Development of Japan and Asia – conclusions for BSR and Pomerania Bogumil Hausman

1. Development of Japan and Asia – conclusions for BSR and Pomerania Bogumil Hausman Gdańsk, 2 July, 2009

2. Japanese population and GDP (Purchasing Power Parity) 14 660 461 EU 14110 301 U.S.A 38 636 Population (2007) GDP (2007) Poland million persons 103 millions $ 4 365 127 Japan 7104 1 321 China (source CIA World Factbook 2008)

3. Economy The unemployment rate (below 2% until the mid-1970s) in 2008 was 4.2% (Poland: 9.7%) GDP - per capita (PPP): $34 300 (2007) (Poland: $16 500) GDP - real growth rate: 2.4% (2007) (Poland: 6.7%) Public debt: 170% of GDP (2008) (Poland: 41.6%) The Koizumi Cabinet: regulatory reform, public company privatization and administrative reform. Moving away from lifetime employment and seniority-based wages. The following cabinets expressed ambition to follow Koizumi’s reforms. Prime Minister Taro Aso (Liberal Democratic Party) since 24 September 2008.

4. The Council for S&T Policy and the 2nd S&T Basic Plan (2001-2005) Priority put on the following four fields of science and technology: • Life Sciences • Information and Telecommunications • Environmental Sciences • Nanotechnology and Materials 30 Nobel laureates within 50 years

5. The 3rd S&T Basic Plan (2006-2010) Promote S&T to be supported by public and to benefit society Enforce prioritization of investment Nurture human resources (shift of emphasis from “hard” to “soft” such as human resources; greater significance of individuals at institutions) Reform S&T system for the world-class excellence (for continuous creation of innovation)

6. New Industry Creation Strategy (Ministry of Economy, Trade and Industry, May 2004) • Fuel Cells • Digital Consumer Electronics • Robots • Digital Content • Health and Welfare Devices and Services • Environment and Energy Devices and Services • Business Support Services

7. New IT Reform Strategy (January 2006) Shift from “world’s most advanced IT nation” to “IT nation leading the world”. • use IT to drive structural reform (global top-class business management) • use IT to resolve issues affecting citizens and society (reform of healthcare, an environmentally-friendly society, world’s most efficient e-government, world’s most secure society)

8. World Class R&D Expenditure Japan’s total expenditure on research and development was 118 295 million EUR in 2006 Japan holds the third position after the U.S. (273 772 million EUR) and the European Union (213 127 million EUR) The ratio of total R&D spending to GDP was 3.2 percent in year 2005 (after Sweden 3.73 and Finland 3.45; Poland 0.55)

9. Ageing Population Fertility rate (est. 2007): Japan 1.23, Sweden 1.66 The Japanese population will shrink by 20 millions by 2050.

10. New Economic Growth Strategy (Ministry of Economy, Trade and Industry, June 2006) Background • China will overtake Japan as “the second largest economy” in 10 years • India will follow shortly • population has been declining since 1998 • decreasing population for at least several coming decades

11. New Economic Growth Strategy

12. New Economic Growth Strategy

13. Innovation 25 (Minister of State for Innovation, Abe Cabinet February 2007) Innovation 25 Strategy Council Creating the Future, Challenging Unlimited Possibilities Japan as Beautiful Country A view toward year 2025

14. Innovation 25 Major factors that will shape Japan and the world: • A declining population and rapid ageing in Japan • Growth in Asia with pressing issues • Further development of a knowledge-based network society • Explosive progress of globalization • Growth of the world population threatening the sustainability of humankind • Climate change and environmental degradation • An increase in the divide between rich and poor nations, often called the “north-south disparity”

15. Innovation 25 Key Concepts: • Foster and promote people with unique and exceptional talent who are often described as “nails that stick out” of a conformist society • Scientific knowledge should be transformed to deliver economic and social benefits • Further development of manufacturing and “environmental or green” technology by offering these products and services to Asia and the world • National policies and corporate strategies need to be based upon internationally recognized best practices

16. Innovation 25 Vision of Japan 2025: • Long and Healthy Lives (tailored medicine, advanced robots for nursing) • A Safe and Secure Society (sensing and monitoring technologies, Intelligent Transport Systems) • Society with Diverse Work Styles (more flexible and open labor market) • Resolving Global Environmental Issues (efficient energy use, and waste and water management) • Society that is Open to the World (auto translating machines, Virtual reality technology used to access the culture and historical heritage of other countries)

17. Innovation 25 Polices to be implemented: • Global Environmental Issues as a Driver for Economic Growth and International Contribution • Doubling the Investment for the Next Generation (including investment for the younger generation and expanding ICT use) • University Reform • Investment Increase for Science and Technology to Ensure the Innovation 25 Strategy Delivers Real Value • Innovation Review — Regulations, Social Systems, Norms and Rules • Internal Government Mechanisms to Make Japan the World’s Leading Nation of Innovation

18. Conclusions for BSR and Pomerania • Clear vision (branding of the region) • Identification of strongholds and further specialization • Identification of weaknesses and strategy to overcome pitfalls • “Knowing your enemy” (following other countries’ polices and strategies) • “Learning from the past” (evaluation of previous policy initiatives) • Human capital (world class education, trust building with other countries and regions) • Professional governance structure to implement the above