### 3. Global expansion utilizing Japan’s strengths

In addition to tracking the preferences of local markets and reflecting them in product and service development, it is also essential to aim for global deployment in sectors and services in which Japan has strength.

Japan has experience and know-how in solving and overcoming various social issues, as an “issues leader” that has faced such problems as striking a balance between economic development and environmental protection / energy efficiency, construction of systems to deal with damage from natural disasters such as earthquakes, a low birth rate and an aging society. Other nations face similar problems, and Japan has the opportunity to incorporate ICT into the societal infrastructure built up in response to these issues and develop it into projects that can be pursued overseas, making a contribution to problem solving at a national level in Asia and elsewhere in the world. This entails not merely selling single technologies and products, but also marketing Japanese operation and management experience and know-how as part of a package, so as to secure a stable source of revenue over the long term.

One promising example of an area where Japan’s problem-solving experience and know-how can be marketed overseas is the technology 1,100 kilovolt (kV) ultra-high voltage (UHV) technology used in smart grids.

The 1,100 kV UHV technology usable in smart grids developed in Japan over 30 years with the participation of electric power companies, manufacturers, etc., was adopted as an international standard by the International Electrotechnical Commission (IEC) in May 2009, making 1,100 kV one of the standard voltage values for international use.

1,100 kV UHV allows for bulk power transmission three to four times that of the 550 kV transmission lines currently in use in Japan, and makes it possible to reduce costs and boost energy efficiency through reduction of transmission routes and transmission loss. In addition, it is thought that UHV technology could have applications in smart grids, and that such applications, along with expansion in countries with massive energy demand such as China and India, could lead to further adoption as a standard and a share of a market said to be worth as much as one quadrillion yen over the next 20 years.

Furthermore, Japanese electric power companies have been lending technical cooperation to China, where energy demand is soaring and there is an urgent need for greater energy efficiency. Such ties with the massive Chinese market have helped influence the standardization process, helping to obtain the support of Germany and Sweden which had previously stood in opposition to Japan’s 1,100 kV UHV transmission technology.

For Japan to boost its international competitiveness, it is vital to harness the nation’s strengths, such as high technological development capabilities and accumulated technological achievements, experience in tackling issues such as environmental preservation, energy efficiency and disaster prevention, and geographical proximity to mainland Asia, which will henceforth take an increasingly central role on the world stage and has a strong need for such problem-solving experience as Japan possesses. It is clear that Japan must reappraise its geographical advantage in having close proximity to mainland Asia, which is exerting a growing global presence (particularly China and India), and make effective use of ICT and Japan’s technology and experience to expand in these regions, cooperating with these Asian nations to overcome the problems they face and contribute to their growth. In this process, Japan as well can achieve sustainable growth over the long term.