Source: © Toru
Itar Tass,
Hanai,
Reuters.
Reuters.

The Digital Future

Society 5.0
Japanese Ambitions and Initiatives

Franz Waldenberger

48

Facing pressing challenges in demography, politics and society,Japan seeks salvation in a digital future. All aspects of life shallbe interconnected to make life easier. Prime Minister Shinzo
Abe and his government are determined to turn this idea into
reality soon.

Japan’s society is rapidly ageing. Statistics showthat by 2030, 40 per cent of the population willbe 60 years and older. The solution to tackle
the challenges ahead? Technology. The idea of“Society 5.0” emanated from the need to masterthe challenges of digitalisation and connectivity.
Thus far, Japan has introduced a series of initiatives regarding Society 5.0 by different actors,
namely by the Cabinet Office, the Prime Minister, the Ministry of Economy, Trade andIndustry (­METI) and Keidanren, Japan’s leadingbusiness organisation. How these actors and initiatives will be able to shape the future of Japanese society, constitutes an endeavor of crucial
importance.
Japan has the second largest IT sector of all­OECD countries.1 It invests heavily in Information and Communication Technologies (­ICT)
related Research and Development (R&D) and
its IT hardware products are highly competitivein international markets. Japanese researchers made major contributions to “ubiquitous
computing”, while Japan’s telecommunicationindustry took a leading role in the developmentof the mobile internet. The country also boasts
one of the highest penetration rates of mobile
broadband.
However, Japan does not host a vibrant startup
eco-system comparable to Silicon Valley that
seems to provide an ideal testing field whenit comes to exploring the potentials of digitalisation, connectivity, big data, artificial intelligence (AI) or blockchain technologies.2 Like
Germany, Japan maintains a relatively large
manufacturing sector, yet it was Germany which
first attracted international attention with Industrie 4.0 as its national framework and platform

The Digital Future

to comprehensively exploit the opportunities
implied by digitalisation and connectivity.
Since 1998 Japan has organised an annual
Global ­ICT Summit and has been launching its
own initiatives with regard to I­ CT as part of its• general economic policy (Prime Minister and
its Cabinet),• industrial policy (Ministry of Economy, Tradeand Industry),• science and technology policy (Cabinet Office/•Council for Science, Technology and Innovation and Ministry of Education, Culture,
Sports, Science and Technology), and
its I­ CT strategy (Ministry of Internal Affairs
and Communication).

In 2013, following the announcement of its­ICT growth strategy, the government officiallydeclared that it will make Japan “the world’s
most advanced IT Nation”.3
The first industry specific responses to Industrie
4.0 were the establishment of three (!) industry
consortia, the Robot Revolution Initiative in
May 20154, the Industrial Value Chain Initiative in June 20155, and the Internet of Things(IoT) Acceleration Consortium in October
2015.6 In addition there have been initiatives
by the Japan Association of New Economy7
and the Internet Association Japan.8 As someof these terms might sound cryptic, it may beunnecessary to explain the technical details of
the above mentioned consortia. However, themere creation of these initiatives demonstrates
the strong response Industrie 4.0 has triggered
in Japan.

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The most comprehensive framework recently
promoted by the Japanese government is “Society 5.0” (see table 1). Society 5.0 is used tohighlight Japan’s unique position and role inmastering the challenges of digitalisation andconnectivity. The term was introduced in the 5th
Science and Technology Basic Plan of January
2016 with explicit reference to the national IoT
initiatives in the US, Germany and China.
Society 5.0
The 5th Science and Technology Basic Plan formulates the ambitious goal of making Japan aworld-leader in the creation of a “super smart
society”. The so-called Society 5.0 represents
a state that appears almost utopian, a perfectly
connected, highly efficient and inclusive society, which fully integrates the cyber and thephysical world.9 Eleven systems are defined astasks that need to be accomplished to achieve
the final goal. The core is made up of three systems addressing important social and economic
needs and requiring urgent action on a national
level. All systems are addressed by separate initiatives, require close collaboration between academia, industry and government and are to becoordinated and integrated through a common

Table 1: Society 5.0 – Japan’s Initiatives at a GlanceInstitution

Cabinet Office / Council for Science,
Technology and Innovation

Prime Minister of Japan and His Cabinet /Japanese Economy Revitalisation Headquarter

Title

The 5th Science and Technology Basic Plan10

Growth Strategy 201711

Focus

Core systems: intelligent transportation
systems, energy value chain, new manufacturing systems, additional systems: global
environment information platform, infrastructures, hospitality, smart food chain
systems, disaster resilience, integrated
material development systems, smart
production systems

Policy areas / strategic fields: „extensionof healthy lifespan“, “realisation of mobility
revolution“, „creating next generation supply
chains“, „building and developing pleasantinfrastructures and towns“, „FinTech“

Supportingareas

Technological domains: Cybersecurity, IoT
system architecture, AI, device technology,
network technology, edge computing,mathematical science

Cross-sectional tasks:

Japan’sstrengths /advantages

50

Technologies: Robotics, sensor technology,
actuator technology, biotechnology, humaninterface technology, material / nanotechnology, light / quantum technology

1. enhancing sources of value creation(platform / systems for exchange and useof data; IT related education / humanresources; innovation / venture eco-systems),
2. reforms to support value creation (reform
test cases; reducing administrative
burdens; corporate governance reforms;
expanding private / public partnerships andprivate finance initiatives),
3. better integration of local economies(SMEs, services, agriculture, tourism /sports / culture)
Japan facing severe demographic as well as
energy / environmental challenges; pressing
labour shortages; availability of big data

International Reports 1|2018

platform (the “Society 5.0 service platform”),
that is yet to be launched. The “5th Plan” further
lists several technological domains considered
as fundamental for the promotion of the above
systems and emphasises technologies, which are
relevant for the eleven systems as well as for thefundamental technological domains and where
Japan is in a leading position.
Society 5.0 plays a pivotal role in the recently
updated growth strategy under “Abenomics”.
Approved by the Cabinet in June 2017 under
the title “Future Investment Strategy – Towards
the Realisation of Society 5.0” (in Japanese),the Growth Strategy 2017 sees the efforts

undertaken towards Society 5.0 as “the key tobreak secular stagnation and achieve mid-andlong-term growth”. It argues that Japan is in anadvantageous position to take the lead because• it faces severe challenges like the rapid age-•ing of its population, the de-population ofrural areas and energy and environmental issues, where Society 5.0 is expected todeliver urgently needed solutions,fears of mass unemployment associated withthe 4th industrial revolution will be less relevant for Japan as the country’s labour force israpidly shrinking,Institution

METI / Industrial Structure Council – New
Industrial Structure Committee

Keidanren

Title„Future Vision Towards 2030s“12Rebuilding Japan through the realisation ofSociety 5.0 (only in Japanese)13

Focus

Specific strategies: Mobility (people andthings); smart supply chain and production
systems; health and nursing care; living (newcities, sharing economy, FinTech)

Tokyo 2020 as model case); region (advanced
data analysis & robotics to agriculture,
automated driving, robotics & smartphones
to improve child and elderly care, a work environment in support of family life, diversified
and decentralised energy system, resilient
infrastructure); products and services (optimising value chains, fostering technologies
where Japanese industry excels – devices,materials, supercomputing, ensuring
international competitiveness of SMEs – topcraftsmanship, new 3D printing); infrastructures (smart construction systems, big data
& AI for asset management, virtual Japan);cyber space (data infrastructure, digital twin
infrastructure, cyber security, resilience, etc.)

Supportingareas

Cross-sectional tasks: better rules (IP,data, standards, regulations); innovation
eco-systems (CoEs, industry-academia collaboration, AI roadmap, venture business);
rejuvenating economic system (risk capital,business restructuring, governance);
human resource development and management; social security systems; regional
economies, SMEs; developing businessoverseas

Comprehensive reforms / adaptions in fiveareas: public administration, legal system,
technology, business organisation, humanresources, education, work styles, social
acceptance.

Japan’sstrengths /advantages

abundance of „physical“ data; manufacturing technologies; pressing social issues

no explicit emphasis

Source: Author’s compilation.

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• the country has a competitive edge in inte-

grating virtual data from the internet withreal data provided by various service industries, transportation and manufacturing systems.

The Strategy 2017 specifies certain policy
areas for future investment and outlines crosssectional tasks needed to be tackled in order torealise the value creation potential of digitalisation and connectivity.

Society 5.0 represents a statethat appears almost utopian.

Society 5.0 has also been incorporated in­ ETI’s “New Industrial Structure Vision”, proM
jecting the evolution of industry up to 2030. The
outline defines a number of strategic areas andcross-­sectional tasks. Strategic areas are further subdivided into subthemes with a future
vision, a roadmap and breakthrough projects
sketched for each subtheme. M­ ETI sees Japan
capable of taking the lead in the realisation ofSociety 5.0 due to its abundance of well documented physical data, advanced manufacturing technologies and pressing social issues. In
March 2017, M­ ETI announced the Japaneseversion of connected industries as an integrated part of a “human centric” Society 5.0.
The concept incorporates three pillars:
1. a digital society based on co-working of
humans and machines,
2. multilevel cooperation across regions, borders and time,
3. human resource development.
The concept has been promoted and further
developed in a series of roundtables organisedby ­METI in cooperation with representatives
from Japanese industries. Keidanren endorsed
the concept of Society 5.0 in its policy p­ roposal“Toward realisation of the new economy andsociety” as early as April 2016. In July 2016, it
came up with a proposal specifically targeting52

the use of data (“In pursuit of an environment
for utilisation of data. Towards the achievement of Society 5.0”). In February 2017, Keidanren published a comprehensive action plan torebuilt Japan with Society 5.0 as its key concept.
In July 2017, as a follow-up to the G7 Information and Communication Ministers Meeting in
April 2016 in Japan, the Japanese Ministry ofInternal Affairs and Communication publishedInternational Reports 1|2018

Wedding 5.0: In the long run, society 5.0 is seen as an argument to push for fundamental reforms of Japanese social
institutions. Source: © Yuriko Nakao, Reuters.

a first draft of guidelines for Research on Artificial Intelligence (AI) as a basis for international
discussions. The aim is to achieve multi-stakeholder participation and sharing of best practice among the G7 and ­OECD countries.14
Preliminary Assessment
Society 5.0 has certainly become the dominant framework for Japanese discourse about

The Digital Future

the next industrial revolution. But what exactly
defines it?
Comprehensiveness is the first pillar of the said
framework. Society 5.0 moves beyond industry in the narrow sense. It fully embraces thepotential social transformations inherent in thedigitalisation and full-fledged interconnectedness. The second characteristic is issue orientation; i. e. the potential of digitalisation and53

connectivity are not discussed from a purely
technological point of view (what is technologically possible), but with regard to their contribution to Japan’s urgent social and economic
issues, like ageing, depopulation, energy, productivity, regional revitalisation, disaster resilience. Furthermore, the entire process is laidout in a way that sees itself as a driver of reform:
Society 5.0 is not only seen as the “new growthengine”, but also as an argument to push for
fundamental reforms of Japanese economic andsocial institutions. Lastly, a Japan specific focus
matters: With reference to existing strengths
of Japanese industry, Society 5.0 emphasises
specific technology areas where Japan shouldtake a lead, like the integration of virtual andphysical data (sensor technology, autonomous
driving, smart value chains / manufacturing systems), robotics /AI, new materials, blockchain /FinTech.

common mission to overcome the structuralbarriers, otherwise its implementation will begreatly constrained by lack of coherence andintegration.

Dr. Franz Waldenberger is Director of the German
Institute of Japanese Studies based in Tokyo.

Comprehensiveness and issueorientation represent some ofthe pillars of Society 5.0.

To be sure, the policy proposals sketch very
ambitious goals and appear utopian in many
respects, but this is typical of Japanese policy
initiatives.
Despite the common frame of reference provided by Society 5.0, the many ideas, proposals
and initiatives remain only loosely coordinated.
While this might not be surprising given thecomplexity and uncertainty surrounding the
new digital future, it points to a typical structural problem confronting such a national
strategy; namely the organisational boundaries
within the public administration, between companies, industries or industry and academia.
These boundaries obstruct the cross-sectional
coordination and collaboration necessitated by
the system-wide implications of Society 5.0, andengender numerous duplications of efforts. It
remains to be seen whether the new vision cancreate a strong enough momentum or sense of54

International Reports 1|2018

1­ rganisation for Economic Co-operation andO
Development (OECD) 2015: O­ ECD Digital
Economy Outlook 2015, in: http://bit.ly/2FPeShG[20 Mar 2018].
2 Joh, Anthony 2017: Tokyo-based podcaster explains
Japan’s declining startup scene and its future, Techin Asia, in: http://bit.ly/2ueSoBZ [20 Mar 2018].
3 Prime Minister of Japan and His Cabinet 2013:
Declaration to be the World’s Most Advanced IT
Nation, 14 Mar 2013, in: https://bit.ly/2GlGqrO[20 Mar 2018].
4 Robot Revolution Initiative 2015: The founding
general meeting of the robot revolution initiative
was held, in: http://bit.ly/2G1NQo7 [20 Mar 2018].
5 Industrial Value Chain Initiative, https://iv-i.org/
wp/en [20 Mar 2018].
6 Internet of Things Acceleration Consortium,
http://iotac.jp/en [20 Mar 2018]. The term
“Internet of Things” defines the increasing
interconnection of ‘intelligent’ electronic devices,which are able to communicate with each otherinternally and with the Internet externally. Various
household objects we use in our everyday life are
equipped with processors and sensors to be able tocommunicate with each other. Cf. Gruenderszene.
de, GS Lexikon. Internet of Things, in: http://bit.ly/
2­HZQAz9 [20 Mar 2018].
7 Japan Association of New Economy 2018:
Organizational chart, in: http://bit.ly/2p­EGAUr[13 Mar 2018].
8 Internet Association Japan, https://www.iajapan.org[20 Mar 2018].
9 The four previous development stages of humansociety are the hunter-gatherer, agrarian, industrial
and information society.
10 Council for Science, Technology and Innovation,
http://www8.cao.go.jp/cstp/english [20 Mar 2018].
11 Prime Minister of Japan and His Cabinet 2018:
Japanese Economy Revitalization Headquarter, in:
http://bit.ly/2DPD2DB [20 Mar 2018].
12 Ministry of Economy, Trade and Industry 2017: A
Final Report on the New Industrial Structure Vision
was compiled, in: http://bit.ly/2HZgByg[20 Mar 2018].
13 Keidanren Policy & Action 2017: Rebuilding Japanthrough the realization of Society 5.0, in:
http://bit.ly/2pyZ2yd 20 Mar 2018].
14 To ensure a human centered approach, theguidelines put forward nine principles for thesound development of AI R&D: transparency,
controllability, safety, security, privacy, ethics, user
assistance and accountability, cf. The Conference
toward AI Network Society 2017: Draft AI R&D
Guidelines for International Discussions, 28 Jul
2017, in: http://bit.ly/2px­TJPI [20 Mar 2018].

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