Silviase/jgov_v1.4_full_ann huggingface dataset:
### b. Mobile communication

A look at the state of Japan’s mobile infrastructure shows the following: in comparison with other countries around the world, with regard to the 3G ratio (97.2% in 2010) and the mobile-internet-spread ratio (89.5%, in 2010), Japan is ahead of the others (Figure 1-3-1-2); however, with regard to the mobile-phone-spread-ratio, Japan is 23th of the 27 countries investigated. Korea, whose mobile-internet-spread ratio is 93.0% in 2010, 3G ratio is 81.3% in 2010, and mobile-phone-spread ratio is 105.4%, is competing with Japan in the mobile communication field. A comparison of the statistics of 2007 with those of 2009 shows that a large number of countries, including Australia, have improved both their 3G ratio and mobile-internet-spread-ratio. What has been so far described suggests that Japan still has challenges in the promotion and utilization of general-purpose technologies in both fixed-line and mobile fields, even if the unique Japanese mobile-phone-market-structure due to the difference in “pre-paid” phone-business leads to Japan’s relatively low mobile-phone-spread ratio.

## (3) Utilization of ICT

### a. Individual users

International comparison of communication tools (e-mail and others), e-commerce, and internet banking — most frequently used by individual users — shows the following: With regard to e-commerce among the three

Figure 1-3-1-1 Fixed Broadband Spread Ratio, FTT Ratio, and Per Capita Internet Spread Ratio

$ ^{*} $ 27 Countries surveyed

(Japan, Korea, China, Singapore, Italy, Canada, Austria, Netherlands, Finland, Switzerland, Australia, France, US, New Zealand, Portuguese, UK, Germany, Spain, Belgium, Denmark, Sweden, India, Brazil, Russia, South Africa, Norway, Malaysia)

(Source) MIC "Research and Survey on International Comparison and Trends in Information and Telecom Industries and Services" (2012)

Figure 1-3-1-2 Spread Ratio: Mobile Internet, 3G, and Mobile-phone

$ ^{*} $ 27 Countries surveyed

(Japan, Korea, China, Singapore, Italy, Canada, Austria, Netherlands, Finland, Switzerland, Australia, France, US, New Zealand, Portugal, UK, Germany, Spain, Belgium, Denmark, Sweden, India, Brazil, Russia, South Africa, Norway, Malaysia)
Figure 1-3-2-2 Trends in Export Coefficient of ICT-related Industries

(Source) MIC "Research and Survey on ICT's Effects on Economic Growth" (2014), using MOF "Foreign Trade Statistics"

Figure 1-3-3-1 Comparison of Top 100 Hardware Manufacturers by Location of Headquarters

(Source) MIC "Research and Survey on International Comparison and Trends in Information and Telecom Industries and Services" (2012)

## (2) Performances of ICT-related corporations in sales

a. Comparison of hardware-related corporations: by-country/region (headquarter location)-analysis of the performance of the corpora-

## tions in the top-100 sales ranking

The analysis of the hardware-sales ratio and sales-growth rate of the ICT-related corporations show the following: while the Korean or Taiwanese ICT-related hardware corporations have been continuously growing; those in the US, Europe and China have shrank; particularly, the Japanese hardware corporations have shown a sharp decline in sales — showing 13.5% growth in 2009, but a 18.4% decline (Figure 1-3-3-1) in 2010.

### b. Comparison of software-related corporations: by-country/region (headquarter location)-analysis of the performance of the corporations in the top-100 sales ranking

The analysis of the software-sales ratio and sales-growth rate of the ICT-related corporations shows the following: while US, European, and Korean corporations accomplished positive or even growth in each ratio, Japanese corporations experienced sub-zero growth (3.8% below-zero). (Figure 1-3-3-2)

### c. Country/region (headquarter location) distribution of the top-100 ICT service Vendors

Analysis on the country/region-distribution (head-quarter location) of the top-100-sales ICT service vendors show the following: while US, European, and Chinese vendors accomplished positive growth, the sales-growth (from the previous year) rate of Japanese vendors is sub-zero (0.3% below-zero) (Figure 1-3-3-3); in addition, in the ICT service market, where US vendors have a large share, the sum of the share of Japanese vendors is as small as that of European vendors — however, not all US vendors have penetrated into the global market and obtained a certain market share, because of obstructions such as difficulties in localization of their services or products.
Figure 1-3-3-2 Comparison of Top 100 Software Manufacturers by Location of Headquarters

(Source) MIC "Research and Survey on International Comparison and Trends in Information and Telecom Industries and Services" (2012)

Figure 1-3-3 Distribution of Top-100 Hardware Providers by Headquarters/Region

Based on MIC "Research and Survey on International Comparison and Trends in Information and Telecom Industries and Services" (2012)

## (3) Global share of ICT industries

### a. Globalization of telecom operators

As for the Japanese telecom operators, while some of them have actively developed their overseas business, the ratio of their overseas-business to the total business is generally low; on the other hand, many of the other countries' telecom operators, particularly European operators who occupy the high positions in the global-sales ranking, have actively developed their global businesses.

The sales-to-GDP ratio and the number of overseas subsidiaries show the following: European, Middle East/Africa, or Asian major telecom operators have achieved a high sales ratio to the GDP of their home countries; it suggests that such telecom operators put emphasis on overseas business; particularly, European operators have grown in sales by acquiring overseas operators.

### b. Globalization of ICT vendors

The overseas business-sales ratio to the total sales of the major telecom operators around the world show the following: Japanese major ICT vendors, in terms of overseas business development, have lagged behind US or European major players; US operators, generally having a large total sales and, at the same time, a global share as large as 25.7% (Figure 1-3-3-4), have a relatively high overseas sales ratio of 47.7% despite their large domestic sales of approximately 6.9453 trillion Japanese Yen; Japanese operators with smaller sales than US operators, are domestic-market oriented, having a global share of 8.1%, and an overseas-sales-ratio-to-total sales of 20.1%; on the other hand, European operators, with smaller sales than those of US or Japanese operators, are aggressively developing their overseas business, having a global share of 6.1% and an overseas-sales-ratio-to-total sales of 57.3% which is higher than that of North American major operators.

### c. Globalization of manufacturers

### a. Analysis on ICT global competitiveness indices

The analysis of the five-year trends in the global competitiveness of Japan, Asia/Pacific, Europe, and North America shows the following: the Asia/Pacific's export share has increased (Figure 1-3-3-5), and also its market shares for TV sets, mobile-phones and PCs have increased. Such situations suggest that Asia/Pacific has gained not only in export-competitiveness but also in corporate-competitiveness through the im-
Figure 1-3-3-4 Sales volume and overseas-market-sales ratio of major ICT vendors

Prepared based on Gartner's survey

Figure 1-3-3-5 Five-year Variation of ICT International Competiveness Index

Based on MIC "ICT Global Competitiveness Indices"
tions— for example, the majority of the sales growth of Huawei (China) was accomplished in the market in the emerging/developing countries in Asia/Pacific, Middle East/Africa.

## (ii) Development of smart-infrastructure (ICT-built-in social infrastructure)

Developed or emerging/developing countries around the world, based on the key-concept of smart-city/smart-community, have promoted the development of social infrastructure (utility or rail-road system) with ICT built-in. Furthermore, those countries have put efforts in packaged-export of social infrastructure with ICT under the government-business collaboration. The global market-size of ICT related goods or services included in social infrastructure is expected to grow to about 1.3 trillion yen in 2010, especially in Asia/Pacific market (Figure 1-3-3-7); such social-infrastructure related ICT market, providing new growth potential, has attracted various players.

## (6) MIC's activities for global sales of ICT systems

MIC has already taken actions for the global sales of the ICT systems in which Japan has advantages, such as the ICT systems for disaster-protection/environmental problems or the Japanese terrestrial digital television broadcasting systems.

Section 4

## “Problem Solution” through ICT Innovation

### 1. Industry-by-industry Analysis of Growth Effect of Information Capital Accumulation

In order to make an industry-to-industry comparison of information investment, the “informatization progress index” is applied — an index calculated by the estimated difference of the marginal-productivity in an industry: the numerical inverse of the difference between the estimated marginal productivity of the ordinary capital and that of the information capital. The index indicates the progress of informatization in an industry reflecting the contribution of the added-value, in addition to the absolute stock value of the information capital stock.

The informatization-progress-index analysis shows the following: the transportation and communication industry, the electrical machinery manufacturing industry, and the finance and insurance industry are ranked in the top three in the informatization-ranking (Figure 1-4-1-1). Note that the finance and insurance industry's index has been declining since 2006; on the other hand, the agriculture, forestry and fisheries industry, ceramic, stone and clay products manufacturing industry, and the textile manufacturing industry have lagged behind in terms of informatization investment.

Figure 1-3-3-7 Global ICT-related Market induced by Smart-Infrastructure Investment (Utilities, Transportation, Building, E-government)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (year)

Based on MIC "Research and Survey on International Comparison and Trends in Information and Telecom Industries and Services" (2012) and Pike Research "Smart Cities 2011"
Figure 1-4-1-1 Trends in Informatization Investment Rate in Industries

Based on MIC "Research and Survey of ICT's Effect on Economic Growth" (2012)

### 2. Evidence shown in the International Comparison of Contribution of Information Capital Accumulation to Economic Growth

Analysis on the index, calculated through the same method described above using the estimated marginal productivities of the ordinary capital and the information capital and their difference, show the following: in terms of information investment, Japan (its index is 19.2) is behind the U.S. (167.7), the U.K. (157.4), and Australia (285.5) (Figure 1-4-2-1); A close look at the trends shows that Japan, already behind the other countries before 2000, has lagged much farther behind since 2006; with regard to the marginal productivity difference of the ordinary capital and the information capital, the comparison of Japan's case to that of the U.S. shows that the difference in Japan in 2006 is the same as that in the U.S. in the early 1990s, indicating that Japan's lag relative to the U.S. is more than 10 years.

As a result, the analysis shows that Japan is not only lagging behind in terms of the growth in the absolute value of information capital stock, but that even when the added-value is included Japan is behind the U.S., the U.K., and Australia.

### 3. Growth Accounting Analysis on ICT's Contribution to Economic Growth

The analysis by the growth-accounting analysis-procedures of the contribution to the GDP growth rate of the TFP and information capital shows the following: in all the countries surveyed, the TFP and information capital have contributed to the economic growth; the contribution ratio of the ICT factors to the TFP growth rate is positive in almost all the periods, proving that ICT positively contributes to the productivity (TFP) growth (Figure 1-4-3-1). When it is acknowledged that the accumulation of information capital or the productivity improvement (TFP) by ICT utilization contributes to economic growth, the enhancement of the investment in ICT or the promotion of ICT utilization will clearly be the challenges for the economic growth of Japan, which is facing the reality of an ageing society with a declining birth rate.

### 4. Towards Economic Growth through ICT Investment and Utilization

While ICT capital contributes to economic growth in two different paths: directly — its accumulation directly drives the economy, and indirectly— through the im-
Figure 1-4-2-1 Annual Variation of Informatization Investment Index in Major Countries

$ ^{*} $ The data later than 2006 for Japan, and the data earlier than 1991 for Germany (the year of reunification) is unavailable due to the lack of EU-KLEMS data.

Based on MIC "Research and Survey of ICT's Effect on Economic Growth" (2012)

Figure 1-4-3-1 Contribution-distribution of Economic Growth-rate and TFP Growth-rate

$ ^{※} $ The data later than 2006 for Japan is unavailable due to the lack of EU-KLEMS data.

Based on MIC "Research and Survey on ICT's Effects on Economic Growth" (2014)

provement of TFP it indirectly drives the economy, Japan is facing problems in terms of these two paths.

The growth of ICT investment and growth of TFP shown in the general trends in the U.S. since the 1990s indicates that in the U.S. a positive cycle is established in such a way that ICT investment drives TFP improvement, the improved TFP drives the return of capital, and the improved return of capital drives ICT investment. On the other hand, Japan, where the TFP has not been improved as much as in the U.S., is considered in a negative cycle in which ICT investment is not able to drive the TFP, and such ICT investment unaccompanied by TFP improvement, through the decline in the return of investment, results in the decline of ICT investment. It
means that Japan possibly fails to enjoy the economic growth that it would naturally receive.

As mentioned above, the combination of the acceleration of the ICT investment and the improvement of TFP induced by ICT utilization will be critical to the economic growth of Japan that is experiencing a reduction in its labor force. The next paragraph will, through the analysis of the replies of the business questionnaire, show what factors are considered to enable ICT investment or ICT utilization to contribute to economic growth.

### 5. ICT Utilization and Its Effects in Businesses

In order to see the difference in corporations that succeed in growing through the ICT utilization and corporations that do not, and furthermore how or through what factors, such as investment to intangibles, the ICT introduction in a corporation affects its productivity, or what effect the ICT-infrastructure introduction or utilization had on the management performance and business performance of the corporation, the questionnaire-analysis show the following in conjunction the types of corporate structure/business process innovations being conducted:

## (1) The progress of ICT introduction and its effects

The analysis on the progress of the ICT introduction and its effects shows the following: the more the ICT introduction proceeds in a corporation, the more positive effects they enjoy and the more they accomplish business/organization innovations (Figure 1-4-5-1). In any business sector, the larger an organization is, the greater the progress of the ICT introduction and the innovations, and the greater number of benefits the organization enjoys. The ratio of ICT utilization is higher among manufacturing corporations and large commerce/whole sales/retail corporations (note they are large corporations), and they enjoy more positive effects; on the other hand, for health/medical/welfare (note, they are small and medium-sized corporations) or agriculture, forestry and fisheries corporations (note, they are small and medium-sized corporations), the ratio of ICT utilization is low and fewer positive effects are enjoyed.

## (2) ICT-introduction and business innovation activities and ICT introduction effects

The analysis of the relationship of ICT introduction and business innovation and the effects of ICT introduction shows the following: the combination of ICT introduction and business innovation increases the positive effects (Figure 1-4-5-2); the corporations that promote the combination of ICT introduction and business innovation are more likely to grow than the corporations seeking growth only by ICT investment, which is evidence that the management activities such as corporate structure reform, human resource fulfillment and validation of ICT-introduction are likely to result in productivity

Figure 1-4-5-1 Comparison of Contribution of ICT introduction to Corporate Innovation or Efficiency by Industries and Corporate-size

Based on MIC "Research and Survey of ICT's Effect on Economic Growth" (2012)
Figure 1-4-5-2 Relation of ICT-introduction Effects and ICT-Introduction Extent, ICT Investment Extent

Based on MIC "Research and Survey of ICT's Effect on Economic Growth" (2012)

Figure 1-4-6-1 ICT-introduction in Educational Organizations and Its Effects

$ ^{\times} $ ICT introduction (high) means Industry average of ICT-introduction score is 4.6 points or more, and (low) means 4.6 points below.

Based on MIC "Research and Survey on ICT's Effects on Economic Growth" (2012)

growth.

Corporations are required to not only seek growth by ICT investment, but to promote corporate innovations at the same time.

### 6. ICT Utilization in Education Sector and its Effect

The analysis, based on the results of the previous analysis of businesses, of how the ICT-utilization effects are acknowledged differently in the educational organizations that have actively promoted ICT introduction and in those that are not active in ICT introduction shows that the more an organization is active in ICT utilization, the more it enjoys the ICT-utilization effects (Figure 1-4-6-1).
Figure 1-4-9-2 Comparison of the Responses of Local Governments and Residents to the question: why are public ICT services not frequently used?

$ ^{*} $ The value of telemedicine is a reference data due to the small number of samples.

(Source) MIC "Research and Survey on Trends of Users' Recognition through the Improvement of ICT Infrastructure and Services (2012)", and MOF "Research and Survey on the Current State of ICT Utilization and its Economic Effects" (2012)

## (4) Toward the frequently-used ICT services in public sectors

The surveys so far presented are summarized as follows: each of the services is not so well utilized, and furthermore, in the first place, not so well recognized; the most frequent answer to the question, "Why you do you not want to use the service?" is "Satisfied with the conventional system, feeling no inconvenience" suggests that the respondents who do not want to use the services do not perceive any advantage significant enough to justify abandoning the conventional system; on the other hand, among those who have used a system, the satisfaction ratio is generally high; the analysis so far suggests that for the utilization of ICT services, in addition to the activities to improve the recognition of the services, it is critical to communicate the benefits of the services to those who have not used them in an easy-to-understand manner.

## Section 5

## I CT: Driving Force of Local Economy

### 1. Effects on Local Economy Growth of Building and Global Deployment of a New-type Community by All-round Application of ICT

The Ministry of Internal Affairs and Communications, aiming to create new-types of local communities, has held meetings of the “Panel for ICT-based Community Development and Globalization” since December 2011 (refer to (3)), and recently conducted poll-surveys targeting local governments to see how they recognize the ICT-based community development.

## (1) State of ICT-utilization for community development

First, the analysis on the preparation of strategies for local community administration shows that only 30% of
Figure 1-5-1-1 State of the strategy-preparation and plan-execution for the local-community management

Figure 1-5-1-2 Data-utilization in strategy-preparation and plan-execution

Figure 1-5-1-3 ICT Introduction in Data Utilization

(Source) MIC "Research and Survey on the Current State of ICT Utilization and its Economic Effects in Local Community" (2012)

Figure 1-5-1-4 State of the activities for ICT-based local community development

(Source) MIC "Research and Survey on the Current State of ICT Utilization and its Economic Effects in Local Community (2012)"

the local governments have already reached the phase of study or preparation of such strategies, and about 60% are still in the phase where they, although recognizing the necessity of such strategies, have not started studies (Figure 1-5-1-1); out of the local governments that responded that they are in the phase of study or preparation, concerning the question of whether data-utilization was being employed in the strategy study or preparation, 20.8% replied yes, and 65.1% replied that they, although recognizing the necessity of data-utilization, are not in such a phase; concerning whether ICT was being utilized in n data-utilization, 6.6% replied yes, and the 85.9% replied that they, although recognizing the necessity, are not in such a phase (Figure 1-5-1-2 and 1-5-1-3).

The result of the survey is summarized as follows: many of the local governments recognize the necessity of strategies for local community development, and at the same time, the necessity of the data-utilization for such strategy study or preparation.

Figure 1-5-1-5 What is the most promising field in ICT-based local community development?

(Source) MIC "Research and Survey on the Current State of ICT Utilization and its Economic Effects in Local Community (2012)"

## (2) Premises and challenges for ICT-based local community development

The analysis on the activities of the local governments with regard to ICT-based local community development shows the following: while only 5.7% have such activities (have already started such activities or been in the process of preparation), local governments have high expectations for ICT-based community development, judging from the fact that about 70% responded favorably, and 65.9% replied that they are always paying attention on the issue; however, many of these local governments are still in the preliminary phase and are far away from the realization phase (Figure 1-5-1-4).

The analysis on the fields expected as the targets of ICT-based community development shows that many of the local governments think ICT should be introduced in such fields as “Security and Safety” (40.9%), “Healthcare, Education and Daily life” (34.2%), and “Agriculture, Forestry, and Fisheries and Regional Industries” (29.8%) (Figure 1-5-1-5)

The analysis on the challenges of the ICT-based community development shows the following: while many of