In particular, the use of electronic data exchange and electronic commerce should be promoted to improve the efficiency of transactions between companies. The fourth proposal concerns globalization. Japanese standards, regulations, and network systems need to be brought into conformity with global standards so that companies can procure the goods and services they need from anywhere in the world and sell their products in world markets as efficiently as possible. To spur a recovery, and for Japan to develop its own new products and services, the second reform strategy calls for both the revitalization of existing industries and the creation of new industries and enterprises. The report makes the following three proposals.
Japan needs to create an environment in which venture businesses are easy to develop.
Especially important is a system of finance that accepts intellectual property rights as security and that provides the availability of risk money in the early stages of new business ventures. Second, the legal system needs to be revised to bring it into line with rapidly developing information technology. Third, fundamental reforms to the university system must be made to nurture people with strong creative talents. Postgraduate schools should be reorganized as research institutions. Reform of the Financial System During the process of economic development, the Japanese financial system provided indirect finance to relatively low-risk industries.