Silviase/jgov_v1.4_full_ann huggingface dataset:
(ii) ICT use by municipality

Viewing the use of ICT by city categories reveals that the average score is highest in ordinance-designated cities and special districts, followed by core cities/exception cities, and then other cities and towns and villages, indicating that the larger the size of the municipality, the higher the average score (Figure 1-11). However, focusing on the highest score, the highest score of the designated cities/special districts is lower than that of other cities. Cities and towns other than designated cities are ranked high in the ICT Comprehensive Use Index, indicating that municipalities taking pioneering approaches are not necessarily limited to large-size municipalities (Figure 1-12).

## (b) Field-specific ICT use in eight major fields

When viewing ICT use according to the attributes of municipalities, ICT use is relatively advanced in municipalities with elderly populations of 30% or more (hereinafter referred to as “aged municipalities”) and municipalities located in disadvantaged areas (such as depopulated areas) in the fields such as welfare/healthcare, medical care, industry/agriculture, transportation/tourism and community (Figure 1-13). For these municipalities, responding to aging and depopulation, etc. is the priority issue that administrations are faced with. It is therefore assumed that more weight is being placed on the fields for which ICT use is thought to be effective in terms of the reduction of social and welfare expenditures, cultivation of local industries, and utilization of tourism resources, etc., namely, welfare/healthcare, industry/agriculture, and transportation/tourism. In municipalities including islands, ICT is utilized more in all fields compared to municipalities that do not include islands.

## (2) Key factors of ICT use

A. Development of promotional system, formulation of informatization plan and ICT-related budget percentage

A total of 2,748 municipalities are classified into four categories depending on the progress of promotional systems (condition as to whether a department in charge of ICT has been established and a Chief Information Officer (CIO) has been appointed) to examine the use of ICT according to ICT-related budget percentage. When municipalities implementing both the preparation of a promotional system and the formulation of an ICT plan are compared with munici-

Fig. 1-13 ICT Use Index by fields, viewed by the attribute of municipalities

*ICT Field-specific Use Index of municipalities are converted to deviation scores, and the average values of each attribute group are illustrated graphically.

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”
palities implementing neither of them, the average score of the ICT Use Index differs greatly, with the former scoring more than double the latter (Figure 1-14). It shows that there is a possibility that the formulation of an ICT plan results in the effective use of ICT, in addition to the establishment of departments in charge of ICT and the appointment of a CIO.

B. Population size, wide-range cooperation and ICT-related budget percentage

A total of 1,748 municipalities in Japan are classified according to size of population and ICT-related budget percentage, and we have examined their use of ICT as to whether they implement wide-range cooperation with neighboring municipalities in developing applications. It can then be observed that municipalities implementing wide-range cooperation make advanced use of ICT, more than those not implementing such cooperation, regardless of population size (Figure 1-15). From this, it is fair to conclude that the joint development of systems involving several municipalities is the key factor in promoting the use of

Fig. 1-14 ICT Comprehensive Use Index (by promotional system, ICT plan, and ICT related budget percentage)

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”

Fig. 1-15 ICT Comprehensive Use Index (by population size, wide-range cooperation, and ICT related budget percentage)

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”
C. Effect of supportive measures by the government

A total of 2,748 municipalities are classified into four categories depending on the progress of promotional systems (conditional on whether a department in charge of ICT has been established and a CIO appointed) to examine the use of ICT according to the ICT-related budget percentage. It is found from this analysis that the average score of the ICT Comprehensive Use Index of municipalities that have established promotional systems is about twice as high as that of municipalities that have not established such systems, even if both groups use supportive measures from the government (Figure 1-16).

Therefore, it can be said that the simple acceptance of supportive measures does not always facilitate ICT use, but the key to the effective promotion of ICT is that municipalities should contrive ways to take full advantage of supportive measures.

(3) Evaluation and analysis of use of ICT

A. Subjective evaluation of municipalities on use of ICT

We asked municipalities using ICT if the use of

Fig. 1-16 ICT Comprehensive Use Index (by promotional system, use of governmental supportive measures, and ICT related budget percentage)

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”

Fig. 1-17 Effect of ICT use in each field by population size

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”
ICT was effective in terms of the following five items in each field: (i) improvement of the efficiency of administrative cost reduction, (ii) expansion of areas covered by administrative services, (iii) improvement of accuracy of information provided to residents, (iv) acceleration of speed such as the expedited response to the needs of residents, and (v) increased volume of information provided to residents.

The response “fully effective” was given two points and “quite effective” one point, and other responses a zero point, and the average score for the questions from (i) to (v) in each field is used to show the evaluation of effect of ICT utilization by population size in municipalities. The result shows that the average score is highest and the effect is most noticeably felt in the administrative services field among both cities and wards with populations of more 3000,000 and less than 300,000. And the average score of towns and villages is highest in the industry/agriculture field (Figure 1-17). In contrast, the average scores are low and the effect of ICT is not felt in the fields of medical care and community. This is because the effect is not exercised just by introducing an ICT system and that it will require separate care in terms of human resources development in these fields, such as the improvement of user skills and knowledge, etc.

### B. Relation between ICT use and regional revitalization

## (a) Industry/agriculture field

A total of 1,175 municipalities throughout the county are classified into three groups in accordance with the level of ICT utilization in the field of industry/agriculture and the change in income from agricultural production per farming household from 2000 to 2005 is examined. The result shows that while municipalities with low deviation scores of less than 50, or those with low ICT utilization, have the largest

Fig. 1-18 Increase rate of production agricultural earnings per farming household by ICT use

* The data of the increase rate of production agricultural earnings per farming household are based on the Statistics on Earnings related to Agricultural Production by MAFF.

(Source)" Investigative Study on Regional Informatization Approaches and Regional Revitalization"

Fig. 1-19 Increase rate of social assistance expenditure and budgetary spending per capita by ICT use

* The data of the increase rate of social assistance expenditure per capita and the increase rate of budgetary spending per capita are based on the Study on the Settlement of Accounts by Municipalities by MIC.

(Source)" Investigative Study on Regional Informatization Approaches and Regional Revitalization"
reduction rate at 3.9%, municipalities with high deviation scores of more than 70, or those with high ICT utilization, have the smallest reduction rate at 0.9%, exhibiting a difference between these groups of 3.0 points. From this, it is found that there is a clear correlation between the level of ICT utilization and the change in income from agricultural production.

The background to this may lie in the impact of

Fig. 1-20 Implementation of administrative services by ICT use

* The data of the state of implementation of administrative services, etc. are based on the Data of the Fifth Comparison Survey on the Administration of Municipalities throughout Japan, 2006 by the Nikkei Institute of Industry and Regional Economy

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”

Fig. 1-21 Categorization of municipalities

(Source) “Investigative Study on Regional Informatization Approaches and Regional Revitalization”
# Section 2 Growth and International Competitiveness of ICT Industry

### 1. Growth of the ICT industry

## (1) Domestic output

Nominal domestic output of the ICT industry in 2006 is 95.2 trillion yen and the ICT industry is the largest industry among all industries, accounting for 9.8%. Looking at the trend, it declined from 2000 to 2004, but has turned to an increase since 2005 (Figure 1-22).

On the other hand, real domestic output of the ICT industry in 2006 is 123.8 trillion yen, up by 3.0% from the previous year. Real domestic production has been increased consistently since 1995, recording an average growth rate of 5.2% from 1995 to 2004. Since the growth of nominal growth output is smaller than that of real output, the ICT industry can be identified as an industry with a noticeable reduction in prices compared with other industries (Figure 1-23).

## (2) Gross Domestic Product (GDP)

Real GDP of the ICT industry has grown consistently since 1995, and the average growth rate from 1995 to 2006 is 7.1%. Looking at the real GDP of major industries from 1995 to 2006, the average growth rate of 7.1% for the ICT industry is the highest, followed by electrical machinery (annual average growth rate 6.8%) and transportation machinery (3.5%). On the other hand, the industries recording negative growth are iron and steel (-2.3%), retail (-1.3%), construction (-1.2%), and transportation (-1.1%) (Figure 1-24).

## (3) Contribution to Japan’s economic growth

The ICT industry has consistently contributed to the real GDP growth of Japan since 1996. In 2006, the degree of contribution of the ICT industry to the real GDP growth rate of 2.7% was 1.0%, with a contribution rate of 37.0%. It is therefore fair to say that the ICT industry has always been a driving force in the economic growth of Japan (Figure 1-25).

## (4) Number of employees

The number of employees in the ICT industry in 2006 was 3.853 million people (up by 1.9% over the previous year), accounting for 6.8% of all industries. When compared with 2005, while the number of employees increased in information services (up by 5.1%), research (up by 2.5%) and ICT-related services (up by 2.1%), there was a decline in the number of employees in the ICT-related construction industry (down by 13.7%) and ICT-related manufacturing (down by 2.1%) (Figure 1-26).

Fig. 1-22 Trends in nominal domestic output of ICT industry

(Source) “Survey on Economic Analysis of ICT”
Fig. 1-23 Trends of real domestic output of ICT industry (billion yen: price of 2000)

(Source) “Survey on Economic Analysis of ICT”

Fig. 1-24 Trends in real GDP of major industries

(Source) “Survey on Economic Analysis of ICT”

Fig. 1-25 Contribution of ICT industry to real GDP growth rate

(Source) “Survey on Economic Analysis of ICT”

Fig. 1-26 Trends in the number of employees of ICT industry

(Source) “Survey on Economic Analysis of ICT”

Fig. 1-27 Contribution of TFP growth to domestic output growth by industry

(Source) “Survey on Economic Analysis of ICT”
## (5) Growth rate of Total Factor Productivity (TFP)

Looking at the degree of the contribution of TFP growth rate to the domestic output of major industries, the ICT industry and electrical/machinery have made a great contribution from 2000 to 2006, with 3.3% and 2.2%, respectively (Figure 1-27).

### 2. Status of the competitiveness of the ICT industry

## (1) ICT-related global market

Looking at the proportion of the size of the ICT market by region, the size of the Japanese market accounts for around 10% of the global market in every sector. Semiconductor devices account for the largest proportion, but still at a low level of 13.0% (Figure 1-28).

When looking at the annual average growth rate of the market from 2005 to 2007, the growth rate of the Japanese market is less than 5% in every sector, remaining at a low level compared with the average worldwide market. Markets in Asia-Pacific, the Middle-East, Africa, Eastern Europe and Central and South America are growing faster than the global

Fig. 1-28 Share of ICT related market by region (2007)

* For semiconductor devices, the Middle East, Africa and Eastern Europe are included in “Western Europe” and Latin America is included in “North America.”

Based on the materials by Gartner

Fig. 1-29 Growth of ICT related market in the world by region (average of 2005-2007)

Mobile communication service	Mobile communication terminal equipment
Fixed-line communication service	Fixed and core communication terminal equipment
Information service	Software
Information system terminal equipment	Semiconductor device
average, leading the global markets (Figure 1-29). In order for the ICT corporations of Japan to continue to grow, it would seem to be important for them to expand their presence in the rapidly growing markets in Asia-Pacific, the Middle East, Africa, Eastern Europe and Central and South America.

## (2) Presence of Japanese corporations in the ICT markets of the world

### A. Communication-related markets

Out of communication services, mobile communication services are the most used in the world and global competition is intensifying. In terms of the number of subscribers of major mobile communication carriers, China Mobile of China is ranked top of the world. Major carriers in Europe have gained more subscriptions than major carriers in the U.S. and Japan by active overseas promotion. On the other hand, sales of major carriers in Japan, the U.S. and Europe together are higher than China Mobile of China (Figure 1-30).

Looking at the market share of companies in the communication terminal and device market by region, the market share of Japanese corporations in mobile communication, PDAs, mobile infrastructure, optical transmission systems, LAN switches and routers for business use are 14.9%, 9.0%, 3.9%, 13.4%, 2.0% and 2.6%, respectively.

The largest share in the mobile phone device and

Fig. 1-30 Number of service subscribers and sales of the world's mobile communication carriers Number of service subscribers (End of 2007) Sales (FY2006)

Based on the materials released by each company

Based on the materials by Thomson Reuters

Fig. 1-31 Vendor share by region in communication terminal/device markets in the world

* Data for mobile phones are for 2007, data for PDAs, LAN switches, routers for business use are for the first half of 2007, and data for mobile infrastructure and optical transmission systems are for 2006.
mobile infrastructure markets is accorded to European companies, at 41.8% and 62.1% respectively. The markets for PDAs, optical transmission systems, LAN switches and routers for business use are dominated by North American companies, with 49.7%, 39.2%, 91.6% and 94.1%, respectively (Figure 1-31).

### B. Broadcasting/media-related markets

Comparison of sales from major broadcasting/media companies of the world shows that conglomerate-type media companies in the western world dominate sales of the world (Figure 1-32). Global competition for media services is assumed to be centered on the content, such as movies and TV programs; however, top U.S. companies are actively involved in global businesses through investment in overseas broadcasters.

As the Internet becomes an increasingly important in the field of media and broadcasting, the presence of companies which operate Internet businesses on a global scale is growing in the world. While top U.S. companies are actively involved in international busi-

Fig. 1-32 Sales of major broadcasting/media companies of the world (FY2006)

Based on the materials released by each company and Thomson Reuters

Fig. 1-33 Number of users of major websites by Japan and the U.S. in Japan, the U.S. and Europe (January 2008)

Based on the materials by Nielsen Online

Based on the materials by Nielsen Online
ness operations by establishing websites in many lan\-guages for overseas users, Japanese companies have yet to develop such overseas businesses (Figure 1-33).

When looking at corporate market share in the broadcasting/media-related terminal and device markets, Japanese companies have a relatively a higher share than companies in any other regions of the LCD TV, Plasma TV, DVD recorder and digital camera markets, at 43.9%, 51.3%, 55.4% and 72.9%, respectively. In addition to Japanese companies, Asia-Pacific corporations have a high level of market share (Figure 1-34).

### C. Information system/service-related markets

Looking at corporate market share in the information services markets of the world in 2006, Japanese companies accounted for more than 10% in the system development and system management/control sectors, with 13.3% and 13.8%, respectively, but for less than 10% in the consulting, BPO, hardware product support, and software product support sectors, with 7.5%, 8.5%, 9.5%, and 7.3%, respectively. In all these markets, the highest share was achieved by U.S. companies. In the software market, U.S. market share is also extremely high, while the share of Japanese companies is 0.4% for application software and 2.5% for infrastructure software, both below 3% (Figure 1-35).

When looking at corporate market share in the major information system-related terminal/device markets in the world, Japanese companies have a dominant market share in the copier market of 63.3%. Also, in the notebook PC and printer market Japan has a

Fig. 1-34 Vendor share by region in broadcasting/media-related terminal/device markets in the world (2007)

$ ^{*} $ Data for digital cameras are for 2006

Based on the materials by Display Search for LCD TVs and Plasma TVs; the materials by Fuji Chimera Research Institute for DVD recorder and digital camera

Fig. 1-35 Vendor share by region in information services and software markets in the world (2006)

Based on the materials by Gartner
market share of 23.8% and 32.1%, respectively. On the other hand, the Japanese share of the desktop PC, workstation and server market is 6.1%, 3.6% and 6.8%, respectively: all less than 10%. In the storage market, Japan has a 13.0% market share (Figure 1-36).

### D. Device-related markets

Looking at corporate market share by region in the semiconductor device markets of the world, Japanese corporations have a relatively high market share compared with corporations in other regions in the market for optoelectronics devices used for visual/image-related equipment, etc., and in the market for discrete semiconductors, which are electronic circuit elements including transistor diodes, etc., at 18.9% and 15.3%, respectively. Application Specific semiconductor devices and memories have a market share of 18.9% and 15.3%, respectively, but processors account only for 1.6%. (Figure 1-37).

Japanese companies and Asia-Pacific companies dominate the display device market. In the markets for LC devices for mobile phones and plasma displays, Japanese corporations have a market share of 51.1%

Fig. 1-36 Vendor share by region in information system-related terminal/device markets in the world (2007)

$ ^{*} $ Data for storage (RAID) are of 2006

Based on the materials by Gartner

Fig. 1-37 Vendor share by region in semiconductor device markets in the world (2006)
and 49.8%, respectively, sharing the markets with Asia-Pacific corporations. However, the market share of Japanese companies in the LC devices for TVs and PCs, which is the volume zone, is 15.7% and 2.3%, respectively, as those markets are dominated by Asia-Pacific companies (Table 1-38).

## (3) Presence of Japan in ICT-related exports in the world

Looking at the market share by region of ICT-related exports in the world, China’s export value market share is high for all products, establishing itself as the world’s production base. However, countries in the Asia-Pacific region such as South Korea and Taiwan hold large shares for semiconductor devices.

Japan’s share is less than 10% except for only a few products. In particular, its share does not reach 5% for many terminal equipment products. In North America, there are many products with a high corporate market share but there are not many products with an export share as high as the corporate market share, which indicates that many production factories have been transferred overseas, such as to China (Figure 1-39 and Figure 1-40).

Fig. 1-38 Vendor share by region in display device markets in the world (2007)

Based on the materials by Display Search

Fig. 1-39 Export value share by region of ICT-related terminals and devices in the world (2007)