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Summary of the White Paper on
Manufacturing Industries
(Monodzukuri) 2010
June 2010
Ministry of Economy, Trade and Industry
Ministry of Health, Labour and Welfare
Ministry of Education, Culture, Sports, Science and
Technology
2
<Table of Contents>
Part 1 Current State of Manufacturing Infrastructure
Technology and Related Issues
Part 2 Measures and Policies Implemented in Fiscal 2009
Relating to the Promotion of Manufacturing Infrastructure
Technology [P70]
Chapter 1 Status of Manufacturing Industries in Japan in correlation
with changes in domestic and overseas economies [P3]
Section 1 Trend in Japan‘s manufacturing industry
Section 2 Current state of employment/labor of manufacturing workers
Chapter 2 Challenges and Prospects Facing Japan’s Monodzukuri
Industries [P11]
- Restructuring the business strategy in Monodzukuri industries in Japan in order
to respond to international structural changes -
Section 1 Manufacturing industries in Japan face structural changes in the global
economy
Section 2 Restructuring of the manufacturing (monodzukuri) structure in Japan in order to
respond to changes in global markets
Section 3 Initiatives by manufacturing industries with a view to adapting to change and
developing next-generation industries
Section 4 Manufacturing industries in Japan are required to deal with resource and
environmental constraints
Chapter 3 Employment Strategy and Development of Human
Resources for Sustainable Recovery [P36]
Section 1 Employment strategy and development of monodzukuri human resources for
sustainable recovery
Section 2 Skill development measures related to monodzukuri
Chapter 4 Current State of, and Challenges in relation to, the
Education, Research and Development to Support the Basis of
Monodzukuri [P47]］
Section 1 Development of monodzukuri human resources and enhancement of career
and vocational education
Section 2 Promotion of R&D to enhance industrial capabilities
▲ 40
▲ 35
▲ 30
▲ 25
▲ 20
▲ 15
▲ 10
▲ 5
0
5
10
15
20
25
30
35
Steel
Chemicals
Electrical machinery
Electronic components/devices
General machinery
Transport machinery
Others
Manufacturing industries
(%)
(Economic
recession
/recovery
phases)
60
70
80
90
100
110
120
130
-36
-30
-24
-18
-12 -6 0 6
12
18
24
30
36
42
48
54
60
66
Recession phase*
From Jan. '77
From Feb. '80
From June '85
From Feb. '91
From May '97
From Nov. '00
From Oct. '07
(Number of months
from
economic
trough)
▲ 2
▲ 1
0
1
2
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ
07 08 09
Services Non-durable goods
Semi-durable goods Durable goods
Total
(%)
(Quarter)
(Year)
▲ 5
▲ 4
▲ 3
▲ 2
▲ 1
0
1
2
3
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ
07 08 09
Net exports Public inventoriesPublic investment Government consumptionPrivate inventories Corporate capital investmentResidential investment Final consumption spendingGDP (expenditure side)
(%)
(Quarter)
(Year)
3
Although production is recovering, its level is about 85% of the peak level. As for the trend in production during
past recession and recovery phases, production increased in a broad range of business sectors after the bursting of
the economic bubble in the early 1990s, and the electronics components and devices industry led production in
Japan in the previous recovery. This time, the transport machinery industry is recording a remarkable production
increase.
Chapter 1 Status of Japanese manufacturing industries in relation to
domestic and overseas economies
Part 1 Current Status of Manufacturing Infrastructure Technology and Related Issues
Amid the ongoing significant changes in the domestic and overseas economies following the global recession,
Japan‘s real GDP posted a steep negative growth of 5.0% in 2009. However, since the second quarter of 2009,
real GDP has recorded positive growth, supported mainly by external demand and final consumption expenditures
due to the effects of policy measures and the recovery of overseas economies. In the fourth quarter of 2009, real
GDP posted a positive growth of 0.9% (annualized growth of 3.8%) according to the second preliminary data.
Section 1 Status of Japan‘s manufacturing industry
(Situation surrounding Japan‘s manufacturing industries Japan‘s economic conditions)
(Notable features of the recovery from the global recession (1) production)
Source: Cabinet Office ―National Accounts‖
[Chart 1-1 Changes in Contributions of GDP
Components to Real GDP Growth Rate]
[Chart 1-2 Components of Household Final Consumption
Growth (compared with the previous quarter)]
Source: Cabinet Office ―National Accounts‖
Net exports and final
consumption contributed to
positive growth.
Due to policy effects,
durable goods
contributed
significantly to positive
growth.
Net exports
Final
consumption
Durable
goods
3
[Chart 1-3 Patterns of Production Adjustments and
Recovery in Manufacturing]
Remarks: For descriptive purposes, the above indexes were
calculated with each economic peak as 100. *For the current
recovery, February 2009 was deemed to be the trough.
Source: METI „Indices of Industrial Production”
Remarks: For descriptive purposes, February 2009 was
deemed to be the trough for the current recovery.
Source: METI “Indices of Industrial Production”
[Chart 1-4 Changes in Contribution to Production
Recovery by Business Sector]
Electronics
components/devices
industry led a
production increase.
An increase in
transport machinery
production led a
production increase.Production
increased in a wide
rang of sectors.
From Jan, ‗77
In ‗80s
From ‘90s
Current
recovery
15
10
5
0
5
10
15
20
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
09Ⅱ
09Ⅲ
09Ⅳ
Hokkaido Tohoku Kanto Chubu Kinki Chugoku Shikoku KyushuOkinawa
Others
Transport machinery
General machinery
Electronic components/devices
Electrical machinery
Chemicals
Steel
Manufacturing industries
(%)
▲ 70
▲ 60
▲ 50
▲ 40
▲ 30
▲ 20
▲ 10
0
(%)
Kanto
Tohoku
HokkaidoChubu
KinkiChugoku
Shikoku
Kyushu/
OkinawaNation-
wide
89
99
109
119
129
139
Ⅱ Ⅰ Ⅳ Ⅲ Ⅱ Ⅰ Ⅳ Ⅲ Ⅱ Ⅰ Ⅳ Ⅲ Ⅱ Ⅰ Ⅳ Ⅲ Ⅱ Ⅰ
97 98 99 00 01 02 03 04 05 06 07 08 09 10
Exchange rate of the quarter
Assumed exchange rate
(Yen/dollar)
(Quarter)
(Year)
35
45
55
65
75
85
95
105
115
1011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3
07 08 09 10
Total export
valueChina
NIEs
Other Asian
countriesU.S.
EU
Other regions
(Month)
(Year)
0
10
20
30
40
50
60
0
5
10
15
20
25
30
35
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Whole Asia (right axis) China (left axis)
U.S. (left axis) EU(left asix)
(Year)
(%) (%)
(Notable features of the recovery from the global recession (2) Conditions of local economies and
SMEs)
As a result of the global economic recovery led mainly by Asia and a pickup in production in the transport
machinery and other industries due to progress in inventory adjustments, the transport machinery, electronic parts
and devices and electrical machinery industries are leading production in various regions in Japan. The business
conditions of small and medium-size enterprises (SMEs) remain severe on a region-by-region basis, although
they are improving.
China‘s share as a destination of Japanese exports in terms of value has exceeded the shares of the United
States and the EU. After the outbreak of the global recession, demand from emerging Asian economies, mainly
the Chinese economy, has supported Japanese exports.
Meanwhile, the yen‘s exchange rate has stayed higher than the level assumed by exporting companies because
of its recent appreciation, so it should be kept in mind that the strong yen could have a significant impact on the
business environment for Japan‘s manufacturing industries.
(Notable features of the recovery from the global recession (3) Exports)
4
[Chart 1-5 Changes in Contribution to Indices of Industrial
Production by Region (compared with the previous quarter)]
Source: METI and regional bureaus of economy, trade and
industry, ―Indices of Industrial Production‖; Okinawa Prefecture,
―Indices of Industrial Production‖
Recovery in the transport machinery, electronics/components/devices,
and electrical machinery industries led the recovery of regional
economies.
[Chart 1-6 Business Condition DIs for SMEs
(manufacturing sector) by Region]
Remarks: The above figures are for the second quarter
of 2005 to the first quarter of 2010 (seasonally adjusted,
compared with the previous quarter).
Source: METI, ―Indices of Industrial Production‖
Source: Ministry of Finance,― Trade Statistics‖
[Chart 1-8 Changes in Export Value by Region (after the
economic peak)]
Early recovery in China
supported exports.
Source: BOJ, ―Tankan Short-term Economic Survey of
Enterprises in Japan‖4
[Chart 1-9 Changes in Exchange Rates Assumed by Exporting
Companies]
Source: Ministry of Finance, ―Trade Statistics‖
[Chart 1-7 Changes in Export Destination Regions'
Shares in Value of Japanese Exports]
Shares of China and other Asian countries as the
destinations of Japanese exports are growing.
Weak yen
Strong yen
54.2%
18.9%
16.1%
12.5%
0
20
40
60
80
100
120
140
160
0
2
4
6
8
10
12
ⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣ
00 01 02 03 04 05 06 07 08 09
Operating cash flow (left axis)
Capital investment （left axis)
Cash flow (left axis)
Interest-bearing debts (right axis)
(¥trillion) (¥trillion)
(Quarter)
(Year)
Increase
7.2%
Increase
for some
items and
decrease for others
43.5%
Decrease
49.3%
15.6
29.4
19.2
4.6
26.0
5.1
46.5
25.6
9.6
1.3
14.6
2.3
0
10
20
30
40
50
Cap
acit
y e
xpan
sio
n
New
pro
du
ct/p
roduct
sop
his
ticati
on
Rati
on
ali
zati
on
/lab
or
sav
ing
R&
D
Main
ten
an
ce/r
epai
rs
Oth
ers
Domestic production bases (n=1,363)
Overseas production bases (n=301)
(%)
▲ 40
▲ 30
▲ 20
▲ 10
0
10
20
30
60
70
80
90
100
110
120
ⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣ
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Capital investment (year-on-year growth; right axis)
Capacity utilization index (left axis)
(Quarter)
(Year)
(%)
▲ 30
▲ 20
▲ 10
0
10
20
30
ⅠⅣⅢⅡⅠⅣⅢⅡⅠⅣⅢⅡⅠⅣⅢⅡⅠⅣⅢⅡⅠⅣⅢⅡⅠⅣⅢ
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 0910
Large manufacturers
Small and medium-size manufacturers
(Quarter)
(Year)
(%)
5
(Status of corporate earnings and financing)
Corporate earnings declined significantly due to a drop in sales caused by the global recession. Although
manufacturing companies quickly dealt with the recession by reducing costs and curbing investments, interest-
bearing debts increased as such efforts failed to fully cover the sales drop. The financing condition remains
difficult, mainly for SMEs, although some improvement is seen.
Demand for durable goods such as automobiles and home electric appliances is recovering, supported by the
effects of economic measures, while demand for materials is picking up, led mainly by exports to Asia. However,
regarding the relationship between the capacity utilization ratio and capital investment, the state of excess
capacity is continuing, with the recovery of industrial machinery and other capital investment-related industries
lagging. Japanese manufacturing companies are investing for various purposes according to the degree of the
recovery of the markets: in Japan, they are investing in order to make existing products more sophisticated,
develop new products and to maintain and repair facilities, while abroad, their investments are aimed at capacity
expansion.
(Challenge to Overcome before Achieving Self-Sustaining Recovery: Capital investment)
[Chart 1-10 Changes in Cash Flow and Interest-
Bearing Debts]
Cash flow is declining.
Interest-bearing debts started to grow.
Source: BOJ, ―Tankan Short-term Economic Survey of
Enterprises in Japan‖
[Chart 1-11 Changes in Financial Position DI]
The financing
position remains
severe despite
some improvement.
Favorable financing
position
Unfavorable financing
positionOperating cash flow
Capital investment
Remarks: The above figures represent four-quarter backward moving
averages.
Source: Ministry of Finance, ―Financial Statements Statistics
of Corporations by Industry‖
Remarks: The capacity utilization index is calculated with the figure
for 2005 as 100 (seasonally-adjusted). The capital investment
amounts are raw figures.
Source: Ministry of Finance, ―Financial Statements Statistics of
Corporations by Industry‖; METI, ―Indices of Industrial Production‖
[Chart 1-12 Changes in Capacity Utilization Index and
Growth in Capital Investment for Manufacturing
Industries]
[Chart 1-13 Projections for capital investment in Fiscal
2010 and Items for Focused Investments (compared
with fiscal 2009)]
As the capacity utilization ratio
remains low, the state of
excess capacity is continuing.
Remarks: The figures in the lower chart are those based on replies
given by firms that said they would increase investment for some
items and decrease it for others in the above chart.
Source: Survey by METI (February 2010)
82.6
(n=2,928)
34.6
38.0
59.5
49.4
35.5
37.8
46.2
36.9
19.2
0.9
24.8
30.2
50.4
31.9
41.8
44.1
40.1
31.8
21.9
2.2
0 10 20 30 40 50 60
Review of business bases
Review of organizational structure of business bases
Review of personnel structure
Review of staffing composition
Review of training method and programs
Review of product lineup
Review of status of outsourcing/entrustment
/procurement
Review of status of capital investment
Review of status of R&D
OthersItems reviewed during the past five years (n=2,071)Items currently under review (n=2,215)
(%)
44.7
37.4
37.5
68.2
36.8
13.1
0.9
31.1
45.2
33.9
67.8
46.6
13.2
1.7
0 10 20 30 40 50 60 70
Review of business
divisions
Review of product
development operations
Review of procurement
operations
Review of production
operations
Review of sales
operations
Review of after-sale
service operations
Others
Operations reviewed during the past five years
(n=2,047)
Operations currently under review (n=2,208)
(%)
32.9
30.5
24.6
24.3
22.6
17.4
13.2
12.2
12.2
10.4
10.2
5.4
3.0
0.7
0 10 20 30 40
Selection of and focus on areas of product development
Development of more environment-friendly products
Codevelopment/partnership with purchasers
Shortening product development period/cycle
Skills improvement for existing researchers and engineers
Codevelopment/partnership with manufacturers in other sectors
Codevelopment/partnership with companies in the same sector
Codevelopment/partnership with internal marketing division
Codevelopment/partnership with universities/research institutions
Acquisition/retention of superior external researchers/engineers
Development of products with long life cycle
Establishing overseas R&D centers
Codevelopment/partnership with companies outside the manufacturing sector
Others
(%)
38.8
24.0
69.3
21.9
6.5
3.7
18.2
3.4
55.3
29.4
56.7
47.8
33.0
13.3
17.0
2.2
0 10 20 30 40 50 60 70
Product development
Parts/materials procurement
Production technology
Sales
Marketing
Advertising
After-sale service
Others
Current area of strength and competitiveness
(n=2,675)Would-be area of strength (n=2,871)
(%)
Adopted
significantl
y altered
strategy7.3%
Adopted
partially
altered
strategy51.9%
Adopted
slightly
altered
strategy
21.1％
Not
reviewing
strategy
19.7％
6
(Direction of business restructuring in Japanese manufacturing industries and future approaches)
Amid the ongoing significant changes in the business environment, such as increased resource and
environmental constraints and changes in global market shares, Japanese manufacturing industries have started
to restructure business strategies ahead of full-fledged recovery of the domestic and overseas economies. They
are reviewing mainly their product development and sales operations, and in order to adapt to changes, they are
making increased efforts to revise the way to foster personnel and review product line-ups.
In order to better adapt to the surrounding environment and respond to the diversifying needs of the global
market by taking advantage of Japan‘s superiority in technological capability, Japanese manufacturing companies
will need to strengthen their product development and sales/marketing powers.
[Chart 1-14 Status of Review of Business Strategies
and Relationship with Past Strategies][Chart 1-16 Specifics of Review of Business Strategies]
Source: Survey by METI (February 2010)
Source: Survey by METI (February 2010)
Source: Survey by METI (February 2010)
[Chart 1-15 Status of Review of Operations]
(n=2,949)
[Chart 1-17 Japanese Manufacturing Industries‘
Current Areas of Strength and Would-Be Areas of
Strength for Future Business Expansion]
[Chart 1-18 Activities Necessary for Future Product
Development]
Source: Survey by METI (February 2010)Source: Survey by METI (February 2010)
(n=2,939)
3.5
4.0
4.5
5.0
5.5
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
00 01 02 03 04 05 06 07 08 09 10
Active job opening to applicant ratio (left axis)
Unemployment rate (right axis)
(Year)
(Ratio) (%)
7
The number of people employed in manufacturing industries has been on a long-term
downtrend, and although the number began to recover in the first half of 2005, it has been
declining again since the second half of 2007.
The unemployment rate reached a record high of 5.6% in July 2009 and then gradually
declined to stand at 5.0% in March 2010. The active job opening to applicant ratio dropped to
a record low of 0.42 in August 2009 and then rose to 0.49 in March 2010. Despite these signs
of recovery, the condition of the job market remains severe.
The number of new job offers and the active job opening to applicant ratio in the areas of
production processes and labor services has recently been growing moderately.
Remarks: The above figures represent offers for permanent
jobs excluding offers for new graduates but including those
for part-time jobs. Not seasonally adjusted.
Source: MHLW ―Statistics on Job Security‖
(State of the employment/labor market (1))
Remarks: The above ratios represent the figures concerning
permanent jobs excluding those concerning new
graduates but including those concerning part-time
jobs. Not seasonally adjusted.
Source: MHLW ―Statistics on Job Security‖
Section 2 Current state of employment/labor of manufacturing workers
Remarks: The above figures are seasonally adjusted.
Source: MIC "Labour Force Survey," MHLW ―Report
on Employment Service"
Remarks: I to IV represent the 1st quarter to the 4th
quarter. The above figures are raw numbers.
Source: MIC "Labour Force Survey"
[Chart 1-21 Changes in the Number of Job Offers in
Manufacturing Industries (October 2007=100)]
[Chart 1-22 Change in the Active Job Opening to
Applicant Ratios in Production Process and Labor
Services]
0
10
20
30
40
50
60
70
80
90
100
07.10 08.1 08.4 08.7 08.10 09.1 09.4 09.7 09.10 10.1
All industries
Manufacturing industries
Electronic
parts/devices/circuits
manufacturing industry
Metal product
manufacturing industry
Electric machinery
manufacturing industry
Transportation
machinery
manufacturing industry
(Year/month)
[Chart 1-20 Changes in the Unemployment Rate and
Active Job Opening to Applicant Ratio ]
[Chart 1-19 Changes in the Number of Workers
Employed, etc. in Manufacturing Industries]
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
08.9 08.12 09.3 09.6 09.9 09.12 10.3
Total
Production processes/labor
services
Metal processing
Transport machinery
assembly/repair
Metal welding/cutting
Electric machinery
assembly/repair
General machinery
assembly/repair
（Times）
(Year/month）
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
ⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠ
00 01 02 03 04 05 06 07 08 09 10
People engaging in jobs
Employed people
(Million people)
(Year)
(Quarter)
0
10
20
30
40
50
60
70
80
00 01 02 03 04 05 06 07 08 09
(%)
(Year)
All industries surveyed
Manufacturing industries
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
FY07 08.6 08.9 08.12 09.3 09.6 09.9 09.12 10.3
Number of employees (left axis) Number of companies (right axis) (Year/moth)
Remarks: The figures for December 2008 and thereafter
include the number of accepted business closure plans
related to the emergency employment stabilization
subsidy for SMEs (established December 1, 2008). The
conditions have been eased since December 2009.
Source: Survey by MHLW
8
The sense of excess employment at companies that grew rapidly in the first half of 2009,
particularly in the manufacturing industry, has gradually receded since then.
Overtime hours worked in manufacturing industries increased after continuing to decline
until March 2009, and, in January 2010, recovered to almost the same level as in October
2008.
The proportion of companies which implemented some form of employment adjustment
was nearly 50% in the second quarter of 2009. In particular, the proportion of such
companies reached 70% in manufacturing industries. However, it has been on the decrease
since then.
The number of people covered by the employment adjustment subsidy program started to
increase rapidly around the end of 2008 and still remains at a high level despite the
downtrend seen since the second half of 2009.
Source: Bank of Japan ―Tankan Short-term Economic
Survey of Enterprises in Japan‖
[Chart 1-23 Changes in the D.I. of Employment
Conditions]
[Chart 1-25 Changes in the proportion of enterprises
that implemented employment adjustment]
Source: MHLW ―Survey on Labour Economy Trends‖
(State of the employment/labor market(2))
[Chart 1-26 Receipts of Business Closure Plans
related to Employment Adjustment Subsidy
(provisional)]
Remarks: Companies covered by the survey are those which
employ five or more workers; The average for
2005=100; The above figures are seasonally adjusted;
The figure for March 2010 is preliminary.
Source: MHLW ―Monthly Labour Survey
[Chart 1-24 Changes in Overtime hours worked]
-40
-20
0
20
ⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠⅡⅢⅣⅠ
00 01 02 03 04 05 06 07 08 09 10
All industries surveyed
Manufacturing industries
(Percentage point (deficient value minus excessive value)
(Year)
←E
xcess
ive D
efi
cie
nt→
(Quarter)
Employment
adjustments
(implemented
or planned)
Restrictions
on overtime
work
Increase in
holidays
Reduction/
suspension
of midcareer
employment
Reallocation
of workers
Temporary
closure
(temporary
layoff
Loan of
workers to
other
companies
Suspension/
cancellation
contract
renewal for
temporary,
seasonal, or
part-time
workers
Invitation
for early
retirement/
dismissal
100 55 37 11 15 16 20 8 4 3
Total
Methods of employment adjustments
(Methods of employment adjustments implemented in the manufacturing industry in the October-December quarter of
2009 [multiple replies allowed; Unit: %])
50
60
70
80
90
100
110
07 08 09 10
Overtime hours worked for all
industries surveyed
Overtime hours worked for the
manufacturing industry
(Year)
In order to improve the employment situation, which remains severe, the governmentformulated the ―Emergency Package of Employment Measures‖ in October 2009 and the―Emergency Economic Countermeasures for Future Growth and Security‖ in December of thesame year.
(1) Measures to maintain and create employmenta) Easing the conditions for the subsidies for employment adjustment and for small and
medium-sized enterprises for emergency employment stabilizationb) Providing free vocational training for those who are not eligible to receive
unemployment benefits, and providing training and livelihood support benefits duringthe training period
c) Expanding emergency job creation programs(2) Strengthening support for the poor and needy
a) Implementing the One-Stop Service Day on a trial basisb) Deploying housing and life support advisorsc) Expanding housing support measures
(3) Strengthening support for new graduatesa) Doubling the number of career counselors for senior high school and college graduates.b) Establishing a program that provides new graduates with an opportunity for workplace
experiencec) Providing vocational training to unemployed graduates and increasing training and
livelihood support benefits
9
(Measures to deal with current employment conditions)
[Table 1-27 Economic and Employment Measures
(key points of measures related to employment support)]
Notes: The mark “◎” represents a new measure and the mark “○” represents a measure which was enhanced or regarding which the conditions were eased.
※ The budget figures in the above table are those indicated in the draft second supplementary budget for fiscal 2009.
◎Implementation of the “One-Stop Service Day” on a trial basis
*1st One-Stop Service Day: Held on November 30 (organized by 77 Hello Work facilities in cooperation with 215 municipalities; 2,404 people applied for the service)
*2nd One-Stop Service Day: Held on December 21 (organized by 204 Hello Work facilities in cooperation with 400 municipalities; 3 ,926 people applied for the service)
◎Deployment of 263 housing and life support advisors to major Hello Work facilities across Japan for the provision of the one-stop service (approx. 270 million yen)
○Expansion of housing support measures (approx. 70 billion yen)
・The enhancement of the housing benefit scheme. (Starting in April 2010, the period of the benefit provision was extended for three months beyond the previous maximum length of six
months and the income criteria were eased in order to increase users of the scheme.)
(As of the end of February 2010. 15,530 cases were approved for the benefits scheme.)
・Continued provision of such support measures as the installation of temporary lodging facilities
(As of the end of January 2010, applications were invited for consultations about government subsidy for temporary lodging fa cilities with total capacity for 568 people; a total of
1,250 rooms were provided for temporary lodging in fiscal 2009 and 2010)
・An Increase of approx. 2,500 people (from 550 to 3,050) in the number of employment supporters for the recipients of public welfare service (efforts by local governments are under
way following the enactment of the second supplementary budget for fiscal 2009)
・An increase of approx. 1,250 people (from 1,250 to 2,500) in the number of housing and employment supporters (efforts by local governments are under way following the enactment
of the second supplementary budget for fiscal 2009)
○An emergency increase of 310 people (from 618 to 928) in the number of career counselors for senior high school and college graduates (250 million yen)
○Active holding of job interview fairs
◎Establishment of a program that provides new graduates with an opportunity for workplace experience (budget request made for the establishment of this program; 5,100
people are expected to be covered by the end of fiscal 2010)
・Provision of 80,000 yen per person to companies that accept people as employees under this program
○Provision of vocational training to unemployed graduates and increasing training and livelihood support benefits to such graduates (included in the emergency human resource
development program)
◎Program to create jobs in priority business sectors (150 billion yen)
・Creating employment opportunities and promoting human resource development in promising growth sectors, such as nursing care, medical care, agriculture/forestry and
environment (by the end of fiscal 2010, approx. 60,000 people are expected to be covered)
Emergency Employment Measures (October 23, 2009)
○Easing the conditions for the subsidies for employment adjustment, etc.
・Expanding the coverage to include people who are loaned out again less than six months after returning to the original compan ies from other companies.
・Taking other measures, including speeding up the provision of the subsidy and revising the application form.
○Easing the conditions for the subsidies for employment adjustment (7.8 billion yen)
*As a result of the easing of the conditions, an average of 800,000 people per month are expected to be covered in fiscal 2010.
・Regarding “the condition concerning the production amount,” a loss-making company will be eligible to receive the subsidy regardless of the company size if the volume was down by
10% or more compared with two years before.
◎Implementation of the “One-Stop Service Day” on a trial basis
○Providing information on public rental housing via Hello Work facilities
(Acceptance of residence into 3,209 houses was decided by January 8, 2010) (5,722 houses were available as of December 14, 20 09)
○Developing new training programs and securing new training providers in the emergency human resource development project (Prescribed maximum number of trainees:
122,058 people in fiscal 2009 (the goal for trainer acceptance in fiscal 2009: 100,000 people); the number of training applic ants: 120,890 people (the goal for application in fiscal
2009: 80,000 people)
○Emergency allocation of an additional 88 career counselors for senior high school and college graduates (an increase from 530 to 618)
◎Establishing a nursing care worker employment program that enables the acquisition of the qualification while working
○Requesting front-loaded implementation of the Emergency Job Creation Program, easing of the conditions concerning the Emergency Job Creation Program and the
hometown employment revival special fund project
*Holding a “nursing care employment day”: Held in the week that started on December 14 (organized by 422 Hello Work facilities; 9,999 people applied for jobs)
Support for
maintenance of
jobs
Support for the
poor and needy
Support for new
graduates
Job creation
◎Establishment of employment and life security systems
・Establishing a “trampoline-type,” second safety net (in fiscal 2011)
・Strengthening the functions of the employment insurance system (350 billion yen)
Expanding the scope of eligible people (approx. 2.55 million people are expected to be newly covered in fiscal 2010)
Returning the ratio of the national government burden to the original ratio (in fiscal 2011)
Others
Support for
maintenance of
jobs
Support for the
poor and needy
Support for
new graduates
Job creation
Emergency Economic Countermeasures for Future Growth and Security (adopted upon a cabinet decision on December 8, 2009)
[Column: Initiatives to Discover SMEs Eager about Employment and to Resolve Mismatch between Needs of Job Seekers and Employers]
Although there are signs of an economic recovery amid the uncertainty over the global economy, the employment situation in Japan remains severe. Recognizing this situation as an opportunity to secure human resources, some small and medium-size enterprises (SMEs) are eager to employ workers in order to enhance their competitiveness.
METI, together with the Ministry of Agriculture, Forestry and Fisheries, the Ministry of Health, Labour and Welfare and various relevant organizations, selected 1,417 companies that are eager to employ workers and devote efforts to human resource development, and it published ―1,400 Job-Creating Companies‖ in February 2009. This was distributed to schools, Hello Work facilities and job cafes across Japan and made available on METI‘s website. As a result of a follow-up survey concerning ―1,400 Job-Creating Companies‖ that was conducted to grasp the employment status after the publication of the book, it has been found that 637 companies, mainly SMEs, hired about 7,000 people (of which 2,000 people were mid-career workers), and that many companies are planning to hire new employees.
Moreover, METI compiled a new list of ―job-creating companies‖ in order to support the job search activity of new graduates, who are expected to continue facing a severe job market condition, in accordance with the Emergency Economic Countermeasures for Future Growth and Security, which was drawn up in December 2009. In January 2010, METI launched a website intended to demonstrate the attractive features of 1,443 job-creating companies so as to help to resolve the mismatch between the needs of job seekers and employing companies.
METI also organizes bus tours to non-metropolitan regions to provide job seekers andstudents from across the country with an opportunity to discover the attraction of industrieswhere there is such a mismatch, including monodzukuri, agriculture and nursing care sectors,as a way to promote employment. The bus tours, which include one- to five-day courses, offervarious programs, enabling participants to see the workplace first-hand and talk with topmanagers, for example. In some cases, tour participants were employed by the companiesthey visited, indicating that the tours provide a meeting place for job seekers and companieseager to employ workers.
Website: http://www.meti.go.jp/policy/mono_info_service/mono/sokeizai/kigyogaiyosyu.html
[Chart: ―Job-Creating Companies‖ (published in January 2010) and the Results of a Follow-Up Survey
concerning ―1,400 Job-Creating Companies‖ (published in February 2009)]
Source: Website for ―Job-Creating Companies‖ and related
fliers
[Job-Creating Companies (published in January 2010)]
[Employment Status at the 1,400 Job-Creating Companies
(published in February 2009) (by business sector)]
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
全体
ものづくり
サービス
農業・その他
2,813
1,324 1,279210
1,747
1,362297
88
1,927
574
1,267
86
478
152310
16
その他
中途者
高卒
大卒
（人）
Others
Mid-career job
seekers
Senior high
school
graduates
University
graduates
Over
all
Monodzu
kuri
Ser
vic
es
Agri
cult
ure
, et
c.
Source: ―1,400 Job-Creating Companies‖ (2009)
A follow-up survey report (n=802 companies)
(persons)
10
0
5
10
15
20
25
30
35
40
45
50
55
90 92 94 96 98 00 02 04 06 08
Australia
Germany
Japan
South
Korea
U.K.
U.S.
(%)
(Year)
0
1
2
3
4
5
6
7
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
(1990 = 1)
Japanese
exports
(Year)
U.S. exports
German exports
South Korean
Exports
Global exports
0
10
20
30
40
50
60
70
80 （％）（％）
A look at the situation of the global market shows that markets in developed nations have matured, while
emerging countries have increased their share of the global GDP as a result of population growth and rising
income. Emerging countries have also increased their presence as both production bases and markets.
Section 1 Japanese manufacturing industries face structural changes in the global economy
In the wake of the Lehman shock, changes in the business environment for the Japanese manufacturing
industries have become evident. For example, while markets in developed nations have matured, those in
emerging countries have grown. In addition, manufacturing operations in Asia have expanded and the region‘s
industrial infrastructures have become more advanced. Moreover, changes in market needs in response to
increased resource and environmental constraints have become evident. In light of these global structural
changes, the Japanese manufacturing industries will need to restructure their business strategies to create added
value.
Chapter 2: Challenges and Prospects Facing Japan’s Monodzukuri Industries
Japan‘s dependency on exports is not high compared with other major nations. The margin of the increase in
Japanese exports has been similar to the margin of the growth of the economies of developed nations, which means
that Japan has not fully taken advantage of business opportunities in growth markets around the world.
11
Remarks: On a US$ basis. Major Asian nations/regions excluding China refer to ASEAN, India, South Korea and Taiwan.
Source: IMF, ―World Economic Outlook Database, April 2010‖
[Chart 2-1 Changes in Nominal GDP Share of World‘s Major Regions]
2000 2008 2015 (forecast)
Developing
countries
Emerging
countries
28％
38%
46%
EU
United
States
JapanChina
Other regions
Major Asian nations,
excluding ChinaRussia
Brazil
[Chart 2-2 International Comparison of Export
Dependency]
Source: Statistics compiled by OECD
Among major countries, Japan has the
second lowest export dependency
[Chart 2-3 Growth of Asian Emerging Countries and
Increase in Value of Exports by Major Countries]
Source: IMF, ‖World Economic Outlook‖
Japanese exports have not fully benefited from an
expansion of Asian emerging markets.
11
Combined GDP of China,
NIEs and ASEAN
Combined GDP of U.S.
and EU
17.4%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
90 95 00 05 08
Other non-OECD
countries
Other Asian
countries
China
Other OECD
countries
Japan
EU
U.S.
(Year)
(1,000 barrels/day)
0
200
400
600
800
1,000
1,200
02 08
Other non-OECD
countries
Other Asian
countries
China
Other OECD
countries
Japan
EU
U.S.
(Year)
(1 million metric ton)
0
5
10
15
20
25
30
35
40
909192939495969798990001020304050607
U.S.
Asia (9 countries)
China/Hong KongEU
Japan
(Year)
(%)
While global consumption of energy and resources is expanding as a result of the economic growth of emerging
countries, a variety of resources are unevenly distributed around the world, a fact that has increased resource and
environmental constraints. The increase in such constraints and the aging of society changes market needs.
The Japanese manufacturing industries will need to restructure business strategies in order to create added
value in the global market in light of these changes in the business environment.
In China and other Asian countries, production is increasing as they have adapted to the combination of various
production technologies. With regard to intermediate goods, for which Japan is said to be maintaining a strong
competitive edge, South Korea and China have gradually been raising their competitiveness, and their industrial
infrastructures are becoming more advanced due to progress in the international division of labor. In the future,
the Japanese manufacturing industries may be exposed to relentless cost competition with Asian countries.
[Chart 2-4 Changes in the Competitiveness of
Manufacturing Industries of Countries and Regions
(changes in the share of total value added by
manufacturing industries of countries and regions)]
[Chart 2-5 Changes in the Export Specialization Index of
Intermediate Goods]
Remarks: Export specialization index＝（Exports of intermediate goods − imports／（exports of intermediate
goods ＋ imports)
Source: Research Institute of Economy, Trade and
Industry, ―RIETI-TID 2009‖Source: US National Science Foundation Statistics
While the shares of Japan and the
United States declined, those of Asian
emerging countries grew.
-0.25
-0.2
-0.15
-0.1
-0.05
0
0.05
0.1
0.15
0.2
0.25
0.3
U.S. EU Japan South Korea
China ASEAN
1990
2000
2008
Source: BP, ―BP Statistical Review of World Energy June 2009‖
[Changes in Oil Consumption Volume]
[Chart 2-6 Increase in Environmental Constraints]
[Changes in Steel Consumption Volume]
Source: Statistics by World Steel Association
12
04
08
04
08
04
08
04
08
04
08
0408
0%
10%
20%
30%
40%
50%
60%
70%
0% 10% 20% 30% 40% 50%
North America
Europe
Whole Asia
China
ASEAN10
South Korea/Taiwan
(Shares of countries/regions in sales of local subsidiaries)
(Sh
are
s o
f co
un
trie
s/re
gio
ns
in r
ecu
rrin
g p
ofi
t o
f lo
ca
l su
bsi
dia
ries)
Shares in recurring profit
＞Shares in sales
Shares in sales
＞Shares in recurring profit
1,113
788
4,016
5,865
2,917
1,900 2,212
585
406 3810
1,000
2,000
3,000
4,000
5,000
6,000
01 02 03 04 05 06 07 08
North America Europe
Whole Asia China
ASEAN10 South Korea/Taiwan
Others
(Number of companies)
(FY)
China: 1,393North Amrica: 1,276Europe: 824
South Korea/Taiwan: 612
▲25.3%
▲25.9%
▲9.3%
▲2.3%
▲11.9%
▲20.9%
▲19.5%
0
5
10
15
20
25
30
35
40
45
50
01 02 03 04 05 06 07 08North America EuropeWhole Asia ChinaASEAN10 South Korea/TaiwanOthers
(¥trillion)
(FY)
(year-on-year)
Total: ▲17.9%
421646
930
669
1,660
544
121
309264
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
01 02 03 04 05 06 07 08
North America Europe
Whole Asia China
ASEAN10 South Korea/Taiwan
Others
(Number of companies)
(FY)
ASEAN10: 309China: 234Others: 198
North
America: 779
China: 777
Section 2 Restructuring of the monodzukuri structure in Japan in response to changes in global markets
In order to create added value in the global market, the Japanese manufacturing industries will have to
appropriately allocate business resources and make effective use of them. It is important to maintain and
strengthen Japan‘s competitiveness as a supply base of sophisticated parts and products and make efforts to
create added value based on technology, such as by diversifying the profit source of monodzukuri, while capturing
demand in new growth markets.
(Progress in the division of labor in the Japanese manufacturing industries)
The number of local subsidiaries of Japanese companies (in the manufacturing sector) is declining in the United
States and Europe, whereas the number of such local subsidiaries is continuing to increase in emerging countries
in Asia and other regions. The number of sales bases is also increasing in emerging countries in Asia and other
regions, indicating the growing importance of those regions as markets.
Although region-by-region sales of Japanese companies‘ local subsidiaries generally recorded declines in fiscal
2008, the margin of the sales decline for Asia was small, suggesting that emerging countries in Asia are replacing
the United States and Europe as the main driver of the earnings of the Japanese manufacturing industries.
[Chart 2-7 Changes in Number of Japanese Companies‘
Local Subsidiaries (manufacturing sector)]
[Chart 2-8 Changes in Number of Japanese
Manufacturing Industries‘ Sales and Service Bases]
Source: METI, ―Basic Survey of Overseas
Business Activities‖
Remarks: The above figures represent the numbers of
companies whose Japanese headquarters are
manufacturers and overseas business bases are retailers,
wholesalers or service providers.
13
[Chart 2-9 Sales of local subsidiaries (manufacturing
sector) by Region][Chart 2-10 Shares of Local Subsidiaries (manufacturing
sector) in business results] (from 2004 to 2008)
Source: METI, ―Basic Survey of Overseas Business Activities‖
Source: METI, ―Basic Survey of Overseas Business Activities‖
Product level
Key consumer segment
High-end
(High
performance/quality )Medium-range
Low-end
(Low
performance/quality )
Wealthy class 8% 5% 0%
Middle class 22% 32% 0%
Low-income class 0% 0% 0%
None 17% 14% 2%
Product level
Key consumer segment
High-end
(High
performance/quality )Medium-range
Low-end
(Low
performance/quality )
Wealthy class 14% 9% 0%
Middle class 21% 34% 0%
Low-income class 0% 0% 0%
None 8% 13% 0%
26%
16%
22%
32%
25%
23%
29%
22%
13%
33%
18%
23%
16%
21%
15%
16%
11%
14%
21%
40%
6%
10%
13%
6%
8%
4%
10%
2%
4%
6%
10%
9%
1%
9%
3%
5%
8%
8%
3%
15%
3%
9%
13%
14%
23%
14%
22%
19%
29%
39%
31%
26%
29%
29%
31%
34%
34%
23%
0% 20% 40% 60% 80% 100%
Total (n=896)
Foods (n=31)
Plastic products (n=32)
Metal products (n=77)
Electric machinery (n=91)
General machinery (n=146)
Chemical products (n=83)
Transport machinery (n=65)
Precision machinery (n=90)
Electronic components/devices
(n=30)
Chinese companies South Korean/Taiwanese companiesCompanies from other emerging countries U.S. companiesEU companies Japanese companies
21%
39%
16%
32%
31%
31%
13%
9%
4%
8%
3%
17%
49%
19%
33%
26%
22%
9%
12%
9%
12%
5%
20%
42%
29%
35%
16%
16%
15%
18%
11%
5%
13%
25%
45%
25%
27%
17%
20%
12%
18%
6%
18%
6%
Appropriate targeting of customer market segments
Development of products meeting local market needs
Broad product lineup
Introduction of products priced according to local purchasing power
Low-cost production due to increased local procurement
Cost reduction due to increased local production
Broad sales network
Superior sales channel management
Active advertising
Broad, high-quality service network
Forward-looking investment led by the headquarters
China (n=229)
South Korea/Taiwan (n=161)
U.S. (n=55)
EU(n=134)
Pro
du
ct
strateg
y
Pro
du
ction
strateg
yS
ales
strateg
y
(Strategy for introducing new products in emerging markets)
In emerging markets, companies with poor business performance tend to introduce high-end products without
identifying the key customer segment. In order to gain market share, it is necessary to clarify which class of
customers to target. Concerning other points, there is not any significant difference between companies with poor
performance and those with good performance. In short, the important thing to do is to provide value and
functions suited to the needs of the local market with regard to each product.
Many competitors in emerging markets are Chinese, South Korean or Taiwanese companies. They are superior
in product pricing according to the functions and specifications of the product as well as the local needs and in
reducing costs. The Japanese manufacturing industries will need to act nimbly in the development of products
while taking account of the strategies of competitors. Meanwhile, Japanese companies continue to compete with
U.S. and European companies to a certain extent, and competition is still ongoing between Japanese companies,
too.
[Table 2-11 Key Customer Bases in Emerging
Countries and Level of Introduced Products]
Remarks: ―Companies with good (poor) business
performance‖: Companies whose sales share or operating
profit amount, or both, increased (decreased) at an annual
rate of more than 5% over the past three years.
Source: Survey by METI (January 2010)
[Column: Cases of obtaining shares in emerging markets]1. Daihatsu Motor Co., Ltd.(Automobiles; The second highest share in the Indonesian market (15%) in FY2009)The company developed "Xenia" by reviewing the design to meet the needs and budgets of the consumers who purchase their own car for the first time, in response to the growing demand from such consumers.
Photo: Xenia
<Companies with good business performance (n=97)>
<Companies with poor business performance (n=63)>
2. Unicharm Corporation(Disposable diapers; The top share in the Thai market (nearly 70%) and in the Indonesian market (over 40%) as of FY2009)The company succeeded in establishing its brand image as high-quality goods for the rich by way of active operating activities with distributors. Then, the company further developed and introduced new products for middle-class consumers.
3. Hitachi Appliances, Inc.(Household air conditioners; Nearly a 60% share in the Indian air conditioner market for the rich (company estimation))The company hired local engineers to develop air conditioners that meet special local needs (such as that Indian people prefer products that blow cool air directly on users). By also providing careful guidance to local dealers, the company has successfully won rich customers.
Photo: Air conditioner
―ACE Follow me‖
[Chart 2-12 Greatest Competitors in Emerging Countries] [Chart 2-13 Competitors‘ strengths in emerging countries]
14Source: Survey by METI (January 2010)
(Competitors in emerging markets and their strengths)
Ran
k
Company (Country)Sales
（$ billion） Ran
k
Company (Country)Sales
（$ billion） Ran
k
Company (Country)Sales
（$ billion）
1 BASF (Germany) 31.3 1 Dow Chemical (US) 40.2 1 BASF (Germany) 70.5
2 Du Pont (US) 27.7 2 BASF (Germany) 38.2 2 Dow Chemical (US) 57.5
3 Bayer (Germany) 20.2 3 Du Pont (US) 30.1 3 Ineos Group (UK) (1) 47.0
4 Dow Chemical (US) 18.6 4 RoyalDutchShell (UK/Netherlands) 29.5 4 Lyondell Basell (Netherlands) (2) 38.4
5 ExxonMobil (US) 13.8 5 ExxonMobil (US) 27.8 5 ExxonMobil (US) 38.4
6 ICI (UK) 13.7 6 Total (France) 24.9 6 SABIC (Saudi Arabia) (3) 34.4
7 Shell (UK/Netherlands) 12.9 7 BP (UK) 21.2 7 Sinopec (China) 33.8
8 AkzoNobel (Netherlands) 12.3 8 Bayer (Germany) 18.1 8 Du Pont (US) 30.4
9 Degussa (Germany) 10.1 9 Sinopec (China) 16.7 9 Total (France) 29.7
10 BP (UK) 9.4 10 Mitsubishi Chemical (Japan) 16.3 10 Formosa (Taiwan) 27.5
11 Total (France) 9.3 11 SABIC (Saudi Arabia) 15.9 11 RoyalDutchShell (UK/Netherlands) 26.3
12 Elf Aquitaine (France) 9.3 12 Degussa (Germany) 14.0 12 Bayer (Germany) 23.7
13 Sumitomo Chemical (Japan) 8.1 13 Formosa (Taiwan) 12.6 13 Akzo Nobel (Netherlands) 22.7
14 Huntsman (US) 8.0 14 Akzo Nobel (Netherlands) 11.8 14 Mitsubishi Chemical (Japan) 18.6
15 Mitsui Chemical (Japan) 7.8 15 Huntsman (US) 11.4 15 Air Liquide (France) 17.7
16 Henkel (Germany) 7.3 16 Mitsui Chemical (Japan) 11.4 16 Evonik (Germany) 17.1
17 Aventis (France) 7.1 17 Air Liquide (France) 10.7 17 Petro China (China) 16.0
18 GE (US) 6.9 18 ICI (UK) 10.3 18 Yara (Norway) 15.8
19 Solvay (Belgium) 6.8 19 Sumitomo Chemical (Japan) 9.9 19 Mitsui Chemical (Japan) 14.4
20 Dainippon Ink and Chemicals (Japan) 6.7 20 Toray (Japan) 9.9 20 Linde (Germany) 14.0
1999 2004 2008
Rank Company (Country)Productions
(million tons) Rank Company (Country)Productions
(million tons) Rank Company (Country)Productions
(million tons)
1 Nippon Steel (Japan) 26.8 1 Mittal Steel (Netherlands) 63.0 1 Arcelor Mittal (Luxemburg) 73.2
2 POSCO (South Korea) 23.4 2 Arcelor (Luxemburg) 46.7 2 Hebei Iron and Steel (China) 40.2
3 British Steel (UK) 15.7 3 Nippon Steel (Japan) 32.0 3 Baosteel (China) 38.9
4 Usinor Sacilor (France) 15.5 4 POSCO (South Korea) 30.5 4 POSCO (South Korea) 31.1
5 Riva (Italy) 14.4 5 JFE Steel (Japan) 29.9 5 Wuhan Iron and Steel (China) 30.3
6 Arbed (Luxemburg) 12.1 6 Baosteel (China) 22.7 6 Ansteel (China) 29.3
7 USX （US) 12.0 7 US Steel (US) 19.3 7 Shasteel (China) 26.4
8 NKK (Japan) 11.5 8 Nucor (US) 18.4 8 Nippon Steel (Japan) 24.3
9 Kawasaki Steel (Japan) 11.1 9 Corus (UK) 18.2 9 JFE Steel (Japan) 23.5
10 Sumitomo Metals (Japan) 10.7 10 Riva (Italy) 17.5 10 Tata Steel (India) 21.9
1995 2005 2009
Merger
in 2002
Merger
in 2002
Merger in
2006
Merger
in 2007
Ran
k
Company (Country)Sales
($ billion) Ran
k
Company (Country)Sales
($ billion) Ran
k
Company (Country)Sales
($ billion)
1 General Electric (US) 100.5 1 General Electric (US) 152.9 1 General Electric (US) 183.2
2 Siemens (Germany) 66.0 2 Siemens (Germany) 91.5 2 Siemens (Germany) 123.6
3 Hitachi (Japan) 62.4 3 Hitachi (Japan) 84.0 3 Samsung Electronics (South Korea) 110.4
4 Matsushita Electric Industrial (Japan) 58.8 4 Matsushita Electric Industrial (Japan) 81.1 4 Hitachi (Japan) 99.5
5 Sony (Japan) 53.2 5 Samsung Electronics (South Korea) 71.6 5 LG Electronics (South Korea) 82.1
6 Toshiba (Japan) 41.5 6 Sony (Japan) 66.6 6 Panasonic (Japan) 77.3
7 Royal Philips Electronics (Netherlands) 38.5 7 Toshiba (Japan) 54.3 7 Sony (Japan) 76.9
8 NEC (Japan) 37.2 8 NEC (Japan) 45.2 8 Nokia (Finland) 74.2
9 ABB (Switzerland) 30.9 9 Tyco International (US) 41.0 9 Toshiba (Japan) 66.2
10 Lucent Technologies (US) 30.1 10 LG Electronics (South Korea) 37.8 10 Hon Hai Precision Industry (Taiwan) 61.9
11 Mitsubishi Electric (Japan) 29.7 11 Royal Philips Electronics (Netherlands) 37.7 11 NEC (Japan) 42.0
12 Motorola (US) 28.4 12 Nokia (Finland) 36.4 12 Royal Philips Electronics (Netherlands) 38.8
13 Intel (US) 26.3 13 Motorola (US) 35.3 13 Intel (US) 37.6
14 L.M.Ericsson (Sweden) 23.2 14 Intel (US) 34.2 14 Mitsubishi Electric (Japan) 36.5
15 Samsung Electronics (South Korea) 18.4 15 Mitsubishi Electric (Japan) 31.7 15 ABB (Switzerland) 34.9
16 Northern Telecom (Canada) 17.6 16 Sharp (Japan) 23.6 16 L.M.Ericsson (Sweden) 31.7
17 Electrolux (Sweden) 14.8 17 SANYO Electric (Japan) 23.1 17 Motorola (US) 30.1
18 SANYO Electric (Japan) 14.7 18 ABB (Switzerland) 21.9 18 Sharp (Japan) 28.3
19 Nokia (Finland) 14.5 19 L.M.Ericsson (Sweden) 18.0 19 Schneider Electric (France) 26.8
20 Sharp (Japan) 13.7 20 Electrolux (Sweden) 16.4 20 Emerson Electric (US) 25.3
1998 2005 2009
15
(Realignment of European companies to gain global market share and growth of emerging-country
companies)
Japanese companies have generally seen their presence decline amid the ongoing changes in the league table of
global market players due to the industry realignment led by European companies and the growth of emerging-
country companies.
Source: WSA
Remarks: (1) Acquired the petrochemical businesses of Germany‘s BASF and UK‘s BP in 2005
(2) Acquired Basell of the Netherlands (polyolefin joint venture of BASF and Shell) in 2007.
(3) Acquired the European commodity product business of Huntsman of U.S. in 2006 and the plastics business of GE of U.S. in 2007.
Source: Prepared by METI, based on Chemical & Engineering News and other materials.
○Steel (by crude steel production volume): While progress was being made in the realignment of European
companies, crude steel production by Chinese and Indian companies increased.
○Chemicals (by sales of the chemical division): While European companies realigned operations along the
lines of high-value-added and commodity product businesses, Saudi and Chinese companies increased sales,
mainly of commodity products.
Source: Prepared by METI, based on FORTUNE, ‖FORTUNE GLOBAL 500‖
○Electrical machinery (by sales): As South Korean and Taiwanese companies increased their presence
significantly, Japanese companies declined in the ranking list although many remained among the top 20.
34%
16%
8%
48%
55%
39%
8%
18%
28%
10%
11%
25%
0% 20% 40% 60% 80% 100%
5-10 years ago
Now
5 years later
No procurementProcurement of commodity partsProcurement of key partsProcurement of all parts
(n=499)
40%
24%
13%
28%
18%
21%
5%
35%
32%
16%
31%
23%
27%
6%
34%
43%
17%
32%
25%
34%
9%
Basic design
Applied design
Design of exterior parts
Evaluation of local parts/materials
Test/inspection
CAD/CAM graphics
Development of control software
5 years ago (n=174)
Now (n=206)
5years later (n=211)
81%
72%
69%
55%
47%
24%
21%
10%
Leading to cost reduction
Meeting in-house domestic quality standards
Ensuring stable supply
Thorough commitment to delivery schedule
Meeting in-house local market quality
standards
Putting in place countermeasures against
technology leak
Developing environment for performance
evaluation of procured parts
Having abundant information about local
companies
15%
5%
47%
5%
8%
35%
10%
11%
10%
55%
8%
10%
30%
10%
7%
18%
68%
10%
10%
26%
14%
0% 20% 40% 60% 80%
Basic research
Applied research
Product development
Software development
Process technology
Processing technology
Compatible technology
5 years ago (n=177)Now (n-213)
5 years later (n=213)
(Use of local resources to establish an optimal global production system)
In order to respond to the needs of emerging markets and to increase price competitiveness, some overseas
production bases are localizing such processes as product development and applied design (remodeling). In
addition, there are companies procuring parts and materials from local companies. Regarding the procurement
requirements, many companies said that the requirements include meeting in-house quality standards, in addition
to reducing costs and ensuring a stable supply. When companies start local production, it is important to properly
identify the quality standards that must be met, and maintain the right mix of such elements as prices,
functions/performance and reliability that are required by the local market.
(Development of human resources in overseas bases)
Companies with good business performance tend to make active efforts to retain local personnel. In order to enable
overseas business bases to exercise their performance to a maximum and achieve good business results, it is
important to increase the motivation of local personnel by introducing and raising awareness about the personnel
evaluation and promotion systems, appointing local personnel for top local management positions and other senior
posts, and delegating authority to local subsidiaries.
[Chart 2-15 Policy for Procurement from Local Companies]
[Chart 2-16 Requirements for Procurement from Local
Companies ]
[Chart 2-14 Local Development and Design Activities]
Source: Survey by METI (January 2010)
(n=629)
[Column: Kitanihon Seiki Co. — Efforts to keep local workers at
Chinese unit]
Kitanihon Seiki, one of the world‘s largest miniature-bearing
producers, has built a price-competitive production arrangement
to ensure that the products made by its Chinese subsidiary (with
some 600 employees) are of the same quality as those made in
Japan. Under the philosophy that ―employees must be led to stay
with their company for a long time if they are to make good,
cheap products,‖ Kitanihon Seiki has commissioned local people
to run all Chinese operations (the president and vice president
are Chinese) and has promoted the improvement of working
conditions to lead employees to stay with the company for a long
time.
Under the other philosophy that ―it is important for the company
to receive the local society‘s understanding to secure successful
operations in China,‖ the firm has implemented cultural projects
to preserve Chinese cultural assets and landscapes.
Kitanihon Seiki‘s domestic bases undertake not only the
production, research and development of products they receive
orders for, including advanced technologies, but also the training
of Chinese workers to support human resources development for
the Chinese unit.
16
[Chart 2-17 Activities to Retain Local Personnel]
Photo: Micro bearing
Source: Survey by METI (January 2010)
Photo: The building of the
Shanghai subsidiary
12%
25%
15%
2%
15%
9%
15%
16%
2%
22%
16%
4%
27%
47%
31%
4%
26%
18%
29%
30%
3%
40%
32%
8%
Introducing transparent personnel evaluation
system
Setting salaries in light of salary levels at
other companies in the same sector
Specifying promotion system at local
subsidiaries
Specifying career path for work at Japanese
HQs or appointment for senior management
post
Commending and rewarding well-performing
local personnel
Helping well-performing local personnel
study abroad /dispatch such personnel for
overseas training
Delegating authority to local subsidiaries
Actively appointing local personnel for
senior local posts
Actively appointing local personnel for posts
at Japanese HQs and senior management
posts
Enhancing OJT in routine work
Enhancing Off-JT such as in-house seminars
and external training
Collaboration with local industries and
educational institutions
Total(n=1,612)
Companies with good performance
(n=234)
Institu
tion
al
mea
sures
Perso
nn
el
ap
po
intm
en
t an
d
dele
ga
tion
of
au
tho
rity
Tra
inin
g
17
(Companies‘ ideas concerning domestic business bases amid global business expansion)
A survey on major companies concerning their recent business expansion abroad showed that they recognize
problems related to domestic business bases, including those related to the environment for establishing business
operations in Japan, while acknowledging the significance of business bases in Japan, where monodzukuri
infrastructures as represented by the pool of human resources and the accumulation of technologies, are well
developed.
[Reasons for relocating business operations out of Japan
Reasons for moving operations to foreign countries include (1) the presence of a market and easy access
to areas where there are consumers, (2) access to low-cost labor (3) the presence of well-developed
infrastructures, including electricity, sales and distribution networks.
Selling foreign-made general-use products from the perspective of economic feasibility (labor and
production costs) and proximity to the market.
[Policy for overseas business expansion]
Keeping in Japan the headquarters functions, research and development facilities, ―mother plants‖ (which
are ―high-value-added factories‖ in charge of making prototypes of new products and key components) and
not considering a plan to relocate these functions out of Japan.
Production bases should be kept in Japan in order to prevent technology leakage. A Japanese
company should move operations related to core technology out of Japan only if there is no risk of
technology leakage because the overseas business base that handles the technology is majority-owned by
the Japanese company or for other reasons.
Japanese companies recognize that because the United States and European countries are providing
subsidies and tax measures as national policies to attract R&D facilities and factories, and because
Asian emerging countries are also doing so to attract factories, it is becoming increasingly difficult
to keep production functions in Japan.
[Environment for establishing business bases in Japan]
It is important to ensure an equal footing in terms of competitive environment as represented by
environmental regulation, corporate tax, exchange rates and enforcement of the Anti-Monopoly Act.
If an equal footing is not provided, Japanese companies may have to move their business bases out of
Japan.
It is impossible to adopt a flexible employment system in Japan due to its high tax rate. The investment
environment is unfavorable in Japan compared with in other countries, and corporate earnings are also
being squeezed by exchange rate movements.
In order to keep production bases in Japan, it will be necessary to conduct consistent and strategic initiatives,
such as providing support for capital investment and R&D (subsidies, tax measures, etc.),
developing human resources, which are the wellspring of competitiveness, and improving the
education system.
[Significance of domestic business bases]
Planning to keep the headquarter, research, development, and mother plant functions in Japan for the
moment, since there is some demand as well as high-quality human resources and monodzukuri
infrastructures.
If superior production technologies and management skills owned by small and medium-size
companies continue to be kept in Japan in the future, it will be possible to keep business bases in Japan.
Business bases have an advantage in that in Japan, it is easy to find suppliers, to form partnerships with
other companies and get access to technologies due to the concentration of high technology companies.
[Table 2-18 Opinions of Manufacturing Companies regarding Overseas Business Expansion]
Source: Survey by METI (April 2010)
23%
24%
31%
12%
19%
15%
14%
14%
14%
14%
16%
12%
36%
26%
28%
0% 20% 40% 60% 80% 100%
5-10 years ago
Now
5 years later
AlternativeSligthly alternativeNot clearly alternative or complementarySlightly complementaryComplementary
(n=349)
12%
9%
15%
7%
56%
14%
23%
19%
9%
22%
11%
45%
15%
24%
23%
17%
32%
16%
39%
11%
20%
0% 20% 40% 60%
Raising technology level by shifting emphasis from
production to development
Concentrating key production technologies/functions in Japan to
improve technology development efficiency
Active technology transfer to overseas bases
Support for overseas bases to transfer technologies between
themselves on their own
Dividing roles by product
Dividing roles by process (vertical division)
Dividing roles by technology level regarding the same products
5 years ago
(n=514)
Now (n=571)
5 years later
(n=581)
(Role of domestic operations amid global business expansion)
Domestic business bases are playing an increasing role in integrating core technologies and functions, such as
R&D, basic design and intellectual property management, so as to raise the technology level of the entire group.
Meanwhile, the relationship between domestic and overseas bases, which used to be complementary, is gradually
becoming an alternative one. However, Japanese companies‘ strategies for the division of roles remain unclear. It
will be important to seek to gain a global market share by optimizing the division of roles between domestic and
overseas bases while taking advantage of the strengths of domestic bases.
[Chart 2-19 Roles of Domestic Bases in Production]
Source: Survey by METI (January 2010)
[Chart 2-20 Ratio of Companies Planning to Attach
Importance to Domestic Functions in Future regarding
Processes related to Development and Production
(Top five answers)]
[Chart 2-21 Relationship between Overseas Production
Bases and Domestic Bases]
Functions/process Response rate
Basic research 86.8%
Applied research 86.7%
Basic design 85.9%
Management/use of intellectual properties 84.8%
Product development/planning 84.6%(n=787)
Source: Survey by METI (February 2010)
[Column: Yamazaki Mazak Corp. — Domestic and overseas
product development arrangements for global markets]
Under its philosophy that ―products wanted by customers
should be swiftly developed, produced and provided at sites
close to those customers,‖ major machine-tool maker Yamazaki
Mazak keeps its bases close to its customers throughout the
world so as to find local needs and design and develop products
for specific customers in local markets. For example, its U.S.
base develops oilfield machines for which demand is robust in
the United States.
Yamazaki Mazak‘s domestic bases intensively produce such
key components as numerical control units and ball screws for
global supply. In product development, the company designs
common basic standards for all machine tools, and controls and
manages design and development details for markets throughout
the world.
Yamazaki Mazak promotes the enhancement of its head
office‘s product development operations in consideration of its
intensifying competition with emerging-country companies that
are expanding their presence. In a bid to accelerate its product
development, the company combined domestic product
development bases and human resources to create the World
R&D Center in the autumn of 2009 to undertake the development
of test models and the establishment of production know-how
and technologies.
[Column: Komatsu Ltd. — Importance of cooperation with
partners at domestic bases]
―We join hands with our partners to promote
improvements and implement a 10-year plan for developing
products.‖ Komatsu, a major construction machinery builder
that earns 80% of its total revenues overseas, produces key
components of construction machines in Japan only.
Advanced coordination skills are required for the
development and production of key components that are
important for securing the performance, waste gas
treatment functions and fuel efficiency of construction
machines, so medium to long-term cooperation with
domestic partners is indispensable for Komatsu.
Komatsu always implements its technological guidance
for its partners to expand the technological capacity of its
entire supply chain, including peripheral partners. It also
accepts employees of its partners for its in-house training of
young and managerial employees.
18
Photo: World R&D Center
Komatsu’s Basic Policies of Global Production
1. Engage in assembly in regions with strong market demand.
2. Concentrate the production of key components, such as
engines and hydraulic equipment, in Japan.
3. Integrate development and production operations and uplift
the level of overseas plants‘ capabilities under the Mother Plant
System.
Source: Komatsu‘s website
Japan China India South
Korea
Hong
Kong
Singapore
Asian regional headquarters 10% 42% 10% 2% 13% 16%
Production base 1% 64% 14% 2% 2% 2%
R&D center 21% 33% 20% 4% 2% 8%
Back office operation base 8% 39% 19% 2% 9% 15%
Distribution base 3% 63% 8% 2% 6% 11%
Financial operation base 10% 30% 9% 4% 23% 21%
Sales base 7% 50% 7% 4% 13% 11%
Japan China India South
Korea
Hong
Kong
Singapore
Asian regional headquarters 23% 18% 8% 4% 20% 16%
Production base 3% 62% 12% 5% 5% 2%
R&D center 30% 25% 16% 4% 6% 9%
Back office operation base 15% 24% 15% 5% 15% 12%
Distribution base 11% 41% 8% 7% 13% 9%
Financial operation base - - - - - -
Sales base - - - - - -
Japan China IndiaSouth
KoreaHong Kong Singapore
1. Large market size 9 120 13 0 1 4
2. Market potential 2 114 22 1 2 2
3. Accumulation of business functions 15 78 13 1 8 13
4. Quality of R&D environment and capability 27 27 21 6 4 12
5. Geographical factors 13 45 16 3 15 26
6. Favorable fund-raising and financial environment 21 28 13 4 27 14
7. Access to excellent human resources 26 29 28 6 9 23
8. Business activity cost (*1) 0 74 32 3 4 3
9. Corporate tax rate 1 25 6 1 18 16
10. Incentives such as preferential treatment 3 28 8 3 6 17
11. Solid legal frameworks regarding intellectual properties, etc. 16 16 15 9 11 16
12. Liberalness of business regulation 16 24 11 5 19 17
13. Infrastructure development (*2) 43 36 7 3 6 23
14. Living environment for foreign residents 28 20 6 2 22 23
(Japan‘s environment as a site for business operations)
In order to maintain and strengthen Japan‘s monodzukuri skills, it is essential to increase the country‘s
competitiveness as a site for business operations from the global perspective. According to a survey concerning
countries‘ attractiveness as an investment destination, Japan excelled in such items as ―R&D environment,‖
―infrastructure development‖ and ―living environment for foreign residents,‖ while it scored poorly in ―business
activity costs.‖ As a result, Japan‘s presence as a site for business operations has declined in recent years relative
to other Asian countries.
19
[Table 2-23 Most Attractive Countries/Regions in Asia by Business Function]
Remarks: (1) The survey was conducted on companies in Europe, North America and Asia (including companies which have business
operations in Japan) (209 companies surveyed in 2007 and 180 companies in 2009).
(2) The figures were compiled regarding only major six countries and regions.
(3) The respondents were asked to select one country or region with regard to each business function. The above figures represent the
percentages of companies that made the selection (Companies that did not respond were excluded).
(4) The shaded areas indicate the country or region which was selected by the most respondents with regard to each business function.
Source: METI, ―Survey on U.S., European and Asian Companies‘ Interest in Investment in Japan‖ (2007 and 2009)
<2007 Survey> <2009 Survey>
[Table 2-22 Most Attractive Countries/Regions in Asia by Investment Environment Factor]
Remarks: (1)*1：Refers to personnel costs, real estate prices, distribution costs, telecommunication costs, etc.
*2： Refers to transportation, energy, waterworks/sewage and information/communications infrastructures.
(2) The survey was conducted on 180 companies in Europe, North America and Asia (including companies which have
business operations in Japan).
(3) The respondents were asked to select one country or region with regard to each factor. The above figures represents the
numbers of companies that made the selection.
(4) The shaded areas indicate the country or region which was selected by the most respondents with regard to each factor.
Source: METI, ―Survey on U.S., European and Asian Companies‘ Interest in Investment in Japan‖ (2009)
40%
41%
5%
13%
6%
Cannot take proactive steps because cost efficiency is
unclear
Lack of personnel familiar with standards
Lack of progress in coordination with industry
groups
Lack of information about standards
Lack of initiative due to low awareness among same
sector companies(n=1,736)
Multiple replies allowed
10%
59%
21%
29%
15%
Lost shares to competitors
Product development and production costs rose
Became unable to make, sell and export products
Difficult to gather information about
standards concerning market countries/regions
Standards in market countries/regions change
frequently(n=414)
Multiple replies allowed
26%
17%
5%
4%
40%
14%
16%
Establising specialized post/division in charge of standards
Particpating in standardization activity of industry groups
Consulting with the national and local governments
Strengthening exchange of information with government of host countries
Reviewing design and production to meet standards
Strengthening exchange of informtion with foreign companies
Strengthening exchange of information with companies in the same sector
(n=1,736) Multiple replies allowed
31%
5%
49%
1%
2%
0%
3%
18%
10%
0%
12%
31%
12%
24%
12%
15%
Japanese employees (regular employees)
Japanese employees (non-regular employees)
Retired Japanese employees
Local employees (regular workers)
Local employees (non-regular employees)
Retired local employees
Employees of joint ventures or partner companies
Employees of customer companies
Domestic bases (n=112)
Overseas bases (n=107)
39%
49%
16%
30%
57%
19%
Leakage through people
Leakage through products
Leakage through technological data (leakage of blueprints,
production data, etc.)
Domestic bases (n=287)
Overseas bases (n=351)
20%
16%
37%
37%
8%
13%
16%
24%
26%
21%
10%
20%
12%
12%
8%
22%
19%
5%
4%
9%
14%
14%
10%
4%
11%
18%
Identifying and specifying secrets to be kept
Establishing policy managing business secrets
Signing confidentiality agreement with customer companies
Acquiring intellectual property rights (patents, design rights, trademarks, etc.)
Keeping know-how/technologies in Japan
Establishing specialized post/division in charge of intellectual property rights
Encoding data and restricting access
Restricting and recording taking out of data
Signing confidentiality agreement with employees
Signing confidentiality agreement with retiring employees
Setting a period during which retired employees are prohibited from working for a competitor
In-house education and awareness-raising activity
No particular activity
Domestic bases (n=1,479)Overseas bases (n=1,226)
Policy
External
relations
In-house
activity
Some companies‘ business activities have been undermined by problems related to standards. Most of them
have suffered a cost increase as a result and have taken reactive actions, such as revising product designs. Amid
intensifying technology competition around the world, Japanese companies need to fully recognize the risk of
opportunity loss that may arise unless they take measures to preserve their strengths and establish their
technologies as global standards. They will also need to understand the importance of maintaining and developing
a superior competitive environment, including in terms of human resource development, and take necessary
measures.
(Restructuring business strategies to take advantage of strengths: Securing a superior competitive environment (2)
Setting global standards
Technology leakage occurs not only through products but also through people (e.g., current and retired
employees) in many cases. As efforts to prevent technology leakage are lagging at overseas business bases
compared with at domestic ones amid the globalization of business operations, it will be important to take
measures to prevent technology leakage.
(Restructuring of business strategies to take advantage of strengths: Securing a superior competitive environment (1)
Prevention of technology leakage)
[Chart 2-24 Pathway of Technology Leakage] [Chart 2-25 Activities to Prevent Technology Leakage]
Source: Survey by METI (January 2010)
[Column: Viewpoints for international standardization of digital
cameras]
Japan has obtained effective international standards for digital
camera formats. Canon Inc., one of the companies contributing to
Japan‘s setting of international standards, has given priority to the
expansion of the digital camera market and positively proposed the
standardization of its own specifications even at the expense of its
own resources. Canon specifications have thus become the base for
Japanese standards. But Canon has refrained from standardizing
numbers of pixels and sizes of imaging devices (sensors to convert
light into digital signals) that are available for further technological
development, securing a competitive environment where it can
demonstrate its optical technologies as its strength. This strategy
has contributed to the Japanese digital camera industry‘s
maintenance of competitiveness.
20
[Chart 2-26 Effects of Standards] [Chart 2-28 Challenges in Applying
Standards]
[Chart 2-27 Response to Standards
in Other countries]
[Column: Efforts to standardize antimicrobial test methods]As testing methods were underdeveloped for antimicrobial
products for which a Japanese market rapidly expanded in the 1990s, the Society of Industrial Technology for Antimicrobial Articles, which consists of antimicrobial-product producers and experts, took the leadership in adopting these methods as Japanese industrial standards, known as JIS, in 2000. In a bid to form adequate markets in foreign countries where demand for these products is expected to expand, to take advantage of JIS assets, and to maintain and enhance Japan‘s world-leading competitiveness, the society then launched efforts to obtain ISO (International Organization for Standardization) standards for these methods. It introduced the relevant JIS standards to a European research organization with influence on the ISO and informed it about the JIS standards. It also provided positive support for the ISO-promoting employees of its member companies, including measures prompting member companies to lead relevant employees to focus on ISO standard obtainment efforts. Thanks to these efforts, the society obtained an official ISO standardization approval in as little as 37 months.
Source: Survey by METI (January 2010)
1%
3%
1% 1%0%
1%
12%
22%
6%
13%
7%
13%
1% 1%
13%
24%
7%
15%
7%
14%
1% 2%
Recent(n=912)
Future(n=892)
Recent(n=858)
Future(n=834)
Recent(n=854)
Future(n=836)
Recent(n=809)
Future (n=781)
Maintenance/service (product
maintenance)
Operation/service(product operation,
control, etc.)
Intellectual properties
/patent royalty
Financial services
Increase Significant increase
(Blue figures represent the total.)
0
5,000
10,000
15,000
20,000
25,000
Ex
po
rts
Imp
ort
s
Ex
po
rts
Imp
ort
s
Ex
po
rts
Imp
ort
s
Ex
po
rts
Imp
ort
s
Ex
po
rts
Imp
ort
s
Ex
po
rts
Imp
ort
s
Ex
po
rts
Imp
ort
s
2002 2003 2004 2005 2006 2007 2008
Parent-subsidiary trade
Excluding parent-subsidiary trade
(Fiscal year)
(¥ 100 million)
(Restructuring business strategies to take advantage of strengths: Diversifying profit sources)
There are moves to secure profits by undertaking service work, such as facility maintenance and operation, as
well as by providing intellectual properties and technologies, which have until now been mainly used within the
group, to outside companies. The perspective of securing profits by making use of business operations before and
after the production and sale of products is important.
Regarding infrastructure development, for which demand is expected to grow in emerging countries in Asia and
other regions, it will be important to build a business model that transcends the confines of the production and sale
of individual products. The Japanese manufacturing industries, which have an advantage with regard to individual
products and technologies will need to redefine their business domain and secure business opportunities by
forming partnerships with various companies.
(Restructuring of business strategies to take advantage of strengths: Emphasis on systems
business)
[Column: Mitsubishi Heavy Industries Ltd. — Efforts to enhance services and other downstream
business operations]
Mitsubishi Heavy Industries has promoted efforts to enhance operation, control and maintenance
services for prime movers, as well as marketing, in a bid to win orders for large overseas projects from
prime movers. In May 2009, Mitsubishi Heavy Industries acquired a large European
machinery-maintenance company in order to obtain service bases at various points around the world.
The services enhancement is designed to increase customer satisfaction for the prime mover
operation phase and further improve the value of its prime movers. It is expected to contribute to the
company‘s earnings.
Currently, the
mainstay of parent-
subsidiary trade is
technology export to
overseas
subsidiaries.)
Photo: Gas turbine ―M501G‖
[Chart 2-29 Activities to Diversify Profit Source] [Chart 2-30 Parent-subsidiary trade concerning technology]
Source: Survey by METI
(January 2010)
Source: MIC, ―Science and Technology Research Survey‖
21
Domestic business
expansion
Source: Asian Development Bank
[Chart 2-31 Infrastructure Investment to Be
Required in Asia (from 2010 to 2020)]
(Fields)
Fo
reign
com
pan
iesJap
anese co
mp
anies
Overseas b
usin
ess exp
ansio
n
[Chart 2-32 Positions of Japanese and Foreign Companies in
the Water Business]
(Water treatment
equipment)
Asahi Kasei, Ebara,
Kubota, Kuraray,
Sekisui Chemical,
Teijin, Toyobo,
Toray, Nitto Denko,
Hitachi Plant, etc.
(Engineering)
IHI, Organo,
Kyowakiden, Kurita,
Chiyoda, Toyo
Engineering, JGC,
Hitachi Zosen, Hitachi
Plant, Mitsubishi Heavy,
etc.
(Trading companies)
Sumitomo, Mitsui,
Mitsubishi, etc.
Local governments
Metawater, Japan
Water, etc.
Production of
materials,
parts and
equipment
Design/assembly/
construction
(operation) of
facilities
Project operation/
maintenance
/management
Veolia (France), Suez (France), GE Water (U.S.)
Siemens (Germany), DOW Chemical (U.S.), etc.
Thames Water (Australia), Hyflux (Singapore), etc.
Doosan (South Korea),
etc.
Source: Prepared by METI
0
1
2
3
4
5
6
7
8
9
($1 trillion)
Approx. $8 trillion
Water/sanitary, 0.381
Telecommunications, 1.056
Traffic/transport (roads, etc.), 2.466
Energy (electricity), 4.089
(Restructuring business strategies to take advantage of strengths: Efforts to increase the value of
products)
It is also important to make efforts to increase the value of products so as not to be trapped in price competition
by taking advantage of Japanese cultural and spiritual traits.
Production and the number of employees in Japan's traditional craft industry have plunged to one-third of their respective
peaks due to a recent increase in cheaper traditional craft imports and consumers' limited awareness of domestic crafts.
Under such situation, the Ministry of Economy, Trade and Industry is cooperating with relevant organizations in (1) the
transmission of information and exploration of overseas sales channels through various trade fairs so as to exploit demand, (2)
the improvement of brand value for traditional crafts and (3) efforts to secure and train successors to craftsmen in craft
production areas, paving the way for craftsmen in such areas to lead younger people to take over traditional craft-making
methods and skills that these craftsmen have inherited from their predecessors.
(1) Exploration of overseas sales channels
It is important to transmit comprehensive information and build distribution networks
in order to inform people at home and abroad of Japan‘s traditional crafts, which
boast high-level techniques and quality, and to explore new sales channels for these
crafts. In a bid to help explore channels for sales to wealthy people in rapidly-growing
China among overseas markets, METI sponsored the Japan Quality-Life Products
Gallery in Shanghai from November 2009 to the end of February 2010. The gallery
exhibited 190 crafts, including dishes made in collaboration between craftsmen and
designers, over the three-month period (attracting about 20,000 visitors) and actively
provided business negotiation opportunities. METI has thus conducted a wide range
of promotions for traditional Japanese crafts.
(2) Promoting branding of traditional crafts
In addition to the effective utilization of trademarks registered by local organizations
(at the end of March 2010, local organizations in areas for 90 of the 211 designated
crafts in Japan had registered relevant trademarks), the Association for the
Promotion of Traditional Craft Industries has made efforts to increase brand values
for traditional crafts. It has done so by encouraging local cooperatives to attach the
symbol of a certificate of authenticity to each traditional craft product that cleared
inspections that test whether crafts meet criteria covering manufacturing
technologies, methods and materials.
(3) Supporting programs to secure and train craftsmanship keepers
Based on the Law for the Promotion of Traditional Craft Industries, METI has
subsidized part of the costs of traditional craft production areas‘ programs in order to secure and train craftsmanship keepers.
In addition to training programs implemented by local cooperatives and the like to improve the skills of local craftsmen, those
for the purpose of training students or adults interested in manufacturing traditional crafts to be workers for craft production
areas became entitled to the subsidization in FY 2009.
[Column: Transmitting Japanese brand
information]
<Japan Fashion Week (JFW)＞>
Information is
transmitted
about textile
materials handled by small and medium-sized
companies and
about designer
products.
Effective
business
negotiations and
shows for consumers are also implemented.
Photo: 9th JFW
[Column: Taking advantage of brands to explore emerging markets]1. Pigeon Corp. (The nursery item maker has the largest share of China‘s baby-bottle market)
Pigeon has promoted a brand-based strategy to push luxury products for wealthy consumers. The deliberate education of sales agents and the creation of sales corners (Pigeon Corners) have been successful.2. Shiseido Co. (The cosmetics maker has obtained one of the largest shares of the Chinese market)
Shiseido has taken advantage of its over-the-counter counseling services to establish a luxury brand in China. Following the achievement, Shiseido has developed products meeting consumers‘ income levels and has explored sales networks.
[Column: Introducing ergonomics to product design]
Yamazaki Mazak Corp. has cooperated with
designer Kiyoyuki Okuyama to develop machine tools
that feature improved visibility and operability for
humans in order to ease user fatigue and stress.
Specifically, the company has equipped machine tools
with operation screens adaptable to the user‘s body
height or with wider operator doors to improve
visibility for setup operations. Yamazaki Mazak thus
pursues new customer values for machine tools
whose developers tend to give priority to mechanical
performance.
Photo: Machine tool
―HYPER VARIAXIS 630‖
<TOKYO FIBER SENSEWARE>
The exhibition
pursues new uses and
potentials for textiles
and introduces
products that leading
creators have
visualized from
unprecedented angles.
Emphasizing
technologies, the
exhibition transmits information about highly
functional and high-value-added Japanese textile
products to the world.
Photo: TOKYO FIBER
Photo: PIGEON corner
[Column: Traditional craft industry — Overseas sales channel exploration, branding, securing successors]
Photo: Example of a product displayed at the Japan
Quality-Life Products Gallery exhibition (left) and
visitors at the exhibition (right).
Photo: ―Tradition‖ mark (left) and examples of
traditional craftwork products with ―Tradition
certificate‖
22
10%
20%
30%
40%
50%
0% 10% 20% 30% 40% 50% 60% 70%
Improving company recognition and image abroad
Globalization of personnel employed in Japan (Japanese and foreigners)
Introducing substantial training programs for personnel employed abroad
Fostering senior personnel capable of acting globally
Transferring technology and know-how to overseas bases
Optimum distribution of global talents through selection/allocation/transfer
Fair personnel evaluation, equal promotion opportunities, etc.
Introducing pay and evaluation systems to attract superior foreign personnel
Facilitating intra-company communications (including with overseas bases)
Diversity management (concerning foreign personnel) initiative
Improving understanding of and awareness about corporate philosophy and
core values
Providing appropriate and flexible working style and superior employee
welfare
<Ratio of companies attaching particular importance>
<R
atio
of
com
pan
ies
reco
gn
izin
g c
hal
len
ges
>
23
In line with the globalization of business activities, it is becoming increasingly important to train domestic
personnel to adapt to globalization and foster personnel who can act as global managers. In order to remain
familiar with the situations and market conditions abroad and deepen collaboration with overseas business bases,
it will become increasingly necessary to develop global talent.
(Development of human resources that support the globalization of monodzukuri)
23
[Column: Horiba Ltd. — Training Japanese employees for global operations]
Major measuring instrument maker Horiba has implemented a program to train young Japanese employees at
overseas units for one year since the 1980s.
The globalization of Japanese employees has emerged as a major challenge at Horiba, as it has been acquiring
European companies since the second half of the 1990s (overseas sales account for half of the total sales, and
overseas employees make up half of its total workforce).
Under the training program, 10 young employees from various divisions take part in business operations and
training at overseas units every year to experience overseas business operations and lifestyles. (In 2008, a total of
118 employees received overseas training, including 56 in the United States, 54 in Europe and eight in Asia.)
The effects of overseas training include (1) employees' greater ambitions to work overseas after training, (2)
human resources secured to undertake future global business operations (80% of Horiba executives have
experienced overseas business operations), and (3) deeper cooperation between Japanese and overseas
business bases through trainees serving as bridges between these bases.
[Chart 2-33 Key fields and Challenges related to Globalization of Human Resources]
Source: METI, ―Benchmarks for Measuring Degree of Globalization of Human Resources at Japanese Companies‖ (April
2009)
47.0
6.9
0.4
42.9
16.1
3.6
4.3
13.1
11.6
1.2
0.3
0.1
14.9
3.4
0 10 20 30 40 50
Promising market
There are personnel familiar with the field
Sufficient funds are available
Business resources including technologies for existing businesses are available
Requested by existing customers
Consulted by universities/research institutions
Consulted by new customers
Expecting shrinkage of existing businesses
Competition in existing businesses is intensifying
Existing customers relocated to other countries
Existing customers are performing poorly or failed
Skilled technical workers for existing businesses retired
Review of buiness portfolio is necessary
Others
(%)n=2102
0
2
4
6
8
10
12
14
Ph
oto
vo
lta
ic/s
ola
r cell
Hy
bri
d v
eh
icle
(H
V)
Ele
ctr
ic v
eh
icle
(E
V)
Med
ica
l eq
uip
men
t
Agri
cu
ltu
re-r
ela
ted
pro
du
cts
En
erg
y-s
av
ing/e
co
-ho
usi
ng
Info
rma
tio
n h
om
e e
lectr
ic
ap
plia
nces
Fu
el cell v
eh
icle
s (F
CV
)
Wa
ter tr
ea
tmen
t
Aero
spa
ce p
rod
ucts
Fu
el cells
(ex
clu
din
g c
ells
for
au
tom
oti
ve u
se)
Hea
lth
an
d w
elf
are
eq
uip
men
t
Nex
t-gen
era
tio
n ro
bo
ts
Already entered the market (to keep business size at current level)
Already entered market (to expand business size)
Thorougly preparing to enter the market
(%)
n=2102
Section 3 Initiatives by manufacturing industries to adapt to change and develop next-
generation industries
(New movements in the monodzukuri industries)
Companies have shown a willingness to actively enter next-generation industries and expand their business
operations in light of the potential of new markets and the need to utilize business resources available in existing
businesses. In some cases, companies from a broad range of business sectors have actually moved into new
sectors.
The emergence of resource- and environment-related problems and structural changes such as the
declining birthrate and the aging of society have significantly affected the Japanese manufacturing
industries, for example by creating new market needs. In order to flexibly respond to such changes and
establish next-generation industries that create new jobs and demand, it will be important for the
manufacturing industries to take advantage of their strengths.
24
(%)
[Chart 2-34 Prospects for Next-Generation Industries][Chart 2-35 Reasons for Entering Next-Generation
Industries]
Source: Survey by METI (January 2010)Source: Survey by METI (January 2010)
[Chart 2-36 Business Sectors from which New Market Entrants Come
(Vehicle market)][Column: Building on Japanese
Tosa handmade paper know-
how to explore lithium-ion
battery markets]
Hirose Paper Mfg Co., founded
in 1958 in Kochi Prefecture, has
taken advantage of Japanese
handmade paper know-how to
manufacture synthetic fibers and
capture 60% of the Japanese
market for alkaline battery
separators. It is now trying to
utilize the handmade paper
know-how to develop
technologies for high-
performance filters and
secondary battery separators.
Nippon Kodoshi Corp. has also
built on the Japanese handmade
paper know-how to command
90% of the Japanese market
and 70% of the overseas market
for aluminum electrolytic
capacitors. It is now making
efforts to enter the market for
separators for lithium-ion
batteries.
13%
8%
6%
9%
6%
9%
17%
11%
21%
Electrode materials (n=48)
General machinery
Metal products
Precision machinery
Electrical machinery
Transport machinery
Steel
Electronic components/devices
Chemicals
Nonferrous metals
Plastic products
Others
30%
14%
12%
11%
8%
5%
4%
3%
2%
11%
Gasoline vehicles (n=126)
36%
11%17%
6%
8%
11%
11%
Engines (n=49)
12%
19%
7%
12%15%3%
5%
3%
7%
6%11%
Motor/motor-related products
(n=161)
Source: Survey by METI (January 2010)
0 10 20 30
Company in a neighboring area and in
the same business
Company in a neighboring area and in a
different business
Company in a distant area and in the
same domestic business
Company in a distant area and in a
different domestic business
University/research institution in a
neighboring area
Domestic university/research institution
in a distant area
Local government
Foreign company in the same business
Foreign company in a different business
Foreign university/research institution
Others
Companies with good
business performance n=330
Total n=2,102
(%)
2,359
2,605
3,025
2,874 2,6282,824
2,888
2,977
2,712
1,996
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Japanese U.S. European Chinese
South Korean Others Total
(New transactions and partnerships)
In next-generation industries, existing business relations have undergone a certain change; for example, the
influence of makers of key components and materials has increased. It will be important to build business
relations in a strategic way, for example by keeping core technology.
When companies enter next-generation industries, they sometimes form business relations with new partners.
Partnerships with a variety of entities through joint research activity, for example, has brought about benefits. It is
important to collaborate with a variety of entities, including universities and companies, without being encumbered
by existing business relations.
0
20
40
60
最終製品
メーカー
中核部品
メーカー
その他部
品
メーカー
素材メー
カー
原材料流
通業者
製品流通
業者
その他
既存自動車（輸送用機械器具） n=68
次世代自動車（ハイブリッド車、電気自動車、燃料電池車） n=128
[Column: Initiatives Aimed at Taking the Initiative in Next-generation Technology]
In partnership with the Mitsubishi Motors Corporation, GS Yuasa Corporation (hereafter referred to as GS Yuasa)
established Lithium Energy Japan as a subsidiary dealing with lithium-ion batteries for use in automobiles; in addition, it
established Blue Energy as a subsidiary in the same field in collaboration with Honda Motor Co., Ltd. GS Yuasa holds
51% equity in both subsidiaries, thus taking the lead as a full-time manufacturer of batteries. With regard to lithium-ion
batteries for use in automobiles, as well as batteries to be installed in new cars, GS Yuasa is aiming to secure a share of
the market for replacement batteries, and is actively striving to cultivate repair and maintenance personnel. Moreover,
GS Yuasa has strategically acquired patents relating to the core components and technologies, such as the materials
and structures of lithium-ion batteries, and is striving to protect these.
(%)
Number of
applications filed
in Japan, U.S.,
Europe, China
and Sth Korea
(Year)
Conventional vehicles (transport machinery) n=68
Next-generation vehicles (hybrid, electric and fuel cell vehicles) (n=128)
Fin
ish
ed
pro
du
ct m
aker
s
Core
par
ts
mak
ers
Oth
er p
arts
mak
ers
Mat
eria
ls
mak
ers
Mat
eria
ls
dis
trib
uto
rs
Pro
du
ct
dis
trib
uto
rs
Oth
ers
[Column: Developing PHV With Community-wide
Cooperation]
There are many companies affiliated to Mazda
Motor Corporation in Hiroshima Prefecture; in
order to respond to the increasing use of
electronics in motor vehicles in recent years, the
Hiroshima Industrial Promotion Organization has
established the Hiroshima Center for the
Advancement of Car Electronics, through which it
has been undertaking research and development.
As an extension of such endeavors, in November
2009, the Hiroshima Industrial Promotion
Organization decided to work on the development
of a plug-in hybrid car in partnership with
universities and automotive component
manufacturers in the prefecture, with a view to its
commercialization in the future. In addition to the
development of plug-in hybrid cars, this project has
its sights set on the development of ―low-carbon
models‖ that use domestic solar photovoltaic cells
as a power source. A wide range of players,
including automotive component manufacturers,
universities and housing-related companies within
the prefecture, are working together on this
endeavor, with the aim of responding flexibly to
changes.
25
[Chart 2-37 Changes in Parties with Influence] [Chart 2-38 Trend in Patent Applications related to Lithium
Ion Batteries]
Source: Survey by METI (January 2010) (Source: Japan Patent Office, ―Survey on Trend of Patent
Application Technologies‖ (2009)
[Chart 2-39 Joint R&D Partners in Past 3 Years]
Companies with good business
performance: Companies whose
operating profit is growing at a rate
greater than 5%.
Source: Survey by METI (January 2010)
26.7 23.6
31.8
20.3
11.5 13.3 13.9
16.8 14.7
24.6
16.0
11.4 12.4 12.0 13.7 12.3
22.6
15.1 11.2 11.6 11.8
0
5
10
15
20
25
30
35
Incr
easi
ng h
irin
g
Hir
ing
per
son
nel
fam
ilia
r
wit
h a
dv
ance
d
tech
no
log
y a
nd
eq
uip
ped
wit
h h
igh
sk
ills
Fost
erin
g p
erso
nn
el
fam
ilia
r w
ith
ad
van
ced
tech
no
logy
and e
quip
ped
wit
h h
igh
sk
ills
Est
abli
shin
g a
new
spec
iali
zed
po
st o
r
div
isio
n
Rea
lignin
g a
nd
con
soli
dat
ing
ex
isti
ng
org
aniz
atio
n a
nd
dep
artm
ents
Tra
nsf
erri
ng
per
son
nel
acro
ss d
ivis
ions
Tra
nsf
erri
ng p
erso
nn
el
acro
ss p
roce
sses
Companies with good business performance n=330
Total n=2,102
Companies with poor business performance n=1,313
(%)
3.9
2.4 2.0
1.6
3.7
2.4 2.1
1.8
3.2
2.5 2.2 2.1
0
1
2
3
4
Imp
rov
emen
t o
f
exis
tin
g p
rod
uct
s o
n
assu
mp
tio
n o
f ea
rnin
g
pro
fits
in t
he
sho
rt ter
m
Mar
ket
lau
nch
of
new
pro
du
cts
on
ass
um
pti
on
of
earn
ing
pro
fit
in t
he
sho
rt te
rm
Imp
rov
emen
t o
f
exis
tin
g p
rod
uct
s ai
med
at e
arn
ing
pro
fit
in t
he
med
ium
ter
m
Mar
ket
lau
nch
of
new
pro
du
cts
aim
ed a
t
earn
ing
pro
fits
in
th
e
med
ium
ter
m
Past Now Future
n=1503
(Review of R&D system with an eye on next-generation industries)
In fiscal 2008, corporate research expenditures declined slightly (from ¥13.8 trillion to ¥13.6 trillion), marking the
first decline in nine years. However, companies have shown a willingness to continue to actively conduct R&D. As
for R&D themes, companies are increasingly aiming to secure profits in the medium term.
Companies are making active efforts to develop human resources with a view to entering next-generation
industries. It is also important to integrate R&D resources and develop a system that enables appropriate
collaboration between the R&D and other divisions.
6.0
6.1
20.8
27.9
61.3
56.7
7.6
5.6
4.3
3.7
0% 20% 40% 60% 80% 100%
Over past 5
years
n=1,706
Projections
for the
future
n=1,698
Increase (by over 20%)
Moderate increase (by 5%-20%)
Flat (increase or decrease by less than 5%)
[Column: Establishing an Organization That Cuts Across all
Operational Divisions, in Order to Demonstrate Their Collective
Strength]
In 2008, in order to utilize the strengths of existing business,
while expanding into new projects in the field of energy and the
environment, Mitsubishi Heavy Industries, Ltd. established the
Energy and Environment Project Supervision and Strategy Office
(hereafter referred to as the Supervision and Strategy Office), an
organization that cuts across all operational divisions. Hitherto,
Mitsubishi Heavy Industries had a wide range of technologies
relating to energy and the environment, but each technology was
stored separately in the operational division relating to the
specific product. As well as identifying new needs among
customers and society as a whole, the Supervision and Strategy
Office has taken on the role of integrating the technologies of
each division that respond to those needs and planning products
that utilize them, and then coordinating the transformation of the
plans into product development projects. Given this mission, the
members of the Supervision and Strategy Office are composed
primarily of engineers with business sense, who are thoroughly
acquainted with both needs and technologies, rather than sales
staff who have only business sense or cutting-edge technicians.
[Column: Towards the Strengthening of Intra-company
Collaboration]
In the Asahi Kasei Group, hitherto, research and development not
directly linked to product commercialization has been undertaken
by the holding company, Asahi Kasei Corporation, while research
and development relating to business has been undertaken by
subsidiary operational companies; the group has now stipulated
priority fields on which the resources of the group as a whole will
be concentrated, in order to work on next-generation product
development in the group as a whole. More specifically, i) ―thin-film
technology for compound semiconductors‖, which is expected to
spread to electronic components, and ii) ―the polymer surface
treatment technique‖, which is a technique relating to the surface
of substances for improving efficiency in fields where the surfaces
condense or emit light, such as lighting and solar photovoltaic
power generation, have been designated as the two priority fields,
and research and development that cuts across operational
companies has been underway since January 2010. With regard
to the structure, a technical fellow who can provide an overview of
technology and the president of an operational company who can
promote development from the perspective of an entrepreneur
have been selected as the top managers, and have initiated
discussions that cut across business fields from the perspectives
of both technology and business.26
[Chart 2-41 R&D Themes][Chart 2-40 Changes in and Projections of R&D
Expenditures] The figures below represent the proportions (represented on a scale of 1 to 10) of the research themes pursued in the past, being pursued now and to be pursued in the future by companies.
Source: Survey by METI (January 2010)Source: Survey by METI (January 2010)
[Chart 2-42 Ongoing Activities related to Organization and
Human ResourcesSource: Survey by METI (January 2010)
(Initiatives to accelerate the creation of next-generation industries）
It will be important for Japan to carry out initiatives to improve the environment for developing next-generation
industries before other countries do, such as providing financial support for such industries and promoting
demonstration experiment projects.
○The ―Urban EV and PHV Concept‖ is a model project for a demonstration experiment to prepare for the Full-
fledged dissemination of electric vehicles (EVs) and plug-in hybrid vehicles (PHVs).
○In this project, model areas are selected for the creation of initial demand. It aims to disseminate EVs and
PHVs nationwide by establishing a dissemination model through the introduction of an incentive for the
development of battery-charging infrastructure and the use of such vehicles in cooperation with local
governments and local companies so as to create initial demand (introduction of EVs and PHVs), and through
intensive implementation of awareness-raising activity and impact evaluation.
Broad
experiment
areas
Experiment areas
Tokyo and
Kanagawa
Prefecture
Aomori, Niigata, Fukui, Aichi,
Kyoto and Nagasaki
Prefectures
Urban demonstration projects for EVs and PHVs
Introducing as vehicles for
public and business use
Initiatives toward the establishment of production bases for next-generation industries
Major countries around the world are providing support for the establishment of the production bases for
next-generation industries, mainly low-carbon industries.
<Initiatives in the United States and Europe>○United States: Inviting the construction of factories for high-efficiency batteries and related parts and
materials by offering subsidies equivalent to 50% of the necessary cost (total size of the subsidy
scheme: approx. ¥190 billion).
○United Kingdom: Offering subsidies and loans for the construction of domestic factories for electric
vehicles and lithium-ion batteries for automotive use.
○Japan is also trying to promote the establishment of business operations by low-carbon industries in the
country by allocating budget funds for the ―subsidy to cover the cost of projects to promote facility
construction by low-carbon, job-creating industries‖ (budget funds of approx. ¥29.7 billion allocated
under the second supplementary budget for fiscal 2009).
Resolving concern over
driving range by developing
a fast-charging network
[Column: Environmental Improvement Aimed at the Popularization of Electric Vehicles in Germany]
In August 2009, the German Government launched its National Electric Mobility Platform, which was aimed
at accelerating environmental improvements and research and development into electric vehicles.
As well as measures to support research and development aimed at promoting the development of battery
technology, such as lithium-ion batteries, this platform incorporates environmental improvement measures
such as the implementation of test demonstrations and the promotion of electrical charging infrastructure
installation, and sets the target of putting one million electric vehicles into practical use by 2020.
In Germany, projects aimed at the popularization of electric vehicles are underway in various parts of the
country; in Berlin, Daimler and the electric power company RWE AG are working in partnership on the
implementation of e-mobility Berlin. In this project, as well as Daimler providing more than 100 electric
vehicles under its own brand, RWE is installing and operating charging points in approximately 500
locations. Based on such infrastructure development, Daimler is planning to begin commercial production of
electric vehicles in 2010.
27
8.65.2
45.0
28.0
21.0
37.8
28.7
22.9
31.6
7.311.4
5.90.7 0.5 0.3 0.1 1.7 0.7
0
10
20
30
40
50
Bu
rden
on
peo
ple
Fin
anci
ng
Co
mpla
ints
fro
m
cust
om
ers/
con
sum
ers
Tim
e till a
pro
du
ct
acci
den
t ca
se i
s re
solv
ed
Impro
vem
ent
in s
oci
al
cred
ibil
ity
Co
mm
un
icat
ion
s w
ith t
he
pro
du
ctio
n d
ivis
ion
Co
mm
un
icat
ion
s w
ith
cust
om
ers
Pro
duct
dev
elop
men
t
effi
cien
cy
Pro
duct
ion p
roce
ss
Incr
ease
in
bu
sin
ess
tran
sact
ion
vo
lum
e
Positive effects Negative effects(%)
n=2102
28
Efforts to set standards will be important for creating new markets through corporate activities in response to
the growth of potential market needs that come with the emergence of social challenges.
Efforts to secure safety in the product design stage amid the growth in the complexity of products and the
increase in the use of electronic control bring benefits to the production process and leads to an improvement in
social trust.
Example: Tactile
Symbols on
Containers
Bumps have been
placed on shampoo
containers only,
making it easy to
distinguish the
containers from
containers for
conditioner.
○ Accessible Design is Changing Needs into Markets
With regard to the accessible design (the design of products that are easy for
elderly people and people with disabilities to use) products, the Accessible
Design Foundation of Japan, which is an industry group, is at the center of
ongoing endeavors in the field of international standardization activities, such as
discussions concerning the overall picture with regard to international standards,
the formulation of draft standards and the proposal of new standards. Through
such endeavors, the market for accessible design products has continued to
expand, and is estimated to have totaled ¥3.2 trillion in fiscal 2007 (an increase
of 8% compared with the previous year).
○ Initiatives Concerning Life-support Robots
In fiscal 2009, the Ministry of Economy, Trade and Industry launched the Life-
support Robot Practical Application Project. In the medium to long term, we will enter
an age when there will be a lack of human resources, so the need for life-support
robots in various areas of life is increasing. Amidst this situation, it will be necessary
to increase their degree of contact with humans and to ensure even better safety, but
no technical standards or rules have been set with regard to the safety of robots in
relation to humans, so development risks are high.
The Life-support Robot Practical Application Project is aiming to establish human
safety technology, standards and verification techniques, which have been an issue
affecting the popularization of service robots in lifestyle fields, and to promote
international standardization. Through this endeavor, it is hoped that the
development of life-support robots, which has not hitherto progressed due to a lack
of understanding of safety standards and rules, will accelerate.
28
Source: Survey by METI (January 2010)
[Chart 2-43 Effects of Efforts to Secure Safety in Product Design Stage]
1st 2nd 3rd Total for Top 3
China India Brazil
96.8% 2.2% 0.5% 99.5%
China Bolivia South Africa/Russia
90.9% 2.4% Each 1.6% 94.9%
China Russia Canada
81.0% 4.1% 3.4% 88.6%
China South Korea Japan
50.0% 14.2% 10.0% 74.2%
China India U.S.
54.5% 14.5% 6.9% 76.0%
China Mexico Peru
61.6% 16.4% 13.2% 91.2%
(Unit：ton, %)
Rare earths
Antimony
Tungsten
Indium (note)
Barium
Bismuth
[Strengthening of restrictions on export volume]
－Keeping control over who can export and how much can
be exported through the control of issuance of export
permits
－ Introduced export control through export permits with
regard to more than 400 items on an HS code basis.
－The export quotas for items subject to export control
have been declining every year.
*Molybdenum and Indium were added to the list of export control items in June 2007.
(The figures are rounded.)
2005 2006 2007 2008 2009
Rare earths (t） 49,000 45,000 43,500 34,000 31,310
Tungsten (t) 16,300 15,800 15,400 14,900 14,600
Antimony (t) 65,700 63,700 61,800 59,900 58,700
Molybdenum
(t)－ － N.A. 26,300 25,500
Indium (t) － － N.A. 240 233
62.1
53.8
51.3
39.3
35.8
29.3
27.5
0 10 20 30 40 50 60 70
Difference in ability to procure material
resources
Difference in the ratio of transport cost to
overall cost
Difference in ability to raise funds for
capital investment
Difference in fuels used in production
process
Difference in ability to develop
alternative materials
Difference in technological capability
related to energy and resource saving in
production process
Difference in technological capability
related to energy- and resource-saving
products
(%)
0
1
2
3
4
5
6
90 92 94 96 98 00 02 04 06 08 10 (Year)
Liquefied natural gas
Coal
Iron ore
Nonferrous metals
Crude and raw oil
1990-94 2000-04 2005-08
Total for manufacturing
industries57.4% 57.0% 61.9%
Steel 59.3% 58.3% 67.0%
Chemicals 45.4% 45.6% 58.1%
General machinery 56.5% 56.3% 59.5%
Electrical machinery 59.8% 61.8% 62.7%
Transport machinery 70.4% 68.8% 70.3%
Section 4 Japanese manufacturing industries are required to deal with resource and
environmental constraints
(Impact of resource constraints on corporate activity and efforts to overcome the constraints)
As resource prices have been rising since the international market experienced significant volatility last year,
the production costs of the manufacturing industries remain at a high level. In addition, China is strengthening its
activity to secure resources. The environment for procurement of resources to overcome resource constraints has
changed since the volatility hit the international market, and companies‘ international competitiveness has come
to depend on their procurement capability. Consequently, companies have taken measures to secure resources.
An increase in the consumption of resources and energy as a result of growth in demand in emerging countries
and increasing environmental constraints such as global warming have come to affect the global economy and the
competition strategies of manufacturing companies. In order for the Japanese manufacturing industries to increase
their presence by taking advantage of their technological superiority, they need to implement marketing activities
suited to individual markets, adapt themselves to the various needs for their technologies, and develop and retain
human resources that contribute to the strengthening of technological capability as a stepping stone to success in
next-generation industries.
Rare metals are essential materials for high value-added and high-function products such as IT products and
next-generation vehicles, and securing their stable supply is critical from the viewpoint of maintaining and
strengthening the international competitiveness of the Japanese manufacturing industries. In particular, more than
90% of rare metals are produced in China, and the country‘s restrictions on exports due to its resource protection
policy has had a significant impact.
Source: Survey by METI (December 2009)
(n=1,158)
29
[Chart 2-44 Changes in Materials Prices and Ratio of Materials
Cost to Shipment Value]
Remarks 1990=1
Source: Ministry of Finance ―Trade Statistics,‖ METI ―Census of
Manufacturers‖
[Chart 2-45 Factors Reducing International
Competitiveness following Resource Price Rise]
[Chart 2-46 Uneven Distribution of Rare Metals
(Shares of Countries in Rare Metal Production)]
Remarks: (note) In terms of base metal.
Source: U.S. Geological Survey, ―Mineral Commodity
Summaries 2010‖
[Chart 2-47 China‘s Resource Protection Policy]
Source: Prepared by METI
67.3
38.5
30.1
28.8
26.3
0.6
75.1
33.8
19.4
26.2
13.2
1.1
0 20 40 60 80
Selecting and reducing suppliers
Strengthening internal system for materials procurement
Altering contract terms related to resource
procurement
Diversifying material procurement methods
Promoting joint procurement through partnership with
other companies
Others
(%)
Large companies (n=156)
SMEs (n=913)
41.847.5
22.1
1.8
33.327.0
14.3
3.0
0
10
20
30
40
50
Rev
iew
ing
res
ou
rce
pro
cure
men
t st
rate
gy
Str
egtn
enin
g t
ech
no
log
y
dev
elo
pm
ent
syst
em
Ex
pan
din
g c
apit
al
inv
estm
ent
Oth
ers
(%) Large companies (n=293)SMEs (n=3,100)
In order to better deal with resource price volatility, Japanese manufacturing companies have started not only to
reduce costs but also to review their procurement strategies and strengthen technology development. In particular,
in addition to reducing the number of suppliers and strengthening the internal procurement system, they are
implementing measures that they did not take in normal times, such as reviewing the terms of contracts with
suppliers, so as to increase their procurement power.
Regarding resources for which a price rise is expected in the medium to long term, progress is being made in
the development and use of alternative materials. However, in order to secure resources in the future, strategic
initiatives will need to be implemented jointly by the public and private sectors.
Source: Survey by METI (December 2009) Source: Survey by METI (December 2009)
[Column: The Substitute Use of Bioplastics is Contributing to Suppressing the Use of Fossil Fuels]
Moves by automobile manufacturers and automotive components manufacturers to switch materials are underway. Toyota
Boshoku Corporation, Toyota Motor Corporation and Toray Industries Inc., which have been undertaking joint development
endeavors focused on the theme of ―making all parts of the car interior from plant-derived materials‖, are selling a new type of car
in which bioplastics have been used for approximately 60% of the surface area of the car interior, by using plant-derived
polyester for the surface materials, polyol derived from castor oil for the seat cushion pads, and kenaf fiber and polylactic acid as
the base materials for the door trim ornaments. The use of materials such as kenaf and polyol derived from castor oil is also
spreading to the products of other vehicle manufacturers, and
bioplastics are already becoming established as materials that
fulfill the functions required of automotive components. In addition,
Toyota Boshoku Corporation is aiming to use plant-derived materials
for 20% (on a weight basis) of car interior materials in the medium to
long term. Thus, with the aim of switching the materials used for
automotive components under conditions of limited resources,
efforts to introduce bioplastics, which will contribute to curbing the
use of fossil fuels, are accelerating.
Parts of SAI, a new Toyota Motor vehicle, for which bio-plastics was
adopted
[Column: Initiatives Aimed at Securing Rare Metals Through Joint Endeavors on the Part of the Public and Private Sectors]
In Kazakhstan, a project relating to securing rare earth resources, which brings together the public and private sectors, has got
underway, and the following two projects were announced at the 1st Japan-Kazakhstan Joint Public-Private Sector Economic
Conference, which was held in October 2009.
Sumitomo Corporation, the Japan Oil, Gas and Metals National Corporation (JOGMEC) and the Kazakhstan National Atomic
Energy Corporation Kazatomprom (hereafter referred to as Kazatomprom) are undertaking a project focused on recovering rare
earths from uranium ore residue that was formerly obtained by strip mining; they have established a joint venture aimed at
undertaking a feasibility study, and are verifying the potential profitability of the rare earth recovery project using the existing
facilities at the Ulba Metallurgical Plant, which is under the auspices of Kazatomprom. In the event that the prospects are good
for ensuring the profitability of the project, the aim is to establish a system for producing 3,000 tons of rare earths annually from
the end of fiscal 2010 at the earliest; this amount equates to around 10% of total annual demand for rare earths in Japan.
Moreover, Toshiba Corporation and Kazatomprom are undertaking a project focused on recovering rare metals and rare earths
from wastewater generated during the mining of uranium ore. This project focuses on extracting dysprosium, neodymium and
rhenium from wastewater from working uranium mines, after the uranium has been extracted, and both companies are currently
considering the establishment of a joint venture.
[Chart 2-49 Activities to Better Respond to
Resource Price Volatility]
[Chart 2-48 Measures to Overcome Environmental
Constraints]
30
27.4
16.9
56.6
52.0
10.7
11.9
5.3
19.3
0 20 40 60 80 100
Proactive companies (n=1,729)
Passive companies (n=1,459)
Recognizing significant risk posed to management
Recognizing slight risk posed to management
Recognizing no particular risk posed to management
Do not know whether there is risk
(%)
4.1 5.5 10.4 13.2 3.2 5.7 2.3 3.3
39.7 48.7
65.9 64.3
27.1 35.6
23.3 32.5
35.3
39.0
17.5 19.6
56.6
53.0
51.6
54.8
19.3 6.2 5.8 2.6
12.1 5.2
20.4 8.8
1.6 0.6 0.4 0.3 1.1 0.5 2.4 0.6
0
20
40
60
80
100
Proactive companies
Passive companies
Proactive companies
Passive companies
Proactive companies
Passive companies
Proactive companies
Passive companies
Competitiveness against other companies
Cost of actionsMarket shares of major products
Collaboration with customers
Very negative impact Fairly negative impact Negligible negative impact
Fairly positive impact Very positive impact
(%)
23.2
12.6
58.4
36.3
18.1
46.5
0.3
4.6
0 20 40 60 80 100
Large
companies
(n=293)
SMEs
(n=3,070)
Acting on assumption of strengthening of environmental
constraints
Preparing to act on assumption of strengthening of environmental
constraints
Not acting despite anticipating strengthening of environmental
constraints
Not assuming strengthening of environmental constraints
(%)
(Impact of environmental constraints on corporate activity and efforts to overcome the constraints)
Growing awareness about environmental constraints such as the need to cope with global warming has brought
about changes in corporate strategies. For example, companies are accelerating efforts to adapt their production
divisions to environmental constraints, shifting to environment-friendly products and actively introducing
equipment with high resource productivity. In their strategies for responding to environmental constraints,
companies are shifting emphasis from reactive actions to proactive actions, although there are differences in
strategy according to the corporate size.
Although some companies think that environmental constraints increase their competitiveness, many companies,
especially small and medium-size companies, recognize that such constraints pose a risk to their business
management.
[Column: Responding to Environmental Constraints Through the
Strengthening of Management Systems and Contributing to
Profits Through Cost Reductions]
At the Wakayama plant of the Panasonic Corporation Energy
Company, responses to environmental constraints in the form of
reductions in CO2 emissions, and cost reductions through
energy conservation are being implemented through the
construction of a management system that has introduced
energy conservation simulation technology to production
processes, under the concept of the ―eco ideas plant: a plant
undertaking production of energy-storing products through
energy conservation‖.
This seemingly contradictory initiative, in which the volume of
CO2 emissions is reduced even as production volumes rise, has
been made possible through utilizing in-house knowledge in the
form of cooperation with the company‘s production technology
research institute, which specializes in strengthening the
company‘s production technology and manufacturing plants. In
constructing this management system, a simulation of the
optimal operating conditions for equipment in major processes
was undertaken, based on the results of surveys conducted at
the plant by the production technology research institute.
In addition, a monthly Eco-Environment Meeting is held at the
Wakayama plant, in which all employees participate, exchanging
opinions concerning initiatives aimed at energy conservation in
production processes; by reforming not only production
processes, but also the environmental awareness of employees,
the plant is undertaking endeavors aimed at improving
productivity through reducing CO2 emissions and conserving
energy.
Source: Survey by METI (December 2009)
31
Source: Survey by METI (December 2009)
Source: Survey by METI (December 2009)
84.0%
68.9%
Companies proactive in relation to
environmental constrains
[Chart 2-50 Actions Taken on Assumption of Future
Environmental Constraints]
Companies passive in relation to
environmental constraints
[Chart 2-51 Future Impact of Environmental Constraints on
Business Operations]
[Chart 2-52 Recognition of Risk Posed to Corporate
Management by Environmental Constraints]
2.7
5.6
2.8
2.2
3.8
4.8
4.6
6.2
20.2
74.8
49.7
66.0
3.4
5.0
2.1
3.5
6.1
1.0
8.8
23.6
3.1
0 20 40 60 80 100
Total R&D investment(n=3,204)
Total capital investment(n=3,267)
Total environment-related investment(n=1,400)
Increased by over 20% Increased by 10-20%
Increased by 5-10% Remained flat (increased or decreased by less than 5%)
Decreased by 5-10% Decreased by 10-20%
Decreased by over 20%
(%)
← Increase Flat Decrease →
8.0
11.2
10.2
12.1
13.1
12.9
15.5
18.9
20.2
2.9
2.8
3.9
5.0
5.3
4.5
5.2
7.1
4.8
0.9
0.6
1.1
2.6
1.8
2.9
1.1
4.1
2.8
0 10 20 30
Development/purchase of chemicals management
system
Promotion of recycling-friendly design
R&D related to recycling technology
Expansion of production line for energy- and
resource-saving products
R&D related to reducing/eliminating toxic
substances
Shift to R&D related to energy- and resource-
saving products
Production shift from existing products to energy-
and resource-saving products
Shift to energy-saving production processes
Total investment related to response to
environmental constraints
Increased by 5-10% Increased by 10-20% Increased by over 20%
(%)
70.7
15.7
26.4
17.9
3.6
81.5
17.3
30.5
11.5
1.7
73.4
34.7
22.3
21.0
2.1
0 20 40 60 80 100
Strengthening management system to respond to
environmental constraints
Shifting to production of energy- and resource-saving
products
Expanding capital investment related to production of energy-and resource-saving products
Strengthening system to develop environmental
technology
Others
Materials producing industry (n=140)
Parts producing industry (n=421)
Finished goods producing industry (n=471)
(%)
In particular, Japanese manufacturers are making their production processes more energy-efficient and are
shifting to the production of energy- and resource-saving products. In addition, they are increasing investments in
R&D programs that support such activities and are strengthening efforts to increase their competitiveness, mainly
by making improvement in terms of energy and resource saving.
In addition to strengthening their control system for responding to environmental constraints,
individual companies are making focused investments from a long-term perspective as their
management task. Although the total amount of R&D expenditures and capital investments by
Japanese manufactures declined in fiscal 2009, investments for the purpose of responding to
environmental constraints remained flat compared with fiscal 2008, with some 30% of
companies increasing such investments.
Source: Survey by METI (December 2009)
Source: Survey by METI (December 2009)
[Column: Materials Change for Accelerating the
Introduction of Lightweight Vehicles]
Nippon Steel Corporation is developing well-formable,
ultra-high-strength sheet steel, which fulfills the three
conditions of collision safety, light weight and good
formability, thereby accelerating a change in materials. By
utilizing existing equipment and undertaking advanced
integrated controls in manufacturing processes (steel
manufacture, hot rolling, annealing), without adding rare
metals such as chrome, nickel or molybdenum, it is
possible to mass-produce high-strength sheet steel that is
thinner than conventional high-strength sheet steel, while
still ensuring a certain level of quality. The well-formable,
ultra-high-strength sheet steel developed by the company
can adapt to a variety of forming process methods, and
ensures the level of formability required in a variety of
automotive components, so the areas in which it can be
used have expanded significantly in recent years and the
quantity of orders received is increasing. At other
companies, the application of aluminum components in
vehicle body panels, the switch from metal to plastic in
back door modules and fuel tanks, and the introduction of
magnesium alloys in engine components are being
undertaken with the aim of making vehicles lighter in
weight, so research and development focused on new
materials and competition to commercialize these have
got underway.
32
(n=1,400)
[Chart 2-53 Specific Measures Taken under
Business Strategy to Overcome Environmental
Constraints]
[Chart 2-54 Changes in Investment for Response to
Environmental Constraints (investment amount in 2009
compared with 2008) ]
[Chart 2-55 Items for which Investment Was Increased to
Improve Energy and Resource Efficiency (investment
amount in fiscal 2009 compared with fiscal 2008)]
Remarks: The above are items regarding which companies proactive
in relation to environmental constraints increased investment.
Source: Survey by METI (December 2009)
59.6
25.3
14.1
22.2
7.1
5.1
72.1
21.7
16.9
11.9
7.1
1.2
66.5
25.6
14.7
15.6
9.4
1.2
0 25 50 75
Building and improving management
system to respond to environmental
constraints
Shifting from factory-level activity to
company-level initiative
Establishing specialized division in
charge of environmental constraints
Securing budget funds for responding
to environmental constraints
Increasing personnel for responding
to environmental constraints
Others
(%)
Materials
producing
industry (n=99)
Parts producing
industry (n=340)
Finished goods
producing
industry(n=343)
In addition to measures related to restrictions on the production and use of chemicals,
individual companies are building and improving management systems for responding to
environmental constraints so as to adapt to restrictions on the volume of greenhouse gas
emissions. Response to environmental constraints has grown from a factory-level activity to a
company-level initiative. In the future, companies will need to collaborate with each other in
further improving efficiency.
Source: Survey by METI (December 2009)
[Column: Improving Energy Conservation and Resource Conservation Through Cooperation Between
Businesses]
In October 2009, Sharp Corporation began running a plant in Sakai City, Osaka Prefecture, which has better
energy and resource conservation abilities than the Kameyama plant. The industrial complex where this new
Sakai plant is located is home to 19 companies, including businesses manufacturing liquid crystal panels, and
through the results of this accumulation of companies and collaboration between them, higher efficiency
production, such as improved energy and resource conservation, is being achieved.
For example, the company is undertaking centralized management of energy use within the complex through
its Integrated Energy Center, which it is using to curb inefficient energy use and to promote the horizontal
deployment of measures to prevent inefficient energy use. Moreover, within the complex, in order to reduce
work-in-process and completed product inventory, production management information such as production
plans and production volumes in each process is used in the unified management of the supply chain as a
whole, from the upstream component and material plants to the downstream assembly plants, and
incorporated into the unique automatic transfer system between each process. Furthermore, as well as
introducing LED lighting developed by the company into all its plants, it plans to install solar photovoltaic power
generation facilities on the roof of each of its plants, and is also ensuring thorough implementation of energy
conservation measures in its plants.
33
[Chart 2-56 Status of Enhancement of Management System to Respond to
Environmental Constraints]
7.6
7.6
5.5
4.8
4.2
3.8
3.3
3.8
4.2
3.3
3.3
36.6
35.0
28.4
32.7
29.7
28.5
27.7
24.7
22.6
23.2
18.1
41.8
44.3
50.8
46.3
49.7
51.9
52.1
53.6
52.1
56.1
57.0
7.8
6.8
7.5
9.6
9.3
8.7
9.6
9.4
10.6
8.0
10.4
6.2
6.4
7.9
6.7
7.1
7.2
7.3
8.4
10.5
9.3
11.2
0 20 40 60 80 100
Technology for reducing weight and size
Technology for extending product life
Control technology
Technology for saving energy and
resources in production process
Recycling technology
Re-use technology
Technology for reducing waste
Waste disposal technology
Technology for alternative materials
development
Detoxing technology
New energy technology
Superior Slightly superior Equal Slightly infeior Inferior
(%)
8.5 10.2 6.0 7.6 6.4 7.82.0 3.8 1.6 3.4
44.535.2
33.1 33.744.4
34.3
21.2 20.9 25.5 24.5
32.0
34.0 47.8 40.1
38.0
38.9
49.4 43.3
51.442.8
9.710.3
10.810.8
8.812.6
22.420.6
17.0
19.8
5.3 10.22.4
7.82.4 6.4 4.9
11.54.5 9.5
0
20
40
60
80
100
Large
companies
SMEs Large
companies
SMEs Large
companies
SMEs Large
companies
SMEs Large
companies
SMEs
Technology
development capability
（R&D/product
development)
Adaptability to
standardization
Technological
capability for energy
and resource saving
production process
Marketing capability Human resource
development/retention
Superior Slightly superior Equal Slightly inferior Inferior
(%)
(Strengths of Japanese manufacturing industries in relation to resource and environmental
constraints )Japanese manufacturing industries are superior to foreign competitors in terms of technology development
capability (R&D and product development) and technology that contributes to energy and resource saving in
production processes. In particular, they excel in the field of technologies for energy- and resource-saving
products, which are intended to resolve problems specific to Japan, a resource-poor country, and which play an
important role in environment-related industries. Such technologies include those that reduce product weight and
size and extend the operating life of products. On the other hand, Japanese manufacturing industries are inferior
in terms of marketing power, which is necessary for expanding sales of energy- and resource-saving products,
and capability to develop and retain human resources.
34
[Column: Promotion of energy conservation through
innovation in power devices]
Mitsubishi Electric Corporation has the world‘s top
share in the power device market, having made
contributions widely in industrial fields covering from
industrial instruments to train cars. The company
succeeded in the world's first demonstration of a SiC
inverter in January 2006. In November 2009, the
company introduced a technology to further reduce
power loss and proved a 90% reduction of power
loss compared to conventional Si inverters. Due to a
wide range of potential applications, the SiC inverter
technology is expected to be utilized in various
products, including air-conditioning equipment,
power conditioners for solar photovoltaic systems,
and elevators.
Prototype inverter using SiC, on which hopes are
pinned as a power device material.
[Column: Processing technologies of Monodzukuri
industries that contribute to the enhancement of energy
and resource conservation]
Kunimoto Industry Co., Ltd. has succeeded in developing
the "innovative tube forming system," which leads to the
automation of manufacturing processes such as bending,
tube expansion, forming, and wall thickness control. This
system combines the company's various original
processing technologies to lessen the previous 17
processes into nine, and reduces energy input and
personnel costs, and also significantly enhances
production efficiency, by adopting a streamlined production
method. The company invests 10% of its total sales in
R&D activities to further develop technologies and apply
developed technologies in response to customers' needs.
Efforts to meet severe specifications for the lightening and
upgrading of products required by downstream
manufacturers have eventually worked to enhance energy-
saving and resource-saving effects of final products. The
company's performances can be cited as some of the best
practices that show success in promoting the return of
products manufactured overseas into the Japanese market
through active technology development.
鋳造品をパイプ材に置換（ターボオイルタンク）
A product made by replacing the cast components with
pipes by integral molding, which was successful in reducing
weight and saving energy and resources
(n=1,873)
Source: Survey by METI (December 2009)
[Chart 2-57 Japanese Companies‘ Superiority in Energy and
Resource Efficiency Compared with Foreign Competitors]
(Large companies n=253) (SMEs n=1,887)
Source: Survey by METI (December 2009)
[Chart 2-58 Japanese Manufacturing Industries‘ Superiority in
Technology for Improving Energy and Resource Efficiency]
Technology for
developing
energy- and
resource-saving
products
Replaced a cast component
with a piping (turbo oil tank)
63.2
31.6
30.1
8.1
68.2
32.8
33.2
3.7
71.8
26.7
23.1
6.6
0 10 20 30 40 50 60 70 80
Lack of personnel related to R&D and product development
Lack of personnel related to operation of production
facilities
Lack of personnel related to maintenance of production
facilities
Others
(%)
Materials
producing
industry (n=295)
Parts producing
industry (n=974)
Finished goods
producing
industry
(n=1,406)
39.5
34.1
19.3
17.5
16.1
12.6
8.1
48.5
35.1
17.1
19.6
17.2
8.9
2.9
48.6
28.8
25.1
20.4
11.0
13.9
5.2
0 10 20 30 40 50
Not fully grasping market
needs
Lack of sufficient production
capacity
(personnel/equipment)
Lack of sufficient advertizing
activity
Intensifying market
competition due to entry of
more domestic companies
Intensifying market
compeittion due to entry of
more foreign companies
Lack of sufficient distribution
channels
Others
(%)
Materials producing
industry (n=295)
Parts producing
industry (n=974)
Finished goods
producing industry
(n=1,406)
45.3
38.2
15.6
4.2
12.6
0 10 20 30 40 50
Relocating personnel from other divisions
Increasing new hires
Borrowing personnel from affiliated
companies
Gaining personnel through M&A
Others
(%)
(Challenges to overcome before spreading environment-related technologies and environment-
friendly products)
Although Japan is superior in environment-related technologies, it is difficult to apply many of such Japanese
technologies in other countries without modification due to differences in the market environment and cost
constraints. In order to enable Japanese manufacturing industries to exercise their strengths in an immature
environment-related market, it is necessary to find demand by identifying the needs through consulting activity, for
example, and establish a stable profit base through activities such as maintenance work.
Meanwhile, Japanese manufacturing companies face a shortage of personnel necessary for R&D programs
intended to improve resource productivity. In addition, there is also a shortage of personnel capable of performing
facility operation and maintenance work necessary for spreading environment-related technologies and
environment-friendly products. Although Japanese manufacturing companies are dealing with these shortages by
relocating personnel from other divisions and increasing new hiring, it is urgent for them to foster and secure such
personnel, either in Japan or abroad.
[Column: Overseas expansion through energy-saving
diagnosis by Yokogawa Electric Corporation]
Yokogawa Electric Corporation led the world in
developing a distributed control system, which conducts
control and monitoring of production facilities of plants.
The company has already sold more than 20,000 systems
all over the world and is highly evaluated in the global
markets. The company started to provide an energy-
saving diagnosis service by combining the control
technology that it has accumulated over the years and
global trends in the needs for energy and resource
conservation. This energy-saving diagnosis service,
which aims to reduce energy consumption by way of
enhancing production efficiency at factories, utilizes
various software tools to reveal the operation status of
production facilities so as to detect and eliminate waste.
Through this service, the company helps customers
realize energy and resource conservation without making
large scale investment, and supports their improvement
activities continuously. Thus, overseas expansion of
Japan's manufacturing industry through consultation in
the field of software, which is expected to lead to the
introduction of facilities and equipment for enhancing
energy and resource conservation at local production
sites and to the discovery of potential renewal demand,
will be considered more and more important in the future. Source: Survey by METI (December 2009)
35
(n=1,907)
Source: Survey by METI (December 2009) Source: Survey by METI (December 2009)
[Chart 2-59 Challenges to Overcome before
Expanding Market for Products/Technologies related
to Energy and Resource Efficiency Improvement]
[Chart 2-60 Human Resource Challenges related to
Products and Technologies for Energy and
Resource Efficiency Improvement]
[Chart 2-61 Responses to Lack of Human
Resources related to Products and Technologies for
Energy and Resource Efficiency Improvement]
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and Business Situation(2009)‖
36
The difficult situation may continue even in the phase of economic recovery. However, it will be
necessary to take measures to foster skilled workers necessary for a future expansion of business
operations.
Section 1 Employment strategy and development of monodzukuri
human resources for sustainable recovery
Chapter 3 Employment strategy and development of human
resources for sustainable recovery
1. Employment-related problems facing monodzukuri industries
In fiscal 2008, slightly more than 70% of companies suffered declines in the value of sales and
shipments compared with the previous year. In particular, the ratio of companies whose sales were
less than 70% of the previous year‘s level came to around 20%. In the production-use machinery
industry and business-use machinery industry, the ratio of such companies came to around 30%.
At companies that depended mainly on foreign markets, the decline in the value of sales and
shipments was more conspicuous than at companies that depended mainly on the domestic market.
Concerning the question about the trend in the value of sales and shipments over the past three
years and the prospects for the next three years, ―a downturn followed by a gradual recovery‖ was
the most common response, cited by about 40%. However, nearly 40% in the steel industry cited ―an
upturn followed by a downturn‖ and about 25% in the electric machinery and equipment
manufacturing industry cited ―(a downturn followed by) a crawl along the bottom,‖ indicating
divergence in the ability to recover from recession.
[Chart 3-1 Value of Sales and Shipments in FY2008 (by industry; FY2007=100]
[Chart 3-2 Value of Sales and Shipments in FY2008 (by major market; FY2007=100)]
[Chart 3-3 Changes in Sales and Shipment Value for Past 3 Years and Next 3 Years (estimate by industry)]
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and Business Situation(2009)‖
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and Business Situation(2009)‖
19.7
21.8
28.6
52.6
50.9
47.6
25.6
25.5
21.4
2.2
1.8
2.4
0% 20% 40% 60% 80% 100%
Dependent mainly on domestic market
Dependent equally on domestic and foreign markets
Dependent mainly on foreign markets
less than 70% 70-100% More than 100% No reply
2.1
0.0
0
4.9
0.0
8.1
41.8
50.0
42.3
6.6
3.1
8.1
15.6
6.3
25.2
17.6
37.5
7.2
10.7
3.1
9.0
0.7
0.0
0
0% 20% 40% 60% 80% 100%
Total
Steel industry
Electrical machinery manufacturing industry
Upturn/strong performance Downturn followed by recovery Downturn followed by moderate recovery
Medium-level performance Crawl along bottom Upturn followed by downturn
Downturn/weak performance No reply
20.4
28.6
28.1
52.1
46.5
37.6
25.2
21.5
28.1
2.2
3.6
6.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All industries
Production -use machinery industry
Business-use machinery industry
Less than 70% 70-100% More than 100% No reply
74.3
31.3
51.5
31.2
33.3
58.1
6.6
28.9
28.7
9.7
14.3
7.1
0 20 40 60 80
Restrictions on overtime work
Increase in holidays
Resrtictions on new employment
Reallocation of workers
Training in times of sales slump
Temporary closure
Loan of workers to other firms
Adjustment via employment of external workers
Dismissal of temporary, seasonal, part-time, contract workers
Invitation for early retirement
Dismissal of employees
None of above measures taken
(%)
55.4
36.9
25.6
22.1
14.1
31.1
37.9
42.4
40.3
24.0
9.8
15.9
22.6
25.6
35.3
7.6
15.4 9.5
0% 20% 40% 60% 80% 100%
Product prices have gone down
Competition in terms of product quality has intensified
The needs of customers have diversified
Technological innovation has speeded up
The life cycle of products has become shorter
True To some extent Not clear Not really Not at all No reply
37
[Chart 3-4 Environmental changes from 3 years ago to date]
[Chart 3-5 Employment Adjustment Measures Implemented over the Past 1 Year (multiple replies allowed)]
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)‖
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and
Business Situation(2009)‖
With regard to specific challenges facing Japanese companies, nearly 90% of
companies pointed out that ―product prices have gone down‖ (including companies
that recognized a slight drop) compared with three years before, about 75% said
that ―competition in terms of product quality has intensified,‖ and about 70% pointed
out that ―the needs of customers have diversified.‖ It is evident that Japanese
companies find themselves in a difficult situation where, while product prices have
dropped, quality competition has become more severe.
Regarding specific employment adjustment measures implemented over the past
one year, the survey indicated that most such measures were intended to maintain
jobs: 75% put curbs on overtime work and the ratios of companies that temporarily
closed factories and those which put curbs on new employment exceeded 50%. On
the other hand, the ratios of companies which dismissed employees and those
which invited early retirement came to around 10%.
14.4
16.2
15.6
25.1
38.9
58.1
52.7
46.1
39.5
20.4
25.7
21.6
3.0
1.8
3.01.2
2.40.6
1.2
1.2
0.0
0.6
0.0
1.8
1.8
2.4
1.8
3.0
0% 20% 40% 60% 80% 100%
Managers/supervisors
Cross-trained workers
Technically skilled workers
Highly skilled workers
In shortage Slightly in shortage Appropriate Slightly in excess
In excess Not necessary in general No reply
13.4
13.8
14.7
19.4
37.0
53.9
49.0
45.7
40.7
27.5
30.7
28.6
5.9
2.2
3.2
1.6
1.7
0.4
0.6
0.2
0.2
1.0
0.7
2.8
1.0
1.2
1.1
1.6
0% 20% 40% 60% 80% 100%
Managers/supervisors
Cross-trained workers
Technically skilled workers
Highly skilled workers
In shortage Slightly in shortage Appropriate Slightly in excess In excess Not necessary in general No reply
38
Regarding excess or shortage of skilled workers, about 40% of companies felt that there was an
appropriate number of managers/supervisors and another 40% or so recognized a slight shortage of
such personnel, while slightly more than 10% perceived a shortage. As for cross-trained workers,
technically skilled workers and highly skilled workers, around 50% recognized a slight shortage, some
30% felt that there was an appropriate number of such workers, and just over 10% perceived a
shortage. These ratios were similar among companies that suffered a conspicuous decline in the
value of sales and shipments in fiscal 2008 compared with the previous year.
Companies expect skilled workers to have a high skill level. At the moment, 40–50% of companies
acknowledge that the capabilities of skilled workers have not reached a satisfactory level.
2. Capabilities to be expected from monodzukuri workers and development
of human resources
Source: ―A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)‖
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)‖
[Chart 3-6 Current excess or shortage of regular skilled workers]
[Chart 3-7 Excess or Shortage of Regular Skilled Workers
(at companies whose sales dropped more than 30% in fiscal 2008)]
[Chart 3-8 Evaluation of the Average Skill Level of Regular Skilled Workers]
Source: JILPT ―A Research about Human Resources Development of Technicians Under Changeable Economic and
Business Situation(2009)‖
0.6
0.6
1.3
2.2
6.0
4.8
8.3
11.9
39.4
43.0
41.2
36.8
41.4
39.9
36.4
31.5
10.9
8.7
10.0
8.9
0.6
1.7
1.7
7.2
1.1
1.3
1.0
1.5
0% 20% 40% 60% 80% 100%
Managers/supervisors
Cross-trained workers
Technically skilled workers
Highly skilled workers
Higher than expected Slightly higher than expected More or less what is expected
Slightly lower than expected Lower than expected There are no qualified personnel
No reply
75.6
45.0
44.4
29.8
26.5
22.4
17.7
12.3
1.0
50.0
51.3
33.4
26.0
41.2
30.8
24.3
19.8
1.2
0 50 100
Daily guidance given by superiors to subordinates
Systematic OJT
Job shift from easy to difficult job
Use of training provided by business partners, suppliers
Periodic in-house training
Use of training provided by public vocational training facilities
Encouragement of and support for self-education
Use of training provided by entities other than public vocational training facilities, etc.
Other
Now For the next 3 years
(%)
39
According to a survey on the types of the knowledge and skills that companies expect
from skilled workers, skills in individual fields alone are not valued much. The capability to
manage the whole production line, including knowledge and skills necessary for
rationalizing the production process, is valued.
On-the-job training (OJT) is the main education and training method. As for the prospects
for the next three years, the importance of off-the-job training (Off-JT), which is
implemented separately from routine work, is expected to grow.
Regarding measures taken to develop skilled workers‘ capabilities, nearly 70% of
companies were ―encouraging workers to make improvements and suggestions‖ and about
60% provided ―technical education,‖ indicating high expectations in these areas.
[Chart 3-10 Education and Training of Regular Skilled
Workers (multiple replies allowed)]
[Chart 3-11 Initiatives Aimed at Capability
Development (multiple answers allowed)]
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
[Chart 3-9 Knowledge and Skills Expected from Skilled Workers (multiple answers allowed)]
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
66.0
61.7
46.6
41.2
35.9
22.5
13.6
61.4
65.8
50.5
52.1
56.8
34.2
34.8
0 50 100
Encouraging improvement and
suggestions by regular skilled workers
Technical education for regular skilled
workers
Encouraging small group activities/QC
circles at production site
Encouraging exchange of views and
opinions as well as cooperation between
regular skilled workers and technical staff
Promotion of manuals and digitization of
skills
Participation of regular skilled workers in
designing and developing activities
Seminars for regular skilled workers to
stimulate their imagination
Initiatives currently being undertaken
Initiatives on which a greater emphasis will be placed in the next three years
(%)
53.8
29.4
27.8
26.7
21.2
12.3
10.5
8.0
0.3
0.8
0 20 40 60
Knowledge and skills to rationalize the production process
Knowledge and skills to maintain and improve equipment
Outstandingly high skills
Knowledge and skills concerning quality management, inspection and test
Knowledge and skills to process multiple production stages individually
Knowledge and skills to assemble and adjust
Programming of NC machinery and MC
Skills to set up changes of automatic machine
Operation of the measurement system
Others
(%)
13.8
2.9
5.0
2.8
1.5
35.1
13.2
28.9
18.5
15.5
31.2
39.7
57.2
56.7
66.0
13.0
28.2
5.6
15.5
11.7
5.1
13.3
0.6
3.9
2.8
1.8
2.6
2.7
2.6
2.4
0% 20% 40% 60% 80% 100%
Securing of time for training
Securing of a budget for training
Gathering of information on training
Securing of trainers and instructors
Securing of training facilities and equipment
Easier Slightly easier No change Slightly more difficult More difficult No reply
Intend to
increase
18.9%
Intend to
increase slightly
49.5%
Intend to keep
unchanged
28.1%
Intend
to
reduce
slightly
1.5%
Intend to reduce
0.1%
No reply
1.8%
72.4
57.9
70.9
61.1
0 20 40 60 80
Off-JT
Systematic OJT
FY2006 survey FY2009 survey
(%)
40
From the perspective of the relationship between human resource development and the
economy, in times of recession, securing funds for education and training is expected to
become difficult while securing time for such purposes is likely to become easy.
As for the actual implementation of education and training, reflecting the above-mentioned
causality, the ratio of companies that provided Off-JT training decreased slightly compared
with three years before and the ratio of companies that provided OJT in a systematic manner
increased slightly.
Around 20% of companies intend to increase education and training of regular skilled workers
and some 50% expressed the intention to slightly increase education and training, indicating
growing moves to devote efforts to education and training.
3 Future challenges and direction of employment and human resource
development
[Chart 3-12 Current Situation Compared with 3 Years Ago]
[Chart-3-13 Implementation of Off-JT and OJT (manufacturing industries, regular workers)]
[Chart 3-14 Changes in the Time Spent on Training of Technical Workers (Future Intention)]
(Relationship with the economy and medium-term strategy for human resource development )
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
Source: MHLW “Basic Survey of Human Resources Development” (2009)
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
Remarks 1: The wage comparison is made in terms of hourly regular wages.
2: The difference in the age mix was adjusted in the following way:
(1) Regarding the employment longevity mix, the age and employment longevity mixes in 1999 and 2004 were weighted so as
to keep the age mix for each year the same as the one for 2009.
(2) Regarding the wage ratio, the comparison was made between the regular wages for part-time workers by age that were
weighted in light of the age mix for regular workers and the regular wages for regular workers.
Source: MHLW “Basic Survey on Wage Structure”
36.6
33.0
21.1
21.0
17.7
14.9
4.8
0.4
27.5
3.2
0 10 20 30 40
Assigning a job according to workers' capabilities
Offering terms and conditions according to job performance
Encouraging workers to participate in small group activities and QC circles at
production site
Limiting the scope of assignment to certain areas
Placing emphasis on implementation of education and training programs, and
assisting the implementation of such programs
Keeping the number of workers below a certain level
Placing emphasis on developing mid- to long-term career prospects, and assisting
their career development
Others
There are no qualified personnel at the moment
No specific issues are being taken into consideration in the use of workers
(%)
[Chart 3-15 Issues being considered in the use of non regular technical workers at manufacturing sites
(multiple answers allowed) ]
41
With regard to the use of non-regular skilled workers, some companies give consideration in
terms of job placement and employment terms and conditions for such workers; for example,
nearly 40% said they assigned a job according to the workers‘ capabilities and slightly over
30% offered terms and conditions according to their job performance. However, only 5%
devoted efforts to support for their career prospects.
As for the employment longevity of part-time workers, those who had worked for five years
or longer increased to account for more than half. However, the wage gap between such
workers and full-time workers has narrowed little over the past 10 years in terms of hourly
regular wages.
It is necessary to develop career prospects for non-regular workers in general from a
medium- to long-term perspective by appropriately evaluating their vocational capabilities
and by making use of their capabilities as long as possible.
[Chart 3-16 Changes in the Mix of Part-Time Workers by Employment Longevity and in the Wage Ratio
Compared with Regular Workers (adjusted for the difference in the age mix)]
(Non-regular workers)
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
13.5% 14.4% 10.7%
22.8% 21.2%21.2%
16.6% 16.3%15.4%
47.1% 48.1% 52.7%
0%
20%
40%
60%
80%
100%
1999年 2004年 2009年
0年 １～２年 ３～４年 ５年以上
73.8%71.7% 74.0%
賃金比率
20.8% 19.5% 20.1%
27.4% 27.1% 27.1%
16.1% 16.7% 16.9%
35.6% 36.8% 35.8%
0%
20%
40%
60%
80%
100%
1999年 2004年 2009年
0年 １～２年 ３～４年 ５年以上
68.5% 66.4%
70.5%
賃金比率
産業計 製造業Industry total Manufacturing industries
0 year Wage ratio1-2
years
3-4
years
More than
5 years
0 year Wage ratio1-2
years
3-4
years
More than
5 years
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
54.4
48.2
43.0
35.2
31.7
22.4
20.9
18.1
0 20 40 60
Quality of skilled workers
Product quality
Low cost
Product development capability
Marketing/sales operations
Short delivery time
Machinery and production
equipment
Flexibility to meet the requirements
by the ordering company
(%)
23.7
19.6
13.1
11.4
15.0
6.2
3.9
3.2
50.2
45.5
37.5
38.1
33.0
22.5
22.6
17.7
20.0
30.1
38.3
42.4
36.1
39.2
46.9
45.8
3.8
3.1
9.0
6.5
12.3
20.0
22.4
25.1
0.4
0.4
1.1
0.7
2.4
9.4
2.6
5.5
1.8
1.5
1.0
0.9
1.1
2.6
1.6
2.7
0% 20% 40% 60% 80% 100%
Flexibility to meet the requirements by the ordering company
Product quality
Short delivery time
Quality of skilled workers
Machinery and production equipment
Product development capability
Low cost
Marketing/sales operations
Excellent Fairly excellent Standard Slightly inferior Inferior No reply
42
Among the factors most frequently cited as a strength compared with other companies of a
similar size in the same industry are those related to the improvement and the exercise of the
capabilities of skilled workers, such as: flexibility to meet detailed requirements imposed by
the order-placing company, which was cited by slightly over 70%; product quality, cited by
about 65%; and short delivery time and the quality of skilled workers, both of which were
cited by some 50%.
As for factors to which companies plan to devote particular efforts for the next three years,
the quality of skilled workers was cited by around 55%, product quality by some 50%, low
cost by slightly more than 40% and product development capability by around 35%.
Among companies that regard China as the greatest threat in terms of competition, the ratio
of those that plan to place particular emphasis on the quality of skilled workers came to some
60%, higher than the ratio among companies that regard the United States, Europe or other
Asian countries as the greatest threat.
Compared with in other countries, the value of manufacturing skills has been well recognized
in Japan, with high levels of skills preserved and handed down from generation to generation.
In order to prevent short-term needs required by global economic competition from causing
the tradition of respecting monodzukuri to be neglected and the initiatives to improve the
capabilities of skilled workers to be weakened, it is desirable to devote efforts to the
development of human resources, particularly those that play the central role in the
manufacturing workplace, and to maintain Japan‘s advantage over other countries in
manufacturing skills.
[Chart 3-17 Evaluation in Comparison with Other Companies of a Similar Size in the Same Industry]
(Issues related to competitiveness and skills)
Source: JILPT “A Research about Human Resources Development of Technicians Under Changeable Economic and Business
Situation(2009)”
[Chart 3-18 Factors to which Companies Plan to
Devote Particular Efforts for the Next 3 Years]
[Chart 3-19 Regions/Countries Where Companies plan to Devote
Particular Efforts to Improvement of Quality of Skilled Workers
(regions/countries regarded as the greatest threat as a competitor)]
54.4
52.2
35.3
60.2
40.9
38.5
40.0
37.5
0 20 40 60 80
Total
Japan
U.S./Europe
China
South Korea
ASEAN
Other Parts of Asia
Other
(%)
○ Identification of training needs and establishment of the
curriculum course
*Identification of needs through questionnaire and hearing
surveys
*Analysis of needs based on a lifelong vocational capability
development system
*Establishment of the curriculum course based on a
curriculum model
○ Implementation of effective training
*Guidance that takes account of the key points of the
curriculum
*Implementation of training in accordance with the learning
status of trainees (e.g., provision of supplementary lectures)
*Provision of career consulting
○ Evaluation of effects and identification of problems
*Identification of trainees‟ learning level
*Identification of the effects of training brought to companies
that employed trainees (or companies that sent employees as
trainees) and problems
○ Revision of the training curriculum and course
*Identification of needs for additions and revisions in light of
problems (lack of expertise, skills, etc.) and revision of the
training curriculum and course.
P
A
C
D
(Example) Revision of the training curriculum of the technical
metalwork course based on the identification of the training needs
○The curriculum was revised to suit the circumstances of the workplace
in light of the increasing needs from employers for the combination welding technique, which is used for the welding of thick steel pipes and
quality management skills.
66120
9141
76
103
8015053
52 133 80
23.4%
38.3% 32.1% 32.6%
0
20
40
60
80
100
050
100150200250300350
06 07 08 09
Number of courses whose curriculum was revised
Number of abolished training courses
Number of newly established training courses
The revision/abolition rate(%)
(FY)
43
Section 2 Skill development measures related to monodzukuri
As there are few private-sector vocational training organizations in the manufacturing sector,
including the automobile, electrical equipment, and machinery industries, public vocational
training is expected to play a particularly important role.
Public vocational training programs are designed to train workers in the use of the kind of
sophisticated machinery which has been used at manufacturing sites so as to make them
highly skilled workers capable of serving as the core human resources of monodzukuri
industries in the future. In addition, the programs provide training for existing workers through
training courses related to advanced knowledge and skills in a wide range of advanced fields,
such as adaptation to new technologies and improvement of production processes.
Regarding training of people who have quit their jobs, about 30% of the existing programs of
training courses are revised or abolished each year in light of technological trends, local
worker needs, the results of surveys on and hearings with business groups by taking account
of the division of roles between public and private training organizations and local
governments.
[Chart 3-20 Review of Training Curriculum Based on the PDCA Cycle]
(Public job training)
Finding a job
without training
Hello Work , etc.
Care
er c
onsu
lting
Ev
aluatio
n b
y co
mp
any
Capability
evaluation
Select a job or set the direction of career
Gu
idin
g to
tra
inin
g
Fo
rmally
hire
d b
y c
om
pan
y th
at
pro
vid
ed tra
inin
gH
ired
by
oth
er co
mpanie
s
Hello Work , etc.
Career co
nsu
lting
(Scheme of training)
Classroom lectures at education and training
institutions, etc. + Practical training in a
corporate site
(Type of training)
(1) Employment-type training
→Companies hire trainees and provide training.
(In-house/outside instructors offer lectures to
provide knowledge.)
*Subsidies for companies are available in
employment-type training.
(2) Commission-type training
→ Contracted special training schools provide
training.
(Corporate training is implemented by
recommissioning the program to companies
cooperating with the training program.)
*Life security benefits are provided to those
receiving commissioned training during the
training period.
Use results for job
search
Job-Card
creation (2)
Fill in employment record,
education and training
background, qualifications
Confirm one‟s wish
regarding employment and
training by a Career
Counselor
Job-Card creation (1)
Vocational Ability Development Program
44
While it is regarded as necessary to provide each worker with an opportunity to improve
his/her capabilities and create a society in which each worker can exercise their capabilities,
some ―freeters‖ and other types of workers have no option but to work as non-regular workers,
as they cannot be employed as full-time workers because of a lack of opportunities to improve
their capabilities so as to qualify for a full-time job.
The ―Job-Card system‖ has been launched to help ―freeters‖ and those who have little
experience of working as full-time workers obtain a full-time job by (i) raising their awareness
about work through comprehensive career counseling and identifying the issues they face in
career formation, (ii) providing such people with an opportunity for practical vocational training
comprising job training at companies and lectures and (iii) summarizing companies‘ evaluation
of their job performance and their job experiences in a Job-Card.
The New Growth Strategy (Basic Policies) (adopted upon a cabinet decision on December 30,
2009) seeks to further promote the Job-Card system by setting the goal of increasing the
number of Job-Card holders to 3 million.
[Chart 3-21 Job-Card System]
(Job-Card System)
[Column: Messages from Meisters – Creation of a workplace
that fosters Meisters and promotes their activity]This project is intended to contribute to improvement of the
working terms and conditions for qualified skilled workers (whohave passed the national technical skills test) bycommunicating the importance of their superior skills widelyamong companies and the general public through thepublication of excellent examples of human resourcedevelopment and treatment of workers and the use of qualifiedskilled workers for the development and manufacturing ofproducts.<Example>
Castec Inc. manufacturers custom-made core pins andinserts for die cast molds.
The company has continued to improve its financial resultsfor the past several years, with its workforce increasing fromaround 80 ten years ago to more than 150 now. It is a veryyouthful company, with an average employee age of 33.1 andaverage employment longevity of 6.6 years. Because of a rapidincrease in the number of young employees, the companyonce faced problems such as: that the organization wasweakened by the cronyism resulting from the narrow age gapbetween team leaders and subordinates; that team leaders‘cannot win the trust of subordinates due to uncertainty overtheir levels of expertise and skills; and that team leaders do nothave the confidence to give guidance to subordinates becausethey do not have comprehensive knowledge about materials,electricity and maintenance, despite their know-how aboutmachinery operation. Castec started to make earnest efforts tohave employees take the national technical skills test after itsdirector in charge of general administrative affairs was told byan official of another manufacturer located in the sameindustrial zone that it was natural for technical workers to passat least Level 2 of the test.
Thereafter, the company made it a policy to require teamleaders or employees with higher positions to pass the nationaltechnical skills test so as to differentiate their skill levels fromthose of subordinates and disclose the qualifications acquiredthrough the test. In principle, an employee cannot be promotedto the position of team leader unless they pass at least Level 2of the national technical skills test. In addition, the company setthe goal of having all employees pass Level 2 in the field ofmachine processing, requiring employees with three years ormore of work experience to take the test. Castec is makingactive efforts to train employees and bear costs related to thetraining of employees at a machinery maker and a polytechniccenter and to in-house lectures provided by invited lecturers,including lecture fees, traffic expenses and wages.
A total of 38 employees have passed the national technicalskills test, and they have been allocated throughout Castec‘smanufacturing department as managing supervisors orworkers. Because the levels of their knowledge and skills havebeen confirmed by the national technical skills test, they giveguidance to subordinates with confidence. Moreover, theyhave become able to actively express their opinions atmeetings.
Ten years ago, the goal for the company‘s employees was topass Level 2, and now, they aim to achieve Level 1.Employees‘ efforts to improve the level of their own skills haveled to an improvement of the technological level of the entirecompany. Employees, particularly skilled workers, havebecome actively involved in business process improvementand cost reduction efforts, thereby creating a strong companywith an organization that thinks for itself.
45
The national technical skills test is a national certification program to test and certify the
skills of workers based on certain criteria. It is designed to motivate workers, including
monodzukuri workers, to acquire skills, and it has contributed to improving the social status of
workers.
Over the past five years, the number of people who took this test with regard to the types of
jobs vital to manufacturing industries has increased, particularly among specialized senior
high school students. More and more young people are expected to strive to acquire skills if
the national technical skills test is promoted, for example by recommending that students
take the test.
[Chart 3-22 Changes in the number of people who
took the national technical skills test]
(National technical skills test)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
04 05 06 07 08
Metal heat
treatmentMachine
processingMetal pressing
Finish
Machine
inspectionMachine
maintenanceElectronic
machine assemblyElectrical
machine assemblySemiconductor
manufacturingPlastic molding
(People)
(Year)
46
To realize a ―manufacturing-oriented nation,‖ it is important to foster an atmosphere of
respect for skills among all people, from children to adults, and to recognize anew the
importance of developing monodzukuri industries and developing human resources that
support it.
(Promotion of skill improvement through various competition events)
[Column: Outstanding Skills－National Skills Competition]
[Column: Raising Awareness －Youth Monodzukuri Skills Competition －]
In order to raise young people‘s awareness about
monodzukuri skills and train them into fully skilled
workers, it is necessary to give them a goal for skills
acquisition and an opportunity for skills competition.
Therefore, the Youth Monodzukuri Skills
Competition is held for people aged 20 years or
younger who are striving to acquire skills at
vocational capability development facilities,
recognized vocational training facilities and technical
senior high schools so as to give them goals and
encourage them to improve their skills, thereby
increasing the number of young skilled workers.
[A participant competing in the event for operating a lathe]
[Column: Successful performance at the International
Youth Skill Olympics in Calgary]
The National Skills Competition has been held
every year since 1963 in order to provide young
skilled workers in Japan with goals to strive
toward through the opportunity to compete with
each other in terms of the level of skills on a
nationwide scale. The 47th National Skills
Competition was held in October 2009, mainly in
Hitachi and Hitachinaka Cities, Ibaraki Prefecture,
with 983 contestants participating in events for 40
types of jobs.
[A participant competing in the event for
operating a milling machine]
[Participant in the competition
(automotive sheet metal job)]
The International Youth Skills Olympics has
been held biannually in order to promote
vocational training and improve the level of skills
in the participating countries through international
competition among young skilled workers and to
promote international exchanges and friendships
between young skilled workers. Japan has
participated in it since 1962. In the International
Youth Skill Olympics held in Calgary, Canada in
September 2009, Japanese workers won gold
medals for six job types, and Japan ranked third in
the medal haul with a total of 14 gold, silver and
bronze medals.
64 64 64 64 62 62 64 63
0
70
02 03 04 05 06 07 08 09
(Unit: 10,000 people)
0
2
4
6
8
10
12
89 91 93 95 97 99 01 03 05 07 09
Un
emp
loy
men
t ra
te (
lin
e g
rap
h)
0
5
10
15
20
25
30
35
40
Rat
e o
f n
on-r
egu
lar
emp
loy
men
t (b
ar g
rap
h)15-24 years old
25-34 years old35-44 years old15-24 years old25-34 years oldAll ages
Chapter 4 Current State of, and Challenges in relation to, the Education,
Research and Development to Support the Basis of Monodzukuri
Section 1 Development of monodzukuri human resources and enhancement of
career education and vocational education
In Japan, it has become clear that young people are facing difficulties in making a smooth
transition from attending school to becoming a member of society and obtaining a job, as
shown in the increase in the number of people employed as non-regular workers and the lack
of progress in reducing the early job-leaving rate.
1 Social changes and the importance of career education and vocational education
In order for Japan‘s manufacturing industries to overcome their various challenges and
achieve sustainable development amid the ongoing significant changes in the domestic and
foreign economies, the development of human resources that support the industries and the
promotion of science and technology that create innovation are essential.
(Status of transition from school to society and workplace)
[Chart 4-1 Unemployment rate among young people and changes in rates of non-
regular employment (by age group)]
*Unemployment rates are taken from the ―Labour Force Survey,‖ Ministry of Internal Affairs and Communications (MIC)
Statistics Bureau; rates of non-regular employment are taken from the ―special survey of the Labour Force Survey‖
(February survey) and the ―Labour Force Survey (survey results)‖ (January–March survey), MIC Statistics Bureau
[Chart 4-2 Changes in the Number of Unemployed Young People]
*The unemployed young people as referred to herein are unemployed people who are aged between 15 and 34 and
neither perform domestic work nor are enrolled in school.
Source: ―Labour Force Survey,‖ MIC Statistics Bureau
47
(%)
(%)
46.5
33.9
26.5
26.3
7.9
6.2
1.96.1
50.3
69.0There is a problem
【Specific problems】
Shortage of training instructors
Lack of time for training
Drain of trained personnel
Failure to attract promising personnel
Lack of financial resources for training
Lack of appropriate training institutions
Having no idea of how to train personnel
Lack of benefits from training due to innovation and
complex procedures for operational changes
Others (%)
In recent years, the need for advanced knowledge and skills has grown. In addition, the
industrial and employment structures are undergoing significant changes.
Amid the increasingly severe employment situation for young people, new graduates will have
fewer opportunities to develop their vocational capabilities once they have become non-regular
workers or if they have proceeded to higher education or remain unemployed. As a result, new
graduates will remain trapped in a long period of uncertainty.
In-house education and training based on the premise of long-term employment is also a
notable feature of the employment practice in Japan. However, more than 70% of companies
also acknowledge the challenge they face in human resource development, citing a lack of
training instructors and time. Meanwhile, as non-regular workers have limited opportunity for in-
company education and training compared with regular workers, they face difficulty improving
their skills through their jobs.
(Background (1) Change in the industrial and employment structures)
[Chart 4-4 Specific Problems related to Human Resource Development Recognized by Companies]
Source: MHLW, ―Basic Survey of Human Resources Development‖ (2009)
[Chart 4-3 Rate of Job Separation within 3 Years among New Graduates]
*The above figures represent those for students that graduated in March of each year
Source: MHLW ―Survey on Job Separation among New Graduates
*Multiple replies were allowed
39.8 41.9 46.4 47.5 46.4 46.4
15.3 14.014.7 15.9 14.5 13.5
9.4 9.39.2 8.8
8.7 7.4
0
20
40
60
80
87 92 97 02 04 06
First grade Second grade Third grade
(%)
65.264.5
72.169.770.3
67.3
Junior high school graduates
19.8 19.324.6 25.3 25.0 23.8
14.6 11.6
13.8 13.9 14.612.5
11.9
8.8
9.1 9.4 9.88.2
0
20
40
60
80
87 92 97 02 04 06
(%) Senior high school graduates
46.2
39.7
47.5 49.548.544.4
13.6 13.9 17.4 18.9 19.7 19.8
12.3 10.712.1 12.5 12.8
12.59.3
10.111.0 10.3
13.6
11.5
0
20
40
60
80
87 92 97 02 04 06
(%) Junior college graduates
33.9
44.839.7
42.438.4
42.9
11.1 13.8 15.0 15.1 14.6
9.17.6
10.4 10.8 11.8 11.08.3
6.6
8.38.9 9.7 8.6
9.50
20
40
60
80
87 92 97 02 04 06
University graduates(%)
34.732.5
36.6
28.423.7
34.2
48
(Background (2) Current Status of Schools)
[Chart 4-6 Changes in the School Enrollment Rate]
Source: MEXT, ―Basic Survey of Schools‖
[Chart 4-5 Implementation of Systematic OJT and Off-JT]
Source: MHLW, ―Basic Survey of Human Resources Development‖ (2009)
49
The rate of enrollment in senior high schools has risen to about 98% and the rate ofenrollment in higher education institutions has climbed to about 78%. As a result of theincreased school enrollment, it has become a challenge to consider how education shouldmeet the diverse learning needs of students.
Senior high schools have served as the driving force behind Japan‘s social development; theannual number of graduates from such schools who obtained jobs used to exceed the numberof higher education graduates who did so. In particular, specialized vocational high schoolshave played a significant role in the development of human resources that support thedevelopment of Japan‘s monodzukuri industry by providing practical training closely related towork.
Universities are intended to contribute to the development of society as the centers ofacademic studies by fostering a high level of intellectual capacity and expert skills, pursuingtruth, creating new knowledge and spreading the results thus achieved throughout society.
Colleges of technology, which provide five-year courses that feature specialized educationprograms centering on experiments and practical training are appreciated for their fostering oftechnical workers with practical skills and creativity.
Specialized training colleges foster personnel with sufficient skills to become ―monodzukuri‖experts by taking advantage of their institutional flexibility to provide a diverse range ofvocational training in response to social needs.
Senior high school
enrollment rate
Higher education
Enrollment rate
College :50.2%
Junior college :6.0%College of
technology
(4th grade)
:0.9%
Specialized
colleges:20.4%
College/junior college
Enrollment rate
38.5 37.9
43.3
55.7
45.9
25.5
33.7
47.0
39.3
44.7
26.0 26.4
41.0
32.6
26.022.4
37.040.7
48.8
16.9 17.3 16.1 15.219.3
21.5
13.4
30.8
22.3 23.1
12.610.8
22.626.8
22.7
9.412.0
18.0 18.1 19.6
40.6
0.0
10.0
20.0
30.0
40.0
50.0
60.0
All indust
ries
cover
ed
Const
ruct
ion
Man
ufa
cturi
ng
Ele
ctri
city
/gas
/hea
t
supply
/wat
erw
ork
s
Info
rmat
ion/c
om
munic
atio
ns
Tra
nsp
ort
/post
al s
ervic
es
Whole
sale
/ret
ail
Fin
anci
al s
ervic
es/insu
rance
Rea
l es
tate
/lea
sing
Aca
dem
ic r
esea
rch/tec
hnic
al
serv
ices
Hote
l/re
stau
rant
Lif
e-re
late
d
serv
ices
/ente
rtai
nm
ent
educa
tio/lea
rnin
g
Med
ical
/wel
fare
ser
vic
es
Oth
er s
ervic
es
30-4
9 p
eople
50-9
9 p
eople
100-2
99 p
eople
300-9
99 p
eople
1,0
00 o
r m
ore
Regular workers
Non-regular workers
(FY)
Ed
uca
tio
n/l
earn
ing
Lif
esty
le-r
elat
ed
[Chart 4-7 Status at Industry-related Courses (senior high schools)]
Source: MEXT, ―Basic Survey of Schools‖ (Job opening to application ratios are figures based
on a survey by the National Association of Principals of Technical Senior High Schools)
[Chart 4-8 Status at Engineering-related Departments (universities)]
Source: MEXT, ―Basic Survey of Schools
[Chart 4-9 Status at Colleges of Technology]
Source: MEXT, ―Basic Survey of Schools‖
(Background (3) Social awareness about vocational education)
Lack of awareness about vocational education has been pointed out as a problem for the entire
society. Although social awareness about vocational education does not change rapidly, in light
of the circumstances in which today‘s children and young people find themselves, it is necessary
to raise awareness about vocational education throughout society.
50
FY04 FY05 FY06 FY07 FY08
Number of graduates 102,722 97,232 93,901 88,431 85,244
Number of employed graduates 55,492 55,960 56,415 55,426 53,562
Ratio of employed graduates 54.0% 57.6% 60.1% 62.7% 62.8%
Successful job search rate 96.4% 97.3% 97.5% 98.2% 98.0%
Number of graduates employed in manufacturing industries 32,021 33,413 34,877 34,035 33,539
Ratio of graduates employed in manufacturing industries 57.7% 59.7% 61.8% 61.4% 62.6%
Number of graduates employed for production processes
and labor work40,358 41,419 42,044 41,750 40,337
Ratio of graduates employed for production processes
and labor work72.7% 74.0% 74.5% 75.3% 75.3%
Job opening to applicant ratio 3.7 4.6 5.3 6.8 6.8
FY04 FY05 FY06 FY07 FY08
Number of graduates 97,931 96,675 96,153 95,216 93,684
Number of employed graduates 54,496 56,274 57,708 57,841 54,578
Ratio of employed graduates 55.6% 58.2% 60.0% 60.7% 58.3%
Number of graduates employed in manufacturing industries 18,151 19,339 20,175 20,511 19,811
Ratio of graduates employed in manufacturing industries 33.3% 34.4% 35.0% 35.5% 36.3%
Number of graduates engaging in specialized and technical
jobs40,838 42,715 44,694 45,289 43,457
Ratio of graduates engaging in specialized and technical jobs 74.9% 75.9% 77.4% 78.3% 79.6%
FY04 0FY05 FY06 FY07 FY08
Number of graduates 10,061 10,140 10,207 10,160 10,474
Number of employed graduates 5,415 5,457 5,546 5,502 5,610
Ration of employed graduates 53.8% 53.8% 54.3% 54.1% 53.6%
Successful job search rate 97.7% 98.7% 98.7% 99.4% 99.2%
Number of graduates employed in manufacturing industries 2,844 2,986 3,097 3,081 3,207
Ratio of graduates employed in manufacturing industries 52.5% 54.7% 55.8% 56.0% 57.2%
Number of graduates engaging in specialized and technical
jobs4,887 4,935 5,036 5,077 5,171
Ratio of graduates engaging in specialized and technical jobs 90.2% 90.4% 90.8% 92.3% 92.2%
Job opening to applicant ratio 12.5 15.6 20.1 23.8 24.1
92.6
79.7
73.5
57.7
76.8
40.7
32.0
26.6
27.9
94.0
81.2
75.6
66.0
77.3
50.5
36.4
36.6
33.4
81.2
75.8
78.7
73.5
51.6
66.3
51.6
52.8
41.4
75.3
71.3
77.2
72.6
55.3
71.2
52.6
51.6
44.6
Want to do study which may be useful
for future work
Want to do technical research
Want to acquire broad knowledge
Want to get a university degree
Want to get a qualification or
accreditation
Afraid of going out into society
immediately
Want to have free time
Everyone goes to university
Recommended by teacher or family
member
While at elementary/junior high school While at senior high school After being admitted to university Have not yet considered
(Background (4) Changes seen among children and young people）
As a problem related to the maturity of children and young people, it has been pointed out that they
lack interest in, motivation about and commitment to work as well as a sense of purpose and
responsibility and that the level of basic skills necessary for them to become professionals, such as
communications ability, interpersonal relationship skills and basic social manners, has declined.
It has also been pointed out that in line with an increase in the ratio of people enrolled in higher
education institutions, young people have grown increasingly inclined to postpone the selection and
decision of their future course of life and career and that there are increasing numbers of people who do
not try to advance to higher education or find a job and of those who advance to higher education
without a clear idea of their future career patch or a clear sense of purpose.
The current difficulty in the situation from attending school to becoming a member of society and
obtaining a job is due to the creating of uncertainty about the future in the eyes of children and young
people, fueling worry among them. This also affects their interest in and motivation about learning at
school and prevents them from adequately forming the habit of learning at school.
In addition, it may be necessary for schools to provide support to unemployed young people, such as
students who failed to smoothly transition from attending school to becoming a member of society and
obtaining a job. In order to support such people, various organizations will need to cooperate with each
other, and it will be necessary to consider what kind role schools can play in this respect.
Source: Japan Association of Corporate Executives, ―Questionnaire Survey on Corporate Employment and Education‖ (May 2008)
73.3
43.8
24.0
24.0
74.6
57.5
46.4
42.4
68.9
59.6
65.2
55.7
70.0
67.6
80.2
66.7
Lack of sufficient
academic performance for
targeted school
No idea of own aptitude
No idea of what job to
choose
No idea of which field to
study
Elementary/junior high school
Senior high school
After entering university
Not yet considered
[Chart 4-11 Cause of Worry When Deciding Career
Course (broken down by when consciousness about
work emerged)]
[Chart 4-12 Reasons for going to university (depending on the
time when consideration was given to future occupation)]
Source: ‖2005 survey sponsored by METI – Survey of University Students Looking Back at
Their Post-High School Graduation Plans,‖ Benesse Educational Research and
Development Center
1 Eagerness/motivation 77.2% Eagerness/motivation 70.5% Eagerness/motivation 78.6% Eagerness/motivation 77.0%
2 Ability to act/implement 49.5% Ability to act/implement 45.3% Spirit of cooperation 59.3% Spirit of cooperation 59.3%
3 Spirit of cooperation 43.4% Spirit of cooperation 38.2% Ability to act/implement 38.6% Ability to act/Implement 37.8%
4 Logical thinking 21.7%Expert knowledge/research
subjects 28.0%Ability to express own
ideas/make presentations17.2%
Expert knowledge
/research subjects 23.0%
5 Problem-solving ability 18.1% Logical thinking 23.6%Willingness to acquire new
Knowledge/skills16.6%
Ability to express own
ideas/make presentations17.0%
University graduates Graduate school graduates Junior college graduates Specialized college graduates
[Chart 4-10 Capabilities Especially Valued in Employment Selection of New Graduates]
51
Students‘ failure to smoothly transition from attending school to becoming a member of society and
obtaining a job is due to a structural problem involving a complex set of factors, including changes in the
circumstances surrounding schools, society, children and young people, and those in their own attitudes.
With this as a premise, it is necessary to sort out challenges related to school education.
Regarding senior high schools, many challenges have arisen particularly in ordinary courses, which
have been increasing. Students wishing to advance to higher education, most of whom are enrolled in
ordinary courses, have a strong tendency to postpone the selection and decision of their future course of
life and career. In addition, there is a recent trend that students enrolled in ordinary courses face a
difficult employment situation compared with those enrolled in other courses. Various surveys have
shown that education provided in ordinary courses tends to have little relevance to society and work.
Now that the rate of enrollment in higher education institutions has almost reached 80%, there are
diverse types of students. There are challenges from the perspective of career formation as some
students enroll without an adequate awareness about their future social and working life.
Meanwhile, some workers wish to study at school in order to acquire necessary knowledge and skills.
To meet such needs, schools will need to expand the learning opportunity for workers.
(Challenges related to school education)
[Chart 4-13 Motives for entering high school (by course type) ]
Source: Japanese Association for Study of Career Guidance, ―Comprehensive Survey on Actual
Circumstances concerning Career Guidance at Junior and Senior High Schools‖ (commissioned by MEXT)
47.7
15.9
22.9
21.2
24.2
8.7
20.6
13.6
6.8
59.5
12.1
12.1
32.8
2.5
5.0
5.0
18.8
7.6
33.7
20.5
35.9
7.3
50.0
13.1
39.2
7.4
5.9
Suited to one's academic performance level
Expected to help to develop one's unique traits
Expected to enable one to study what one likes
Advantageous for higher education enrollment
Advantageous for obtaining a job
Offering prominent education programs
Enable acquisition of knowledge/skills useful for targeted job
Having respectable tradition and culture and good reputation
No particular reason Overall Ordinary course Vocational Course
52
In the field of monodzukuri, too, it is important to promote social and vocational independence
for young people by developing human resources in light of the employment situation and the
need for human resources in individual business sectors. In order to develop a diverse range of
human resources suited to monodzukuri, it is important to develop human resources in ways to
make good use of the respective resources of individual schools; for example, some schools
may continuously train personnel for production processes and labor work who engage in such
work as the production of components and the assembly of finished products, while others
foster engineers with expert skills who can adapt to advanced technology.
In the development of human resources suited to monodzukuri, the challenge is to motivate
students to proactively acquire, through school education, a wide range of knowledge and skills
and the ability to perform various tasks by using them and, on the other hand, to foster, through
in-company and external lessons and training, personnel equipped with advanced knowledge
and skills suitable for their respective jobs based on basic capabilities necessary for achieving
social and vocational independence.
(Problems related to human resource development in the manufacturing sector)
Active job opening to applicant ratio
2004 2005 2006 2007 2008 2009
Specialized/technical
jobs (*) 1.79 2.30 2.60 2.28 1.70 0.59
Production processes
/labor work (*) 1.30 1.39 1.59 1.46 1.00 0.24
*The above data concern jobs related closely to monodzukuri.
Source: MHLW, ―Statistics on Job Security‖
[Chart 4-15 Domestic Procurement Ratio of Parts and Materials]
Source: White Paper on Manufacturing Industries 2009
[Chart 4-14 Active Job Opening to Applicant Ratio in the Manufacturing Sector
(job openings for permanent jobs, including part-time jobs]
53
Electric machinery,
etc.
Transport
machineryGeneral machinery
Japan
U.S.
Electric machinery,
etc.
Transport
machineryGeneral machinery
Japan
U.S.
At elementary and junior and senior high schools, carefully-planned and systematic initiatives
are under way to enable students to proactively choose their career course in accordance with
the new Courses of Study. In particular, vocational experience programs are implemented
especially at junior high schools. In fiscal 2008, 96.5% of all public junior high schools
implemented such programs. Vocational experience provides students with a rare opportunity
for interaction with adults other than their parents and teachers, and it is expected to have very
significant educational benefits, such as improving communications skills, enhancing capability
to proactively choose a job, fostering strong job consciousness and stimulating motivation for
learning.
As part of the initiatives related to monodzukuri, elementary schools seek to develop students‘
formative ability by encouraging them to make expressions with the full use of the functions of
their hands and other body parts in such subjects as Science, and Art and Handicraft. Junior
high schools have students acquire basic knowledge and skills related to monodzukuri through
practical and experience-based lessons in the subject of Industrial Arts and Home Making. At
the same time, junior high schools provide guidance related to monodzukuri as necessary in the
science subject and attach increased importance to lessons that encourage students to express
their feelings and ideas with the use of materials and tools in the Fine Arts subject. In addition,
elementary and junior and senior high schools are promoting experience-based lessons related
to monodzukuri in the Period for Integrated Studies as part of educational activity that takes
advantage of individual schools‘ creative and resourceful ideas.
(Initiatives at elementary and junior and senior high schools）
(2) Ongoing monodzukuri education initiatives
[Career Education Centering on Understanding of and Contributions
to the Local Community]
Fushimi Junior High School in Kyoto provide experience programs
in each grade in accordance with the level of students‘ maturity.
In the first grade, students, divided into groups, visit local
companies and interview company officials and publish newspapers
carrying articles that summarize such matters as the contents of the
companies‘ businesses and top managers‘ thinking.
In the second grade, students look for companies willing to provide
them with vocational experience and complete a five-day experience
program.
In the third grade, student groups present plans for activities and
events based on their experiences in the first and second grades.
The plans so far presented include those for a year-end sales
campaign event intended to invigorate a local shopping street and
product development and public relations activities related to such
local products as arame seaweed and the kyo-gawara tile.
The experience programs help students better understand local
industries and traditional cultures that support their life and improve
their communications and information-gathering skills.
[Students conducting a questionnaire
survey on a local shopping street]
54
[the Period for Integrated Studies that Foster Love for the Home
Town and Encourage Reflection on Life in the Home Town]
(Wazuka Junior High School in Kyoto Prefecture‘s Soraku Broad-
Area)
Wazuka Junior High School in Wazuka Town has provided
students with experience in producing tea (Wazuka tea) in the
Period for Integrated Studies subject so as to encourage them to
love and take pride in their home town.
In the first grade, students learn about the traditional way of tea
production and study the history and culture of tea. In the second
grade, they learn about the current system of tea trade, including the
distribution system, while engaging in the production of tea. In the
third grade, they reflect on the future of Wazuka tea and consider
their future course of life in relation to the future of Wazuka tea and
Wazuka Town.
As children participate in local production activity and local people
support their learning, children learn from the lives of local neighbors
and reflect on their own future.
[Students engaging in tea tree
cultivation]
[Example of Career Education based on Practical Experience-based
Lessons such as Monodzukuri Lessons in Industrial Arts and Home
Making Subject]
The Industrial Arts and Home Making subject at junior high schools
is intended to have students acquire basic knowledge and skills
related to materials processing, energy conversion, information
processing, clothing and cooking through monodzukuri lessons, and
to develop the ability and readiness to use such knowledge and
skills to enrich their lives with their creative and resourceful ideas.
By making bookends, robots and bags and cooking light meals
themselves, students feel the pleasure of work and the delight of
accomplishing a task and recognize anew the admirable skills of
people who engage in jobs related to their lessons. In addition, they
acquire the important traits that support monodzukuri, such as
dedication to preciseness, patience, sensibility about beauty, and
teamwork, as well as the traditional Japanese spirit of ―mottainai,‖
which leads to the establishment of a sustainable society.
In the 10th ―National Junior High School Education Fair for
Creative Monodzukuri,‖ students who had survived the regional
qualifying rounds across Japan fully demonstrated their remarkable
skills.
[Junior high school students doing
maintenance work for a robot]
[Junior high school student seriously
engaged in precision woodworking]
55
(1) Initiatives in ordinary courses at senior high schools
Ordinary courses at senior high schools are implementing initiatives that take account of students‘
future career prospects, such as inviting company officials in charge of personnel management and
people with expert knowledge and experience. Internship programs have also become widespread, with
57.3% of ordinary courses (full-day courses) of public senior high schools implementing such programs
in fiscal 2008.
Since fiscal 2007, surveys and studies have been under way on how to enhance career education and
how to utilize personnel with expert knowledge concerning career education in ordinary courses of
senior high schools research through the ―Survey Research on the Desirable Status of Career
Education at Senior High Schools‖.
In relation to monodzukuri-related initiatives, the government is promoting experience-based learning
in the Crafts Production programs of the Art subject and the Period for Integrated Studies as part of
educational activities that take advantage of individual schools‘ resourceful ideas.
(2) Initiatives in specialized courses
MEXT is promoting the "Become a Specialist (super specialized senior high schools)" project, which
provides support to unique education programs implemented by specialized high schools in
collaboration with universities and research institutions to enable the acquisition of advanced
techniques and skills, such as research programs related to new monodzukuri education (32 schools
were designated as super specialized senior high schools in fiscal 2009).
In addition, MEXT, together with METI, is implementing the project to foster personnel that support
local industries, which aims to develop human resource development programs comprising long-term
practical training of students at companies, practical lessons given by corporate engineers at schools
and joint research activity between schools and companies (a total of 56 areas were designated for the
implementation of this project in fiscal 2009).
Moreover, specialized high schools are implementing various distinctive initiatives in cooperation with
local industries, such as introducing unique subjects and courses, including an ―industrial Meister‖
course and a disaster prevention/mitigation engineering course.
(3) Initiatives in integrated courses
Integrated courses have introduced clusters of interconnected optional subjects (field-specific and
comprehensive clusters of optional subjects) so as to enable students to engage in coherent learning
and study subjects related to their future career course. Individual schools have established various
types of subject clusters that reflect the unique characteristics of local industries as well as the schools‘
unique features. Subject clusters related to monodzukuri include engineering and mechatronics clusters,
which comprise industry-related specialized subjects.
In addition, in order to raise students‘ awareness about their future career course and enable them to
acquire knowledge and skills that form the basis of their future vocational life, integrated courses have
introduced the industrial society and human beings subject, which should in principle be studied by all
students. This subject comprises various educational activities, such as lectures and speeches by
professionals, visits to companies and inspection of higher schools to which students aim for.
(Initiatives at Senior High Schools)
[Project to Foster Personnel that Support Local Industries]
This project has been implemented jointly by MEXT and METI
since fiscal 2007 so as to enable technical high schools to cooperate
in developing human resources that support local monodzukuri
industries. At prefectural and municipal technical high schools in 29
regions across Japan, there are ongoing projects in which students
are trained under internships at local companies or under the Dual
Training System for about 20 days in order to acquire professional
skills, and there are projects in which students receive instructions
directly from skilled company workers.
[Students engaging in practical training]56
(4) Enhancement of Science and Technology and Science and Mathematics Education
Now that global competition in the science and technology field has grown more intense than ever
and the benefits of science and technology are utilized in every corner of society, it is an urgent
challenge to enhance science and mathematics education, which forms the basis of science and
technology.
In the Science subject under the new Courses of Study, MEXT has taken such improvement
measures as enhancing the contents of study programs and securing sufficient time for
observation and experiment programs, writing of reports and nature experience from the viewpoint
of developing students‘ ability to adapt to international activity and promoting a smooth transition
from elementary to junior and senior high schools.
In addition, MEXT is seeking to increase students‘ motivation for learning and fostering an
inquiring mind in the context of science and technology in real society through such initiatives as
the ―Super Science High School (SSH)‖ project, which implements advanced science and
mathematics education, and the ―Science Partnership‖ project, which supports learning programs
implemented by high schools in cooperation with universities and research institutions. Moreover,
MEXT is improving science education facilities, including equipment used at schools for
observation and experiments, in a systematic manner in accordance with the Science Education
Promotion Act.
[Super Science High School (SSH) Project]
Fukushima Senior High School in Fukushima Prefecture
has established a science exploration class, which provides
lectures and experiment lessons in school-designated
subjects, such as ―SSH Exploration,‖ and which allows
students to conduct guided research in the fields of their own
interest.
As part of guided research activity, the physics and
structural mechanics team is tackling the research theme of
making a mock-up bridge comprised of light materials which
can bear the weight of people. In preparation for the drafting
of a blueprint of the bridge, the team conducted a weight-
loading experiment using a simulation software program and
calculated the strength of the force that is applied to each
section of the bridge.
[Mock-up bridge completed by students]
57
Schools for special needs education provide guidance related to career education and vocational
education to students with visual impairment, hearing impairment or intellectual disability, as well as
students with physical disability or health impairment, in a similar way to elementary and junior and senior
high schools while taking special care in accordance with the type and level of disabilities of individual
students.
For example, students with intellectual disabilities are trained so as to develop a readiness to participate
in society on their own by improving knowledge and skills necessary for workers and fostering the concept
of work and occupation through monodzukuri-related experienced-based programs and practical lessons
in the workplace that are provided in collaboration with local communities and local industries, mainly in
the ―occupation/home economics‖ subject at the junior high school level and the ―occupation‖ subject at
the senior high school level.
In addition, in such subjects as ―integrated studies‖ and ―special activity,‖ individual schools are
implementing initiatives related to vocational education and career education as part of educational
activities that take advantage of their own resourceful ideas.
Moreover, the Courses of Study for schools for special needs education, which were revised in March
2009, (1) have established a new subject specialized on ―welfare‖ for schools for students with intellectual
disabilities and (2) prescribes that schools for special needs education should actively provide
opportunities of work experience in cooperation with local communities and industries and labor-related
organizations so as to enhance the vocational education with a view to enabling such students to achieve
independence and social participation.
(Initiatives at Schools for Special Needs Education)
[Career and Vocational Education at Schools for Special Needs
Schools]
(School for Special Needs Education in Osaka Prefecture, named
―Tamagawa Koto Shien Gakko‖)
The School for Special Needs Education, named ―Tamagawa Koto
Shien Gakko,‖ comprises only an upper secondary school
department and focuses on vocational education, with the
educational goal of ―developing mental richness and fostering
students who seek to achieve social independence by being
engaged in a job.‖
This school provides a monodzukuri course (the industrial
foundation and food production fields), a welfare and gardening
course (the welfare fields and gardening fields) and a distribution
service course (the backyard services and office services fields).
Among its 30 study hours per week, 11 are allotted to specialized
subjects of individual courses and two are allotted to the common
subjects of cleaning and sales.
In the industrial foundation field of the monodzukuri course,
students manufacture various goods, including bulletin boards and
bookends, in practical training concerning woodwork and metalwork.
In the food production field, students make cookies, buns, jams and
miso paste using the same cooking instruments as the ones used at
stores.
Through initiatives like the ones above, this school seeks to
enable students to acquire professional knowledge and skills and
foster the recognition of work and occupation.
[Students making cookies]
58
Colleges of technology foster monodzukuri engineers with practical skills and creativity through a five-
year course starting after graduation from junior high school. As colleges of technology have a good
reputation, the application-to-enrollment ratio reached 1.8 in 2009 and the job opening-to-applicant ratio
for their graduates in the same year stood at 24.1.
The education curriculum of colleges of technology is designed so as to smoothly combine general
education and specialized education, such as experience-based programs like experiments and
practical training and internship programs.
Meanwhile, two national colleges of technology in each of four regions – Miyagi, Toyama, Kagawa and
Kumamoto – underwent restructuring, including reorganization and enhancement of specialized courses,
in order to diversify the range of subjects available while maintaining economies of scale, and to achieve
higher levels of science and technology and strengthen industry-academia collaboration in response to
the advance of science and technology.
(Initiatives at colleges of technology)
[Long-Term Internship for College of Technology Students]
Ishikawa National College of Technology is dispatching a total of
112 students over a four-year period to companies for a three-month
internship.
About 80% of the host companies are locally-based ones in a
diverse range of business sectors. During the three months of the
internship, students tackle practical tasks, such as learning
production technology, collecting test data, developing software
programs and integrating work. In some cases, students contributed
to practical work, for example by conducting a functional evaluation
of carbide alloy and even publishing the results at an academic
convention and by developing an image recognition software
program. The internship program enables the college to foster
students with a comprehensive set of skills acquired through their
cooperation with corporate engineers, while companies expect the
internship to invigorate the workplace with the creativity of students.
[Pre-internship guidance ]
[Meeting to report on Internship results]
[Competition of Ideas: The Robot Contest between
National Colleges of Technology from Across Japan (Robocon)]
This is a nationwide annual educational even that has been held
since 1988, in which students from colleges of technology compete
with each other in ideas and technology, and which provides the
opportunity for them to experience the fun of making robots based on
their own ideas and with their own hands and to recognize the
importance of coming up with new ideas and share the delight of
monodzukuri.
In the 22nd contest held in 2009 with the theme ―Dancin‘ Couple,‖
each team demonstrated a collaborative performance of two robots.
About 4,000 people visited Ryogoku Kokugikan to watch the contest,
cheering the robot performance incorporating unique ideas and
technology developed by the 25 teams of students who had survived
the regional qualifying rounds.
[Robot Contest]
[Robots performing at the contest]
59
[Washingtonia Palm Tree-Pruning Robot]
The Washington palm tree, which is planted widely in the southern
Kyushu region, provides scenery typical of a tropical country.
However, withered branches hanging from the tree undermine the
landscape, and if left unattended, could injure people or cause
property damage when they fall off. Therefore, the tall tree requires
periodic pruning work, which is a dangerous operation due to the
height involved.
Kagoshima National College of Technology won the top award in a
student venture business contest organized by the Kagoshima
Industry Support Center and co-developed a pruning robot with four
local companies. This robot eliminates the need for a special vehicle
for high-altitude operation and enables a small group of workers to
complete the pruning work in a short period of time.
[Washingtonia Palm Tree-
Pruning Robot]
60
[Examples of Initiatives at Specialized Training Colleges]
○ Hokkaido High-Technology College (prosthetist and orthotist
course)
Prosthetists and orthotists are professionals who contribute to
collaborative medical care with doctors and physical therapists by
making and adjusting prosthetics and orthotics and fitting them to
patients. Prosthetists and orthotists are required to acquire the skills
not only to make prosthetics and orthotics but also to provide mental
care for patients suffering from the grief of losing limbs due to
accidents and diseases. For a long time, Hokkaido has been
inconvenienced by the absence of training schools for prosthetists
and orthotists, and there have been requests from patients, makers of
prosthetics and orthotics and young people aspiring to become
prosthetists and orthotists for local training of such personnel. The
prosthetists and orthotists course, which opened in 2006 in response
to such requests, seeks to foster prosthetists and orthotists who have
expert skills and who can empathize with patients.
○ NAGOYA KOUGAKUIN COLLEGE (robotics creative course)
Many industrial robots are involved in the process of automobile
production, and engineers in charge of production and maintenance of
robots are required to have not only technical and human relationship
skills but also the ability to adapt to new technologies. The robotics
creative course of Nagoya Kougakuin College is promoting the
development of human resources that contribute to the promotion of
local industries and meet the needs of local companies by holding
various robot-related events and implementing a long-term internship
program while maintaining cooperation with the New Industrial
Division of the Aichi Prefectural Government‘s Department of Industry
and Labor. and local companies.
[Practical training for making a
mold of an artificial leg]
[A student engaging in the
development of software for a
walking robot]
Specialized training colleges, intended to foster professionals who support local industries, are
implementing initiatives to improve practical expert knowledge and skills in cooperation with local
industries in the field of monodzukuri.
MEXT is promoting the development of monodzukuri human resources by using specialized training
colleges to provide young people and others who quit jobs early in their working career with learning
opportunities and by implementing the ―Plan to Provide Intensive Support to Education at Specialized
Training Colleges,‖ which conducts intensive research and development activity at designated schools
with regard to education programs suited to the development of human resources for local industries
and in new fields.
In addition, MEXT, in cooperation with senior high schools, is continuing to implement the ―The
Vocational Education Promotion Plan to incorporate Specialized Training Colleges and Senior High
Schools,‖ which explains to senior high school students example cases of knowledge, skills and
qualifications necessary for obtaining a job and which provides opportunities for career education such
as vocational experience lessons.
(Initiatives at Specialized Training Colleges)
61
In response to the need for the creation of universities with unique characteristics and the
strengthening of international competitiveness, it is important to improve the quality of university
education and develop human resources capable of playing an active role across national borders.
Therefore, in order to systematize education programs at universities, ensure the quality of and the
international applicability of education programs, the targets for the effects and achievements of learning
and the core curriculum are being considered and drawn up by a panel of experts.
Regarding the field of engineering in particular, in order to further enhance the training of technical
workers, the panel of experts on practical training of technical workers was established, and the panel is
considering measures to develop capabilities necessary for technical workers and ensure their quality.
MEXT is also implementing the ―Project to Develop Human Resources with Practical Skills through
Industry-Academia Collaboration: Fostering of Monodzukuri Technical Workers,‖ which is intended to
foster engineers with advanced knowledge and skills that may bring innovation to the field of
monodzukuri through the joint development and implementation of education programs by universities
and local communities and industries.
Meanwhile, in an increasing number of cases, universities and colleges of technology are using the
accreditation system for education of technical workers. Under this accreditation system, the Japanese
Accreditation Board for Engineering Education (JABEE) grants accreditation to technical worker
education programs implemented by universities and other institutions. By fiscal 2008, accreditation was
granted to 413 education programs.
(Initiatives at Universities)
[Chart 4-16 Status of Accreditation of Education Programs for Technical Workers]
Universities
Colleges of
technology
Academies with
quasi-university
status
TotalMaster‘s degree
courses（including 1st
stage doctoral
courses)
Undergraduate
courses
Number of
accreditati
ons
granted
Number of
accredited
schools
Number of
accreditati
ons
granted
Number of
accredited
schools
Number of
accreditati
ons
granted
Number of
accredited
schools
Number of
accreditati
ons
granted
Number of
accredited
schools
Number of
accreditati
ons
granted
Number of
accredited
schools
FY01 ― ― 3 3 ― ― ― ― 3 3
FY02 ― ― 29 20 3 3 ― ― 32 23
FY03 ― ― 57 39 10 8 ― ― 67 47
FY04 ― ― 62 38 22 17 ― ― 84 55
FY05 ― ― 73 41 22 17 ― ― 95 58
FY06 ― ― 56 37 9 9 ― ― 65 46
FY07 2 2 17 14 2 2 ― ― 21 18
FY08 2 2 41 22 2 2 1 1 46 27
Total 4 4 338 214 70 58 1 1 413 277
(Note) Accreditation of master‘s degree courses started in fiscal 2007.
Source: Survey by MEXT
62
[Column: ―Monodzukuri Practical Education based on Industry-Academia
Collaboration through Follow-Up Type Internship‖ by Kyoto Institute of
Technology]
In this initiative, Kyoto Institute of Technology, Kyoto Shisaku Net
(group of small and medium-size processing companies) and product
developing companies that represent the Keihan region collaborate
closely with each other in developing a follow-up type internship program
by organically combining problem solving, practical design training,
internship and lectures. This internship program would enable students
to have first-hand experience of the actual monodzukuri process leading
up to the realization of their own product design in the form of a finished
product, thereby fostering personnel with creativity and a critical mind
and capable of looking at the monodzukuri process from a multi-faceted,
broad perspective.
In the ―practice of monodzukuri based on Industry-academia
collaboration,‖ which is the mainstay subject of this initiative, the
education program is designed so as to enable students to study the
whole of the monodzukuri process, from the beginning to the end, in a
comprehensive manner.
[Demonstration of a micro duct to
corporate engineers]
[Students learning how parts they
design are made at a processing
company]
[Column: ―Human Resource Development and Monodzukuri Project‖ by
Shinshu University]
This project was implemented in order to enable students to absorb
what they learned in lectures and experiments in ways directly linked to
the needs of companies by sending them to a ―monodzukuri skills
transfer center‖ operated by retired skilled technical workers so that they
can acquire practical skills that are not available through university
education; with the support of corporate technical workers, university
staff and advisors, students were recognized as having fully mastered
the skills engaged in research and development of technologies and
products required by companies.
This project is expected to help pass the sophisticated monodzukuri
skills of retired technical workers to new generations and lead to the
development of new technologies and products based on those skills.
[A student engaging in
monodzukuri using
processing skills learned from
retired skilled workers]
[A student learning advanced
processing skills from a retired
skilled worker]
63
(1) Management of the professional engineer system
The professional engineer system was established under the Professional Engineer Act, which
was enacted in 1957. This system is intended to maintain the appropriateness of business
processes such as planning, research, designing, analysis and testing concerning matters that
require advanced expert application capability related to science and technology, by granting
professional engineer qualification to personnel engaging in such business processes, thereby
contributing to the advancement of science and technology and the development of the national
economy. People who want to become a professional engineer must pass a national examination
in individual technology fields, such as Mechanical Engineering and Civil Engineering, and get
registered. As of the end of December 2009, 66,643 people were registered as professional
engineers and 23,809 people as associate professional engineers.
(2) Continuing professional development for engineers
MEXT provides Web-based self-education materials and a failure knowledge database in the field
of science and technologies. The education materials and the database assist engineers in
learning broad and basic knowledge including failure case examples. At the end of January 2010,
819 self-education lessons and 1,167 failure case examples were uploaded on the websites.
(Professional engineer system and Initiatives related to training of technical workers)
[Chart 4-17 Proportion of Professional Engineers in Technical Fields]
Source: Survey by MEXT (as of the end of December 2009)
64
Chemistry
1.8%Industrial
Engineering
2.0%
Water Supply & Sewerage
6.3%Electrical &
Electronics
Engineering
5.0%
Others
5.5%
Metals
1.4%
Mechanical
Engineering
5.0%
Information
Engineering
2.0%
Environmental
Engineering
3.2%
Comprehensive technical management
13.3%
Civil Engineering
45.4%
Agriculture
4.7%
Applied science
4.5%
3. Deliberation status of career education and vocational education
As it has become an urgent challenge to enhance career education and vocational education,
the Minister of Education, Culture, Sports, Science and Technology asked the Central Council
for Education in December 2008 to deliberate how career education and vocational education
should be implemented at schools in the future.
In response, the council‘s special subcommittee on career education and vocational education
first debated this matter with a focus on upper secondary education and higher education,
which represent the final stage in the transition to becoming a member of society and
obtaining a job, and it drew up a progress report on the deliberation of this matter in July 2009.
This report made the following recommendations regarding the basic future direction of career
education and vocational education.
(1) In order to have students acquire capabilities necessary for achieving social and vocational
independence in a systematic manner in compulsory education through higher education,
education programs should be improved and enhanced with priority placed on students‘
relationship with society and work from the viewpoint of career education.
(2) The significance of vocational education, which plays an important role in the prosperity of
Japan, should be re-evaluated, and vocational education should be improved in a systematic
manner and should focus more on practical training.
(3) Support for career formation should be enhanced from the viewpoint of lifetime learning so as
to enable people to improve their vocational capabilities by acquiring necessary knowledge
and skills or conducting an in-depth study whenever they like.
Since drawing up the progress report, the special subcommittee has held hearings with
relevant organizations and, at the education stage, while taking account of the results of the
hearings, it conducted further deliberation on such issues as social and vocational
independence, capabilities necessary for smooth transition from attending school to becoming
a member of society and obtaining a job.
Meanwhile, the working group on universities, which is deliberating the desirable status of
university education from the medium- and long-term perspective, drew up a progress report
on its deliberation in January 2010.
The report pointed out that it would be appropriate to establish a rule requiring the
development of a proper system for the provision of guidance related to social and vocational
independence by seeking organic collaboration between various organizations within
universities so as to enable students to improve their own qualifications after graduation and
acquire capabilities necessary for achieving social and vocational independence through the
implementation of educational programs, welfare and guidance. In response, the standards for
the establishment of universities and junior colleges were revised in February 2010 to include
a provision to the above effect.
65
Section 2 Promotion of R&D to enhance industrial capabilities
“ Monodzukuri technologies‖ contribute not only to the enhancement of international
competitiveness but also to improvements in the standard of living and resolution of problems
related to the people‘s lives, including safety and security, by creating new added-value for
products and processes. In order to spur innovation based on ―monodzukuri,‖ it will be
important to continue pursuing R&D concerning value-creating basic manufacturing
infrastructures by promoting R&D on advanced measurement and analysis technologies, and
equipment, and on very precise simulation technology, as well as by developing and utilizing the
most advanced, large-scale R&D infrastructures.
1 R&D of basic monodzukuri technologies
[Column: Development of Single Particle Analyzer]
A team led by Professor Masaaki Fujii at the Chemical Resources
Laboratory of Tokyo Institute of Technology is developing a solid
substance analyzer with the world‘s highest level of spatial resolution in
the Project to Develop Advanced Measurement and Analysis
Technology and Equipment. This analyzer is expected to contribute to
the fight against environmental pollution by enabling analysis of toxic
substances generated by factories and to the development of new
materials using nano-level control.
[Column: Nursing Care Robot ―RIBA‖]
RIKEN-TRI Collaboration Center for Human-Interactive Robot
Research, which was established by RIKEN and Tokai Rubber
Industries, Ltd., proceeded with research on ―RIBA,‖ a nursing-care
assistant robot, in a research program concerning the motion control
functions peculiar to animals. This robot can contribute to nursing and
welfare activities as it can perform the processes of picking a human
being up from a bed or a wheelchair, moving him/her to a different
location and putting him/her down.
[Column: Support for Nanotechnology Research through the
Nanotechnology Network Project]
The Nanotechnology Network project promotes cross-sectoral
research in a strategic and efficient manner by providing researchers
with opportunities to use cutting-edge nanotechnology research
facilities owned by universities and incorporated administrative
agencies across Japan, as well as advanced technologies and
knowledge. In one recent example of an achievement in this project, a
resin coil structure manufactured with the use of the fine-processing
support program contributed to the development of a prototype
generator using the low-frequency vibration energy found in the natural
environment. This generator is expected to replace the button cell
battery. Thus, the Nanotechnology Network is helping to open up a new
path of ―monodzukuri.‖
[Single particle analyzer]
[RIBA robot]
66
2 Promotion of R&D based on industry-academia collaboration
In order to promote cooperation between universities and the private sector, the Japan
Science and Technology Agency runs the Adaptable and Seamless Technology Transfer
Program through Target-Driven R&D(A-STEP). This program promotes ―seamless‖
implementation of research and development while setting optimum funding plans for activities
such as: ―seeds exploration,‖ which assesses commercial viability with a view to
commercializing promising research results achieved by universities; joint research projects
with the private sector for commercialization; and university-derived venture businesses, in
accordance with the specific nature of the needs and challenges involved in these activities.
In addition, there is a special tax measure that allows the deduction, from corporate and
income tax statements, of a certain proportion of research expenses for joint experimental
research by private companies and universities.
(Joint R&D by universities and companies and R&D for technology transfer)
10,728
13,020
14,75716,211
17,638
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
（Number of
programs）
2004 2005 2006 2007 2008
(Year)
15,23616,960
18,045 18,52519,201
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
（Number of
programs）
2004 2005 2006 2007 2008
(Year)
477
1283
2872
4390
5306
0
1,000
2,000
3,000
4,000
5,000
（Number of
permits)
2004 2005 2006 2007 2008
(Year)
[Chart 4-18 Number of Joint Research Programs
Undertaken by National, Public and Private
Universities and Private Companies]
Source: Survey by MEXT
Source: Survey by MEXT
[Number of Research Programs Commissioned
by Private Companies to National, Public and
Private Universities]
[Chart 4-20 Number of Permits for Patent Implementation]
67
Source: Survey by MEXT
Hamamatsu region in Shizuoka prefecture[Life Sciences, Information and Telecommunications,
nanotech materials]
Wide areas in Kansai region[Life sciences]Fukuoka/Kitakyushu/Iizuka
region[Telecommunications]
Wide area in Sendai region[Life Sciences, Information and
Telecommunications]
Whole regions in Nagano prefecture[Nanotech materials]
Kyoto and Keihanna Gakken region[Nanotech materials, environment]
Toyama/Ishikawa region[Life Sciences]
Second term
Global base creation-oriented
Wide areas in Tokai region[Nanotech materials,
environment]
Hakodate region[Life Sciences]
Yamaguchi region[Nanotech materials, environment]
Tokushima region[Life sciences]
Central region of Hokkaido with Sapporo and its vicinity at the centre
[Life Sciences, Information and Telecommunications]
Kurume region[Life sciences]
Industrial Cluster Projects (18 projects across Japan)
◇Tohoku MONODZUKURI Corridor(Manufacturing, medical-industrial partnership,
environment and IT)
◇Regional Industry Revitalization Project(TAMA, areas along the Chuo Expressway, Region of Tokatsu -
Kawaguchi – Tsukuba, Sanennanshin District, Northern Tokyo
Metropolitan Area and Keihin Area) (Manufacturing fields)
◇Metropolitan Bio Network (Biotechnology fields)
◇IT Venture Forum (IT fields)
◇Project to Create Manufacturing
Industry in Tokai Region(Manufacturing fields)
◇Tokai Bio - Factory Project(Biotechnology fields)
◇Project to Create Manufacturing
Industry in Hokuriku Region(Manufacturing and biotechnology fields )
◇Kansai Bio Cluster Project(Biotechnology fields)
◇Kansai Front Runner Project(Manufacturing and energy fields)
◇Environment Business KANSAI Project(Environmental fields)
◇Project to Form Next Generation Key Industries(Manufacturing, biotechnology and IT fields)
◇Project to Form Recycling - oriented and
Environmentally-friendly Society(Environmental fields)
◇Okinawa Industry Promotion Project(Biotechnology, health, environment and processed goods trade)
◇Shikoku Techno Bridge Plan(Manufacturing and health/biotechnology fields)
◇Kyushu Recycle and
Environmental Industry Plaza (Environmental fields)
◇Kyushu Silicon Cluster Project(Semiconductors)
◇Kyushu Bio Cluster Project(Biotechnology fields)
First Term (2001-2005)
～Start-up Period ～
Second Term (2006-2010)
～Development Period ～
Third Term (2011-2020)
～Sustainable Development Period～
Target ranges for cluster projects
◇Hokkaido Area Industrial Cluster Project(IT and biotechnology)
The creation of ―knowledge clusters‖ is being promoted under regional initiatives. Knowledge clusters
conduct R&D activities with core universities and other public research institutions in order to meet the
needs of companies, and they seek to attract human resources, information, and investment from other
regions and foreign countries by taking advantage of the results of R&D to advance regional industries,
develop new products, and improve services.
Since fiscal 2002, MEXT has been implementing the ―knowledge cluster initiative,‖ which promotes
the creation of internationally competitive, world-class clusters, and the ―City Area Program,‖ which is
intended to create clusters that may be small but have strengths based on unique local features. Since
fiscal 2001, METI has been supporting the establishment of industrial clusters in which small and
medium-size local venture businesses form a network of personal connections with universities,
research institutions and financial institutions and which launch new projects and create new industries
one after another.
(Promotion of regional R&D for strengthening of industrial capabilities)
[Chart 4-23 Industrial Cluster Projects in FY2009]
Source: Survey by MEXTSource: Survey by MEXT
Source: Survey by MEXT
Saitama / Central area (19)
Life sciences
Yokohama inland area (19)
manufacturing technology
Osaka central area (21)
Nanotech materials
Chiba / Tokatsu area (21)
Life sciences
Tounou Seibu area (20)
manufacturing technology
Nagaoka area (19)
Nanotech materials
Toyama Sanroku area (19)
Life sciences
Northern area of
Wakayaha prefecture (19)
Nanotech materials
Akita prefecture central area (19)
Life sciences
Southern Area of Lake Biwa (19)
Life sciences
Tokachi area (21)
Life sciences, environment
Hirosaki area (19)
Life sciences
Fukui Wakasa area (20)
Energy, environmentMutsu Ogasawara / Hachinohe area (20)
Information and telecommunications
Miyazaki Rinkai area (20)
Life sciences
Okinawa Engan Kaiiki area (20)
Life sciences
Mie / Ise Wangan area (20)
Nanotech materials, energy
Kansai Science City and its surrounding areas (20)
Life sciences, information and telecommunications
Hiroshima Keniki area (20)
Life sciences, manufacturing technology
Takamatsu area (20)
Life sciences
Nagasaki area (20)
Life sciences
Central Iwate prefecture / Kamaishi area (19)
Nanotech materials
Kazusa / Chiba area (21)
Life sciences
Southern area of Gifu prefecture (21)
Life sciences, information and telecommunications
Tsuruoka Shonai area (21)
Life sciences
Central and northern areas of Ishikawa prefecture (21)
Life sciences, manufacturing technology
Wakayama prefecture Kitakichu area (21)
Life sciences
Lake Shinji and Chukai area (21)
Nanotech materials
Ehime Prefecture Nanyo area (21)
Life sciences
Fukuoka Chikushi area (21)
Nanotech materials, environment, energy
The number on the right side of the name of the area indicates the year of project commencement.
Started in fiscal 2007 (5 regions)
Started in fiscal 2008 (7 regions)
Started in fiscal 2009 (3 regions)
Development oriented: 15 regions
Started in fiscal 2007 (5 regions)
Started in fiscal 2008 (4 regions)
Started in fiscal 2009 (6 regions)
General type: 15 regions
[Chart 4-21 Map of Knowledge Cluster Initiative
in FY2009] [Chart 4-22 Map of City Area Program in FY2009]
68
Chugoku/Shikoku Area
Kinki Area
Kyushu/Okinawa Area
Hokkaido/Tohoku Area
Kanto Area
Chubu Area
Implementation: 59 programs/67 institutions
Inte
rna
tion
al
Hokkaido University
Tohoku University
Distin
ctiv
e
Iwate University / Obihiro University of Agriculture and Veterinary Medicine (*)
Basic
Muroran Institute of Technology / Kitami Institute of Technology (*)
Yamagata University
Miyagi National College of Technology (*)
Inte
rna
tion
al
Hokkaido University
Tohoku University
Distin
ctiv
e
Iwate University / Obihiro University of Agriculture and Veterinary Medicine (*)
Basic
Muroran Institute of Technology / Kitami Institute of Technology (*)
Yamagata University
Miyagi National College of Technology (*)
Inte
rnatio
nal
The University of Tokyo
Tokyo Medical and Dental University
Tokyo University of Agriculture and Technology
Tokyo Institute of Technology
Keio University
Tokyo University of Science
Waseda University
Distin
ctiv
e
University of Tsukuba
Gunma University / Ibaraki University / Utsunomiya University / Saitama University (*)
Tokyo University of Marine Science and Technology
The University of Electro-Communications
Shibaura Institute of Technology
Tokai University
Nihon University
Research Organization of Information and Systems
Basic
Ochanomizu University
Aoyama Gakuin University
Soka University
Tokyo National College of Technology / Nagano National College of Technology (*)
IP Keio University （RIKEN, AIST）
Inte
rnatio
nal
The University of Tokyo
Tokyo Medical and Dental University
Tokyo University of Agriculture and Technology
Tokyo Institute of Technology
Keio University
Tokyo University of Science
Waseda University
Distin
ctiv
e
University of Tsukuba
Gunma University / Ibaraki University / Utsunomiya University / Saitama University (*)
Tokyo University of Marine Science and Technology
The University of Electro-Communications
Shibaura Institute of Technology
Tokai University
Nihon University
Research Organization of Information and Systems
Basic
Ochanomizu University
Aoyama Gakuin University
Soka University
Tokyo National College of Technology / Nagano National College of Technology (*)
IP Keio University （RIKEN, AIST）
Inte
rna
tion
al
University of Yamanashi / Niigata University (*)
Nagoya University (*)
Distin
ctiv
e
Nagaoka University of Technology / Institute of National Colleges of Technology (*)
University of Toyama
Kanazawa University (*)
Shinshu University (*)
Shizuoka University / Toyohashi University of Technology (*)
Mie University (*)
Japan Advanced Institute of Science and Technology
Basic
Hamamatsu University School of Medicine (*)
University of Shizuoka (*)
Toyama National College of Technology (*)
IP Nagoya University / Nagoya Institute of Technology (AIST)
Inte
rna
tion
al
University of Yamanashi / Niigata University (*)
Nagoya University (*)
Distin
ctiv
e
Nagaoka University of Technology / Institute of National Colleges of Technology (*)
University of Toyama
Kanazawa University (*)
Shinshu University (*)
Shizuoka University / Toyohashi University of Technology (*)
Mie University (*)
Japan Advanced Institute of Science and Technology
Basic
Hamamatsu University School of Medicine (*)
University of Shizuoka (*)
Toyama National College of Technology (*)
IP Nagoya University / Nagoya Institute of Technology (AIST)
Inte
rnatio
nal
Kyoto University
Osaka University
Nara Institute of Science and Technology
Distin
ctiv
e
Kobe University (*)
Osaka Prefecture University / Osaka City University
Ritsumeikan University (*)
Basic
Kyoto Institute of Technology (*)
Doshisha University
Bio
Kyoto University
Osaka University
Inte
rnatio
nal
Kyoto University
Osaka University
Nara Institute of Science and Technology
Distin
ctiv
e
Kobe University (*)
Osaka Prefecture University / Osaka City University
Ritsumeikan University (*)
Basic
Kyoto Institute of Technology (*)
Doshisha University
Bio
Kyoto University
Osaka University
Inte
rna
tion
al
Hiroshima UniversityD
istincti
ve
Okayama University / Tottori University (*)
Yamaguchi University
Basic
Kagawa University
Inte
rna
tion
al
Hiroshima UniversityD
istincti
ve
Okayama University / Tottori University (*)
Yamaguchi University
Basic
Kagawa University
Inte
rna
tion
al
Kyushu University
Distin
c
tive
Kyushu Institute of Technology
Basic
Saga University
Oita University (*)
University of Miyazaki (*)
Kurume University
Inte
rna
tion
al
Kyushu University
Distin
c
tive
Kyushu Institute of Technology
Basic
Saga University
Oita University (*)
University of Miyazaki (*)
Kurume UniversityNote: Asterisks denote institutions that implement the project in
collaboration with another institution(s).
The following projects have been additionally introduced in FY2009:
- Bio: Development of an environment for creation of bio ventures
- Intellectual Property (IP): Establishment of IP portfolio formation models
20 programs
/23 institutions
6 programs
/8 institutions
13 programs
/16 institutions
10 programs
/9 institutions
４programs
/5 institutions
6 programs
/6 institutions
As of July 7, 2009
International: 16programs/17 institutions
Distinctive: 22 programs/30 institutions
Basic: 17 programs/19 institutions
Bio: 2 programs/2 institutions
Intellectual Property (IP):
2 programs/3 institutions
In order to promote the transfer of research results from universities to private companies so
as to ensure that they lead to innovation in an effective manner, MEXT started the project for
strategic development of industry-university-government collaboration in fiscal 2008. In this
project, MEXT is strengthening systems for the strategic creation, management and use of
research results (support for the acquisition of basic patent rights abroad and the
establishment of a system for using intellectual properties through inter-university
collaboration) and is supporting universities involved in industry-academia-government
collaborative activities (promotion of the return of research results to industries and local
communities) through its industry-academia-government collaboration coordinators.
In addition, in light of the results of the review of projects by the Government Revitalization
Unit in fiscal 2009, four projects, including the project for strategic development of industry-
university-government collaboration, were integrated in fiscal 2010 into the ―project for
developing innovation systems,‖ which is scheduled to be phased out by fiscal 2013. In
addition, the project expenses have been reclassified from ―commission expense‖ to
―subsidy‖ so as to invigorate proactive initiatives by local communities and universities.
(Development of systems for strategic creation, management and use of research
results by universities)
[Chart 4-24 Regional Distribution of Institutions Implementing ―Project for Strategic Development of
Industry-University-Government Collaboration‖]
69
Source: Survey by MEXT
70
Promotion of research and development relating to manufacturing
infrastructure technology, etc.
1. Matters Related to Research and Development of Manufacturing
Infrastructure Technology
(1) Adoption and Revision of the New Growth Strategy (Basic Policies)
The government adopted the New Growth Strategy (Basic Policies) upon a cabinet decision in
April 2009. The Basic Policies designate six strategic areas: 1) environment and energy; 2) health
(growth areas driven by Japan‘s strengths) 3) Asia; 4) tourism and local revitalization (growth
areas driven by pioneering new frontiers) 5) science and technology; 6) employment and human
resources (platforms to support growth). In the area of science and technology, it is prescribed
that innovation should be promoted. (Green innovation (innovation in the environmental and energy sectors) and life innovation (innovation in the medical and nursing care sectors)
are to be realized through the above initiative and are expected to greatly contribute to the further development of the Japanese manufacturing
industry.)
(2) Tax system for promoting research and development (Estimated tax revenue decline:
254.0 billion yen (in fiscal 2009)
i) Tax credit system relating to the total amount of experiment and research costs*
A tax exemption equivalent to 8 to 10%** of the total amount of experiment and research costs
(the upper limit set at 20% of the amount of the corporate taxes to be paid for the relevant fiscal
year) will continue to be applicable, according to the research and experiment cost ratio (the ratio
of experiment and research costs to the total sales).
ii) Tax system for strengthening SMEs’ technology infrastructures*
Regarding R&D activities conducted by SMEs, a tax exemption equivalent to 12% of the
experiment and research costs (the upper limit set at 20% of the amount of corporate taxes to be
paid for the relevant fiscal year) will continue to be applicable.*Under the economic policy package of fiscal 2009, it was arranged that regarding the tax credit system relating to the total amount of
experiment and research costs, (1) the upper limit on tax exemption would be raised from 20% of the amount of the corporate taxes to be paid
for the relevant fiscal year to 30% and (2) the portion of the experiment and research costs in excess of the upper limit in fiscal 2009 and 2010
would be eligible for tax exemption in fiscal 2011 and 2012. (The above measures will remain in effect until the end of fiscal 2011.)
**The tax exemption ratio relating to special experiment and research costs is a figure obtained by subtracting the tax exemption rate relating to
experiment and research costs from the rate of 12%.
iii) Tax deduction system relating to an increase in experiment and research costs
In addition to i) and ii) above, it was arranged as in the previous fiscal year that either a tax
deduction system related to an increase in experiment and research costs or a tax deduction
system related to the portion of the amount of experiment and research costs in excess of 10% of
the average sales was applicable (the upper limit set at 10% of the amount of corporate taxes to
be paid for the relevant fiscal year, separately from the upper limits concerning i) and ii) above.
(3) Formulation of a technology strategy map
Since the 2005 adoption of the first technology strategy map that takes into consideration future
needs of society and the people and advances and other developments related to technologies,
the government has been revising it annually to modify its contents and expand the range of
fields covered. In April 2009, the technology strategy map 2009, which covers 30 fields, up from
29 in the previous year’s version, was announced.
(4) Steady promotion of programs for innovation (198.6 billion yen)
Under the following seven innovation programs, the government promoted R&D activities and
measures necessary for the commercialization of the achievements of the activities (regulatory
reforms, standardization, etc.) in a comprehensive manner and encouraged the creation of
innovation through the promotion of S&T.i) IT innovation program ii) Nanotech/materials and components innovation program
iii) Robot/new machinery innovation program iv) Energy innovation program
v) Environment and safety innovation program vi) Health and comfort innovation program vii) Aerospace innovation program
Part 2 Measures and Policies Implemented in Fiscal 2009 in Relation to
the Promotion of Manufacturing Infrastructure Technology
71
Promotion of research and development relating to manufacturing
infrastructure technology
(5) Thorough management of trade secrets and thorough prevention of leakage of technology
The Unfair Competition Prevention Act was revised in April 2009 in order to prevent the outflow of
business secrets owned by companies, including important technologies and know-how, and thereby
maintain and strengthen the competitiveness of Japanese industry. As a result, illegal acquisition of
business secrets has become subject to criminal penalty (the revised act is scheduled to be put into
force on July 1, 2010). In response to this, explanatory meetings were held at 18 locations across Japan
to widely communicate the contents of the revised Unfair Competition Prevention Act. In addition, the
working group on the management of business secrets under the subcommittee on how to protect
information technology of the Industrial Structure Council‘s Intellectual Property Policy Committee held
several rounds of debate from August 2009, and the working group worked out a proposal for the
revision of the guideline for the management of business secrets in March 2010 in order to provide
further support to efforts to ensure the appropriate management of business secrets that is a
prerequisite for legal protection.
Collaboration between manufacturing businesses and universities,
etc.
(1) Partnership between industry and academia for human resource development (1.511 billion
yen)
Partnership between industry and academia for human resource development to create a positive
growth cycle for collaboration between industry and academia for human resource development in
Japan, known as the “Industry-Academia Partnership for Human Resource Development,” has been
promoted by the Ministry of Education, Culture, Sports, Science and Technology and the Ministry of
Economy, Trade and Industry since fiscal 2007 to provide opportunities for dialogue and actions relating
to human resource development for both the academic and industrial circles. In fiscal 2009, ―Direction of
Future Measures (fiscal 2009) was announced and specific measures were taken, including the
development of human resource development model programs in various fields, through industry-
academia collaboration and the development of a systematic method for fostering and evaluating
students’ basic social skills.
(2) Career Gateway to Asia (3.4 billion yen)
In order to form a network with other Asian countries, promote the globalization of Japanese universities
and companies, and strengthen the competitiveness of Japanese industry, since fiscal 2007, the
government has been implementing the Career Gateway to Asia program, which promotes the
development of advanced overseas human resources capable of contributing to Japanese industry by
implementing projects to provide Asian students staying in Japan with specialized education, Japanese
language education, corporate culture education, internships, and employment-support through
industry-academia collaboration. In fiscal 2009, around 1,500 foreign students participated in the Career
Gateway to Asia.
2. Matters Related to Securing Manufacturing Workers
Prevention of unemployment and other matters related to
employment stability
(1) Maintenance and stabilization of employment through the subsidy for employment
adjustments (660 billion yen)
In order to prevent unemployment and stabilize the employment situation in other ways in cases where
companies are forced to reduce business activity for economic reasons such as economic cyclical
changes and changes in the industrial structure, a subsidy for employment adjustments was provided to
companies that strive to maintain employment by suspending business operations temporarily or
sending employees on loan to other companies.
(1) Emergency fund for human resource development and employment support (tentative name)
(a total of 346.6 billion yen* in fiscal 2009 and 2010)
While employment conditions continue to be harsh, there are concerns that non-regular workers who
lost their jobs due to employment adjustments may face a prolonged period of unemployment. In light of
this, an emergency fund for human resource development and employment support was created as a
safety net for people who are not eligible to receive unemployment insurance benefits in order to
provide comprehensive support to them in relation to vocational training, reemployment and daily life.
As a second safety net for people who are not eligible to receive unemployment insurance benefits, an
emergency program to support human resource development was implemented to provide such people
with free training and give them 100,000 yen per month (120,000 yen in the case of people with a family
to support) during the training period, if certain requirements are met.
In addition, in order to promote early reemployment of job seekers who do not have sufficient skills or
experiences amid the difficult employment situation, practical training was provided to such people
through employment as trainees and other workplace experience so as to enable them to acquire
necessary skills and knowledge, and support was also provided to business operators that accepted
such people as permanent employees.
Moreover, in order to enhance support for people who had looked for a job for more than one year after
leaving their previous job through Hello Work facilities and people who lost both their job and home and
faced difficulty continuing job-seeking activity, private-sector job mediation companies were entrusted to
provide both employment support and housing and daily life support.
(2) Job training for displaced workers and people looking to change jobs
While employment conditions continue to be harsh, job training is being implemented by consigning
training to various kinds of private-sector education and training institutions, such as specialized training
schools, universities, NPOs, companies seeking workers, etc., in addition to being implemented at
public facilities for the development of vocational capabilities, in order to promote the smooth
reemployment of workers, including manufacturing workers who were forced to leave their jobs.
Under the initial budget for fiscal 2009, the maximum acceptable number of trainees was planned to be
increased by 35,000 people from the previous fiscal year to 190,000 people. However, under the first
supplementary budget for fiscal 2009, that number was increased by an additional 27,000 people to
220,000 people.
72
Development and improvement of vocational capabilities
3. Matters Related to Cultivation of Infrastructure in the Manufacturing
Industry
Promotion of industrial clusters, etc.
(1) Program for promoting regional industrial location (4.386 billion yen)
Under this program, regions drew up basic plans in light of their own characteristics, and the
government provided subsidies for projects to realize the plans, including projects to invite companies,
develop human resources, and construct plants and other business sites for rental, and a ―one-stop
service‖ related to industrial location was provided by the Japan Industrial Location Center. In addition,
loans were provided through Japan Finance Corporation in order to facilitate fund-raising for activities to
promote industrial location and engagement in advanced business by SMEs.
Regarding measures to make institutional improvements, the Industrial Location Promotion Act was
amended to add the ceramic, stone and clay product industries (including the carbon fiber
manufacturing industry) to the scope of sectors eligible for a special depreciation measure related to
industrial assets in cluster areas in fiscal 2009.
73
Cultivation of small and medium-sized enterprises
(1) Improvement of subcontracting transactions
i) Enforcement of the Subcontract Proceeds Act
In order to make subcontracting transactions more effective and efficient, a written survey was
conducted on original contracting businesses and subcontracting businesses, and on-site inspections of
them were implemented based on the Subcontract Proceeds Act. In light of the results of these surveys
and inspections, recommendations, guidance, written warnings and written guidance for improvement
were issued.
ii) Lectures on the Subcontract Proceeds Act
In order to raise awareness about and promote the implementation of the Subcontract Proceeds Act,
lectures on the improvement of subcontract transactions were held for officials in charge of outsourcing
(procurement) at original contracting businesses and subcontracting businesses.
iii) Guidelines on improvement of subcontracting transactions
In order to raise awareness about and promote the best practices concerning subcontracting
transactions, 120,000 copies of the revised edition of a pamphlet listing such best practices were
printed.
iv) Consultation centers for subcontractors
The 48 consultation centers for subcontractors, including the headquarters and regional centers in the
47 prefectures, provided consultations regarding subcontracting transactions, implemented out-of-court
dispute settlement procedures and made efforts to raise awareness about and promote guidelines on
improvement of subcontracting transactions.
(2) Promotion of innovations in management
The following measures were implemented in order to support innovations in management by SMEs
intended to significantly improve management through new business activities conducted in quick
response to changes in the economic environment, such as the development and production of new
products, the development and provision of new services and the introduction of new methods of
producing and selling products and providing services.
i) Loans provided by governmental financial institutions
Low-interest loans were provided to individual SMEs, associations and voluntary groups implementing
projects to carry out innovations in management after obtaining approval of their business innovation
plans based on the Act for the Promotion of New Business Activities by Small and Medium-Size
Enterprises.
ii) Special cases related to the Small and Medium-Size Enterprise Credit Insurance Act
As special cases of the ordinary insurance, unsecured insurance, and small-lot special insurance as
specified under the Small and Medium-Size Enterprise Credit Insurance Act, support was provided to
facilitate the supply of funds for projects implemented after approval of business innovation plans based
on the Act for the Promotion of New Business Activities by Small and Medium-Size Enterprises.
(iii) Program to develop platform systems for SME management innovation (1.763 billion yen)
A system constituting the infrastructure of an Internet-based software provider that enables SMEs to
easily make their business operations efficient at low cost and applications software for financial
accounting and salary calculations that operate on the system were developed.
(iv) Regional innovation partnership (813 million yen)
In order to promote IT-based innovation by SMEs involved in regional services and monodzukuri and
invigorate local economies, a framework for the promotion of regional innovation partnership was
established in each broad regional economic bloc in order to hold training sessions and seminars
across Japan and dispatch experts through a public-private cooperative network (IT-oriented
management support team), thereby fostering companies that can conduct IT-oriented management. In
addition, a business matching service was provided to introduce SMEs to regional IT product and
service vendors that support the use of IT by SMEs, and support was provided to activities to strengthen
the supply capacity of IT products and services through cooperation between vendors.
74
4. Matters Related to Promotion of Studies Concerning Manufacturing
Infrastructure Technology
Monodzukuri education in school education
5. Necessities Related to the Promotion of Other Manufacturing
Infrastructure Technology(1) Project to train economic and industrial human resources (4.212 billion yen)
A training program related to Japanese companies‘ technologies and management know-how
was implemented for industrial engineers and business managers in developing countries. In
fiscal 2009, training was provided in Japan and abroad mainly for employees of SMEs
operating in developing countries in Southeast Asia.
(2) 3rd monodzukuri Nippon Grand Award
The monodzukuri Nippon Grand Award is awarded by the Prime Minister to people of various
generations involved in monodzukuri, including middle-aged people playing the central role in
the manufacturing workplaces, elderly people preserving traditional and culturally important
skills and young people set to support the future of the manufacturing industry, who are
recognized for their outstanding skills, in order to ensure the continuation and further
development of ―monodzukuri,‖ which has underpinned the development of Japanese
industries and cultures and has greatly enriched the people‘s lives. In the third monodzukuri
Nippon Grand Award of fiscal 2009, 50 people and one organization, in a total of 20 cases, was
commended by the Prime Minister on July 15, 2009, and eight people who became gold
medalists in the International Skills Festival were commended on December 15, 2009.
(1) Project to support career education suited to each development stage (55 million yen)
Research and surveys were conducted on the development of systematic career education
programs suited to each development stage of elementary and junior high school students.
(2) Project to foster personnel that support local industries (335 million yen)
The relevant ministries (METI, MLIT, and the Ministry of Agriculture, Forestry and Fisheries),
together with specialized senior high schools and local business circles, implemented initiatives
to foster professional workers who protect the culture of manufacturing as well as culinary and
everyday life and support local industries.
(3) "Become a specialist (super specialized senior high schools)" project (106 million yen)
A project was implemented in collaboration with universities, research organizations and others
to reinvigorate specialized senior high schools through the provision of support for such
distinctive initiatives as education that incorporates advanced technologies and skills.
(4) Project to develop human resources with practical skills through industry-academia
collaboration (513 million yen)
Educational programs that help to develop human resources with practical skills through industry-
academia collaboration at universities and colleges of technology were developed and
implemented.
(5) The Vocational Education Promotion Plan to incorporate Specialized Training Colleges
and Senior High Schools (147 million yen)
Under the plan, the government, in collaboration with specialized training colleges and senior
high schools, provided opportunities for senior high school students to participate in various kinds
of work experiences by introducing examples of employment-related knowledge, skills and
qualifications to the students and by having them participate in vocational experience workshops.
In addition, the plan was intended to foster young people‘s job consciousness and motivation to
study technology and acquire skills that contribute to monodzukuri by holding vocational
experience workshops in various regions.
