Silviase/jgov_v1.4_full_ann huggingface dataset:
## (2) Gross domestic product (GDP)

### ● The real GDP of the ICT industry in 2014 accounted for 10.8 percent of all industries

The nominal GDP of the ICT industry rose slightly in 2014 by 0.4 percent year-on-year to 37.1 trillion yen. Conversely, the real GDP of the ICT industry in constant 2005 values slipped 0.8 percent year-on-year in 2014 to 51.1 trillion yen. The nominal GDP has trended downward since the 2009 financial crisis, but the real GDP has been on a general upward direction (Figure 5-1-1-3).

Looking at the size of nominal GDP of the main industries finds that the ICT industry’s nominal GDP accounts for 7.9 percent of the combined nominal GDPs of all industries and is the second largest after the wholesale industry. The growth rate of the ICT industry in terms of nominal GDP rebounded to plus 0.4 percent over 2013 and 2014. Examining the real GDPs of the main industries finds that the ICT industry’s real GDP accounts for 10.8 percent of all industries, making it the largest of all major industries (Figure 5-1-1-4).

## (3) Employment

#### I CT industry employment totaled 4.124 million in 2014 accounting for 7.2 percent of total employment in all industries

The ICT industry employed 4.124 million people in 2014 (up 1.1 percent from the previous year), accounting for 7.2 percent of total employment in all industries. Employment declined by 7.4 percent from 2013 in the ICT-related construction sector, by 2.8 percent in the ICT-related manufacturing sector, and by 1.3 percent in the Internet-related services sector. But employment in the communications sector and the video, audio, and text information production sector increased, by 5.5 percent and 1.7 percent respectively (Figure 5-1-1-5).

Figure 5-1-1-3 Transitions in the nominal GDP and real GDP of major industries $ ^{6} $

ICT industry - Iron and steel - Electrical equipment (excluding ICT devices) - Transport equipment

Construction (excluding construction of telecom facilities) - Wholesale - Retail - Transport

(Source) "Study on Economic Analysis of ICT," MIC (2016)

Figure 5-1-1-4 Nominal GDP and real GDP of major industries

(Source) "Study on Economic Analysis of ICT," MIC (2016)

Figure 5-1-1-5 Transitions in ICT industry employment

(Source) "Study on Economic Analysis of ICT," MIC (2016)
### 2. ICT industry contributions to the national economy

## (1) ICT industry's economic spillover effects

● The ICT industry contributes the largest economic spillover effects of all industries in terms of added value and employment inducements

The ICT industry’s real domestic production in 2014 was 98.3 trillion yen. The industry’s economic spillover effects, $ ^{7} $ estimated to be 88.3 trillion yen in added value and 7.843 million jobs, were the largest of all Japan’s industries. By comparison, in 1995 the ICT industry’s real domestic production value was 63.3 trillion yen, which contributed 57.0 trillion yen in added value and 6.536 million jobs. Because technological innovation has a large impact on the ICT industry, the industry is believed to be a stronger driver of added value than employment (Figure 5-1-2-1).

From the mid-1990s on, the added value and employment induced from primary industries, such as iron and steel and electrical equipment, have been flat. In contrast, contributions from the ICT industry (particularly in added value) soared until 2010 and have been maintained at a high level ever since.

Figure 5-1-2-1 Transitions in economic spillover effects (induced added value and jobs) from major industries' production activities

ICT industry total ☐ Iron and steel ☐ Electrical equipment (excluding ICT devices) ☐ Transport equipment ☐ Construction (excluding construction of telecom facilities) ☐ Wholesale ☐ Retail ☐ Transport

(Source) "Study on Economic Analysis of ICT," MIC (2016)

### 3. Research and development in the ICT field

## (1) Research and development spending

● The ICT industry $ ^{8} $ spent 4.0493 trillion yen on research in FY 2014, accounting for 29.8 percent of all corporate research spending

According to the “2015 Research Investigation Report on Science and Technology”, Japan’s total scientific and technological research spending (i.e., research spending) in FY 2014 stood at 18.9713 trillion yen (the combined research spending by enterprises, nonprofit organizations, public agencies, universities, etc.).

Corporate research spending, which accounts for about 70 percent of all research spending, was 13.5864 trillion yen. Of this amount, 4.0493 trillion yen (29.8 percent) was spent on research by the ICT industry. The ICT equipment and appliance manufacturing segment was largest research spender in the ICT industry (Figure 5-1-3-1).

## (2) Technology trading

● The ICT industry posted a surplus in technology exports $ ^{9} $ in FY 2014

The value received from Japan’s technology exports in FY 2014 totaled 3.6603 trillion yen, to which the ICT industry contributed 480.8 billion yen, or 13.1 percent. On the other side of technology trades, the costs of technology imports was 513.0 billion yen, of which the ICT industry paid out 256.7 billion yen, or 50.0 percent. Both Japan and the ICT industry posted export surpluses in technology.

The ICT equipment and appliance manufacturing segment accounted for the largest share of the ICT industry’s technology imports and exports (Figure 5-1-3-2).
## (3) Number of researchers

● The ICT industry employed 182,730 researchers, or 36.1 percent of all corporate researchers in Japan

There were 866,900 researchers in Japan on March 31, 2015 (the total of all researchers at enterprises, nonprofit organizations, public agencies, universities, etc.). Enterprises employed 506,134 researchers, or about 60 percent of the total. The ICT industry employed 182,730 researchers, or 36.1 percent of all corporate researchers in Japan. The ICT equipment and appliance manufacturing segment had the most researchers of any ICT industry sector (Figure 5-1-3-3).

Figure 5-1-3-1 Breakdown of corporate research spending by industry (FY 2014)

(Source) Prepared from the "2015 Research Investigation Report on Science and Technology," MIC

Figure 5-1-3-2 Technology trading by industry (FY 2014)

(Source) Prepared from the "2015 Research Investigation Report on Science and Technology," MIC

Figure 5-1-3-3 Corporate researchers by industry (as of March 31, 2015)

(Source) Prepared from the "2015 Research Investigation Report on Science and Technology," MIC
### 4. State of ICT enterprise operations

The Basic Survey on the Information and Communications Industry is a general statistical survey (started in 2010) that MIC and the Ministry of Economy, Trade and Industry jointly conduct under the Statistics Act (Law No. 53 of 2007) to clarify the operations of enterprises belonging to the ICT industry — a Large Category G in the Japan Standard Industry Classification — and to obtain basic data for ICT industry policies. The following sections provide an overview of the 2015 survey that pertains to ICT enterprises.

## (1) Summary of enterprises engaging in ICT business operations (activity-base results)

### a. General summary of the survey results

## ● 5,639 enterprises were engaged in ICT business operations with sales in excess of 46 trillion yen

Sales attributed to ICT business operations in FY 2014 totaled 46.5275 trillion yen (total sales by the enterprises were 74.0824 trillion yen). By sector, the telecommunications sector accounted for 36.6 percent of all sales (up 0.2 percentage points from the previous year), the software sector 32.0 percent (up 0.5 points), and the information processing services sector 11.2 percent (up 0.4 points) (Figure 5-1-4-1).

The number of enterprises engaging in ICT business operations (irrespective of whether ICT business operations are the enterprise’s mainstay operations) stood at 5,519. Operating profits were 5.4997 trillion yen, ordinary income was 5.7321 trillion yen, and the enterprises held 9,510 subsidiaries and associated companies.

### b. Breakdown of sales

## ● Enterprises capitalized at less than 100 million yen accounted for more than 50 percent of all enterprises in eight of the 12 ICT industry sectors

A breakdown of ICT industry enterprises by capital size discovers that enterprises capitalized at less than 100 million yen accounted for more than 50 percent of all enterprises in 8 of the 12 ICT industry sectors. Of particular note is the video information production and distribution sector and the audio information production sector, where enterprises capitalized at less than 50 million yen accounted for more than 40 percent of all enterprises in the respective sectors (Figure 5-1-4-2).

Figure 5-1-4-1 ICT industry sales

(Note) “Miscellaneous communication service providers” refers to enterprises that selected “other” as the primary business in the breakdown of sales attributable to ICT business operations. (Source) “2015 Basic Survey on the Information and Communications Industry,” MIC / METI
Figure 5-1-4-2 Breakdown of ICT industry enterprises by capital size

(Source) "2015 Basic Survey on the Information and Communications Industry," MIC / METI

### 5. Telecommunication market trends

## (1) Market size

● Mobile communications accounted for about 60 percent of sales in the telecommunications sector, while, by service category, the data transmission services’ share has been rising year by year

Sales in the telecommunications sector in FY 2014 were 13.6904 trillion yen (an increase of 0.4 percent from the previous year) (Figure 5-1-5-1). Fixed-line communications accounted for 32.9 percent of all sales in FY 2013, and mobile communications (mobile phones and PHS handsets) for 55.8 percent (Figure 5-1-5-2). Looking at sales by service category finds voice transmission services accounted for 30.5 percent and data transmission services for 49.5 percent (Figure 5-1-5-3). The average revenue per user (ARPU) among the main mobile communication service providers was 4,170 yen for NTT Do-como, 6,130 yen for KDDI, and 4,700 yen for SoftBank (Figure 5-1-5-4).

Figure 5-1-5-1 Transitions in telecommunications sector sales

(Note) Comparisons must be made with caution, as sales represent the simple sum of figures from all responding carriers and the number of responding carriers differs from year to year. Prepared from "2015 Basic Survey on the Information and Communications Industry," MIC / METI

Figure 5-1-5-2 Telecom carriers' sales breakdown by fixed-line communications and mobile communications

Prepared from "2014 Basic Survey on the Information and Communications Industry," MIC / METI
Figure 5-1-5-3 Transitions in sales by service category

Prepared from "2014 Basic Survey on the Information and Communications Industry," MIC / METI

Figure 5-1-5-4 Transitions in mobile ARPU in the past five years for three domestic mobile operators

Voice ARPU Data ARPU Voice ARPU + Data ARPU Other ARPU

(Notes) Each company's ARPU is calculated and released based on the respective company's criteria. The figures were not calculated using the same method.

Due to rounding, the total of individual ARPU figures may not equal the total ARPU figures.

NTT Docomo includes Smart ARPU, KDDI includes value added ARPU, and SoftBank includes service ARPU.

The ARPU figures for KDDI after FY 2012 were taken from au Communications ARPU under the personal segment.

Applied discount amounts were subtracted from the voice ARPU.

SoftBank ARPU figures included communication modules until FY 2011.

SoftBank Mobile took over SoftBank BB, SoftBank Telecom, and Y!Mobile on April 1, 2015 (name changed to SoftBank on July 1, 2015).

The FY 2015 ARPU figures for NTT Docomo and KDDI were monthly sales per user.

Prepared from financial statements from each company

### 6. Broadcasting market trends

## (1) Size of the broadcasting market

### a. Broadcaster sales

### ● Broadcaster sales totaled 3.8759 trillion yen in FY 2014; the share of sales by terrestrial-based broadcasters has continued to expand in recent years

Japanese broadcasters are divided into two categories: Japan Broadcasting Corp., a public broadcaster known as NHK, which depends on reception fee revenues, and private broadcasters that depend on advertisements or paid programming. Apart from these categories, the Open University of Japan provides broadcasting services for educational purposes.

The entire broadcasting sector’s sales, including revenues from broadcasting and non-broadcasting operations, decreased in FY 2014 (by 1.4 percent) from the previous year to 3.8795 trillion yen. By category, terrestrial-based private broadcasters’ sales were 2.3375 trillion yen (up 0.7 percent from the previous year), satellite-based private broadcasters’ sales were 366.1 billion yen (down 18.5 percent), cable TV broadcasters’ sales were 497.5 billion yen (down 1.1 percent), and NHK’s ordinary operating income was 674.8 billion yen (up 2.7 percent).

In terms of market share, terrestrial-based private broadcasters accounted for 73.0 percent (up 2.1 percentage points from the previous year) of private broadcasters' sales. The market share of terrestrial-based broadcasters continued to grow from the previous year (Figure 5-1-6-1).
yen, database information, 247.4 billion yen, and original Internet text-based content, $ ^{12} $ 195.4 billion yen (Figure 5-1-7-1).

The overall size of the content market in 2014 has remained essentially unchanged since 2009 on. The size of each content segment as well stayed flat between 2009 and 2012, after which the video content segment expanded while the text-based content segment contracted (Figure 5-1-7-2).

## (2) Trends in the online content market

● The market for online content, which is downloaded or streamed via the Internet to computers or mobile phones, grew to 2.7385 trillion yen, accounting for 23.9 percent of the entire content market

As part of the overall content market, the market for online content, which is downloaded or streamed via the Internet to computers or mobile phones, reached 2.7385 trillion yen. By content segment, the video content segment accounted for 58.8 percent of the online content market, the text-based content segment, 30.1 percent, and the audio-based content segment, 11.1 percent.

The video content segment of the 2014 online content market was worth 1.6106 trillion yen, which consisted of 921.0 billion yen for game software, 213.8 billion yen for original Internet videos, 200.7 billion yen for videos, 141.6 billion yen for movies, 72.1 billion yen for terrestrial TV programs, and 61.3 billion yen for satellite and cable TV broadcast programs. Music accounted for 286.4 billion yen of the 303.9 billion yen audio-based online content market. The 823.9 billion yen text-based online content market consisted of 195.4 billion yen for original Internet text-based content, 187.5 billion yen for database information, 154.0 billion yen for books, and 154.6 billion yen for newspaper articles (Figure 5-1-7-3).

The online content market has been growing steadily since 2010. Looking at the market by content segment shows that the video content segment (which more than doubled from 2010 to 2014), and in particular the hot game software portion, has been driving the online content’s market expansion (Figure 5-1-7-4).

Figure 5-1-7-1 Breakdown of Japan's content market (2014)

(Source) "Survey on the Production and Distribution of Media Content," Institute for Information and Communications Policy, MIC

Figure 5-1-7-2 Transitions in Japan's content market size (by content segment)

(Source) "Survey on the Production and Distribution of Media Content," Institute for Information and Communications Policy, MIC
#### ● The 2015 mobile content industry’s market increased 13.3 percent from the previous year to 4.4228 trillion yen

The Japanese mobile content industry’s market, $ ^{13} $ which is made up of the mobile content market $ ^{14} $ and the mobile commerce market, continued to expand in 2015, reaching 4.4228 trillion yen (a 13.3 percent increase year-on-year), due to the growth and proliferation of smartphones and tablets. By individual segments, the mobile content market reached 1.5632 trillion yen (up 7.3 percent) and the mobile commerce market reached 2.8596 trillion yen (up 16.8 percent) (Figure 5-1-7-5).

## (3) Trends in the broadcast content market

### ● Export value of Japanese broadcast content was 18.25 billion yen in FY 2014

The export value of Japanese broadcast content in FY 2014 was 18.25 billion yen. Note that from FY 2010 onward, Internet distribution rights, video and DVD rights, format and restaging rights, merchandising rights, and similar rights, in addition to program broadcast rights, have been included in the export value of broadcast content (Figure 5-1-7-6). The traditional method of exporting broadcast content had been to sell the program broadcast rights. But today, methods have diversified, so that revenue streams other than program broadcast rights account for more than half of all revenue.

● Cartoons and animations account for over 60 percent of export value by program category, followed by dramatic programs and variety shows, and Asia accounts for about 60 percent of exports, followed by North America and Europe

Looking at the broadcast content export value by program category finds cartoons and animations account for 64.3 percent of total, dramatic programs, 17.0 percent, and variety shows, 11.4 percent, followed by docu-

Figure 5-1-7-3 Breakdown of the online content market (2014)

(Source) "Survey on the Production and Distribution of Media Content," Institute for Information and Communications Policy, MIC

Figure 5-1-7-4 Transitions in the online content market size (by content segment)

(Source) “Survey on the Production and Distribution of Media Content,” Institute for Information and Communications Policy, MIC
mentaries and sports programs (Figure 5-1-7-7). The largest export market for broadcast content was Asia, at 58.5 percent of the total, followed by North America at 24.2 percent, Europe at 13.3 percent, and South and Central America. Diverse export destinations for Japanese broadcast content are developing, particularly in Asia.

Figure 5-1-7-5 Mobile content industry market size

(Source) “Study Report on Technical Factors and Systems Pertaining to Open Platforms Promoting Mobile Content Business,” MIC

Figure 5-1-7-6 Export value of Japanese broadcast content

(Notes) Export value of broadcast content: total export value of program broadcast rights, Internet distribution rights, video and DVD rights, format and restaging rights, merchandising rights, and similar rights.

From FY 2010 onward, the export value from other revenue streams has been included along with program broadcast rights in the export value of broadcast content. Figures prior to FY 2010 are the export value for program broadcast rights only.

(Source) “Survey on the State of Overseas Expansion of Broadcast Content (FY 2014),” Institute for Information and Communications Policy, MIC

Figure 5-1-7-7 Export value of Japanese broadcast content by program category

(Source) “Survey on the State of Overseas Expansion of Broadcast Content (FY 2014),” Institute for Information and Communications Policy, MIC
## Section 2 ICT Service Usage Trends

### 1. Internet usage trends

## (1) State of Internet proliferation

a. State of major ICT device proliferation (households)

● ICT device proliferation has matured overall, but smartphone ownership has increased year by year, now topping 70 percent

The household penetration rate at the end of 2015 was 95.8 percent for mobile phones and PHS handsets $ ^{15} $ and 76.8 percent for computers. The penetration rate for smartphones, which are included in the mobile phone and PHS handset category, has shot up to 72.0 percent (up 7.8 percentage points from a year earlier), reducing the ownership gap with computers from 13.7 percentage points to just 4.8 percentage points (Figure 5-2-1-1).

b. State of Internet usage

## ● Both the number of Internet users and the Internet population penetration rate rose

The number of Internet users $ ^{16} $ at the end of 2015 was 100.46 million, an increase of 280,000 (0.3 percent) from the end of 2014. The Internet penetration rate as a percent of the general population was 83.0 percent (Figure 5-2-1-2). Those using computers to access the Internet accounted for 56.8 percent of all Internet users, the largest portion, followed by 54.3 percent for smartphones and 18.3 percent for tablets (Figure 5-2-1-3).

Figure 5-2-1-1 Transitions in household ownership rates for ICT devices

0	2006 (n=4,999)	2007 (n=3,640)	2008 (n=4,515)	2009 (n=4,547)	2010 (n=22,271)	2011 (n=16,530)	2012 (n=20,418)	2013 (n=15,599)	2014 (n=16,529)	2015 (n=14,765)
- Fixed-line telephones	90.1	90.7	90.9	91.2	85.8	83.8	79.3	79.2	75.7	75.6
- Fax	50.0	55.4	53.5	57.1	43.8	45.0	41.5	46.4	41.8	42.0
- Mobile phones and PHS handsets	91.3	95.0	95.6	96.3	93.2	94.5	94.5	94.8	94.6	95.8
- Smartphones	—	—	—	—	9.7	29.3	49.5	62.6	64.2	72.0
- Computers	80.8	85.0	85.9	87.2	83.4	77.4	75.8	81.7	78.0	76.8
- Wearable devices	—	—	—	—	7.2	8.5	15.3	21.9	26.3	33.3
- Tablets	—	—	—	—	—	—	—	—	0.5	0.9
- Home game consoles with Internet connectivity	10.7	15.2	20.8	25.9	23.3	24.5	29.5	38.3	33.0	33.7
- Portable music players with Internet connectivity	14.3	19.1	22.0	27.3	17.0	20.1	21.4	23.8	18.4	17.3
- Other appliances (information appliances) with Internet connectivity	3.4	4.3	5.5	7.6	3.5	6.2	12.7	8.8	7.6	8.1

(Source) "Communications Usage Trend Survey," MIC
Figure 5-2-1-2 Transitions in the number of Internet users and the penetration rate among the general population

(Source) "Communications Usage Trend Survey," MIC

### c. Purposes of using the Internet

● “Sending and receiving emails” was the most common purpose of using the Internet

Among all age groups, the most common purpose of using the Internet was “sending and receiving emails.”

Figure 5-2-1-3 Internet usage by device (at the end of 2015)

(Note) Figures indicate the percentage of people who accessed the Internet using the corresponding device during 2015. (Source) "Communications Usage Trend Survey," MIC

Viewing the results by age group finds that more than half of users in all age groups use the Internet for “sending and receiving emails,” “map or transportation information services,” and “accessing weather forecasts” (Figure 5-2-1-4).

Figure 5-2-1-4 Applications / purposes of using the Internet by age group

★20 to 29 (n=2,773) ☐30 to 39 (n=4,024) ☑40 to 49 (n=4,642) ☐50 to 59 (n=4,509) ☐60 and older (n=5,697)

(Source) "Communications Usage Trend Survey," MIC

(2) Challenges for safe, secure Internet usage

a. Matters of concern with Internet usage and problems with ICT networks

● Households are concerned about personal information, and enterprises are concerned about security

Among households with concerns about using the Internet, 80.4 percent cited “personal information will be disclosed or exposed externally without permission” as a concern. This was followed, in order, by “computer virus infections” (77.9 percent) and “trustworthiness of electronic payments” (47.3 percent) (Figure 5-2-1-5).

Among enterprises, 47.8 percent, the highest response rate, mentioned “concern about virus infections” as a problem when using the Internet, internal LANs, or other networks. This was followed “difficult to develop security measures” (44.2 percent), indicating heightened security concerns among enterprises (Figure 5-2-16).