JX (Japan Transformation) Policy Proposal- JANE’s Vision for Japan’s Future July 10th, 2023
1. Foreword
On July 3rd, Japan Association of New Economy (JANE) held an event to promote
JX (Japan Transformation) (Ref.1), inviting business and political leaders todiscuss our vision for the future of Japan. Using the discussions held at this event
as a reference, we have compiled our message in the form of the “JX (JapanTransformation) Policy Proposal - JANE's Vision for Japan's Future -”.
2. Message 1: What Japan needs to become an innovation powerhouse that
attracts people, knowledge, and capital(1) Recognize that innovations exist in Japan, and proactively publicize thoseinnovations around the world with confidence. Japanese companies should
actively expand its services overseas.
(2) Foster a culture of tolerance for failure. Strengthen support for start-ups(mobilize all available policies, including tax, budget, and regulatory
reforms).
(3) Ensure diversity in society (shift from a Japanese-only mentality, expand
participation of women, LGBTQ, etc.).
・Build political, governmental, and private initiatives. Set clear goals, suchas fostering female Nobel Prize winners.
・Review the tax systems, including lowering income tax rate, in order toattract human resources around the world.
・Have head-on discussions on immigration policy.
・ Promote the mobility of human resources between the public and theprivate sectors and between the private sectors.
(4) Recognize and respect the autonomy of the private sector, andstrategically consider the areas and affairs in which government should orshould not be involved.
(5) Clarify the Japanese government's commitment to promote DX (DigitalTransformation) and the use of AI as well as to develop and utilize digital
infrastructure (ex. “My Number” (Individual Number) System, Base Registry,
Data distribution infrastructure, etc.) without backtracking, while paying

close attention to various issues and resolutely proceedings. In addition, thegovernment should promote open wireless network (ex. simplification ofidentification procedures).
(6) DX and AI should be given special treatment and require strategic
government support including financial supports, regulatory reforms, etc.
(7) Recruit, develop and retain human resources to promote next-generation
innovation. For the time being, utilize human resources overseas, especially inthe fields of science, digital, and AI. Development of domestic humanresources will follow. In order to secure such human resources, the Japanese
Government should reconsider what kind of education, both in terms ofquality and quantity, is necessary.
(8) Learn from the examples of foreign countries such as France where the social
environment has rapidly changed in a direction that encourages innovation.
3．Message 2: AI and Web3 Strategies that Japan Should Take to Keep Up withWorld-Changing Data Technology(1) Policy formations in the future should be based on a thoroughunderstanding of changes in technology.
・We are entering an era of “Automation 3.0”, in which “automation” itself canbe “automated”.
・AI and Web 3 will interact with each other to bring capitalism to a new stage.
・The ability to grasp and analyze a wide range of information in real time willchange decision-making mechanisms and processes.
(2) AI and Web3 technologies have a high affinity for the global development ofJapan's added value (pop culture, traditional culture, food, tourism
experiences, etc.), and Japan should use them as a springboard for thecounter-offensive.
(3) Learn from the use of Web3 in local governments in Taiwan, and Japan should
proactively incorporate it into its own policies and operations.
(4) The Japanese government, recognizing the challenges facing AI, should
contribute to international rulemaking on AI-related regulations bycommunicating to the world through the activities of the G7 AI Hiroshima
Process the rules that will enable humans to make the best use of AI.
(5) Other than inward-looking discussions, both the Japan’s public and theprivate sectors should build strategies (including fundraising and securinghuman resources) with an awareness of the global market.

(6) In order to respond to the new technological revolution that will occur in thefuture, Japan needs not only to replace the rules, but also to change thearchitecture. Various policies, including fiscal support, tax reform, andregulatory reform, should be mobilized, rather than relying on existing policy
systems and processes.
4. Message 3: What is needed to make GX a growth strategy for Japan(1) Review the government's portfolio of GX (Green Transformation) support
measures from an emphasis on legacy to support for EVs, etc. Japan should
introduce significant support measures to increase the predictability ofinvestment, given that companies and human resources, including GX
Venture, are beginning to concentrate in the US. Existing issues, such as theprinciple of single-year budgets and budget caps relative to the previous year,
should continue to be considered.
(2) A public-private initiative should be considered to take advantage of theestablishment of Carbon Credit Market on the Tokyo Stock Exchange inOctober 2023.
(3) Experts in this field from the private sector should be actively promoted as
members of the “GX Promotion Organization,” which is scheduled to beestablished in FY2024 and will be responsible for providing debt guarantees
to promote GX investment. GX investment should be promoted mainly by
private-sector personnels.
(Reference 1) What is JX? :JX web page (only in Japanese): https://nest.jane.or.jp/jxportal/
Related Policy Proposal (December 28th, 2022)
https://jane.or.jp/en/proposal/pressrelease/18599.html(Reference 2) JANE’s Carbon Neutral Vision (June 22th, 2023)
https://jane.or.jp/en/proposal/pressrelease/19417.html