Fig. 1-7 Increments from Japan’s real GDP forecast values of 2011

(Source) “Survey on Regional Economic Growth Brought about by the Development of a Ubiquitous Network”

the allocation of ICT capital is concentrated in the prefectures with low ICT capital-labor-ratios.

Many prefectures with low ICT capital-labor-ratios have either small ICT capital stock or the number of employees is large. Assuming the volume of allocated ICT capital is constant, the smaller the ICT stock is, the larger the growth rate of ICT capital. Prefectures with a large number of employees tend to have a large real gross prefectural product. Thus, the effect of concentrated allocation seems stronger, being influenced by a small ICT capital stock in the case of the former and being influenced by a large real gross prefectural product in the case of the latter.

The result of this simulation suggests that the correction of regional information discrepancies through the deepening of capital in prefectures with low ICT capital-labor-ratios (increase in the capital equipment ratio) will lead to an effective boost of the real GDP of the overall economy.

### 2. Diminution of digital divide between regions

## (1) Use of ICT in households and regional divide

The use of ICT in households at the end of 2007 is examined to find out about the regional divide in 11 regional groups in the country. For example, the broadband usage rate is highest in the Hokuriku region at 73.4% and lowest in the Tohoku region at 32.8%, with a remarkable difference of 40.6 points (Figure 1-8). IP phone usage rate is highest in the Kinki region at 29.2% and lowest in the Chugoku region at 11.3%, with a difference of 17.9 points.

When taking a look at the installation and usage of ICT devices in households by region at two time points (end of 2007 and 2004) and the regional gap shown therein, it is observed that the diffusion rate increased for almost all items while the regional gap narrowed (Figure 1-9). However, while the diffusion rates for IP phones and broadband increased from three years earlier, the coefficient of variances is virtually unchanged, exhibiting a persistent regional gap. In households, although there is almost no regional gap in the possession of ICT devices, such as mobile phones and PCs, and in the fundamental aspects of ICT usage, such as use of the Internet, the coefficient of variances has not narrowed for the use of broadband and IP phones, indicating a persistent regional gap. Therefore, it is necessary to eliminate the regional digital divide further, focusing on usage aspects in households.

(2) Use of ICT in corporations and regional divide

When taking a look at the installation and usage of

Fig. 1-8 Usage of ICT in households by region

Mobile phone ownership rate	PC ownership rate	Internet usage rate	Broadband usage rate	IP phone usage rate	Terrestrial digital broadcasting audience rating	Cable TV audience rating	Satellite broadcasting audience rating
Highest region	Hokuriku 99.4%	Hokuriku 94.1%	Hokuriku 96.0%	Hokuriku 73.4%	Kinki 29.2%	Minami Kanto 38.0%	Hokuriku 62.7%	Hokuriku 59.2%
Lowest region	Shikoku 89.8%	Shikoku 72.8%	Shikoku 81.6%	Tohoku 32.8%	Chugoku 11.3%	Shikoku 20.5%	Tohoku 11.2%	Hokkaido 39.6%
Difference (points)	9.6	21.3	14.4	40.6	17.9	17.5	51.5	19.6

(Source) “Communication Usage Trend Survey (2007),” MIC