202

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure

Section 2
Expectations for Kansai’s Industrial Structure:
Attracting Investment and Human Resources
TERADA, Kenji; INADA, Yoshihisa

1. Identification of industries with new strengths
In Section 2, based on the analysis in Section 1, strategies for attracting investment and human resources are discussed, and industries that will become newstrengths in the Kansai region are considered.
What is important in this process is the perspective of “sustainable development” of the Kansai economy, and based on this viewpoint, it is necessary to
work on the development of industries that can solve global challenges.
For example, the Osaka-Kansai Expo will focus on long-term, global issues
such as carbon neutrality and the SDGs. This section therefore attempts to
identify “industries that will become new strengths” of the Kansai region byreferring to these issues.
(1) Desirable Industrial Structure of Kansai[1] Problem-solving businessIn order to achieve sustainable development, it is important to focus on areasthat are considered long-term and global challenges and to solve those challenges as a business-based practice.
As for long-term global issues, in addition to “carbon neutrality” with atarget year of 2050, “SDGs” has a target year of 2030.
If we look at the SDGs, common issues include “climate change,” “energy,”“health and welfare,” “food,” “disaster,” “population,” “poverty,” “peace,” and“education” (left side in Table 3-2-1).
On the other hand, the “Future Society Showcase Project1)” to be held at
the Osaka-Kansai Expo is attracting worldwide attention. If these projects are
conducted on a business-base and lead to solutions to problems, they will contribute to the sustainable development of the Kansai economy (right side in
Table 3-2-1).
Comparing long-term and global issues with the themes to be demonstrated
1) The Expo site will be regarded as a showcase in the society of the future, and the project
aims to realize a part of the future society by introducing advanced technologies and systems.

Section 2 / Expectations for Kansai’s Industrial Structure: Attracting Investment and Human Resources

Table 3-2-1

Long-term and global issues compared with demonstration
projects at the Osaka-Kansai Expo
Osaka-Kansai Expo
Future Society Showcase ProjectLong-term and global challenges
Carbon Neutral

203

Green (Carbon Neutral)

Future Life (Food and Agriculture)

Disaster

Future Life (Urban & Residential)

Population

Smart Mobility

Poverty

DigitalPeace

Virtual

Education, etc.

Art, etc.

Source: Right side of the Table is based on the “Future Society Showcase Project” prepared by the Japan Association for the 2025 World Exposition.

at the Osaka-Kansai Expo, “carbon neutrality,” “energy,” “healthcare,” and “food”
are corresponding promising problem-solving business fields.
[2] Osaka-Kansai Expo Themes and Problem-Solving Businesses
In the previous subsection, we listed promising problem-solving business fields
for the Kansai region, and in this subsection, we will look at them again referring
to more concrete businesses.
On December 24, 2021, the Japanese government released the “OsakaKansai Expo 2025 Action Plan Ver. 1” to help realize the concept of the
Osaka-Kansai Expo as a “People’s living lab,” in which the Action Plan includes
demonstration projects in a variety of fields. In preparation for the Action Plan
(Ver. 4) to be released in June 2023, the local Kansai governments, the businesssociety, and the Expo Association jointly requested the Japanese government toprioritize promotion and financial support for the host city. Table 3-2-2 lists therequested topics by area.
Table 3-2-2 includes promising problem-solving businesses such as carbon
neutrality, which was discussed in the previous subsection. The table lists “thedevelopment and practical implementation of storage batteries, hydrogen, CO2
capture, and next-generation solar cells.” In life science and healthcare, actual
projects include “industrialization of regenerative medicine using iPS cells andhuman somatic stem cells” and “promotion creating next-generation healthcare
services toward the realization of a society with longevity and good health.”

Part Ⅱ

Future Life (Healthcare)

Food (Zero Hunger)

Part Ⅲ

Green (Energy)

Health & Wellness

Part Ⅳ

EnergyPart Ⅰ

Climate Change

204

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure

Table 3-2-2

Osaka-Kansai Expo-related projects requested of the Japanese government bylocal governments, business society, and the Expo Association in the Kansai region

Areas related to
Osaka-Kansai Expo
Action Plan Ver. 4

Major Osaka-Kansai Expo-related projects requested by the Japanese
government, the business society, and the Expo Association in the
Kansai region

Realization of carbon
neutrality and the“Osaka Blue Ocean
Vision”

Development and practical implementation of storage batteries, hydrogen, CO2 capture, next-generation solar cells, etc.
Acceleration of behavioral change among businesses and local residents
Realization of the “Osaka Blue Ocean Vision”

Industrialization of regenerative medicine using iPS cells and human
Promoting life sciencesomatic stem cells
and next-generation
Promotion of creating next-generation healthcare services toward thehealthcare
realization of a healthy and long-lived society.
Realization of “smart
cities” using advanced
technology and creation of startups

Realization of smart cities using cutting-edge technology (promotion of“Yumeshima Construction” etc.)
Utilization of digital ID and digital Local Currency
Social implementation of “Common Ground,” a next-generation urban
spatial information platform
Creation and development of startups

Promoting Smart
Mobility

Realization of commercial operation of flying cars at the Expo
Realization of automatic driving in the Expo site and on roads to theExpo site
Provision of stress-free mobility services (MaaS) in the wide Kansai region.
Utilization of zero-emission mobility (EV/FC buses, EV/FC boats) toaccess the Expo site.

Creation and dissemination of diverse
attractions andpromotion of further
communication

Creation and dissemination of Osaka/Kansai’s urban attractions
Construction of water transportation network
Utilization of urban space to communicate and experience the attractions of Osaka and the Kansai region.
Establishment and operation of Kansai Pavilion
International cultural exchange and promotion of culture and arts

Creating a welcoming environment for
visitors

Promotion of the use of universal design taxis
Improvement of Kansai International Airport’s Acceptance Capacity
Creation of an environment respecting the diversity of foodNote: Areas in red are those of long-term and global challenges listed in the previous subsection.
Source: Osaka Prefecture, Osaka City, Union of Kansai Governments, Kansai Chamber of Commerce and Industry, Osaka Chamber of Commerce and Industry, Kansai Association of Corporate Executives, Japan
Association for the 2025 World Exposition (2023), “Requests for Projects Related to the 2025 Japan
International Exposition (Osaka-Kansai Expo) Toward the Revision of the Japanese Government’s ‘2025
Osaka-Kansai Expo Action Plans, Ver 3.0’”[3] Startups and venture companies in Kansai
Table 3-2-3 is based on the list of 1,387 venture businesses in the Kansai region
and the “Survey of Kansai Venture Businesses 2021” published by the Kansai
Bureau of Economy, Trade and Industry (METI-Kansai). As the table shows,
start-ups and venture companies in the Kansai region are concentrated in theareas related to the themes in the Osaka-Kansai Expo.
The table shows that “medical care” is the most common industry, andIT-related services such as “web,” “application,” “platform,” and “system development” are also mainstream (refer to Fukuoka City as a good example of thisindustry concentration; see Box). In addition, “advertisement, “ “marketing,”“food,” and “bio-technology” are also common.

Section 2 / Expectations for Kansai’s Industrial Structure: Attracting Investment and Human Resources

Industries and Number of Companies in Kansai Venture Businesses
Area

Number ofcompanies

Medical care

106 Robot

24 Arts

9

Web

88 Health23 Sightseeing

9

Application

61 IOT

22 Hardware

9

Software51 Semiconductor

21 Data Analysis

7
7Platform

49 Environment

Artificial
20Intelligence (AI)

Human Resource
Services

43 Drug Discovery

20 Education

7

SystemDevelopment

41 Energy

16 Social

7

Advertisement39

16 Inbound6

Marketing

37 Game14 Digital Content

5

Food

37 AR/VR

13 Recycle5

Bio-technology-

34 Agriculture

13 Apparel5

26 Sport

Community
11
revitalization

4

EC

Product
Development

Source: Compiled by the author based on the “List of Kansai Venture Businesses,” Kansai Bureau of Economy,
Trade and Industry (2022)

Box

Trends in Industrial Agglomeration in Fukuoka City

We held an interview with Fukuoka City, which has been successful in attracting
many IT-related service companies, about its success factors (June 23, 2023).
Looking at the topography of the city, it is the only ordinance-designatedcity that has no first-class rivers and is poor in industrial water supply, making
it difficult to build factories. Therefore, since the 1960s, the city has developed its industrial structure mainly in the tertiary industry, and currently thetertiary industry accounts for 91% of the city’s gross regional product (in realterms) (based on the 2021 Basic Economic Census).
The city has a lower probability of earthquakes with seismic intensity of
6 or higher than other large cities. In addition, the proximity of the airport tothe city center is uniquely favorable. This makes the city an ideal geographic
location for companies that value backup functions.
In 2014, the city was selected as a “Special Zone for Global Startups and
Job Creation,” a national strategic zone, and has focused on startups early on,
promoting various initiatives. Since then, 801 companies have been createdobtaining funds totaling JPY36.5 billion. In order to attract companies to thecity, the city has supported the location of 571 companies between 2013 andPart Ⅰ

Number ofcompanies

Part Ⅱ

Area

Part Ⅲ

Number ofcompanies

Area

Part Ⅳ

Table 3-2-3

205

206

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure2022, 58% of which were in the IT and creative industries. Currently, the city
ranks fourth among ordinance-designated cities in terms of the number ofbusiness locations in the information and telecommunications industry. The
concentration of many IT and creative companies in the city has led to theestablishment of many science and technology universities and technical colleges, and this virtuous cycle of matching human resources and companies
has encouraged companies to expand into the local area.
Japan’s first industry-academia-government-affiliated organization specializing in games, the Fukuoka Game Industry Promotion Organization, andan e-sports organization were established ahead of other cities, and the public
and private sectors are working together to develop human resources andpromote the entire industry.
In addition, after the aforementioned approval as a national strategic special zone, the Tenjin district was deregulated in terms of height restriction
under the Civil Aeronautics Act, and tall buildings up to 115 meters high are
now being constructed at a rapid pace. As a result, the city is now able toattract companies more aggressively than ever before, as office space can beincreased or occupy an entire floor due to large-scale developments.
The “Tenjin Big Bang” redevelopment project in the Tenjin area involves
the reconstruction of 70 buildings with an economic impact of JPY850 billion, while the “Hakata Connected” redevelopment project around the Hakata
Station entails the reconstruction of 20 buildings with an economic impact of
JPY500 billion.

(2) What is DX Business?
In Subsection 2.1 (1), we identified possible areas and businesses as promisingindustries in the Kansai region. Subsection 2.1 (2) presents a new perspective
on DX business, which effectively utilizes goods and services and brings diverse
values to the society, in order to link the insight in the previous subsection to
profitable businesses in the future.
According to Onozuka Seishi (2022), DX businesses can be broadly classified into the following four categories, which exercise various effects on thetransaction of goods and services.
(i) Businesses that “expand supply and demand”
Match people who want to offer unused time and space with people
who want to use it.
(ii) Businesses that “create places”
Provide and share goods and services that were never traded.

Section 2 / Expectations for Kansai’s Industrial Structure: Attracting Investment and Human Resources

207

Promisingindustries andbusinesses in Kansai

Figure 3-2-1

×

DX Business＝Businesses as
Kansai's New
Strengths

The method of finding businesses that will become new strengthsof the Kansai region

Source: Prepared by the author

Part Ⅱ
Part ⅢPart Ⅳ(3) Profitable Businesses: Finding businesses that will become newstrengths of the Kansai region
It is difficult for the Kansai economy to escape from long-term stagnation if new
businesses are examined as an extension of existing industry classifications. It
is necessary to develop new businesses based on differing ideas and transformthem into “profitable industries.” We tried to find “profitable businesses” without
relying on existing industrial classifications by combining the problem-solving
businesses and industries in Kansai identified in Subsection 2.1 (1) with the DX
business concept described in Subsection 2.1 (2) (Figure 3-2-1).
This “multiplication” can be done in a variety of combinations. In this report,
we have identified potential new businesses by combining the businesses andindustries discussed in Tables 3-2-2 and 3-2-3 above with DX businesses.
Based on this, “healthy life extension support service,” “support service toincrease the number of tourists,” and “athlete meal catering service” wereidentified as examples of businesses that combine desirable industries and businesses in the Kansai region with DX businesses (Figure 3-2-2).
The business environment is constantly changing, and the pace of change
is expected to accelerate even more. It is therefore necessary to continue discovering new businesses through “multiplication.” As an example of how new
businesses can be found through “multiplication,” the METI-Kansai Greater
EXPO “Let’s Expand Osaka-Kansai EXPO: Recommendations for Expo Activities
Outside the Expo Site, Utilizing the Power (Geographical Advantage) of Hosting
the Expo” is a good reference.
The theme of the report is “Future New Industry Chain,” and it introduces
a conceptual method to the development of new businesses. The concept is not
an extension of industry classification, but rather the combination of existing

Part Ⅰ(iii) Businesses that “eliminate inefficiencies”
Eliminate “tasks that are essentially unnecessary” in transactions ofgoods and services.
(iv) Businesses that “expand profit-earning opportunities”
Utilize data obtained from various media to create new value andexpand profit-earning opportunities.

208

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure

Promising Industries and Businesses in Kansai ×Kansai Expo
Demonstration Project

Venture BusinessClassiﬁcation

DX Business＝Business Examples＝

Healthy Life Extension
Support Services

DX Data

Health care
High-technology

×

Medical/Health
Food

×

Wearable
Device Data

MaaS

×

Platform

×Support Service to increase
Human Flow＝
the number of tourists
Data

Food Diversity

×

Sport
Food

×

Wearable
Device Data

Figure 3-2-2＝

Athlete mealcatering service

Examples of New Business Discovery

Source: Prepared by the author

industries with IT and other fundamental technologies to create a broad rangeof new businesses that have never existed before and that will expand widely.

2. Examination of new developments in existing industries
In Subsection 2.1, we discussed new industries (profitable industries) that cansolve long-term and global issues by taking advantage of Kansai’s strengths.
In order for the industry as a whole to become more profitable, existing
industries must also be transformed into profitable entities. In particular, small
and medium-sized enterprises (SMEs), which account for the majority of all
Japanese companies, need to improve their profitability.
Many SMEs in the Kansai region are manufacturers, and “improving productivity and added value” is critically important for increasing their profits.
Subsection 2.2 introduces some examples of such efforts.
(1) From the Economic Debate
At the “APIR Forum Economic Debate (Kansai Economy)” held in March 2023,
discussions focused on the efforts of SMEs under the theme of “Toward a ShinEconomic Virtuous Circle in the Kansai Region.” Three representatives from
top-level companies in the Kansai region with proven track records of increasing
productivity and added value were invited to discuss the relationship between“increase of productivity and added value” and a “virtuous circle of growth.”(See Figure 3-2-3 for an overview of the forum.) The following is a brief summary of the results obtained from this discussion.
In the discussion session, we first asked whether productivity improvements
have been able to increase wages in SMEs, which account for the overwhelming
share of the manufacturing industry in the Kansai region, and found that they
not only allocate the increased profits generated by productivity improvements

Section 2 / Expectations for Kansai’s Industrial Structure: Attracting Investment and Human Resources

209[Reference] 
APIR Forum, Economic Debate 2022 <Kansai Economy> Theme: Toward a ShinEconomic Virtuous Circle in the Kansai region

to wage increases, but also tend to focus on investment in human resources(reskilling) for the future.
Next, three companies introduced their efforts to “increase productivity
and added value” as follows.
The speakers pointed out that the key points are “improvement of productivity and added value” through DX and premium products, “market globalization,”and “employee reskilling.” Each company seems to be actively working on a
virtuous cycle for their own growth.
<Increasing productivity and added value>
In terms of “increasing productivity and added value,” companies focused on
moving away from being a subcontractor, increasing its independence as a company, and creating a risk tolerance that would not be affected by the fluctuationof the economy. Specifically, they aimed to become a global niche company,
which will be discussed in a later subsection.
<Globalization>
In the area of “globalization,” companies sought to increase their corporate value
and further expand their business in overseas markets, which were expected to
grow even more in the future since domestic demand decreases due to a shrinking population.
<Reskilling >Regarding reskilling, companies worked to expand their business by shifting

Part Ⅱ

Source: Excerpted from Asia Pacific Institute of Research (2023)

Part Ⅲ

Outline of the Economic Debate <Kansai Economy>

Part Ⅳ

Figure 3-2-3Part Ⅰ

March 13, 2023 (Monday) 15:00-16:30
Face-to-face: Grand Front Osaka, North Bldg. Tower C, 8F
Knowledge Capital Conference Room C01 +C02 /Online: Live Webcast via Zoom
Part 1: Keynote Speech “Short-term Outlook for the Kansai Economy”
Hiroaki Irie, Professor, Department of Business and Economics, Kindai University Junior College
2: Discussions (in no particular order)
Ms. Hiroko Kusaba, Representative Director, Seiko SCM Co.
Mr. Takenosuke Yasufuku, President and Representative Director, Kobe Shushinkan Breweries
Co. Mr. Yuki Yamamoto, President and Representative Director, HILLTOP Co.
Moderator: Yoshihisa Inada, Professor Emeritus, Konan University, APIR Research Director/
Directorate and Center for Quantitative Economic Analysis

210

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure

highly skilled craftsmen who became redundant as a result of increased productivity through DX to upstream businesses (design and development) and new
businesses with high productivity.
<Proposals>
Finally, as a result of the discussion toward an economic virtuous circle in the
Kansai region, the following were proposed.
It is important to create an enabling environment in which SMEs can be
independent business entities and become equal partners with large enterprises
in value-added manufacturing.
In addition, it was proposed that mass production and consumption are outdated and that it is important for companies and governments to work together
to actively promote consumption behavior that respects people, society, community, and the environment. In this economic discussion, it was suggested thatlarge corporations and SMEs should work together to create new value-added
products by taking advantage of their respective strengths and by creating
new value-added products with keywords such as “SDGs” and “environment,”
thereby creating a “virtuous cycle of growth” for corporations and ultimately
leading to the realization of an economic virtuous circle in the Kansai region.
(2) Global Niche Perspectives
The “premium products” mentioned in the discussion of “increase of productivity and added value” described in Subsection 2.2 (1), are those that increase
the value of the products and differentiate them from other products, and canincrease profitability through high profit margins even without increasing sales
volume.
On the other hand, by occupying an overwhelming share, even if it is only
a part of the supply chain, a company can minimize the impact of price competition and increase profitability. From this perspective, a new development could
be the pursuit of “global niche” products that leverage company strengths.
The Ministry of Economy, Trade and Industry (METI) selected 113 companies for the “2020 Global Niche Top 100 Companies),” which selects companies
that are succeeding in niche fields in the global market and excellent companies
with enterprises such as functional-materials that are becoming increasingly
important in the supply chain amid the changing international situation.
(Hereafter, global niche top 100 companies are referred to GNTs.) Of these,
27 were located in the Kansai region (see Reference Table 3-2-1 below).
The net profit margins (FY 2019 and beyond) of SMEs in the Kansai GNT
show that many companies have remained stable and profitable during the FY

211Section 2 / Expectations for Kansai’s Industrial Structure: Attracting Investment and Human Resources

FY 2019

FY 2020

FY 2021

FY 2022

4.7%

0.6%

5.2%

4.6%

Okamura Engineering Co.

10.3%

6.5%

8.6%

10.1%

Futa-Q Co.

0.2%

2.0%

2.6%

2.3%

Nabel Co.

1.6%

18.0%

18.7%

14.9%

Kataoka Co.

1.2%

1.0%

0.8%

1.3%

Riko Float Technology Co.

13.5%

13.7%

-2.1%

35.0%

Fukui Seisakusho Co.

12.3%

11.0%

12.8%

7.1%

Itoh Denki Co.

11.2%

9.1%

14.9%

17.4%

Shiraishi Kogyo Kaisha Co.

2.2%

2.4%

3.5%

3.3%

Kohoku Kogyo Co.

18.4%

24.0%

38.8%

35.8%

Optex, Co.

11.2%

7.5%

16.0%

13.0%

Figaro Engineering Co.

9.2%

4.6%

7.6%

15.4%

Patlite Co.

7.4%

3.6%

4.4%

5.1%

Note: Calculated based on public information of each company and data from Teikoku Databank and Tokyo
Shoko Research. Shaded years are the three fiscal years during the COVID-19 pandemic.
Source: Ministry of Economy, Trade, and Industry (2020), “The 100 Top Global Niche Companies in 2020.”

1. Concentrate on the core business as GNT andavoid careless entry into other areas.
2. Leverage core technologies toexpand into other areas.
3. Increase core technologies andexpand into other areas.
4. Focus on long-term relationships with major corporate
customers and do not increase customers easily.
5. Expand business with new customers and build a business structurethat is not inﬂuenced by the management of buyers.
6. Others

28.3%
69.0%
45.1%
8.0%
54.9%
4.4%
(Multiple answers allowed)

Figure 3-2-4Strategies to be taken by GNT

Source: Ministry of Economy, Trade and Industry (2020) “2020 Global Top 100 Niche Companies.”

Part Ⅱ

Company Name
Nisshin Kogyo Co.

Part Ⅲ

Performance of SMEs as global niche in the Kansai region (Ratioof net income to net sales)

Part Ⅳ

Table 3-2-4Part Ⅰ

2020-22 COVID-19 pandemic (Table 3-2-4).
According to the results of the interview survey conducted on GNT companies selected by METI, many of the interviewees responded that the strategy
they should take is to “utilize their core technologies to expand into other fields”
and “expand transactions with new customers and build a business structurethat is not influenced by the management of the buyers to whom they deliver
their products” (Figure 3-2-4).
In this way, SMEs can ensure business stability by creating global niche
products that take advantage of their strengths, and can also look to develop

212

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure

new businesses that utilize their technologies. This could also lead to the creation of a virtuous growth cycle as a company.

3. Summary
The key points of the “Expected Industrial Structure of Kansai” discussed in
Section 2 can be summarized as follows.
(1) To find industries that will become new strengths, we looked at businesses and industries such as “carbon neutral” and “healthcare” as promisingindustries in the Kansai region, based on the theme of the Osaka-Kansai Expoand from the perspective of problem-solving businesses. In addition, we classified startups and venture companies in Kansai and identified “profitablebusinesses” by combining them with DX businesses.
(2) To scrutinize potential new development of existing industries, many
SMEs in the Kansai region are in the manufacturing industry, and “increasing
productivity and added value” is critically important to improving their profitability. In the discussion in this economic debate, the key points were “increasing
productivity and added value” through DX and premium products, “market
globalization,” and “reskilling of employees.” In addition, creating global niche
products that leverage the company’s strengths also leads to a virtuous cycle ofcorporate growth.
References
Asia Pacific Institute of Research (2023), “APIR Symposium Economic
Debate Report 2022,” (https://www.apir.or.jp/wp/wp-content/uploads/
apir_Economic_Debate_2022.pdf, last viewed on July 4, 2023).
Cabinet Secretariat (2023), “2025 Osaka-Kansai Expo Action Plan Ver. 4,”(https://www.cas.go.jp/jp/seisaku/expo_suisin_honbu/pdf/Action_Plan_
Ver.4.pdf, last viewed July 4, 2023)
Japan Association for the 2025 World Exposition (2023), “Future Society Showcase Project,” (https://www.expo2025.or.jp/sponsorship/#sec03, lastviewed on July 4, 2023)
Kansai Bureau of Economy, Trade and Industry (2022), “List of Kansai Venture Businesses” (December 9, 2022 edition), (https://www.kansai.meti.
go.jp/3-3shinki/supporters/181129venturelist.html, last viewed on March
31, 2023).
Kansai Bureau of Economy, Trade and Industry, 2025 NEXT Kansai Planning
Office (2023), “Let’s Extend Osaka-Kansai Expo: Recommendations for
Expo Activities Outside the Expo Site, Utilizing the Power (GeographicalPart Ⅱ
Part Ⅲ

Advantage) of Hosting the Expo,” (Japanese title: Osaka-Kansai Banpaku
wo Kakucho Shiyo ~Banpaku Kaisai no Pawa [Chinori] wo Ikasita Banpaku
Renkei Kaijogai Katsudo no Susume~).
Ministry of Economy, Trade and Industry (2020), “The 100 Top Global Niche
Companies,” (https://www.meti.go.jp/policy/mono_info_service/mono/
gnt100/index.html, last viewed on March 31, 2023).
Onozuka, S. (2022), “DX Business Models: Learning from 80 Cases ofAggressive Strategies to Generate Profits (Dekiru Business),” (Japanese
title: DX Bijinesu Moderu 80 Jirei ni Manabu Rieki wo Umidasu Seme no
Senryaku [Dekiru Bijinesu]).
Osaka Prefecture, Osaka City, Union of Kansai Governments, Kansai Economic
Federation, Osaka Chamber of Commerce and Industry, Kansai Associationof Corporate Executives, Japan Association for the 2025 Osaka-Kansai Expo
(2023), “Requests for Projects Related to the 2025 Japan International Exposition (Osaka-Kansai Expo,) Toward Revision of the Government’s ‘2025
Osaka-Kansai Expo Action Plan Ver. 3,’” (https://www.pref.osaka.lg.jp/
attach/205/00454661/230706.pdf, last viewed on July 4, 2023).
Yamamoto, Y. (2021), “Five Technologies to Change the World: The Frontiers of
SDGs and ESG,” (Japanese title: Sekai wo Kaeru 5tsu no Tekunoroji -SDGs,
ESG no Saizensen-).

Part Ⅰ

213

Part Ⅳ

Section 2 / Expectations for Kansai’s Industrial Structure: Attracting Investment and Human Resources

214

Chapter 3 / Exploring Kansai’s Profitable Industrial Structure

Reference Figure 3-2-1
SectorMachinery &Processing

Materials &ChemicalsElectricity &Electronics

List of Kansai Companies Selected as One of the Top 100
Global Niche Companies in 2020

Company Name

Location

Business
Scale

Global niche top products and services

NIDEC MACHINE
TOOL, Co.

Shiga
Pref.

Large
enterprise

Gear machine tools (hobbing machines, gear shaping machines,
shaving machines, gear grinding machines)

HORIZON Inc.

Shiga
Pref.

Second-tiercompany

4-Clamp automatic radio binding machine BQ-480

SME

Stainless steel caps and cases for lithium-ion coin batteries,
cases for automotive ABS solenoid valves

Nisshin Kogyo Co.

Shiga
Pref.

OkamuraEngineering, Co.

Shiga
Pref.

SME

Butterfly valve for marine exhaust gas treatment equipment

Ishida Co.

Kyoto
Pref.

Large
enterprise

Automatic weighing and packaging valuing machine (WM-AI
Super, Dtop-UNI, Wmini-UNI)

Kanken Techno
Co.

Kyoto
Pref.

Second-tiercompany

Semiconductor manufacturing exhaust gas abatement equipment

FUTA-Q Co.

Kyoto
Pref.

SME

6 mm or less inner small-diameter pipes made of beta-titanium
alloy

Nabel Corporation

Kyoto
Pref.

SME

Automatic chicken egg washing, sorting and packaging machine

Kataoka Co.

Kyoto
Pref.

SME

Charge-discharge inspection equipment for lithium-ion secondary
batteries

Torishima Pump
Mfg. Co.

Osaka
Pref.

Large
enterprise

Large pumps for desalination plants

Riko Float
Technology Co.

Osaka
Pref.

SME

Floats for industrial

Fukui Seisakusho
Co.

Osaka
Pref.

SME

Safety valves for LNG carriers

Kanzaki Kokyukoki
Mfg. Co.

Hyogo
Pref.

Large
enterpriseWorld standardized integrated hydraulic continuously variable
speed axle drive (IHT)

Kawasaki Heavy
Industries, Ltd.

Hyogo
Pref.

Large
enterprise

Gearbox products for aviation

Ito Denki Co.

Hyogo
Pref.

SME

Motor rollers for conveyor drive

JTEC Corporation

Osaka
Pref.

Second-tiercompany

X-ray mirrors for synchrotron radiation used in large synchrotron
radiation facilities and X-ray free electron laser facilities

Daiichi KIGENSOKAGAKU KOGYO.
Co.

Osaka
Pref.

Second-tiercompany

Materials for automotive exhaust gas purification catalysts

Shiraishi Kogyo
Kaisha. Co.

Osaka
Pref.

SME

Calcium carbonate for sealant and adhesive industry

Osaka Titanium
Technologies Co.

Hyogo
Pref.

Large
enterpriseSponge titanium

Kohoku Kogyo Co.

Shiga
Pref.

SME

Highly reliable optical device for submarine cable

Optex Co

Shiga
Pref.

SME

Automatic door sensor

SCREEN Graphic
Solutions Inc.

Kyoto
Pref.

Large
enterprise

Roll-type high-speed full-color inkjet printing press

ESPEC Corporation

Osaka
Pref.

Large
enterprise

Environmental testing equipment that artificially reproduces environmental factors such as temperature, humidity, and pressure
to ensure the reliability of industrial products.

Tayca Corporation

Osaka
Pref.

Large
enterprise

Ceramic transducer for medical ultrasound imaging

FigaroEngineering Co.

Osaka
Pref.

SME

Carbon monoxide (CO) gas sensor

Patlite Corporation

Osaka
Pref.

SME

Audible & Visual Signaling Devices

Furuno Electric Co.

Hyogo
Pref.

Large
enterprise

Radar for Merchant Marine

Source: Ministry of Economy, Trade and Industry (2020), quoted from the “2020 Global Top 100 Niche Companies.”