COVER STORY • The Future of Space as Global Commons • 6

Recent Trends in Japan’s Space
Policy — Centered on
Promoting the Space Industry

By Hidekazu Takakura

Introduction
International circumstances in the space realm are currently
undergoing major developments. In the United States, President
Donald Trump has resurrected the National Space Council after a
29-year hiatus, while NASA has released its Lunar Orbital Platform
Gateway outpost near the Moon. With Europe’s Moon Village planand Chinese President Xi Jinping declaring that China will become a“global space giant”, each nation is scrambling to venture into space.
Against this backdrop, the development and utilization of space inrecent years has been characterized by a transition from state-led
projects to private business, with private sector vitality — largely
composed of venture companies from the US — spearheading
innovation.
This trend is exemplified by venture companies providing rocketlaunching services that have dramatically curtailed costs by reusing
certain components, and the emergence of low-price compact-sizedsatellites, which have ushered in venture companies planning
satellite constellations by launching multiple satellites into orbit. Thisin turn spawns a rapid expansion of new businesses based on using
AI to process the wealth of satellite data provided courtesy of thesenano-satellites.
Amid such a rapidly changing international landscape, Japan is
also steadily pursuing its own space policy, and in order not to trail
behind others it is more crucial than ever before to promote thedevelopment and utilization of space as well as the space industry.
Japan will pursue its space policy based upon the Basic Plan on
Space Policy and its operational schedule (determined by theStrategic Headquarters for National Space Policy in January 2015,
approved by the Cabinet in April 2016) which hinges on the threepillars of guaranteeing space security, promotion of space utilizationin the commercial sphere, and bolstering/maintaining the foundation
for industry, science and technology.
In particular, with regard to the commercial sphere, in May 2017
the Committee on the National Space Policy released its “Space
Industry Vision 2030”, based upon which it will promote a raft ofinitiatives.
Concretely, this will involve promoting the open and freeavailability of government satellite data with a view to improving
overall access to satellite data, which, alongside space utilization
model verification enterprises, will expedite the creation of leadingedge utilization precedents of satellite data. Furthermore, as seen in
24 Japan SPOTLIGHT • July / August 2018

Author
Hidekazu Takakura

the holding of “S-Booster 2017” — a business idea contest that is a
first in the space sector — and the furnishing of risk money by theDevelopment Bank of Japan (DBJ) and the Innovation Network
Corporation of Japan (INCJ), initiatives are afoot towards expanding
the horizons of space-related businesses.
Last year saw the successive and successful launches of QuaziZenith Satellites 2, 3, and 4 in June, August and October,establishing the 4-pronged QZS system. Concurrently, from
November of this year Japan is carrying out the final adjustment ofsatellite signals with the aim of commencing a world-class highprecision positioning service.
Coupled with these advances, the effectuation of two space-related
laws in 2016 (“Act Regarding Launching and Control of Satellites”
and “Act on Ensuring Appropriate Handling of Satellite Remote
Sensing Data”) paved the way for the apparatus for promoting thespace industry.
With the situation vis-à-vis space changing rapidly both at home
and away, there is a need to promote an ever more powerful spacepolicy. This paper will mainly focus on initiatives geared towards
promoting the space agency, which is increasingly effervescent in
the last few years.

Space Industry Vision 2030
In May 2017, the Space Industry Vision 2030 (hereafter “Vision”)
was mapped out, following 12 rounds of deliberations by the Panelon Space Industry Promotion, which falls under the Subcommitteeon Space Industry/Subcommittee on Space Research Development.
The Vision positions the space industry as the frontier forconstructing the driving force and growth industries that will
advance the Fourth Industrial Revolution. It also ushers in the dawnof a new paradigm shift for the space industry marked by innovationin space technology, the fusion of big data, AI and IoT, as well as
lower costs through increasingly compact satellites and rockets. By
early 2030, the Vision aims to have doubled the overall spaceindustry market size (currently 1.2 trillion yen) including the space
utilization industry. Towards this goal, it is laying the foundations
upon which to construct the space utilization industry, spaceequipment industry, and for overseas expansion and businessenvironment in anticipation of new types of space business —encompassing the current status quo, issues and countermeasuresfor each of these domains (Chart 1).
https://www.jef.or.jp/journal/

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CHART 1

Overview of the Space Industry Vision 2030
u Space industry provides driving force to advance Fourth Industrial Revolution. As well as enhancing productivity in other industries, itis the frontier for constructing growth industries.
u Innovation of space technology and binding of innovation through big data/AI/IoT.
u Through expanding role of private sector, aiming to double scale of overall space industry (currently 1.2 trillion yen) including space
utilization industry by early 2030s.

Space Utilization Industry
Issuesu Continuity of satellite data lacking, channels for acquisition
are confusing.
u Satellite data solution businesses have not gotten off theground.
u Lack of steady demand until businesses get off the ground
Countermeasures

1. Improving access to satellite data

2. Encourage the use and application of satellite data
Promoting model businesses• AI/big data analysis and application of its humanresources• Create new application case examples that meld
satellite data from remote sensing satellites andquasi-zenith satellites etc. with ground data
• Linkages with potential users such as government
ministries and local governments, toward expanded
usage and industrialization
End Users

Government/
Private Operators Local Governments Related Organs Overseas Users
User Needs

Disaster Response

Traffic/Distribution

Database
Foundational Data
Integration

Traffic Information

ClimateRiver
Land Usage
Prediction
Information
Meteorological
Disaster Management
Information
Information
Infrastructure
Information

Data Pooled Analysis
Big Data Processing
Deep Machine Learningu Need to bolster global competitive edge (technologicaldevelopment, track record, cost etc.)u High hurdles to new entrants in technical aspects
2015 Basic Plan on Space Policy includes intention to:“In ten years, take scale of Japan’ s spacecraf t
industry to a cumulative total of 5 trillion yen forgovernment/private sector combined.”

1. Ensuring Global Competitive Edge
Continuous Satellite Development (Serialize)• Continuous development aligned to market needs
Development/promotion of new type mainstay rocket(H3)• Halving of costs and shrinking manufacturing period
Promoting technical strategy for parts/components• Selection/development of key parts/components
I mp r ovin g p r o c ur e m e nt sys te m /s t r e n g t h e nin gtechnological development support
Research

Industrialization• Engage by having a technical strategy• Setting of development/numerical goals
including cost reduction etc.

Technologicaldevelopment

Agriculture and Forestry

Ocean Management

Environmental
Information
FarmlandInformation
Soil
Information

Fishing Ground
Information
Shipping
Information
MarineResources

Ground Data etc.
Various Satellite Data (Raw Data)
Map/Ocean Map/Topographical Map etc.

Overseas Expansion
Issuesu Strategic initiatives that are aware of stage of developmentof partner countries, strengthening international linkages
u Deliberation/promotion of long-term/ongoing strategies
Countermeasures

Composition/bolstering of packages in line withneeds of partner countries• Close linkage with Strategic Committee on Infrastructure& Economic Cooperation, putting together/strengthening
packages including equipment and services, personnel
development etc.
Promoting international linkages• Developing high-precision positioning services geared
towards Asia and Oceania, using quasi-zenith satellites.
・Stronger linkages with APRSAF*1, ERIA*2, NASA and DLRConstructing function for coordinating continuous support
・Establish project managers, continuously and proactively
promote projects*1. Asia-Pacific Regional Space Agency Forum*2. Economic Research Institute for ASEAN and East Asia

Improving Business Environment in Anticipationof New Types of Space Business
IssuesContinuous technical development/verificationin response to market needs
Practical use

Verification

OverseasdemandDomestic satellites as base load (broadcast satellites,
positioning satellites, remote sensing satellites etc.)

2. Support for new entrants
Apps Climate/Weather

Discovering needs
Solving Issues

Providing Common
Information
Higher-order Information
Processing

IssuesCountermeasures

Improving environment conducive to promoting
usage of satellite data
• Listing up types of satellite data, storage location etc.
In future, add data utilization methods. Bolster data
continuity.
• Provisions of data utilization hubs (data centers)
Promotion of open and free government satellite data
• Enable usage of satellite data by venture companies,
encourage business creation

Solution Service
Business Operators

Space Equipment Industry

Full provision of space orbit demonstration opportunities• Full provision of demonstration opportunities andcreation of one-stop ser vice for related suppor tmeasures
Provision of launch sites for small-scale rockets• Es t a b li s h i n g gui d el i n es , s ur vey mar ket t ren d s
including venture trends for small-scale rockets

u Lack of risk money, new entrant strata is faintu Other countries are enacting laws in anticipation of new
business
Countermeasures
Inducement/promotion of new ideas and businesses• Bolster supply of risk money• Hold ideas contests and support for industrialization(S-NET etc.)
Put in place system corresponding to new business• Consider response measures for orbit indemnificationand space resource exploration

Project
Ideas

S-Booster(Business Idea
Contest)Space Awards

Follow-up

Commercialization(support forcommercialization)(Prime Minister’s Award + Minister’s Awards(8 Ministries)

Source: Cabinet Office of Japan

A key tenet of the Vision is that instead of focusing solely on thespacecraft industry such as manufacturing of rockets and satellites,
it also purports to drive forward the use and application of satellite
data including remote sensing and positioning information.
There are two points in the background to this that are closely
related: improved image frequency of satellite remote sensing, andthe innovation of analytical technology including AI. The former isrooted in the fact that thanks to the emergence of small-size
satellites that are cheaper than ever, it is now possible to launch
multiple satellites into orbit (so-called constellations). Sending
satellites into orbit en masse makes it possible to capture images ofthe same place on Earth with better frequency — for example, once a

day — allowing observation of changes that could not be abstractedusing traditional satellite data. Meanwhile, although the amount ofdata has enlarged significantly, recent strides in AI processing
technology mean that instead of humans analyzing satellite data
point by point, processing can be done automatically, which heralds
the creation of added-value hitherto unknown.
For example, venture companies in the US are using AI to process
massive amounts of satellite data captured by nano-satellites, inorder to analyze the number of cars parked in a supermarket car parkand oil stockpiles from the shadows reflected on oil tanks. In turn, by
providing this information to investors, they are improving theirbottom line. In Japan also, various initiatives are in the pipeline
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based on the Vision, in order to create innovative businesses one
after another by using satellite date in this manner.

Improving Access to Satellite Data
Promoting the use and application of satellite data rests primarily
upon improving access to satellite data. To begin with, there is abasic lack of information for those who have never made use ofsatellite data before, such as what kind of data can be used, whether
it is free or not, and where they can get hold of it. Pursuant toproviding such information in a package, in July 2017 the Japan
Aerospace Exploration Agency (JAXA) released a remote sensing
catalogue that bundles together basic information related to thevarious types of remote sensing data that exist in Japan andoverseas. By referencing this catalogue, IT businesses and others
who have never dealt with satellite data before should be empowered
to start thinking about how to use and apply satellite data.
On another front, toward improved access to satellite data, it willbe crucial to proactively promote open and free usage of government
satellite data and to improve the environment conducive to handling
it. At present, satellite remote sensing data that can be used in Japanis largely that obtainable from satellites operated by governmentorgans such as JAXA. Meanwhile, due to the fact that the processing
to render satellite data easy-to-use for industry requires a certain
level of cost, satellite data is not open and freely available foranybody to use, and this is an issue that requires surmounting if theindustrial usage of satellite data is to pick up speed. Similarly, it isoften the case that ordinary computers cannot process satellite datain terms of computer resources, storage and software environments,
highlighting the need to provide the basic platform conducive toutilizing satellite data.
Toward resolving these issues, from the current fiscal year the
Ministry of Economy, Trade and Industry (METI) has joined forces
with the Ministry of Education, Culture, Sports, Science andTechnology (MEXT) and JAXA to lay the foundations for making
government satellite data open and free as well as providing aplatform for its utilization.
From this fiscal year, as well as the unified and free usage ofgovernment satellite data, METI is dedicated to developing andconsolidating a user-friendly data platform equipped with AI andother analytical tools, with the intention of launching operation of a
prototype by the end of the current fiscal year. Provision of such aplatform is expected to be conducive to the widespread utilization ofsatellite data across various domains.

Creating Precedents for Advanced Utilization
The promotion of use and application of satellite data relies upon
promoting the creation of precedents for advanced utilization, andthrough proactively sending out information about these usage
examples to widely promulgate them into society.
26 Japan SPOTLIGHT • July / August 2018

The Cabinet Office, from the previous fiscal year, has carried out
demonstration projects regarding advanced usage models forsatellite data. These projects involve demonstrating advanced use
models for satellite data such as satellite remote sensing andpositioning information, purporting to verify their effectiveness. Suchprojects are based on the condition that demonstrations are
conducted by a team composed of the party providing a service
using satellite data, and a counterparty who will actually be making
use of that service in their business. The aim is that appropriatelyreflecting real actual needs into the usage model of the satellite data
being verified will lead to resolving issues on the end-user side,creating genuinely useful services. Furthermore, it is anticipated that
demonstrations will combine satellite data with other kinds of grounddata, and that demonstration teams will not only feature parties
already working in the space realm, but will also bring in entities
from outside the space realm such as IT businesses.
The last fiscal year saw 25 applications, and seven case examples
were adopted. These were diverse case examples spanning the fields
of agriculture, disaster management and sports, setting the scene forsatellite data to be applied across a broad spectrum. This project willcontinue to run for the current fiscal year, with high hopes for the
spawning of cutting-edge usage examples of satellite data that havenever been seen before.

New Space Businesses — S-Booster
So far I have introduced the promotion of the space industry
focusing on initiatives designed to promote the use and applicationof satellite data. From here, I will focus on initiatives for encouraging
the creating of new businesses by venture companies (Chart 2).
One of these is “S-Booster”, the space industry’s first everbusiness idea contest, newly launched last fiscal year. This enterprisesolicits business ideas from various entities, with the aim of turningup new space businesses. In the previous fiscal year there were over
300 entries during the approximately one-month application period.
Those that passed the initial screening receive mentoring from anexpert, in order to polish them up towards commercial viability. At
the final selection event held on Oct. 30 last year, 15 finalists
presented their ideas to investors; live streamed on the Internet, it
drew in over 13,000 viewers. Last year, the top prize went to abusiness idea tendered by an individual working for an airline, which
involved using three-dimensional wind speed data obtained fromsatellites to calculate the optimal flight path and altitude for airlines.
The idea is that by relaying such information to airlines in mid-flight,
it is possible to greatly improve fuel efficiency and dramaticallycurtail costs. This idea stood out in that it came from the user’s lineof vision, born from the needs of a business that the entrant isinvolved in on a daily business (Photo 1).
S-Booster 2018 is underway, and there are high hopes for aplethora of ideas to emerge during the current fiscal year.

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CHART 2

Overview of support during growth phase of space ventures
Exit

Corporate value (market value)
Support geared towards expanding supply of risk money

Investor matching website(S-Matching)
Matching of individuals who havebusiness ideas
with ventures/investors(listing, M&A)

Supply of risk money by
government-related organs
Supply of risk money
by INCJ, DBJ (financing)

2 space-relatedlaws

New business discovery(S-Booster)Putting in place environment
for smooth business operations

Ideas contest by discovering
ideas, with experts

Space Awards

Commendation of Good PracticeStart-up phase

Growth phase

Space-New Economy Creation
Network (S-NET)

Demonstration projects/technologicalsupport etc.

Networking activities through mixing withother business categories and seminars

Exit

Growth phase

Demonstrating space data usage models
Open and free availability of satellite data
Technical support by JAXA geared towards ventures, etc.

Source: Cabinet Office of Japan

Popularizing the Space Business — Space Awards

record, and instead welcomed applications from new market entrants
such as venture companies. With this in mind, and to break the mold
The Space Awards have been held every other year since fiscal
in terms of existing concepts, adjudication criteria were revised to2014, with the aim of recognizing outstanding cases of best practiceevaluate groundbreaking ideas that set global precedents as well asthat have made major contributions to the promotion of space
initiatives in new domains. Another new facet was the Ministry ofdevelopment and utilization in Japan.
Agriculture, Forestry and Fisheries Award in addition to the existing
The awards for fiscal 2017, held for the third time, were a
10 prize categories, in light of high hopes for the development anddeparture from the existing approach, which focused on track
usage of space in the domains of agriculture, forestry and fisheries.
Entries were publicly recruited from Oct. 2 to
Photo 1: Cabinet Office of Japan
Dec. 11, 2017, and following adjudication anddeliberation by the selection committee, 10
projects were awarded, each by a specificgovernment department. The Prime Minister’sAward went to Prof. Shinichi Nakasuka of Tokyo
University for the Hodoyoshi Project, recognized
for “contributing to the industrialization of
micro-satellites and to international
collaboration”. As well as having a tremendous
impact as a pioneer of the current global trend
for micro-satellites, this project was highly
evaluated as an initiative linked to the creation ofmany venture companies in Japan. It was also
praised for its focusing on popularizing andbringing about public awareness with a view to
S-Booster 2017 — Final Selection Committee photo session
overseas expansion.
Japan SPOTLIGHT • July / August 201827

COVER STORY 6

Photo 2: Prime minister of Japan and his Cabinet website

Prime Minister Shinzo Abe announces new support package.

On March 20, the awards ceremony was held as part of a space
symposium convened by the Cabinet Office, and with Prime Minister
Shinzo Abe in attendance for the first time, winners were presented
with certificates of commendation along with trophies.

Bolstering Provision of Risk Moneyto the Space Business (S-Matching)
In his speech delivered at the Space Symposium, Abe announced
a new support package designed to cultivate space ventures,
including the possibility of providing approximately 100 billion yen inrisk money over the next five years for the space business throughthe public and private sectors, including the DBJ and the INCJ
(Photo 2).
With regard to the provision of risk money in particular, there is an
issue where for the initial start-up phase, while on one hand riskmoney to the tune of several billion yen is required from private
sector investors such as angel investors and venture capitalists,
there are no networks bridging individuals with business ideas andventure companies, nor between investors and industrial companies.
To remedy this state of affairs, the Cabinet Office and METI decided
to create the space business-matching platform (S-Matching). As
well as enabling individuals and companies to directly pitch theirbusiness ideas year-round to investors, this platform makes it
possible for investors to come into contact with a great manybusiness ideas from the stage of their inception. As of the launching
ceremony held on March 20, 46 corporate/individual investors/
industrial companies are onboard, with plans not limited just to riskmoney, but also to roll out initiatives regarding matching of
personnel.

28 Japan SPOTLIGHT • July / August 2018

Improving the Business Environment to Underpin
New Space Business
For Japan, while the effectuation of two space-related laws, as
previously mentioned, laid the legal foundations for promoting thespace industry, in the space domain which changes at a rapid paceventure companies are starting to emerge that are planning businessnot envisioned under the existing framework.
For example, with regard to exploitation of space resources, while
multiple venture companies in Japan and overseas are promoting
initiatives, there are no clear stipulations pertaining to the
exploitation of space resources under treaties regarding principles
for regulating State activities on the probing and usage of outerspace including the Moon and other planets. Meanwhile, the US andLuxembourg, within the scope of international obligations, have put
in place domestic laws stipulating the intention to allow spaceresource exploitation, and are boosting initiatives by companies
planning the exploitation of space resources.
In the coming months and years, while it is anticipated thatcompanies will emerge conducting businesses involving aggressive
action in orbit, this in turn will inevitably usher in the possibility ofsatellites colliding with each other. In anticipation of this, the United
Kingdom and France are preparing a system for providing some levelof government indemnification for payment of damages resulting
from collision accidents between satellites.
Japan will take onboard such trends from home and abroad as it
deliberates how to consolidate the foundations for underpinning its
space business in the coming years.

Conclusion
The modern-day space industry changes at breakneck speed, and
it is thought that the next one or two years will be the proving
ground. With a space industry running the gamut of satellite
manufacture to rocket building and launching services, Japan isalmost peerless. It also boasts venture companies with a competitiveedge and unique business models. In an increasingly competitive
global market environment, there are high expectations forredoubling efforts to promote a space industry where Japan’s
industrial companies can exert an ever-stronger presence and rise to
the top.

Hidekazu Takakura has been director of the National Space Policy Secretariat
at the Cabinet Office since July 2017. He joined the Ministry of International
Trade and Industry (currently METI) in 1992. Since then, he has been in chargeof energy, nuclear power, global environment and local economic realization
issues.