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Japan Revitalization Strategy-JAPAN is BACK-

June 14, 2013

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Table of Contents
I. Overview
1. The Basic Concept of the Growth Strategy .................................................................................. 1
2. Roadmap to Growth ..................................................................................................................... 3(1) Unleashing the power of the private sector to the fullest extent(2) Participation by all & fostering human resources who can succeed in the global competition(3) Creating new frontiers(4) Redistributing the fruits of growth to peoples’ lives
3. How to Realize the Growth Strategy .......................................................................................... 10(1) Implementing policies at unprecedented speed(2) Accelerating reforms with National Strategic Special Zones serving as the gateway
4. An Evolving Growth Strategy ...................................................................................................... 11(1) Implementing the PDCA cycle by reviewing targets (KPIs)(2) Way forward for realizing full-fledged growth
5. Examples of Necessary Key Measures in Line with the “Roadmap to Growth” ......................... 14(1) Unleashing the power of the private sector to the fullest extent(2) Participation by all & fostering human resources who can succeed in the global competition(3) Creating new frontiers

II. Three Action Plans
1. Industry Revitalization Plan ........................................................................................................ 30
1. Accelerating structural reform program (Vitalizing industries) ............................................... 31(1) Stimulating private investment(2) Establishing a system which enables challenges to frontiers being free from anxiety(3) Promoting investment in business ventures and investment to challenge businesses again
fully utilizing resources in and outside Japan(4) Promoting business restructuring and reorganization(5) Promoting overseas operations aiming to become a global leading company
2. Reforming the employment system and reinforcing human resources capabilities ................ 39(1) Policy change from excessive employment stability to labor fluidity (realizing labor
movement without unemployment)(2) Enhancing matching function by utilizing the private-sector human resources business(3) Realizing various ways of working(4) Promoting active participation by women(5) Promoting active participation by the young/the elderly

Provisional(6) University reforms(7) Strengthening human resources capabilities for global operation activities(8) Utilizing highly skilled overseas personnel
3. Promoting Science, Technology and Innovation ..................................................................... 54(1) Reinforcing headquater functions of the “Council for Science and Technology Policy”(2) Promoting the Strategic Innovation Program(3) Establishing Innovative R&D Program(4) Enhancing function of national research institutes(5) Securing funds for personnel who supports research(6) Increasing R&D investment by the public and private sectors(7) Strengthening intellectual property strategies/standardization strategies
4. Becoming the world’s leading IT society ................................................................................. 60(1) Reforming regulations/systems suitable for the age that the existence of IT is “natural”(2) Promoting private sector access to public data and developing innovative electronic
administrative services(3) Realizing safe/convenient life environment through IT utilization(4) Developing the world’s top-level telecommunication infrastructure(5) Promoting cyber security measures(6) Cultivating/securing highly-skilled IT human resources that will be the source of industrial
competitiveness5. Further strengthening Japan’s international competitiveness as a business hub ................... 65(1) Realizing “National Strategic Special Zones”(2) Opening up operation right of public facilities, etc., to the private sector (expanding
utilization of PPP/PFI)(3) Improving infrastructure such as airports, ports and harbors(4) Improving competitiveness of cities(5) Vitalizing financial/capital markets(6) Management of public and quasi-public funds(7) Overcoming constraints of environment/energy
6. Innovation of small and medium-sized enterprises (SMEs) .................................................... 74(1) Using, mobilizing, and commercializing regional resources as brands(2) Accelerating the restructuring of small and medium-sized enterprise (SMEs)(3) Supporting small and medium-sized enterprises (SMEs) which will enter the strategic
market.
(4) Supporting small and medium-sized enterprises (SMEs) which expand internationally<Important notices>
2. Strategic Market Creation Plan .................................................................................................. 81

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Theme 1: Extending the nation’s “healthy life expectancy.” ........................................................ 83[1] The society where people are able to live a healthy life and get old by enhancing effective
preventive care services and health management.
[2] The society which can provide the world's most advanced necessary medical care by
activating medicine-related industries[3] The society where people who are out of work due to illness or injury can return to work as
quickly as possible by access to better medical care and nursing care
Theme 2: Realizing clean and economical energy demand and supply ..................................... 99[1] A society where clean and economical energy is supplied[2] A society where efficient distribution of energy is realized through competition[3] A society where energy is consumed wisely
Theme 3: Building safe, convenient and economical next-generation infrastructures .............. 109[1] A society where safe and resilient infrastructures are provided at low cost[2] A society where people and goods are provided with safe and convenient transportation
Theme 4: Building regional communities that use their unique local resources to appeal to theworld ....................................................................................................................... 115[1] A rich rural society which produces rich world’s best quality agricultural, forestry and fisheryproducts and food produce[2] A society which makes use of potential such as tourism resources to invite many world’s
tourists to regional communities
3. Strategy of Global Outreach..................................................................................................... 127
1. Building strategic trading relations and promoting economic partnership ............................. 128
2. Strategic initiatives for obtaining overseas markets .............................................................. 130(1) Exporting infrastructure and securing natural resources(2) Intensive support to potential small and medium-sized enterprises (SMEs)(3) Promoting Cool Japan
3. Improving infrastructure concerning funds and human resources to support our economic
growth ................................................................................................................................... 137(1) Activating inward direct investment(2) Developing globally competitive human resources [reposted]Provisional

I. Overview
1. The Basic Concept of the Growth Strategy
Japan’s economic stagnation of more than two decades has continued for far too
long, and has had grave consequences on the Japanese economy and society.
The prolongation of deflation, coupled with the advent of a society with a declining
birthrate and aging population that are resulting in a decreasing workforce,companies were forced to rein in capital investments and wages, and even hold off
on R&D investments. Meanwhile, amid concerns about the future and cuts inincomes, consumers too have had to reduce consumption. All of this has madeJapan unable to pull itself out of the vicious cycle of stagnating demand andaccelerating deflation.
This period of long-term economic slowdown has been dubbed “the lost two
decades.” Far graver than the economic losses, however, were the losses ofconfidence and future hopes among company managers as well as individuals.
Without confidence, companies cannot take risks in new growth sectors; humanresources have limited opportunities to leverage their capabilities; technologies andideas are left neglected; and individuals’ financial assets and companies’ internal
reserves are underutilized. This naturally leaves human talents, goods, and funds
structurally “idle.”
In less than six months since its inauguration, the Abe administration has launched
the first prong or “arrow” (of the administration’s three prongs of economic revival) of
bold monetary policy aimed at dispelling the deflation mindset. It has also launched
the second “arrow” of flexible fiscal policy aimed at igniting the dampened economy.
Furthermore, the Abe administration has decided on, and set into action, processes
which were deemed necessary but had been placed on the wayside, including
participation in the Trans-Pacific Partnership (TPP) negotiations, the Electricity
System Reform, and elimination of childcare waiting lists.
The consequent pick-up in consumption and corporate performance hasbrightened Japan’s economic outlook for the Japanese people and international
communities.
In this context, the Growth Strategy’s role as the third “arrow” is clear. It should
restore the confidence of company managers and of all people, and change
expectations into actions.
Currently, Japan finds itself in the position of a “developed” country, facing many
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serious challenges that it must address head on, challenges which other countries
will one day also be facing. These challenges include the declining birthrate, aging
population, and resource and energy issues. If Japan can become a world pioneer inresolving these challenges, an opportunity presents itself for Japan to become a
global leader in new growth sectors.
Japan will once again implement aggressive economic policies that inspire
motivation to tackle difficult challenges (“challenge”), carve out new growth sectors(“innovation”), both domestically and internationally (“open”), and mobilize, in one
stroke, human talents, goods, and funds which had fallen idle (“action”).
If, as the stagnant economy starts to move again, Japan is able to promotereplacement of old facilities and equipment with new ones, as well as to accelerate
both investment in growth sectors and in labor mobility, then corporate earnings will
increase, which will deliver returns for the people in the form of higher worker salaries
and increased employment. This will lead to the realization of a virtuous cycle, where
consumption will increase, triggering new investment, creating spillovers forcommunities and small and medium-sized enterprises (SMEs).
This Growth Strategy will mark a fresh start. By having all economic actors in theprivate sector actively and dynamically undertake full-fledged efforts to promote
growth with a determination to take on challenges, a virtuous cycle will be set into
motion for the first time, elevating the Japanese economy from stagnation to revival
and to even greater heights, and in turn, enabling the economy to be placed on a
growth trajectory.
Through the implementation of the three “arrows,” including this Growth Strategy,
among other measures, Japan aims to achieve a vibrant economy that will register
over 2% labor productivity improvement in the medium- to long-term, and around 3%
nominal gross domestic product (GDP) growth and around 2% real GDP growth, on
average, over the next ten years. By the late 2010s, the goal will be to achieve evenhigher growth. Based on these measures, it is expected that nominal gross national
income (GNI) per capita will grow by more than 3 percent in the medium- to long-term,
resulting in an increase of more than 1.5 million yen in 10 years.
To ensure that economic growth takes place, in addition to establishing macrotargets, this Growth Strategy sets forth targets (Key Performance Indicators [KPIs])
that should be achieved for each set of policies.
A policy package has been laid out, including regulatory reform, budget, andtaxation system measures, which may be implemented now to achieve the targets.
However, these measures will not be all. This strategy is a “constantly evolving
Growth Strategy” which will continuously add on and examine measures for the-2-

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achievement of the targets.

2. Roadmap to Growth(1) Unleashing the power of the private sector to the fullest extent
The private sector holds the key to strengthening the competitiveness ofindustries.
To ensure that the expectations for the exit from deflation created by the “firstarrow” and “second arrow” do not end up being temporary, the vast quantities offunds which lie idle in companies must be directed towards investments thatgenerate future values.
To this end, it goes without saying that the Government must do more than everbefore to improve the competition environment for Japanese companies, including
the development of a stable macroeconomic environment, overcoming delays inestablishment of economic partnerships with other countries, the realization of low
cost energy supplies, and the review of regulations and institutions which inhibit
investment.
The Government will strongly support companies trying to strengthen theircompetitiveness by enhancing capital investment and structural reform, and by
reducing tax burden of the companies with bold tax incentives on capital investment.
It is the private sector that will get the ball rolling, and therefore, Government
measures must be designed for company managers to muster up the determination
to make decisions, take actions, and compete with the world.
(Speeding up the restructuring of industries and accelerating venture businesses)
Bold moves should be taken to discard old facilities, equipment, and assets so that
outdated facilities and equipment can be replaced with the state-of-the-art. R&D
aimed at retaking the global lead should be accelerated. Funds, human resources,
and capital should be actively mobilized in growth sectors. Daring businessrestructuring should be pushed through by companies and industries to promote
such turnover of equipment.
As long as company managers start taking such actions, Japanese companies will
be able to regain vitality, increase capital investments, and improve productivity,
which in turn successively churn out attractive new products and services, succeed
in global competition, and tap into the world’s markets.
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To encourage such moves by company managers, the Government will boldly
promote capital investment and creation of new businesses at unprecedented speed.
In addition, to ensure that shareholders and other stakeholders proactively support
the forward-looking initiatives by company managers, corporate governance will be
reviewed so that Japanese companies will excel in international competition.
(Regulatory and institutional reform and opening up government enterprises)
Will private sector creativity be fully utilized at the investment destination? What
will change in sectors which had been heavily restricted? These are the mostimportant questions that need to be answered in order to stimulate private
investment.
The conventional theory was that it is difficult to capitalize on the private sector’screativity in social security sectors, such as medical care, nursing care, and childcare,
as well as other sectors, such as agriculture, energy industry, and public services.
This implies that these sectors may be converted into growth sectors depending on
the approach taken. This also implies that there is significant room remaining for
improvement in these sectors to efficiently provide good quality and low cost services
and products to the people.
In sectors where the power of the private sector had not been sufficiently
leveraged until now, or where the private sector could not previously enter, regulatory
and institutional reform will be implemented and government enterprises will be
opened up in order to realize a “minimum regulation country.” This will not only
promote private participation in regulated sectors and government enterprises, butattract private funds, human resources, technologies, and know-how to these sectors,
so that these industries will become a new growth engine of the Japanese economy
filled with motivated personnel and new technologies and provide employment
opportunities.
For example, in the health sector accompanied by extensive public interest, Japan
will become a world pioneer in developing practical applications of innovative
medical technologies. This will be achieved by creating a Japanese version of the
National Institutes of Health (NIH), and broadening the coverage of advanced
medical treatment which may be received in combination with services covered bypublic health insurance system. In addition, Japan will approve the Internet sales of
non-prescription drugs. Furthermore, the world’s most convenient, efficient, andsafest system will be established by enhancing ICT-supported medical care, nursing
care, and preventative care,.
In agriculture, intermediary institutions that manage farmland will be establishedand utilized to speed up the consolidation of farmland. Furthermore, entry of diverse
players including companies into the agricultural sector will be promoted based on alease approach.
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Social infrastructuredevelopment has thus far been exclusively dealt by the public
sector. By making use of public private partnerships and private finance initiatives(PPP/PFI) based on concession agreements and other approaches, private funds
and know-how will be boldly introduced into social infrastructure development. In
doing so, safer, convenient, and more resilient social infrastructures will be
developed efficiently. Additionally, innovation will be promoted by developing theworld’s leading business environment and by taking advantage of IT, including Big
Data and public data.
Aiming to unleash the vitality of the private sector to the fullest, efforts will be madeto revive a manufacturing industry that continues to succeed in global competitions,and create a high value-added service industry by replacing old facilities andequipment with new ones and accelerating venture businesses, as well as
implementing regulatory and institutional reform and opening up government
enterprises.

(2) Participation by all & fostering human resources who can
succeed in the global competition
Human resources are precisely the greatest resource that Japan boasts to theworld. One of the biggest factors contributing to the grim outlook of the Japanese
economy and society and to the economic slowdown is the insufficient exploitation of
the potential of human resource capabilities amid the declining birthrate and aging
population.
The employment and education systems created during the post-war higheconomic growth period have fallen into a “trap” of not being able to adapt tochanging circumstances and thereby have stayed the same to this day. As a result,the capabilities of women and the elderly has not been fully harnessed, and theeducation of children and youth has not kept up with global trends nor with changes
in the times.
However, this means,if the current system is boldly transformed, that these humanresources can be significantly utilized to realize economic growth, that the decline in
the birthrate and the aging of our demographic structure can be halted and thatJapan’s potential growth rate can be increased.
(Creating women-friendly work environments and restoring vitality to society)In particular, it is essential for the “power of women” – Japan’s greatest potential
which had not been leveraged fully to date – to be fully utilized. This is critical fromthe standpoint of securing human resources who will support the new growth sectors-5-Provisional

amid concerns over the decreasing workforce population due to the declining
birthrate and aging population.
Promoting women’s participation in the labor force and management will lead tothe creation of new services and products that will reflect a diverse sense of values
more than ever before, and bring vitality to the entire society. Besides, if morehouseholds will be with double incomes, it will lead to the increase in householdincome as well as purchasing powerand set into motion a virtuous economic cycle,
so that the people will enjoy a greater sense of fulfillment.
Therefore, the Government will aim to raise the women’s labor participation rate to
the world’s highest level by providing childcare arrangements and other services sothat working couples can raise their children with a sense of security and by
supporting women’s return to the workplace following their childcare leave as well as
promoting the proactive recruitment of women.
(Creating a society in which both youth and the elderly can work with vitality
by taking greater advantage of their capabilities)
The system of life-time employment, where young people graduate from school,find employment, and work for the same company until retirement is now a thing of
the past.
As steps are taken to accelerate the replacement of old facilities and equipmentwith new ones, employment opportunities will be expanded in new growth sectors.
The Government will shift its employment policy focused from on excessively
sustaining employment stability to on labor fluidity, in order to move labor frommature sectors to growth ones without creating unemployment.
Rather than having to move from one temporary job to another that does not matchthe skills of individuals, the new policy will give hope to people that they will be able
to brush up their skills with enthusiasm, find jobs which offer incomes that arecommensurate with their abilities, raise a family and nurture the next generation. To
accomplish this, public employment security office “Hello Work” information andservices will be boldly opened up to private employment and recruitment agencies.
By making use of the private sector’s know-how, the Government will support forskills enhancement training and suitable job matching, among other services.
(Developing Japan’s youth into globally competitive human resources)
Japan’s youth face competitions from those across the globe. Japanese young
people shoulder the future of the country. In order for them to win in global
competitions, and to play active roles on the world stage in areas such as academic
research, culture, and to make contributions in the international scene, it is an urgent
matter to raise the level of education up to international standards.
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Japanese universities will be elevated to world-class levels. As such, national
universities will be given much more freedom in their operations. The Government’s
involvement in national universities will shift towards providing prioritized support touniversities that are committed to become the world’s leading universities. This will
help to unleash the full potential of the universities. Furthermore, like the saying“strike while the iron is hot,” English education from the primary and secondary
education stages will be strengthened. Overseas study opportunities will be
drastically expanded in higher education to foster globally competitive humanresources.

(3) Creating new frontiers
The only way to sustain economic growth in the medium- to long-term, is to either
create an entirely new market by developing pioneering products, services, andsystems; or to go after a larger share of the pie which has increased in the growing
and expanding international market.
Before falling into a protracted slump, the Japanese economy was able to growprecisely because it succeeded in these two endeavors. This is epitomized by thephrase, “Made in Japan.” Products made in Japan using new technologies weresuccessively produced and were sold in all corners of the world.
Today, the R&D and marketing competition are far more intense than ever before.
Against this background, Japan will regain its luster through a “Made by Japan”
approach, by drastically reinforcing its Innovation Strategy and Strategy of Global
Outreach.
(Reviving Japan as a “technology-driven nation”, ”intellectual property based
nation” through an all-Japan effort)
Japan has long maintained capabilities for high levels of technology to this day.
Both government and university research institutes as well as the private sector carryout world-leading research, and possess numerous promising technology seeds.
Nevertheless, the R&D by the Government, universities, and the private sector havebeen carried out without coordination as well as a clear vision of the final product,
and have failed to capitalize on each other’s strength. As a result, the final product isoften outdone by products of other countries’ in global competition.
The Government will drastically strengthen the headquarter functions of theCouncil for Science and Technology Policy, identify strategic areas where Japan shallnot lose out to international competition, and organize a “dream team” into which thehuman resources, intellectual properties, and funds of the Government, universities,
and the private sector will be injected intensively, in order to succeed in global
competition in new frontiers and to create new growth sectors.
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ProvisionalAlso, the Government will thoroughly support innovative research with a view toquickly elevate the outputs of world-leading basic research to practical use, andproduce a series of successful examples similar to the iPS project. Throughcollective efforts of the Government, a “country that continues to succeed throughtechnology” will be created. And through wisdom and creativity of the Japanesepeople, “intellectual property based nation” will be aimed at world highest level.
(Leaping into the world and attracting the world)
The world market continues to expand rapidly, driven by the emerging countries.
For Japan with poor resources, whether or not Japan will be able to succeed in thecompetition is of critical importance.
The Government must remove institutional impediments which stand in the way ofJapanese companies’ overseas activities, including through the expansion of
economic partnership agreements as well as the conclusion of investment
agreements and tax treaties. This is a prerequisite for tapping into the growths of
emerging countries and of elsewhere to the maximum extent possible, and to attract
investment in the Japanese market.
Countries are now competing with each other to tap into the growing international
market. Many Japanese SMEs remain within Japanese borders, despite possessing
the world’s top products and element technologies in infrastructure sectors, such as
electric power, water, IT, and railroad. Furthermore, Japanese cultural content,
Japanese food, and the Japanese healthcare system have an overwhelming
competitive edge. Nevertheless, these companies were late in entering the world
market, and investment in Japan and the number of tourists to Japan have remained
static.
As far as the overseas activities of companies are concerned, the Government will
make a dramatic shift from the existing thinking that business matters should be left
solely up to the private sector. The public and private sectors will make concerted
efforts to strategically acquire market share, including infrastructure export and thepromotion of Cool Japan by the Prime Minister and other ministers. At the same time,arrangements will be established to attract investment and tourists into Japan.
Furthermore, in order to encourage highly skilled non-Japanese human resources toengage in activities in Japan, the points-based preferential immigration treatment for
highly skilled foreign professionals will be reviewed. These measures will increase
real GNI, i.e. the gross income that Japanese people will receive, including thewealth from overseas.

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Provisional(4) Redistributing the fruits of growth to peoples’ lives
Even should Japan succeed in achieving the growth rates targeted in the Growth
Strategy, the fruits of this growth must not remain solely on the supply side. Ultimately,
the entire society must regain its vitality, and each and every person must be able tofeel a sense of fulfillment and have hopes and dreams for the future.
In particular, through two long decades of economic stagnation, both companies
and the people who work in Japan have gotten accustomed to conservative attitude
and deflation mentality. In order to change this to a forward-looking mindset, it isimportant that discuss with a broad and long-term perspective on the following issues,
separately from issues which should be settled individually between workers andemployers such as wage and work condition negotiations.
 The distribution method of the fruits of growth Improving corporate productivity and increasing the flexibility of labormobility Diverse and flexible work styles in the age of declining birthrate, aging
population, and the diversifying of values and,
 Approaches to human resource development and uses.
Through the opportunities for the exchange of views with labor and businessgroups, the Government will establish fora in which the Government, employers, andworkers can hold a candid and constructive exchange of views and reach a sharedunderstanding for comprehensively resolving the issues, and will swiftly commence
the discussions.
The Growth Strategy must not conflict with fiscal rehabilitation. The steady
implementation of measures which were incorporated into the Growth Strategy,
including social infrastructure development by making use of private sector funds,
the achievement of a world-leading e-Government system, the acceleration of ICT
use in medical care, and university reform, will also contribute to the realization of
fiscal soundness. Furthermore, the achievement of economic growth will increase
corporate incomes and national incomes, and contribute to fiscal rehabilitation in theform of increased revenue.

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3. How to Realize the Growth Strategy(1) Implementing policies at unprecedented speed
The biggest difference between this Growth Strategy and past growth strategies is
the identification of targets. Rather than merely listing the measures for realizing thetargets, this Growth Strategy indicates, as much as possible, a schedule with thetarget dates of the steps necessary to implement these measures (e.g., amendmentof law, budgetary and taxation measures, institutional reform, and council
deliberations).
For the private sector attempting to initiate action, it will be critical to haveinformation on what it will be able to do and when.
In particular, in order to restart the Japanese economy from two decades ofstagnation, policies with quick impacts and clear messages must be swiftly
implemented.
Policies will be implemented at unprecedented speed. Details of measures that
require prompt action will be released by the end of August. The measures
themselves will be implemented as soon as preparations are complete.

(2) Accelerating reforms with National Strategic Special Zones serving as
the gateway
In order to place the Japanese economy on a mid- to long-term growth trajectory,
patient efforts to steadily implement and mainstream the Growth Strategy are
essential. At the same time, in order for Japan to demonstrate a real commitment totransform and truly make advancements, it must move quickly in carrying out
regulatory and institutional reform as well as developing and enhancing
infrastructure.
For this reason, while this Growth Strategy is premised on the prompt and effective
implementation of the measures contained therein, National Strategic Special Zones
will be created to serve as a gateway for the execution of bold regulatory reform andother measures as a new approach to realize Japan’s growth strategy under theleadership of the Prime Minister. Under the system of National Strategic Special
Zones, the Government, municipalities, and the private sector will work as one rather
than in conflict with each other. The system will be applied only to projects whichhave a big enough impact to attract foreign investment and will be implemented in atimely manner. This is an impact which could not be expected from the special zones- 10 -

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Other systems, such as the Special Zone Advisory Council chaired by the Prime
Minister and the Special Zone Promotion Headquarters for each special zone led byministers, mayors, and private business operators, will be promptly established inorder to advance the project from the top down.

4. An Evolving Growth Strategy(1) Implementing the PDCA cycle by reviewing targets (KPIs)
This Growth Strategy presents “targets” (KPIs) that should be achieved for each
set of major policies. “Targets” including indicators identified by internationalorganizations, are established to enable objective, routine, and comprehensive
evaluation of policy outcomes, including through international comparisons.
Furthermore, the individual measures necessary to realize the “targets” show aclear direction, methodology, and implementation period. As many of these individual
measures will require detailed designs, amendment of law, budget requests, tax
system reforms, and other procedures for implementation, the existing bottom-up
PDCA cycle will need to be applied to monitor the progress of individual measures.
Nonetheless, in the end the “targets” must be achieved. Even if the individual
measures presented in the Growth Strategy are executed, they may have insufficient
impact, or due to changes in the circumstances, it may not be possible to achieve the“targets.”
Therefore, in addition to the bottom-up PDCA cycle, this Growth Strategy will
perform a “target review” of a different dimension than previous growth strategies.
Specifically, the following items will be verified from a top-down approach. 1. Were
the stated “targets” achieved; 2. If not, what was lacking; 3. What are the problems
with the existing measures; and 4. What should be improved, including theabandonment of ineffective measures.
Based on the verification findings, the measures will be reviewed in a flexible
manner to ensure they produce outcomes. If the “target” itself needs to be reviewed
as a result of changes in economic and other circumstances, the target will be
reviewed in a flexible manner with a view to maintaining a “consistently-evolving
growth strategy.”(2) Way forward for realizing full-fledged growthThis Growth Strategy includes scenarios and key institutional reforms for realizing- 11 -

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Japan’s medium- to long-term economic growth. However, detailed institutional
designs will not have been finalized for all issues by the time of the strategy’s
establishment. Furthermore, this Growth Strategy does not claim to havecomprehensively addressed all issues that Japan faces in order to realize the growth.
For example, it is discussed in the coming autumn and beyond that how Japan’s
energy portfolio will be and that how the quantitative targets related to the climatechange will be.
Also, with regard to the employment system, although the Growth Strategy setsout a major policy shift from a policy of “employment stability” to “movement of labor
fluidity without unemployment,” there are other issues that need to be addressed inorder to create a world-leading employment environment.
Japan must learn other countries’ best practices with respect to their work styles,
labor-related legal systems, customs, and business practices. The people are
seeking a “society that supports flexible and diverse work styles” and a “society thatprovides people with the opportunity to try again as many times as they want. The
Government must address head on the issues which need to be resolved. Also, theGovernment must improve the environment comprehensively to attract competitive
overseas human resources who have diverse values, experiences, know-how andskills.
Social security sectors, including medical care, nursing care, childcare, andpensions, impose an increasing financial burden due to the declining birthrate andaging population. At the same time, they are sectors which could become the driving
force of growth as vast new markets, depending on the institutional design. This
Growth Strategy identifies the health and longevity industry as one of the strategic
sectors. It includes policies for developing the industries related to the extending ofhealthy life expectancy and pharmaceutical and medical device industry, as well as
measures for capitalizing on the vitality of the private sector in childcare.
Nevertheless, challenges remain for realizing medium- to long-term growth, including
how to transform the medical and nursing care sectors into growth markets andprovide high quality services, as well as how to ensure the sustainability of thescheme.
Regarding agriculture, the Growth Strategy includes measures pertaining to theconsolidation of farmland by responsible entities and the expanded entry ofcompanies. Meanwhile, agricultural productivity must be radically increased to
double the income of farmers and of farming communities. This requires fully drawing
on the know-how of company owners by accelerating private company participationin agriculture, developing “the sixth industry” (collaboration of primary, secondary andtertiary industries), increasing added value by expanding exports, pursuing an
agricultural industry that allows “weekends” and “salaries” to encourage the- 12 -

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participation of young people, and take bold structural reforms.
To support sustainable economic growth and “fiscal rehabilitation,” theGovernment will start immediately discussing the remaining issues in partnershipwith relevant organizations, including the Council on Economic and Fiscal Policy andthe Council for Regulatory Reform.

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5. Examples of Necessary Key Measures in Line with the “Roadmap to Growth”
This Growth Strategy sets out three action plans for executing and achieving the“roadmap to growth”: Plan for the Revitalization of Japanese Industry; Strategic
Market Creation Plan; and Strategy of Global Outreach. Below is an outline of someof the representative measures presented by the plans for swift implementation inline with the “roadmap to growth.”(Note: The following are examples of measures and are not listed in order ofimportance or priority.)(1) Unleashing the power of the private sector to the fullest extent(Speeding up the restructuring of industries and accelerating venturebusinesses)
1. Expanding private investment and promoting business restructuring
Target:◆Bring capital investment back to pre-Global Financial Crisis levels over the next
three years (70 trillion yen/year [last fiscal year: 63 trillion yen])(i) Review support measures, including endorsement of efforts that promote thereplacement of old production facilities and equipment with new ones (e.g.,
replacement of aging production facilities and equipment with state-of-the-art,highly production- and energy-efficient facilities and equipment) and tax breaks
for companies which, accordingly, replace old facilities and equipment with newones, and take necessary measures.
Review measures designed to encourage companies to invest in
leading-edge equipment, including medical devices and 3D printers, by offering
supports that utilize lease arrangements, and take necessary measures.
(Reach conclusion by end of August)(ii) Push for strategic and drastic business restructuring to dramatically increase
earning capacity. Review support measures for companies that promote suchbusiness restructuring, including tax breaks and financial support, and takenecessary measures. In sectors in which the structural oversupply problem haslong been neglected, present guidelines and establish frameworks to promote
remedy initiatives.

- 14 -

Provisional

2. Creating new businesses
Target:◆Ensure that business startup rate exceeds business closure rate, and raise current
5% business startup and closure rate to 10% range on par with the US and UK◆Top 3 among OECD member countries in the Ease of Doing Business ranking(i) In regulated sectors, including the health and energy sectors, enable companies tostart new businesses with confidence. To this end, establish: 1. An arrangement
to confirm that the business is in the white zone (legal); and 2. A system thateases regulations on an exceptional basis for companies that have themotivation and technology to demonstrate safety, etc. (Special System for
Corporate Field Tests).
(Reach conclusion by end of August)(ii) Significantly increase fund supplies for venture businesses. Make the existingangel tax system more user-friendly and review measures that promote
investment in venture companies utilizing private company funds, etc, and takenecessary measures. Push for the establishment of spinoffs from major
companies and start-up businesses utilizing local resources.
(Reach conclusion by end of August)Conduct a study on and identify institutional reforms which need to be madewith regard to a mechanism that will connect new and growing companies,
including venture businesses, and investors on an Internet website, and raisesmall amounts of funds from many investors (crowdfunding) by the end of thisyear.
(Formulate by end of the year)(iii) Revise the current personal guarantee system in which one failure may cause
borrowers or guarantors to lose everything, and lead to their experience andknow-how to be unutilized. Formulate guidelines which, for example, do not
require a personal guarantee of the business owner, if certain conditions such as
clear separation between the assets of the business and the personal assets ofthe business owners, are met.
(Formulate as quickly as possible by end of the year)
3. Reviewing corporate governance and examining the use of public funds, etc.
(i) Amend the Companies Act and promote the installation of external directors who
can supervise from an outsider’s perspective without being bound to company
constraints or interests.
(Submit to Diet during next session)- 15 -

Provisional(ii) Consider and compile principles (Japanese version of the Stewardship code) for
institutional investors to fulfill their fiduciary responsibilities, such as promoting themid- to long-term growth of companies through dialogues.
(Compile by end of the year)(iii) At meetings among intellectuals, review and obtain recommendations on
cross-cutting issues pertaining to public and quasi-public funds, such as the
management of funds (promotion of diversified investment), matters of governanceincluding risk management structure, and measures for improving the returns on
long-term investments in shares, bearing in mind the scale and nature of each fund.
(Reach conclusion by autumn)(Regulatory and institutional reform and opening up government enterprises)
4. Creating and developing a good health and longevity industry
Target:◆Expand the markets for health promotion, preventive care and living assistanceindustries from the current 4 trillion yen to 10 trillion yen by 2020.
◆ Expand the markets for pharmaceuticals, medical devices, and regenerative
medicine-related industries from the current 12 trillion yen to 16 trillion yen by
2020.
(i) To push forward the development of practical applications of Japan’s outstanding
innovative medical technologies, establish control tower functions (Japaneseversion of NIH) which will create arrangements to ensure integrated research
management, the linking of research and clinical practice, and high quality clinicalresearch and clinical trials that meet international standards.
(Submit bill to establish new independent administrative agency to Diet during next
ordinary session)(ii) To enable the combination of a range of both services covered by healthinsurance as well as safe and advanced healthcare services not covered byinsurance, create a new dedicated system of assessment by external institutions,etc. By promoting the “system for accelerated assessments of advanced
medical services (tentative title)” (Advanced Medical Highway Initiative)
designed to accelerate and streamline the assessments, significantly broaden
the scope of advanced healthcare services and that are able to be combinedwith services covered by health insurance.
(Start with anticancer drugs aiming for autumn)(iii) Approve the Internet sales of non-prescription drugs under the appropriate rules
while securing the safety of consumers. However, for products that have newly- 16 -

Provisional

become available as non-prescription, due to their different nature from othernon-prescription ones, experts from the medical, pharmaceutical, and otherfields will carry out necessary reviews regarding the arrangements thatencourage people to exercise caution regarding sale and use of the drugs for
medical purposes. Take the necessary measures after reaching a conclusion byaround the coming autumn.
(Reach conclusion by around autumn)(iv) Accelerate ICT use in medical care, nursing care, and preventative care andcreate the world’s most convenient and efficient system. Make use of electronic
data, such as health insurance claim statements, share medical records andnursing care information on a community-wide basis, and actively utilize the
National Database (NDB). In particular, drastically strengthen health andpreventive care by asking all health insurance associations, etc. to formulate
plans on analyzing and utilizing health insurance claim statement data, etc.
(Amend Guidelines of the Minister of Health, Labour and Welfare pursuant to the
Health Insurance Act, etc. by the end of this fiscal year)(v) Strengthen the system of the Pharmaceuticals and Medical Devices Agency(PMDA) with respect to both quality and quantity. Accordingly, accelerate theassessment of pharmaceuticals and medical devices and eliminate theassessment lag.
(Eliminate lag by 2020)(vi) To ensure that companies can start new businesses with ease in the regulated
sectors of medical and nursing care, confirm that the business is in the legal
white zone and take measures, including the development of a legal system forthe establishment of quality assurance arrangements to ensure that consumers
can make safe purchases.
(Reach conclusion by end of August)
5. Turning agriculture, forestry and fishery industries into growth industries
Target:◆In the next ten years, 80% of all farmland should be used by skilled and diverse
responsible entities. Combined with industry efforts, the cost of rice production byskilled and diverse responsible entities can be reduced by 40% compared to thecurrent national average cost. The number of corporate farmers will increase to
50,000 companies.
◆Expand the market for “the sixth industry” from the current 1 trillion yen to 10 trillion
yen by 2020.
◆Expand the export of agricultural, forestry and fishery products and food produce
from the current 450 billion yen to 1 trillion yen by 2020.
- 17 -

Provisional◆Formulate a strategy to double the income of farmers and of farming communities
as a whole over the next ten years in advancing a transition to “the sixth industry”.
(i) Establish a farmland re-distribution scheme where intermediary institutions thatmanage and lease farmland to responsible entities, such as corporate farmers,
large-scale family farmers, consolidation farming associations, and companies,
while outsourcing services to municipalities and private companies and building
a community-wide system in consideration of farmland consolidation andintensification.
(Set out details by autumn, and swiftly implement measures including development of legal system)
After verifying the circumstances of corporate entry into agriculture,
explore the further liberalization of corporate entry through farmland acquisitionby easing requirements for the establishment of an agricultural production
corporation.
(ii) Fully utilize the Agriculture, Forestry and Fisheries Fund for Innovation,
Value-chain and Expansion Japan (A-FIVE). Drive innovations in agriculture andincrease added value by encouraging the development and expansion of newvarieties and techniques and cross-industry partnerships, including medicine
and welfare.
(Implement from this fiscal year)(iii) Aim to tap into global “food market,” which is expected to double in scale in thenext ten years (340 trillion yen→680 trillion yen). To this end, formulate acountry- and product-specific export strategy. Through an integrated approach,promote the use of Japanese food ingredients by the world’s culinary circles(Made FROM Japan), overseas expansions of Japanese food culture and foodindustries (Made BY Japan), and the export of Japanese agricultural, forestry
and fishery products and food produce (Made IN Japan).
(Implement from this fiscal year)
6. Developing the energy industry and acquiring global market share
Target:◆Capture domestic and international market share of energy-related industries ofapproximately 26 trillion yen by 2020 (currently 8 trillion yen)(i) Fully liberalize the electricity retail market, and encourage entry of diverse groups
and the integration with various business sectors through the Electricity System
Reform in order to create new businesses that use inventiveness. Promote theadoption of smart meters necessary to freely choose an electricity supplier andrate plan, and develop rules on use of personal information.
(Implement by 2016)
Realize an electricity system that can trigger new innovations by taking steady- 18 -

Provisional

steps to further secure neutrality of the electricity transmission and distributionsectors.
(Implement by 2018 and 2020)(ii) Change service area divisions currently serviced by the nine power companies,
and establish the Organization for Nationwide Coordination of Transmission
Operators to realize efficient supplies of electricity across the country. Reinforce
the interconnections between areas, and develop dispersed power systems that
center on renewable energy and storage cells.
(Implement by 2015)(iii) To realize inexpensive and stable supplies of energy: 1. Restart nuclear power
stations deemed safe by the Nuclear Regulation Authority; 2. Introduce low costand highly efficient thermal power (coal and LNG) while taking into accountenvironmental considerations, based on the clarification and acceleration ofenvironmental assessments; 3. Import lower priced natural gas, including shalegas, and diversify LNG supplies by supporting Japanese companies’ natural gas
development.
(iv) Facilitate and expand households’ and SMEs’ installation of solar panels, storage
cells, etc., by holding down the initial costs. Support companies that makelump-sum equipment purchases and offer the equipment to users at no initial fee(clean energy finance).
(Reach conclusion by end of August)

7. Establishing, managing, and updating social infrastructure by making use ofprivate funds and know-how (PPP/PFI)
Target:◆ Expand PPP/PFI programs to 12 trillion yen for 10 years from now on(1999~2012:
4.1 trillion yen)(i) Actively promote investment in updating social infrastructure by making maximum
use of private and other funds through the utilization of profitable facilities andpublic real estate, as well as updating together with private urban development.
In particular, utilize PPP programs to achieve the integrated revitalization of
cities and expressways, including the implementation of measures to cope withthe aging of Metropolitan Expressway together with private urban developmentusing headroom, etc.
(From this fiscal year, review using as model cases of the Metropolitan
Expressway Tsukijigawa area, etc.)- 19 -

Provisional(ii) Establish the Agency for the Promotion of the Private Finance Initiative through apublic-private joint initiative. Private operators recover funds through user fee
and supply risk money to PFI programs which establish social infrastructure.
This encourages significant expansion of self-supporting PFI programs, etc. thatcollect user fees, in which, until now, private operators had very little involvement
due to the risk of demand fluctuation.
(iii) The concession system of public facilities promotes smooth fund procurement.
Add the government administration airports,etc. to concession agreements inwhich private operators can exercise inventiveness. Accordingly, PFI programs
will be expanded drastically based on concession agreements.
(Bill pertaining to the government administration airports, etc. submitted during
current session of the Diet)
8. Propelling innovation using IT
Target:◆Achieve the world’s highest level of public data disclosure in a machine-readableway (with a dataset totaling over 10,000) by the end of FY2015(i) The Government will actively promote the utilization of big-data and open-data at
the world’s highest level. For this purpose, the IT strategic Headquarters will
establish the rules for utilizing big-data which include personal information, while
taking into consideration the balance between data usage and privacy protection.
Also it will formulate the institutional reform policy, which will outlook new legal
measures, including the establishment of third-party organization which has thepower of dispute settlement etc.
(Formulate by the end of the year)(ii) Actively and promptly disclose public data in a machine-readable way which
include geospatial information, procurement information, statistics, and disasterprevention and mitigation information. These data will be used to spur thecreation of new businesses. To this end, a data catalogue site providing various
public data (a Japanese version of “data.gov”) will be launched on a trial basis,
with a view to starting full-fledged operations from next fiscal year.
(Implement from the autumn onwards)(iii) Regulations and institutions that obstruct the utilization of IT will be reformed. For
example, services and procedures that are currently predicated on
person-to-person meetings or the exchange of hard copy documents, will bereformed. The “Intensive Action Plan for Regulatory and Institutional Reform to
Expand Utilization of IT (provisional name)” will be formulated to ensure that IT isutilized in various sectors.
(Formulate with a target of the end of the year)- 20 -

Provisional(2) Participation by all & fostering human resources who can
succeed in the global competition(Creating a women-friendly work environment and restoring vitality to society)1. Fully utilizing the “power of women”
Target:◆Boost the employment rate of women (aged 25-44) to 73% by 2020 (currently
68%)(i) Implement “Plan to Accelerate the Elimination of Childcare waiting lists.” Prepare
childcare arrangements for additional about 200,000 children over the next two
years. Aim for the elimination of childcare waiting lists, without ignoring thequality, by securing childcare arrangements for another about 400,000 children
by the end of 2017, in which year childcare demand is projected to hit its peak.
To this end, the Government will develop childcare facilities that make use ofrentals and government-owned land, secure childcare staff to support the
expansion in childcare services, pioneer new systems including small-scalechildcare services, support non-registered childcare facilities aiming to beregistered, and support employer-provided childcare services.
(ii) To support company initiatives that promote women’s active participation andenhance companies’ workplace environment, urge companies to employ more
women in managerial positions and as officers and promote disclosure of
information. Support companies that promote women’s active participation,balancing of work and childcare, and skill enhancement during childcare leaves
and after resuming work.
Support the re-employment of women caring for their child/children, e.g.,
provide re-learning programs and offer internships for homemakers.
(Implement from this fiscal year)(Creating a society in which both young people and the elderly can work withvitality by taking greater advantage of their capabilities)
2. Moving labor from mature sectors to growth sectors without creating
unemployment
Target:◆In the next five years, decrease by 20% those who have been unemployed formore than six months, and raise the rate of hiring general workers who changed
their job within a year to 9% (2011: 7.4%).
- 21 -

Provisional(i) Boldly shift from a policy of merely maintaining current job positions, to a policyof supporting motivated and able employees to move to positions in growth
sectors after expanding opportunities for improving their capabilities.
(Reverse the budgets of funds to support the movement of labor (FY2012: 240
million yen) and Employment Adjustment Fund (FY2012: 113.4 billion yen) by
FY2015)(ii) Take maximum advantage of the power of the private sector in matching people
with jobs. Make job vacancy information which could only be used by public
employment program and grants restricted to jobs through public employment
program to private employment and recruitment agencies.
(Reach conclusion by end of August)(iii) Boldly support adult re-learning programs on an unprecedented scale,including voluntary efforts to receive education and training that will lead to theacquisition of qualifications. Through such programs, help motivated young
people, etc. with non-regular positions to maximize their potential and rise up in
the career ladder or change careers.
(Review at the Labour Policy Council and aim to submit bill to revise the
Employment Insurance Act to the Diet during the next ordinary session)(Developing Japan’s young people into globally competitive human resources)
3. Unlocking the full potential of universities (e.g. reform of national universities)
Target:◆Place more than ten Japanese universities in the ranking of top 100 world
universities in the next ten years.
(i) Immediately reform national universities to support prioritized budgetary
allocations for pioneering initiatives. Accelerate reform over the next three years.
(Formulate national university reform plan in summer)
1. Human resource and wage reform, including the introduction of an annual salarysystem on a full-fledged basis and a system of combined wages using funds
from external parties such as private companies.
2. Post instructors across universities and departments, reallocate budgets and otherresources, realign organizations, and visualize resource distributions within
universities.
3. Based on the outcomes of the above, introduce arrangements that make strategic
and prioritized distributions of grants for operational expenses.
(Introduce from FY2016)- 22 -

Provisional(ii) Carry out drastic governance reform, including amendment of laws andordinances, such as the School Education Act, and submit the necessary bill to
the Diet during the next ordinary session. Review necessary systems andestablish the internationally competitive “Super Global University.”(Implement from FY2014)
4. Developing globally competitive human resources
Target:◆By 2020, double the number of Japanese students who study abroad (university
students, etc.: 60,000 people→120,000 people)(i) Strengthen English education from the primary and secondary education stages.
Review measures, including the provision of English education at the lower
grades of elementary school, establishment of English as an elementary school
subject, teaching system, etc., and teaching English courses only in English injunior high schools.
(Start review from this fiscal year)(ii) Adapt education to globalization, and educate globally competitive leaders fromthe upper secondary education stage. To this end, create “Super Global HighSchool (tentative title).”(Implement from next fiscal year)(iii) Offer all motivated and able young people, including high school and university
students, opportunities to study abroad in academic courses, etc. To this end,
create a new system through public-private cooperation.
(Reach conclusion by end of August)(iv) Introduce international English exams such as TOEFL in the exam for National
Public Service and university entrance exams, etc.
(For National Public Service exam, introduce from FY2015)(3) Creating new frontiers(Reviving Japan as a “technology-driven nation”, ”intellectual property based
nation” through an all-Japan effort)
1. Collective efforts to create a “country that continues to succeed throughtechnology”
Target:◆Become the No. 1 global innovator within the next five years (currently 5th in World
Economic Forum rankings)- 23 -

Provisional(i) Strengthen the functions of the Council for Science and Technology Policy as
headquarter for identifying strategic sectors, focusing on results, and carryingout R&D through collective efforts. Accordingly, this overcomes Japan’s current
situation which, despite having technological prowess, technology does not
culminate in final products and services due to uncoordinated R&D among theGovernment, universities, and the private sector.
(By August, establish schedule, including for legal revision)(ii) Identify core technologies under the leadership of the Council for Science andTechnology Policy and undertake cross-ministry initiatives based on a roadmap
that covers the phases from basic research to applications (commercialization,
development of practical use), in order to create markets in strategicallyimportant sectors. Create the “Strategic Innovation Creation Program (tentative
title),” which provides priority allocations of resources for these initiatives over
several years.
(Reach conclusion by end of August)(iii) Funding Program for World-Leading Innovative R&D on Science and Technology(FIRST Program) is creating world-leading research outputs, including in thearea of regenerative medicine led by Prof. Yamanaka of Kyoto University. As
such, the Innovative R&D Support Program will be created as a follow-up to
FIRST.
(Reach conclusion by end of August)(Leaping into the world and attracting the world)
2. Tapping into the growth of emerging countries, etc., as much as possible bypromoting economic partnership, etc.
Target:◆Trading FTA ratio of 70% by 2018 (currently 19%).
◆By 2020, double the export amount of SMEs compared to 2010 levels.
(i) Promote economic partnership negotiations, including TPP, RCEP,Japan-China-ROK FTA, and Japan-EU EPA and deepen economic partnerships
with the world’s major countries. Accelerate efforts for the conclusion of
investment agreements and the expansion of tax treaty networks.
(ii) Provide extensive supports for the overseas activities of SMEs with the “potential”
and “motivation” to fully succeed in global markets. Provide “one-stop support”
by strengthening the cooperation of public support providers, such as JETRO,
supplement know-how on overseas activities by dispatching senior personnel,
and establish one-stop overseas consultation offices that provide consultation
services for legal, labor, intellectual property and other issues that are- 24 -

Provisional

encountered overseas and introduce SMEs to relevant organizations.
(Establish by the end of this year)
3. Through public-private sector joint efforts, capturing a share of the world’s
infrastructure market that is expected to growTarget:◆Raise infrastructure sales from the current 10 trillion yen to 30 trillion yen by 2020.
◆Capture 1.5 trillion yen (currently 0.5 trillion yen) share in overseas medical
technology and service markets by 2020.
(i) To strengthen sales of Japanese products and services through an all-Japan,
public-private effort, make at least ten sales pitches each year to foreign nations
by the Prime Minister and ministers.
(ii) Enhance policy support tools, including the use of the JBIC’s Loan Facility
Enhancing Global Business Development, the strengthening of local
currency-denominated financing support through JBIC and NEXI, the active useof ODA including JICA’s Private Sector Investment Finance, and enhancementof trade and investment insurance.
(iii) Make maximum use of Medical Excellence JAPAN (MEJ) and aim to capture a
1.5 trillion yen market share in overseas medical technologies and services by
2020.
(Establish around 10 Japanese medical centers by 2020, withfocus on emerging countries)
4. Promoting globalization by advancing Cool Japan and increasing the number offoreign visitors to Japan and encouraging foreign direct investment in Japan
Target:◆Triple the overseas sales of broadcast contents by 2018 from the current level (6.3
billion yen).
◆Double foreign companies’ direct investment in Japan to 35 trillion yen by 2020.
◆Increase the number of foreign visitors to Japan to 10 million in 2013 and over 30
million in 2030.
(i) Efforts to sell contents and related product overseas will be strengthened,
centering on the Japan Brand Fund (tentative) and the secretariat of the Projectfor Localization & Promotion of Japanese Visual Media (J-LOP).
To this end, : 1) fundamentally strengthen measures against IP piracy; 2) securea distribution framework for Japanese content via overseas broadcasting firms
and content distribution websites; and 3) increase the provision of content thatmeets the needs of our partner countries while responding to local content- 25 -

Provisional

regulations.
(Implement within this fiscal year)(ii) In order to speed up the sale of popular content overseas, facilitate thestreamlining of management procedures for rights contracting. To this end,
among other activities, : 1) establish a ‘one-stop’ contact point to handle IP rights
management (strengthening the functions of the audiovisual Rights
management association [aRma]); and 2) promote agreements on rights
contracting managementthat includes broadcasting overseas.
(Implement within this fiscal year)(iii) In light of the 40th Year of ASEAN-Japan Friendship and Cooperation, relax visa
requirements for tourists from ASEAN countries to Japan, which are expected toincrease greatly in the future.
(Implement by this summer)(iv) Realization of easier entrance into Japan for the highly skilled and talented
foreign nationals is expected to contribute to the growth of the Japanese
economy. To this end, reconsider the income standards used for the
points-based preferential immigration treatment for highly skilled foreign
professionals and reduce the time that foreign nationals are required to reside inJapan before receiving permanent resident status (from 5 years to 3 years).
Start the new system within the year.
(Commence within this fiscal year)- 26 -

Provisional

II. Three Action Plans- 27 -

Provisional

II Three action plans
To implement and achieve the Growth Strategy, the government has developed
three action plans by carefully selecting policies to be taken on a priority basis. The
government will implement the “Industry Revitalization Plan” to strengthen theindustrial infrastructure. In addition, based on the strengthened infrastructure, thegovernment will implement the “Strategic Market Creation Plan” to create newmarkets where solutions of social issues are pursued and at the same time will
implement the “Strategy of Global Outreach” to obtain global market share.
The “Industry Revitalization Plan” is a plan to be implemented immediately in orderto remove stagnation of human talents, goods, and funds, developed during the lost
two decades. Through this plan, the government will encourage the private sector tochange its nature, add vigor to industries and foster human resources in order toachieve competitive edge in the global market. The government itself will actively
strive for being a country with minimum regulation to relieve people and companies
from burden of rules and regulations. The government will also completely eliminate
its inefficiency due to vertically segmented government agencies so that Japan canfully unleash its potential. Achieving these will secure ability to implement proactive
economic policies through cooperation between the government and the private
sector.
The “Strategic Market Creation Plan” is a mid-to-long term strategy for the future inorder to create new growing sectors by solving many social issues which othercountries will one day also face and by the government leading the world in solvingsocial issues. The objective of this plan is to eliminate anxieties through solvingsocial issues, making them growing industries.
The “Strategy of Global Outreach” is a strategy for Japan to strengthen its
competitiveness by proactively and strategically making the most of globalizing
Japanese economy through the combined efforts of the government and the private
sector. The objective of this strategy is that companies and Japanese people fromvarious classes enjoy benefit from the growing global economy.
Through the implementation of the “Industry Revitalization Plan,” Japan will obtain“competitiveness in the world” to realize future that is envisaged in the “Strategic
Market Creation Plan” and in the “Strategy of Global Outreach” and to realize
growing market. In other words, by clarifying growing sectors “where Japan shouldhave competitive edge”, the direction in which Japan should follow will become clear.
- 28 -

Provisional

As described above, the three plans have synergy effects one another. Therefore,
the government will formulate and implement progress schedules specifying targets
to be attained (KPI: Key Performance Indicator), deadlines, details for each policy
group and proceed with the three plans concurrently.
Opinions and recommendations from the Forum for Promoting Active Participationby the Young and Women, the Education Rebuilding Implementation Council, IT
Strategic Headquarters, The Ministerial Meeting on Strategy relating Infrastructure
Export and Economic Cooperation, the Council for Science and Technology Policy,
and Council for Regulatory Reform have been included in the action plans.
The government will continue to closely cooperate with these councils to
implement the plans.

- 29 -

Provisional

1. Industry Revitalization Plan

- 30 -

Provisional

1. Industry Revitalization Plan –revitalizing human talents, goods and funds
In order to make companies and human resources to be strong and competitive in
the global market, the government will intensively vitalize industries, reform
employment systems and strengthen power of human resources while urging theprivate sector to be decisive. The government will significantly enhance innovation
capability by abolishing vertically-segmented administrative system and by having
science technology policies and IT strategies with a global viewpoint. The
government will strive for being a minimum regulation country through regulatory
reform, thorough utilization of special zones and drastic improvement ofcompetitiveness as a business hub.
By achieving these, the government will recover manufacturing that can survive
against international competition, create high value-added service industries andrealize a society that facilitates activities of companies and brings out the fullpotential of individual.
1. Accelerating structural reform program (Vitalizing industries)
In order to make Japanese economy strong enough to compete in the global
market,the government will position the next five years (from FY2013 to FY2017) as
the period for accelerating structural reform to focus on initiatives to correct three
distortions in Japanese economy: under-investment, over-regulation and excessivecompetition.
To this end, the government will strive to- expand private investment, promote replacement of old equipments with newones, and strengthen sources of innovation;- reform overregulation and create a flexible system under which people caneasilychallenge new businesses;- resolve excessive competition, improve earning capacity and recover
manufacturing that can survive against international competition.
The government will decide policies by this summer and promptly submit the“Industrial Competitiveness Enhancement Act (provisional name)” to the Diet.
Centering on the act, the government will mobilize all policy resources intensively
and require corporate managers to make a bold decision of reform and to exercise
strong leadership in order to achieve self-sustaining continuous economic growththough increased private investment and income.
(1) Stimulating private investment,Private capital investment is expected to increase to 2 trillion yen or more thisyear thanks to the improvement of competitiveness as a business hub and ripple- 31 -

Provisional

effects ofthe tax system to promote production equipment investment, and the tax
system for innovative R&D program, investment promotion fund to promote
investment in state-of-the-art equipments, which have been implemented as
economic measures. In addition, positioning the next three years as the “period tointensively promote investment,” the government will mobilize all measures
including tax systems, budgets, financial measures, regulatory reform, andimprovement of systems to promote domestic investment and encourage private
investment from this year onward. The goal is to increase capital investment by
10% over the next three years from 63 trillion yen in FY 2012 and bring capital
investment back to the level before Lehman's fall (about 70 trillion yen/year [theaverage of five years by 2007]).
○ Promoting investment in state-of-the-art equipments
・ The government will strongly encourage to replace old production
equipments with state-of-the-art ones featuring higher productivity andhigher energy efficiency and so on. The government will examine
including tax incentive to support companies which proceed with thereplacement under these initiatives.
・ In order to win the global competition, the government will advance theconsideration of measures to support the use of leasing and topromote drastic capital investment for advanced medical equipment,
3D printers, etc. and conclude the results by the end of August thisyear. Based on the conclusion, the government will take necessary
measures including legislative ones.
・ As for standard home and small and medium-sized enterprises, thegovernment will promote initiatives based on private business andspread solar panels, storage batteries by cutting initial costs. To thisend, the government will advance the consideration of financial
support for companies that will start business to provide users facilities
without initial costs by supplying long-term fund necessary for theinvestment to purchase facilities in bulk together with utilizing
know-how of public-sector financial institutions combined withinvestment and financing. The government will conclude the results by
the end of August this year and take necessary measures including
legislative ones.
・ The government will make effort to maintain and enhance innovative
R&D program and advanced manufacturing functions which are“fundamental ones” within Japan. Considering structural change of the
supply chain, the government will intensively support manufacturing- 32 -

Provisional

aiming to realize the independent supporting industries while
complement roles played by downstream large companies so far.
(2) Establishing a system which enables challenges to frontiers being free fromanxiety
The government will proceed with fundamental regulatory reform including
electric power system reform and amendment of the Pharmaceutical Affairs Act
in targeted areas, human resources, education, employment, etc. for theStrategic Market Creation Plan to open up new frontiers. In addition to these
initiatives, the government will establish a system where corporations canchallenge new businesses flexibly and freely.
○ Creating a system to confirm legality
・ With the aim for corporations to be able to engage in businesses withcertainty in “gray zone” areas where it is not clear that the businesses
related to health improvement and prevention services are targetedby regulation or not, the government will formulate a comprehensive
policy package to establish a system to confirm legality of thebusinesses. The government will advance discuss to conclude theresults by the end of August this year and then take necessary
measures including legislative ones.
○ Establishing a system of special arrangements for Corporate Field
Tests to allow testing of new products and technology
・ The government will advance the consideration of establishment of asystem that verifies the nature of new regulations and assurance ofsafety by allowing regulatory special arrangement for companies withmotivation and technical capabilities with the purpose of field tests inorder to create new businesses and utilize new technologies andconclude the results by the end of August this year. Based on the
conclusion the government will take necessary measures including
legislative ones.
○ Increasing a sense of security concerning the use of new
businesses
・ In order for people to use new products and services while feelingsecure, the government will advance the consideration of
establishment of a system that evaluates quality of products andservices by an independent organization and conclude the results by- 33 -

Provisional

the end of August this year. Based on the conclusion the government
will take necessary measures including legislative ones.
(3) Promoting investment in business ventures and investment to challengebusinesses again fully utilizing resources in and outside JapanThe government will develop a system that creates venture businesses andnew businesses by fully utilizing latent technology, ideas, funds, human resourcesin large corporations and research institutions, undiscovered local businesses
and resources.
To this end, the government will implement comprehensive measures that
secure human resources who bear responsibility for venture businesses and new
businesses (including specialists who will strategically negotiate intellectual rights,etc.), improve judgment and ability of coordinating possessed by persons who act
as an intermediary between entrepreneurs and investors, private companies, etc.
and expand supply of risk money utilizing resources in and outside Japan. In
order to allow more and more funds to flow from individuals to venture companies
and effectively use funds and ability to judge of private companies, thegovernment will strive for measures to make investment in venture companies
and new businesses easier for private companies. Through these initiatives, thegovernment will activate the replacement of old industries with new ones to createa situation where the number of new companies exceeds the number ofcompanies that closed businesses and where new-business opening rate andbusiness closing rate will reach the same level as that of U.S. and U.K. (10%level) (current situation: both new-business opening rate and business closing
rate are 4.5% (annual average from 2004 to 2009).
○ Cultivating personnel who bear responsibility to create venturebusinesses and other new businesses, personnel who have mature
judgment and supporting personnel
・ The government will cultivate personnel who will challenge new
business and create growing companies through business model
formation supported by managers of leading venture companies,
capitalists and professionals as well as develop initiatives to cultivate
personnel who support business and to strengthen their cooperationby sharing know-how of hands-on support obtained from this andexpand comprehensive support system involving investors,
public-sector financial institutions, the private sector, etc. who provide
funds after businesses were established.
- 34 -

Provisional○ Encouraging individuals to invest in business ventures (improving
operation of the tax system for angel)・ The government will improve the operation of the Angel tax system forbetter understanding by venture companies and accountants who
support venture companies for streamlined procedures by thissummer and thoroughly inform the system to facilitate its use.
○ Encouraging the private sector to invest in business ventures
・ The government will advance the consideration of measures tofacilitate investment in venture companies using funds from theprivate sector in addition to individual investors and conclude theresults by the end of August this year. Based on the conclusion thegovernment will take necessary measures including legislative ones.
・ In order to promote supply of risk money effectively by the Innovation
Network Corporation of Japan and to enhance support venturecompanies, the government will streamline the decision making
process and improve the support system concerning investment inventure companies in the organization.
○ Diversifying fund raising (Crowdfunding, etc.)
・ The government will consider fund raising framework such as
crowdfunding (*) with the aim to increase supply of risk money incommercializing technologies and ideas and to utilize local resources.
Taking account of needs of market players and protection of investors,
the government will consider matters requiring system reform at the
Financial System Council and conclude result within this year. The
government will strive to increase supply of risk money to companies
that newly join the market after startup of business from household
economy by promoting spread of NISA (tax exemption small amountinvestment system).
* A system to raise funds via Internet sites by linking new/growing companies with a lotof investors who invest a small amount of money.

○Revising the personal guarantee system
・ With regard to the business practice of requiring business manager’s
personal guarantee in financing, the government will establish a
guideline about the personal guarantee system as soon as possibleby the end of this year with related parties of SME finance.This
guideline will recommend that the personal guarantee should not be- 35 -

Provisional

required under certain conditions including the case where corporate
asstes and personal assets are clearly separated. The guideline also
aims to give incentives to managers for early business restrucruing byassuring certain amount of personal property to be retained even after
the execution.
・ The government will also promote the use of alternative ways for loan,such as loan with guarantee contract with condition precedent, andABL (Asset Based Lending), etc..Public-sector financial institutions
will play more roles in expanding loan systems with the exemption or
eased conditions of personal guarantee and in strengthening
cooperation between public-sector and private sector financial
institutions.
○ Utilizing operating resources of existing companies (supporting
spin-off/carve-out and promoting open innovation)
・ The government will proceed with immediate full operation of a teamdedicated to the support of spin-off/carve-out (support of businessformation including handling of rights such as intellectual properties,
labor, and social security).
・ The government will promote open innovation by engaging ininitiatives to create new business by utilizing and combining existing
operating resource through cooperation among this dedicated team,the Development Bank of Japan, etc. and personnel having mature
judgment in business and supplying risk money which triggers private
funds in an integrated manner. Based on this, the government will
strive to develop an environment that creates venture companies andnew businesses with the lead of the private sector within the “period ofaccelerating structural reform.”(4) Promoting business restructuring and reorganization
The government will aim to recover manufacturing that survives against worldtechnology and business competitions by reforming the structure causing
over-competition in Japan, by facilitating innovation through bold investment, by
dramatically increasing earning capacity, etc.
To this end, the government will promote business restructuring andreorganization, and will support smooth movement of operational resources andlabor. In particular, in order to urge business managers to make bold decisions for“aggressive” business management, while introducing a system that encourages
shareholders and stakeholders to request companies to improve management,- 36 -

Provisional

the government will provide generous support to measures to reduce financial
burden due to organization restructuring and labor movement without
unemployment.
○ Promoting management reform to dramatically improve earning
capacity
・ In order to achieve innovation through bold investment, thegovernment will strongly promote strategic/drastic businessrestructuring (including spin-off/carve-out) to dramatically increase
earning capacity. In addition, the government will achieve measures
including tax incentives and financial support for companies thatfacilitate business restructuring and will take necessary measureswhile strictly following up implementation situation of these measures.
○ Promoting reorganization in the field that has excessive supply
structure・ Along with formulation of the “Industry Competitiveness Enhancement
Act (provisional name),” the government will establish a framework tourge efforts toward restructuring for areas whose structure ofoversupply/over competition has been left unsolved for many years.
Based on this framework, the government will take necessary
measures such as measures for smooth labor movement without
unemployment in order to support companies that engage in drastic
structural reform.
○ Strengthening corporate governance・ In order to back up aggressive business management, thegovernment will encourage active use of outside directors. Submitting
a bill to amend the Companies Act to the Diet at an early date andtaking measures to promote the introduction of independent outside
directors, the government will enhance initiatives to secure at least
one outside director.
・ With the aim of promoting sustainable growth of companies, discussand establish the principles for a wide range of institutional investors
to appropriately discharge their stewardship responsibilities throughconstructive dialogues with invested companies by the end of thisyear while considering discussion of the Council on Economic andFiscal Policy concerning the market economy system in Japan.
・ In order to correct low earning abilities of businesses that have been
- 37 -

Provisional

left unsolved over years, the government will urge the Ministry of
Economy, Trade and Industry and other relevant ministries andagencies to study measures to promote management improvement
and business restructuring.
・ The government will encourage securities exchanges in Japan to takemeasures that lead to enhanced corporate governance, for example,
by clarifying listing rules regarding appointment of outside directors
and developing new indexes for high-profile companies in terms of
profitability and management.
○ Supporting business takeover and succession
・ The government will expand the “Business succession support
centers” currently operated only in seven places as a one-stop contact
point of business succession throughout Japan to facilitate matchingof business succession through cooperation with local financial
institutions, etc.
・ The government will make efforts to relieve the burden of thebusiness succession due to personal guarantee through theestablishment of a guidline about personal guarantee system which
will recommend that personal guarantee should not be required
under certain conditions including the case where corporate asstes
and personal assets are clearly separated, and through promoting theloan systems with the exemption or eased conditions of personal
guarantee offered by public-sector financial institutions.

(5) Promoting overseas operations aiming to become a global leading company
The government will intensively support finance and human resources ofcompanies that achieve dramatically increased profitability through businessrestructuring, business reorganization and other efforts, boldly go into M&A
overseas and expand their business into global markets to become a global
leading company (not necessarily a global major that wins critical mass in the
global market or global major company but a global niche top company; that is acompany which is excellent in a specific area and shows its presence in theworld).
In addition, the government will support companies that have entered global
market so that they can reduce risk of business operations overseas.
○ Promoting overseas M&A activities/overseas expansion- 38 -

Provisional・ The government will advance the consideration of support measures
including financial measures and make a conclusion by the end of
August this year. Based on the conclusion, the government will takenecessary measures including legislative ones.
・ The government will intensively supply capital and long-term fund thatare necessary for a small and medium-sized enterprise striving tobecome a global niche top company and to enter overseas market byutilizing know-how of public-sector financial institutions, etc.
・ The government will encourage the use of “JBIC (Japan Bank forInternational Cooperation) Investment Facility Enhancing Global
Business Development” and “JBIC Loan Facility Enhancing Global
Business Development” that were established this year in order toextensively support global business development such as overseas
M&A by Japanese companies.
・ The government will support the global intellectual property strategies
of small and medium-sized enterprises (exemption from or reductionof cost concerning patent application, etc.).
○ Reducing risk of overseas business・ In order to reduce risk associated with overseas business activities ofJapanese companies and facilitate the overseas activities, thegovernment will advance the consideration of reform of tradeinsurance systems to enhance function of trade insurance in areas notcovered by private insurance at an early date and conclude results.
Based on the conclusion the government will take necessary
measures including legislative ones.

2. Reforming the employment system and reinforcing human resources capabilities
In the midst of economic globalization and aging population combined with thediminishing number of children, in order to lead the economy to new growth,recognizing that human resources are the greatest resource for Japan, thegovernment has to formulate drastic policies and clarify goals and deadlines of thepolicies to secure the number of workers (quantity of labor) and improve laborproductivity (quality of labor).
To this end, the government will immediately take countermeasures to the fallingbirthrate and at the same time, aiming to raise employment rate of people aged
between 20 and 64 from the current level of 75% to 80% by the end of 2020, thegovernment will make efforts to realize world-class higher education and labor- 39 -

Provisional

movement without unemployment. On the other hand, the government will expand
opportunities for the young, women and the elderly to take an active role in thesociety. Based on this, the government will establish a society where everyone
participate in social activities, improve their ability and fully exercise their ability.
(1) Policy change from excessive employment stability to labor fluidity (realizing
labor movement without unemployment)
The government will revise polices of employment stability that has expanded
since Lehman's fall to respond to rapidly deteriorating employment situation. In
order for individuals to change their job smoothly, to exercise their ability, and toplay an active role for economic growth, the government will drastically shift
policies to support labor movement including support for ability development.
Based on these, for five years from now the government will strive to decrease
the number of people who are out of job for more than six months by 20% with
9% of employment turnover (*) (for general workers excluding part-time workers).
* Employment turnover means the ratio of newly employees with work experience within one year
before the employment to the current employees (7.4% in 2011, the ratio of 9.2% is the highest since1975).

○ Drastically increasing budgetary resource, etc. to support labor
movement
・ The government will advance consideration in order to reverse budget
scale by 2015 by shifting large amount of budgetary resources from
employment adjustment fund (113.4 billion yen in 2012) to labor
movement support fund (240 million yen in 2012) and conclude
results by the end of August this year. After that the government willreflect the results into the budget request.
- Not only small and medium-sized enterprises but also large
companies will be targeted.
- The government will develop funding measures when a company
that moves its employees uses training offered by a private humanresource company.
- Funding will be utilized twice when entrusting support and whenrealizing re-employment.
- The government will develop funding measures for training(including OJT) implemented by a company that accepts
employees.
- The government will promote development of career consulting
technique to make labor movement involving career change- 40 -

Provisional

successful.
○ Reviewing the employment insurance system to support
re-education of the young etc.
・ The government will review the employment insurance system topromote job retraining of working people so that the young who are
non-permanent employees are able to change career and improve
career. The government will submit an amendment bill to the next
Ordinary Diet. At the same time, the government will take support
measures to provide assistance of expenses for employers who havetheir employees take job retraining programs.
○ Enhancing intermediary functions of temporary transfer/ transfer by
the Industrial Employment Stabilization Center of Japan・ The government will greatly enhance intermediary function of theIndustrial Employment Stabilization Center of Japan to support labor
movement without unemployment by temporary transfer/transfer,provide career consulting services, develop support plans responding
to individual issues, and implement lecture/job training utilizing
private-sector institutions.
(2) Enhancing matching function by utilizing the private-sector human resourcesbusiness
While promoting disclose of information held by the public employment security
office “Hello Work” to public, the government will make maximum use of theprivate-sector human resource business in order to promptly respond to a wide
variety of needs of the young who are out of employment after graduation, etc.
and women wishing to return to work, etc.
○ Disclosing information on job offer/job seeking held by “Hello Work”
・ The government will start disclosing information on job offer held by“Hello Work” to the private-sector human resource business andmunicipalities at an earliest date as possible within the next year andwill provide variety of other services. The government will advanceconsideration and conclude results by the end of August this year.
Based on the conclusion, the government will take necessary
measures.
・ The government will conduct a needs survey of job applicants and theprivate-sector human resource business on disclosure of job seeking- 41 -

Provisional

information held by “Hello Work” and conclude results within this year.
In addition, the government will start providing support for smoothguidance when job applicants of “Hello Work” hope to use theprivate-sector human resource business in a rapid manner.
・ Based on the experience of the “Hello Work” special zone, etc.,
considering intention of municipalities, the government expands
strengthened linkage between “Hello Work” and employment
agencies run by municipalities all over Japan.
○ Reforming and improving the system of financial incentive for trial
employment, etc.
・ The government will offer financial incentive for trial employment(about 56 thousand employees were covered by the fund in 2012) andother fund for employment to companies not only employ people
through introduction by Hello Work but also introduction from theprivate-sector human resource business and colleges from which they
graduated.
・ The government will expand the applicable scope of financial
incentive for trial employment to those who are out of employment
after graduation, have blank in their career due to child rearing, etc.
and are considered to have difficulty in obtain full-time employment
without trial employment in addition to the young not in education,
employment or training and part-time workers who are the main targetof the fund. The government will advance consideration to conclude
results by the end of August this year and will reflect the results into
the budget request, etc.
○ Utilizing the private-sector human resource business better
・ The government will advance the consideration of effective
employment support by making maximum use of the private-sector
human resource business for the operations described below
concerning counseling, occupational training, placement, etc. toconclude results by the end of August this year and will reflect theresults into the budget request, etc.
- Providing career counseling services and issue job cards topart-time workers who need detailed assistance (About 21
thousand job cards were issued at “Hello Work” all over Japan in
2012.)- Supporting people who are out of employment after graduation to- 42 -

Provisional

obtain full-time employment utilizing Employment Placement
Dispatching services (*)- Offering occupation training and placement to those who areaway from work due to child rearing/care in an uniformed manner* Employment Placement Dispatching means a type of Worker Dispatching in which
employment placement is prepared to be carried out after a certain dispatching period.

(3) Realizing various ways of working
The government will review systems to realize flexible and diversified ways ofworking so that individuals can take an active role in society according to theirlifestyle and wishes.
○ Reviewing laws on working hours
・ The government will study and analyze the situation of discretionary
work system for planning work and laws on working hours in a prompt
manner. The government will start comprehensive discussion in termsof work-life balance and increase of labor productivity at the Labor
Policy Council from autumn this year and conclude results within one
year.
○ Discussing issues concerning the Labor Contract Act for
researchers, etc.
・ Since influence of the Labor Contract Act on career development ofyoung researchers are pointed out, the government will immediately
start discussion on issues concerning the Labor Contract Act such as
career path of researchers, personnel and labor management atuniversities cooperating with relevant departments while considering
actual working conditionsof the research field and conclude results as
early as possible within one year. Based on the conclusion thegovernment will take necessary measures.
○ Reviewing the worker dispatching system
・ The government will hold discussion by specialists concerning natureof registered-type dispatching/dispatching to the manufacturingindustry and current system where dispatching period varies
significantly depending on whether the job falls under so-called “26special job categories” and conclude results by the end of August thisyear. In addition, the government will take necessary legislative
measures after having discussion at the Labor Policy Council.
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Provisional

At the same time, the government will promote model cases tosupport career development of dispatched workers.
○ Facilitating introduction of “pluralistic ways of working which will
give feeling secure”
・ Aiming to spread and promote model cases of “diversified full-time
employment” focusing on job duties, the government will collect,
inform/enlighten good practices and set up a council of specialists by
the end of this year in order to summarize points to remember about
employment management such as specified working conditions andpublicize it promptly. Based on these initiatives, the government willencourage trail introduction to companies.
・ The government will improve systems for ability evaluation such as
certificate exams in industries and promote "visualization” ofvocational ability.
○ Improving environment to raise minimum wages for continuous
economic growth・ In order to create a virtuous cycle of wage growth in all income groups
and increased earnings of companies, looking at future managementof the economy, the government will make efforts to raise minimum
wages. During the course, the government will expand support ofsmall and medium-sized enterprises to improve productivity, etc.

(4) Promoting active participation by women
The governments will intensively maximize high potentiality within women so
as for women to take an active role by decreasing the number of women who
leave work due to childbirth/child rearing and by increasing the percentage ofwomen in leadership position as a core of the growth strategy. The government
will promote environment where women can take an active role based onrecommendation of the “Forum for Promoting Active Participation by the Youngand Women.”Through these efforts, the government will strive for solving the “M-shaped carve
problem” and attaining 73% of employment rate for women aged between 25 and
44 in 2020 (about five points increased from the level of 2012).
○ Offering incentives to companies that make efforts to promote active
participation by women and to support balancing work life and- 44 -

Provisionalfamily life, etc.
・ The government will strengthen support by utilizing subsidy systemand tax measures for companies, proceed with initiatives throughpublic procurement, improve a system that recognizes good practices,
run campaigns, etc. to increase the number of women who serve as
an executive officer and who are in a managerial position (encourage
a listing company to appoint at least one women to an executive
officer), promote disclosure of information on appointment of women,create database of women resources, etc.
○ Supporting active participation by women according to the lifestyleof women・ The government will develop working environment where it is easierfor men and women who wish to take childcare leave or selectshort-time working hours to do so until their child will be three years
old and create a system to subsidy companies which make efforts toimprove ability of employees who are on childcare leave or return to
work.
・ The government will develop and support a “plan for support of
returning work after child-raising leave (provisional name)” andconsider extending/enhancing the Act on Advancement of Measures
to Support Raising Next-Generation Children that will expire at theend of next year. In addition, the government will support women
researchers in particular who have difficulty in balancing careers andchild-raising. In addition, the government will encourage more men to
actively take part in family chores and child-raising.
・ The government will comprehensively support reemployment by
utilizing internship and trial employment, expand “Mothers’ HelloWork”, etc., support single-female parents with employment andsupport working people with re-education. The government will also
encourage new businesses by women ranging from businesses
rooted in the community to businesses going to enter the global
market by supporting funding and management know-how.
・ Facing the problem of declining birth rate which could undermine thefoundation of economy, in addition to strengthening support ofchild-raising and changing ways of working, based on “urgent
countermeasures to break through crisis of declining birthrate”(determined at the countermeasure meeting for society with declining
birth rate on July 7, this year), the government will provide- 45 -

Provisional

comprehensive support for marriage, pregnancy and childbirth suchas provision of information on pregnancy, childbirth, etc. and more
support after childbirth.
○ Creating an environment where both men and women can strikebalance between work and child raising, etc.
・ The government will promote various and flexible ways of working byimplementing field test projects to establish new model to spread
telework, regulate long work hours, facilitate educational andenlightenment activities, promote work-life balance further anddiscuss measures to reduce burden of expenses for a baby sitter, ahousekeeper, etc. In addition, the government will advance theconsideration of tax system/social security system on which shall not
be affected by the selection of ways of working.
・ On the basis of the “After-school Child Plan,” the government will
improve after-school child clubs and after-school children's class.
○ Promoting initiatives to expand employment/promotion of women in
public employees
・ As the proverb “Whoever suggests should start” says, the government
will make public employees take a lead in employment/promotion of
women, support of balancing between work and child rearing, etc. by
men and women.
In particular, since the problem of childcare waiting lists is hindering womenfrom participating in society, improving childcare service is an urgent issue.
Therefore, the government will steadily implement a “new system to support
children/child raising” for family support, comprehensively provide high-quality
child education/childcare, support child raising in the community, etc. and develop“accelerating the zero childcare waiting list project” for five years from this year inorder to take as many measures as possible for municipalities without waiting forthe start of new system two years later. The government will strive to eliminate“childcare waiting lists” by ensuring acceptance of about 200 thousand children
for two years from now, about 400 thousand children including latent needs forchildcare by the end of 2017, the peak of childcare needs while maintaining
quality of childcare. In that regard, the government will accelerate preparation offacilities by various operating bodies including social welfare corporations andbusiness corporations.
- 46 -

Provisional○ Urgent project (this year/next year)
・ During the implementing period of “accelerating the zero childcare
waiting list project,” the government will position this year/next year as
the “period for urgent intensive efforts,” and strongly support
municipalities with willingness through the support package consistingof the following five main parts:(1) Developing childcare centers by lease and utilizing
government-owned land (facilities)- Increasing facilities expense. Utilizing lease suitable for urban
areas.
(2) Ensuring nursery teachers who support the increasing numberof children who need childcare (human talents)- Promoting comeback of potential nursery teachers, improving
treatment, supporting unqualified nursery teachers for
qualification acquisition who work at non-registered childcare
facilities.
(3) Bringing forward new systems including small-scale childcare
services- Bringing forward new systems such as small-scare childcare
services, overtime childcare at kindergartens, etc. (ensuringchildcare facilities that immediately accept children)(4) Supporting non-registered childcare facilities that wish to beapproved- Subsidizing rental fee and cost for renovation, relocation,
qualification acquisition, operation, etc., and changing thesechildcare facilities into registered childcare facilities withensured quality within five years in a structure way.
(5) Supporting employer-provided childcare services- Relaxing subsidy requirements, “more than half of theemployees children”○ Reviewing requirements of installation of exterior stairways
・ The government will immediately review requirements for subsidy
from the government that mandate installation of exterior stairways forescape when setting employer-provided child care services on the
fourth floor or above in order to conform to the municipalities
ordinance that specifies standards for establishment of registeredchildcare facilities. In addition, the government will advance theconsideration of scope and alternatives of reasonable evacuation- 47 -

Provisional

standards in order to relax establishment standards for registeredchildcare facilities laid out by the government while ensuring the equallevel of safety and alternatives.
(5) Promoting active participation by the young/the elderly
The government will strive to create “Society for All,” the society where anyone
who has willingness can take an active role. In particular, it is important to nurturethe young who forge the future of Japan so that the young can develop theirability to the full extent to compete and succeed in the world competition.
Therefore, based on recommendation of the “Forum for Promoting Active
Participation by the Young and Women,” the government will promote success ofthe young who drive growth of Japan.
○ Promoting success of the young
・ Setting a goal of the number of students participating in internship, thegovernment will establish a system that coordinates universities in thecommunity and the industrial world, expand opportunities forinternship, research of local businesses and matching, enhance asystem that supports ranging from career education to being
employed in a consistent way. In addition, considering opinions fromrelevant organizations, the government will inform the importance ofinternship thoroughly to promote the use of it. Moreover, thegovernment will improve Scholarship Loan (implemented by Japan
Students Services Organization) so that the young, etc. can study atuniversity regardless of their economic situations.
・ As a total support ranging from job search to ability development after
joining a company, the government will strive to increase the numberof companies called a “company supporting the young” that discloses
detailed employment information and actively employs and cultivatesthe young, enhance function of the Hello Work to support new
graduates by considering those who spend three years or less after
graduation as new graduates concerning matching of students andcompanies, provide new support to small and medium-sizedenterprises that implement training of their young employees
supporting people who are out of employment after graduation to
obtain full-time employment utilizing Employment Placement
Dispatching services [reposted], and support retention after
employment.
・ The government will improve response to companies which are- 48 -

Provisional

suspicious of using young employees once and throw them away
such as overwork and unpaid overtime work by strengthening
measures such as counseling system, dissemination of information,
supervision, etc.
・ The government will establish a system where small andmedium-sized enterprises in the community cooperate to cultivate
human resources that will be driving force of the local economy andwill assist smooth temporary transfer among companies, training
seminars for new employees on a conjoint basis.
・ While utilizing business competitions, in order to facilitate starting new
business, the government will promote information dispatch via portalsites, establish a support system by specialists and examine effective
ways of funding through utilizing crowdfunding, etc.
・ The government will help part-time workers etc., and become regular
employees by improving operation of “Wakamono (the young) Hello
Work,” and by developing/implementing training courses to raise
employability
byorganizing
industry-academic-government
consortium on a local level and support employment of the young notin education, employment by offering counseling by NPOs, etc.
・ The government will make efforts to smoothly change the start ofrecruiting time for students who will graduate in 2015 onward tosecure learning time, facilitate overseas education (publicity activities
will be started on or after March 1 of the year immediately prior to theyear of graduation/completion and subsequent employment selection
will start on or after August 1 of the year of graduation/completion)and spread information on good points of small and medium-sizedenterprises, etc.
・ The government will encourage the private sector to utilize
information held by “Hello Work” [reposted]
・ The government will promote reeducation of working people by newly
developing and implementing customized occupational education
programs to cultivate highly-skilled human resources and core humanresources through cooperation between universities, graduate
schools, vocational schools, etc. and the industrial world as well as
assisting those who studied under the programs. In addition, withregard to specialized vocational high schools, the government will
promote restructuring of subjects based on needs of society andcompanies while encouraging the schools to deepen cooperation withthe community and the industrial world. Furthermore, the government- 49 -

Provisional

will review flexible operation of Scholarship Loan (implemented by
Japan Students Services Organization) and employment insurance
systems.
○ Promoting active participation by the elderly
・ Aiming for a society where one can be in active service throughout life,
the government will support small and medium-sized enterprises thatengage in continuous employment of the elderly to develop
occupational filed, enhance support of re-employment of the elderly
and promote model cases for employment by matching withdiversified local needs.
・ The government will promote support of disabled people, people withrefractory disease, cancer, etc. to participate in society byencouraging employment of these people.
(6) University reforms
Based on recommendation of the “Education Rebuilding Implementation
Council” concerning overview of university reforms, with respect to national
universities, from the viewpoint to strengthening industrial competitiveness, thegovernment will strive for world’s top-level education through globalization,
academia-industry collaboration, cultivation of innovative human resources,
expanded use of young/foreign faculty members, etc. To this end, the government
will immediately undertake establishment of systems to evaluate universities,
reallocation of resources such as faculty members /budget and organizational
restructuring beyond the framework of universities and faculties , clarification of
the allocation of resources within the university, mass employment of foreign
faculty members, revise their payroll and personal systems by the full-fledged
introduction of the annual salary system , a mixed salary system permitting
remuneration from companies,etc.,and improve the strategic and prioritizedallocation of the management expenses grants for national universities. Within
the next three years from now, the government will encourage bold andpioneeringreforms
toacceleratethereforms,
andpreparespecific/comprehensive reform plans to complete the reforms before the third
Mid-term Target period starts (from fiscal 2016).
In addition, the government will review systems as necessary, and establish the“Japan’s Global Universities (provisional name)” that compete in the world. The
government will make efforts so that ten or more Japanese universities will beranked in the top 100 universities in the world within the next decade.
- 50 -

Provisional○ Forming a world top-level university group by globalizing education
systems・ The government will immediately focus on supporting universities that
aggressively proceed with reforms such as globalization of humanresources/education systems, and increase in the number of lecturesin English.
○ Drastically strengthening innovation capability and developing
human resources in science and technology
・ By the end of current fiscal year, the government will formulate a“Strategy for Developing Human Resources in Science andTechnology” aiming to improve content of education, ensure
education quality, and secure the human resources in science andtechnology through dialogue with the industries, and newly set up the“Industry-Academia-Government Roundtable Council (provisionalname)” to advance the strategy.
・ Aim to establish 20 or more new university-launched industries orbusiness within the next decade and in order to enhance theirinnovation capability, the government will allow investment by national
universities in university-launched venture support funds, etc.,. To thisend, the government will promptly submit necessary bills to the Diet.
○ Offering ample opportunities to competent young and foreign
researchers through personnel and salary system reform・ Aim to offer about 1,500 young and foreign faculty members full-time
faculty positions in three years from now, the government encourage
immediately national universities to full-fledgy introduce of the annual
salary system and the mixed-salary system permitting remunerationfrom companies, etc..
○ Strengthening foundation for university reforms
・ The government will enhance systems including the National
University Corporation Evaluation Committee and carefully follow up
progress of university reforms.
・ Fundamental governance reforms, including study of the revision of
the School Education Law and other ordinances and intra-university
regulations, should be carried out in order to clarify the role of faculty
councils and revise the duties of department heads and the functionsof university boards of directors, and strengthen the operational- 51 -

Provisional

functions of auditors, etc. and the government will submit bills to theOrdinary Diet, if necessary.
・ The government will encourage national universities to immediately
start the clarification of the allocation of resources such as faculty
members and budget within the universit y , and improve strategic andprioritized allocation of the management expenses grants for national
universities. Moreover, the government will establish new evaluation
indices from 2016 and radically revise the system of the management
expenses grants for national universities .
(7) Strengthening human resources capabilities for global operation activities
In order to cultivate human resources that can survive global competition,
based on recommendation of the “Education Rebuilding Implementation Council,”the government will double the number of Japanese students who study abroadfrom 60 thousand students (2010) to 120 thousand students by the end of 2020
by utilizing international English examinations, providing opportunities to study
abroad for all students who have the desires and talents and forming university
groups that lead education responding to globalization. The government will also
strive to double the number of excellent foreign students from 140 thousand
students in 2012 to 300 thousand students by 2020 (achieving the “The 300
thousand International Students Plan”).
In addition, the government will expand opportunities of re-education
corresponding to the changes in the industrial structure.
○ Utilizing TOEFL, etc. for the national public service exams anduniversity entrance exams
・ The government will introduce external English exams in the national
public service comprehensive work exams from 2015 and promote
the use of TOEFL, etc. for university entrance exams and approval of
graduation.
○ Providing opportunities to study abroad for all students who havethe desires and talents
・ In order to offer opportunities to study at overseas highschools/universities to all the young with desires and talents who willtake an active role in the world, the government will promote donation
to reduce economical burden of students to study aboard and create a
new system for benefit etc., where public and private sectors
cooperate with each other. In addition, together with support- 52 -

Provisional

measures, the government will advance consideration on specificpackages of necessary measures including preparing educational
environments in universities by promoting sister school relationships,
credit transfer with overseas universities and so on, and conclude
results by the end of August this year. Then the government will reflect
the results into the budget request.
・ The government will change the start of recruiting time [reposted] andcreate environment for autumn admissions that facilitate various
experiences and activities.
・ In parallel with securing opportunities to study aboard, thegovernment will select overseas areas to be focused to obtain
excellent foreign students strategically, improve and support overseas
bases of universities, etc. The government will also strengthen
networks to recognize people who studied in Japan and actively
accept excellent foreign students.
○ Forming school groups that lead education responding to
globalization
・ The government will establish a new type of schools (“Japan’s Global
High Schools (provisional name)” that offer education to nurture
people who show leadership in the world.
・ The government should develop and introduce a International
Baccalaureate education programme in Japanese for some of thesubjects, and thereby greatly increase the number of accredited
schools (200 schools by 2018).
○ Enhancing English language education in elementary and secondary
schools・ The government will examine the result of foreign language activities
for fifth and sixth graders within this year. At the same time, thegovernment will start examination of the possibility of starting English
instruction from an earlier grade, increasing classroom hours forEnglish, making English an official subject, reviewing teaching staff
allocation in elementary schools, and conducting of English classes at
the junior high school-level in English this year, and make changes asnecessary.

○ Expanding opportunities of re-education of adult learners in- 53 -

Provisional

response to the needs of Industry
・ The government will support universities and professional training
colleges to develop and provide specialized educational programs
which are co-organized with Industry [reposted].
・ The government will encourage the Service Productivity & Innovation
for Growth to revitalize its activities to be nationwide, decuple thenumber of participating companies by the end of next year anddevelop human resources and support corporate management in theservice industry on a full scale aiming for the high-value added service
indudtry.
(8) Utilizing highly skilled overseas personnel
The government will review the points-based preferential immigration treatment
for highly skilled foreign professionals as a series of facilitation of comprehensive
environmental improvement to promote active participation by overseas humanresources with advanced skill and management know-how in Japan.
○ Reviewing the points-based preferential immigration treatment for
highly skilled foreign professionals
・The government will review preferential treatment for highly skilledoverseas personnel including reviewing annual income criteria for
certifying highly skilled overseas personnel (reviewing the application
scope of rewards to be considered as annual income, etc.), andshortening the period of stay for permission of permanent residence(change from the current 5 years to three years, etc.) and will start a new
system by the end of this year.

3. Promoting Science, Technology and Innovation
In recent years, achievement of innovative R&D Support program is not turned into
actual utilization smoothly and Japanese manufacturing that had competitive edge isfacing difficulty in the competition with emerging countries. Japan “excels intechnology but loses in business” and in some cases, Japan “even loses intechnology.” It is necessary to promote investment in Japanese Innovative R&D
Support Program to revitalize Japan as a "nation based on the creativity of scienceand technology.” From now, the government will restore its system, promote
innovative R&D support programs focusing on strategic fields, translate theachievement into practical applications, and promote intellectual property strategies
and standardization strategies in order to acquire market share. Based on these,- 54 -

Provisionalsetting a goal of becoming the most innovative in the world within five years from now(Japan is the fifth in the ranking of the World Economic Forum (*) at present), thegovernment will strive to be a “nation which continues to be competitive in technology
as well as in business.”
To this end, the government will reinforce the headquarter functions of the Council
for Science and Technology Policy, eliminate silo structure within the government anddeploy policy resources with priority into strategic fields. In order to maximize
achievement of government’s innovative R&D support program, the government will
create an environment suitable for science, technology and innovation in universities
and research institutes, drastically promote exit-oriented innovative R&D support
programs together with institutional reform, and create a system for practicalapplications/commercialization. Furthermore, the government will encourage theprivate sector to actively invest in innovative R&D support programs, accelerate
development from closed innovation into open innovation and create a virtuous cycleofscience,technology
andinnovation
that
lead
to
practical
applications/commercialization.
Powerfully promoting Comprehensive Strategies on Science, technology andinnovation (decided by the Cabinet on June 7 this year) through intensive andintegrated efforts by relevant government agencies is the key for success of growthstrategies. For this, while maintaining integrity with relevant measures, thegovernment will intensively take the following measures:*The Global Competitiveness Report 2012-2013 Index 12th pillar: Innovation(1) Reinforcing headquater functions of the “Council for Science and Technology
Policy”
In order to reinforce headquater function of the “Council for Science andTechnology Policy” necessary to allocate resources based on growth strategies
by eliminating silo structure within the government, the government will formulate
a progress schedule including improvement of organizations, budget requests(Cabinet Office budget), and law amendment by the end of August this year andwill implement them from next year.
○ Strategically formulating the government-wide budget concerningscience and technology
・ The government will introduce a new mechanism where the Council
for Science and Technology Policy plays a leading role in formulating
the government-wide budget concerning science and technology at
the stage of budget request next year.
- 55 -

Provisional○ Drastically strengthening function of the secretariat of the “Council
for Science and Technology Policy”
・ With the cooperation of relevant ministries, the industrial world,
universities, etc., the government will reinforce the secretariat using
excellent personnel with expert knowledge for long time.
・ The government will encourage cooperation with relevant ministries
and government-affiliated think tanks to collect, examine analyze
relevant information in and outside Japan necessary for planning.
・ In order to accelerate innovation creation, the government will actively
utilize vitality of the industrial world for the operation of the “Council for
Science and Technology Policy.”○ Actively promoting PDCA while emphasizing outcome
・In order to accelerate solving national issues, the government will
promote PDCA of R&D focusing on outcome and analyze/evaluate
situations (progress and its obstacles if any), concerning creation of
innovation and improvement of environment. The “Council for Scienceand Technology Policy” will request relevant ministries to take remedialactions as necessary.
(2) Promoting the Strategic Innovation Creation Program
The role of science, technology and innovation is very significant to achieve the“Strategic Market Creation Plan.” In order to solve important national issues, thegovernment will identify core technologies and create strategic markets throughefforts based on a roadmap looking at the entire course from basic research to
the exit (practical applications/commercialization). The government will create the“Strategic Innovation Creation Program (provisional name)” to allocate resources
intensively to cross-ministry initiatives based on this roadmap over several years.
The government will work out the concrete measures at the Council for Scienceand Technology Policy by the end of August this year, review R&D budget for thewhole nation in order to maximize its efficiency and effectiveness, and then,include the necessary expenses into the Cabinet Office budget.
○ Establishing the Strategic Innovation Creation Program・ In order to fulfill comprehensive coordination function with eachministry effectively/efficiently, the government will establish the“Strategic Innovation Creation Program (provisional name)” in the
Cabinet Office, and promote R&D, etc. looking at the entire course
from basic research to the exit through cooperation with the industrial- 56 -

Provisional

world, the academic world and ministries.
○ Framework to promote the program
・ The government will develop a framework for workable PDCA tocoordinate relevant measures of each ministry, appointment of aprogram director, etc.
(3) Establishing Innovative R&D Support Program
The government will make efforts to translate the achievement of the current
FIRST (Funding Program for World-Leading Innovative R&D on Science andTechnology) into practical applications unfailingly. Furthermore, in order to raise
the level of R&D on the whole, as a part of growth strategies, referring to theframework of DARPA (Defense Advanced Research Projects Agency) in the U.S.,
the government will establish a program (Innovative R&D Support Program(provisional name)) to select innovative research themes which have significant
impact from a long-term perspective and boldly promote unique researches under
the responsibility of the authorized program manager. While making use of natureof the current FIRST in terms of budget use, the government will advanceconsiderations to conclude results by the end of August this year and reflect theresults into the budget request, etc.
The government will select themes that will bring major change of the nature of
economic society/industry in the future and involve knowledgeable people in theindustry more deeply in the selection process.
(4) Enhancing functions of national research institutes
In order to intensively and effectively promote R&D and achieve growthstrategies, the government will review desirable goals for efficient business
operation of research institutes and formulate budget with flexibility based on thedetails of R&D and evaluation to enhance function of research and development
institutes.
○ Establishing the world’s best research institute system
・ With respect to research institutes, the government will review thesystem/organization of incorporated administrative agencies,
cooperating with all the relevant ministries, and will establish a new
system. It makes the world's top-level operation of incorporated
administrative agencies according to characteristics of R&D(long-term, uncertain, unforeseeable, and specialized) (aiming tosubmit a bill to the next Ordinary Diet).
- 57 -

Provisional○ Responding to specific issues to be improved
・ The government will immediately make a clear distinction between
issues that require legislative measures and issues that can be
improved through operation. The government will promptly takemeasures for issues that can be solved by improving operation of thecurrent systems (such as salary, procurement, handling ofself-generated income, carry-over beyond mid-term object period, andother issues that require improvement). In particular, in order toprovide incentives for active use of external funds, the government will
review systems where subsidy for operating expenses is reduced inproportion to the amount of self-generated income (such as donation
income).
(5) Securing funds for research support personnel
The government will promote measures including projects to promote theenhanced research universities, etc. so that researchers will be able toconcentrate on their research to achieve their goals. The government will ensurethat personnel such as research administrators who support research areallocated.
In addition, the government will promote voluntary initiatives at universities tosecure human resources that support researches and will strive to secure 30% of
indirect costs in the system of competitive research funds. Furthermore, in orderto ensure human resources that support researches stably on the long-term basis,the government will make efforts to categorize human resources according totheir types, establish a position as specialists, and build a nationwide network
under the industry-academic-government cooperation.
The government will consider these measures to reach a conclusion by the endof August this year and reflect them in the budget request, etc.
(6) Increasing R&D investment by the public and private sectors
Aiming to revive private investment on R&D (compared to GDP) to be the top in
the world in three years from now, the government will promoteindustry-academic-government open innovation and effective use of R&D
facilities
inresearch
institutes/universities,
supporttechnology
development/practical applications for R&D venture enterprise, reform
regulations
tofacilitate
intellectual
property
strategies/international
standardization and innovation and improve environment for company investment
on R&D by a new tax system for R&D, in order to offer more incentives to R&D- 58 -

Provisional

investment.
Through these efforts, in addition to the goal that R&D investment by both the
public and private sectors will be 4% of GDP or higher, the government will strive
to make R&D investment by the government be 1% of GDP. In this case, the total
amount of the government R&D investment should be about 25 trillion yen during
the period of the fourth Science and Technology Basic Plan (estimated on theassumption of the government R&D investment to be 1% of GDP, nominal growthrate of GDP to be 2.8% on average during the same period) (decided by the
Cabinet on August 19, 2011). The government will strive to secure necessary
expenses to promote measures included in the basic plan, in parallel with efforts
to restore fiscal soundness even in the situation where financial conditions
become worse and critical.
(7) Strengthening intellectual property strategies/standardization strategies
Considering expanding global economic activities, the government will
drastically strengthen intellectual property strategies/standardization strategies byaccelerating review, promoting top standard system, creating a world classcertification system to realize innovation cycle where industries including small
and medium-sized enterprises and people smoothly make innovation happen andobtain rights to use the innovation both in and outside of Japan.
○ Achieving speedy/high quality examination comparable in the world
・ By improving/enhancing examination systems such as using
fixed-term examiners, the government will strive to make the period of
waiting for examination be 11 months by the end of this fiscal year andmake the subsequent time necessary for grant of rights be 36 months
or shorter by the end of FY2015. The government will start an
integrated examination, which is a system to examine various
technologies, etc. as a whole, from this fiscal year.
○ Supporting protection/acquisition of rights on a global scale
including emerging countries
・ The government will improve dispatching of human resource toemerging countries in Asia and acceptance of trainee and also
expand scope of application of the Patent Prosecution Highway (thesystem for early examination of patent application that is patented inother countries). Furthermore, the government will finalize a draft
concerning the review of the industrial design protection systemcorresponding to the Hague Agreement within this fiscal year, and- 59 -

Provisional

subsequently submit the relevant bills to the Diet in a swift manner, inorder to make protection of product design, etc. easier on theinternational scale. The government will establish a system to provide
the private sector Chinese patent documents translated into Japanesewithin six months after the Japan Patent Office receives the data by
the end of FY2015.
○ Reviewing the employee invention system in order not to impede
companies from activities on the global scale
・ In order to reduce managerial risk associated with global businessactivities of companies in the world, the government will review thesystem such as to make a patent right for an employee invention
belong to the company or to leave attribution of a patent right for an
employee invention to the determination by contract between theemployer and the employee, and summarize issues by the middle ofnext year then to reach conclusion.
○ Reviewing standards/certification systems bearing overseas
activities in mind
・ In order that knowledge of Japanese companies will be used more
effectively, the government will make efforts to increase the number ofthe holding of chair or secretariat positions for standard development
in international standardization organizations from 78 positions at theend of 2010 to be the third (95 positions) in the world by the end of2015 so that strategically promote international standardization.
Moreover, the government will examine the desirable important
foundation for certification compatible in the world to conclude results
within this fiscal year and improve the foundations sequentially byenhancing domestic certification organizations, etc.
4. Becoming the world’s leading IT society
Toward activated innovation led by the private sector utilizing IT, in order to achieve
the world top-level business environment, the government will vigorously promote a
new IT strategy (approved by the Cabinet on June 14 this year), drastically review
regulations/systems and improve the foundation concerning telecommunication,
cyber security and human resources.
(1) Reforming regulations/systems suitable for the age that the existence of IT is“natural”- 60 -

Provisional

Regarding innovation through utilizing IT and data, the government will
advance radical reform of regulations/systems so that Japanese companies do
not fall behind other countries. In the course of this effort, the government will
examine the necessity of additional legislative measures to promote IT utilization(the “basic law” to promote utilization of IT).
○ Formulating intensive action plans for reform of regulations/systems
・ In order to expand IT utilization, the “IT Strategic Headquarters” will
examine and review relevant systems (including ones whose
operation is not clearly interpreted) including services and proceduresthat are currently predicted on face-to-face meeting or the exchangeof hard copy documents while cooperating with the “Council for
Regulatory Reform,” and will formulate “the Intensive Action Plan forRegulatory and Institutional Reform to Expand Utilization of IT(provisional name)” by near the end of this year.
○ Promoting the world’s best environment for utilization of open data
and big data
・ In order to develop the world’s best environment that encourages useof open data and big data, the government will promptly establish a
new review organization under the “IT Strategic Headquarters” andwill formulate rules of data utilization through cooperation with the“Council for Regulatory Reform” considering the balance between
data usage and privacy protection as early as possible this year. At
the same time, the government will develop the institutional reform
policies, which will outlook new legal measures, including theestablishment of third-party review organizations which have thepower of dispute settlement within this year.
(2) Promoting private sector access to public data and developing innovativeelectronic administrative services
As the government CIO was enshrined in law, the “IT Strategic Headquarters”
and other government agencies will establish electric citizen/users centric
administrative services. Based on this, the government will achieve world’s
highest level of public data disclosure in a machine-readable way (with a dataset
totaling over 10,000) by the end of 2015, decrease the number of systems by halffrom the current 1,500 information systems in the next five years by encouraging
use of cloud system and reduce operational cost by 30% during the next eight
years (excluding those that require special consideration).
- 61 -

Provisional○ Promoting private sector access to public data
・ The government will make public data open in principle via theInternet in the forms and under the rules that make business use
easier, while giving considerable thought to personal information andsecurity. To this end, the government will launch the data catalogue
site (a Japanese version of “data.gov”) for general guidance andcrossover search of public data on a trial base by autumn this year,
post information which should be preferentially disclosed to theprivate sector, such as geospatial information, procurement
information, statistics and disaster prevention/alleviation on the siteand start full operation from next fiscal year.
○ Reforming operation and enhancing IT governance in thegovernment
・ The government will make drastic effort toward business process
re-engineering (BPR) when making IT investment. The government
will formulate a roadmap toward the reform of government information
system within this year, abolish or merge overlapping information
systems and rigorously adopt cloud system in government information
system. In addition, the government will establish PDCA cycle of IT
investment management through utilizing the Japanese version of the“IT dashboard” (the system where people can access lists of thegovernment’s IT investment situations via the Internet) as early as
possible next fiscal year.
○ Providing more convenient electric administrative services
・ By introduction of the Social Security and Tax Number System startingfrom January 2016, the government will promote operational reform in
the area of social security/tax, etc. where the Social Security and Tax
Number are used and achieve convenient administrative service withless complexity, correct and speedy processing. In particular, thegovernment will develop the “My Portal (provisional name)” for theprocedures whose needs from citizen are high by July 2017 and start
convenient on-line services for individuals.
・ The government will categorize rules on identification procedures
according to their types and review identification procedures on theassumption of on-line use, in order to achieve both improving the levelof convenience for entering contracts or for using services and- 62 -

Provisional

ensured protection of privacy and accuracy of identification.
(3) Realizing safe/convenient life environment through IT utilization
In order to realize society where people can live safely/conveniently by utilizing
big data, etc., the government will make efforts to solve important cross-sectional
issues by utilizing IT through cooperation among relevant ministries.
○ Solving cross-sectional issues by utilizing IT
・ The “IT Strategic Headquarters” will identify issues and regions to besolved in areas of local revitalization, improvement of administrative
efficiency, geospatial information, agriculture, medical service/health,resource/energy, disaster prevention/alleviation, road traffic, education,etc. by the end of August this year, and formulate specific measures,such as regulational reform and policy implementation, to intensively
address the issues. Furthermore, the government will strive to spreadthe success cases as a package overseas to make international
contribution and to help enhance international competitiveness ofJapan.
(4) Developing the world’s top-level telecommunication infrastructure
Developing both fixed and wireless telecommunication infrastructure which isoverwhelmingly fast, unlimitedly low-priced, open and able to provide a wide
variety of service will enhance competitiveness of all industries which use theinfrastructure. To this end, the government will further encourage competition in
the telecommunication area and strive to keep the current No.1 position in OECDmember countries for the comparison of broadband charges (per unit speed).
○ Translating the world’s top-level telecommunication infrastructure
into practical applications
・ In order to strive for practical applications of the world’s top-level
photonic network technology (400Gbps) and network virtualization
technology, the government will make the test bed (field test
environment using these technologies) widely open to industry,
academia and government from next fiscal year to assist private
carriers, etc. in developing new services.
・ In order to translate the world’s most advanced fourth-generation
mobile communication system (4G) into practical applications early,
the government will develop systems necessary to introduce newtechnologies within this year and allocate new frequency bands by the- 63 -

Provisionalend of next year. Moreover, the government will secure frequencies
for additional allocation to support for further advancement of 4G andinternational expansion of Japanese technology by the end of 2015
FY in an internationally harmonized manner.
○ Reviewing competition policies for lower charges and diversified
services・The government will start, from this summer, verification processes
concerning competition policies in the telecommunication area including
measures for further liberalization of NGN (Next Generation Network)and promotion of competition in mobile markets and will wash out issues
to be considered within this year. Based on this, the government will
determine the direction of specific institutional revision including the
Telecommunications Business Act by the end of next year.
(5) Promoting cyber security measures
In order to build robust and vigorous cyber space which is suitable for theworld’s top-lever IT society, the government will aggressively develop cybersecurity measures under the “Cyber Security Strategy” by enhancing security
level and response systems in governmental organizations and important
infrastructure and by promoting international strategies.
○ Strengthening
measuresagainstincidents
inimportantinfrastructure fields
・ In order to enhance protection of important infrastructure from cyberattacks, the “Information Security Policy Council” will advanceconsideration on the range of important infrastructure and theframework for information sharing between business operators ofimportant infrastructure and governmental organizations and will
formulate new action plans by the end of this fiscal year.
○ Formulating international strategies concerning cyber security
・ In order to enhance multilateral partnership among countries/areas
having strategic strong tie with Japan and accelerate international
expansion of security technology that is our competitive edge, the“Information Security Policy Council” will formulate new cyber security
international strategies by the end of this fiscal year. The government
will also encourage starting domestic evaluation/certification about
security of control systems within next fiscal year to promote- 64 -

Provisional

improvement/export of infrastructure.
(6) Cultivating/securing highly-skilled IT human resources that will be the source ofindustrial competitivenessThe government will cultivate/secure highly-skilled IT human resources having
ability to create new innovation through utilizing IT and data.
○ Acquiring a new type of skills for the 21st century utilizing IT
・ The government will organize and promote measures to expand
education using one information terminal for each student on a fullscale before 2020 begins. The government will also promote
innovation of classes such as interactive education, remote education
on a global basis, etc. by advancing development of digital teachingmaterials and improving teachers’ instruction ability. In addition, thegovernment will establish framework to continuously cultivate
practical IT human resources through industry-university-government
cooperation by the end of next fiscal year and promote IT education
including programming education from the compulsory education
stage.
○ Clarifying and utilizing skill levels of IT human resources
・ The government will identify skills/tasks necessary for specialists ineach field of IT by next summer and revise standards for clarifying
skills of IT human resources on a universal scale by the end of 2015
FY. At the same time, the government will facilitate using thestandards as the conditions of IT specialists for the recruiting andevaluating activities such as recruitment of assistants to CIO at publicorganizations.

5. Further strengthening Japan’s international competitiveness as a business hub
In order for Japan to become a nation where it is easier for companies to develop
business activities, it is of great necessity to improve industrial infrastructure bymeasures such as easing energy/environmental constraints and to strengthen thecompetitiveness.
As a first step toward the goal, by 2020, the government will drastically improvebusiness environment aiming to be ranked in the top three from the current 15th
place among developed countries in the Ease of Doing Business ranking of theWorld Bank and to be ranked in the top three from the current fourth place of the- 65 -

Provisional

Global Power City Index.
In addition, the government will strive to enact the amendment bill of the
Antimonopoly Act to abolish the trial system conducted by the Japan Fair Trade
Commission as early as possible.
(1) Realizing “National Strategic Special Zones”
The conventional special zone system such as Comprehensive Special Zones
aiming to strengthen international competitiveness in industry is based on theinitiative of the community. In order to powerfully and speedily create a businessenvironment which is an attractive investment destination for foreign corporations,the government has to make efforts based on the nation’s growth strategy,
utilizing power of the private sector, under the leadership of the Prime Minister,.
To this end, considering initiatives in regional communities, from the viewpointof national strategies, under the leadership of the Prime Minister, the government
will establish the “National Strategic Special Zones”, a powerful system toproceed with drastic regulatory reforms, etc.
The objective of the special zone is to make a breakthrough as an experimentalsite for regulatory reform. To this end, the targeted projects should have powerful
impact on the growth of national economy, and the government, municipalities
and the private sector engage in the projects as one, not conflicting with one
another. While limiting the number of the special zones to the necessary extent,
the government will implement bold regulatory/system reform by examining tax
incentives corresponding to system designs for the reform, thereby taking
necessary measures.
The government will steadily continue to proceed with the current special zone
system and such measures including “Future City” Initiatives interlock with thespecial zones. In addition, regarding Okinawa which is the nearest to the rapidly
growing Asian market, as a national strategy, utilizing the special zone system,
the government will actively proceed with promotion measures in acomprehensive manner.
○ Study at the “National Strategic Special Zones working group,” etc.
・ Under the minister in charge of Regional Revitalization, in the“National Strategic Special Zones working group”, the government will
prepare system designs, select specific projects, regulatory reform
items, and establish policies by summer this year.
・ Based on this, the government will establish the Special Zone
Promotion Headquarters consisting of the government, municipalities
and the private sectors and will promptly develop necessary- 66 -

Provisional

legislative measures in the Diet.
・ Issues to be addressed by the “National Strategic Special Zones” are,for example, “to form international cities whose environment such as
residential space, etc. is one of the most attractive in the world,” “toestablish an international base for medical services and forinnovations.” In terms of these viewpoints, the government will strive
to create the best environment for business activities that will trigger
growth by taking special measures in the special zones, actively
utilizing regulatory/system reform items applicable nationwide andimproving important infrastructure.
・ Having all these in mind, as follows are regulatory/system reform
items that are being studied by the National Strategic Special Zones
working group at present and that should be dealt preferentially:
1) Reviewing regulations on land use such as floor-area ratio/use topromote residence in cities
When forming international cities, to accelerate residential
environmental improvement of cities, not only municipalities thathave authority to decide city planning, but also the government
itself select an area to strategically take a lead in city planning, takemeasures in different sphere from the traditional one such as shiftof volume to office buildings for construction of condominium
buildings, together with the aforementioned system planning forspecial zones in a rapid manner.
2) Improving medical service for foreign people given by foreign
doctors
As for the “clinical training system” that allows only training as
medical practice of foreign doctors, the government will submit abill to review the system nationwide to add instruction/clinical study
and to extend the period as a part of an amendment bill of theMedical Service Act by the end of this year.
In addition, while ensuring the quality, the government will strive toimprove medical services for foreign people living in the special
zones.
3) Reviewing requirements to establish international schools
In order to improve educational environment for children of
so-called international schools on which the government places
importance regarding work of foreign people, the government will
strive to ease requirements for school sites/building and strongly
promote review of rules that make it difficult to set up aninternational school in Japan.
4) Reviewing issues concerning the Labor Contract Act for
researchers [reposted]- 67 -

Provisional

5) Enhancing function of airports in the Tokyo Metropolitan area andimproving access with the center of Tokyo [reposted]6) Opening up public school operation to the private sector
In order to provide diversified education at public schools,
considering opening up public school operation to the private
sector (public-build and private-operate schools by consignment to
the private sector) will be effective, the government will start study
on flexibly opening up the operation to the private sector at least in
the special zones and conclude results as soon as possible.
○ Developing a framework to promote the special zones
・ The government will establish the “Special Zone Advisory Council” ledby the Prime Minister, appoint the minister responsible for the special
zones, and promptly develop a governmental framework to proceedwith the special zone project in a top-down style.
(2) Opening up operation right of public facilities, etc., to the private sector(expanding utilization of PPP/PFI)
Opening the public sector that assumes improvement/operation of domestic
infrastructure
totheprivatesectorenables
effective/efficient
improvement/operation of infrastructure even under tight financial situations andalso creates opportunities to enter major markets and to strengthen international
competitiveness. Making use of proposals by the private sector, to drastically shift
PPP/PFI to businesses that invite private investment, the government will
implement action plans to utilize PPP/PFI, the project corresponding to 12 trillion
yen within the next decade.
○ Expanding applicable scope of the concession system
・ By shifting administration by the public sector to management by theprivate sector, the government will promote introduction of concession
system of public facilities such as airports, water and sewerage androads, a new management approach that improves service andcreates new value utilizing public facilities. Specifically, as for airports,
the government will make efforts to expand the applicable scope togovernment-owned airports such as Sendai Airport at early date in astable manner. The government will also actively introduce theconcession system and promote utilization of the system for the
toll-road project of the Local Road Public Corporation.

- 68 -

Provisional○ Utilizing various methods
・ Through the utilization of facilities that will bring profit and public realestate and cooperation with private city development, the government
will actively promote methods that realize investment by making themost of private funds and renewing the existing facilities. In particular,
the government will take measures against decrepitude ofexpressways in the capital including use of space above theexpressways keeping pace with private urban development andpromote utilization of PPP projects for integrated regeneration of cities
and expressways.
○ Establishing the Agency for the Promotion of the Private FinanceInitiative・ The government will establish the Agency for the Promotion of thePrivate Finance Initiative (Infrastructure Fund by joint initiatives
between the public and private sectors), promote introduction ofprivate funds into PFI projects that collect funds from usage charge
income making national funds as a trigger to nurture infrastructure
investment markets, reduce financial burden and create business
opportunity for the private sector.
(3) Improving infrastructure such as airports, ports and harbors
In order to facilitate movement of human talents and goods on a global scale,the government will enhance the function of airports in the Tokyo metropolitan
area and strategic ports and harbors.
○ Enhancing the function of airports in the Tokyo Metropolitan area
and improving access with the center of Tokyo・ By increasing the number of international flights at Haneda Airport by
30 thousand flights at the end of this year, that at Narita Airport to 300
thousand flights during next fiscal year as well as improving
connection between domestic airlines and international airlines at
each airport in the Tokyo Metropolitan area, the government will strive
to enhance function of airports. At the same time, the government will
make efforts to develop lines directly linked to the center of Tokyo by
utilizing the existing railways and deep underground of the center ofTokyo.
○ Strengthening logistics networks- 69 -

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・ In order to achieve logistics cost and convenience as competent asthat in the world, the government will enhance the function of ports
and harbors to respond to large ships, deal with the needs ofextended operation hours, and improve transport access to ports andharbors/airports. To this end, the government will improve three ringroads in the Tokyo Metropolitan area by raising the maintenance rateof them from the current 50% to 80% or higher in the next five years,
and improve ring roads in three major metropolitan areas.
Furthermore, regarding deepwater container terminals of strategic
ports and harbors for containers from foreign countries, thegovernment will increase the number of berth from the current threeberths to 12 berths by the end of 2016. At the same time thegovernment will achieve efficient operation of ports and harbors by theoperating companies of ports and harbors in an integrated way by theend of 2015, create demand of cargo booking and cargo from broad
areas aiming to regain overseas cargo transshipment and enhancelogistics networks.
(4) Improving competitiveness of cities
In order to attract foreign companies to place business bases of Asia in Japan,
it is important to strengthen international competitiveness of cities throughinitiatives to improve city environment and life environment, secure good publicorder, enhance disaster prevention ability by ensuring diversity of cities, renewing
old buildings, etc. To strengthen international competitiveness of large cities, thegovernment will make efforts toward drastic regulatory reform by taking the leadin utilizing the “National Strategic Special Zones,” support life function for foreign
people that is the issue to be addressed by large cities as a whole, and city sales
promotion.
○ Improving environment by utilizing the “National Strategic Special
Zone,” etc., aiming to be an international city
・ As for the “National Strategic Special Zone,” the government will
flexibly respond to regulations concerning city development including
requirements for floor-area ratio and land use depending on various
needs of offices and houses and facilitate prompt response throughadjustment among relevant parties made by Special Zone Promotion
Headquarters.
・ The government will improve environment of certain areas that are
involved in international business activities including improvement of- 70 -

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medical institutions and education facilities for foreign people so thattalented people from overseas have comfortable life.
○ Improving city/living environment
・ In order to create a highly transparent/objective real estate market,
the government will improve information on various real estates,
develop system to offer the information, and establish evaluation
standards for real estate based on international standards (by the endof next year). At the same time, the government will improve living
environment by establishing standards for inspection of the existinghouses and houses that keep good quality for a long-term (within thisyear), formulating policies on building evaluation for the existinghouses (within this year), etc. to form a wide variety of high-quality
housing stock for improved housing stock from expansion of flow.
As for local cities, the government will rebuild the city structure to aggregate allcity functions such as housing, medical service, social security service, etc. in
downtown so as to maintain/improve vigor of cities in spite of the decreasing
population.
○ Realizing a compact city
・ The government will formulate the city rebuilding strategies within thisyear. At the same time, in order to realize a compact city in local cities,
the government will aggregate houses and life functions into thedowntown utilizing the private sector by combining support measuresand land use systems, intensify empty lands, establish systems topromote the use of vacant buildings, facilitate effective use of public
real estates such as former school sites, former city hall sites.
Through these initiatives, the government will advance “realistic
restructuring” led by the private sector and site location for visit-typeurban-oriented industry to promote renovation of city structures.
・ The government will encourage investment and new business by new
systems to promote liquidation of vacant stores and promote
initiatives in small-scale cities including merged cities mainly tostimulate private investment for revitalization of downtown.
(5) Vitalizing financial/capital markets
By taking in the growth of Asia, the government will vitalize stock markets andimprove asset management markets to build a No.1 financial/capital market in- 71 -

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Asia.
○ Considering measures for vitalizing financial/capital markets
・ In order to strengthen the international competitiveness of Japan’s
financial/capital markets, the government will set up a working groupconsisting of the Financial Services Agency, the Ministry of Financeand specialists from the private sector. The working group willconsider measures for vitalizing the markets including the feasibility offinancial special zones and draw an outline of the measures by theend of this year.
(6) Management of public and quasi-public funds
The government will consider ways to desirably manage public pensions andfinancial assets held by incorporated administrative agencies, etc. (public andquasi-public funds).
○ Desirable management of public and quasi-public funds
・ At meetings among intellectuals, the government will review and obtainrecommendations by autumn on cross-cutting issues pertaining to public
and quasi-public funds, such as the management of funds (promotion ofdiversified investment), matters of governance including risk management
structure, and measures to increase returns on long-term investments inshares, bearing in mind the scale and nature of each fund.
(7) Overcoming constraints of environment/energy
Aiming to overcome electric power/energy constrains after the Great East
Japan Earthquake and to reduce costs, the government will steadily implement
action plans toward the “most advanced nation in the energy field having variety
of supply systems and efficient consumer behavior” to obtain results ofimprovement. The government will develop a new basic energy plan by this year
and determine the base and direction of energy measures in the medium- andlong-term.
In addition, the government will conduct a zero-based review concerning the
25% emission reduction target of greenhouse gases prior to 19th Session of theConference of the Parties to the UNFCCC in November (COP19). Furthermore,
the government will formulate “Proactive diplomatic Strategy on Global Warming”
with the aim of contributing to the world by fully utilizing Japanese advanced
technologies and promote the full scale introduction of the Joint Crediting
Mechanism (JCM). The government will also develop the new Low Carbon- 72 -

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Technology Plan at the “Council for Science and Technology Policy” and promote
R&D.
○ Pushing through the Electricity System Reform・ In order to reduce electricity costs by promoting efficiency of electric
supply according to the “ The Policy on Electricity System Reform,”
the government will strive to pass a bill to amend the Electricity
Business Act early and steadily proceed with electricity system reform(
1) enhancing nationwide system operation, 2) promoting full retailchoice and full liberalization of power generation, 3) further securing
neutrality of the Transmission / Distribution sector through the legal
unbundling) aiming to complete the reform by 2020 at the latest.
○ Utilizing nuclear power generations whose safety is confirmed
・ The government will leave the safety of nuclear power plants to thespecialist judgment of the Nuclear Regulation Authority. When the
Nuclear Regulation Authority admits the compliance to regulatory
standards, the government will respect the judgment and will proceedwith the restart of the nuclear plant. In this case, the government will
make efforts to obtain understanding and cooperation of relevant
parties including the municipality of each nuclear facility site
○ Introducing highly efficient thermal power generation (coal/LNG)
・ The Ministry of the Environment and the Ministry of Economy, Tradeand Industry agreed with the clarification of requirements andstreamlining the procedure of environmental impact assessments for
power plants. Based on the agreement, the government will advanceintroduction of highly efficient thermal power generation (coal/LNG)
with environmental considerations, and make efforts to improve power
generation efficiency further by advancing technology development.
○ Reducing procurement costs for LNG
・ In order to reduce procurement costs for LNG, the government willcontinue to make efforts to realize import of LNG from North America,
assist Japanese companies in participating development in
Russia/Mozambique to diversify supply sources. In addition, thegovernment will strengthen cooperation among LNG consuming
countries through the “Second LNG Producer Consumer Conference”
held in this September to enhance bargaining power.
- 73 -

Provisional○ Curbing electricity price・ Taking into account future efforts toward efficiency to reduce LNG
procurement price, the government will strictly examine electricity
price.
○ Ensuring stable supply by maintaining/improving supply chains foroil/ LP gas
・ The government will strive for stable supply of oil/LPG by optimizing
and adding high value to facilities of oil industrial complexes,
strengthening risk response ability of oil/LP gas supply infrastructuresuch as refineries and SS (service stations), preventing industrial
accidents, improving mobility of stockpiles, securing stable supply ofoil/LP gas in the community, etc.
○ Full-scale Introduction of the Joint Crediting Mechanism
・ In order to start the full-scale operation of the mechanism this year,
the government will immediately prepare a roadmap for arrangementof relevant domestic systems and consultations for internationalrecognition. In addition, the government will consider necessary
support to strongly drive adoption of Japan’s advanced low carbon
technologies in developing countries and will promote thedevelopment of projects through cooperation among relevant
ministries, agencies and organizations including JICA and JBIC.

6. Innovation of small and medium-sized enterprises (SMEs)
Management resources such as 4.2 million SMEs across the nation and humantalents, goods, and communities across the region are the world-class industrial
infrastructure that supports the regeneration of Japan's manufacturing industry andserves as the origin of high-value added industries. The innovation of this industrial
infrastructure will regenerate regional economy and enhance our global competitive
level.
Therefore, the government will ensure that business startup rate exceeds businessclosure rate and business startup and closure rate rises to 10 % range on par with
the US and UK, support SMEs to expand into growth sectors, increase the number of
profit-making SMEs from 0.7 million to 1.4 million by 2020, and aim for the realizationof overseas expansion of another 10 thousand companies over the next five years.
Moreover, certified experts who support SMEs in their daily operations, their- 74 -

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concerned companies, support organizations such as professionals, SME-relatedorganizations and regional financial institutions in addition to the government andlocal governments work together to use, mobilize, and commercialize regional
resources as brands, accelerate the restructuring of SMEs, and promote initiatives in
the frontier areas in Japan and overseas. Along with that, the government will aim for“the most comprehensible” policies for SMEs on the ground from their point of views
and carry out an ongoing review of accessibility improvement of support system suchas further reduction and simplification, etc. of application forms.
(1) Using, mobilizing, and commercializing regional resources as brands
Numerous resources such as human talents, goods, and communities ineach region remain unused. Therefore, the government will expand theconventional idea of regional resources into that for various regional
management resources, build the support network for discovery andcommercialization of regional resources and further commercialize them asbrands in order to combine them organically.
○ Promoting business startups by using and mobilizing regional
resources
・ In order to promote business startups by using regional resources, thegovernment will conduct support from business start-up to
management know-how across the nation on a one-stop basis.
Moreover, it will increase responsible entities for business startups
that use regional resources such as enhancing a network ofentrepreneurs through support portal websites, conducting businesscompetition, improving functions of shopping streets and central
urban districts.
・ The government will offer comprehensive support by deploying all thepolitical resources including the review of Act on Promotion ofBusiness Activities by Small and Medium Sized Enterprises Utilizing
Resources Derived from Local Industries with respect to businessstartups which use regional resources or mobilize (combine andmerge) them.
・ In order to build world's pre-eminent industries, the government will
create new clusters centered on regional core firms and activate
regional companies after redefining promising candidate sites forindustrial clusters.
○ Diversifying fund raising (crowdfunding, etc.) [reposted]- 75 -

Provisional○ Creating premium regional brands
・ The government will enhance the consistent support from discovery tomarket development of the most promising regional resource as “apremium regional brand”
・ The government will wrap up a final draft concerning the review of the
trademark system that enables the protection of highly valuable
regional brands by expanding the scope of entities eligible forregistration of the regional collective trademarks to Societies ofCommerce and Industry and Chambers of Commerce and Industry
etc. within this fiscal year, and subsequently submit the relevant bills
to the Diet in a swift manner. By dispatching intellectual property
experts who help application process and offering financial support
concerning consultation and application, the government will
decrease the burden relevant to regional collective trademarks andpromptly establish the right by improving application know-how andpromote the use of regional collective trademarks.
・ The government will assist associations and other organizations insetting their own quality standard in compliance with high-level JIS
and building their own certification system for thorough quality control
of local goods and their quality appeal. Therefore, it will start theconsideration of implementation of JIS for high functionality andachieve the conclusion within this fiscal year. JAS will promote the useof high level standard based on the Act for Standardization andProper Labeling of Agricultural and Forestry Products to contribute to
the commercialization of local goods as brands.
○ Establishing “the Council on Regional Industrial Competitiveness”(provisional name)・ In order to reflect community-based “real voices” across the country,
the government will establish the Council on Regional Industrial
Competitiveness (provisional name) consisting of the managers ofcompanies who support communities and other members in eachregional block. The council in each regional block will specify its own
strategic industry, find undeveloped resources in its region, anddetermine the strategy and so on associated with the industrial humanresource development required in the region. It will be regularly
followed up along with the progress of development of this strategy ineach region.
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Provisional(2) Accelerating the restructuring of small and medium-sized enterprise (SMEs)
The government will drastically increase the number of business startups inthe country and ensure that business startup rate exceeds closure rate, aiming
for raising business startup and closure rate to 10% range on par with the U.S.
and U.K. Along with that, in the midst of increasingly serious situations of aging
managers and difficulty of finding successors, it will facilitate the transfer of
useful management resources by generation change of managers andbusiness succession to persons other than relatives and consequently
accelerate the restructuring of SMEs.
Moreover, it will promote community-based finance so that regional financial
institutions will actively work to fulfill their consulting functions and to provide
risk money for administrative improvement of companies which play importantroles in regional economy, support for their business revitalization and business
transformation, development of new industries, and nurture of potential
companies.
○ Consistent support from business startup to the initial stage- The government will facilitate private financing for business startups byemphasizing and enhancing the development of business projects
concerning business startups on assistance measures of enhancing
public financing and supporting business startups including extensionof grace period during the initial stage when an entrepreneur founds abusiness and is in the most severe financial difficulties so that he or she
can overcome the hardest initial stage from the business startup to thereporting of a profit.
○ Revising the personal guarantee system [reposted]○ Supporting business takeover and succession [reposted](3) Supporting small and medium-sized enterprises (SMEs) which will enter the
strategic market.
SMEs should overcome entry barriers in growth sectors and actively promote
the matching and the use of Internet for corporate linkage to enter growth sectors
such as environment/energy, health/medical care, and aerospace sectors.
○ Building professional support system for moving into growth
sectors- 77 -

Provisional・ The government will review the 22 technologies based on Act on
Enhancement of Small and Medium Sized Enterprises' Core
Manufacturing Technology to reinforce the manufacturing industry andfacilitate the direct entry of small and medium-sized enterprises(SMEs) into the growth sectors such as medical care and environment,
etc. It will promote R&D of 3D modeling system as a national projectby using our strength in materials and machine control technology, etc.
In addition, it will send in experienced persons to these industries for along time to obtain international certification.
・ It will reduce the cost and shorten the period concerning medical
device development and screening by SMEs through dispatch anddevelopment of experts to assist cooperation between SMEs andmedical institutions and support of expenses for pharmaceuticalconsultation and application.
○ Promoting the development of new sectors targeted for major
companies and various business sectors
・ The government will promote the preparation and cooperation ofmatching venues for major companies and various business sectors
by using support portal websites and exhibitions and build a human
network which plays an important role in developing new sectors bydiscovery and development of supportive human resources(4) Supporting small and medium-sized enterprises (SMEs) which expand
internationally
In order to further promote overseas expansion of SMEs, the government will
extend and deepen its assistance for their overseas expansion by enhancing
support from point to line to plane and realize overseas expansion of another ten
thousand companies for the next 5 years.
○ Enhancing and strengthening hands-on support system
・ The government will enhance and strengthen a consistent hands-on
support system for companies aiming to expand operations overseas
by using the Japan External Trade Organization (JETRO), an
incorporated administrative agency, and company veterans withinternational business experience. It will also reinforce domestic
consultation services through training consulting personnel atOrganizations Supporting Management Innovation such as financeinstitutions and proactively search for and support promising- 78 -

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companies utilizing networks between support organizations.
・ The government will promote the development of new sectors
targeted for overseas companies by transmitting information of SMEs
in multiple languages by supporting overseas websites, clearing, anddistribution as a package.
○ Developing overseas support platforms
・ At present, the government will accelerate the preparation of major
strongholds such as developed markets, emerging markets andproduction bases of overseas support platforms in preparation in 10
bases across 8 countries. It will also respond in depth to professional
service support for legal, labor, and intellectual property problems andtroubles such as business downsizing and withdrawal in theworst-case scenario. In addition, it will enhance the use ofgovernment-private sector joint missions for SMEs and fund raising
support from local financial institutions conducted by Japan FinanceCorporation.

<Important notices>
Guidelines for official support by public-private sector fund
In Industry Revitalization Plan, in case of using public-private sector fund, thegovernment shall implement this plan based on the guidelines stipulated below
from the viewpoints of preventing moral hazard of private sectors by public
sector involvement.
○ Guidelines for official support by public-private sector fund(1) New funds shall be established to the minimum extent necessary
under conditions where market economies are difficult to function
properly (Principle of Subsidiarity). The purpose of new funds shall belimited with political significance such as pump-priming effects of therealization of the government’s growth strategy, contribution toregional economic revitalization, and creation of a new industry andmarket (Principle of Externality).
(2) It is assumed that time limits to maintain funds and time-axis forindividual investments shall be set and individual investments shall begiven over to private sectors properly.
- 79 -

Provisional(3) The government shall set highly transparent standard of investments
and the investment decision of a fund will be made mainly by persons
who don’t belong to administrative agencies on the basis of technicaland objective point of view.
The system of screening, monitoring and warning by independentand professional third party organizations will be introduced to block
political and administrative interventions of individual investments.
(4) Because each fund has different portfolio according to its policy
purpose, risk, income and expenditure management as a whole ofinvestment destinations shall be conducted.
(5) Overall performance evaluations of individual funds shall be madecomprehensively in a medium and long-term perspective based on
the purposes of establishment and management of funds, paying
attention to political significance such as effects on Japanese
economy and employment through investment destinations.

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2. Strategic Market Creation Plan

- 81 -

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2. Strategic Market Creation Plan
Social issues such as energy constrain, health and medical care will certainly formhuge global markets in the future. Japan is a pioneer in these issues and has thepotential of obtaining a market with its high level of technology. However, the reasons
below have hampered market formation.
- Bounded by regulations and institutions as well as conventions.
- Inadequate infrastructures for developing businesses.
The backwardness in competing sectors in the world's most advanced R&D isdifficult to make up for.
Therefore, the government has chosen the four themes below among social
challenges the world and our country face as themes “which Japan has aninternational advantage in,” “which can be expected to grow in global markets,” and“which can include certain strategic fields.” The government will regard “the year
2020” after the period of intensive reform and “the year 2030” from the standpoint of
medium-term political development as time axes and prepare “the roadmap” tocontinuously deploy policy resources from R&D to deregulation with priority.
Theme 1:
Theme 2:
Theme 3:
Theme 4:

Extending the nation’s “healthy life expectancy”
Realizing clean and economical energy demand and supply
Building safe, convenient, and economical next-generation
infrastructures
Building regional communities that use their unique local resources toappeal to the world- 82 -

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Theme 1: Extending the nation’s “healthy life expectancy.”
Envisioned society: Establishing “Appropriate care cycle society”:
From preventive care, treatment to early back to home care.
Strategic area:

Health promotion and preventive care services, living
assistance services, pharmaceuticals and medical devices,
housing for the elderly, etc.

Market size:(Domestic)
26 trillion yen (2020), 37 trillion yen (2030)
Cf. 16 trillion yen (present)(Overseas)
311 trillion yen (2020), 525 trillion yen (2030)
Cf. 163 trillion yen

Size of employment: 1.6 million people (2020), 2.23 million people (2030)
Cf. 0.73 million people(1) Ideal situation in 2030
Our healthy life expectancy is the longest in the world. Our medical care andnursing care system offers high quality services at the relatively low expense,
maintaining free access to the system under the universal health-care system andcontributes to the longevity.
However, for the reasons below, public demand for the care is rapidly increasing:- Increasing number of the elderly aged 75 years or older with characteristics ofhigh consultation rate for chronic diseases, high disease rate, and high nursing
care utilization rate.
- Increasing the elderly who live alone and cannot expect support within the family- Upgrading the service in medical care and nursing care
In 2030, the government should minimize the increase in the nation’s demand for
medical care and nursing care by improving preventive care services and should aim
for “a society which extends the nation’s healthy life expectancy” by providing higher
quality medical care and nursing care.
Therefore, it will aim to realize the following three envisioned society in light with“health and medical care strategy” (mutual agreement among concerned ministers
on June 14 this year).
1) The society where people are able to live a healthy life and get old byenhancing effective preventive care services and health management
2) The society which can provide the world's most advanced necessary medical- 83 -

Provisionalcare by activating medicine-related industries3) The society where people who are out of work due to illness or injury can return
to work as quickly as possible by access to better medical care and nursingcare
As a result, the government will aim for “Appropriate care cycle society” where
people are able to have necessary preventive care service from a variety of options
and to get the world’s most advanced medical care and rehabilitation in case ofnecessity while people make an effort for healthy life and prevent disease.
(2) Individual envisioned societies and efforts toward realization[1] The society where people are able to live a healthy life and get old by enhancing
effective preventive care services and health management.
I) Envisioned society and present problems
The government will aim for a society where individuals and companies takeinitiatives on their own health management and preventive care with highconsciousness and people can easily get access to necessary services (i.e.
preventive care and medical care services) everywhere.
Meanwhile, at present, there is poor motivation for preventive care due to thefollowing factors:i) Individuals tend to have little incentive to continuously prevent disease andmanage their health such as diet control, exercise, etc. when they arehealthy.
ii) Insurers do not take adequate measures to motivate individuals, recognizing
the necessity of health management and preventive care.
Maintaining employees’ health contributes to the company's bottom line
through effective use of human resources and the reduction of insurance cost.
However, it is hard to say that managers recognize the issue.
iii) The services for health management and preventive care have not grown as
an industry or market due to these factors.
Especially since institutional ambiguity which should provide services
between the private and the public sectors, makes service providers hesitate
to enter into the market and consumers have difficulty in receiving services atease.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions- 84 -

Provisional

In order to overcome the current situation, the government will highly motivate
individuals, insurers, and companies and create an industry to extend healthy life
expectancy. These initiatives will lead to the creation of a system where services
are easily accessed everywhere and realize “self-medication” and other initiatives
to promote self-management of health.
That is to say, the government will create and develop markets and industries
as strategic areas which play an important role in health promotion andpreventive care (ex. services for guidance about exercise and diet based on
instructions from medical institutions, services for conducting simple tests, etc.)
and living assistance services (ex. creating a system to provide home delivered
meal services in cooperation with medical care, etc.) by expanding potential
markets with high consciousness and motivation, and adopting most effective andefficient political measures including reform and clarification of regulations.
○ Developing an industry to extend healthy life expectancy
・ The government will develop a comprehensive political package toestablish an appropriate care cycle and to foster a new industry
independent of social health insurance to extend healthy life
expectancy. It will take initiatives to create a market and compensate
for risk through removing “gray zones” in regard to relevant
regulations (its objective is to clarify whether the provided service islegitimate), a system for quality guarantee and information sharing of
new products and services, and the use of lease arrangements. It will
advance the consideration and achieve a conclusion by August thisyear and take necessary measures such as legislative ones.
・ Moreover, the government will establish “Next-Generation HealthCare Industry Council (provisional name)” along with consolidation of
the legal system in order to immediately develop a system forproviding individual consultations to make sure that projects eachcompany will start to implement are legitimate without waiting for legal
measures and in order to develop a framework to maintain the quality
for private services.
・ The government will set a standard for amount of exercise and healthy
diet based on the evidence of disease prevention effects.
○ Developing a new system concerning the promotion of preventive
care and health management
・ The government will amend guidelines (announced) of The Minister of
Health, Labour and Welfare based on the Health Insurance Law, etc.
- 85 -

Provisionalby the end of this fiscal year, requiring all the health insurance
societies to analyze data such as health insurance claims and so on,
to develop, announce, implement and evaluate a project program
called “Data Health Plan (provisional name)” to maintain and improvehealth conditions of the subscribers based on the analysis. In addition,
it will promote similar initiatives to be taken by national healthinsurances.
・ With regard to good practice cases such as a project to prevent
aggravation of diabetic nephropathy in order to avoid artificial dialysis,
aiming to widely promote them by the end of next fiscal year, thegovernment will advance the consideration of such projects, conclude
the results by the end of August, and reflect them in the budget
request.
・ As per the effects of specified health check-ups and guidance, thegovernment will compare health conditions and improvement oflifestyles between those who have received the specified healthguidance and those who have not, as well as analyzing health carecost for such guidance. Based on the comparison and analysis, it willobtain certain results from verification of the effects for two years until
the end of the next fiscal year, announce the results and promote theinitiatives such as healthcare projects conducted by insurers.
・ As to the adding/subtracting system of the supportive contribution to
medical insurance for the elderly aged 75 and over, the government
will consider a better system for the future based on theimplementation status from this fiscal year and opinions of concerned
parties as well as verification of the effects of healthcare guidance.
・ The government will promote good practices for health improvement
among citizens and employees by municipalities and companies. In
addition, it will attempt to mature and enhance individual andcorporate “health awareness” and “motivation” by further promoting“Smart Life Project” based mainly on broad corporate linkage forhealth promotion.
・ The government will promote better contribution of local pharmacies
and pharmacists to encouraging self-medication of citizens by making
pharmacies the community-based hub for providing information,
giving advice on proper use of non-prescription drugs, etc. andoffering consultation and information service concerning health.
○ Using health enhancement function of food- 86 -

Provisional

・ Concerning processed food such as so-called “health food,” etc. andagricultural, forestry and marine products, the government willcommence studies within this fiscal year on new measures to describe
functionalities based on scientific grounds under corporate
responsibility and implement the measures after obtaining results
within the next fiscal year. It will give consideration with a feasible
management system including security in mind, referring to the dietary
supplement labeling system in the U.S. where not the public but
companies and other organizations can evaluate scientific grounds bythemselves and describe the ground of evaluation and functionality.
・ The government will figure out and evaluate health enhancement
function of food and develop and promote ingredients and foodproducts with health enhancement function.
Furthermore, the government will support expanding and developing
health-related market and industry by establishing the world's most advanced
research and analysis platforms such as health and disease database.
○ Promoting digitization of medical care and nursing care information
・ The government will promote the use of data such as health insurance
claims owned by the public to improve medical quality and reinforce
research platforms. Even private companies can provide data such as
health insurance claims when researches they are conducting are
subsidized by the government. Therefore, it will make sure the scopeof applicants offering data is to be thoroughly informed. In addition, it
will consider the facilitation of data provision and the scope of
applicants to promote timely utilization by a wide range of agents.
・ The government will expand throughout the country good practices
where insurers analyze data such as health insurance claims by using
ICT and take the initiative in promoting good health among
subscribers and carrying out moderation in health care cost.
・ The government will disseminate community-based health care andnursing care coalition including home care widely across the country
with ICT by sharing medical records and nursing care information ineach community.
・ With regard to adverse drug reaction data system, the government will
acquire enough useful information by improving hub hospitals tocollect data and promoting regional partnership, so that suchinformation can be made best use of for drug effectiveness and safety- 87 -

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evaluation as well as extension of healthy life expectancy.
・ In order to improve medical quality, academia will promote initiatives
to accumulate, analyze, and use daily medical acts, treatment
outcomes and outcome data (effects of medical treatment) byintegration with each of medical fields across the country.
○ Promoting the use of medical information and introducing
identification number system
・ The government will promote and expand community-based medical
information linkage networks and create optimistic environment by
taking necessary measures to utilize and protect medical information.
It will also promote improvement of an environment in which eachindividual can utilize his or her own medical and health data andconsider proper usage of information to lead to appropriate
encouragement for health industry, as well as introducing an
identification number system for medical information after obtaining
national-understandings. As the first step toward such objectives, itwill facilitate an environment such as standardization of data andsystem specifications, and consideration of administration rules
including preparation of guidelines, etc.
○ Internet sales of non-prescription drugs
・ The government will approve the internet sales of non-prescription
drugs under the appropriate rules while securing the safety of
consumers.
・ However, concerning “products that have newly become available as
non-prescription drugs” and “products designated as powerful drugs”,
experts in medicine and pharmacy fields conduct required reviews of asystem to promote deliberate sale and use of these items equivalent
to those for prescription drugs in terms of ingredients, dose regimen,
dosage, and onset situations of adverse drug reactions, since these
items differ from other non-prescription drugs in nature. After reachinga conclusion by autumn this year, the necessary measures will betaken.
・ When making the examination, the government will give rational andobjective consideration regardless of sale over the Internet orface-to-face selling.
○ Granting health care points- 88 -

Provisional・ The government will implement a large-scale demonstration toestablish models for promoting health (preventive care) by using aframework for comprehensive special zones and utilizing ICT system
and medical check-up data in national health insurance by local
governments and corporate health insurance society from next fiscal
year. Among these initiatives, it will promote large-scaledemonstration experiments in the future by using health care points(points granted for initiatives and achievements concerning healthpromotion such as exercise, etc. and used in facilities for health andnursing care services and regional malls etc. ).
[2] The society which can provide the world's most advanced necessary medicalcare by activating medicine-related industriesI) Envisioned society and present problems
The government will aim for a society which creates a virtuous cycle that further
develops Japan’s innovative medical technology by leading the world indeveloping pharmaceuticals, medical devices, and regenerative medical products
which are the core of Japan’s outstanding innovative medical technology required
to conquer cancer, incurable diseases, rare diseases, infectious diseases,
dementia, etc. and introducing them in the wake of a quick approval process, andexporting them to the world.
However, in reality, as of 2011 the total amount of import excess forpharmaceuticals and medical devices is about 2 trillion yen. As for approval
status for regenerative medical products in December of 2012, nine items wereapproved by the U.S., 14 items by South Korea, and only 2 items by Japan.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
In order to overcome the current situation, the government will create theworld's most advanced innovative products (i.e. pharmaceuticals, medical
devices, regenerative medical products) which can obtain an expanding market in
the world by promoting practical application, and using manufacturing technology
which Japan has an advantage in. Thus, it will establish control tower functions tooverlook research for triumph over disease as national challenges.
○ Establishing control tower functions (Japanese version of NIH) in
medical R&D
・ The government will establish control tower functions (Japanese version- 89 -

Provisionalof NIH) in medical R&D to accelerate practical application of innovative
medical technologies. It will take specific measures as follows:- The government will establish the Promotion Headquarters
consisting of the Prime Minister, the Ministers in charge, andrelated ministers in the Cabinet as control tower headquarters.
The political leadership will promote the initiatives below:(1) Developing comprehensive strategy concerning medical
R&D and deciding focused research areas and theirobjectives,(2) Securing a budget to fulfill the control tower function andimplementing strategic and focused budget allocation by
centralizing medical R&D budget (such as adjusting cost,etc.) appropriated by each ministry required for the
implementation of the strategy- The government will establish an independent administrative
institution in charge of practical tasks for integrated research
management. It will also manage researches for applicationfrom a basic stage to a more advanced stage that the nation
should conduct strategically including selecting individual
research themes, monitoring progress of research, ex-post
evaluation, etc. based on comprehensive strategy. Therefore, itwill establish an independent administrative institution served
as a core function on a practical level, using program directors,
program officers, etc.
- It will build a system which ensures implementation ofinternational standard high level clinical research and trials toapply research to clinical practice.
It will take necessary measures to ensure implementation ofinternational standard high-level clinical research and trials thatsatisfy demand level of companies at clinical trials core
hospitals and early-stage and exploratory clinical trial centers.
In order to have a proper grasp of implementation status ofclinical research and trials (target diseases, content of
implementation, progress status, etc.), it will build a database tooverlook these situations exhaustively, paying careful attention
to protection of intellectual property, etc. It will also enhanceclinical research and trials by actively taking advantage ofprivate funds.
・ Based on these measures, the government will work on detailed- 90 -

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institutional design including establishing the Promotion
Headquarters by the end of August this year, etc. By reflecting
the result to the budget request, etc. and submitting thenecessary bills to the next ordinary diet session, it will aim toestablish a new independent administrative institution.
(Notice)

An independent administrative institution shall be established based on Scrap
and Build Principle and the public sector shall not be bloated.

Furthermore, it will promote the development of the system to apply research topractical use such as encouraging the system for speed-up of assessment
procedures and quality enhancement to lead the world in practical application of
innovative products and win their world's first approval. In addition, it will
drastically improve international competitiveness of medicine-related industries.
Therefore, it will intensively provide support for regulatory and institutional reform,
R&D, and overseas deployment.
○ Significantly broadening the scope of advanced healthcare services
・ In order to enable the combination of a range of both services coveredby health insurance as well as safe and advanced healthcare services
not covered by insurance, the government will create a new dedicatedsystem of assessment by external institutions, etc. By promoting the“system for accelerated assessments of advanced medical services(provisional name)” (Advanced Medical Highway Initiative) designed
to accelerate and streamline the assessments, it will significantly
broaden the scope of advanced healthcare services. Therefore, it will
start with anticancer drugs aiming for autumn this year.
○ Regulatory and institutional reform to accelerate the development ofpharmaceuticals and medical devices and regenerative medical
research・ The government will aim for an early passage of a bill to amend
Pharmaceutical Affairs Act (expansion of certification of medical
devices by private third-party organizations, creation of early approvalsystem with conditions and a limited term of regenerative medical
products, etc.) and a bill to ensure safety of regenerative medical
products, etc. (submission of plan for providing regenerative medicine,etc., creation of a system to enable medical institutions to consign cell
culture processing to companies).
・ The government will promote personnel exchange among reviewing- 91 -

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authority, Pharmaceuticals and Medical Devices Agency (PMDA),
National Institute of Health Science, and universities and establish thedevelopment and evaluation method of innovative products including
regenerative medical products and medical devices by forming
various guidelines.
・ The government will support R&D for new drug development bybuilding a network to support drug discovery of strategic office locatedat National Institute of Biomedical Innovation served as headquartersfunction in collaboration with RIKEN, the National Institute ofAdvanced Industrial Science and Technology (AIST), etc. ahead of
the creation of the establishment of “Japanese version of NIH” toapply fundamental study results produced by universities to practicaluse as innovative medical products
・ The government will develop a new standard for quality control, etc. in
culture processing and production of cells, etc. used for regenerative
medicine under industry-government-academia collaboration, andcreate an environment to promote the practical application ofregenerative medicine by improving the system to store administeredhuman stem cells, etc. for a long time.
・The government will promote development and practical application of
medical devices and improve its support system by promoting theestablishment of health and medical strategic cluster by collaboration
among industry-government-academia and medical institutions aheadof establishment of “Japanese version of NIH” to solve needs andchallenges in medical front by medicine-engineering collaboration
taking advantage of high-level manufacturing technologies of small
and medium-sized enterprises (SMEs), etc.
・ The government will promptly lead research using human stem cells
to high-quality clinical research and trials along with the use of
strategic consultation on pharmaceutical affairs by building theconsistent support system from R&D to practical application based on“Highway Initiative for Realization of Regenerative Medicine,” etc.
・ The government will take necessary measures as needed as well as
placing Clinical Trials Core Hospitals, etc. as core medical institutionsin the Medical Care Act in a manner fully consistent with consideration
toward the creation of “Japanese version of NIH.” Moreover, it will also
improve the implementation system for advanced and professional
clinical research and trials by streamlining National Hospital
Organization Central Review Board and Central Ethical Review Board- 92 -

Provisionalwith advanced specialists and an adequate system and establishing
ARO (an organization to implement and support clinical research andtrials including multicenter study).
・ The government will take initiatives from fiscal 2008 until fiscal 2012
involved by “Council for Science and Technology Policy,” andenhance pharmaceutical consultation conducted by PMDA based on
the achievements of Special Zone for State-of-the-art Medical
Treatment (“Super Special Zone”) aiming for pharmaceuticalconsultation from the early stage making use of company veteransand flexible management of research funds. Along with that, thegovernment will build a system to promote practical application andcommercialization of R&D by regulatory reform (post “Super Special
Zone” (provisional name)).
・ The government will enhance post-marketing information collection
system including the development of the system to confirm safety on
a long-term basis in collaboration with concerned academic societies
to provide useful medical devices and regenerative medical products
for the public quickly and safely.
・ The government will advance consideration to reflect clinically useful
innovative innovation more properly in the evaluation of new medical
materials of pharmaceutical, medical devices and their combinations
and review it in the medical fee revision in the next fiscal year to draw
a conclusion.

○Promoting innovative research and development
・ While promoting R&D for innovative pharmaceuticals and medical
devices and state-of-the-art medical studies such as regenerative
medicine, the government will focus on reinforcing platforms throughcultivating human resources, supporting studies that will contribute toestablishing evaluation methods for safety and efficacy of innovative
pharmaceuticals, medical devices and products of regenerative
medicine, upgrading medical and drug discovery processes by using
supercomputer simulation, encouraging pharmaceutical companies
and others to use the upgraded processes and so forth.
・ While promoting practical use of regenerative medicine, effective
development of biopharmaceuticals and individualized medicine, thegovernment will thoroughly support R&D and demonstration ofstate-of-the-art medical technologies in the consecutive processes- 93 -

Provisionalfrom clinical trials to approval by 2020. The subjected medical
technologies include noninvasive early detection approaches fordiseases associated with adult lifestyle habits, minimally invasive
early detection and treatment devices for cancers, cerebrovasculardiseases, cardiac diseases and so forth, small surgical assistantrobots that can put less stress on patients, regeneration of physicalfunctionality such as neurorehabilitation (improvement and recovery
of cranial nerve function).
・ The government will continue to focus on supporting medicine studies
such as the iPS project with a view to put the outputs into practicaluse.
○ Strengthening the Pharmaceuticals and Medical Devices Agency(PMDA)・ In order to lead the world to put innovative pharmaceuticals, medical
devices and products of regenerative medicine into practical use, thegovernment will try to further accelerate the assessment process andimprove quality, with attention to securing post-marketing productquality as well as safety measures. In particular, the government will
aim to completely eliminate the assessment lag (*) for
pharmaceuticals and medical devices by 2020, at the same time, thegovernment will strengthen the necessary system for the assessment
process with respect to quality and so on.
* There are roughly two types of lags; assessment lag which is caused by thedifference between assessment period (from filing application to obtainapproval) in the United States and Japan and development lag which is causedby the difference in time which pharmaceutical companies file applications to
the review authority in the United States and Japan.

・ In order to start clear roadmap consultation from early phase ofdevelopment, the government will strengthen pharmaceutical strategy
consulting sessions.
・ At the same time, to cope with the PMDA-WEST scheme, thegovernment will set up a function which handles strategy consulting
sessions in Kansai area in advance by autumn of this year followed byprompt establishment of an organization which will implement field
investigation for manufacturing practice and quality control ofmanufacturing facilities.
○ Building a national database for patients with intractable diseases,- 94 -

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etc.
・ The government will build a national database for patients withintractable diseases that have no cure and the number of patients are
only few, and for patients with specific chronic disease of children, andpromote studies in development of therapies with a view to putting
them into practical use.
○ Global outreach of medical market
・ By making maximum use of Medical Excellence JAPAN (MEJ), thegovernment aims to promote global deployment of Japanese medical
technologies and services through the close public-private
cooperation in the global markets. Aiming at capturing a 5 trillion yen
market share by 2030, around 10 Japanese medical centers will beestablished by 2020 focusing on emerging countries. In this process,alliance with Strategy on Global Health Diplomacy and utilization of
ODA and policy finance will be also planned to realize continued
business deployment hand in hand with industry which will genuinely
contribute to medical progress in the partner countries.
・ To achieve the goal, along with the approaches described above, withthe objective of disseminating Japanese high quality medical services,
the government will steadily promote measures including (1)promoting export, etc. of medical devices, pharmaceuticals andinfrastructure suited to the actual local conditions of the partnercountries and (2) creating and developing secure environment inwhich foreign people can receive medical services.
・ To clarify the availability of investment to local corporations by medical
corporations which satisfy certain requirements such as having
healthy financial conditions.
・ Making use of excellent R&D capabilities of Japanese pharmaceuticalindustry, pharmaceuticals R&D and supply support for developing
countries will be promoted through public-private cooperation.
[3] The society where people who are out of work due to illness or injury can return towork as quickly as possible by access to better medical care and nursing careI) Envisioned society and present problems
The government will address the creation of a care cycle in which people canuse necessary medical and nursing care services smoothly even they are athome and by measures such as physiotherapy, early rehabilitation that enables- 95 -

Provisional

early return from hospitals to society will be realized. In particular, with thegrowing population of the elderly, potential demands for such rehabilitation
support and in-home care support are expected to increase further.
However, currently, there are the following problems,i) There are no sufficient arrangements for environment in which, the elderly,
particularly single people, can live while receiving necessary medical andnursing care services without anxiety.
ii) Although there are potential needs, current care support equipment has notbeen used widely due to reasons such as high prices or lack ofuser-friendliness as the size is too large to handle.
Thus, the needs of the society have not been met.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
In addition to creating markets and industries for promotion of health,preventive and lifestyle-support services (as stated already), the government will
aim to reinforce systems for providing medical and nursing care services, develop
a system for providing housing for the elderly, facilitate access to quality medical
and physiotherapy services and activate care robot industry so that the elderly,
disabled persons and others can have secured lives in their community.
○ Fostering industry for extending of healthy life expectancy[Reposted]○ Promoting digitization of medical and nursing care information[Reposted]○ Advancing medical and nursing care services
・ In order to stably provide high quality nursing care services, etc. thegovernment will promote publication of financial statements of social
welfare corporations so that transparency will be enhanced, at thesame time, create a system to advance operation of suchcorporations by measures such as promoting expansion of
corporations, disseminating and deploying medical information
network for sharing regional medical and nursing care information andexecuting “visualization” of medical and nursing care related
information.
- 96 -

Provisional○ Reinforcing the systems for providing lifestyle-support services andhousing・ In order to activate industries related to lifestyle-support for the elderly
and realize a society in which people can continue to live in familiar
community, based on the concept of self-help and mutual-help, thegovernment will enhance diverse lifestyle-support services provided
by the elderly themselves, NPO, volunteer organizations, social
welfare corporations, private companies and so on.
・ To help low- and middle-income elderly people lead a secure life intheir community, the government will try to secure new housing
through effective use of empty houses, empty lots of abolishedschools, etc.
○ Building community where people have secure life and live and workwithin walking distances
・ In order to realize “Smart Wellness Housing and City” which is a goalof planning secure, healthy, energy-saving and barrier-freecommunity that allows people to live and work within walking
distances and create next-generation housing and community
planning industries, the government will address the following
measures.
1) To make use of private funds, aiming at utilizing Health Care REIT,
develop, disseminate, educate, etc. guidelines for acquisition andoperation of housing, etc. for the elderly, etc. (within next fiscal year)2) While consolidating housing and bases for living for the elderly andpromoting a watching-over system, etc. using ICT, in order to makeuse of public and private stocks, the government will take measures
such as developing guidelines for appraisal of buildings for existinghouses (within the present fiscal year) and evaluation standards forexisting houses and performance of renovation (within present
fiscal year), so that improvement of housing values, strengthening
cooperation among operators and promotion of smooth relocation,etc. will be supported
3) To realize a compact city and increase transportation opportunities,
based on role sharing and agreement of parties concerned, thegovernment will create a system to enhance public transportation(reach conclusion within the present fiscal year) and implement
measures to supplement public transportation to suit aging society○ Creating comprehensive regional care system to cope with aging inurban areas- 97 -

Provisional

・ To cope with rapid aging in urban areas, the government will invite
experts and concerned parties of local governments to discussproblems and formulate measures around autumn this year as to how
to secure provision of services such as housing, lifestyle-support, andnursing care (issues relating to utilization of private companies andmutual help and developing in-home and in-hospital care services) as
well as how to accept urban senior citizens in rural areas.
○ Five-year plan for developing nursing care robots
・ In preparation for rapid expansion of nursing care robots, “five-yearplan for developing nursing care robots” will be implemented in thisfiscal year. This plan includes promotion of a competition styledevelopment of low cost and convenient nursing care robots fortransfer assistance, watching over support, etc.
・ Prior to initiating R&D, in order to ensure that developed robots can beused practically, safety standards will be created followed byestablishing a certification system based on the standards within the
coming year.
・ Matching seeds with the needs, etc. will be conducted to further
accelerate development by companies so that devices based on robot
technologies will be utilized in self-sustained life and lifestyle-support
for disabled persons.

- 98 -

Provisional

Theme 2: Realizing clean and economical energy demand and supply
Envisioned society: Building a society with clean and economical energy by utilizing
diversification, bidirectionality and networking.
Strategic area:

Renewable energy, low cost and highly efficient thermal power,
storage battery, next-generation device, parts and materials,
energy management system, next-generation automobiles, fuelcell, products and services of energy-saving technology suchas energy-saving appliances, energy-saving housing andbuildings

Market size:(Domestic)
10 trillion yen (2020), 11 trillion yen (2030)
Cf. 4 trillion yen (present)(Overseas)
108 trillion yen (2020), 160 trillion yen (2030)
Cf. 40 trillion yen

Size of employment: 1.68 million people (2020), 2.10 million people (2030)
Cf. 0.55 million people(1) Ideal situation in 2030
While the energy situation is changing due to increasing demands in emerging
countries including Asian region, to changing supply structure after the Shale Gas
Revolution, and to increasing environmental load in the world and in various regions,the government will pursue to realize a society in which people can feel easy to use
necessary volume of clean inexpensive energy whenever needed. Also by
overcoming the restriction on time and place, eliminating waste of energy in supply
and demand and thoroughly utilizing all the energy, the government aims to reduce
environmental load and realize optimal energy use in Japan as a whole.
The goal is to become the most advanced country in terms of energy that realizes
the following three envisioned society.
1) A society where clean and economical energy is supplied
2) A society where efficient distribution of energy is realized through competition
3) A society where energy is consumed wisely
To achieve this goal, in the process of structural reform of energy which will be
addressed from now on, the government aims to steadily grow the buds of newtechnologies and businesses to make them flourish so as to ensure that fruits will be
produced and lead to creating environment and energy industries that support the- 99 -

Provisional

growth, at the same time, by utilizing diversification, bidirectionality and networking,the government aims to build a society with clean and inexpensive energy.
In addition, in order to actively contribute to solving global environmental problems
which are under serious circumstances, through deploying Japan’s excellent
environmental and energy technologies, the government aims to acquire rapidly
growing environment and energy markets in all over the world including emerging
countries.
(2) Individual envisioned societies and efforts toward realization[1] A society where clean and economical energy is suppliedI) Envisioned society and present problems
The government aims to create an “environment where energy is closer topeople and easy to use” so that citizens and companies can, as usual, feel easy
to use necessary volume of clean inexpensive energy whenever needed eventhough there are unexpected changes of the energy situation such as supply
disruption of energy sources and wild ups and downs of prices.
On the other hand, since the Great East Japan Earthquake, fuel cost of thermal
power generation has drastically increased due to increased use of old thermal
plants. Also, by introduction of feed-in tariff system, use of renewable energy has
been increasing, but the usage level is still low. As for new energy that supports
future such as methane hydrate, there are obstacles to overcome; therefore,
considerable time is necessary to put such energy into practical use.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
In order to make a breakthrough in these situations, the government will
promote thorough use of renewable energy sources including land and offshore
wind power, solar power, small-scale hydraulic power, geothermal power,
biomass and other renewable energy sources. The first step is to operate thefeed-in tariff system in steady and stable manner, then, by thoroughimplementation of regulatory and institutional reform including streamlining theprocedure of environmental impact assessments and streamlining safety
regulations, arrangement of an environment by supporting expansion oftransmission network and implementation of demonstration experiments,
investment from the private sector will be encouraged. In addition, thegovernment aims to further strengthen fields in which Japan has advantages so- 100 -

Provisionalthat investment for renewable energy will become strength of Japanese economy,
not cost.

○ Regulatory and institutional reform, etc. to introduce renewableenergy・ While promoting regulatory and institutional reform including
streamlining the procedure of environmental impact assessments(usually procedures take three to four years, hence, reduce the periodby half) and rationalization of safety regulation, the government
expands introduction of wind power generation by urgent introductionof large grid storage batteries, creating an condition to reinforce
Hokkaido–Honshu Electric Power Interconnection Facility, supporting
expansion of transmission network and conducting demonstration
experiments, introduction of wind power generation systems will be
expanded.
・ The government will increase investment to geothermal generation.
The government will promote regulatory and institutional reform
including streamlining the procedure of environmental impact
assessments (usually procedures take three to four years hence,
reduce the period by half) and streamlining safety regulations topromote small geothermal generation using existing hot spring wells,
and promote understanding of local people.
・ The government will promote renewable energy projects at local level
while mobilizing private financial resource.
○ Promoting offshore floating wind power generation
・ The government aims to overcome technical challenges of offshore
floating wind power generation, establish evaluation methods forsafety, reliability and economic aspect and environmental assessment
method through demonstration projects by 2015. At the same time,
the government will achieve commercialization by around 2018 while
promoting establishment of international standards.
In addition, the government promotes thorough utilization of highly efficient
thermal power generation to reduce cost for energy. Tender will be introduced for
expansion, installation and replacement of thermal power sources in principle sothat efficiency as well as transparency will be increased. Also the government
will clarify requirements and streamline the procedure of environmental impact- 101 -

Provisional

assessments to provide an environment where private companies will be able to
make smooth investment for highly efficient thermal power (coal/LNG). At thesame time, the government aims to accelerate development of advanced
technologies, introduce thermal power generation of the highest efficiency levelin the world and deploy them positively to overseas.

○ Clarification of requirements and streamlining the procedure ofenvironmental impact assessments for thermal power generation
using coals, etc.
・ In promoting new approach for environmental impact assessments,
the government will encourage developing a framework for the entire
electricity industry to manage CO2 emissions in a form consistent withthe greenhouse gas emissions reduction targets that will be
developed in the future. The review will be conducted adequately fromviewpoints such as whether or not the proponent company
participates in the framework and tackles to reduce emissions, andwhether or not the company adopts technologies which are not lower
than state-of-the-art technologies already operated as a commercial
plant considering a possibility of adopting leading-edge
power-generating technology under the assessment process basedon the schedule up to completion of construction.
・ The environmental impact assessment procedure for replacement ofthermal power generation usually takes about three years. The
government will shorten this term to a little more than one year atearliest by the effort such as of conducting it simultaneously with thelocal government. The government will also tackle to shorten the termin the construction of new thermal power generation.
○ Supporting technological development of thermal power・ The government aims to achieve practical use of advanced
ultra-supercritical (A-USC) thermal power generation in 2020s(generating efficiency: around 39% at present to improve to around46%).
・ The government aims to achieve practical use of integrated coalgasification combined cycle (IGCC) power generation systems of1500 °C class in 2020s (generating efficiency: around 39% at present
to improve to around 46%).
・ The government aims to establish technology of integrated coal
- 102 -

Provisional

gasification fuel cell combined cycle (IGFC) by 2025 and achievepractical use in 2030s (generating efficiency: around 39% at present
to improve to around 55%)
・ For LNG thermal power generation, the government aims to achievepractical use of gas turbine of 1700 °C class by around 2020
(generating efficiency: around 52% at present to improve to around57%).
In addition, the government will promote energy technologies that support
future.
○ Developing of maritime resources including methane hydrate forRealization of commercialization etc.
・ The government will support the development of methane hydrate thatis expected to exist in considerable volume in the surrounding sea sothat it can be used as a future energy source. The government will
accelerate the development of technologies with an eye oncommercialization by around fiscal year 2018. In doing so, while
keeping a close eye on international situation, the government will
promote technical development so that commercialization projects
under the leadership of private companies will be launched during2023 to 2027. Also through public-private partnerships, exploration,
development of production technologies and so on will be promoted
for other marine resources such as sea-floor hydrothermal deposits
which contain rare metal, rare earth, etc. essential for renewableenergy and next-generation automobiles. In addition, recycling ofresources is promoted not only marine resources, but also resources
such as rare metals of, so-called, “urban mines.”[2] A society where efficient distribution of energy is realized through competition
I) Envisioned society and present problems
The government aims to create an environment where, like mobile phones,
users can choose an energy provider freely and select a plan meeting their needsfrom a wide variety. Also through nationwide system operation, disseminating
devices, parts and materials that thoroughly eliminate waste, as well as
disseminating storage batteries, efficient energy distribution without limitations ontime and place will be achieved to realize a society in which optimal energy use
will be possible for Japan as a whole.
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Provisional

On the other hand, as it became clear at the time the Great East Japan
Earthquake, due to reasons such as lack of nationwide supply-demand
adjustment system, frequency conversion facilities (FC) between East and Westand restrictions on the capacities of regional link lines, currently, there is a limit on
nationwide utilization of supply capacity. Also, under current situation, there areno sufficient options such as a variety of rate plans, therefore, users cannot use
or save energy to suit their lifestyle, and even if users are not happy with thecurrent electricity company, there are no alternatives.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
The government will promote the Electricity System Reform that is the first
drastic reform in 60 years. The three main points for the reform are enhancing
nationwide system operation, full retail choice and full liberalization of power
generation and securing neutrality of the transmission and distribution sectors.
This will encourage entry of diverse players including consumers andintegration and cooperation of various industries (gas, electricity, communications,etc.) so that the electricity industry as well as the electricity market will be
activated, at the same time, diverse, flexible and stable building of electricity
system will be accelerated.
In the process of this reform, it is expected that new industries and employment
will be generated in the relevant fields and the electricity market which will beworth 16 trillion yen, at the same time, efficient management system at household,etc. and smart community will be disseminated and meticulous services meetingcustomer’s needs will be created in diverse manner.
○ Implementation of Electricity System Reform・ First stage:
Establishment of the Organization for Nationwide
Coordination of Transmission Operators
Implement by around 2015 (after two years), aiming to submit thebill at the ordinary Diet session in this year.
・ Second stage: Full liberalization of entry to electricity retail business
Implement by around 2016 (after three years), aiming to submit
the bill at the next ordinary Diet session.
・ Third stage:

Legal unbundling of the transmission and distributionsectors and abolishment of the regulations on retail- 104 -

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electricity rates
Implement by around 2018 to 2020 (after five to seven years),
aiming to submit the bill at the ordinary Diet session in 2015.
Also the government will promote dissemination of storage batteries so thatsurplus electricity is stored to be used during night-time or in case of power
outage. In addition, development of next-generation device, parts and materials
will be promoted to incorporate them into every point from production, distribution
and consumption so that products and systems become highly efficient to allow
efficient use of energy.
○ Developing technologies, seeking international standardization andexpanding dissemination of storage batteries・ Through support for establishing domestic initial market, conducting
demonstration
experimentprojects,
developing
technologies,
international standardization, etc., the government encourages
Japanese companies to capture 50% of the global storage battery
market in 2020.
Also for large grid storage batteries, the government aims to reduce
costs to achieve around 23,000 yen/kWh (which is the same installation
cost for the pumped-storage power generation) by 2020.
○ R&D and commercialization of next-generation device, parts andmaterials (power electronics, etc.)
・ The government will promote R&D and commercialization of powerelectronics (technology for the control of frequency and voltage ofelectricity and conversion of alternating current into direct current inhighly efficient manner), ultra-low power consumption devices,
photonic technology and ultralight structural materials with highstrength, etc. to create new markets.
・ In particular, for power electronics which is the key technology for
improving generating efficiency of renewable energy such as wind
power and mega solar and further enhancing energy-saving
appliances and next-generation automobiles, etc., the government
aims to achieve full-fledged commercialization of next-generation
technologies using new materials, etc. by 2020.
[3] A society where energy is consumed wisely- 105 -

ProvisionalI) Envisioned society and present problems
The government will create an “environment where energy is consumed wisely”
and build advanced supply-demand structure. Such envisioned society will be; i)energy efficiency of devices is drastically increased and usage is improved, at thesame time, through the networking, energy consumption is optimized without
waste; ii) next-generation automobiles, etc. are widely used and energy saving intransportation sector is progressing; iii) cogeneration such as residential fuelcells ,so-called “ENE-FARM” are widely used so that energy can be usedthoroughly without waste; ) houses and buildings have improved heat insulation
performance and they control and generate energy they are using.
On the other hand, right after the Great East Japan Earthquake when
supply-demand situation was tight, we had to depend on the planned outage,
national power-saving edict and uniform energy saving request that affected levelof living as well as production efficiency of factories. Next-generation automobiles
are in the phase of technology development and creating infrastructure, therefore,
dissemination of such vehicles needs more time.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
In the past, the main purpose was stable supply as demand was consideredgiven. However, from now on, by “energy management” through which
consumers proactively engage in and contribute to energy supply-demand andcontrol, wise consumption will be realized. The government will intensively
promote infrastructure development and regulatory and institutional reform forvarious energy and life services focusing on the energy management system andmegawatt trading under Demand Response scheme to accelerate dissemination.
○ Expansion of smart community and establishment of energy
management industry
・ Through conducting demonstration experiment projects on Demand
Response scheme in four smart community areas including
Toyoda-shi and Kitakyushu-shi and promoting Electricity System
Reform, the government will promote establishing and expanding
diverse electricity rate menus.
・ The government will promote introduction of smart meters as theinfrastructure for the new societyto all households and factories inearly 2020s. At the same time, the government will promote
introduction of the energy management systems (HEMS, BEMS, etc.)- 106 -

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to create an environment where energy is consumed wisely all overthe nation for optimizing energy consumption.
Also the government aims to promote energy-saving focusing on households
and commercial sectors to the maximum extent as their energy consumption
has drastically increased recently (2.5 times more since oil crisis). To this end,
the government aims at introduction of fuel cell, phased obligation to comply withenergy-saving standards for housing and buildings, promotion of energy-saving
renovation of existing housing and buildings, extended application of the
top-runner system, and net-zero energy housing and buildings. Also thegovernment aims to disseminate lifestyle by which life quality will be increased
while energy consumption will be reduced.
○ Phased obligation to comply with energy-saving standards forhousing and buildings
・ By 2020, the government will introduce phased obligation to comply
with energy-saving standards for newly constructed housing andbuildings with careful consideration to the regulation necessity,
regulation level and balance with other sectors. To achieve this goal,
the government will address necessary measures to create anenvironment for smooth implementation with careful consideration to
improving construction techniques of carpenters and small- andmedium-sized building firms regarding energy-saving houses and aposition of traditional wooden housing.
・ In particular, energy-saving measures will be further disseminated andsupport will be given for development of new technologies, services
and construction methods that contribute to energy-saving efficiency
in houses, buildings, building materials, devices and so on.
○ Extending application of the top-runner system
・ The new top-runner system will be introduced to building materials
within this fiscal year. To the existing top-runner system, self-ballasted
LED-lamps will be added by this summer.
○ Developing technologies and reducing cost of fuel cells
・ In order to introduce fuel cells in the market of Japan faster than othernations at an accelerated rate, advanced R&D will be promoted, at thesame time, the government will try to reduce cost while promoting fullstandardization, so that 5.3 million (about 10% of Japan’s entire- 107 -

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households) residential fuel cells, so-called “ENE-FARM” will be
introduced in the market by 2030.
In addition, further energy-saving will be promoted through innovativetechnology development and creating energy-saving standards in industry andtransport departments. The government aims to capture 50 to 70% of
next-generation automobiles to total new car sales by 2030, to this end, thegovernment will take measures such as creating initial demand, supporting R&D
to improve performance, developing infrastructure, and so on.
○ Supporting dissemination and improving performance ofnext-generation automobiles
・ On top of promoting development of infrastructure for charging, thegovernment will give purchase subsidy for next-generation
automobiles for creating mass production effect and promoting pricereduction and support R&D for extending driving distance andreducing costs.
○ International standardizations of batteries, charge control, etc.
・ Together with smart grid, international standardizations of batteries
and charger control will be promoted.
○ Support for introduction of hydrogen refueling stations and review
of regulations relating to fuel cell vehicles and hydrogen
infrastructure
・ In preparation for the release of fuel cell vehicles to market in 2015,
review regulations relating to fuel cell vehicles and hydrogen
infrastructure, at the same time, through support for introduction ofhydrogen refueling stations, the government aims to achieve world's
fastest dissemination of fuel cell vehicles.

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Theme 3: Building safe, convenient and economical next-generation infrastructures
Envisioned society: Making use of cutting-edge technologies, realize intelligent
infrastructures
Strategic areas:

Infrastructure management, driving safety support systems,
developing space infrastructureMarket size:(Domestic)
16trillion yen (2020), 33 trillion yen (2030)
Cf. 2 trillion yen (present)
Overseas: 167 trillion yen (2020), 374 trillion yen (2030)
Cf. 56 trillion yen

Size of employment: 0.75 million people (2020), 1.9 million people (2030)
Cf. 0.06 million people(1) Ideal situation in 2030
Viewing infrastructures as social assets which function as basis of economic andsocial activities, by wisely using cutting-edge technologies and accumulated data,
the government aims to reduce costs for the infrastructures in line with fiscal
discipline, at the same time, realize an environment in which such functions areconstantly exerted and safety and convenience will be increased in response tochanging times.
In the process, making full use of equipment, systems and technologies such as
sensors and robots, for which, we have world-leading technical capabilities,
positioning and observation technologies provided by space infrastructures, data
management and utilization technologies, etc. the government aims to establish apresence as a frontrunner in tackling aging infrastructure problem which is also a
global issue.
To this end, the government will pursue to realize the following two envisioned
societies.
1) A society where safe and resilient infrastructures are provided at low cost2) A society where people and goods are provided with safe and convenienttransportation
These will help Japan, ahead of the world, create an environment where social
implementation of infrastructures is possible and by collecting technologies andinvestment from all over the world, the government will create a virtuous economic
cycle to improve domestic infrastructure environment and strengthen business- 109 -

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competitive edge of our country in infrastructure business.
(2) Individual envisioned societies and efforts toward realization[1] A society where safe and resilient infrastructures are provided at low costI) Envisioned society and present problems
The government aims to create a society where total life cycle cost is
minimized by maintenance and repair at the most appropriate time and at
minimum cost as accidents can be forestalled through early anomaly detection.
This will be realized by making use of technologies including sensor, robot andnon-destructive testing to grasp, accumulate and use data of damages, etc. ofvarious infrastructures such as critical infrastructure for life, public infrastructure
and industrial infrastructure.
However, actually, the relevant development is in the initial stage where trial
implementation of sensors for grasping data has been started only recently, andso far, accumulated data are not much. Safety, reliability and economic aspect
are yet to be verified and the majority of inspections and maintenance and repair
are still conducted manually. Also there are several issues, for example, making
public data such as transportation data open and “big data” and enhancement ofgeospatial information through development and construction of satellites.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
In order to overcome the current situation, the government will set a standard
for infrastructure management which requires grasping, accumulating and using
infrastructure data and adopting highly reliable and economical inspection,
maintenance and repair technologies.
To this end, while involving local governments and private sectors, thegovernment takes leadership to newly formulate basic plan for longer life of
infrastructures which contains, for example, the way infrastructures management
should be, direction and roadmap for the future, and then, the government will
promote steady implementation of the plan through measures such as creating
infrastructure database which makes it easy for facility managers to adjust
construction schedule and developing platform for sharing data in across-sectional manner.
○ Formulating basic plan for longer life of infrastructures
・ By around this autumn, infrastructure longer life plan (basic policy) will
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be formulated. By setting numerical targets, clarifying roadmap,
utilizing new technologies, and so on, the government will aim to
improve safety and reduce life cycle cost of infrastructures.
・ Also based on the basic plan, the infrastructure longer life plan (actionplan) covering all fields of the country as well as local governments will
be formulated. This will help steadily promote formulating longer life
plan of individual facilities to realize safety improvement and efficientmaintenance and management of facilities of every infrastructure
throughout the country.
・ In the process, the government will clearly specify new technology
introduction plans, etc. corresponding to development phases such as
R&D, demonstration and implementation, at the same time, thegovernment will support local governments by measures such as
improvement of government structure.
In addition, the government will develop new technologies and management
methods to support and improve new infrastructure businesses, formulate
standard to promote social implementation of such businesses and promote
systems reforms including procurement systems.
○ Constructing inspection and diagnostics systems for infrastructure
utilizing IT, etc.
・ The government will conduct intensive inspection to priority facilities
within this fiscal year and create database for infrastructure so thatpartial operation of platform for maintenance, management, andupdating data can be initiated from next fiscal year and while
enhancing functions, full-fledged operation will be started after fiscal
2015.
・ When credibility and economic aspect are verified for inspection,
maintenance and repair by sensors, robots and non-destructive
testing technique, etc. these new technologies will be introduced one
by one (review of standards for inspection, etc. and reflection, etc. togovernment procurement, etc.)
・ By promoting improvement, the government aims to secure
additional methods, for example, by integrating and operating
infrastructure and transportation data, etc. as geospatial information,
improved monitoring technology will be obtained and by developing
inspection, maintenance and repair technologies using robots, etc.
efficient and effective maintenance and infrastructure updating will
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Provisionalbe achieved, thus, we do not have to rely on manual work alone.
・ Utilization of PPP/PFI will be promoted to introduce private sector
technologies and knowhow.
・ Overseas demonstration projects and technology application to
overseas infrastructures will be expanded.
○ Developing new materials
・ From next fiscal year, the related ministries and agencies will work
together to promote development of R&D of new materials such as
self-restoring materials that contribute to extending life of
infrastructures.
・ When credibility and economic aspect are verified for new materials
by field trials, etc. such materials will be applied to infrastructures
one by one.
○ Developing and using space infrastructure
・ By also using private funds (PPP/PFI), the government will develop afour-satellite quasi-zenith satellite system by the second half of the2010s, at the same time use of geospatial information will bepromoted.
・ It is necessary to introduce and operate several remote sensing
satellites for disaster prevention with Asian countries in an integrated
manner, and in the process, actual user needs, cost efficiency, etc.
as well as effective use of satellite, which is currently underdevelopment, will be also taken into consideration. Also by
promoting provision and integrated operation within the ASEAN
region, the government aims to acquire regional standards ofpositioning data and satellite image data so that infrastructure
systems using our IT technologies will be expanded globally.
○ Achieving safe and convenient living environment utilizing IT[reposted][2] A society where people and goods are provided with safe and convenienttransportation
I) Envisioned society and present problems
The government aims to create a society where traffic accidents andcongestion are drastically reduced and distribution service is provided at cost and- 112 -

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speed that does not make users be conscious of distance and time. The ultimate
goal is to create a society where there is no traffic accident.
Although it is necessary to establish technologies which supplement declined
physical performance or cognitive function of the elderly such as reaction speed,
many of such technologies, which are expected to solve the problems, are still at
the research phase and social implementation has made little progress.
In addition, although economic activities of individuals and companies are
rapidly expanding centering on Asia, improvement of distribution services is yet tocatch up such rapid expansion, therefore, it is necessary to make
distribution-related systems seamless.

II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
To overcome such situation, the government will promote safe and comfortabletransportation of people and goods as a national project, by developing andbuilding driving safety support devices and driving safety support systems
utilizing inter-vehicle communication, road-to-vehicle communication, etc.,
self-driving system, traffic congestion prediction system and distribution system.
To this end, the government will develop a system for promoting this project andshare roadmap between the public and private sectors to focus on R&D anddemonstration as well as building a system to implement them.
○ Developing driving safety support and self-driving systems andcreating environment
・ In order to realize envisioned society where safe and comfortabletransportation of people and goods is provided, the government willclearly specify numerical targets and roadmap and promote R&D
through cooperation among the related ministries and agencies,
formulate and implement demonstration project under the leadershipof the government and formulate driving support system upgradingplan through forming an alliance among domestic and foreigncompanies. Review will continue to reach conclusion by end of
August this year, and then, necessary measures will be taken. To thisend, governmental promotion systems will be established
immediately so that the related ministries and agencies will tackle
together.
○ Creating information service environment by big data relating to- 113 -

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vehicles・ In order to integrate and use various data owned by the public andprivate sectors and effective to control congestion and improvesafety, the government will make data of public agencies (road traffic
information, etc.) open and promote creating big data by integrating
position and GPS data collected from general vehicles owned byprivate sectors, furthermore, the government will create anenvironment where public sectors are also able to utilize such data.
・ Not only providing real-time congestion data, but by using weather,road construction, distribution volume, past congestion data, etc. thegovernment will establish and disseminate a new system which
actively predicts traffic congestion.
In addition, the government aims to speed up trade-related procedures andextend opening hours of ports and harbors, at the same time, the government will
promote collaboration of distribution information systems with Asian countries totimely grasp cargo information so that efficient and smooth distribution will be
realized.

○ Improving distribution system
・ The government aims to introduce Asian countries NACCS, a platformof Japan’s comprehensive distribution information systems. Firstly, inJapan, the government will promote acceleration and paperless of
trade-related procedures, etc., for example, integrating various
electronic procedures to NACCS by October of this year. In addition,
the government will try to extend opening hours of ports and harbors
as necessary (24 hours opening of gate of ports and harbors andcustoms).
・ Promoting collaboration of distribution information systems with othercountries enables to timely grasp the place where cargo is beingtransported and by making delivery mode smooth, for example, fromvessels to trucks and railroad, the government will improve overall
efficiency of distribution.

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Theme 4: Building regional communities that use their unique local resources toappeal to the world
Envisioned society: Proud regional communities rich with unique regional resource
brands to appeal to the world and uses such resources to grow
Strategic areas: Japan brands such as agricultural, forestry and fishery products andfood produce, “AFFrinnovation”(the sixth industry), content andculture(*”AFFrinnovation” (the sixth industry) is collaboration of Primary, Secondary, andTertiary Industry)Market size:[Agriculture](Domestic)
100 trillion yen production value of agricultural and food relatedindustries to be expanded to 120 trillion yen (2020)
Of which, ““AFFrinnovation”(the sixth industry)”currently
contribute 1 trillion yen to be expanded to 10 trillion yen (2020)(Overseas)
340 trillion yen value in the world’s food market (*) to be
expanded to 680 trillion yen (2020)* Source: Estimation by A. T. Kearney[Tourism]
Domestic travel consumption of foreign visitors to Japan
1.3 trillion yen (2010) toward 4.7 trillion yen (2030)
Size of employment: [Agriculture]
Doubling newcomers to agriculture to settle and in ten years,
increasing younger agriculture workers (under 40s) frompresent 200 thousand to 400 thousand[Tourism]
Employment effect from consumption of foreign visitors toJapan
0.25 million people (2010) toward 0.83 million people (2030)(1) Ideal situation in 2030
All over Japan, we have abundant attractive regional resources including highquality agricultural, forestry and fishery products and tourism resources that attract
the world and the Value which can be called “Japan Brand” does exist. By making
use of such regional resources to appeal to consumers and companies all over the- 115 -

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world, the government aims to make regional communities earn in autonomous andsustainable manner to grow into affluent communities.
To this end, the government aims to realize the following two envisioned societies.
1) A rich rural society which produces world’s best quality agricultural, forestry
and fishery products and food produce
2) A society which makes use of potentials such as tourism resources to invite
many world’s tourists to regional communities(2) Individual envisioned societies and efforts toward realization[1] A rich rural society which produces rich world’s best quality agricultural, forestry
and fishery products and food produceI) Envisioned society and present problems
By matching consumer-oriented market mindset and agriculture, forestry andfisheries taking advantage of characteristics of local areas, excellent agricultural,
forestry and fishery products and food produce of Japan will be exported all over
the world and local agricultural, forestry and fishery products and food produce
will be disseminated throughout the global market. The government aims tocreate a rural society in which, while adequately and fully exerting multifaceted
functions, agriculture, forestry and fisheries are converted into growth industries,
and there is stronger collaboration between diverse main players such as young
people, the elderly and companies and agriculture, forestry and fisheries, so thatsuch society will be active and becomes basis for creating innovation.
Such conversion of agriculture, forestry and fisheries into growth industry isvital to support Economic Revitalization of Japan, however, under the current
situation, agriculture of our country has serious structural problems including
declining population of farmers, progress in aging and increasing deserted
farmland. In order to solve these problems, it is necessary to take bold measures
to enhance strength and overcome weakness and promote structural reform of
agriculture. In addition, Japan has a comparative advantage in many aspects
because we have high quality farmland, abundant forest and marine resources aswell as technologies to produce safe, secure and high quality agricultural, forestry
and fishery products and diverse agricultural, forestry and fishery products havecreated rich food culture, nevertheless, viewing them as industry, we have notbeen able to fully exert intrinsic global competitiveness.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions- 116 -

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With the objective of increasing the competitiveness of agriculture, forestry andfisheries, the government will promote measures such as strengthening
production site, approach for demands and “AFFrinnovation”(the sixth industry) to
combine them in an integrated manner, at the same time, the government willappropriately revise the Farm Income Stabilization Program (former Program forthe Direct Payment of Income Support), promote measures for exerting
multifaceted functions of agriculture, forestry and fisheries and review creation of
new direct payment scheme. Making agriculture, forestry and fisheries the growthindustry, the government will formulate and implement a strategy to double theincome of agriculture and of farming communities as a whole over the next ten
years in promoting transition to AFFrinnovation”(the sixth industry)”. In order tosteadily promote these measures, “local revitalization board for agriculture,
forestry and fisheries” established at the prime minister's office will discuss anddecide future policy direction as early as possible under “the local revitalization
plan for agriculture, forestry and fisheries (provisional name).”Specifically, as a first step, agricultural production will be reinforced throughefforts such as making the most efficient use of farmland. Also the government
will accelerate consolidation and intensification of farmland to motivated entities,
resolve the deserted farmland problem, and make farmland be used fully andreduce production cost by letting diverse motivated entities such as corporate
farmers, large-scale family farmers, consolidation farming associations, andcompanies run farms. The target is, in the next ten years, 80% of all farmland
should be used by motivated entities (around 50% at present). With combined
efforts of industry in terms of materials and distribution, the cost of rice production
by motivated entities can be reduced by 40% compared to the current national
average (16 thousand yen per 60kg), also the number of corporate farmers will bequadrupled to 50,000 from the level of 2010.
To this end, for the following measures, details will be set out by autumn thisyear, and these measures will be swiftly implemented including development oflegal system and budgeting. In this process, full attention will be paid tocollaboration between agricultural industry and business industry and utilizationof private-sector initiative. Utilization of trusts will be also reviewed.

○ Increasing competitiveness by consolidation of farmland to
motivated entities and by prevention, resolution, etc. of deserted
farmland・ In order to powerfully promote agricultural structural reform and cost
reduction by consolidation and intensification of farmland to motivated- 117 -

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entities, prefectural institutions will be revised and utilized. Specifically,in order to promote efficient use of farmland, a farmland re-distribution
scheme will be established. In this scheme, the prefectural institutions
will lease considerable part of farmland within local areas (semipublicly owned), and after improving infrastructures such as transitionof farmland to larger blocks, farmland will be rented with the intentionof consolidation to diverse motivated entities (corporate farmers,
large-scale family farmers, companies, newcomers, etc.) andintensification by individual motivated entities, which will expand theiractivities. In the process, the prefectural institution delegates tasks tomunicipalities and private companies, and develop a cooperative
framework in each community.
・ As for the measures to deserted farmland problem, farmland with apotential to be deserted, due to the reasons such as death of owners,
will also be the target of the measures. And drastic improvement ofprocedures like confirming owners' intention to lend their lands to theprefectural institutions and simplifying public announcement system
will be promoted, so that the institutions can be given right to use
farmland by arbitration.
・ Together with such measures, the government will promote
developing and reviewing “Farmers and Farmland Plan” throughthorough discussions among local farmers to form a consensus
concerning consolidation of farmland to motivated entities.
・ Also corporate entry into agriculture by leasing farmland, which was
fully liberalized in 2009, will be positively promoted by utilizing theprefectural institutions. In addition, further liberalization of corporate
entry into agriculture under ownership system, such as deregulationof agricultural production corporation will come under consideration,with reviews of corporate entry after liberalization of leasing farmland
and deregulation of agricultural production corporation in 2009, whileconsidering the impact on promotion of consolidation andintensification of farmland.
・ In order to support consolidation of farmland to improve productivity,
the government will promote improvement and consolidation of
farmland such as enlargement of farmland blocks and improvement ofagricultural irrigation facilities implemented by entities such asprefectural governments, by utilizing the prefectural institutions.
In addition, the government will create innovation by making use of new- 118 -

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technologies and cross-industry partnerships, etc. In this process, market-in
mindset will be established in agriculture and market size of the “AFFrinnovation”(the sixth industry) will be expanded from present 1 trillion yen to 10 trillion yen in2020.
○ Promoting “AFFrinnovation” (the sixth industry) throughcollaborations, such as the collaboration of agriculture, commerce,
and industry
・ “AFFrinnovation” (the sixth industry) will be promoted by full-fledged
operations of an Agriculture, Forestry and Fisheries Fund forInnovation, Value-chain and Expansion Japan, promoting
cross-industry partnerships, etc.
・ In order to create healthy long life society through expanding markets
focusing on health, to expand domestic demand and markets, and to
expand exchange between cities and rural areas in coordination withwelfare, education, and tourism, etc., from the next fiscal year, thegovernment is looking to establish industry-government-academia
alliance for systematically managing scientific knowledge of food andto do research on relation between dietary habit and health. Also topromote Shokuiku (food education) as a national campaign, thegovernment will address to enhance understanding for food andagriculture, forestry and fisheries so that 35% of citizens experience
agriculture, forestry, and fisheries in five years’ time.
・ By developing and disseminating new varieties and new technologies
and protecting and actively using intellectual properties, thegovernment will promote creation of agricultural and livestock
products with “advantage” and formulate and announce productspecific-policy for development, protection and dissemination of newvarieties and technologies within this year. Also the government will
create a system to comprehensively solve common problems in theJapanese plant seedling industry such as facilitating acquisition ofoverseas genetic resources and making countermeasures against
intellectual property infringements.
・ Along with efforts such as increasing consumption in local areas
under cross-industry partnerships and increasing use by supplying toschool food service, “model area for food” led by a council consistingof diverse business operators will be set up within this year to promote
consumption of domestic agricultural, forestry and fishery products.
・ While promoting schemes such as building a framework for- 119 -

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supporting development of agriculture, forestry, and fisheries bymaking use of renewable energy, the government will focus onpromoting industrialization and energy introduction such as utilizationof local biomass in approximately 100 areas over the next five years.
Also the government will try to increase demand by measures such as
promoting export of Japanese agricultural, forestry and fishery products and foodproduce. The target is to increase export from about 450 billion yen at present to1 trillion yen in 2020. For this purpose, an Export Promotion Strategy for eachmarket and each item will be formulated. While strengthening cooperation withJapan External Trade Organization (JETRO), etc., through an integrated
approach, the government will promote the use of Japanese food ingredients by
the world’s cuisines (Made FROM Japan), overseas expansions of “Globalizationof Japanese Food” (Made BY Japan), and export of Japanese agricultural,
forestry and fishery products and food produce (Made IN Japan).
○ Formulating Export Promotion Strategy for each market and eachitem
・ In order to increase export of products which characterize Japanesefood (fishery products, rice and processed rice products such as
Japanese sake, beef (Wagyu), fruits and vegetables, etc.)
product-specific numerical targets for export of agricultural, forestry
and fishery products and food produce, as well as targets fordevelopment of the export environment, etc., will be set up within theyear.
・ Quick export will be realized by conducting necessary procedures forexport, including plant quarantine, in wholesale markets. At the sametime, under collaboration of production areas, a system to realize
stable supply of Japanese agricultural, forestry and fishery products
throughout the year will be build.
・ In order to disseminate HACCP (Hazard Analysis and Critical Control
Points) system which corresponds to overseas safety standards, thegovernment will establish a system to create manuals and give
support for obtaining export HACCP by the next fiscal year so that
information on safety and security of Japanese food can becommunicated to the world. At the same time, a system to issue
Certificate of Free Sale, which is sometimes required in export
procedures, will be created within this fiscal year.
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Provisional○ Globalization of Japanese food culture and food industries
・ Through promoting collaboration of Japanese food ingredients withthe world’s culinary circles, cultivating human resources todisseminate Japanese food, etc. the use of Japanese food ingredientsby world’s cuisine will be promoted (Made FROM Japan).
・ Through creating a business environment, cultivating humanresources, taking measures against intellectual property
infringements, giving support by investment, etc., Globalization ofJapanese food (Made BY Japan) will be realized.
・ Through formulating a Export Promotion Strategy for each market andeach item, creating a business environment, giving support byinvestment, etc., Japanese agricultural, forestry and fishery products
and food produce will be exported (Made IN Japan).
・ In order to realize the above global expansion of food industry,measures including providing opportunities for government-private
discussions, building a system to secure and use specialists andexperienced human resources and an initiative for global expansion ofentire food system will be implemented from next fiscal year.
・ Through participating in “Expo Milano 2015” which will be focused onfood, the government will diffuse the strength of agriculture, forestry
and fisheries and food related industries as well as appeal Japanesefood and traditional dietary cultures.
In addition, by taking measures such as developing new breeding techniques
and agricultural, forestry and fishery products with high function and high added
value, advancing production and distribution systems utilizing science,technology and innovation such as IT and robot technology, the government aims
to expand and grow these markets and industries.
○ Improving agricultural, forestry and fishery products and advancing
production and distribution systems by new technologies
・ Aiming for realizing practical application by 2030, R&D will besupported to promote advancing agriculture, forestry and fisheries
technologies making use of genome information, etc., (such as
developing breeding techniques to improve important characters) anddeveloping highly-functional and high added value agricultural,
forestry and fishery products (developing a “personalized food supply
system” to supply high added value food with preventive effects, etc.
according to individual’s personal needs and combining such system- 121 -

Provisionalwith medicine, engineering and so on).
・ R&D and large-scale demonstration projects will be promoted foradvancing production and distribution systems of agriculture, forestry
and fisheries by making use of IT, robot technologies, etc. (such as
developing cultivation or production system of large-scale, laborsaving and light workload) and developing and disseminating energy
resource production technologies by microorganism and biomass.
・ By incorporating knowledge of exemplary farmers who havesophisticated production skills in various ways such as fostering
human resources and improving profit, the government will establish
new production method by 2016, at the same time, the government
aims to build value chain by disseminating traceability system thatmake connection from farm to fork by data. With such technologies
incorporating IT, the government aims to position overseas
deployment of produced agricultural products and relevant
technologies for growth after FY2017.
In addition, the government will support conversion of forestry and fisheries into
“growth industries” by measures such as creating new demand for wood products,
establishing a stable and efficient system to supply domestic wood, promoting
coordination and consolidation of forestry practices and promoting highly
profitable and sustainable fishery and aquaculture through expanding
consumption and export of domestic fishery products and proper resource
management.
[2] A society which makes use of potential such as tourism resources to invite many
world’s tourists to regional communities
I) Envisioned society and present problems
By capturing tourism demand in rapidly growing Asian countries and othercountries in the world, the government will try to revitalize regional economies,
and increase employment opportunities and other benefits.
Currently, Japan’s potential of tourism resources such as rich cultural heritageand natural environment are not fully exploited due to reasons such as insufficient
communication on attractiveness of Japan to the world.
II) Direction toward solution, strategic areas (markets and industries) and
immediate key policy actions
In order to overcome the current situation, the government aims to establish a- 122 -

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comprehensive Japan brand through content, culture arts including traditional
culture and regional culture and people and widely penetrate Japan brand all over
the world so that “Japan Boom” will be created to attract many foreign visitors to“Japan.” The target is to receive 10 million foreign visitors in this year (8,370
thousand in 2012), and a higher goal is aimed at for 20 million, and then, toward
30 million in 2030. This will make Japan a top-class country in Asia in terms of
tourism receipts (ranked 10th in Asia in 2011).

○ Cross-sectional planning and implementation of Visit Japan
Promotion by relevant ministries, agencies and institutions
・ By this summer, the government will create a scheme to publicize
Japan brand under governmental integrated efforts such as regularly
planning events to be carried out under collaboration of related
ministries, agencies and institutions.
・ In order to promote publicizing Japan brand which is integrated with
Cool Japan, through diverse measures including support for
localization (such as support for subtitles, dubbing or coping with local
standard) and promotion of Japan-related content, international
joint-production of TV programs, purchasing broadcast slots of foreign
TV programs through the Japan Brand Fund (tentative) which is to be
newly established, support for so-called “Japan Channels” whichbroadcast Japan-related content in foreign countries, and support foroverseas deployment of so-called “Japan Mall,” the related ministries
and agencies (the Ministry of Economy, Trade and Industry, theMinistry of Internal Affairs and Communications, the Japan Tourism
Agency, etc.) and private companies will jointly promote continuous
publicizing of content to improve Japan brand and promote tourism.
・ Local cultural assets such as national treasures and important culturalproperties will be conserved and maintained, at the same time, thegovernment will review as to how to publicize information and how toutilize such assets within this fiscal year so that they can be actively
publicized both inside and outside of the country and utilized as tourist
resources.
○ Improving tourism environment such as relaxing visa requirements
and making entry procedures faster・ To become a tourism nation, the government will take necessary
measures toward relaxing visa requirements by taking into
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consideration the situations of neighboring nations. As a first step, for
ASEAN nation tourists which are expected to increase rapidly in the
future, the government will relax visa requirements in the light of 40thYear of ASEAN-Japan Friendship and Cooperation as an opportunity,
while giving due consideration for public safety. Visitors from Thailand
and Malaysia will be made exempt for visa requirements, visitors fromthe Philippines and Vietnam will be given multiple entry visas andvisitors from Indonesia will have their stay period extended for theirmultiple entry visas. Also to capture long-stay demand of foreign
high-income class people, the government will consider
implementation of a system which allows foreigners who meet certain
conditions to stay for an extended period.
・ While making entry procedures for large cruise ships faster andsmoother and publicizing a one-stop desk to handle foreign cruise
ship companies, the government aims to increase the number of
immigration booths for foreigners and create fast lanes.
・ The government will enhance airline networks through strategic
promotion of Open Sky Policy including capital area airports based onincreased capacities, and encouragement of LCC entries and develop
the use environment for business jets.
Also it is important for foreign visitors to be able to stay comfortably any place
all over the nation, enjoy attraction of the area they are staying and deepen
sympathy for “Japan” brand. The government aims to realize a society whereapproximately one in six overnight guests is a foreign visitor in 2030 (in 2011,
approximately one in 23 overnight guests is a foreign visitor).
○ Improving environment for foreign visitors to stay in Japan・ The government will create common guidelines for multilingual
support of information boards of public transportation facilities androads, art museums, museums, natural parks, and tourist spots from aforeigner's viewpoint within this year, and based on these guidelines
necessary development and improvement measures will be taken.
Multilingual support in audio guidance will be promoted as well.
・ Consideration for constructing the railroads that connects the Tokyo
city center and capital area airports directly [reposted]・ Through measures such as discovering and polishing tourist
resources to securely commercialize them as tours and fostering
human resources, the government aims to increase and publicize
attraction of tourist areas and fostering new business to support these- 124 -

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processes, also, creation of new tourist areas based on novel ideas
will be promoted. In addition, the government will create a system inwhich overseas deployment of local resources will be supported
through consultation for individual areas and concentrated promotion
for such areas by the Japan National Tourism Organization (JNTO)
early in this year.
・ The government aims to establish a certification system for tour
operators who arrange accommodations, etc. for foreign visitors. Also
to introduce an accommodation information provision system, thegovernment will decide on a concrete policy within this fiscal year topromote its implementation.
・ The government aims to improve receiving environment such asproviding food based on considerations for religious rules andrestrictions.
・ Taking into consideration the convenience of foreign visitors as well as
the perspective on enforcement, the tax free system for consumption
tax for foreign visitors will be reviewed in the process of request for tax
revisions including a possible revision of the system.
○ Creating new tourism
・ By making use of abundant tourist resources of our country, thegovernment will promote creating new tourism (eco-tourism, green
tourism, cultural tourism, industrial tourism, sport tourism, tourism
linked with medical care, infrastructure tourism, etc.).
○ Utilizing and concentrating industrial resources and establishingbrands [reposted]
Furthermore, by attracting many people, excellent knowledge and investment
to Japan, the government aims to establish Japan’s position as an Asian top
host nation of international conferences in 2030.
○ Creating and reinforcing the framework to attract more international
conferences, etc. (MICE)
・ Under selection and concentration policy, the government will selectand support “Global MICE strategic city” which has world top classpromotion capability, system and receiving environment. The
government will support cities to improve their marketing capability
through measures such as cultivating potential conferences and- 125 -

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dispatching overseas MICE specialists. The government will also
invite conferences targeting national and cities’ growth fields, at thesame time, reinforce city functions as an attractive hosting venue.
・ Invitation from the viewpoint of all-Japan will be promoted by building
collaboration with industry, universities, etc., such as creating a
promotion team having international leaders of major areas as key
members within this year.
・ The use of cultural facilities and public spaces of national and local
government will be promoted to activate events. (Developing andpromoting use of unique venues*). To this end, a council consisting ofparties concerned including private business operators will be set up
early in this year.
* Venues where special feelings can be created and local features can be staged
by holding conferences or receptions, e.g. historic buildings, cultural facilities
and public spaces.

・ The Japan Tourism Agency, the Japan National Tourism Organization(JNTO), the Ministry of Economy, Trade and Industry and the Japan
External Trade Organization (JETRO) will work together to create a
joint action plan for increasing the number of foreign visitors early inthis year, and based on the plan, concrete collaboration will bepromoted.
○ Inviting and hosting large scale international events・ Through active hosting of symbolic international events such as
realization of the 2020 Olympic and Paralympic Games in Tokyo, thestate of Japan as an event powerhouse and advanced nation forinternational exchange will be powerfully publicized.

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3. Strategy of Global Outreach- 127 -

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3. Strategy of Global OutreachAs the world market is rapidly expanding in particular emerging countries, eachcountry is involved in an intense competition to obtain this growth market. Japan will
actively enter the world market by making use of its strength such as our companies’
technological capabilities and take in the world economic growth by attracting humantalents, goods, and funds from the world to Japan through the expansion of inward
direct investment, etc.
Therefore, the government will take initiatives to develop a business environment
to facilitate international deployment through the expansion of economic partnershipagreements as well as the conclusion of investment agreements and tax treaties,
removal of institutional obstacles which extend over the domestic and international
markets, and promotion of full-fledged globalization within Japan through the
improving environment for foreign investment and fostering global human resources.
At the same time, the government as a whole will take strategic initiatives in Japanand overseas through public-private sector joint efforts to deploy high-value-added
products and services in global markets such as advanced technologies,
high-performance products, high-quality infrastructure, and content based on richculture.
1. Building strategic trading relations and promoting economic partnership
The government will raise FTA ratio from current 19% to 70% by 2018, bypromoting economic partnership as a basis of global economic activities. Therefore,
the government will draw up new rules in Asia-Pacific region by working positively on
the Trans-Pacific Partnership (TPP) negotiations and use these rules as a basis fordiscussion of rulemaking for Free Trade Area of the Asia-Pacific (FTAAP), a larger
plan which lies ahead, along with wide-range economic cooperation such as
Regional Comprehensive Economic Partnership (RCEP) and Japan-China-ROK FTA.
In addition to the initiatives above, the government will simultaneously work on
Japan-EU EPA, etc. and will make a contribution as an important player to promote
rulemaking for global trade and investment by stimulating and activating eacheconomic partnership.
○ Promoting economic partnership negotiations contributing to thenational interests
・ Reinforce the system among concerned government ministries
including the Cabinet Secretariat in order to simultaneously deal witheconomic partnership negotiations including TPP, RCEP,- 128 -

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Japan-China-ROK FTA, Japan-EU EPA, etc. based on industrial
needs. Especially for TPP, the government will prepare 100-people
team and take appropriate measures to conduct negotiations by thegovernment as a whole.

○ Initiatives concerning regulatory systems toward enhancing
economic partnership・ In light of movements such as progress of negotiations for future
economic partnership, the government will accelerate consideration
about response to proposals concerning regulatory reform by using
deliberation in “Council for Regulatory Reform”.
○ Promoting conclusion and reform of investment agreements and tax
treaties・ The government will accelerate the conclusion of investment
agreements based on our industrial needs and conclusion status of
economic partnership agreement including its Investment Chapter
from the standpoint of promoting overseas development of companies
and securing a stable supply of mineral and energy resources.
Therefore, it will develop and promote guidelines toward promoting
and making effective use of the conclusion of investment agreements.
It will also strengthen the system of the authorities concerned toward
its realization.
・ The government will comprehensively consider standpoints
concerning our industrial needs and appropriate securement of our
taxation rights, etc. and accelerate initiatives to expand tax treaty
networks which contribute to assistance for overseas development ofcompanies. It will also strengthen the systems of authorities
concerned toward its realization.
○ Accepting foreign nurses and care workers
・As for acceptance of foreign nurses and care workers based on
economic partnership agreement, the government will start accepting
those from Vietnam from next fiscal year in addition to those fromIndonesia and Philippines and continue to consider expanding
acceptance in the future.

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2. Strategic initiatives for obtaining overseas markets
The government will achieve the order target of infrastructure systems,
approximately 30 trillion yen by 2020 proclaimed in “Infrastructure Export Strategy”(decided at “the Ministerial Meeting on Strategy relating Infrastructure Export andEconomic Cooperation” on May 17 this year) by beefing up safety measures forJapanese expatriates and Japanese companies, etc. and making the most ofJapan’s “advantageous technologies and know-how” in order to actively take into
world's huge demand of infrastructure. In addition, it will also try to obtain overseas
markets by effectively using overseas government offices and government-affiliatedagencies and maximizing our advantages through support to small andmedium-sized enterprises (SMEs) with world-class technologies and motivation as
well as promotion of strategic Cool Japan.
As for emerging countries, considering the level of economic development oftarget markets, the level of overseas activities of our companies, and the competitiveenvironment with companies from other competing countries, it will set targets formarket development in three regions below respectively and work on overseas
market development through public-private sector joint efforts.
<China, ASEAN, etc.>- On the basis of the fact that Japanese companies have alreadyestablished supply chains and the consumer markets are growing, thegovernment will improve a business environment and support theforay into new fields. Specifically, it will aim for establishing East Asian
Economic Community using Economic Research Institute for ASEAN
and East Asia (ERIA) and go on strengthening the infrastructure suchas wide-area roads and power grids, etc., supporting the developmentof industry policies and legal systems, and strengthening protection of
intellectual property, etc. It will also assist Japanese companies inlocal currency-dominated fund procurement through bilateralmonetary cooperation. It will aim to double "export amount andoverseas subsidiaries’ sales" by 2020 compared to 2011 level.
<Southwest Asia, Middle East, Russia and CIS, and Central and SouthAmerica>- On the basis of the fact that Japanese companies relatively fall behindWestern companies in expanding their market into these areas
although the markets are large, the government will aim to focus onpromising sectors, gain a certain share and show their presence in
relevant sectors. Specifically, the government will assist Japanese- 130 -

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companies in full-fledged entry into local markets through building a
network with local industries and strengthening local support systems.
It will also strengthen bilateral economic relations and push forward
an overseas advance of Japanese companies through cooperation indevelopment plans and in the energy sector. Furthermore, from thestandpoint of securing of natural resources, it will strengthen bilateralrelations through an expansion of investment, technologicalcooperation, etc. As a result, it will aim to double "export amount andoverseas subsidiaries’ sales" by 2020 compared to 2011 level.
<Africa>- On the basis of the fact that Japanese companies fall far behindWestern and Chinese companies in expanding their market into thearea, the government will aim for producing as many best practices as
possible. Specifically, it will initiate the interest of companies, create
an opportunity to make a foray, raise the awareness of Japan,
promote trade and investment in natural resources sector, improve
infrastructure, and foster industrial human resources, etc., based on
the outcome of The Fifth Tokyo International Conference on African
Development (TICADV). In addition, it will also strengthen local
support systems and conclude investment agreements. It will aim to
triple "export amount and overseas subsidiaries’ sales" by 2020
compared to 2011 level.
(1) Exporting infrastructure and securing natural resources
Implementing “Infrastructure Export Strategy” promptly and steadily○ Making sales pitches by the Prime Minister and ministers andstrengthening cooperation system between the public and private
sectors
・ The Prime Minister and ministers will make at least ten sales pitches each year toforeign nations. On this occasion, the government will make general coordinationand marketing effort through all-Japan cooperation by making use of Task Forcefor Focus Countries as a control tower for cooperation across ministries andagencies and between the public and private sectors.
○ Using strategic economic cooperation
・ The government will implement ODA strategically based on threepillars of assisting international deployment in the economic field,- 131 -

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establishing a favorable international environment, and promoting
human security.
・ The government will promote each measure in “The New Measures for
improving the Japanese ODA Loans” announced in April this year toprovide Japan’s outstanding technologies and know-how for
developing countries and revitalize the Japanese economy by taking in
growth of emerging countries and will continue to consider
improvement plans.
・ In order to expand export of infrastructure, etc. by Japanese companies
and local governments, the government will coordinate with partner
governments by taking advantage of technological cooperation andgrant aid at an early stage of the wide area development project andmake strategic use of yen loans as well as JICA’s Private Sector
Investment Finance, etc.
○ Enhancing a public finance scheme
・The government will encourage our companies to participate inoverseas infrastructure projects. Therefore, it will advanceconsideration at an early stage and take necessary legal measures
regarding revisions of trade and investment insurance to newly coverrisks caused by terrorism and wars and risks concerning technologicalassistance and investment that overseas subsidiaries financed by ourcompanies provide for third countries which private insurers can notcover. Moreover, it will strengthen local currency-denominatedfinancing support through JBIC and NEXI* to promote smooth local
currency procurement by Japanese companies which expand theirbusiness overseas.
* NEXI means Nippon Export and Investment Insurance, an Independent
Administrative Agency.

○ Joint Crediting Mechanism [reposted]○ Obtaining international standard, etc. using advanced technologies
and knowledge and developing authentication infrastructure, andsupporting overseas advance of Japanese companies into sectors
which will be new frontiers・ The government will promote cooperation with standardization bodies
in emerging countries mainly in Southeast Asia to lead the way ininternational standards in sectors such as smart grid, energy-saving- 132 -

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infrastructure, etc. that our country has an advantage in. It will expand
target countries for assistance for institution-building by aiming toachieve diffusion of de facto standard based on our specification
using ODA.
・ The government will develop internationally-accepted authentication
infrastructure in Japan in sectors of smart grid, large scale wind power
generation, etc. and will promote overseas advance of Japanesecertification authorities by technological cooperation so thatauthentication services equivalent to ones in Japan are offered inoverseas production sites.
・ The government will support global business development of
infrastructure system in sectors which will be new frontiers such as
health care, agriculture, aerospace, ocean, etc.
○ Promoting securement of stable and affordable resources
・ The government will continue efforts aimed at realizing import of LNG
from North America and diversify supply sources by risk money supply,
etc. based on ” Action Plan for Reducing Fuel Procurement Cost” tosecure energy and mineral resources. In addition, it will advancesteady implementation of “Japan's Initiatives for Promotion of African
Resources Development,” strengthening of collaboration among LNG
consuming countries through “the 2nd LNG Producer-Consumer
Conference” held this September, and consideration about the LNG
futures market.
・ The government will strengthen cooperative relationship inwide-range of fields such as technological cooperation, etc. toward
resource countries to renew and obtain resource interests. The
technological cooperation includes cost-sharing technologicalcooperation for ODA graduate countries, etc. that partner
governments bear a portion of expenses.
(2) Intensive support to potential small and medium-sized enterprises (SMEs)
The government will improve a full continuous support system before and after
companies’ overseas advance for potential SMEs, etc. (including service
industry) with advanced technologies which have established good businessmodels such as marketing network and are competitive in the world market
regardless of business category and scale to double their export amount by 2020
compared to 2010 levels.
- 133 -

Provisional○ Strengthening support system for overseas development of small
and medium-sized enterprises (SMEs) (including service industry)・ Institutions which support SMEs operating in local communities
provide consultation concerning overseas development for SME on a
one-stop basis making use of Internet, IT cloud, etc.
In addition, institutions which support overseas development (thegovernment, public support organizations, local business group, local
governments, etc.) organically collaborate with each other andestablish a system (“SMEs' Overseas Development Passport<provisional name>”) within this year which enables consistentsmooth support at home and overseas for SMEs’ global businessdevelopment.
○ Establishing “one-stop overseas consultation offices” at sites
overseas
・ The government will establish 10 “one-stop overseas consultation
offices” that provide consultation for legal, labor, intellectual property,
and other issues which SMEs and service companies face at sites
and refer them to professional bodies such as reliable law firms, etc. It
will increase the number of offices where appropriate.
○ Supporting development of financial infrastructures in Asia
・ The government will promote technical support to Asian countries indeveloping financial infrastructures (legal and settlement systems,etc.) in order to ensure smooth funding for SMEs’ overseas
operations.
○ Fostering human resources and promoting globalization ofJapanese companies
・ To create globally competitive human resources capable of thinking
on their feet, the government will dispatch young interns fromJapanese companies as an advance team to foreign government
agencies and enterprises strategically selected through cooperationof human network of ex-participants of training program in Japan(AOTS Alumni Societies, etc.), JETRO, and private companies. JICA
will support human resource development required for the overseas
expansion of companies by dispatching employees in privatecompanies as “ JICA’s Overseas Volunteering Program in
Collaboration with Private Sector” to developing countries based on- 134 -

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corporate needs. Moreover, it will promote the acceptance of trainees
from overseas, assistance in dispatching professionals to sites
overseas, and reinforcement of cooperation with local technologicaluniversities, etc. to foster “right-hand persons of CEOs / top businesspractitioners” at overseas subsidiaries of our companies.
○ Supporting companies’ overseas development by using domestic
and overseas human resources
・ The government will promote SMEs’ overseas development bydispatching senior human resources to SMEs with willingness to
expand their business overseas and making up for lack of know-how
on their overseas deployment. It will also promote assistance tofacilitate the use of external human resources such as supporting job
placement for foreign students in Japan, etc. (The government will
aim that ten thousand foreign students studying in Japan will be
employed every year.)○ Supporting overseas development of small and medium-sizedenterprises (SMEs) using ODA
・ The government will fully launch technological cooperation using
outstanding products made by SMEs for government projects indeveloping countries including emerging countries by newly taking
advantage of ODA.
(3) Promoting Cool JapanThe government will place Cool Japan as the national strategy and strengthen
these efforts through public-private sector joint efforts to effectively transmit
content based on rich Japanese culture such as traditional and regional cultureand “Japan’s attraction” including Japanese food and Japanese alcoholic
beverages, which eventually leads to fostering of industries and incorporation ofoverseas demands.
○ Enhancing the dissemination of information
・ The government will acquire empathy and participation fromforeigners and promote the development of superior "human capital”
that supports Cool Japan by effectively transmitting “Japan’s
attraction” at main international conferences and events, etc. in
conjunction with food, Japanese alcoholic beverages, fashion,
manufacturing, content, traditional culture, etc. in accordance with- 135 -

Provisional“the Action Plan” developed based on proposals, etc. in “Cool Japan
Promotion Council.”○ Strategically promoting Cool Japan by using the Japan Brand Fund
(tentative)
・ The government will strategically promote Cool Japan by establishing
the Japan Brand Fund (tentative) to industrialize “Japan’s attraction”
and supplying risk money.
○ Promoting overseas deployment of content, etc.
・ The government will triple the overseas sales of broadcast contents
by 2018 from the current level (6.3 billion yen) .
・ The government will establish a one-stop contact point for facilitating
the rights management of content (by strengthening the functions of
the audiovisual Rights management association (aRma), etc.) andpromote agreements on rights contracting management to obtain in
advance authorization including broadcasting overseas. Along with
that, it will establish a one-stop contact point to centralize rightinformation management, rights management, and transmission of
information by enhancing the function of Japacon, content information
portal website and will promote agreements on rights contracting
management including overseas deployment.
・ Centering on the Japan Brand Fund (tentative) and the secretariat of
the Project for Localization & Promotion of Japanese Visual Media(J-LOP) etc., the government will fully support localization of content(dealing with caption, dubbing, local content regulations, etc.),enhance support for creating overseas content including large scale
support for joint international creation with overseas broadcastingstations in accordance with local needs in anticipation of futurebusiness deployment, enhance promotional activities for overseas
markets, fundamentally strengthen measures against IP piracy, andsecure distribution channels for Japanese content such as channels,
airtime and distribution websites of overseas broadcasting stations.
○ Deploying Japanese food and food culture overseas and promoting
export of Japanese alcoholic beverages
・ Expanding the export of agricultural, forestry and fishery products andfood produce [reposted]
・ The government will aim to ensure that the rate of increase in export- 136 -

Provisionalof Japanese alcoholic beverages exceeds the one in export ofagricultural, forestry and fishery products and food produce by 2020,
and take initiatives to transmit information through international events,
diplomatic receptions and dinners, main international airports,“Sakagura tourism”, etc. It will develop overseas markets byconducting effective business meetings linked to Japanese food, andaim for increasing export under the cooperation between the public
and private sectors. Therefore, it will encourage the improvement ofcomprehensive export environment by using “Inter-Ministry/Agency
Coordination Committee for Promoting Export of Japanese Alcoholic
Beverages.”○ Strengthening systems of global communications
・ The government will enhance global communication activities
including sharing public affairs opportunities and contents of eachministry and agency about policies and measures such as Cool Japan,
Visit Japan, and Invest Japan by fully utilizing “The Liaison Meeting on
Enhancing Global Communication” which has been held since thisApril for the purpose of enhancing global communication activities by
the government as a whole.
○ Cross-sectional planning and implementation of Visit Japan
Promotion by relevant ministries, agencies and institutions[reposted]
3. Improving infrastructure concerning funds and human resources to support our
economic growth
The government will develop an environment where all companies and humanresources enjoy the benefits of global economy and facilitate full-fledged
globalization in Japan in order to attract outstanding overseas manpower andtechnologies to Japan and to create employment and innovation. It will also aim todouble inward FDI stocks to 35 trillion yen in 2020 (17.8 trillion yen at the end of2012).
In addition, it will promote fostering and use of a big pool of global humanresources and active acceptance of highly skilled human resources from overseas tosupport unified domestic and foreign global economic activities by our companies.
(1) Activating inward direct investment○ Fundamental reform of Special Zone system
・ The government will create the world’s best business environment for- 137 -

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companies to operate using “National Strategic Special Zones” tofurther attract foreign funds and technologies. These environmental
improvements will encourage Japanese-affiliated companies
transferred overseas to return back to Japan.
○ Drastically strengthening the government’s capability for attracting
foreign companies and its support framework
・ In order to identify and attract promising foreign companies from theperspective of their executives and in alignment with their specificbusiness strategies, the government will strengthen the function of
JETRO’s industry specialist function and develop support measures
for global companies.
・ JETRO will enhance its comprehensive support system for foreign
enterprises, such as receiving inquiries and giving consultation
regarding procedures required for FDI into Japan, receiving requests
for regulatory reform and giving assistance on individual case incooperation with relevant ministries and agencies.
○ Creating and reinforcing the framework to attract more international
conferences, etc. (MICE) [reposted]○ Utilizing highly skilled overseas personnel [reposted](2) Strengthening human resources capabilities for global operation activities[reposted]- 138 -