the number of
specifications standardized by SMEs and midranking companies using the “New Market
Creation Standardization System.”
At present, the cases approved for

Survey by the
Ministry of
Economy, Tradeand Industry

Ministry of
Economy,Trade andIndustry22

standardization by the Japanese Industrial
Standards Committee comprise 32 JIS cases,
two ISO cases and one IEC case. Ten of thecases have already been established as JIS
standards as of January 2018. While thedeadline for target achievement is 2020 withthe target achievement period of 5 years, 2
years have elapsed at the point of the “latest
figure.” The figure is lower than 20 cases,
which would be required at this point for KPI
achievement.
The Government will continue to further
explore new cases and enhance awareness ofthe program to increase the number ofstandardization cases while steadily promoting
the standardization of cases in the preestablishment stages.

23Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Realization of industrial revolution in goods
manufacturing

Reference
No.

KPI

Latest Figures

KPI
Progress48* Increase the market scale ofdomestic robot production to 1.2
trillion yen in 2020 in the
manufacturing sectors and 1.2
trillion yen in non-manufacturingsectors including services.

Manufacturingsectors:
Approx. 716
billion yen(2016)
Nonmanufacturingsectors:
Approx. 123.9
billion yen(2015)

B

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

The market scale of domestic robot production in2013 was approx. 503.7 billion yen in manufacturingsectors and approx. 47 billion yen in non-manufacturingsectors with target achievement period of 7 years. As
for the “latest figures,” production in manufacturingsectors hovered around 716.0 billion yen (addition of
approx. 32.6 billion yen from 2015) in 2016 while
production in non-manufacturing sectors was approx.
123.9 billion yen (addition of approx. 24.5 billion yen
from 2014) in 2015. In future, the Government will needto promote its measures further while continuing tomonitor the annual market growth as it continues tosteadily implement the “New Robot Strategy” that was
decided in February 2015. At the same time, efforts arebeing launched among mid-ranking companies and
SMEs to accelerate robot introduction including
measures to cut the price and implementation cost ofsmall-sized, general-purpose robots by more than 20%
and assistance to double the number of personnel
engaged in supporting robot introduction. The
Government aims to achieve the KPI throughcomprehensive implementation of these measures. In
non-manufacturing sectors, values since 2014 reflect
the actual figures that include the shipment of ICTequipped construction machinery that was tabulated
recently.

“Statistics on
Robots: Actual
Orders, Productionand Shipment” and“Shipment ofservice robots” by
the Japan Robot
Association(generalincorporated
association)* Total shipment of“ICT-equipped
construction
machinery”(Survey by the
Ministry of
Economy, Tradeand Industry)

Ministry of
Economy, Tradeand Industry

24

49

* Improve labor productivity in the
manufacturing industry by morethan 2% per year

Approx. 2.6%
(Average
growth rate
between 2014
and 2016)

A

The KPI has been achieved, with labor productivity inthe manufacturing industry growing at the rate of
approx. 2.6% in 3 years between 2014 and 2016. For
consecutive achievement of KPI, the Government willcontinue to launch various measures including: thecreation of pioneering examples in data coordinationand international standardization; programs and rules
to promote data coordination and utilization; promotionof investment in advanced equipment; reduction of thecost of introducing small-sized, general-purpose robots
by more than 20% toward the realization of robotic
revolution; and doubling of human resources engaged
in robot introduction support. The Government seeks toachieve KPI by comprehensively implementing thesemeasures.

“National
Accounts” by the
Cabinet Office,“Monthly Labour
Survey” by the
Ministry of Health,Labour andWelfare and“Labor Force
Survey” by the
Ministry of Internal
Affairs andCommunications

Ministry of
Economy, Tradeand Industry

50* Implement highly efficient
inspections and repairs using
sensors, robots, non-destructive
inspection technology and othertechnologies on 20% of the criticaland aging infrastructures in Japanby around 2020, and on 100% ofsuch infrastructures by 2030.

-

N

The Government is currently promoting technologicaldevelopment through the Strategic InnovationPromotion Program (SIP) and other schemes toexpand the introduction of sensor robots, nondestructive inspection technology, etc. by 2020. In thefield of underwater inspection, inspections that use
next-generation robots have been under way for social
infrastructure following its introduction on a trial basis in
FY2016. On-site inspection of social infrastructure
monitoring technology using sensors, etc. has begun
sequentially in five fields (bridges, slopes, river banks,
ocean/coastal structures and airport facilities).
The assessment of methods to identify the utilization
status of sensor robots, non-destructive inspection
technology and other technologies has been under way
to evaluate the progress of this KPI. The infrastructuressubject to assessment cover a wide range of areas
including roads, rivers and harbors while the party incharge of inspection and repairs varies widely, from thegovernment to local public bodies and private
businesses. Under such circumstances, theGovernment will continue its assessment including theSurvey by the
Ministry of Land,
Infrastructure,
Transport andTourism

Ministry ofLand,
Infrastructure,
Transport andTourism25

methods to grasp the actual conditions to enable
identification starting with FY2018 figures.
51* Realize an unmanned automatic
traveling system by remotemonitoring for movement among
farms and other areas by 2020-

F

The R&D targeted on the realization of unmanned
traveling, etc. of farm machinery by remote monitoringis being conducted under the “Strategic Innovation
Promotion Program (SIP).
Also, the “Guideline on the Security Assurance ofAutomatic Traveling of Farm Machinery” wasformulated in March 2017 toward the commercializationof farm machinery that travels automatically undermanned monitoring. Some farm equipment
manufacturers have already started marketing test
products, while multiple farm equipment manufacturers
plan to market their products by 2018.

26-

Ministry ofAgriculture,
Forestry and
Fisheries

Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Revitalization of housing market with afocus on distribution and renovation
markets for existing homes

Reference
No.

KPI

LatestFigures52* Expand the size of the
distribution market for existinghomes to 8 trillion yen by 2025 (4trillion yen in 2010)* Aim to achieve the target by 2020
as much as possible

4 trillion yen(2013)

53* Double the size of the housing
renovation market to 12 trillion yen
by 2025 (6 trillion yen in 2010)* Aim to achieve the target by 2020
as much as possible

7 trillion yen(2013)

KPI
Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

B

While the deadline for target achievement is 2025 withthe target achievement period of 15 years, 3 years haveelapsed at the point of the “latest figure.” The size of the
distribution market for existing homes remained almost
unchanged between 2010 and 2013. Since the pace ofmarket expansion needs to be accelerated to achieve
the target, the Government has been implementing
measures including the establishment of special
measures for purchase and resale (April 2014-March2018 for the registration and license tax; April 2015March 2019 for the real estate acquisition tax), loans forthe acquisition cost of second-hand homes including
renovation under Flat 35 scheme of the Japan Housing
Finance Agency (from April 2015), projects to promoterenovation to build long-life quality homes (fromFebruary 2014), and “Housing Security R,” aregistration system for trade associations (fromDecember 2017). While such initiatives are expected toyield result, the Government will need to step up its
measures to achieve the target.

Housing Market
Trends Survey(annual), Housing
and Land Survey(every 5 years)

Ministry ofLand,
Infrastructure,
Transport andTourism

B

While the deadline for target achievement is 2025 withthe target achievement period of 15 years, 3 years haveelapsed at the point of the “latest figure.” The size of thehouse renovation market was 7 trillion yen in the latest
figure in 2013 (addition of approx. 1 trillion yen from

Housing and Land
Survey (every 5
years), Housing
Market Trends
Survey (annual),

Ministry ofLand,
Infrastructure.
Transport andTourism27

54* The proportion of houses forsenior citizens among the elderly
population [0.9% (2005) → 3-5%
(2020)]

2.4% (2016)

A2010).
Since the pace of market expansion needs to beaccelerated to achieve the target, the Government has
been implementing measures including theestablishment of special measures for purchase andresale (April 2014-March 2018 for the registration andlicense tax; April 2015-March 2019 for the real estate
acquisition tax), loans for the acquisition cost of secondhand homes including renovation under Flat 35 of theJapan Housing Finance Agency (from April 2015), a
project to promote renovation aimed at developing longlife quality housing (from February 2014), and “Housing
Security R,” a registration system for trade associations(from December 2017). While such initiatives are
expected to yield result, the Government will need tostep up its measures to achieve the target.

Report on Family
Income andExpenditure
Survey (annual),
Population,
demographic
movements, andthe number ofhouseholds basedon the Basic
Resident Register(annual), Survey
on awareness andopinions aboutreforms (annual)The proportion of houses for senior citizens among
the elderly population was 2.4% in 2016, which is higher
than 2.4%, a figure that would be necessary in 2016 toachieve the KPI.

* Elderly
population:“Population
Estimate” by the
Ministry of Internal
Affairs andCommunications* Housing forsenior citizens:“Survey on Social
Welfare Facilities”(annual) by the
Ministry of Health,Labour andWelfare, survey by
the Ministry ofLand,
Infrastructure,
Transport andTourism (asneeded) and28

Ministry ofLand,
Infrastructure,
Transport andTourismsurvey by the
Ministry of Health,Labour andWelfare (annual)29Creation of new promising growth markets, in-depth
development of local Abenomics, etc.
Policy Group: Overcoming environmental/energy
limitations and expanding investment

Reference
No.

KPI

Latest Figures

55* Implement the legal separationof the electric power generationand transmission sectors, which
will be the final phase of theelectricity system reform, on
April 1, 2020-56

* Create an environment tosupport the reinforcement ofcross-regional interconnection
based on the reinforcement of
frequency converters (FC) (from1.2 million kW to 2.1 million kW)
by FY2020 and the HokkaidoHonshu HVDC Link (from600,000 kW to 900,000 kW)
towards their operation start by
March 201957

* Introduce Net Zero Energy
Houses (ZEH) and Net Zero

KPI Progress

Details of KPI Progress

Source of KPIs

Main
Supervising
Ministry/Agency

F

The electricity retail market was fully deregulated in
April 2016. The Government has continued to steadily
promote the integrated reform of the electricity, gas andthermal supply fields based on the Act for Partial
Revision of the Electricity Business Act (Act No. 47 of2015) established in June 2015. The Government willseek to enhance customers’ benefits by providing themwith more leeway in their choice of energy andmaximizing fee reductions. This will be enabled byeliminating barriers between markets and creating acomprehensive energy market through active
competition among electric utilities and innovation.

“Policy on
Reform of theElectricity
System”(Cabinet
Decision on
April 2, 2013)

Ministry of
Economy, Tradeand Industry-

F

The Government will continue to implement measuresto achieve the target of starting the operation of FC in
FY2020 and the Hokkaido-Honshu HVDC Link in March
2019.

-

Ministry of
Economy, Tradeand Industry-N

To achieve the KPI, the Government plans to start byrealizing Net Zero Energy as a standard in newly

Estimates
based on the

Ministry of
Economy, Trade30

Energy Buildings (ZEB) in newly
constructed average residences
and buildings in 2030
[Supplementary indicator]
Increase the energy-saving
standard applicability ratio to100% among homes newly
constructed in 2020 andincrease the number of Net
Zero Energy Houses (ZEH) sothat most of the custom-built
homes constructed by housing
manufacturers, etc. are ZEH.

[Supplementary indicator]
Increase the energy-saving
standard applicability ratio to100% among buildings newly
constructed in 2020 and build
new public buildings as Net
Zero Energy Buildings (ZEB).

[Residences]
Energy-saving
standard
applicability
ratio: 46%(Figures for
FY2015:
Estimate)
ZEH ratio: 12%(Figures for
FY2016:
Estimate)[Non-residentialbuildings]
Energy-saving
standard
applicability
ratio: 97%(Figures for
FY2015:
Partially
estimates)
Number of ZEB
buildings:
Unaccomplished[Supplementar
y indicator]
Energy-saving
standard
applicability
ratio: B
ZEH ratio: B[Supplementar
y indicator]
Energy-saving
standard
applicability
ratio: A
Number of ZEB
buildings: F

constructed residences and in newly constructed publicbuildings by 2020.
The energy-saving standard applicability ratio forresidences was 46% in FY2015. While the target
achievement period is 8 years, 2 years have elapsed at
the point of the “latest figure.” The figure was lower than
62%, the value that would be required as of FY2015 for
KPI achievement. The Government plans to phase in
the mandatory application of energy-saving standards
for newly constructed residences by 2020 by sufficiently
considering the need for and degree of regulations,balance and other factors towards target achievement.
As for ZEH introduction in residences, there is a steadyincrease in their number, a move led by housing
manufacturers (ZEH builders) that have declared theintroduction of ZEH plans into most of the houses they
supply by FY2020. ZEH builders constructed a total of
approx. 34,000 residences in FY2016, which is about
12% of all new housing starts for custom -built
residences (approx. 290,000 houses in FY2016). While
the target achievement period is 8 years, 3 years haveelapsed at the point of the “latest figure.” Although thefigure is lower than 19%, a value that would be required
as of 2016 for KPI achievement, the pace of ZEH
dissemination is expected to pick up in the future with
the Government promoting measures for theautonomous dissemination of ZEH.
The energy-saving standard applicability ratio for nonresidential buildings was 97% in FY2015. While thetarget achievement period is 8 years, 2 years haveelapsed at the point of the “latest figure.” The figure
exceeded 95%, which would be required as of FY2015
for KPI achievement. The Government phased in the
mandatory application of energy-saving standards for
non-residential buildings in April 2017 after sufficiently
considering the need for and degree of regulations,balance and other factors. The demonstration of31

survey ofresidence
distribution by
the level ofthermalinsulation (aquestionnaire
survey on
businesses) forenergy-saving
standard
application rate
in residences
For energysaving standard
application rate
in nonresidentialbuildings,
estimates
based on thesurvey ofapplicableareas in Type 1
specifiedbuildings(2,000m 2 orlarger)(Survey by the
Housing
Bureau,Ministry ofLand,
Infrastructure,
Transport andTourism)
Follow-up

and Industry

element technologies has been under way regarding the
introduction of ZEB in non-residential buildings. A
guideline to popularize ZEB will be formulated based on
demonstration results. By continuing these measures,
the Government aims to have one or more buildings
constructed as ZEB for each purpose in newly
constructed public buildings by 2020.

survey by ZEH
builders, etc. for
ZEH ratio(Survey by the
Ministry of
Economy,Trade andIndustry)58* Double the number of energyefficient renovation cases forexisting homes by 2020

540,000 cases(2016)A

Steady progress has been observed for this KPI, withan addition of 220,000 cases ([Comparison] Averageannual rate of increase at a uniform pace (+320,000
cases/9 years) x years elapsed (5 years) = +180,000
cases) in 5 years from 2011 to 2016.

Estimate basedon “Building
Extension andRenovation
Survey” (twice
every year)(First andsecond half) by
the Ministry ofLand,
Infrastructure,
Transport andTourism.

Ministry ofLand,
Infrastructure,
Transport andTourism59* Increase the usage of LED
and other high-efficiency lights
to 100% in flow by 2020

93.5%
(FY2016)A

The introduction rate of LED and other high-efficiency
lights was 93.5% in FY2016. While the target
achievement period is 6 years, 2 years have elapsed at
the point of the “latest figure.” The figure exceeded 83%,
which would be required as of FY2016 for KPI
achievement. Also, the Japan Lighting Manufacturers
Association, an industry association ((generalincorporated association), has declared its vision of
seeking to increase the usage of high-efficiency lights to100% in flow by 2020. Moreover, the Government willfurther promote the dissemination of high-efficiency
lights based on the Top-Runner Program under the Act
on the Rational Use of Energy.
Based on these efforts, the achievement of the KPI by
the target fiscal year is deemed possible.

Statistical databy the Japan
Lighting
Manufacturers
Association(generalincorporated
association)

Ministry of
Economy, Tradeand Industry

32

60

* Increase the ratio of nextgeneration automobiles to 5070% of total new passenger car
sales by 2030

35.6% (end of
FY2016)A

The ratio increased from 29.3% in FY2015 to 35.6% in
FY2016. Steady progress has been observed as thecurrent figure is higher than 27.6%, a value at this point
when the rate of annual increase required for KPI
achievement is assumed to be uniform, by 8.0%.
The supplementary indicators and targets were
established in March 2016.
While the deadline for target achievement is FY2020
with the target achievement period of 5 years, a year
has elapsed at the point of “latest figure.” The figure waslower than 200,000 (EV/PHV) and 8,000 (FCV), thevalues that would be required as of the end of FY2016
for KPI achievement, by 34,000 (EV/PHV) and 6,201(FCV), respectively. At present, the Government’s
support measures toward the increase in the number ofsuch vehicles in use include partial subsidy schemes for
car purchases and construction of charging
infrastructure and hydrogen stations.

Survey byprivateorganizations
including theJapan
Automobile
Dealers
Association(generalincorporated
association)

Ministry of
Economy, Tradeand Industry[Supplementary indicator]
Increase the number of electricvehicles (EV) and plug-in hybrid
vehicles (PHV) in use to up to 1
million by 2020
[Supplementary indicator]
Increase the number of fuel cellvehicles (FCV) in use to about
40,000 by 2020 and 800,000 by
2030

166,000 (end of
FY2016)
1,799 (end of
FY2016)

B

61* Develop hydrogen stations
atabout 160 locations by
FY2020 and about 320
locations by FY2025 acrossJapan

92 Hydrogenstations arecommerciallyavailable (as ofDecember 31,
2017)

A

In addition to the 92 stations in operation, 9 hydrogenstations are in developing process (as of December 31,
2017. 8 of them will be commercially available within
FY2017). While the deadline for target achievement is
FY2020 with the target achievement period of 5 years, 2
years have elapsed as of the end of the current fiscal
year. 100 stations will be commercially available, which
would be required as of the end of this fiscal year for KPI
achievement.
A new company involving 11 companies will beestablished in the spring of 2018 to expand thedevelopment of hydrogen stations. The Government has
been promoting technological development andregulatory reform with the private sector towards
reduced development/operation cost.

Survey by the
Ministry of
Economy,Trade andIndustry

Ministry of
Economy, Tradeand Industry

62* Capture 70% of the global
market in the volume ofgeothermal power generation

70%

A

The share of Japanese companies was 70% in 2016
figures. Continuous efforts will be made in future to
maintain and expand market share.

IRENA: Volume
installed in theentire world

Ministry of
Economy, Tradeand Industry

B

33

turbines introduced by 2020

Thermal andNuclear PowerEngineering
Society(generalincorporated
association):
Volumeinstalled by
Japanesecompanies

63* Commercialize offshore
floating wind power generation
facilities by around 2018 for the
first time in the world-

F

Commercial operation of offshore floating wind power
generation facilities started in 2016 off the shore ofNagasaki. Demonstration research is also under way off
the shore of Fukushima.

-

Ministry of
Economy, Tradeand Industry

64* Establish the technology fornext-generation thermal power
generation step-by-step
approach by around FY 2025
based on the Technology Road
Map for Next-Generation
Thermal Power Generation.
[Supplementary indicator] Aim
to be ready forcommercialization of A-USC in
the 2020s. (Power generation
efficiency: approx. 39% at-

F

The Government aims to establish the technology fornext-generation thermal power generation at an earlydate based on the “Technology Road Map for NextGeneration Thermal Power Generation,” which wasformulated by a public-private council in June 2016 torealize high-efficiency thermal power generation andCO2 reduction.
Regarding Advanced-Ultra Super Critical thermal
power generation (A-USC), the initial technologicaldevelopment targets were achieved as of the end of
FY2016, which led to positive technological prospects
for commercial plants.
Regarding Integrated Coal Gasification Combined
Cycle power generation (IGCC), the design ofcommercial plants began in FY2014.
Regarding power generation based on Integrated
Gasification Fuel Cell cycl e (IGFC), long endurance test
operation of oxygen-blown IGCC began in July 2017.
As for LNG thermal power generation, the developmentof sophisticated element technology began in FY2016 to
improve the reliability of 1,700-degree class gas-

Ministry of
Economy, Tradeand Industry

present → approx. 46% after
improvement)[Supplementary indicator] Aim
to be ready forcommercialization of 1,500degree class IGCC in the 2020s(Power generation efficiency:
approx. 39%, approx. 46% after
improvement)[Supplementar
y indicator] AUSCF[Supplementar
y indicator]
IGCC
F

34

[Supplementary indicator]
Regarding IGFC, first establish
the technology for oxygenblown IGCC and CO2 captureand storage technology(physical capture method) by
FY2020, then establish the
IGFC technologies by FY2025
and aim to be ready for its
commercialization by the 2030s(Power generation efficiency:
approx. 39% at present, approx.
55% after improvement)[Supplementary indicator] Aim
to be ready forcommercialization of 1,700degree class gas turbines byaround FY2020s for LNG-fired
power generation (Powergeneration efficiency: approx.
52% at present, approx. 57%
after improvement)
65* Electric utilities will work
towards the introduction ofsmart meters in all households
and business offices in the early2020s based on their respective
smart meter introduction plans[Supplementar
y indicator]
IGFC
F

turbines.

[Supplementar
y indicator]
LNG-firedpower
generation
F

High-voltage
sector(factories, etc.):
Introduction
completed by
the end of
FY2016Low-voltage
sector (homes,etc.):
Introduction
scheduled to becompleted by
the end of
FY2024 after

N

Electric utilities are gradually replacing the existing
meters with smart meters at the time of contract orinspection renewal.

35

Materials by theCouncils to
examine thesmart metersystemMinistry of
Economy, Tradeand Industry

sequentiallystarting fullscale
introduction
after FY2014
66* Create a “Negawatt Power
Market” for trading conserved
electricity before the end of
2017

-

A

The prospective Negawatt systems were examined by
the Advisory Committee for Natural Resources andEnergy (Subcommittee on Basic Electricity Policy),
Electricity and Gas Market Surveillance Commission(Expert panel for institutional design) and Energy
Resource Aggregation Business Meeting (Negawatt
WG).
The “Negawatt Power Market” was established on
April 1, 2017.

67* Increase the number ofresidential fuel cells in use(Ene-Farm) to 1.4 million units
by 2020 and 5.3 million units in
2030

Number of units
in use: 226,641(as ofNovember 30,
2017)

B

[Supplementary indicator] Aim
to realize by 2020 the price thatenables users to recover theirinvestment in 7 to 8 years[Supplementary
indicator]
Number ofyears forrecovering
investment: 11
years(as ofNovember 30,
2017)[Supplementar
y indicator]A

The number of units in use increased by approx.
155,000 from the end of FY2013 to 226,000 as ofNovember 30, 2017. While the deadline for target
achievement is FY2020 with the target achievement
period of 7 years, 4 years and 8 months have elapsed
as of November 30, 2017. The figure is lower than
945,000 units, which would be required at this point for
KPI achievement.
The sales price, which exceeded 3 million yen whencommercial sales began in 2009, dropped steadily. The
average sales price in FY2017 (as of November 30) for
polymer electrolyte fuel cells (PEFC) was 1.02 million
yen (down 9% from the previous fiscal year) and that ofsolid oxide fuel cells (SOFC) was 1.27 million yen (down
6% from the previous fiscal year), thanks, in particular,
to the price deduction scheme introduced for subsidies
in FY2016. As a result, the payback period became 11
years (down 15% from the previous fiscal year). Whilethe deadline for target achievement is FY2020 with thetarget achievement period of 5 years, 3 years and 8months have elapsed as of November 30, 2017. The
figure is shorter than 12.7 years, the payback period that

36

Ministry of
Economy, Tradeand Industry

Survey by the
Ministry of
Economy,Trade andIndustry

Ministry of
Economy, Tradeand Industry

would be required at this point for KPI achievement.
68* Realize full-scalecommercialization of nextgeneration power electronics
using new materials by 2020
[Supplementary indicator]
Realize the practical applicationof next-generation powerelectronics using the newmaterial SiC by FY2016-

69* Expand the share of cuttingedge storage battery market
held by Japanese companies to
500 billion yen per year (about
50% of the global market) by
2020* The targets are vehiclemounted batteries and batteries
for electrical energy storage

366.6 billion yen(38% of the
global market)(2015 figure)70* Cut the cost of energy storage-

F

With the promotion of technological development
under way towards KPI achievement, elemental
technologies that have been established by FY2014
include the enlargement of diameter from theconventional 4 inches to 6 inches, stable wafer
manufacturing technology and even formation of
epitaxial growth thin films on 6-inch wafers along withefforts to improve the crystal quality of the new material
Sic by FY2014. Also, a 55% loss reduction was
confirmed in power modules that used MOSFET, which
was developed to provide ultra-low on-resistance, incomparison with power modules that use theconventional Si power semiconductors.
In addition, pressure-resistant 6.5kV power
semiconductors, power modules, high-efficiency
inverters and other devices were developed to apply Sic
in railways and automobiles with the aim of putting thetechnology into actual use at an early date. Also, thetechnological development and demonstration of GaN
began in FY2014. The prototyping and operation
verification of 6.5kV power modules were conducted in
FY2016.
It was decided that SiC would be introduced in the
prototype car for the next Shinkansen in FY2016.

-

Ministry of
Economy, Tradeand Industry

A

The Government confirmed that the progress of KPI
has been more significant than the proportion of thetransitional period to the target achievement period after
tabulating the cutting-edge battery market share held byJapanese companies based on 2015 figures. The
Ministry of Economy, Trade and Industry will continue toprovide support by strengthening domestic companies’
competitiveness through technological development of
cutting-edge storage batteries as well as from theperspective of energy policy.

Survey byprivatecompanies

Ministry of
Economy, Tradeand Industry

N

The Meeting of External Experts in FY2016 confirmed

Survey by the

Ministry ofSupplementary
indicator: A37

for power systems by half or
lower (23,000 yen/kWh or
lower) by 2020

that the KIP including the application of low-cost partsand process automation is progressing smoothly overall.
Development is under way to cut the cost of installingenergy storage for power systems to 23,000 yen/kWh or
lower by 2020.

Ministry of
Economy,Trade andIndustry

Economy, Tradeand Industry

71* To improve the Japan’s
independent development ratioof oil and natural gas (including
domestic production) to over
40% by 2030.

-

F

In FY2016, production increases in some of oil andgas fields in Russia, Abu Dhabi and other countries,
even while production generally declined in existing oil
and gas fields. The government continues to support
upstream development projects such as large-scale
LNG project led by Japanese E&P companies inAustralia, contributing to improve the Japan's
independent development ratio.

72* Increase the base metal selfsufficiency ratio to more than
80%

-

B

The self-sufficiency ratio of base metal (copper) was
56% in a 2015 survey. The Government will encourage
autonomous development by Japanese companies
toward KPI achievement through: (1) Resource
diplomacy by the Japanese government andgovernmental institutions (JOGMEC, JICA, etc.); and (2)Support for securing the interests of Japanesecompanies (support for exploration and risk money
supply by JOGMEC, etc.).

Survey by
JOGMEC

Ministry of
Economy, Tradeand Industry73* Based on the Plan for theDevelopment of Marine Energy
and Mineral Resources, theGovernment develop
technologies of the sand-layer
type of methane hydrate that
ensure start of acommercialization project led byprivate sectors in around
FY2023-2027, taking theinternational situation into
account.
As for sea-floor hydrothermal
deposits, the Government will-

F

Regarding the sand-layer type of methane hydrate,
the government conducted the second offshore
production test from April to June 2017, aiming to solvea problem caused by the first offshore production test
conducted in 2013. The test produced a certain level ofachievements including the successful consecutive gas
production that lasted more than 3 weeks. However,some technical challenges remain as an increase in gas
production per unit time could not be clearly confirmed.
The thorough investigation of the test results and theircauses are under the vertification in collaboration withexternal experts.
As for sea-floor hydrothermal deposits, theGovernment will undertake technological development,-

Ministry of
Economy, Tradeand Industry

38

Ministry of
Economy, Tradeand Industry

also promote technologicaldevelopment and ascertain theamount of resources to enable
the commencement of projects
aimed at commercialization withthe participation of privatecompanies after 2023.
[Supplementary indicator]
The Government will prepare
technologies
forcommercialization of
methane hydrate by FY2018.
[Supplementary indicator]
As for sea-floor hydrothermal
deposits, the Government willconduct pilot tests for mineral
extraction and lifting in actual
marine areas in FY2017 toestablish the elemental
technologies for mineral
extraction and lifting and use
the results to conduct an
economic evaluation in FY2018.

74* Rebuild a group of top-classpetrochemical complexes thatare internationally competitive in
Asia in the next 10 years (up to2023)[Supplementary indicator] Ratioof complexes equipped withresidual oil treatment devices inJapan by the end of FY2016:
Approx. 50%[Supplementar
y indicator]
Methanehydrate: F[Supplementar
y indicator]
Sea-floorhydrothermal
deposits: F(The results are
undisclosed
since the dataobtained is forindividualcomplexes)[Supplementary
indicator]
Ratio ofcomplexes
equipped withN

Supplementary
indicator: A

resource volume assessment, etc. towards KPI
achievement. In July 2015, the Government selected the“Pilot Test commissioning consortium for mineral
extraction and lifting,” which puts together businesses
with advanced technological capabilities in therespective fields towards the pilot test to be conducted in
FY2017 for an integrated mineral mining and lifting
system in the actual marine areas. Improvement of pilot
devices for mineral extraction and collection and the
production and testing of large underwater pumps areundertaken in FY2016.
As for sea-floor hydrothermal deposits, theGovernment will undertake technological development,
resource volume assessment, etc. towards KPI
achievement. In July 2015, the Government selected the“Pilot Test commissioning consortium for mineral
extraction and lifting,” which puts together businesses
with advanced technological capabilities in therespective fields towards the pilot test to be conducted in
FY2017 for an integrated mineral mining and lifting
system in the actual marine areas. In FY2017, theGovernment successfully conducted a mineral extraction
and collection pilot test in the sea around Okinawa after
testing pilot devices for mineral extraction and collection
and large underwater pumps.
A FY2014 survey assessed that the international
competitiveness of Japanese complexes still lags behindthat of India, Singapore, South Korea, China, Taiwan
and other countries.
Against such background, the Government
established in April 2015 the “Ratio of complexes
equipped with residual oil treatment devices (treatment
capacity of the residual oil treatment device divided by
the treatment capacity of the atmospheric distillation
device)” as a supplementary indicator that illustrates theinternational competitiveness of oil refineries in Japan.
The objective is to increase the ratio of complexes

39“Overallevaluation oninternational
competitivenes
s ofpetrochemicalcomplexes” by
the Research
Association of
RefineryIntegration forGroup-

Ministry of
Economy, Tradeand Industry

residual oil
treatment
devices inJapan: Approx.
50.5%

equipped with residual oil treatment devices fromapprox. 45% as of March 31, 2014 (reference point) toapprox. 50% in three years’ time by the end of FY2016(target achievement deadline). The standard shown inthe supplementary indicator was achieved with the value
reaching 50.5% as of March 31, 2017 at the point of the“latest figures.”

Operation[Supplementary
indicator]
Survey by the
Ministry of
Economy,Trade andIndustry75* Expand the scale ofbusinesses engaged in theoverseas deployment of
excellent low-carbon technology
through JCM and otherschemes to 1 trillion yen in
cumulative total by FY2020 by
fully utilizing private-sector
initiatives.

Approx. 636
billion yen in
cumulative total
as of December
14, 2017

A

A total of 138 projects have been implemented as
projects designed to prompt the introduction of lowcarbon technology in developing countries in the form ofprivate-sector operations (business scale: 506 billionyen). Also, 112 JCM-financed projects have been
implemented (prospective business scale: approx. 130
billion yen).
While the deadline for target achievement is FY2020
with the target achievement period of 8 years, 5 years
have elapsed at the point of “latest figure.” The figure
exceeded 625 billion yen, which would be required as of
FY2017 for KPI achievement.

Survey by the
Ministry of theEnvironment
and Ministry of
Economy,Trade andIndustry

Ministry of theEnvironment76* Double the export value ofincineration equipment,
recycling equipment, etc. by
FY202013.8 billion yen(FY2016)A

The target has been achieved, with the export value
increasing to 13.8 billion yen in FY2016 from 6 billion
yen in 2015 value. The Government will continue its
efforts toward target achievement.

“Export value ofenvironmental
equipment
according toregion” by theJapan Societyof Industrial
Machinery
Manufacturers(generalincorporated
association)

Ministry of theEnvironment

40

The creation of new promising growth markets, indepth development of Local Abenomics, etc.
Policy Group: Improvements in global competitivenessof Japanese urban cities and functional
enhancement of industrial/next-generation
infrastructures

Reference No.

KPI

Latest figures

KPI
progress77• By 2020, Tokyo will be ranked a
top-three in the Global Power City
Index (fourth in 2012)

Ranked third(2017)

A

78• By 2020, 20% of the automobiles
in Japan (stock base) will have asafety driving support
device/system, which accounts for
30% of the world's total.

The current
percentage ofsuchautomobiles inJapan: 9.8%
(2016)
Japan's share ofsuchautomobiles in
the global
market: 19.5%(2015)

B

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

This KPI target was set to achieve by 2020,
meaning that it must be achieved within the next
eight years. In 2017, four and a half years later,
Tokyo was ranked third, no change from 2016.

Mori Memorial
Foundation, "Global
Power City Index
2017"

CabinetSecretariat(JapanEconomic
Revitalization
Bureau)As a safety driving support device/system, the useof advanced emergency braking systems (AEB) is
becoming popular. The (estimated) percentage of
automobiles with such a safety system (incl. a lowspeed range system) against the total number of
automobiles in Japan (excl. motor cycles) is defined
as a KPI.
The percentage of such automobiles in Japan has
increased to 9.8%, already exceeding the prorated
KPI target of 9.2% at this point. On the other hand,
Japan's share of such new vehicles in the global
market fell short of its prorated KPI target.

The Ministry of Land,
Infrastructure,
Transport andTourism, "Survey on
the Widespread Useof ASV
Technologies."
Automobile
Inspection &Registration
Information
Association,"Changes in the
Number ofAutomobiles inJapan"HIS Inc., "ECU
Shipments for AEB

CabinetSecretariat(National
Strategy Officeof Information
andCommunications Technology)

41

Applications (2015)"
79

By 2030, all “new” automobiles inJapan will have a standard safety
driving support device/system. In
addition, almost all automobiles(stock base) will have such a
device/system.

The current
percentage ofsuch "new"automobiles inJapan: 56.9%(2016)
The current
percentage ofsuchautomobiles inJapan (stockbase): 9.8%
(2016)

B

Toward the achievement of this KPI target, followup measures will be taken in accordance with midand short-term roadmaps, etc.
The current percentage of "new" automobiles witha safety driving support device/system in Japan is
56.9%, already exceeding the prorated KPI target of
46% at this point. On the other hand, the current
percentage of automobiles with a safety driving
support device/system in Japan (stock base) is
9.8%, falling short of the prorated KPI target of
12.7% at this point.
Reference No. 78 shall be positioned as aninterim target of Reference No. 79.

42

The Ministry of Land,
Infrastructure,
Transport andTourism, "Survey on
the Widespread Useof ASV Technologies"
Automobile
Inspection &Registration
Information
Association,"Changes in the
Number ofAutomobiles inJapan"

CabinetSecretariat(National
Strategy Officeof Information
andCommunications Technology)

Productivity Revolution to achieve regulation/system
reforms
Policy Group: System reforms toward investment for the
futurePromotion of "Aggressive Management"

Reference
No.

KPI

Latest figures80• The plan is to increase capital
investment to approximately 80
trillion yen a year within the next
three years (ending FY2018).

82.6 trillion yen(FY2016, theannual estimate
for the first year)

KPI
progressA

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

Capital investment in FY2016 was 82.6 trillion yen(based on the criteria set in 2011), exceeding the targetof 80 trillion yen.

Cabinet Office,"National
Economic
Accounting"

Ministry of
Economy, Tradeand Industry

43

Productivity Revolution to achieve regulation/system
reforms
Policy Group: System reforms toward investment for the
futureRealization of vital financial and capital markets

Reference
No.

KPI

Latest figures81• In the World Bank's "Ease of
Doing Business Index," Japan will
be ranked a top-three by 2020.

Currently
ranked 24th(2018)

82• By 2020, Japan will be ranked a
top-three in the World Economic
Forum's Global Competitiveness
Report.

Currently
ranked ninth(2017)

KPI
progress

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

B

This KPI target was set to achieve by 2020, meaningthat it must be achieved within the next seven years.
Four and a half years have passed as of 2017. In 2018,
Japan is ranked 24th (an increase of two ranks from theprevious year). Unfortunately, it is hard to say that the
KPI is steadily improving toward the achievement of its
target. Turning around this situation would require further
promotion of policy measures. Various measures for
improving the business environment in Japan are being
taken, led by a study meeting that was set up to drive
online/one-stop incorporation procedures, total
optimization including trade procedures, and the use of
IT for judiciary proceedings, etc. In the future, theachievement of this KPI target will be pursued throughthe promotion of the measures for improving thebusiness environment in Japan, in which relevant
coordinating ministries and agencies will pinpoint eachof the items organized by the "Liaison Committee of
Ministries and Agencies for Improving the Business
Environment."

World Bank,"Doing Business2018"

CabinetSecretariat(Japan's
Economic
Revitalization
GeneralBureau)B

This KPI target was set to achieve by 2020, meaningthat it must be achieved within the next four years. Twoand a half years have passed as of 2017. In 2017,
Japan was ranked ninth (a decrease of one rank fromthe previous year). Unfortunately, it is hard to say thatWEF The Global
Competitiveness
Reports 20172018

CabinetSecretariat(Japan's
Economic
Revitalization

44

the KPI is steadily improving toward the achievement of
its target. Turning around this situation would require
further promotion of policy measures.
In the future, the achievement of this KPI target will be
pursued through the accelerated implementation ofJapan's National Innovation System, including thepromotion of full-scale university-industry researchcollaboration.

45

GeneralBureau)Productivity Revolution to achieve regulation/system reforms
Policy Group: System reforms toward investment for the
futurePublic services/assets opened to the private sector(such as expanded use of PPP/PFI)

Reference
No.

KPI

Latest figures

83• In the next ten years (FY2013–
FY2022), the scale of PPP/PFI
business will be expanded to 21
trillion yen. Out of which, 7 trillion
yen will come from PFI businessunder rights to operate public
facilities, etc.

The scale of
PPP/PFIbusiness in
FY2013–FY2016
wasapproximately
10.8 trillion yen.
Out of which,approximately 5.6
trillion yen camefrom PFI
business underrights to operate
public facilities,
etc. (These are
actual figuresavailable in
December 2017)

KPI
progressA

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

In the "PPP/PFI Promotion Action Plan" (approvedin a 5/18/2016 meeting of the Council for Public
Private Partnership / Private Finance Initiative
Promotion), the need of reviewing the target ofbusiness scale and the refinement of the policy
measures were pointed out. In response to the
proposal, this KPI target was newly added to "Japan
Revitalization Strategy 2016," which was formulated
in June 2016.

Data from
Cabinet OfficeCabinet Office(PPP/PFI
Promotion
Office)46

Enhancing the ability to create innovations and ventures,developing human resources highly motivated to take on
new challenges, etc.
Policy Group: Enhancing the ability to create innovationsand ventures

Reference No.

KPI

Latest figures

KPI
progress

Details of KPI progress

84• Within the next five years(by the end of FY2017),
Japan will be ranked top in
the Global Innovation Index(in technologicalcompetence).

Currently ranked
eighth (2017–2018)

B

In 2007–2008, Japan's ranking in the Global
Innovation Index dropped from top to fourth.
After that, Japan's ranking hovered between
fourth and fifth. But in 2016–2017, Japan's
ranking dropped by three ranks from 2015–2016 to eighth. Japan remained in the eighth
place in 2017–2018.
In the future, the achievement of this KPItarget will be pursued through the accelerated
implementation of Japan's National Innovation
System, including the promotion of full-scale
university-industry research collaboration.

WEF The Global
Competitiveness
Reports

Cabinet Office(Director General for
Science, Technology
and Innovation
Policy)85• By 2025, private-sector
companies will triple theirinvestment in universities andnational research anddevelopment agencies.

Currently 124.4 billion
yen (FY2016 actual)B

The actual investment in FY2014 was 115.1
billion yen. In FY2015, the investment hoveredaround 120.9 billion yen, falling short of theprorated KPI target of 166.3 billion yen at thispoint.
In accordance with the "New Economic
Policy Package," which was proposed in
December 2017, the achievement of this KPItarget will be pursued in the future throughfurther promotion of new research anddevelopment support methods and open
innovations, which encourages private
research and development investment.

Ministry of Internal
Affairs andCommunications,"Survey Results of
Scientific andTechnologicalResearch"

Cabinet Secretariat(Japan's Economic
Revitalization
General Bureau)

47

Source of KPIs

Main Supervising
Ministry/Agency

86• The total ofgovernment/private researchand development investment
shall be 4% or more of the
GDP.

3.42%
(FY2016 actual)B

The actual research and development
investment in FY2016 decreased by 0.13%
from FY2015. The achievement of this KPItarget will be pursued in the future through thesteady implementation of the 5th Science andTechnology Basic Plan, which was formulated
in December 2016, and through theembodiment of the "Initiative for Expanded
Government/Private Investment in Science andTechnology."

Ministry of Internal
Affairs andCommunications,"Survey Results of
Scientific andTechnologicalResearch"

Cabinet Office(Director General for
Science, Technology
and Innovation
Policy)87• In the next ten years (ending
in FY2023), at least ten
universities in Japan will beranked among Top 100 Global
Universities.

The Times Higher
Education, "World
University Rankings
2018": 2
The Times Higher
Education, "World
Reputation Rankings
2017": 6
QS (QuacquarelliSymonds Ltd), "World
University Rankings
2018": 5
Shanghai Jiao Tong
University, "Academic
Ranking of World
Universities 2017": 3

B

In November 2013, the "National University
Reform Plan" was proposed, which stipulated
the development of international-standard
education research, proactive support for
students from overseas, flexible personnel
management and salary systems, enhanced
governance functions, etc.
A new project called, "Top Global University
Project," was established (7.65 billion yen
allocated in the FY2014 budget). After the
public offering and adoption processes,
universities that were actively promotinginternationalization began to receive special
support in October 2014.
None of the targets of these global university
rankings have reached their prorated levels at
this point. The achievement of these KPItargets will be further pursued in the future.

The Times Higher
Education, "World
University Rankings,""World Reputation
Rankings," QS,"World University
Rankings," Shanghai
Jiao Tong University,"Academic Ranking ofWorld Universities,"
etc.

Ministry of
Education, Culture,
Sports, Science andTechnology

88• By the end of FY2020, thenumber of patent licensing byuniversities will be increased
by 50%.

The number ofpatents, etc., licensed
by universities, etc.
(national, public andprivate universities,
including juniorcolleges), national,
public and private

A

Concerning the increases in patent licensing
by universities, the KPI target was set toachieve by the end of FY2020 vs. the FY2013
level. The prorated KPI target for FY2014 was
11,264. The actual FY2015 figure was 11,872.
It looks KPI is moving toward the achievementof the target.

Ministry of Education,
Culture, Sports,
Science andTechnology, "Progressof Universities, etc. in
Implementing
Industry-University
Cooperation"

Ministry of
Education, Culture,
Sports, Science andTechnology

48technical colleges,
and inter-university
research institutes(patent licensing or
patent assignments
including those in thephase of "Right toReceive Patents"):
11,872 (FY2015)89

By the end of FY2020, thenumber of researchers
migrating between different
sectors in Japan will be
increased by 20%.

The current number of
researchers migrating
between different
sectors in Japan:
10,389 (FY2016)

B

According to a survey conducted by the
Ministry of Internal Affairs andCommunications, the number of suchresearchers decreased in FY2016 by 803 from
FY2015, falling short of the prorated KPI targetof 11,020 at this point.

Ministry of Internal
Affairs andCommunications,"Survey Results of
Scientific andTechnologicalResearch"

Cabinet Office(Director General for
Science, Technology
and Innovation
Policy)90

Through the period of the 3rd
medium-term objectives andplans of national university
corporations (FY2016–
FY2021), the percentage ofthe expense allocationneeded for each university todrive its strategic reforms forfunctional enhancement(including reforms during thereform acceleration period in
FY2013–FY2015) and theresulting operational
subsidies, etc., will be
increased to around 40%.

32.5% (This figure is
FY2016 actual. The
percentage of theexpense allocationand the resulting
operational subsidies,etc., were calculatedby the Ministry of
Education, Culture,
Sports, Science andTechnology.)

B

With the achievement of the KPI target for"Japan Revitalization Strategy 2014," a new
KPI target was set for "Japan Revitalization
Strategy 2016." At present, the target of around
40% has not been achieved. The achievementof this KPI will be pursued further through theperiod of the 3rd medium-term objectives andplans.

Calculations by
Ministry of Education,
Culture, Sports,
Science andTechnology

Ministry of
Education, Culture,
Sports, Science andTechnology

91• By the end of FY2020, thenumber of full-time university
teachers under the age of 40
will be increased by 10%.

43,452 (according to
FY2016 interim
report)B

This KPI is a numerical target stipulated inthe "5th Science and Technology Basic Plan,"which was approved in a Cabinet meeting inJanuary 2016. This target is based on thecorresponding figure for FY2013 (43,763). In

Statistical survey onschool teachers

Ministry of
Education, Culture,
Sports, Science andTechnology

49

FY2016, the number of such teachers
decreased by 311 from FY2013, falling short ofthe prorated target at this point.
The achievement of this KPI target will be
pursued in the future through the "Leading
Initiative for Excellent Young Researchers," inwhich excellent, young researchers areencouraged to play important roles in stable,
independent posts, and through the promotionof personnel management and salary system
reforms at national universities such as annual
salary systems and cross-appointment
systems.
92• By the end of FY2020, thenumber of large collaborative
research programs between
private-sector companies anduniversities or research anddevelopment agencies will be
doubled.

1) The number oflarge collaborative
research programs(worth 10 million yen
or more) between
private-sector
companies anduniversities, etc.
(national, public andprivate universities,
including juniorcolleges), national,
public and private
technical colleges,
and inter-university
research institutes:
803 (FY2015)
2)
The number of large
collaborative research
programs (worth 10
million yen or more)
between privatesector companies andA"Progress of Universities, etc. in
Implementing Industry-University Cooperation(FY2015)" was published in January 2017. The
number of large collaborative research
programs between universities, etc. andprivate-sector companies increased by 112
from FY2014.
On the other hand, according to a survey
conducted by the Cabinet Office in FY2016, thetotal number of large collaborative research
programs between research and development
agencies and private-sector companies in
FY2015 was 201.
In FY2015, the number of such research
programs increased by 174 from FY2014,
exceeding the prorated target of 887 at thispoint.

501) Ministry of
Education, Culture,
Sports, Science andTechnology, "Progressof Universities, etc. in
Implementing
Industry-University
Cooperation"2) Cabinet Office,"Survey on Scienceand Technology
Related Activities by
Incorporated
Administrative
Agencies, etc."

Cabinet Office(Director General for
Science, Technology
and Innovation
Policy)research anddevelopment
agencies: 201(FY2015)93• By the end of FY2020, thenumber of Japan’s secretariat
positions at international
standardization organizations
will be increased to more than100.

100 (by the end of
2016)

A

In the "Japan Revitalization Strategy 2016,"
a new KPI target was set to increase thenumber of Japan’s secretariat positions atinternational standardization organizations tomore than 100 by the end of 2020. As a result,the number reached 100 at the end of 2016.
This KPI target was set to achieve by 2020,
meaning that the time given to achieve thistarget is five years. The first two years ended at
the point when the latest figure was publicized.
At present, this KPI already exceeded thetarget of 100. The latest number of Japan’ssecretariat positions will be available in early
2018.

Data of Ministry of
Economy, Trade andIndustry

Ministry of
Economy, Trade andIndustry94• In the next ten years (endingin 2023), the time required forthe acquisition of right will behalved to an average of 14
months.

An average of 14.6
months (FY2016)

A

Effective in 2014, a target was set to reduce
the time required for the acquisition of rightfrom 29.6 months in 2014 to 14 months by
2023. This target was set to achieve by 2023,
meaning that the time given to achieve thetarget was ten years. The first three years
ended at the point when the latest figure waspublicized. The current KPI is below theprorated target of 24.92 months at this point,
showing relatively steady progress.

Survey by the Japan
Patent Office

Ministry of
Economy, Trade andIndustry

95• By 2022, the ratio of theamount of capital investment
to venture companies to thenominal GDP will be doubled.

0.025% (the averageof three years from2014 to 2016)

B

The current KPI is below the prorated targetof 0.0325% (three-year average) at this point.
The KPI for 2016 (single year) increased by
0.005% from 2014 to 0.028%. The
achievement of this KPI target will continue tobe pursued through the construction of aventure ecosystem, including the promotion of"Venture Challenge 2020."

Cabinet Office,"National Economic
Accounting"
Venture EnterpriseCenter, "VECYEARBOOK 2016"

Ministry of
Economy, Trade andIndustry51

The base figure for this KPI (the average ofthree years from2012 to 2014) was set at
0.028% when Japan Revitalization Strategy
2016 was formulated. Because of the change
in how to calculate the GDP in December
2016, this figure was recalculated to 0.026%.
From this point forward, the progress of thisKPI will be followed up using 0.026%.

52

Enhancing the ability to create innovations and ventures,developing human resources highly motivated to take on
new challenges, etc.
Policy Group: Enhancement of human resource
capabilities through multifaceted approaches tohuman resources development and securing

Referenc
e No.

KPI

Latest figures

KPI
progress

96

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency• By 2020, the percentage ofteachers capable of teaching inclass using IT devices will be
increased to 100%
(71.4% in FY2014)

75.0%(FY2016)

B

This KPI target was set to achieve by 2020, meaningthat the time given to achieve it was six years. The firsttwo years ended at the point when the "latest figure" waspublicized. The percentage of teachers capable ofteaching in class using IT devices increased from 71.4%
to 75.0%. However, the prorated KPI target of 80.9% atthis point has not been achieved. The policy measuresneed to be promoted further.

Ministry of
Education, Culture,
Sports, Scienceand Technology,"Survey about ICTin Education at
Schools"

Ministry of
Education,
Culture, Sports,
Science andTechnology

97• By FY2020, the percentage ofprefectures, cities, towns andvillages formulating development
plans for IT environment will be
increased to 100%.
(31.9% in FY2014)

38.3%(FY2016)

B

This KPI target was set to achieve by 2020, meaningthat the time given to achieve it was six years. The firsttwo years ended at the point when the "latest figure" waspublicized. The percentage of prefectures, cities, towns
and villages formulating development plans for IT
environment increased from 31.9% to 38.3%. However,the prorated KPI target of 54.6% at this point has not beenachieved. The policy measures need to be promoted
further.

Data from Ministryof Education,
Culture, Sports,
Science andTechnology

Ministry of
Education,
Culture, Sports,
Science andTechnology

98• By FY2020, the percentage of
regular classrooms with wireless
LAN will be increased to 100%(27.2% in FY2014)

33.2%(FY2016)

B

This KPI target was set to achieve by 2020, meaningthat the time given to achieve it was six years. The firsttwo years ended at the point when the "latest figure" waspublicized. At schools where LAN is available, thepercentage of regular classrooms with wireless LAN
increased from 27.2% to 33.2%. However, the prorated

Ministry of
Education, Culture,
Sports, Scienceand Technology,"Survey about ICTin Education at

Ministry of
Education,
Culture, Sports,
Science andTechnology

53

KPI target of 51.5% at this point has not been achieved.
The policy measures need to be promoted further.

Schools"99

2018• The number of businesspersons studying at universities,
vocational schools, etc. will be
increased to 240,000 in the next
five years (120,000 in 2013)

Approximately
120,000 (thefigure available
as of
September
2016; the figure
for FY2015,
including partof the figure for
FY2013)B

The review of survey items for "School Basic Survey,"
private senior high school surveys, and others enabledmore accurate understanding of the number of students
attending regular courses and students attending shortterm programs (in academic certificate systems, credited
auditor/auditing student systems, etc.). Using the new
method based on these surveys, the latest figure wascalculated to be approximately 490,000. Given thisbackground, in the "Investments for the Future Strategy
2017,” the original KPI target was revised to read, "The
number of business persons studying at universities,
vocational schools, etc. will be increased to 1 million by2022."
Based on the previous KPI calculation method, thenumber of business persons studying at universities,
vocational schools, etc. was approximately 120,000 as of
September 2016.

Ministry of
Education, Culture,
Sports, Scienceand Technology,"School Basic
Survey,""Improvements in
Junior College
Education,""Reform of
Educational
Content atUniversities," Data
of MEXT (privatesenior high school
surveys)

Ministry of
Education,
Culture, Sports,
Science andTechnology

100• Within the next three years(ending in 2017), labor movementof 20,000 people without loss of
employment will be supported
through the functional
enhancement of Industrial
Employment Stabilization Centerof Japan and the use of privatesector human resourcesbusiness.

33,000(FY2015–
FY2016 total)

A

This KPI target was set to achieve by 2017, meaningthat the time given to achieve it was three years. The firsttwo years will end at the point when the "latest figure" isavailable. The number of people supported in labor
movement without loss of employment is 33,000, alreadyexceeding the prorated KPI target of 20,000 at this point.

Data of Ministry of
Health, Labour andWelfareMinistry of
Health, Labourand Welfare

101

2020
• Employment rate of people
aged 20 to 34: 79%

77.7% (as of
2016)

A

This KPI target was set to achieve by 2020, meaningthat the time given to achieve it was eight years. The first
five years ended at the point when the "latest figure" waspublicized. The employment rate of people aged 20 to 34
increased from 74.4% to 77.7%, already exceeding theprorated KPI target of 77.3％ at this point.

Ministry of Internal
Affairs andCommunications,"Labor Force
Survey"Ministry of
Health, Labourand Welfare

54

102

• In the next five years (ending in2018), the number of people
unemployed for six months ormore will be reduced by 20%(1,420,000 in 2013)

1,040,000(2016)A

This KPI target was set to achieve by 2018, meaningthat the time given to achieve it was five years. The first
third years ended at the point when the "latest figure" waspublicized. The number of people unemployed for six
months or more decreased from 1,420,000 to 1,040,000,
already falling below the prorated KPI of 1,250,000 at thispoint.

Ministry of Internal
Affairs andCommunications,"Labor Force
Survey"Ministry of
Health, Labourand Welfare

103• In the next five years (ending in2018), the rate of job changes(among general workers
excluding part-time workers) will
be increased to 9%.

8.0% (2016)

B

This KPI target was set to achieve by 2018, meaningthat the time given to achieve it was five years. The first
three years ended at the point when the "latest figure" waspublicized. The rate of job changes (among general
workers excluding part-time workers) decreased from
8.7% to 8.0%. As the rate was initially expected toincrease to 8.9% in 2016, the progress to date is
unsatisfactory. The policy measures need to be promoted
further.

Ministry of Health,Labour andWelfare, "Survey on
Employment
Trends"

Ministry of
Health, Labourand Welfare

104

2020
• Employment rate of people
aged 20 to 64: 81% (75% in
2012)

79.2% (2016)

A

This KPI target was set to achieve by 2020, meaningthat the time given to achieve it was eight years. The first
four years ended at the point when the "latest figure" waspublicized. The employment rate of people aged 20 to 64
increased from 75.2% to 79.2%, exceeding the KPI targetof 78.1% at this point.

Ministry of Internal
Affairs andCommunications,"Labor Force
Survey"Ministry of
Health, Labourand Welfare

105

Among private vocational
education and training institutionscommissioned to provide public
vocational training, and among
those certified to provide training
to support job seekers, thepercentage of institutions thatreceive an introduction course of"Vocational Training Service
Guideline" will be increased to100% in the next three years(ending in 2017).

2,047 private
vocational
education andtraining
institutions
across thecountry
received an
introduction
course of"Vocational
Training
Service
Guideline" (asB

In FY2016, the number of private vocational educationand training institutions commissioned to provide public
vocational training, and those certified to provide training
to support job seekers, was 2,198. Of the 2,198, 2,047
institutions (about 93%) received an introduction course of"Vocational Training Service Guideline" before March 31,
2017, falling short of the KPI target of 100%. In themeantime, it was notified on October 6, 2017, that
effective in FY2018, private vocational education andtraining institutions must meet the requirement of receiving
an introduction course of "Vocational Training Service
Guideline" before they are commissioned to provide public
vocational training, and before certified to provide training
to support job seekers.

Data of Ministry of
Health, Labour andWelfareMinistry of
Health, Labourand Welfare55

of March 31,
2017)
106

• In the next five years (ending in2019), a mechanism to verify andimprove the quality of vocational
training in each region will be
introduced to 47 prefectures.

47 prefectures(FY2016)A

Concerning the mechanism to verify and improve thequality of vocational training in each region, privatecompanies, industry groups, private vocational educationand training institutions, and administrative agencies
jointly established a project to develop and verify
vocational training courses in June 2014 so that the
chance of finding a job will be increased based oncompany needs. All 47 prefectures already started the
project, achieving the KPI target (100%).

Data of Ministry of
Health, Labour andWelfareMinistry of
Health, Labourand Welfare

107

2020
• The number of university
students, etc. studying abroad
will be doubled from 60,000 to
120,000.

96,641 (as of
FY2016)A

The time given to achieve this KPI target is eight years
from 2013 to 2020. The first four years ended at the point
when the "latest figure" was publicized. The number ofuniversity students, etc. studying abroad increased from60,000 to 96,641, exceeding the prorated KPI target(90,000) at this point.
Specifically, a program to encourage students to study
abroad, "TOBITATE! NEXT JAPAN" was launched tonurture opportunities for young people studying abroad.
On top of that, in order to reduce financial burdens on
Japanese students studying abroad, the expansion ofscholarship and government-subsidized support areunderway through a new government-private program tosupport those students, "TOBITATE! Young Ambassador
Program."

Survey on
Japanese students
Studying Abroad
Based onAgreements, etc.
(Japan Student
Services
Organization)

Ministry of
Education,
Culture, Sports,
Science andTechnology

108

2020
The number of foreign student
acceptance will be doubled from
140,000 to 300,000.

188,384 (as of
May 1, 2017)* The numberof foreign
students
studying atuniversities(incl. graduate
schools), juniorcolleges,

B

The time given to achieve this KPI target is eight years
from 2013 to 2020. The first four years ended at the point
when the "latest figure" was publicized. The number offoreign students studying at higher educational institutionsin Japan increased from 135,519 to 188,384 (an increaseof approximately 53,000) but fell short of the prorated KPItarget at this point (an increase of approximately 91,000).
The environment to accept foreign students in Japan will
be improved by enhancing scholarship programs andthrough the "International Student Employment Promotion

Japan Student
Services
Organization,"Survey on
International
Students in Japan"

Ministry of
Education,
Culture, Sports,
Science andTechnology

56technicalcolleges,
vocational
schools(specialist
course), andunder
preparatory
education
curriculums.

Program." To attract foreign students, each university will
support initiatives for special programs including Japanese
language education for foreign students in cooperation
with local governments and industries. At the same time,
universities actively promoting internationalization will be
provided with special support through the "Top Global
University Project (6.3 billion yen allocated in FY2017
budget)." In order to achieve this KPI target, these politicalmeasures will be taken in a comprehensive manner. In themeantime, the number of foreign students currently
studying at Japanese language schools for learning
Japanese before entering higher educational institutions inJapan is 78,658 (as of May 1, 2017). If this number isadded, the number of foreign students comes to 267,042
people.

109

2017
Improved capability of English
language teachers in terms of acommand of English (Thepercentage of English language
teachers with a TOEFL iBT score
around 80 or higher: 28% to 50%
at junior high schools, 52% to
75% at senior high schools)

32.0% at juniorhigh schools
and 62.2% atsenior highschools (as ofDecember
2016)

B

The time given to achieve this KPI target is five years
from 2013 to 2017. The first four years ended at the point
when the "latest figure" was publicized. The percentage ofEnglish language teachers with a TOEFL iBT score
around 80 or higher increased from 28% to 32.0% atjunior high schools, and from 52% to 62.2% at senior highschools. However, both figures fell short of their prorated
KPI targets (45.6％ at junior high and 70.4％ at seniorhigh) – the increase of KPI progress* divided by the time
given (five years from 2013 to 2017). The achievement of
this KPI target needs to be pursued further in the future.
Effective this fiscal year, the achievement of this KPItarget will be pursued with a specific KPI target set foreach prefecture. The Ministry of Education, Culture,
Sports, Science and Technology is tracking, publicizing,
and continuing follow-up on the target of each prefecture.
* The difference between the actual and target figures atthe end of December 2012.

"Survey on English
Language
Education”

Ministry of
Education,
Culture, Sports,
Science andTechnology

110

2018
The number of International
Baccalaureate accredited

50 DP schools,
21 MYPschools, 44

B

The number of International Baccalaureate accredited
schools, etc. (hereinafter, "IB") increased from 19 DP
schools, 11 MYP schools, and 24 PYP schools (including

Data of Ministry of
Education, Culture,
Sports, Science

Ministry of
Education,
Culture, Sports,

57

schools, etc. will be increased to
200 (from current 16)

PYP schools(as of October2017)* This includes
nominatedschools: 17 DP
schools, 7 MYP
schools, 21
PYP schools

3, 4, and 10 nominated schools, respectively) as of June
2013, to 50 DP schools, 21 MYP schools, and 44 PYP
schools (including 17, 7, and 21 nominated schools,
respectively) as of October 2017. However, the number
fell short of the prorated KPI target. In order to achieve
this KPI target, 85 schools must be added to the list by theend of the final year, 2018.
In a bid to achieve this KPI target, several approaches
were taken as follows: To facilitate the introduction of IB,
Japanese schools started in 2015 Japanese DP (aprogram in which students can study part of the IB
subjects in Japanese language); To reduce burdens on
students, a preferential measure for the curriculum wasintroduced in August 2015 to raise the upper limit of IB
subject credits that can be added to the number of credits
required for graduation; In addition, to increase thebenefits of IB, the use of IB credits for the selection
process of university entrants was promoted.
After 2018, a consortium will be established as part ofenvironment development that plays a core role in thedevelopment of IB in Japan. With the help of theconsortium, the achievement of this KPI target will be
pursued further by taking initiatives in promoting therecognition and better understanding of IB.
* In the International Baccalaureate programs, DP(Diploma Programme) covers students "aged 16 to 19,"
MYP (Middle Years Programme) covers students "aged 11
to 16," and PYP (Primary Years Programme) covers pupils"aged 3 to 12."58

and Technology

Science andTechnology

Enhancing the ability to create innovations and ventures,developing human resources highly motivated to take on
new challenges, etc.
Policy Group: Multifaceted approaches to human resources
development and securing, etc., work style reform,
employment system reform

Reference
No.

KPI

Latest figures

111

The end of FY2020
The percentage of involuntary nonregular employees is 10% or less(18.1% in 2014)

15.6% (2016)

KPI
progress
B

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

This KPI target was set to achieve by the end of
FY2020, meaning that the time given to achieve it was
six years. The first two years ended at the point when the"latest figure" was publicized. The percentage of
involuntary non-regular employees decreased from
18.1% to 15.6%. However, it exceeds the prorated KPItarget of 15.4％ at this point. The policy measures need
to be promoted further.

Ministry ofInternal Affairs
andCommunications, "Labor Force
Survey"Ministry of
Health, Labourand Welfare59Enhancing the ability to create innovations and ventures,developing human resources highly motivated to take on
new challenges, etc.
Policy Group: Multifaceted approaches to human resources
development and securing, etc., participation ofdiverse workers

Referenc
e No.

KPI

Latest figures

KPI
progress

112• By 2020, the percentage ofwomen in leadership positions will
be increased to at least 30%.

Promotion of
women atprivate-sector
companies (thepercentage ofwomen inmanager (orequivalent)
positions is
10.3% in 2016)

B

Promotion of
woman
national
government
employees

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

The percentage of women in manager (or equivalent)
positions, which are typical examples of "leadership
positions" in private-sector companies, increased from
8.5% in 2013 to 10.3% in 2016. At the same time, thegrowth rate in the past three years from 2013 to 2016 (atan average of 0.6%/year) increased by a factor of about
1.36, compared to the past five years from 2011 to 2016(0.44%/year).
The "Fourth Basic Plan for Gender Equality," which wasapproved in a Cabinet meeting in December 2015, not only
set targets for each hierarchical position but also set
targets to increase the candidates of women to bepromoted to future leadership positions. Furthermore, theBasic Plan included not just the development of
comfortable working environment such as continued
employment and work-life balance, but also providing abroad range of support including training and education ina venturous manner. This movement will be further
accelerated through activities in line with the Basic Plan.

Ministry of
Health, Labourand Welfare,"Basic Survey on
Wage Structure"

Cabinet Office(Gender
Equality
Bureau)The percentage of women in ministry section chief (orequivalent) positions, which are typical examples of"leadership positions" in national government offices,increased from 3.1% of 2014 to 4.4% in 2017. At the sametime, the growth rate in the past three years from 2014 to

Cabinet Bureauof Personnel
Affairs, "Followup of Promotionof Woman60

(thepercentage ofwomen inministry section
chief (orequivalent)
positions:
4.4% in 2017)2017 (at an average of 0.43%/year) increased by a factor
of about 1.2, compared to the past five years from 2012 to2017 (0.36%/year).
The "Fourth Basic Plan for Gender Equality," which wasapproved in a Cabinet meeting in December 2015, not only
set targets for each hierarchical position but also set
targets to increase the candidates of women to bepromoted to future leadership positions. Furthermore, theBasic Plan included not just the development of
comfortable working environment such as continued
employment and work-life balance, but also providing abroad range of support including trai ning and education ina venturous manner. This movement will be further
accelerated through activities in line with the Basic Plan.

National
Government
Employees andthe Use of Child
Care Leaves, etc.
by National
Government
Employees"

113

2020
• Employment rate of women aged
25 to 44: 77% (68% in 2012)

72.7% (as of
2016)

A

This KPI target was set to achieve by 2020, meaning thatthe time given to achieve it was eight years. The first four
years ended at the point when the "latest figure" waspublicized. The employment rate of women increased from
68% to 72.7%, exceeding the prorated KPI target of 72.5%
at this point.

Ministry ofInternal Affairs
andCommunications,"Labor Force
Survey"Ministry of
Health, Labourand Welfare

114

2020
• Rate of continued employment of
women before/after the firstchildbirth: 55% (38% in 2010)

53.1% (as of
2015)

A

The latest figure shows that the achievement of this KPItarget is steadily progressing.

National Instituteof Population andSocial Security
Research,"AnnualPopulation andSocial Security
Surveys"

Ministry of
Health, Labourand Welfare

115

2020
• The rate of men taking child careleave: 13% (2.63% in 2011)

3.16% (as of
2016)

B

This KPI target was set to achieve by 2020, meaning thatthe time given to achieve it was nine years. The first five
years ended at the point when the "latest figure" waspublicized. The rate of men taking child care leaveincreased from 2.63% to 3.16%. However, as this KPI was
expected to increase to 8.39% by this time, the progress of
this KPI is unsatisfactory. The policy measures need to bepromoted further.

Ministry of
Health, Labourand Welfare,"Basic Survey ofGender Equality
in Employment
Management"

Ministry of
Health, Labourand Welfare

61

116

2020
• The rate of men taking family careleave right after their spouse giving
birth to their children: 80%

55.9% (as of
2016)

117

• The capacity of nursery schools
for approximately 500,000 children
will be added in FY2013–FY2017

Added capacityof nurseryschools:
Approximately
428,000
children(FY2013 FY2016)118• By the end of FY2017, children on
childcare waiting lists will beeliminated(24,825 children as of April 1, 2012)

26,081 children(as of April 1,
2017)

B

This KPI target was set to achieve by 2020.The time
given to this KPI target is four years after the "latest figure"was publicized. To achieve the target, the KPI should be
increased at an average rate of about 6%/year from now
on. The policy measures need to be promoted further.

Commissioned
surveys andresearch(Cabinet Office)Cabinet Office(Council forChildren andA

According to the counting results announced on
September 1, 2017 (as of April 1, 2017), the capacity for
approximately 428,000 children was secured including thecorporate-driven childcare services that started in April
2016 in FY2013–FY2016. By the end of FY2017, thecapacity for 593,000 children will be secured (plan).
On the other hand, given the sharp increases in theemployment rate of women and the number of applicants
for child care services, a policy measure called, "Child
Care Relief Plan," was formulated in June 2017 to add thecapacity of nursery schools for 320,000 children, in order toeliminate children on childcare waiting lists and to deal withthe woman employment rate of 80% in the five years from
FY2018 to the end of FY2022. Under these circumstances,the corresponding sentence in the "Investments for the
Future Strategy 2017" was revised to read, "Children on
childcare waiting lists will be eliminated in accordance withthe "Child Care Relief Plan," while promoting theempowerment of women at the same time." In themeantime, the "New Economic Stimulus Package," which
was formulated on December 8, 2017, stipulates that the"Child Care Relief Plan" will be moved up to add thecapacity of nursery schools for 320,000 children by the endof FY2020. In accordance with the above procedure, theachievement of this KPI target will be pursued steadily.

Ministry of
Health, Labourand Welfare,"CountingResults of "Planfor Accelerated
Elimination ofChildren on
Childcare Waiting
Lists"(September 1,
2017)

Ministry of
Health, Labourand Welfare

B

This KPI target was set to achieve by the end of FY2017.
The time given to achieve this KPI target is one year afterthe "latest figure" was publicized. The capacity of nurseryschools is expanding at a faster pace than the targeted.
However, because of the significant increase in the numberof children on childcare waiting lists, the number of such

Ministry of
Health, Labourand Welfare,"Report on
Nursery Schools,
etc."

Ministry of
Health, Labourand Welfare

62Child‐rearing)children increased from the previous year.
As mentioned in Reference No. 117, the corresponding
sentence in the "Investments for the Future Strategy 2017"
was revised to read, "Children on childcare waiting lists will
be eliminated in accordance with the "Child Care Relief
Plan," while promoting the empowerment of women at thesame time." In accordance with the above procedure, theachievement of this KPI target will be pursued steadily.
119• Approximately 90,000 of childcare
human resources will be secured In
FY2013–FY2017

439,000(October 2016)

A

The time given to achieve this KPI target is five years,
and the first three years ended at the point when the "latest
figure" was publicized. In the three years from FY2013 toFY2016, the number of childcare workers at nurseryschools increased by approxi mately 58,000 from 381,000
to 439,000 (comparison: the average annual growth rate[+90,000 children /5 years] x duration (3 years) = +54,000).
As mentioned in Reference No. 117, the corresponding
sentence in the "Investments for the Future Strategy 2017"
was revised to read, "Children on childcare waiting lists will
be eliminated in accordance with the "Child Care Relief
Plan," while promoting the empowerment of women at thesame time." In accordance with the above procedure, theachievement of this KPI target will be pursued steadily.

Data of Ministryof Health, Labourand Welfare

Ministry of
Health, Labourand Welfare120• Approximately 300,000 afterschool childcare centers will be
added by the end of FY2019

234,710 (as of
2017)

A

The number of enrolled children increased by 234,710
from 936,452 (the first year: FY2014) to 1,171,162(FY2017). The KPI target is the addition of approximately
300,000 in five years. Because about 80% of the target has
already been added in the first three years, theachievement of this KPI target is considered progressing
steadily.
In the meantime, the "New Economic Stimulus
Package," which was formulated on December 8, 2017,
stipulates that based on the "Overall Plan for After-SchoolChildcare" the additional capacity of after-school childcare
centers for 300,000 will be moved up to the end of the next
fiscal year from the end of FY2019.

Ministry of
Health, Labourand Welfare,"Status of theProgram forSound
Upbringing ofChildren after
School (afterschool childcare
centers)"

Ministry of
Health, Labourand Welfare

121

2020

63.6% (2016)

A

This KPI target was set to achieve by 2020, meaning that

Ministry of

Ministry of63• Employment rate of people aged
60 to 64: 67% (58% in 2012)

122

2020
• Effective employment rate ofpersons with disabilities: 2.0%
(1.69% as of June 1, 2012)

1.97% (as ofJune 1, 2017)A

the time given to achieve it was eight years. The first four
years ended at the point when the "latest figure" waspublicized. The employment rate of people aged 60 to 64
increased from 57.7% to 63.6%, exceeding the prorated
KPI target of 62.4％ at this point.

Internal Affairs
andCommunications,"Labor Force
Survey"Health, Labourand WelfareThis KPI target was set to achieve by 2020, meaning thatthe time given to achieve it was eight years. The first five
years ended at the point when the "latest figure" waspublicized. The effective employment rate of persons withdisabilities increased from 1.69% to 1.97%, exceeding theprorated KPI target of 1.88％ as of 2017, as compared to

Ministry of
Health, Labourand Welfare,"Report on
Employment of
Persons with
Disabilities"

Ministry of
Health, Labourand Welfare

Immigration
Bureau of Japan,
Ministry ofJusticesurveyCabinet Office( Economic andFiscalManagement)

the KPI target of 2.0% stipulated it the "Japan
Revitalization Strategy (2013)."This KPI target will be revised to 2.2% along with theincrease in the mandatory employment rate effective in
April 2018. In addition to the existing measures such assupport for employment and work commitment, thosecompanies that have not employed any person withdisability will be encouraged into employing persons withdisabilities.
123• Aim to recognize 5,000 highlyskilled foreign professionals by theend of FY2017 and further10,000
highly-skilled foreign
professionalsby the end of FY2020.

9,728
cases(Septemb
er 2017)

A

While the accumulated number of recognized cases
since the recognition program began in May 2012 hasbeen 845 cases by the end of 2013, the number of newly
recognized cases has increased remarkablyafter the
program was revised in December 2013. If we were to start
our assessment as of January 2014 after the program wasrevised, whereas the deadline for achieving the objective isthe end of 2017 and the time provided to achieve thisobjective is four years,3 years and 8 months would haveelapsed as of the release of the “latest figure.”The
cumulative recognitions reached 9,728 cases, therby
achieving the KPI of reaching 5,000 cases by the end of
2017.

64

Taking in Overseas Growing Markets

Reference No.

KPI

Latest figures

124• Raise FTA ratio to 70% (2012:
18.9%) by 201840.0% (the ratioof trade amounts
with countries
with which E PA /FTA has enteredinto force or beensigned to Japan’s
total amount oftrade as ofJanuary (basedon 2016 trade
amount).

125• Sign and/or achieve entry into
force of investment-relatedagreements (investment
agreements and economic
partnership agreements withinvestment chapters) covering
100 countries/regions by 2020.

44
countries/regions(January 2018)

KPI
progress

Details of KPI progress

Source of KPIs

Main
Supervising
Ministry/Agency

B

The promotion of economic partnership is producing
results including: the Japan-Australia EPA that enteredinto force in January 2015, the Japan-Mongolia EPA thatentered into force in June 2016, the TPP that was agreed
at the Ministerial level among11 countries in November
2017, and the negotiations of the Japan-EU EPA that was
finalized in December 2017.
This KPI measures the ratio of trade value withcountries with which EPA/FTA has entered into force or
been signed to total trade value of Japan, and depends
on the progress of the TPP, which was agreed at the
Ministerial level among 11 countries, as well as theJapan-EU EPA for which the Government is striving forearly conclusion, and also the ongoing EPA negotiations
including the RCEP and the Japan-China-South Korea
FTA. Therefore, the progress needs to be monitored
carefully.

Ministry of
Finance, "Trade
Statistics"

CabinetSecretariat(Office ofAssistant Chief
CabinetSecretary(foreign affairs))

B

In February 2017, the Japan-Israel Investment
Agreement was signed and entered into force in Octoberafter the Diet's approval in June. Additionally, in April
2017, the Japan-Saudi Arabia Investment Agreement, theJapan-Uruguay Investment Agreement, and the JapanIran Investment Agreement entered into force. In
September 2017, the Japan-Oman Investment
Agreement and the Japan-Kenya Investment Agreement
entered into force. Furthermore, other investment
agreement negotiations started in the same year (2017)with Cote d'Ivoire, Bahrain, Turkmenistan, Armenia,
Georgia, Jordan, Senegal, Kirgyz, Nigeria, and Zambia,

Investment Policy
Division

Ministry ofForeign Affairs

65and in January 2018 with Ethiopia. If all these investment
agreements are entered into force, 91 countries/regions
will be covered. The achievement of this KPI target will be
pursued by steadily moving ahead with these agreements
and by aiming to launch new negotiations.
126•Double the export value of

14.7 trillion yen(FY2015)

B

Whereas the time limit for achieving the target is
FY2020 with the period of 10 years, 5 years (2 years and9 months from the formulation of “The Japan
Revitalization Strategy”) passed at the time of the “latest
figure.”
The export value of SMEs (medium enterprises aredefined as those with less than 1,000 employees)
increased from 12.6 trillion yen to 14.7 trillion yen in four
years from FY2010 to FY2015, falling below the figure at
the moment of 18.9 trillion yen assuming an evenincrease of export every year from FY2010 to achieve thetarget.
According to the "General Survey of Overseas
Business Activities" (Ministry of Economy, Trade andIndustry), exports from SMEs having overseas affiliatedcompanies increased about 80% between FY2010(approximately 3.7 trillion yen) and FY2015(approximately 6.8 trillion yen).

Ministry of
Economy, Tradeand Industry,"General Surveyof Business
Activities"

Ministry of
Economy, Tradeand Industry• Double the inward foreign
direct investment (FDI) stocks to¥35 trillion by 2020 (as of theend of 2012: ¥19.2 trillion)

27.8 trillion yen(as of the end of
2016)

A

Comparison cannot be made for the stock based KPI
indicator between the years prior to 2013 and 2014 due torevisions of statistical standards. The inward foreign
direct investment stocks was 27.5 trillion yen at the end of2016 assuming an even increase of investment stocks
since statistically comparable 2014 to the target of 35
trillion yen in 2020, The actual balance of 27.8 trillion yen
at the end of 2016 exceeded the prorated KPI at thesame point. In order to achieve this KPI target, further
efforts need to be pursued in the future to solicit inward
direct investment.

Outstanding
external assets
and liabilities in

Cabinet Office• Raise overseas infrastructure
project orders received to approx.

Approximately 20
trillion yen

While the actual orders received in 2010 was about 10
trillion yen, the figure for actual project orders received in

Cabinet Office,statistical data of

SMEs with “potential” and“motivation” by 2020 compared to2010 level

127

128

A

66

“Balance ofPayments” by
Ministry of
Finance/Bank ofJapanCabinetSecretariat¥30 trillion by 2020 (2010:
approximately ¥10 trillion)(including "“income frombusiness
investments inoverseas
infrastructures,"etc.) (2015)

2015 was approximately 20 trillion yen, making steadyprogress to achieve the target. To achieve the KPI target,
the orders received need to increase by approximately 10
trillion yen in the remaining five years.

Statistical figuresfrom Cabinet
Office "Survey ofMachinery
Orders” etc. andhearings withindustry groups,
etc.

(AssistantChief Cabinet
Secretary’s
Office(Infrastructure
Export andEconomic
CooperationTeam))

129• Realize at least ten sales
pitches each year to foreign
nations by the Prime Minister andother ministers

64 cases (2016)

A

Whereas the objective is at least 10 sales pitches eachyear, there were 64 visits in 2016 (33 visits by Prime
Minister and 31 visits by other Cabinet Ministers),of which 8 visits were accompanied by economic
missions of business leaders.

Reports fromrelevant
ministries andagencies

CabinetSecretariat(AssistantChief Cabinet
Secretary’s
Office(Infrastructure
Export andEconomic
CooperationTeam))

130• Triple overseas market sales ofbroadcast contents by FY2018
from the FY2010 level

28.85 billion yen(FY2015)A

The target was "Triple overseas market sales ofbroadcast contents by FY2018 from the FY2010 level."
The actual sales at the end of FY2015 were 28.85 billion
yen, achieving the target three years ahead. Based on
this result, the " Growth Strategy 2017" set a new target
to increase broadcasting content-related sales inoverseas markets to 50 billion yen by FY2020."

Ministry ofInternal Affairs
andCommunications," Analysis on
the current
situation ofoverseas salesof broadcast
contents"

Ministry ofInternal Affairs
andCommunications

131• The increase rate ofJapanese alcoholic beverages
export should exceed
thatofagricultural/forestry/fisheryproducts and food export by 2020

Increase of
107.7% (2012–2016)
43 billion yen(2016)A

The increase rate in 2012–2016 exceeded that ofagricultural, forestry and fishery products and foods (anincrease of 66.8%).

Ministry of
Finance "Trade
Statistics"

Cabinet Office,"Secretariat ofIntellectual
Property
Strategy
Promotion"

67

132

•Realize the following “export
value and overseas subsidiarysales” by 2020 compared to 2011
level:• China, ASEAN, etc.”: Double

124.9 trillion yen(FY2015)*Breakdown:
Export value 15.2
trillion yen(excluding
purchase of local
subsidiaries fromJapan), Overseas
subsidiary sales :109.7 trillion yen

B133• Realize the following “export
value and overseas subsidiarysales” by 2020 compared to2011 level:• “Southwest Asia, the Middle

24.2 trillion yen(FY2015)*Breakdown:
Exports of 5.2
trillion yen(excluding
overseas affiliatedcompanies'
procurement fromJapan) + sales ofoverseas affiliatedcompanies of
18.9 trillion yen

B

2.2 trillion yen(FY2015)*Breakdown:
Exports of 0.4
trillion yen(excluding
purchase ofoverseassubsidiaries fromJapan), Overseas
subsidiary sales:
1.8 trillion yen

BEast, Russia/CIS, and Central
and South America”: Double.

134• Realize the following ”export
value and overseas subsidiarysales” by 2020 compared to2011 level:• “African region”:
TripleProgress in achieving KPIs is evaluated by the sum of
the export value and sales value of overseas subsidiaries(excluding purchase of local subsidiaries from Japan).
Whereas the time limit for achieving the target is 2020
with the period of 9 years, 4 years passed at the time of
the “latest figure.”• Regarding “China, ASEAN, etc.,” the export value for
FY2011 (excluding purchase of overseas subsidiaries
from Japan) was 15.4 trillion yen, and sales value ofoverseas subsidiaries was 73.9 trillion yen, totaling 89.4
trillion yen. The export value for FY2015 (excluding
purchase of overseas subsidiaries from Japan) was
15.2 trillion yen, and sales value of overseas
subsidiaries was 109.7 trillion yen, totaling 124.9 trillion
yen, falling below 129.1 trillion yen which was the figure
at the moment to achieve KPI assuming an even ratio of
annual increase for every year.
• Regarding “Southwest Asia, Middle East, Russia, CIS
and Latin America,” the export value for FY2011
excluding purchase of overseas subsidiaries from Japan)
as 5.0 trillion yen, and sales value of overseas
subsidiaries was 17.0 trillion yen, totaling 22.0 trillion
yen. The export value for FY2015 (excluding purchase ofoverseas subsidiaries from Japan) was 5.2 trillion yen,and sales value of overseas subsidiaries was 18.9 trillion
yen, totaling 24.2 trillion yen, falling below 31.9 trillion yen
which was the figure at the moment to achieve KPI
assuming an even ratio of annual increase for every year.
• Regarding “Africa,” the export value for FY2011(excluding purchase of overseas subsidiaries fromJapan) was 0.4 trillion yen, and sales value ofoverseas subsidiaries was 1.6 trillion yen, totaling 2.0
trillion yen. The export value for FY2015 (excluding
purchase of overseas subsidiaries from Japan) was 0.4
trillion yen, and sales value of overseas subsidiaries
was1.8 trillion yen, totaling 2.2 trillion yen, falling below
3.7 trillion yen which was the figure at the moment to68

Export value:
Ministry of
Finance, "Trade
Statistics"
Sales value ofoverseassubsidiaries:
Ministry of
Economy, Tradeand Industry,"Survey ofOverseas
Business
Activities"

Ministry of
Economy, Tradeand Industry

Ministry of
Economy, Tradeand Industry

Ministry of
Economy, Tradeand Industry

achieve KPI assuming an even ratio of annual increasefor every year
As described above, the targets were not achieved in
all regions – "China, ASEAN, etc.," "Southwest Asia, theMiddle East, Russia, CIS, Latin America," and "Africa."
The followings are region by region analysis: About"China, ASEAN, etc.," exports to China increased byabout 1.5% from the previous year, but exports to ASEAN
countries decreased by about 5.2%. This is considered
attributable to the decline in exports caused by economic
slowdown in the major export counterparts such as
China.
About "Southwest Asia, the Middle East, Russia, CIS,
and Latin America," exports to Southwest Asia and the
Middle East increased by about 11% from the previous
year. In Russia, on the other hand, domestic consumption
slowed down due to the declining crude oil and mineral
resource prices. This is the reason why exports to thecountry did not grow much or decreased. The decrease inexports to Latin America is considered attributable to therecession and domestic demand slowdown in the region.
For that reason, KPI could not achieve the target.
About "Africa", especially the countries heavily
dependent particularly on the export of natural resources
saw the decreases in resource prices leading to budget
deficits, decreased foreign currency reserves, andeconomic growth slowdown. Amid this situation, the KPI
decreased by 9% from the previous year due largely tothe reduction in exports.
Economic size, economic growth and exogenous
political and natural disaster risks differ depending on
regions and countries, and it is important to evaluate69

progresses of global outreach made by Japanesecompanies by making comparisons of economic
development of each region and country andexpansions of foreign companies into each country, in
addition to figures. Based on this standpoint, theGovernment will continue monitoring developments
going forward

70