Silviase/jgov_v1.4_full_ann huggingface dataset:
(4) Creation of new businesses and services (Innovation)

(Necessity of innovation)

While there are various definitions of innovation, the definitions do not limit to simply technological innovation and a new approach that gives impact to the economy and society.

Based on these definitions, it is not only the manufacturing industry, but also necessary approaches in all industries. While Japan has a tendency of population decline, the reduction of demand associated with population decline is a major problem. With the innovation, it is extremely important to create new services and values in order to increase the demand.

What are the efforts taken by businesses to create innovation? The following introduces survey results.

(Consciousness toward the securement of advanced human resources)

The results of business survey by MLIT indicate that the businesses place the most importance on the securement of human resources (the securement of specialized personnel and improvement of working condition) for the creation of innovation. This indicates that they have a strong awareness of securing advanced human resources that become the source of innovation (Figure 2-3-21).

Source) Business Survey by MLIT
In addition, although the innovation is not equal to research and development, when we conducted a survey by focusing attention on the research and development that operate as part of innovation, the securement of human resources is one of the top reasons for considering the location of a research and development center after all. This also indicates the awareness of private businesses toward the securement of advanced human resources (Figure 2-3-22).

Also, “the exposure with other industries or academia” account for 14.7% of the overall business categories, which did not show a high level of awareness. However, the analysis of the same item by narrowing down in the manufacturing industry indicates that the percentage is over 20%. In the manufacturing industry, it was confirmed that they have a greater consideration on “the importance of communication with other companies” though it is smaller compared to other industries (Figure 2-3-23).

(What is expected to the infrastructure for the improvement of productivity by innovation)

As for the innovation, the results show that “the convenience of commuting for securing employees” is higher than “reduction of traveling time” and “reduction of traveling cost” for what they expect to infrastructure. This suggests that in order to produce new products and services, they are sharply conscious of securing human resources (Figure 2-3-24).

(Example of an approach by a large enterprise)

■ The domestic bases are mother plants and innovation base

The 2015 White Paper on the manufacturing industries by the Ministry of Economy, Trade and Industry also reports that they consider domestic facilities as a base to differentiate with overseas bases (mother plants and innovation base) (Figure 2-3-25).

The results of interviewing the major cosmetic manufacturer, which decided to make a capital investment (the construction of research center and factory) domestically, indicate the following awareness and various types of awareness toward innovation base and mother plants.
• An emphasis on the accessibility of location site with lively space and surrounding environment (research center)

• In consideration with traveling abroad, an emphasis is placed on the accessibility to airport (research center)

• In addition to the function as a mother plant, Locating Plant together with the logistics facilities makes it possible to dramatically reduce the number of days when shipping to stores. (Plant)

## (5) Response to the aging society

When we surveyed how the businesses are aware of the response to the aging society, the overall results showed that they focus on the social participation of the elderly (they recognize the elderly as a bearer). On the other hand, the percentage of the answer about the activation of services for the elderly (they recognize the elderly as a market) is about 60% to the answer seeing their social participation.

The analysis by business categories indicates that daily lives type of manufacturing industry, wholesalers and retailers, restaurant and lodging industry, medical and welfare and other (service industry) have a strong tendency to consider the elderly as a market compared to other industries.

Figure 2-3-26

What they place emphasis on the response to aging society.

(Note) A total of all business categories includes 76 businesses that could not be categorized. Source) Business Survey by MLIT
Next, when we survey what they seek for the infrastructure to response to aging society, while they indicate a strong awareness toward barrier-free and improved accessibility (30% to 50%), they have a relatively lower expectation toward service efficiency with compacting and network (nearly 20%) (Figure 2-3-27). Even so, as described in (1) the improvement of productivity in tertiary industry, the awareness on compacting and network (improving efficiency with the aggregation of market) accounts for about 11%, which is on a high note, giving an impression that they started to recognize compacting and network as a response to aging society to a certain degree.

## (6) Information provision for infrastructure development

In order to maximize stock effects, it is desirable for private businesses to understand the infrastructure development information to consider business strategy.

To that end, as the result of surveying what private businesses feel dissatisfied with the information provision of infrastructure development, the most common answer was “Nothing in particular”, which comprises about half (Figure 2-3-28).

They are dissatisfied with “the method of dissemination”, which is the most common answer, followed by “information accuracy” and “disseminated contents”. As for “the time of dissemination”, the results account for about 10%, giving the impression that they feel appropriate to a certain extent.

When we asked for their opinions about information provision, their answers include:

• It is difficult to understand information on websites (agriculture)

• I do not know how to obtain information (manufacturing industry).

• I prefer using social networking services (SNS) and emails for dissemination (manufacturing industry)

• Presentation at train stations, etc. (manufacturing industry)

## (7) Awareness of social responsibilities

The survey results on the awareness of CSR (corporate social responsibility) among businesses showed their strong awareness on environmental measures and fair business execution. On the other hand, the analysis by business categories indicates that the manufacturing industry and transport and communication industries are particularly conscious of “environmental measures” and the mining and construction businesses are particularly conscious of “regional disaster prevention and reduction activities” while the medical and public welfare industries are especially conscious of “regional disaster prevention and reduction” and regional social welfare activities, indicating unique consciousness by each business category (Figure 2-3-29).
Figure 2-3-29 What they place emphasis on corporate social responsibilities.

(Note) A total of all business categories includes 76 businesses that could not be categorized.

Source) Business Survey by MLIT

## (The elimination of traffic jam and the promotion of modal shift)

According to the Contractor Survey of the Ministry of Land, Infrastructure, Transport and Tourism, their expectations on infrastructures to take measures for corporate social responsibilities include the elimination of traffic jam (nearly 50%) and the promotion of modal shift (about 18%) (Figure 2-3-30). While a relatively small number of respondents mentioned the promotion of modal shift, compared to other items, the logistic industry in particular is promoting the effort to streamline logistics such as joint transportation and modal shift, which contribute to the elimination of traffic jam through the coalition of cargo owners and logistic companies, in order to response to the shortage of bearers, besides environmental measures.

In addition, some corporations are promoting the streamlining of logistics such as more advanced modal shift. By introducing these utilization cases, it is necessary to disseminate their efforts widely to promote such efforts among a wide range of businesses concerned.

## ■ Cases of modal shift

• Nestle Japan Ltd., Zenkoku Tsuun Ltd. and Japan Freight Railway Company, etc.

While the companies are making modal shift to railways and coastal shipping, they are promoting the standardization of palletizing operation (the standardization of cargo handling method, which products are loaded on pallets) and the promotion of utilizing diverse human resources such as women through the release of external drivers of childcare facilities, as well as environmental measures and countermeasures for the shortage of long-distance drivers in a comprehensive manner.
• SHIMAMURA Co., Ltd., Nohhi Logistics Co., Ltd., Japan Express Logistics Corp., etc.

After unpacking and unloading import cargos, the companies converted the empty marine containers for domestic cargos and switched the transport of clothing and bedding from truck to railway. In addition, they load machinery on empty containers as export cargos and transfer to Tokyo by railway for export.

## (8) Awareness on disaster prevention measures

Since five years have passed from the Great East Japan Earthquake, we surveyed the consciousness of the current disaster prevention measures. As the result, nearly 70% of the average of all business categories responded that they are still highly conscious or they raised their consciousness, compared to the consciousness immediately after the earthquake (Figure 2-3-31). After all, even five years have passed after the earthquake, the businesses still strongly remember the Great East Japan Earthquake. Also, after the Great East Japan Earthquake, there seems to be an impact of major disasters such as sediment-related disasters and heavy rainfall/floods.

Next, the survey on the awareness of corporate activities

on disaster prevention measures revealed that they are conscious of the promotion of disaster prevention performance of their own company's facilities, followed by the system development of non-structural measures and the development of BCP (Business Continuity Plans) (Figure 2-3-32).

On the other hand, as for the survey on what they seek from the infrastructures as a countermeasure for above, the response, “the early recovery at the time of disaster” exceeded “the promotion of disaster prevention performance” (Figure 2-3-33).
We can infer that this shows the consciousness of private businesses that they experienced major disasters such as the Great East Japan Earthquake and they are somewhat prepared for unavoidable disasters and seek early recovery after disasters.

## (9) Expectations on inbound tourism

The number of tourists visiting Japan from abroad is increasing yearly and people’s expectations on the economic front are on the rise. To that end, we surveyed what they place emphasis on corporate activities for inbound tourism.

The business category that indicated the most active awareness was the restaurant and lodging industries. As an expectation on so-called binge shopping, although we also anticipated that the wholesalers and retailers show a high expectation, the results were not so different from the total of all business categories (Figure 2-3-34).

Here, the analysis of their expectations on infrastructures indicates that they are seeking the construction of broad sightseeing routes, the functional enhancement of traffic facilities (improvement of transfer convenience) and the enhancement of information provision for foreigners (Figure 2-3-35).

Abobe expectations are stronger than the increase of transportation capacities and the reduction of travel costs. Other than increasing capacities, the results indicate their awareness that they have not been able to fully lead foreign tourists to all over the country.

Source) Business Survey by MLIT

Figure 2-3-35 What is sought for infrastructures to respond to inbound tourism

Source) Business Survey by MLIT
in the eleven-year period between 2010 and 2020 $ ^{Note\ 57} $ .

This data point establishes that the global demand for infrastructure is huge and growing.

## (Shortage of funds for infrastructure investments)

At the same time, the gap in funding supplied in response to soaring demand (in other words, the infrastructure gap) is recognized as an international issue $ ^{Note58} $ . In emerging and developing countries, it is estimated that there is an infrastructure gap of USD 452 billion per year $ ^{Note59} $ . Just dealing with a lack of funds would be difficult given the dire fiscal situation that arises from any attempt to cover costs with only domestic funds, such that the use of private funds is believed to be necessary.

## (Significance of the overseas development of infrastructure systems)

While the above describes what is happening in terms of the global demand for infrastructure, the overseas development of Japanese infrastructure systems would be advantageous for both (i) the seller (Japan) and (ii) buyers (other countries).

## (i) Achieving Japan’s economic growth

The overseas development of infrastructure systems will, as indicated in chapter 1, boost GDP and GNI and contribute to Japan's economic growth. By demonstrating the stock effects of developed infrastructure in local areas, we believe that the overseas development of infrastructure systems will also help in terms of the overseas expansion of Japanese companies.

By cultivating markets utilizing the IoT and other new technologies and otherwise proactively capturing the soaring overseas demand for infrastructure, outcomes that can help reinforce Japanese corporate structures and fortify price competitiveness and productivity can be expected.

If we look at the magnitude of the production spillover effect by industrial sector Note 60, we see that transportation machinery (2.77) is second only after steel

(2.79) (Figure 3-1-2) Note 61. Outside of the manufacturing industry, construction (1.95) also rates highly. While these
## Point 4 Promoting the overseas development of the construction sector

In FY 2014, Japanese construction companies posted a record-high JPY 1,815.3 billion in orders from overseas clients (Figure 3-1-9) as a key industry for the overseas development of Japanese infrastructure. In light of expectations that the construction sector will continue to play a significant role, initiatives in terms of the development of a business environment and troubleshooting will be implemented.

Source) Developed by the MLIT based on materials provided by the Overseas Construction Association of Japan, Inc

## Point 5 Reinforcing support for small and medium businesses with ties to the MLIT and the overseas development of their technologies

It is important to unlock latent demand and otherwise proactively provide support, such as by endeavoring to stimulate overseas development on the part of small to medium-sized enterprises and creating opportunities for making forays into overseas markets. Business-matching initiatives shall be carried out in conjunction with the provision of opportunities to engage in top-level sales activities for technologies belonging to small and medium-sized companies in connection with large-scale infrastructure projects.

## Point 6 Enhancing competitiveness in terms of price and the speed at which client needs are accommodated

The perspectives of partner countries will be thoroughly considered, system-expansion measures as they relate to the deployment of quality infrastructure partnerships will be utilized to the fullest extent possible, and initiatives to reinforce competitiveness in terms of price and speed will be pursued.

## Point 7 Reinforcing promotional activities to effectively elevate the profile of quality infrastructure

In engaging in the overseas development of infrastructure, it will be essential to proactively elevate the profile of quality infrastructure from which Japan derives a competitive advantage for top-level government leaders, high-level public officials, and the citizens of partner countries. Effective, strategic public relations activities shall be undertaken accordingly.

## Point 8 Initiatives for new overseas development projects based on the use of information communication technology and other new technologies

Proactive endeavors by Japan to highlight original, superior infrastructure systems, such as by promoting the Internet of things, artificial intelligence, sensors, and other elements of information communication technology; utilizing big data and otherwise deploying new technologies; and harnessing new transportation systems and engaging in advanced forms of urban development, are important.

## Point 9 Initiatives to enable Japanese companies to undergo further evolution as global enterprises

In order to further incorporate the huge overseas demand for infrastructure, it is important that Japanese companies reinforce corporate structures and business-promotion systems tied to globalization and clarify more powerful overseas
## Column

## (The state of entries and departures)

If we look at the percentages relating to the utilization of airports, ports, and harbors as ports of entry for inbound foreign tourists by airport of entry for major countries, we can see that Narita Airport welcomes the biggest numbers of inbound foreign tourists regardless of nationality, with the exception of tourists from South Korea. Tourists from the United Kingdom, the United States, and Australia overwhelmingly chose to arrive at airports in the Tokyo metropolitan area, namely Haneda Airport and Narita Airport. In contrast, many tourists from the Asian region—namely China, Taiwan, South Korea, and Thailand—also chose to arrive at Kansai International Airport. As tourists from South Korea and Taiwan often take regular flights to regional airports, airports of entry have become diversified. With many tourists from South Korea in particular also arriving at ports and harbors, modes of entry are varied. The regions within Japan that welcome foreign tourists from nearby Asian countries are likewise diversifying. For example, more Thai visitors arrive at New Chitose Airport than tourists from other countries.

## Realization of the era of welcoming one million foreign visitors by cruise ships

MLIT has accelerated improvement of the environment for reception of cruise ships and tried to realize the era of welcoming one million foreign visitors by cruise ships in 2020, in order to revitalize regions through
travels to Japan by cruise ships under the Action Program toward Realization of Japan as a Tourism-Oriented Country.

For this purpose, we set up a one-stop counter in the Harbors Bureau, responded to inquiries from cruise shipping companies in a unified manner, and advanced initiatives in cooperation with the National Cruise Vitalization Conference and in partnership with the private sector, such as promotions through meetings for business negotiations involving the participation of cruise shipping companies and port administrators, enhancement of websites that integrate data from port facilities and the tourist information around ports of call, improvements to the piers that accept large cruise ships, and establishment of the notification system for temporary tax-free shops at the piers for cruise ships.

Partly because of these efforts, the number of calls at ports hit a record high 1,452 (preliminary numbers) in 2015 (Figure 3-1-14). In addition, the

Figure 3-1-14 Number of port calls made by cruise ships at Japanese ports

(Note) Figures for 2015 constitute preliminary numbers obtained by asking port administrators and are subject to revision in the future.

Source) MLIT

foreign visitors to Japan by cruise ships exceeded one million a year in December of the same year, achieving the target number five years earlier than we planned (Figure 3-1-15 and 3-1-16).

Cruise ships have called at ports throughout Japan, bringing high tourism consumption and prosperity to each region and contributing to the vitalization of local districts. Furthermore, when the ships have visited ports, local high school students have guided the foreign tourists to sightseeing places, so the calls of cruise ships have provided opportunities for young human resources in Japan to rediscover the attractiveness in local districts and for cultural exchanges between the residents and foreign visitors.

In the Tourism Vision Design Council for supporting the tomorrow of Japan held on March 30, 2016, a new goal to achieve five million foreign visitors by cruise ships in 2020 has just been set. From now on as well, MLIT will aggressively take the initiative in both non-structural and structural elements in order to vitalize the local districts through cruise promotion.

Figure 3-1-15 Number of Foreigners Who Enter Japan by a Cruise Ship (rounded figures)

(Notes) 1 For the years up to 2014, rounded figures are based on numbers of foreign visitors as derived from totals supplied by the Ministry of Justice's Immigration Bureau (excluding the crews).

2 Where a cruise ship on a single cruise trip makes port calls at multiple ports, the number of foreign visitors is calculated by deeming that each visitor enters the country once (rather than deeming that a visitor enters the country every time a port call is made at a different port).

Source) MLIT

Figure 3-1-16 Ceremony to commemorate of welcoming one million foreign visitors to Japan by cruies ships (held in the Central Pier Cruise Center at Hakata Port on December 8, 2015)

Source) MLIT