improvements in terms of the sophistication and efficiency of site investigations by sensors, the efficient management of drainage through the consolidation of big data and analysis techniques, and precise facility operations based on the use of simulation technology and prediction techniques are being promoted.

## 7 Support for Innovations Benefitting Local Route Bus Businesses With the Use of Big Data

## (1) Support for Innovations Benefitting Local Route Bus Businesses With the Use of Big Data

Thanks to a declining population, a dwindling birthrate, and an aging population, the business conditions of route bus businesses particularly in local regions are worsening and giving rise to concerns that public transportation networks will shrink and service levels will suffer further. The stabilization of the management of route bus businesses and the restructuring of sustainable local public transportation networks are pressing issues, such that management improvements by operators and plans for the reorganization of public transportation by local governments are being studied in many localities.

In response, we formulated in FY 2015 a business model for supporting innovations benefitting local route bus businesses based on the possibility of using big data and the methodology applicable to data analysis as studied through a survey on the ICT-based activation of public transportation carried out in FY 2014. Business innovations will be attempted by utilizing big data to conduct market surveys to ascertain the actual state of human mobility and the needs of residents and carry out management analyses to evaluate the state of income and expenditures tied to buses; reorganizing bus routes and schedules; planning management improvement measures; and undertaking implementation, evaluation, and review actions on an ongoing basis.

In verifying the practicability and effectiveness of a business model formulated upon implementing model projects for the city of Niigata and Niigata Kotsu Co., Ltd., which adopted BRT and reorganized their bus routes, as part of a study conducted in FY 2015, it was determined that the adoption and dissemination of this business model in different regions will be promoted based on the outcome of this process.

## (2) Utilization of Automobile Related Information

In order to promote the dissemination of telematics insurance services according to the Future Vision on the Utilization of Automobile-Related Information as formulated in January 2015, verification results were shared and accident reduction effects were ascertained through the cooperation of insurance companies that have begun offering these services ahead of the rest of the industry. Verification and evaluation activities to determine whether close rates pertaining to the purchasing of pre-owned vehicles are a function of the existence of traceability data have been carried out to verify effects with a view to realizing traceability services that are based on the collection and use of vehicular history information. In this way, specific initiatives have been undertaken for the creation of new services and to promote industrial innovations through the use of automobile-related information. We will continue to study frameworks for evaluating the feasibility of introducing new services and for collecting, managing, and providing information for the purpose of realizing new services and otherwise proactively advance the development of an environment for promoting the utilizing of automobile-related information.

## Promoting the Research and Development of Technology

## 1 The Position of Technological Research and Development in Technology Policies and Comprehensive Promotion

In the “Japan Revitalization Strategy” as revised in 2015 (Cabinet decision, June 2015), one of the pillars of the revitalization plan for Japanese industry is the “promotion of science, technology, and innovation” and expectations for the role played by science, technology, and innovation are increasing as seen by the intent to vigorously promote the Comprehensive Strategy on Science, Technology, and Innovation 2015 (Cabinet decision, June 2015).

The MLIT takes into account the government’s overall policy, including the Science and Technology Basic Plan, to further improve the framework for coordination between industry, academia, and government, as well as the comprehensive promotion of cross-sectoral technological research and development, in accordance with the Third Ministry of Land,