1、 Second Report of the Committee on New Direction of Economic and Industrial Policies June 2023 Committee on New Direction of Economic and Industrial Policies,Industrial Structure Council Ministry of Economy,Trade and Industry (Provisional Translation)2 Table of Contents I.Recognition of Current Situ
2、ation.4(1)Reflection on the Lost 3 Decades and New Direction.4(2)Trends that should be followed in industrial policy over the medium to long term.4 Increased geopolitical risks and other uncertainties.4 Long-term price trends.5 Global inflation.5 Labor Force Trends.5 Trend of declining birthrate.6 I
3、ncreased importance of domestic investment(tangible and intangible).7 Current account trends.7(3)Shift in industrial policy in the world and Japan.8 Urgent response to social issues and increased industrial policy activity around the world.8 Launch of New Direction of Economic and Industrial Policie
4、s.8(4)Signs of change and turning points taking place.9 Increased willingness to make capital investments by companies.9 Largest wage increase in 30 years against a backdrop of global inflation.10 Signs of replacement of industries.10(5)Necessity to carry this momentum to long-term sustainable growt
5、h.10 II.New Direction of Economic and Industrial Policies.11(1)Fostering Expectations to achieve sustainable and continuous growth.11(2)Policy Methods Constituting the New Direction”.12 Mission-Oriented Industrial Policy.12 Updating socioeconomic system(OS).13 Reorganization of 14 themes(from 6 Miss
6、ions+6 OSs+2 New Fields to 8 Missions+5 OSs).13(3)Overall Goals of New Direction.14(4)Economic,industrial,and social structures that support goal achievement.14 Overall view.14 Direction of Policy from a Macroeconomic Perspective.15 Market size in individual sectors.16.Key Policy Tools for the Virtu
7、ous Cycle of Domestic Investment,Innovation,and Income Growth.17(1)Expansion of domestic investment.17(2)Acceleration of innovation.18(3)Income growth.18 IV.Sector-specific measures.19 Mission-oriented industrial policy.19(1)Realization of a carbon-neutral society.19(2)Realization of a digital socie
8、ty.22(3)Realization of economic security.30(4)Realization of a new healthy society.33(Provisional Translation)3 (5)Realization of a resilient society against disasters.37(6)Realization of a bio-manufacturing revolution.40(7)Establish a growth-oriented,resource-autonomous circular economy.42(8)Inclus
9、ive growth of the region that contributes to coping with a declining birthrate.45 Updating socioeconomic system(OS).49(1)Human resources.49(2)Startup Innovation.53(3)Value Creation Management.58(4)Thorough globalization of Japanese society.62(5)Public administration:EBPM and data-driven administrati
10、on.67 (Provisional Translation)4 Second Report of Committee on New Direction of Economic and Industrial Policies I.Recognition of Current Situation(1)Reflection on the Lost 3 Decades and New Direction The Japanese economy has been in a situation known as the lost 3 decades”of slow economic growth.Du
11、ring these 3 decades,a deflationary mindset spread in Japan,along with pessimism towards the future of the domestic economy in light of the declining population.As a result,the expected growth rate by Japanese companies declined1.Corporate management during this period prioritized retaining employme
12、nt,and thereby focused on cutting costs in existing businesses and investing abroad where expected returns to investments were higher.This left domestic investment stagnant for 3 decades,resulting in insufficient creation of new businesses.2 While current profits of large companies have doubled over
13、 the past 30 years and is currently at a historically high level,domestic sales have remained flat.Current profits of companies mainly increased due to the decrease in cost of sales and the increase in overseas profits.3 Unemployment rate has remained at a low level,but average wages have remained c
14、onsistently flat for the past 30 years.4 The expansion of non-regular workers has enabled hiring labor while keeping wage levels low.Accordingly,personal consumption has been stagnant.5 It is undeniable that the governments policies provided a reason for this stagnation.The governments efforts were
15、focused on improving the market environment to remove restrictions for the private sector.As a result,it should be said that governmental efforts were excessively neo-liberalistic to create new value.To overcome the lost 3 decades”of economic stagnation,it is important to recognize and cope with the
16、se factors.Turning our attentions to the future,macro-level trends are changing that will affect the Japanese economic and industrial policies in the mid-to long-term,and these trends must be taken into account when considering policies as the New Direction of Economic and Industrial Policies.(2)Tre
17、nds that should be followed in industrial policy over the medium to long term Increased geopolitical risks and other uncertainties Global uncertainty has increased in recent years due to instability in the international economic order and accelerated technological innovation.The World Uncertainty In
18、dex had remained in the range of 50-200 until the early 2010s but has often exceeded 300 since around 2020.6 The international economic order is facing a growing fragmentation,especially with the U.S.-China confrontation and Russias invasion of Ukraine after 2022.Against these developments,globaliza
19、tion,meaning the continuous increase in flow of people,goods,money,and data under a stable international order,is changing.Today,the system that ensures free trade must be balanced with the need to ensure economic security.1 See Reference Materials,p.3.2 See Reference Materials p.4,5,6,7.3 See Refer
20、ence Materials,p.8,9.4 See Reference Materials,p.10,11.5 See Reference Materials,p12,13.6 See Reference Materials,p.15.(Provisional Translation)5 These upheavals aggravate the already persistent pessimism in Japan supported by long-term deflation and a declining population.This pessimism overtakes t
21、he view that change could be an opportunity.Surveys show that companies are hesitant to invest in plant and equipment because of the lack of confidence;uncertainty about the future has always been the number one reason for companies to hesitate capital investment.7 This is also explained by the expe
22、cted growth rate of companies,which has remained around 1%since the late 2010s.The persistent decline in Japans rank in the World Competitiveness Ranking,becoming 34th among 63 countries in 2022,could also explained by the gloomy survey results answered by Japanese business managers.While the object
23、ive data based on statistics show better results,pessimism of Japanese managers are contributing to the decline in this ranking.8 Long-term price trends Until the 1990s,Japan had faced the overseas-domestic price gap problem”where Japans price level was higher compared to that of the U.S.and other m
24、ajor developed countries.Today,due in part to the long-term deflation in Japan and cost-cutting efforts by companies,Japan has become a country with competitive price levels over the past 30 years.9 The price level in Japan has dipped below the OECD average in 2022,and a situation that could be call
25、ed the reverse overseas-domestic price gap is occurring.The price gap with China has narrowed over the past 20 years,and Japan has become a cost competitive country among developed countries.Global inflation The world has faced inflation unparalleled in the past 30 years,against the backdrop of the
26、recovery from COVID-19 and the Russian-Ukrainian war.Some developed countries faced inflation once exceeding 10%on a year-on-year basis,and in Japan,inflation temporarily reached 4%year-on-year,a reversal of the long-term deflationary situation.10 The current pace of inflation has already exceeded i
27、ts peak in many countries and has slowed to a certain degree.Although various factors determine future price levels,some believe that the world has turned to a structurally high inflationary trend from the following reasons:(i)China,which has continued to provide the world with inexpensive labor sup
28、ply for the past 30 years through exports of goods and other means of globalization,will experience a decline in its labor force due to its low birthrate and aging population,(ii)labor supply will be constrained by the aging of the population in developed countries as a whole,and(iii)increasing geop
29、olitical risk will cast limits on a full-fledged globalization.Labor Force Trends Since 1995,Japans labor input(total hours worked)has been on an increasing trend due to enhanced labor participation of women and the elderly,even as the working-age population declined.However,since 2019,labor input i
30、n Japan has begun to decline.During the past 3 decades,the labor participation rate of women,which had previously been low by international standards,has continued to rise,and is now among 7 See Reference Materials,p.16.8 See Reference Materials,p.17.9 See Reference Materials,p.18.10 See Reference M
31、aterials,p.19.(Provisional Translation)6 the highest in the world.Adding to the already high labor participation of men and the elderly,the labor participation rate of men,women and the elderly have all reached highest levels internationally,and some believe that the labor participation rate may hav
32、e reached a ceiling.Even if birth rates reverse in the future,the working-age population itself is expected to continue declining for more than 20 years.11 Therefore,labor shortage should be viewed as a structural issue that Japan faces.Solutions toward this issue include eliminating restrictions on
33、 existing workers(e.g.,eliminating barriers related to working hours,creating an environment that facilitates balancing work with childcare and nursing care,etc.),and an increase in the capital equipment ratio through investments in labor-saving and automation,including software investments in labor
34、-intensive industries.It is also necessary to accelerate productivity growth through reskilling,health promotion,and other measures.Taking a positive view,the pressure of labor shortage could accelerate turnover of labor from low-productivity,low-wage sectors to high-productivity,high-wage sectors.I
35、n order to realize smooth labor turnover to high-productivity,high-wage sectors,there is an increasing need for support to facilitate the replacement of industries through individual labor turnover and business succession and M&A at the business and company level.Trend of declining birthrate The lar
36、gest factor contributing to the long-term decline in the labor force is Japans declining birthrate.This demographical issue should be viewed as an economic issue that affects the Japanese economy from both the supply side and the demand side.In Japan,the working-age population,which is affected by t
37、he supply side,began to decline after peaking in 1995,and the total population,which is affected by the demand side,began to decline after peaking in 2010.12 Attention should be given to the fact that the desired fertility rate,in addition to the actual fertility rate,is on a downward trend.The desi
38、red fertility rate is calculated based on the percentage of married people,the percentage of never-married people who wish to marry,and the number of children they wish(or plan)to have.The decline of the desired fertility rate has been driven by the decline in the desire to marry,in addition to the
39、decline in the number of children desired by never-married people.13This reflects the decline in hopes for the future,especially among never-married persons.Given the current situation14 where low income is a major hurdle for both childbearing and marriage,it is necessary to reverse this downward tr
40、end in hope through a sustained increase in the income of the low-income group15 and by creating a workplace where working and spending time with their families can be compatible.One factor that suppresses disposable income of young people and hinder their rate of marriage is that young people,espec
41、ially women,are concentrated in Tokyo,where prices and basic expenditures are burdensome.16 This phenomenon in part is caused by the lack of good jobs in rural areas;jobs that match young peoples desires and also provide sufficient income.17 Therefore,the importance of small and 11 See Reference Mat
42、erials,p.20,21.12 See Reference Materials,p.22.13 See Reference Materials,p.23.14 See Reference Materials,p.24,25.15 See Reference Materials,p.26.16 See Reference Materials,p.29.17 See Reference Materials,p.27,28.(Provisional Translation)7 medium-sized enterprises(SMEs)as providers of quality employ
43、ment in rural areas18 is increasing as an important measure to reverse the decline in the birth rate.Increased importance of domestic investment(tangible and intangible)Japans investment toward growth,especially domestic investment,has been particularly sluggish over the past 3 decades.The significa
44、nce of having a domestic industrial and business base is increasing from the perspective of mitigating geopolitical risk and the spillover and multiplier effects on the domestic economy and industries.Domestic investment is also important amidst changes in industrial structure;the service industry f
45、aces lower barriers to overseas expansion due to digitization,and the manufacturing industry,which in the past has driven globalization through exports,is now moving toward localization of production near consumption areas.In relation to national income,there is also a significant correlation betwee
46、n domestic investment and wage growth.19 Domestic investment should not be promoted through simply reshoring overseas production bases back to Japan.Rather,Japan should seek attracting investments toward a production base for high value-added products and services that contribute to solving global s
47、ocial issues and for which demand is expected to grow in Japan,or as an innovation base for research and development and other activities.In order to continue to attract these high value-added bases to Japan,it is important to invest in intangible assets as well as tangible assets.In relation to int
48、angible assets,as digitization facilitates the international expansion of the service industry,the importance of intellectual property income is increasing,and the development and operation of a collaborative platform to promote the use of data across companies and industries is also becoming increa
49、singly important.Current account trends Current account is another important macroeconomic index that industrial policy should refer to.Japan recorded its largest-ever trade deficit in 2022,mainly due to soaring energy prices.20 The trade balance in electrical and electronics equipment,which had bee
50、n in surplus for a long time,has also fallen to a deficit.Trade in services is also currently in a deficit.In the long run,the deficit of the ICT sector of services may be equivalent to that of petroleum resources by 2030,due to the shift to cloud services.21 The revival of inbound foreign consumpti
51、on22,which fell sharply after COVID-19,may contribute to gains in trade in services.Still,as of today,the current account is still dependent on investment income.Relying on investment income alone to stabilize the current account balance is not necessarily desirable,taking into consideration that tr
52、ade and service income can be expected to contribute more to domestic income through the multiplier effect than investment income.On the other hand,gaining from trade by simply selling cheaply abroad is also undesirable because it worsens the terms of trade23 and puts downward pressure on real natio
53、nal income.It is necessary to aim at both raising national income and stabilizing the current account,mainly by improving the balance of trade in goods and services by providing high value-added goods and services to foreign countries as well.18 See Reference Materials,p30,31.19 See Reference Materi
54、als,p.32.20 See Reference Materials,p.33.21 See Reference Materials,p.34.22 See Reference Materials,p.35.23 See Reference Materials,p.36.(Provisional Translation)8 (3)Shift in industrial policy in the world and Japan Urgent response to social issues and increased industrial policy activity around th
55、e world After COVID-19,peoples awareness towards social issues have become even more apparent around the world.Countries have come to realize that the entire society must address social issues that have not been fully internalized in the economy.These issues,such as green transformation to address c
56、limate change and economic security,are becoming the engines of economic growth.On the other hand,as social issues become more complex,and as the transformation of existing social and economic systems is necessary in order to solve them,it is becoming increasingly difficult for private companies to
57、tackle social issues on their own.Under these uncertain and complex circumstances,there is an increasing need to provide government support to encourage companies to take action by increasing the predictability of private companies and to link the resolution of social issues to economic growth.Under
58、 these circumstances,the U.S.and Europe are actively engaging in large-scale and long-term industrial policies,in addition to China which has traditionally developed large-scale industrial policies.24 The CHIPS and Science Act of 2022,which the U.S.passed in August 2022,provides$52.7 billion in gove
59、rnment support for semiconductor-related investments.Similarly the Inflation Reduction Act,which was enacted in the same month,provides$369 billion in government support for climate change related investments.25 Apart from the budget size,it should be noted that large-scale financial support is prov
60、ided not only to initial capital expenditures but also to operational expenditures that are proportional to production in forms of tax credits,which provides incentives for production.26 Requirements for the use of domestic products when receiving government support and targets for domestic producti
61、on is also included in this legislation.Europe is actively encouraging domestic investment by mobilizing all available means27;the EU has introduced measures such as border adjustment measures to prevent the outflow of investment to countries with less stringent decarbonization regulations and measu
62、res to relax subsidy restriction to prevent the offshore transfer of investment.28 These measures are bringing out a situation of policy competition,where investment and employment in the private sector are dependent on comprehensive support from each government.Launch of New Direction of Economic a
63、nd Industrial Policies Amidst this comeback of industrial policy,the Japanese government has initiated the New Direction of Economic and Industrial Policies since 2021,where the government takes a proactive role and a mission-oriented approach to address global social issues in a large-scale,long-te
64、rm,and planned manner.29 The government has already implemented several policy initiatives,diverting from excessively neoliberal policies and reducing the uncertainties faced by the private sector by setting/sharing goals and making investments to solve social issues.24 See Reference Materials,p.38,
65、39.25 See Reference Materials p.40,left figure.26 See Reference Materials,p.41.27 See Reference Materials p.40,right figure.28 See Reference Materials,p.42.29 See Reference Materials,p.43.(Provisional Translation)9 For example,with regard to the realization of a carbon-neutral society(GX),the govern
66、ment is implementing a growth-oriented carbon pricing concept,including upfront investment support in the amount of 20 trillion yen under the Act on Promotion of Smooth Transition to a Decarbonized Growth-Oriented Economic Structure(GX Promotion Law),and 1.6 trillion yen in support already pledged.3
67、0 For the realization of the digital society(DX),the government has committed to large-scale,long-term,and planned policy support,including over 2 trillion yen in investment and R&D for semiconductors and next-generation computing infrastructure,and 0.4 trillion yen for the establishment of manufact
68、uring infrastructure for storage batteries.Some of these measures have already begun to produce positive effects,such as the realization of intensive investment by private companies,including foreign capital,in the relevant fields.31 In the area of economic security,the government has designated spe
69、cific critical commodities,and has allocated 250 billion yen to the Fund for the Development of Key Technologies for Economic Security,and 80 billion yen has already been adopted.32 In addition,the government has initiated long-term support in various areas,including support for human capital invest
70、ment such as reskilling(1 trillion yen over 5 years)33,support for startups through a 1 trillion yen supplementary budget and 7 tax reforms based on the 5-Year Plan for Startup Development34,and support for the growth of SMEs through measures such as business restructuring subsidies(total 2.4 trilli
71、on yen)and manufacturing subsidies.(4)Signs of change and turning points taking place Changes in the macro environment,such as the transformation of the international order and labor force trends in Japan,as well as changes in the governments policy to initiate large-scale,long-term,and planned supp
72、ort in areas where social issues exist,are bringing about change that should be called the“turning point”from the trend of the past 30 years.Increased willingness to make capital investments by companies Japanese companies are showing willingness at a historical level to make domestic capital invest
73、ments.Contributing to this change are factors such as developments in the international economic order,the long-term deflation that has brought a cost environment for companies that is internationally more competitive,and the start of large-scale,long-term,planned policy support.The growth in capita
74、l investment plans by companies(year-on-year)in FY2022 and FY2023 has shown record-high levels since the statistics began in 1983(Short-Term Economic Outlook,Bank of Japan).35 The Government Economic Outlook,predicts the historically highest level of capital investment by the private sector(includin
75、g R&D and software investment)in FY2023.Keidanren has set a target of 115 trillion yen in private-sector capital investment in FY2027,with the goal of reaching even higher levels through 30 See Reference Materials,p.44.Policy execution status is as of June 2,2023.31 See Reference Materials,p.45.32 P
76、olicy execution status is as of June 2,2023.33 See Reference Materials,p.46.34 See Reference Materials,p.47.35 See Reference Materials,p.49.(Provisional Translation)10 strengthened policies,a goal that was declared in the Public-Private Partnership Forum on Increasing Domestic Investment,chaired by
77、the Prime Minister.36 It should be noted that downside risks regarding domestic investment exist with the increasing uncertainty of the global economy.The IMF forecasts global growth at 2.8%this year,which is significantly lower than the 3.8%average for the past 20 years.While some are pointing out
78、that economic recession could spill over from abroad,efforts to sustain domestic investment are still needed.37 Largest wage increase in 30 years against a backdrop of global inflation The results of the annual wage negotiations between management and labor unions were the highest in 30 years in 202
79、3.The average for companies of all sizes was a 3.66%increase,and SMEs realized a wage increase of 3.36%as well(based on the results of the 6th round of responses compiled by RENGO).38 Although historical inflation and labor shortage are suggested as reasons behind this change,it is considered to be
80、a landmark event that could trigger a major change in the trend over the past 30 years.The focus for the upcoming years will be on making this wage increase prevalent among a wide range of workers including non-regular workers,and on realizing continuous wage increase beyond this year,in order to ma
81、ke this turning point a long-term sustainable movement in the future.Signs of replacement of industries Domestic investment in startups has grown about 10-fold over the past decade39,despite a decline due to COVID-19,showing signs of the growing replacement of industries by the startup ecosystem for
82、 the economy as a whole.The number of mergers and acquisitions involving Japanese companies has also more than doubled in the 10 years since 2011,40 and business restructuring is also making progress.Japan has been experiencing a long-term trend of excessive market competition compared to Europe and
83、 the U.S.However,after COVID-19 there are signs of improvement in the level of market concentration.The Herfindahl-Hershman Index,which indicates the degree of market concentration,shows an increase in the index from 2020-2022 compared to 2014-2019,suggesting the improvement of the status of excessi
84、ve market concentration.At the same time,the index showing the reallocation of resources among industries from low-productivity sectors to high-productivity sectors(the redistribution effect in increasing firm productivity)is also improving after COVID-19,indicating a virtuous cycle in which a healt
85、hy replacement of industry raises productivity in the economy as a whole.41 (5)Necessity to carry this momentum to long-term sustainable growth Amidst this turning point,Japan is experiencing an environment where it is becoming difficult to secure human resources without a sustained wage increase.A
86、structural labor shortage caused by a shrinking working-age population and the labor participation rate reaching the highest level in the world are factors that are contributing to this environmental change.36 See Reference Materials,p.50,51.37 See Reference Materials,p.52,53.38 See Reference Materi
87、als,p.54.39 See Reference Materials,p.55.40 See Reference Materials,p.56.41 See Reference Materials,p.57.(Provisional Translation)11 With the growing need to support the creation of high value-added and the smooth movement of workers to high-productivity,high-wage sectors,now is the last chance to t
88、urn this turning point into sustainable and continuous growth,by actively utilizing discontinuous innovation and with a sense of urgency.It is necessary to secure resources for wage increases through the creation of high value-added businesses,business structure reform,and replacement of industry,as
89、 well as reform of corporate management to promote such changes.It is also necessary to ensure a safety net by providing reskilling and smooth labor mobility for individuals.Overcoming the pessimism about the future that has pervaded many citizens over the past 30 years is also necessary,to avoid fa
90、lling into a shrunk equilibrium in which people try to buy cheap goods and reduce investment.In light of the current uncertainties in the global economy,the accelerating decline of the domestic population,and the international policy competition to induce domestic investment,a policy approach to pre
91、vent the economy from falling into this cycle will be important in order to carry the momentum of this turning point to achieve sustainable and continuous growth.To this end,the government will implement the New Direction of Economic and Industrial Policies,in which the government steps forward to c
92、reate new demand and invest in high-value-added areas on the supply side to meet that demand,focusing on social issues as policy areas to engage in.II.New Direction of Economic and Industrial Policies(1)Fostering Expectations to achieve sustainable and continuous growth In order to carry the momentu
93、m of the current turning point(the willingness to make capital investments,the first wage increase in 30 years,and signs of replacement of industry)into long-term sustainable and continuous growth,an approach from both the supply and demand sides is necessary.From the demand side,the contractionary
94、equilibrium of buying cheap goods and restraining investment must be avoided,and new demand supported by continuous wage increases must be stimulated.On the supply side,it is necessary to enhance value creation of companies and invest in high-value-added fields to meet new demand.The key to all of t
95、his is the expectation of future growth,which is the concept emphasized in the New Direction of Economic and Industrial Policies.”As a developed country,it is difficult to identify the next growth“industry on an industry-by-industry basis,while the industrial structure is rapidly changing due to acc
96、elerated technological change and the shift from vertical integration to horizontal integration.What is clear,however,is that there are global social challenges that will persist in the future,and this is the starting point of the Mission-Oriented Industrial Policies of the New Direction of Economic
97、 and Industrial Policies.The Mission-Oriented Industrial Policy is designed to solve these social issues through industrial policies that are internationally competitive,including budgets(funds and national debt obligations)and taxation systems(long-term durations)to increase predictability and acce
98、lerate strategic investment.The Mission-Oriented Industrial Policy will create new domestic demand while strengthening international competitiveness,including export capabilities,and expanding overseas.At the same time,the socioeconomic system must be updated to accommodate the current economic and
99、industrial structure.In particular,in order for companies to secure the necessary labor force in the current labor shortage environment,it is necessary for companies to continuously increase wages as well as to(Provisional Translation)12 increase the added value of corporate activities in order to s
100、ecure the resources necessary for wage increase.Facilitating labor mobility and human investment such as reskilling is also important for this purpose.Utilizing this labor shortage environment,the government will also provide more support for companies that are willing to undertake management reform
101、 to create value.The government will also encourage the replacement of industry by fostering the development of sturdy companies,including startups and small and medium-sized enterprises(SMEs)that create new value.At the same time,we will develop human resources who will lead growth industries and c
102、reate an environment that will attract such human resources from around the world to Japan.This series of structural changes will be implemented as updating the socioeconomic system(OS).”The New Direction of Economic and Industrial Policies,consisting of Mission-Oriented Industrial Policies and Upda
103、ting Socioeconomic System(OS),is a policy framework in which the government steps forward to create growth markets through large-scale,long-term,and planned efforts,providing predictability to the market and new public-private partnerships.Now is the time to develop and continue the New Direction th
104、at was launched two years ago.(2)Policy Methods Constituting the New Direction”Mission-Oriented Industrial Policy To overcome the prolonged stagnation of domestic investment and promote investment in high value-added sectors,a credible and foreseeable image of growth with reduced uncertainty is requ
105、ired.Mission-oriented industrial policies are policies in which the government takes a step forward to play a proactive role in areas where social issues exist both in Japan and around the world,and where Japanese companies have the potential to contribute to these issues.The importance of the priva
106、te sector and an environment conducive to business remains the same as it has always been.However,it has become clear over the past 30 years that the private sector by itself cannot achieve domestic investment,innovation,and income growth as the public expects.To enhance investment in response to so
107、cial issues that exist both domestically and internationally,an image of growth and reduced uncertainty is necessary.The private sectors willingness to actively invest was once supported by a catching-up”mentality,but in the New Direction,this willingness will be aroused from the starting point of s
108、olving social issues.By setting long-term goals that resonate with many people and mobilizing all policy tools such as regulations,institutions,and standardization,we will develop demand that will expand over the mid-to long-term even under a declining population,while simultaneously fostering the s
109、upply side through large-scale,long-term,and planned support.By continuously implementing measures from both the supply and demand sides,including the acquisition of overseas markets,and by ensuring the predictability of the private sector,we will accelerate strategic investment at a global level.Go
110、vernment funds under the New Direction should be characterized as national strategic investments that will expand the nations wealth,rather than mere“support”.It should be noted that policy competition for inducing local investment is occurring on a global scale in growth sectors.While taking notice
111、 of policies in countries/regions such as the U.S.,Europe,China,Korea,etc.in mind,incentive levels that are internationally competitive should be established over a long,(Provisional Translation)13 predictable period(e.g.,5-10 years).As a result,domestic investment and innovation will be stimulated
112、as an attractive investment destination for companies even amidst a declining population.The New Direction takes ambitious challenges and fears policy inaction.The government should take bold challenges in solving social issues,an area where government involvement is justified,and learn from failure
113、s and change course when policies are not having the desired effect.Similarly,flexible adjustments must be made when environmental changes,including technology,cause major changes in the policy assumptions themselves.To facilitate appropriate course correction,including updating policy methods accor
114、dingly,it is important to establish appropriate specific indicators for monitoring and verifying policy effects,and to develop a system that enables the PDCA cycle.Updating socioeconomic system(OS)In order to resolve social issues in the areas identified in the Mission-Oriented Industrial Policies,i
115、t is necessary to develop a socioeconomic system that complements the mission-oriented industrial policies for each theme.These areas will be addressed as updates of the socioeconomic system(OS).For example,in order to realize social transformation in climate change and digital-related areas,it is n
116、ecessary to develop and secure human capital investments through reskilling and cross-sectoral labor market reforms.Expanding the number and scale of start-ups,which are expected to be the bearers of the innovations necessary for such reforms,as well as management reform of large domestic companies
117、towards making bold investments in new fields and creating new value are also necessary.Further promotion of globalization of the Japanese society in a way that is compatible with economic security is also critical to create a domestic environment that can attract human resources and knowledge that
118、the world is competing for.Even outside the scope of individual missions,updates of the socioeconomic system contribute to domestic investment,innovation,and income growth.We will implement policies for the update of the socioeconomic system from that perspective as well.Reorganization of 14 themes(
119、from 6 Missions+6 OSs+2 New Fields to 8 Missions+5 OSs)In the First Interim Report in 2022,we identified six policy areas to be addressed as Mission-oriented Industrial Policies,six policy areas to be addressed as Updating Socioeconomic System(OS),and two policy areas to be addressed as Areas to be
120、addressed during a turbulent period of economic order,and have been deepening our deliberations and implementing measures.Based on the discussions over the past year,we will review the structure of the Interim Report as follows:8 policy areas to be addressed as Mission-oriented Industrial Policy and
121、 5 policy areas to be addressed as Updating Socioeconomic System(OS).42 Inclusive growth has been an OS theme,but since the essence of the problem addressed by this policy area is considered to be the social issue of declining birthrate,we have clarified the issue to be targeted as inclusive growth
122、in regions that contribute to combating declining birthrate,and have reviewed its position as a Mission-Oriented Industrial Policy.42 See Reference Materials,p.59.(Provisional Translation)14 Of the areas identified as Areas to be addressed during a turbulent period of economic order,growth-oriented
123、resource-autonomous circular economy is positioned as Mission-oriented industrial policy because it is considered to be a solution to the social issue of freeing the economy from resource constraints.The other area,The potential of Web 3.0 and policy response,is a cross-industry issue,but is conside
124、red one of the key areas of the digital society,so it shall be integrated into the realization of the digital society.(3)Overall Goals of New Direction In the First Interim Report,we set the expansion of investment as an economic goal,and we have been deeply examining this goal in light of the subse
125、quent economic environment(in particular,global policy trends,changes in the international order,and macroeconomic trends).As a result,although there are a wide range of factors to be considered when examining economic and industrial policies,we have redefined the virtuous cycle of domestic investme
126、nt,innovation,and income growth as the overall goals of the New Direction of Economic and Industrial Policies.The path leading to this virtuous cycle is as follows.Mission-oriented industrial policies will create new demand supported by the need to solve social issues.Such demand will promote domest
127、ic investments and the development of new products/services that contributes to resolving social issues.Such investments serve as catalysts to realize innovation.New businesses that emerge from those innovations will also become new investment targets.As a result,wages will rise from improved labor
128、productivity through increased capital-labor ratio and new added value through innovation.To accelerate this change,updates of the socioeconomic system(OS)is necessary such as investment in human capital,enhancing value creation of companies(including start-ups),and strengthening ties with foreign c
129、ountries.As higher wages prevail,consumption of individuals will increase and demand will expand.Improved corporate earnings and higher expected growth rates will induce companies further domestic investments and accelerate innovation to capture growth markets.The beginning of this virtuous cycle is
130、 already being observed as a“turning point”from the lost 3 decades.To achieve sustainable and continuous growth,it is critical to foster expectations toward future growth.This will contribute to halting the decline in the birth rate through improved economic conditions,stabilize the demographic cond
131、itions,and eventually lead to long-term growth.To this end,the next 3-5 years will be a“focus period to jump-start growth over the next 10 years,and to sustain the three virtuous cycles over the medium to long term(5-10 years).In order to sustain effective measures,it is important to establish indic
132、ators to monitor the progress of the virtuous cycle in the Japanese economy as a whole and in each of the sectors to be addressed under the New Direction,and to continue implementation while making course corrections.To this end,METI will set and monitor these related indicators as organizational KP
133、Is.In addition,it is necessary to add and refine the currently established indicators as necessary based on monitoring trends.(4)Economic,industrial,and social structures that support goal achievement Overall view(Provisional Translation)15 The image of long-term sustainable growth in which the retu
134、rn on investment is foreseeable comes from social issues that can be foreseen in the mid-to long-term.Therefore,the goal of the economy,industry,and society is to achieve both economic growth and solutions to social issues.As Japan becomes a medium-sized economy in the world in the long term,it beco
135、mes increasingly difficult to meet all of its domestic needs on its own.Thus Japan will need to cooperate with other countries more than ever before.On the other hand,the global free trade system based on WTO rules is no longer as influential as it used to be due to changes in the international econ
136、omic order caused by rising geopolitical conflicts.The industrial structure should become one that generates high added value in response to new demand.Industries competing under global competition need to pursue speed and scale with a view to competing in the world market from the beginning instead
137、 of optimizing only for the domestic market,while giving due consideration to economic security.From this perspective,the fields that should become the core of future global competition-oriented investments will be those that aim to become world leaders in solving social issues(GX,health,etc.)or tho
138、se that aim to play a central role in the global supply chain(semiconductors,storage batteries,etc.).It is inevitable that labor input as a whole will decline for the foreseeable future due to the small room for growth in the labor participation rate and the continuing downward trend of the working-
139、age population.Under these circumstances,the transfer of labor and other resources from mature industries will be essential to build a new industrial structure centered on solving social issues.To this end,it is necessary to create an environment in which labor can move safely and independently,and
140、to ensure a safety net for this purpose.At the same time,it is necessary to encourage companies to move their resources to growth areas through the replacement of industry.In addition to supporting startups as bearers of new businesses,existing companies must not only continue their existing busines
141、ses,but also pursue new added value and growth,and shift to a startup model that can boldly invest in new business creation as well.In addition,as more thorough digitization and data utilization are needed in many fields to create new added value,it will be essential for the public and private secto
142、rs to step forward with the idea of proactively building such a platform,even for cross-industry collaboration infrastructure(platform)with data collaboration at its core.Demographics,which is one of Japans most important social and economic issues,must be addressed as an important issue from the pe
143、rspective of economic and industrial policy as well.It is desirable to create an economic environment in which the desired fertility rate,which is currently declining,is restored to 1.8 and further where demographics could be stable in the future.This would provide an environment where expectations
144、for the future mentioned at the beginning of this chapter can be sustained over the long term.To this end,it is necessary to create local jobs that are attractive to young people,especially women,and to promote reforms in working hours and styles.In advancing the New Direction of Economic and Indust
145、rial Policies,it is important to continue building a clearer vision of the economy,industry,and society to be pursued,including the aspects indicated above,and this will be an ongoing effort.Direction of Policy from a Macroeconomic Perspective(Provisional Translation)16 First,as a goal for the econo
146、my as a whole,emphasis will be placed on the affluence of the people.The realization of affluence is not limited to the mere maximization of corporate profits,but also spills over to each industry through such channels as the revitalization of personal consumption,the realization of an environment i
147、n which people can feel hope towards marriage and raising children,and the resulting stabilization of demographic trends.In this sense,it is necessary to be aware of the linkage with macroeconomic management in industrial policy at each policy area.In addition,it is necessary to clarify the stance t
148、hat economic growth is the foundation of healthy public finance,and to position the government budget as an investment towards future growth of the entire economy.In doing so,it is important to utilize fiscal spending in a flexible manner and at a sufficient scale as necessary,as long as it can be e
149、xpected to generate a return in the future.As an example,an EBPM study of government support for semiconductor investment shows that over the first 10 years of support,tax revenues may exceed government spending.43Government spending to solve social issues is not simply aimed at recovering the amoun
150、t of spending through tax revenues,but is also intended primarily for policy values,such as revitalizing local economies and addressing issues such as economic security.This is one example of how timely,flexible,and well-planned government spending can generate returns as an investment.In order to m
151、aximize the value of public investment as strategic investment that attracts private investment,it is important to create a predictable business environment in which the private sector can invest with confidence.At the Public-Private Partnership Forum on Increasing Domestic Investment held at the Pr
152、ime Ministers Office,the business community proposed the goal of 115 trillion yen in domestic investment in FY2027,a goal to be raised even higher by strengthening policies.Realizing these goals by creating a predictable business environment is an important target,as it will create quality jobs in r
153、ural areas,reverse the downward trend in the desired birth rate,and create momentum for reversing the population decline through a sustained increase in the birth rate.To this end,the next 3-5 years will be positioned as a focus period to jump-start growth over the next decade,and we will work to su
154、stain the virtuous cycle of domestic investment,innovation,and income growth over the mid-to long-term(5-10 years).Market size in individual sectors The following are examples of the scale of the economy that could be achieved through these New Direction policies in individual mission areas.Realizat
155、ion of a carbon-neutral society:Over 150 trillion yen of public and private investment over the next 10 years,with government support of 20 trillion yen for this purpose.44 Realization of a digital society:Demand will be created for new services through digitization,and capital investment,including
156、software,will increase.For example,by 2030,we aim to increase the total sales(semiconductor-related)of companies producing semiconductors in Japan to over 15 trillion yen.45In addition,by 2030 at the latest,establish a domestic manufacturing base of 150 43 See Reference Materials,p.60.44 See Referen
157、ce Materials,p.67.45 See Reference Materials,p.72.(Provisional Translation)17 GWh/year for storage batteries and materials,and secure manufacturing capacity of 600 GWh/year(more than 20%share)in the global market for all Japanese companies by 2030.46 Realization of Economic Security:Increased Autono
158、my,Securing Superiority and Indispensability,and Maintaining International Order47 Realization of a new healthy society:77 trillion yen in public uninsured services in 205048 Realization of a resilient society against disasters:Adaptation market will grow to about 70 trillion yen in developing count
159、ries by 2050.49 Realization of the bio-manufacturing revolution:Total market size of 92 trillion yen as of 2030.50 Establishment of a growth-oriented,resource-autonomous economy:Realization of a circular economy market of 80 trillion yen in 2030 and 120 trillion yen in 2050.51 Inclusive growth of th
160、e region that contributes to combating the declining birthrate:By increasing disposable income and time through the growth of local businesses,etc.,the desired birthrate of 1.8 will be restored and the desired level of demographic stability will be realized in an economic environment that will lead
161、to further demographic stability.52 .Key Policy Tools for the Virtuous Cycle of Domestic Investment,Innovation,and Income Growth The following policy tools are the major tools to realize the virtuous cycles of domestic investment,innovation,and income growth.Through these measures,we will achieve bo
162、th the realization of long-term sustainable growth and the resolution of social issues in the areas addressed by the Mission-oriented Industrial Policy.Supporting this progress are the promotion of private investment based on future growth expectations,high value-added corporate activities,and the t
163、ransformation of the economic and industrial structure.53 (1)Expansion of domestic investment World-class,long-term,and large-scale support is necessary in strategic areas(GX,DX,etc.).This includes multi-year support to improve predictability,support that goes beyond initial investment,and further c
164、onvenience and flexibility for companies.*Industrial sites/infrastructure necessary for investment should be developed in the next several years.Afterwards,necessary measures to promote investment should be implemented from time to time.Local investment should be promoted as a measure against the de
165、clining birthrate.For this purpose,intensive support for medium-sized enterprises*,creating growth-oriented SMEs,and promoting labor-saving investment to overcome labor shortage is necessary.46 See Reference Materials,p.74.47 See Reference Materials,p.84.48 See Reference Materials,p.90,91.49 See Ref
166、erence Materials,p.96.50 See Reference Materials,p.98.51 See Reference Materials,p.108.52 See Reference Materials,p.115.53 See Reference Materials,p.62.(Provisional Translation)18 (2)Acceleration of innovation Business structural reforms for high value-added and promotion of replacement of industry
167、is necessary.For this purpose,measures for listed companies with P/B ratios below 1,and promotion of succession within the family,M&A,and spin-offs shall be considered.Development of a world-class innovation investment environment,including an innovation box regime and a common data-sharing infrastr
168、ucture for storage battery CFP,automatic operation data,etc.World-class support for innovation in strategic areas such as GX,semiconductors,AI,quantum,space,biomanufacturing,and health.Steady promotion and reinforcement of the 5-year plan for startup development,including extending the JIC operation
169、 deadline*and expanding the scope and relaxing requirements for overseas investment of LPS investments*.(3)Income growth Improving the environment for wage increase,including providing integrated support for price pass-on measures,expansion of the tax system for wage increase,support for business re
170、structuring and productivity improvement,and career counseling,reskilling,and job change.Creating quality jobs in rural areas,including reform of workplaces to balance child rearing and promotion of women within workplaces.*.Responses to be considered with a view to amending laws such as the Industr
171、ial Competitiveness Enhancement Act.(Provisional Translation)19 IV.Sector-specific measures Mission-oriented industrial policy In order to ensure that the aforementioned macro challenges and directions of the Japanese economy as a whole and the micro responses in individual themes are consistent,it
172、is important to organize each policy according to a common framework across themes.For this purpose,for each of the eight themes of Mission-oriented Industrial Policies should:organize the social issues and needs to be addressed based on a global perspective and Japans position in the world,set a mi
173、ssion to be realized through cooperation between the public and private sectors,and identify the demand to be met upfront and the new supply to meet it,Set long-term goals for the foreseeable future,and Organize past and future measures.(1)Realization of a carbon-neutral society Social issues and ne
174、eds to be addressed(Global demand and investment competition for GX)The global climate change issue has become a common challenge for all humankind,with extreme weather events occurring on a global scale and the number of large-scale natural disasters increasing.In this context,Western countries hav
175、e already accelerated their decarbonization efforts in the wake of Russias invasion of Ukraine,and are accelerating their national efforts toward an early transition to a carbon-neutral society by supporting investments that lead to decarbonization in the power generation,industrial,transportation,a
176、nd household sectors.Against this backdrop,according to the IEA,decarbonization demand(capital investment),which currently averages about$2 trillion per year,is expected to grow to$5 trillion per year by 2030.Surrounded by the sea and lacking readily available resources,Japan has long been active in
177、 R&D related to decarbonization-related technologies,and Japanese companies possess technological strengths in many areas.Accelerating GX by making maximum use of these technological fields will not only lead to a stable energy supply,but also has the potential to serve as a catalyst for putting Jap
178、ans economy back on a growth trajectory.For example,if countries around the world pursue initiatives aimed at a scenario that limits post-industrial temperature rise to within 2C,the value of the GPIFs domestic equity would increase by 11.2%as Japanese companies demonstrate their technological stren
179、gths in meeting global demand for emission reductions.Mission Achieve international commitments such as carbon neutrality by 2050,and simultaneously realize Japans industrial competitiveness and economic growth.Demand that should be met proactively and new ways of supply to meet this demand.It is es
180、timated that over 150 trillion yen in investment over 10 years will be required to achieve carbon neutrality,industrial competitiveness,and economic growth at the same time.In order to realize such investments through public-private partnerships,it is necessary first of all,to provide an(Provisional
181、 Translation)20 integrated road map for the major areas where GX investments are expected in the future,including targets for the introduction of new products in each area and the timing of the introduction of new regulations and systems,as well as to provide long-term,multi-year support measures as
182、 a national government to enhance the predictability of the private sector.The government needs to provide long-term,multi-year support measures to enhance private-sector foresight.For this purpose,the GX Promotion Act and other measures will be used to realize and implement the Growth-Oriented Carb
183、on Pricing Concept,including the creation of a mechanism to put a price on carbon emissions and increase the added value of GX-related products and businesses by introducing carbon pricing in a low initial price and gradually increasing it,along with upfront investment support of 20 trillion yen thr
184、ough the use of GX Economic Transition Bonds,and providing incentives to businesses that are ahead of the curve in GX initiatives.The Growth-Oriented Carbon Pricing Concept will be realized and implemented,including the creation of a mechanism to provide incentives to businesses that are ahead of ot
185、her GX-related businesses,and the use of new financial methods.In addition,promote international development strategies such as the Asian Zero Emissions Community(AZEC)concept,fair transition,and GX for society as a whole,including small and medium-sized enterprises(SMEs).We will study and implement
186、 measures with industry and experts,and will regularly evaluate and analyze progress and make necessary revisions based on them in an effective manner.Long-term goals for the foreseeable future Over the next 10 years,public and private GX investments of over 150 trillion yen will be realized.Reduce
187、greenhouse gas emissions by 46%in FY2030 and achieve carbon neutrality in 2050 Past and future measures(.measures implemented to date,.measures to be implemented in the future)【Examples of measures taken to date】Present a 46%reduction target for emissions in FY2030 and formulate measures to achieve
188、it(e.g.,global warming action plan).Formulate strategies to promote innovation in energy and environment-related technology fields that will be important for becoming carbon neutral by 2050(e.g.,Green Growth Strategy).It is necessary to draw a feasible path toward the goals of 2030 and 2050,and to m
189、aterialize and implement measures based on a line rather than a dot.【Growth-oriented carbon pricing concept】(For each of the 22 priority areas,a comprehensive roadmap is clearly defined,including targets,necessary investment amounts,regulatory and support measures,and international strategies.Progre
190、ss will be evaluated,analyzed,and revised as necessary based on the opinions of experts,etc.)(In common with other areas,consider budget and tax schemes in strategic areas(GX,DX,etc.)that are competitive with Europe and the U.S.for expanding Domestic investment:improve predictability through a multi
191、-year system,support that goes beyond initial investment,and increase convenience and flexibility for companies(consider revisions to the law).(Consideration with a view to revision of(Provisional Translation)21 the law as well)Issuance of GX Economic Transition Bonds(to be discussed by relevant min
192、istries and agencies this fiscal year with a view to issuing a new form of bonds in compliance with international standards)Introduction of an emissions trading system(A trial emissions trading system will be launched in the GX League in FY2023,and full-scale operation will begin in FY2026.Paid auct
193、ion will be introduced for power generators in phases starting in FY2033(with specific business contribution).Introduction of a fossil fuel levy(A fossil fuel levy system will be introduced starting in FY2028,with a levy on importers,etc.based on the CO2 emissions of each fossil fuel.)Utilization of
194、 new financing methods(To accelerate GX investment,the GX Promotion Organization will implement risk supplement measures(debt guarantees,etc.)in the social implementation stage of GX technology.The GX Promotion Organization will also work to foster international understanding of transition finance a
195、nd create an environment for the promotion of sustainable finance.)(Since cooperation among multiple companies is important to implement GX,we will consider measures to support the efforts of businesses,etc.to address issues related to antitrust law,such as joint disposal of equipment,joint procurem
196、ent of raw fuel,etc.,and data sharing,taking into account the international competitive situation.)【International Expansion Strategy】Formation of a clean market(promote the establishment of an international evaluation method for the diffusion of green products,as well as the creation of a new value
197、axis to evaluate the contribution of companies to the reduction of greenhouse gas emissions in society as a whole(reduction contribution).Promote GX in Asia(realize the Asian Zero Emissions Community(AZEC)concept and further promote GX in Asia)【Fair transition,GX for society as a whole,including sma
198、ll and medium-sized enterprises】Reskilling support,etc.(Promote both skill acquisition and smooth labor mobility to green and other growth sectors.)Promote GX in regions and lifestyles(In addition to the creation and nationwide development of decarbonization leading regions,local governments will ta
199、ke the lead in decarbonizing their administrative operations by utilizing financial support.A new national movement will be developed nationwide to stimulate demand for decarbonized products,etc.)Promotion of GX for small and medium-sized enterprises(promote initiatives throughout the supply chain,i
200、ncluding SMEs,through support using manufacturing subsidies,human resource development of SME support organizations for push-type support,further expansion of partnership building declarations,etc.)GX Startup Support(Radically strengthen support for R&D,social implementation,etc.for startup companie
201、s in GX-related fields.)【Progress evaluation and review】Periodic progress evaluation and review(In implementing new policy initiatives to realize GX,such(Provisional Translation)22 as the Growth-Oriented Carbon Pricing Initiative,progress evaluation will be conducted periodically at the GX Implement
202、ation Council and other bodies,taking into account the progress of GX investment in the public and private sectors,global trends and their impact on the economy,trends in technological development,etc.,and necessary reviews will be effectively conducted based on these assessments).(In implementing t
203、he new policy initiatives to realize GX,including the GX Concept,the progress of GX investment by the public and private sectors,global trends and economic impacts,and trends in technological development will be regularly assessed by the GX Executive Committee and other bodies,and necessary revision
204、s will be effectively made based on the assessment.)(2)Realization of a digital society Social issues and needs to be addressed(Significance and impact of the realization of a digital society)In an advanced digital society(Society 5.0)where cyberspace and physical space are highly integrated,all peo
205、ple and things will be connected,various knowledge,information,and data will be shared,and necessary information,data,and services will be provided when needed.In addition,the use of AI will create new innovations one after another and enable activities that transcend the conventional limits of huma
206、n cognition and ability,thereby solving various issues that have been difficult to solve in the past.Therefore,through the realization of a digital society,in addition to the GX and economic security,issues such as the declining birthrate,aging population,Labor shortage,depopulation of rural areas,a
207、nd disparity between the rich and the poor can be overcome.The digital-related technologies that support such a digital society are evolving at a remarkable pace,and at times,technological innovations that could be described as discontinuous,such as generative AI,can quickly create new demand and so
208、lve previously unimaginable problems.To this end,we will create an environment in which innovations that have not yet been seen can be created one after another in order to realize a digital society,thereby helping to overcome these fundamental issues and creating new added value for society.We will
209、 also contribute to the realization of a society in which people can have hope and in which each individual can play an active role comfortably.(Progress of digitization across industry and society)Today,digitalization is accelerating in all industries and societies.The rapid advancement of computer
210、-related technologies/communication-related technologies has led to the development of digital-related devices that are larger in capacity,faster in speed,smaller in size,and more power-efficient,and information processing,which was initially utilized only in certain fields,is now used in all areas
211、of industry and society.We are entering an era of competition to be the first to adopt cutting-edge digital-related technologies that are constantly innovating,and to compete in how to effectively use technology to create added value(DX)by making full use of data.At the same time,the development of
212、social infrastructure to implement digital services throughout society as quickly as possible is also an urgent issue,so that(Provisional Translation)23 people can experience the improvement in their lives and economic standards that digitalization brings.(Increased demand due to cycles of innovatio
213、n in digitally related technologies and increased and more sophisticated data processing)As semiconductors,which play a central role in information processing,continue to advance in sophistication,and the communications environment continues to increase in speed and capacity,new services that utiliz
214、e ever more sophisticated technology to process even more data are being created one after another.As digital technologies become more sophisticated,the volume of data processing expands,and the demand for advanced utilization of the large amount of data generated by the expansion leads to further d
215、evelopment of digital technologies,resulting in a constant cycle of digital-related technological innovation and data processing sophistication.This is a constant cycle of digital-related technological innovation and data processing sophistication.With the emergence of innovative technologies such a
216、s AI and quantum computers,which can be described as discontinuous,and the rapid implementation of technologies including Web 3.0/blockchain,demand for digital-related technologies continues to grow.In particular,with the emergence of generative AI,demand for computation will further expand as digit
217、al technologies are used in a wide range of fields,including those with high barriers to entry.(Need for continued major investment to join the leading group in the realization of a digital society)If we fail to ride the virtuous cycle of digital-related technological innovation and data processing
218、sophistication now,we will lose the opportunity to catch up with the leading group in the global digitalization trend and grow our countrys economy and society as a whole innovatively.Attracting advanced semiconductor industry,fierce competition among startups and major IT companies over generative
219、AI,securing the supply chain for quantum computers,and human resource development,R&D,and regulatory development for Web 3.0/blockchain,the world is making massive investments in digital-related fields and competing for leading group status.Intense competition.Japan has just embarked on large-scale
220、investments aimed at realizing a digital society,including the decision to take bold budgetary measures for the semiconductor industry.Mission To establish a leading position in the world of digital society by quickly realizing the evolution of next-generation computing platforms that incorporate AI
221、 and quantum computers,which will be the key to solving all social issues,and the semiconductors that support them,and by utilizing them to a high degree,to add value to industry and society as a whole.We are committed to the following goals.Specifically,the following three infrastructure will be de
222、veloped:(1)digital industrial infrastructure that supports computing power itself;(2)digital lifelines,which are the social infrastructure of hardware,software,and rules necessary for the implementation of digital services,including a data collaboration infrastructure that promotes data sharing acro
223、ss companies and industries;and(3)a digital human(Provisional Translation)24 resource infrastructure that supports the development of human resources responsible for social implementation of digital-related technologies(DX).Through the development of a digital human resource infrastructure that supp
224、orts the implementation of digital technologies,new products,services,and business models utilizing digital technologies will be created in Japan,creating new added value for the global economy and society as a whole(DX).We will revitalize the economy by creating many sustainable and valuable Web 3.
225、0-related businesses in the areas of culture,economy,finance,solving social issues,and other areas.The project also pursues the possibility of leading to the seeds of technology that will support the construction of a global data sharing infrastructure and the distribution of trust-secured data in t
226、he Society 5.0 era.Demand that should be met proactively and new ways of supply to meet this demand【Digital Industrial Infrastructure】Promote the advancement of key elements that determine computing power itself(semiconductors,software,etc.)and elements that realize an environment that can be utiliz
227、ed in any location(storage batteries,communication infrastructure,etc.).【Digital Lifeline】Developing new social infrastructure throughout the nation to promote social implementation of digital services,such as accelerating data collaboration across companies and industries.【Digital Human Resource In
228、frastructure】Promote the development and securing of human resources by industry,such as digital promotion personnel who are in charge of utilizing digital-related technologies for social implementation,and semiconductors and storage batteries that support digital industrial infrastructure.【Web 3.0】
229、Developing a business environment for the development of Web 3.0 and blockchain technology.Long-term goals for the foreseeable future Semiconductors:By 2030,the total sales(semiconductor-related)of companies producing semiconductors in Domestic will exceed 15 trillion yen through additional public a
230、nd private investments in the amount of over 10 trillion yen.Storage batteries:Establish a Domestic manufacturing base of 150 GWh/year of storage batteries and materials by 2030 at the latest,with additional public and private investment of over 7 trillion yen over the next 10 years,and ensure that
231、Japanese companies as a whole have a manufacturing capacity of 600 GWh/year(a share of over 20%)in the global market by 2030.Information Processing Infrastructure:The goal is to promptly foster fundamental research and development capabilities related to generative AI in Japan,and to have a general-
232、purpose quantum/classical hybrid computing infrastructure provided in Japan as a real business by 2030.Advanced information and telecommunications infrastructure:Through the development of distributed data centers and other computing resources in the region,a business model of local(Provisional Tran
233、slation)25 production for local consumption of data and energy will be realized,with a view to utilizing all-optical network technology,which is expected to be put into practical use around 2030.Digital Lifeline:Establish digital lifelines across the nation in every nook and cranny of the country,sp
234、anning hardware,software,and rules necessary for providing digitally-enabled services(formulate and implement a comprehensive national development plan for digital lifelines).Regarding the data linkage infrastructure for the supply chain and value chain,the total annual transaction value of products
235、 and services will be 10 trillion yen around FY2030 and 100 trillion yen around FY2050.Cyber Security:By 2030,establish a certification system for IoT devices and establish a center for improving cyber coping capabilities to improve cyber security measures for the entire country.Human resources for
236、digital promotion:Develop 2.3 million digital promotion human resources across the government by the end of FY2026.Web 3.0 and blockchain:Establish a business environment,build a global data sharing infrastructure,and promote the distribution of trust-secured data,leading to the realization of Socie
237、ty 5.0.Increase the number of companies and businesses that use Japan as one of their main bases while conducting international business activities and R&D,and the number of high-level human resources.(Other targets and reference indicators)【Digital Industrial Infrastructure】Semiconductors In order
238、to develop the industrial infrastructure indispensable for automated driving and robotics,etc.,we will establish a domestic supply system for advanced logic semiconductors that will increase the energy efficiency of information processing by 10 times compared to the current level by 2030,and will pr
239、omote the use of power semiconductors that will reduce power loss by 50%compared to the current level.Storage batteries Full-scale commercialization of all solid-state batteries around 2030,and Japan will maintain and secure its position as a technology leader after 2030.Advanced Information and Com
240、munication Infrastructure Aiming to develop open,secure,and robust 5G networks globally,we will increase the open RAN share and the share of Japanese companies in the global 5G base station market by 2030.【Digital Lifeline】DX of human flow and logistics The software,hardware,and rules infrastructure
241、 for drones,self-driving vehicles,service robots,etc.to operate autonomously at or above a certain speed will be provided in the drone area around FY2024,and the service area will be expanded to all of Japans trunk routes around FY2030,and to all of Japans inhabitable areas around FY2050.By FY2050,t
242、he service area will be expanded to all inhabitable areas in Japan.【Digital Human Resource Infrastructure】Digital Promotion Human Resources(Provisional Translation)26 From the viewpoint of utilizing new technologies such as generation AI,we will promptly implement policy measures to develop human re
243、sources for digital promotion,starting from where possible.Semiconductor Human Resources In addition to individual efforts by industry,educational institutions,and government,industry,academia,and government will work together to promote efforts on a regional basis to develop and secure human resour
244、ces who will support the semiconductor industry and be responsible for its future.With the aim of establishing a foundation for the design and manufacturing of next-generation semiconductors in the late 2020s,the LSTC will play a central role in studying the development of professional global human
245、resources who can handle everything from semiconductor circuit design to state-of-the-art packaging and mass production processes.Battery Personnel To develop and secure battery human resources,a battery human resources development program will be implemented at regional technical high schools,techn
246、ical colleges,and AIST Kansai Center,mainly in the Kansai region,from FY2024,and the efforts will be expanded to other regions from 2025 onward,depending on needs.Past and future measures(.measures implemented to date,.measures to be implemented in the future)【Digital Industrial Infrastructure】(Semi
247、conductor)Development of manufacturing infrastructure for semiconductors,manufacturing equipment,and sub-materials and raw materials(utilizing the Advanced Semiconductor Fund,the Economic Security Fund,etc.),R&D support for the establishment of next-generation semiconductor design and manufacturing
248、infrastructure,etc.(utilizing the Post-5G Fund),and human resource development(see【Digital Human Resource Infrastructure】,below).Continue and strengthen the development of manufacturing infrastructure and R&D support(based on the revised Semiconductor and Digital Industry Strategy to be compiled mid
249、year).(In accordance with the Semiconductor and Digital Industry Strategies,the Company will improve manufacturing infrastructure and provide R&D support for advanced and next-generation semiconductors,industrial specialty semiconductors,advanced packages,manufacturing equipment and materials,etc.,t
250、hat contribute to power savings and advanced computing power.)(Information Processing Infrastructure)Assistance in securing a stable supply of cloud programs,development of hybrid cloud usage infrastructure and hyper-distributed computing technologies(through the Economic Security Critical Technolog
251、y Fostering Program and the Post-5G Fund).Ensure development capacity for generative AI(development of critical cloud technologies,quantitative and qualitative expansion of computational resources,promotion of data maintenance and AI development in specific fields,accelerated support for companies d
252、eveloping competitive basic(Provisional Translation)27 models,and creation of a research environment that attracts top talent from around the world for friendly competition)Building information processing infrastructure through industrialization of quantum technology,etc.,and strengthening promotion
253、 and support of research and development for the industrialization of quantum computing technology.(Storage battery)Expansion of the manufacturing base for storage batteries and sub-materials(utilizing the Economic Security Fund),human resource development(see Digital Human Resource Base below),prom
254、otion of technological development of next-generation batteries,international collaboration with volunteer countries to strengthen the global supply chain,securing upstream resources,etc.Efforts to further expand the manufacturing base for storage batteries,sub-materials,and manufacturing equipment
255、Establishment of a public-private partnership system to secure upstream resources and expansion of JOGMECs functions Strengthening global supply chains by promoting strategic alliances of like-minded countries and overseas expansion Creation of new innovations in the storage battery field(technologi
256、cal development and verification,human resource development,data linkage infrastructure development,etc.,with a view to mass production of next-generation batteries)(Advanced Information and Communication Infrastructure)Assist with feasibility study of decentralizing data centers to rural areas Prom
257、ote regional decentralization of data centers(work to develop a third or fourth core data center in the Hokkaido and Kyushu areas to complement or substitute for the Tokyo and Osaka areas,etc.).Collaboration among countries through the economic version of 2+2,QUAD,etc.to promote open RAN,and support
258、 for the development of post-5G information and communication systems through the Post-5G Fund Strengthening Japans competitiveness for the advancement and international deployment of telecommunications infrastructure(work on technological development for stable and efficient operation of the entire
259、 base station system using post-5G funds,as well as for high-performance and energy-saving technologies).(Cyber Security)Promotion of enhanced cyber security measures throughout the supply chain,including SMEs(formulation and dissemination of guidelines,support for introduction of cyber security hel
260、pdesk services for SMEs,and training of security personnel)Revision and further dissemination of standards for cyber security help team services(to further address the needs of industry,including small and medium enterprises,to respond to increasingly sophisticated cyber attacks)Establishment of a b
261、ase to improve the cyber coping capability of the entire country through cooperation among industry,academia,and government,etc.(Provisional Translation)28 Creating an environment for secure software distribution and IoT security(Other)In common with other areas,consider budget and tax schemes in st
262、rategic areas(GX,DX,etc.)that are competitive with Europe and the U.S.to increase Domestic investment:improve predictability through a multi-year system,support beyond initial investment,and increase convenience and flexibility for companies(also consider legal reform).【Digital Lifeline】Design,devel
263、opment,and provision of mechanisms for data linkage and system linkage(publication of the 4D Spatiotemporal Information Infrastructure Guidelines(April 2023)and the Guidelines for Data Linkage Mechanisms in the Field of Supply Chain(May 2023).Launch of the URANOS Ecosystem,an initiative to design ar
264、chitectures,conduct R&D and demonstrations,and promote social implementation and dissemination in collaboration with industry,academia,and government in order to link and utilize data across companies and industries(April 2023).(April 2023).Social implementation of data linkage and system linkage me
265、chanisms in Japan(Release of a study policy for the formulation of a National Comprehensive Development Plan for Digital Lifelines(March 2023).OSS(Open Source Software)developed based on the guidelines.The goal is to enable private companies to utilize the software when developing their own systems.
266、Establishment of a certification system for public interest digital platforms(a data collaboration platform for sharing data across multiple companies,which ensures security,reliability,interoperability,and business stability,and has a certain level of public interest).(The National Comprehensive De
267、velopment Plan for Digital Lifelines will be formulated and implemented(The National Comprehensive Development Plan for Digital Lifelines will be launched in June 2023,and the National Comprehensive Development Council for Digital Lifelines will be established by the end of FY2023.The National Compr
268、ehensive Development Plan for Digital Lifelines will be formulated by the end of FY2023,including the formulation of digital architecture,etc.,the identification of digital lifelines to be developed in line with this plan,the specification of specifications and specifications,the identification of r
269、egions to be developed,and the identification of management entities based on an organized division of roles between public and private sectors.In accordance with the plan,the transition of services using digital technology from the demonstration stage to implementation will be accelerated,with the
270、aim of spreading the technology throughout the country.)International collaboration on data and system linkage mechanisms(G7 ministers agreed to work on ensuring international interoperability of digital infrastructure(April 2023)Ensure international interoperability(Ensure interoperability between
271、initiatives related to data linkage outside of Japan and the Uranos ecosystem.)【Digital Human Resource Infrastructure】(Human Resources for Digital Promotion)(Provisional Translation)29 Establishment of digital skill standards(end of 2022)and digital human resource development platform(from 2022)(pro
272、motion of corporate DX).Human resource development from the viewpoint of utilizing emerging technologies such as generative AI(while continuing discussions with experts and others to examine the need for policy measures,consider short-term measures such as revising digital skill standards and postin
273、g courses related to generative AI on platforms).Expansion of Unexplored Projects(IPA)and expansion to young human resource development initiatives,particularly in rural areas(Semiconductor Human Resources)Fostering human resources for semiconductors through local industry-academia-government collab
274、oration(e.g.,implementation of new curricula at educational sites,on-site classes by companies,etc.)Nationwide development of regional industry-academia-government collaboration mechanisms and systems Developing professional global human resources for semiconductor design and manufacturing(Battery p
275、ersonnel)The Consortium for Human Resource Development of Storage Batteries in Kansai compiled the direction of the educational program and action plan for FY2023.Collaboration between industry,academia,and government to organize learning content and instructional methods for educational programs(FY
276、2023)Start a battery human resource development program mainly in the Kansai region,and consider expanding the program nationwide(from FY2024 onward).【Business Environment Development for Web 3.0】Cryptographic assets issued by the corporation itself that meet certain requirements are no longer subje
277、ct to year-end mark-to-market taxation.Other crypto assets will also be examined as necessary,including legal and accounting treatment.In April of this year,an interpretation notice was published clarifying,among other things,that security tokens,which are tokens of securities that can be acquired a
278、nd held by Limited Partnerships for Investment(LPS),are eligible for investment.Consideration of adding cryptographic assets,tokens,etc.to the LPS investment targets(promote research and organization of the actual status of funding by businesses,etc.,and consider making investment targets under the
279、LPS Law if they contribute to promoting the smooth supply of funds to businesses(with consideration of amending the law).Study to ensure audit opportunities for businesses that handle tokens(study group established at JICPA)By the summer of 2023,the committee will proceed with studies to develop the
280、 necessary guidelines for audits,etc.Support for the creation of Web 3.0 use cases,human resource development in related fields,and the building of communities that contribute to technological development(Provisional Translation)30 (3)Realization of economic security Social issues and needs to be ad
281、dressed(Geopolitical structural changes that reverse globalization)Since 2010,while China has increased its presence,its policy of domestic production of strategic technologies and human rights issues have aggravated its confrontation with the United States.Concerns of so-called decoupling between t
282、he U.S.and China have increased in some advanced technology fields.With the disruption of global supply chains due to COVID-19 after 2020,and the addition of Russias invasion of Ukraine after 2022,a move toward market fragmentation is evident,as countries are increasingly attracting strategic indust
283、ry sectors domestically and shifting their focus to developing trading rules among volunteer countries rather than WTO trade rules The WTO is now a market fragmentation mechanism.The flow of globalization,in which people,goods,and money come and go freely,which had progressed under the stable intern
284、ational order after the Cold War,has changed,and a reverse turn is taking place.(Need to respond to political and economic intimidation)As changes in the geopolitical environment and conflicts of interest among countries in various positions become more apparent,there are also serious concerns about
285、 coercive actions by countries that seek to use their political and economic superiority to impose their will on other countries.In order to counter such political and economic intimidation,it is necessary to deepen cooperation with volunteer countries and organize a variety of countermeasures to ap
286、propriately respond to the nature of the intimidation.(Increase investment to maintain and improve autonomy and ensure superiority and indispensability)Uncertainty in the international economic order increases as a result of the above changes.Restructuring of the globally expanding supply chain is i
287、nevitable.In restructuring supply chains,it is necessary to improve autonomy by promoting efforts such as securing domestic production bases for goods and services that are important for maintaining industrial and social activities,and to ensure that Japan has an advantage in supplying essential ele
288、ments in the supply chain or has a low substitutability.It is necessary to secure an indispensable role.Ensure autonomy through the ability to provide essential elements that other countries recognize as necessary for cooperation with Japan,even if they cannot secure their entire supply chain within
289、 their own borders.Increased investment in acquiring new capabilities and upgrading existing capabilities to ensure dominance and indispensability.In response to political and economic intimidation,we will continue efforts to reduce its effectiveness in peacetime,such as by reducing our dependence o
290、n countries that act in an intimidating manner.Mission(Provisional Translation)31 Establish a foundation for activities that can maintain and stably develop Japans industrial and social activities even in the event of a major setback in globalization,disruption of international markets,and fragmenta
291、tion of supply chains.To this end,we will work to promote Economic Security by enhancing autonomy(eliminating vulnerabilities in key infrastructure,supply chains,etc.),ensuring superiority and thus indispensability(improving technological and industrial competitiveness and preventing technology outf
292、lows by strengthening R&D,etc.),and maintaining and strengthening the international order based on fundamental values and rules.Demand that should be met proactively and new ways of supply to meet this demand.(Supply chain resiliency)Provide large-scale,intensive,medium-to long-term support to secur
293、e stable supply of specific critical commodities,and develop domestic production infrastructure and diversify supply sources.(Ensuring technological superiority)Promote research and development of technologies that are important for Economic Security through programs such as the Economic Security Cr
294、itical Technology Fostering Program.(Enhancing Economic Intelligence)Initiated the development of a mechanism for information sharing between the public and private sectors to enhance economic intelligence,and the training of specialized personnel.Strengthening of management systems related to data
295、and information protection,including the introduction of security clearances,and upgrading of the security of information and communication services.(Strengthening the security and resilience of critical infrastructure,etc.)Preventing external influences from affecting the stable supply of infrastru
296、cture services by strengthening the ability to respond to cyber-attacks on critical infrastructure,etc.,and through the Economic Security Promotion Act.(Establishment of countermeasures against political and economic intimidation)Strengthening cooperation with volunteer countries that share concerns
297、 about political and economic intimidation and establishing a process for organizing and invoking various countermeasures against coercive actions.Reinforcement of peacetime efforts to reduce reliance on countries that adopt coercive behavior in order to diminish the effects of coercive behavior.Lon
298、g-term goals for the foreseeable future To realize an environment in which a stable supply of specified critical commodities is ensured,including the achievement of the targets set in the Policy on Initiatives for Securing Stable Supplies of Specified Critical Commodities,as well as to ensure the st
299、able provision of key infrastructure services and to promote research and development of technologies important for Economic Security.(Provisional Translation)32 (Example.)Semiconductors:Achieve over 15 trillion yen in total sales(semiconductor-related)for companies producing semiconductors in Japan
300、 in 2030(reiterated).Storage batteries:Establish a domestic manufacturing base of 150 GWh/year and secure manufacturing capacity of 600 GWh/year in the global market by 2030,etc.(reiterated)Machine Tools and Industrial Robots:In 2030,we will secure production capacity of approximately 110,000 units/
301、year for machine tools and 350,000 units/year for industrial robots.Ensure reliability regarding mission-critical infrastructure Cultivation and social implementation of critical technologies through the Economic Security Critical Technology Fostering Program Past and future measures(.measures imple
302、mented to date,.measures to be implemented in the future)【Supply Chain Resilience】Based on the Law for the Promotion of Economic Security,the government has designated 11 specified critical commodities(8 commodities related to METI,including semiconductors and storage batteries).Establishment of a f
303、und to support the efforts of private businesses in making capital investments,etc.to secure domestic production infrastructure to ensure a stable supply.Ongoing review of specific critical commodities(constant inspection of Japans supply chain,ongoing review of specific critical commodities,and con
304、sideration of the need for fund projects and capital reinforcement to cope with uncertainties in the business environment,etc.,regarding support measures based on the review as well).【Ensure technological superiority】Foster advanced critical technologies through the execution of the Fund for Fosteri
305、ng Critical Technologies for Economic Security(for an immediate 10-year period beginning in FY2022).Strengthening of technology preservation(constant review of investment screening and export control,strengthening of measures against forced technology transfer,further promotion of research integrity
306、,and specific studies on measures to prevent human resource outflow,etc.)【Strengthening the Security and Resilience of Critical Infrastructure】Preparations,etc.for the introduction of an advance screening system for the introduction of equipment into key infrastructure in accordance with the Law for
307、 the Promotion of Economic Security.Consideration of measures to ensure more appropriate management of sensitive data and the safety and reliability of information and communication technology services【Establish means to respond to political and economic intimidation】(To establish a system and frame
308、work for a government-wide review of economic coercion(To establish a system and framework for a government-wide review of how to prepare a comprehensive response to economic coercion in a wide range of areas,including people,goods,capital,and(Provisional Translation)33 services,under what strategie
309、s,in order to materialize cooperation within and outside the G7,so that the national interest is not harmed).(Promote)【Enhancing Economic Intelligence】Establishment of a system necessary for the collection and analysis of information,with the National Security Bureau as the command post,including re
310、levant government ministries and agencies.Collect,consolidate,and disseminate information related to Economic Security(to help industries and businesses make autonomous business decisions).(4)Realization of a new healthy society Social issues and needs to be addressed(Longer life expectancy and grow
311、ing health needs)Longevity is an irreversible trend for the entire world.Staying healthy is one of the fundamental human desires.The need to maintain good health for a long time and to become healthier is great not only among the elderly but also among the young,and both men and women,in Japan and a
312、round the world.Demand for health-related services,including medical care,is expected to increase against a backdrop of global population growth,urbanization,and aging populations in developed countries.At the same time,not only will gene therapy and regenerative medicine become more common,but heal
313、th-related services are also expected to expand new demands through the use of AI and other digital technologies PHRs are a prime example.As the decline in the working-age population is expected to accelerate in Japan in the foreseeable future,promoting the health of the nations citizens,regardless
314、of generation,will ultimately contribute to expanding the quantity and quality of the labor force and ensuring the sustainability of the social security system.(Increased demand with health as a gateway)There is potential to add value to all kinds of products and services,including clothing,food,and
315、 housing,with health as an entry point.However,if latent needs can be made apparent,demand for such products and services will grow even in a declining population.(Figures in parentheses represent current estimates of the market size in Japan.)Food will become high value-added due to health consciou
316、sness,such as supplements and health foods(3.3 trillion yen in 2020 8.3 trillion yen(3 times)in 2050)Health tourism(health-oriented travel)will add value to play(2.9 trillion yen in 2020 12.7 trillion yen(4 times)in 2050).The market for prevention-related products(hygiene products,etc.)to maintain h
317、ealth will also expand(0.2 trillion yen in 2020 6.8 trillion yen(34 times)in 2050).The pure private-sector market for people requiring support and nursing care,such as meal delivery services,will expand(5.4 trillion yen in 2020 18.7 trillion yen(3 times)in 2050),etc.(Provisional Translation)34 Healt
318、h promotion has the potential to stimulate overall Personal consumption.It has been pointed out that people in Japan,in particular,are hesitant to spend their income and savings on consumption due to uncertainty about whether they will be able to live adequately,including medical care and long-term
319、care.Creating an environment conducive to maintaining good health will reduce anxiety about the future and create a virtuous economic cycle through increased consumption.（Japan is the worlds most advanced country in terms of health)Japan leads the world in aging rate and healthy life expectancy.In o
320、ther words,the health challenges in Japan are a mirror image(leading indicator)of the future world,and new products and services that develop domestic demand adapted to the super-aging population can be exported to the rest of the world or otherwise developed overseas.Mission Based on these issues a
321、nd needs,as the worlds most advanced super-aging society,we will realize a new healthy society that simultaneously improves the health of the people,contributes to building a sustainable social security system,and achieves economic growth.Demand that should be met proactively and new ways of supply
322、to meet this demand.(PHR is the key to value-added creation)If changes in the highly individualized situation of personal health can be visualized,new added value can be created.The core of visualization is the use of PHR(Personal Health Record).(Health-related,uninsured products and services,includ
323、ing entry into other fields)There is a shortage of existing products and services(medical,nursing care,etc.),especially those related to health issues.There is potential to add high value to products and services in all areas,including clothing,food,and housing,with health as the starting point.Pote
324、ntial to stimulate new demand by creating an environment where people can safely use products and services that are not covered by public insurance,including not only services covered by public insurance but also those from other fields,and by making daily life the basis for health promotion.The mar
325、ket size of the domestic healthcare industry market outside of public insurance is expected to expand(24 trillion yen in 2020 77 trillion yen in 2050).The challenge is to ensure quality so that consumers can use the product with confidence,and to manifest latent needs for prevention and health promo
326、tion.(Enhancement of services with business caregivers in mind:especially nursing care)In particular,business caregivers who provide care while working are leaving their jobs on a large scale and continuously because they can no longer bear the burden,a major loss from the perspective of securing Ja
327、pans labor force.This is due to the fact that the family members of the care recipients are forced to sacrifice their own work to cope with caregiving.If we can develop potential demand for nursing care that cannot be met by current public nursing care services and provide appropriate(Provisional Tr
328、anslation)35 private-sector services,along with reforming work styles so that caregivers can balance work and nursing care,we may be able to reduce the number of caregivers leaving the workforce.Expansion of medical and long-term care services utilizing public insurance is important.However,due to t
329、he constraints of company insurance and finances,greater efficiency is needed through the development of nursing care equipment using ICT and robot technology.Diverse needs that cannot be met by public insurance require expansion of services outside the public insurance system(i.e.,long-term care in
330、 addition to medical care).(Responding to new medical needs through programmed medical equipment,etc.)There are many unmet medical needs that remain unresolved(unmet medical needs)throughout the world.Programmed medical devices such as AI imaging diagnostics and apps to help patients change their be
331、havior need to be developed and commercialized.It is necessary to promote overseas development of innovative products and medicines possessed by start-ups in the medical device and drug discovery fields to expand the scale of their business.With regard to biopharmaceuticals,in light of the situation
332、 where the new corona vaccine was dependent on imports from overseas,it is necessary to establish a dual-use manufacturing base,etc.in Japan and build a production and supply system from normal times.Long-term goals for the foreseeable future Healthy life expectancy 72 years in 2016 75+years in 2040
333、 Healthcare industry market outside of public insurance(Japan)24 trillion yen in 2020 77 trillion yen in 2050 Japanese companies share of medical devices(global):3 trillion yen in 2020 13 trillion yen in 2050 Past and future measures(.measures implemented to date,.measures to be implemented in the future)【Promotion of PHR,promotion of healthcare startups(mainly contributing to extension of healthy
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