Silviase/jgov_v1.4_full_ann huggingface dataset:
Exhibit 1-9 Cell Phone Internet Compatibility Rate (Ratio of the Number of Subscribers to the Mobile Internet to the Number of Subscribers to Cell Phones) in the Major Countries and Regions (as of 2001)

Telecommunications-2000) is a high-quality, digital new-generation mobile communications service which enables high-speed data communications on a global basis.

In October 2001 NTT DoCoMo began offering a full-scale IMT-2000 service, which had approximately 90,000 subscribers as of the end of March 2002. In addition, the KDDI Group launched its IMT-2000 service in April 2002, followed by J-Phone, which expects to begin its service in December 2002, leading to the beginning of competition among these three companies by the end of the year.

With respect to the desired functions and services for the third-generation cell phone, more than half the people surveyed would like to see a fast communication speed, and one-third would like to see a videophone function. Also, with cell phones most people would like to have a high-speed, large-capacity and easy to utilize communication usage environment, suggesting that there are high expectations for the further development of cell phones (Exhibit 1-10).

## Promotion of the Digitization of Broadcasting

Digital broadcasting has advantages over analog broadcasting in that it: 1) provides high-quality visual and sound services and diversified channels; 2) enables advanced broadcasting services and services in partnership with communications networks; 3) provides a stable mobile reception and 4) an extensive lineup of services that are easy for the challenged and elderly to use such as the conversion of speeds.

Exhibit 1-10 Desired Functions and Services in Third-Generation Cell Phone

Source: Survey and Analyses of IT and National Life
of speech. In addition, digital broadcasting makes possible a server-type broadcasting, a new form of broadcasting which utilizes a receiver intended for digital broadcasting equipped with a communications network connectivity function and a large-capacity storage function (server-type receiver).

In the area of satellite broadcasting, a CS digital broadcasting service which uses a communication satellite (CS) was launched in June 1996 as the first digital broadcasting undertaken in Japan. In addition, commercial services were commenced for BS digital broadcasting using a broadcasting satellite (BS) in December 2000. As of the end of March 2002, the total volume of shipments of BS digital tuners and BS digital televisions reached about 1.14 million. When the number of receptions via cable TV (approx. 1.52 million households) is added to this figure, approximately 2.66 million households were able to receive satellite broadcasting. Furthermore, in March 2002 110 degrees longitude east CS digital broadcasting commenced services.

In the area of terrestrial television broadcasting, which is the basic form of broadcasting widely prevalent among the Japanese people, digital broadcasting is scheduled to be launched in three major regions, namely, Kanto, Kinki, and Chukyo, by the end of 2003, and in other regions by the end of 2006. By 2011 it is anticipated that broadcasting via analog waves will be terminated. The digitization of terrestrial broadcasting is aimed at replacing television receivers, which are disseminated in almost all households in Japan, with a simple advanced information and communications terminal that can be used at home, and as such it will play an important role as a gateway to an advanced information and communications network society. At the present time, in order to prepare for the facilitation of digital terrestrial broadcasting, NHK, commercial broadcasters, and the MPHPT have joined forces in setting up the Advisory Committee on Digital Terrestrial Broadcasting in each region across Japan.

In the area of cable television, digital broadcasting was launched in July 1998 in selected regions of Japan. With progress being made in the digitization of all broadcasting media including terrestrial broadcasting and BS and CS broadcasting, the goal has been set for the full digitization of practically all broadcasting media by 2010. In addition, with the penetration of cable televisions in households presently exceeding 20%, the digitization of cable television is expected to provide all of its anticipated merits to these viewers who currently receive television broadcasting via cable television.
## I T Investment and the Macroeconomy

IT investment in Japan’s private sector during 2000 increased significantly to ¥20.8 trillion (a 21.7% increase over the previous year), with the level of IT investment nearly doubling over the preceding 10 years. In addition, IT investment account for about a quarter of capital investment in the private sector at 23.5% (a 2.2 point increase over the previous year), suggesting the elevated position that information and communications capital has in corporations. The increase in IT investment can not only contribute to the revitalization of the information and communications industry but it also has a significant economic impact on other industries. An estimation of the ripple effect of IT investment on Japan’s economy shows that IT investment has resulted in ¥38,615.9 billion of output stimulation and in employment creation of approximately 1.49 million people, which indicates that IT investment is able to contribute to growth in the output levels of various industries and employment (Exhibit 1-11).

Japan’s information and communications capital stock in the private sector during 2000 rose to ¥44.0 trillion (a 13.3% increase over the previous year), increasing almost twice as much as the level seen 10 years earlier. In addition, the percentage of information and communications capital stock in the total private sector capital stock was 4.0% (a 0.3 point increase over the previous year), which indicates an increase of more than 1.0 point over the five year period 1995 to 2000. Such an increase in information and communications capital stock can contribute to efficient corporate management. It can also contribute to economic growth by allowing the offering of high value-added services. Furthermore, the extent to which each of the three main output factors, namely, information and communications capital, general capital (excluding information and communications capital), and labor, has contributed to Japan’s economic growth has been estimated, these more generally known as each output’s contribution ratio. For example, it has been estimated that information and communications capital contributed 1.1% to an overall economic growth rate of 1.4% over the period 1995 to 2000, which indicates that information and communications capital plays a key role in Japan’s economic growth (Exhibit 1-12).

Exhibit 1-11 Ripple Effects of IT Investment on the Economy

IT Investment Amount in 2000

Investment Area	Investment Amount (¥ million)
Software (for computers)	5,296,171
Computers and accessory devices	9,180,141
Wired telecommunications devices	2,383,906
Wireless telecommunications devices	3,956,066
Total	20,816,285

Source: Survey of IT Economic Analyses

Ripple Effects on Japanese Economy

Output stimulation (¥ million)	38,615,946
GDP stimulation (¥ million)	17,538,688
Employment creation (persons)	1,486,636
Exhibit 1-12 Contribution Ratios of Various Factors to Japan's Economic Growth

Source: Survey of IT Economic Analyses

## I T Investment and Business Activity

The most common form of IT that has been implemented by listed companies in Japan is an infrastructure IT, which is aimed at laying the groundwork for an information and communications infrastructure within a company such as the installation of a PC for every employee. The next most common form of IT is a cost reduction IT, which is aimed at improving operating efficiencies in key operations such as finance and human resources. The third most common form of IT investment is a value-added creation IT, which is intended to explore new markets and to improve customer service and customer satisfaction.

In addition, it has been pointed out that, in order to ensure that the development of IT investment be reflected in improved operating efficiencies in information sharing and administrative and maintenance tasks and to benefit from such improvements, companies must take the initiative in reviewing their organizational structures and in enhancing their human resources. Factors that are considered critical by the companies surveyed in their attempt to fully achieve the effects of IT investment include the review of contents and flow of operation (83.7%), and a firm commitment of top management (61.5%) (Exhibit 1-13). Furthermore, with respect to making progress in the implementation of initiatives to improve operating efficiencies, over half of the listed companies have aggressively undertaken internal measures such as the elimination of paper work within their company (52.9%) and the promotion of information sharing (45.7%). However, fewer companies have undertaken measures to review operations related to external transactions, such as the elimination of paper work in external transactions (15.3%) and the reviewing of the manner in which transactions are conducted. In addition, more than 40% of the companies provide IT education to their employees through internal IT-related educational and seminar programs (42.1%) and participation in external IT-related educational and seminar programs (41.1%).

With respect to the awareness of the effects of IT among listed companies, nearly 60% of the companies acknowledge that IT has been effective in terms of the related costs (58.6%), suggesting that most companies have a positive view of the effects of IT. In addition, in a breakdown of the effects of IT by the form of IT investment, the companies surveyed are most aware of the effects of infrastructure IT, followed by cost reduction IT and value-added creation IT (Exhibit 1-14). Going forward, in order to further pursue IT, it is important that companies implement restructuring measures that would be applied not only within the company but also to relations existing outside of the company, and create an environment in which the company can fully benefit from the effects of IT.
## Growth of Internet Businesses

New types of businesses that utilize the Internet can be classified according to three layers, namely, a network infrastructure layer, a platform layer, and a content and application layer. Business in the network infrastructure layer, which forms the foundation among these three layers of businesses, has been rapidly growing as evidenced by the growing penetration of broadband services, and has had a significant impact on the development of businesses in the content and application layer and the platform layer. In this sub-section, we will provide an overview of the markets for electronic authentication and PKI, data centers, ASP, e-learning, and e-commerce, all of which are viewed as possessing the potential to grow substantially in the future in the businesses in the platform layer and the content and application layer.

The electronic authentication business, which has emerged in recent years, is concerned with the operation of electronic signature and authentication services through the use of cryptographs as an effective method in verifying the identity of a counter-party on the Internet and dealing with information leakage and interpolation of information, in order to secure the authentication of documents containing information on certain business

Exhibit 1-13 Necessary Conditions for Achieving the Effects of IT Investment (multiple answers)

Source: Survey on IT and Business Activity

Exhibit 1-14 The Effects of IT Among Businesses (by purpose)

Source: Survey on IT and Business Activity
transactions. At present, the market size of the electronic authentication business based on the most commonly used public key infrastructure (PKI) was estimated at approximately ¥6.34 billion in 2001 and this is projected to grow to nearly ¥41.95 billion by fiscal 2006.

Data centers provide a service that offers the following: 1) a facility (server room) equipped with a physical durability and security; 2) stable maintenance and operation of the server; and 3) a high-speed and secure Internet access directly to the stable and large-capacity backbone circuits. The market size for data centers in 2001 was estimated at ¥137.14 billion, and this is projected to nearly triple by 2006 to ¥431.72 billion.

An application service provider (ASP) offers a service which enables users to use applications such as packaged software offered by the ASP via the Internet without having to own the application itself. It is mainly used by businesses as part of their outsourcing of system operations and management. The market size for ASP in fiscal 2001 was estimated at ¥6.03 billion, and this is projected to reach ¥107.65 billion by fiscal 2006, growing almost 18 times over.

E-learning is a distance education service that utilizes networks. The market size for e-learning in fiscal 2001 was estimated at ¥29.0 billion, and this is projected to increase by as much as seven times in fiscal 2006 to ¥198.46 billion. A breakdown of the figure for fiscal 2001 shows that the market for school education was ¥2.06 billion, education within the company, ¥8.29 billion, and continuing education, ¥18.65 billion. (Exhibit 1-15)

E-commerce is used by about a quarter of Japanese companies in either their sales operations or their procurement operations, or both. E-commerce can be classified according to two distinct markets, namely, the final consumption goods market and the intermediate goods market. The final consumption goods market provides services for transactions dealing with final consumption goods, such as PCs and household appliances, and services such as fee-based network content. The intermediate goods market is engaged in transactions among corporations dealing with raw materials. The market size for e-commerce involving final consumption goods has been steadily expanding and reached at ¥1,221.8 billion in 2001 (a 96.0% increase over the previous year). A similar steady growth has been experienced in the market for e-commerce related to intermediate goods, which was estimated at ¥53,900 billion in 2001 (a 41.5% increase over the previous year).

Exhibit 1-15 Projection of Market Size for E-Learning

Source: Survey of IT and Business Activity
Entrepreneurial Environment for Information and Communications Venture Businesses

Amidst concerns over suppressed personal consumption and corporate capital investment as well as slumping industrial viability driven by continued corporate restructuring, there are high expectations for entrepreneurial opportunities, which are the source of dynamism in economic society and the driving force behind economic growth and employment creation. In particular, venture businesses that are based on unique technologies and business models have attracted much attention as possessing a strong potential to contribute to the revitalization of the economy.

The largest issue in the start-up phase of a venture business in both information and communications and non-information and communications is the raising of funds, followed by the securing of human resources and sales and marketing. The biggest challenge after the start-up of a venture business in both information and communications and non-information and communications is sales and marketing. The second biggest challenge for an information and communications venture business after the start-up period, however, is the securing of human resources followed by the raising of funds, while for a non-information and communications venture business it is technological development and production, followed by the securing of human resources, as such the securing of human resources is one of the biggest issues in information and communications businesses. With regard to the sources for raising funds, which is the biggest challenge during the start-up phase, information and communications venture businesses tend to raise funds through public agencies, angels, and venture capital slightly more often than non-information and communications venture capital. In addition, in order to deal with sales and marketing, which is the biggest challenge after the start-up phase, information and communications venture businesses often rely on external networks such as alliances with other businesses. Furthermore, in response to the challenge of securing human resources, the majority of both information and communications and non-information and communications venture businesses adopt their own human resources training programs. Notwithstanding this, information and communications ventures have a tendency to respond to the human resources issue by utilizing management connections and employment seminars such as venture business job fairs, and outsourcing personnel.

Exhibit 1-16 Measures to Strengthen Competitiveness of Venture Businesses

Source: Survey of IT and Business Activity
through temporary contracts and specialized agencies. In other words, they have a tendency to secure human resources by integrating external staff.

Once an information and communications venture business has overcome such issues as fund raising and sales and marketing, it will be crucial for it to strengthen its competitive edge by developing its own unique technology and business model in order to achieve a further expansion of its business. According to the Survey of IT and Business Activity, information and communications venture businesses tend to strengthen their competitiveness through partnerships with other companies and through utilizing networks among various other companies more frequently than do non-information and communications venture businesses (Exhibit 1-16). In reality, concentrations of venture businesses composed mainly of information and communications venture businesses are found across the nation. Many of these businesses are growing through their utilization of an incubation facility as their base, which provides them a network function.
# REALIZATION OF EFFICIENT, SIMPLIFIED, TRANSPARENT, AND CONVENIENT PUBLIC ADMINISTRATION

## Promotion of an E-Government and E-Municipalities

Against the backdrop of technological advancement in the globally expanding field of information and communications, Japan is beginning to implement structural reforms that will have an impact on all socioeconomic aspects. Under the circumstances, the government has been promoting various efforts in the field of public administration in order to realize an electronic government (e-government) and electronic municipalities (e-municipalities), which will enable people to obtain information related to public administration from homes and offices, and will allow administrative procedures, such as address and family registrations, filing for tax returns, and paying taxes, to be processed over the Internet (Exhibit 1-17).

A survey conducted with respect to the progress being made in the government’s

efforts to develop an e-government shows that the Cabinet Office and all 12 governmental ministries (including affiliated agencies of the ministries) now have their own Web sites. At the end of fiscal 2001 there were 1,310 homepages sponsored by public entities at all levels of the national government. In terms of electronic administrative procedures for processing applications and notices, there were 590 on-line applications and notices (a 5.3% digitization rate) at the end of fiscal 2001, and it is anticipated that by the end of fiscal 2002 there will be 3,895 on-line applications and notices (a 35.0% digitization rate), and by the end of fiscal 2003, 10,868 on-line applications and notices (a 97.7% digitization rate), completing the digitization of all administrative procedures. In addition, there was one PC available to each 1.2 employees in all national government agencies (excluding national universities under the Ministry of

Exhibit 1-17 Schematic Overview of E-Government—Creation of New Administrative Services
planning and development (13.1%), and integration and development of similar systems (11.8%). On the other hand, in terms of operations and control, the most common measure is the utilization of outsourcing to private sector businesses (33.4%), followed by the sharing of the use of systems with other agencies (13.7%) and the utilization of ASP (6.6%). In addition, with respect to the development of human resources with IT specialization, which is the second necessary condition after the securing of agency-wide financial sources, local public agencies have engaged in staff training in order to foster specialized knowledge by sending employees to external seminars and conducting internal IT seminars (Exhibit 1-21).

Furthermore, in tandem with the digitization of municipalities, the survey suggests that the main issue in medium- to long-term human resource development concerns the abilities demanded of municipal employees will likely shift from a document-writing ability and a work-execution ability to a project-management ability and an agenda-setting and hypothesis-formulating ability. As a result, there will be a need for new staff training programs.

The conditions that are considered necessary by local residents and businesses in order

Exhibit 1-20 Necessary Conditions for the Digitization of Local Governments

Source: Survey of Administrative Information Intensification in Local Government

Exhibit 1-21 Measures Undertaken by Local Governments for Human Resource Development Concerning IT Promotion

Source: Survey of Administrative Information Intensification in Local Government