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This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Building the Microeconomic
Foundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the New Competitive Agenda for Companies and Governments” in On
Competition (Harvard Business School Press, 2008), “Creating Shared Value” (Harvard Business Review, Jan 2011), the Social Progress Index Report (Social Progress Imperative)
and ongoing related research. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,
photocopying, recording, or otherwise - without the permission of Michael E. Porter. For further materials, see the website of the Institute for Strategy and Competitiveness
(www.isc.hbs.edu), FSG (www.fsg.org) and the Social Progress Imperative (www.socialprogressimperative.org).
Can Japan Compete?
Revisited
Professor Michael E. Porter Harvard Business School
Porter Prize Conference
Tokyo, Japan December 5th, 2013
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Copyright 2013 © Professor Michael E. Porter 2 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Can Japan Compete?
• What is the state of Japanese
competitiveness in 2013? How
has Japan progressed since
2000?
• What is Japan’s strategic
agenda for 2014 and beyond?
• Is Abenomics sufficient?
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Copyright 2013 © Professor Michael E. Porter 3 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
1. Japan’s Economic Performance
2. Competitiveness and Economic Growth: The New Learning
3. The Strategic Agenda for Japan in 2014
Can Japan Compete?
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Copyright 2013 © Professor Michael E. Porter 4 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Economic Performance
• Overall economic performance has been disappointing, reflecting a poor
macroeconomic environment and continuing microeconomic weaknesses
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Copyright 2013 © Professor Michael E. Porter 5 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Australia
Austria
Belgium
Canada
Chile
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Israel Italy
Japan
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal Slovakia
Slovenia
South Korea
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
PPP-Adjusted GDP per Capita, 2012 ($USD)
Growth in Real GDP per Capita (PPP-adjusted), CAGR, 2000-2012
Note: Luxembourg Excluded
Source: EIU (2013), authors calculations
Prosperity Performance OECD Countries
OECD Average: 3.49%
OECD Average: $34,439
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Copyright 2013 © Professor Michael E. Porter 6 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Economic Performance
• Overall economic performance has been disappointing, reflecting a poor
macroeconomic environment and continuing microeconomic weaknesses
• While growth in productivity of existing workers remains in line with many
advanced OECD peers, Japan has suffered from declining workforce
participation
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Copyright 2013 © Professor Michael E. Porter 7 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Economic Performance
• Overall economic performance has been disappointing, reflecting a poor
macroeconomic environment and continuing microeconomic weaknesses
• While growth in productivity of existing workers remains in line with many
advanced OECD peers, Japan has suffered from declining workforce
participation
• Japan’s share of world export share has continued to gradually fall, in line with
advanced OECD countries besides Germany
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Copyright 2013 © Professor Michael E. Porter 8 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
China
India
Korea
United States
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Japan
United Kingdom
Share of World Exports Selected Countries, 1980 - 2012 Share of World
Exports of Goods and Services
Source: UNCTADstat (2013)
Germany
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Copyright 2013 © Professor Michael E. Porter 9 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Economic Performance
• Overall economic performance has been disappointing, reflecting a poor
macroeconomic environment and continuing microeconomic weaknesses
• While growth in productivity of existing workers remains in line with many
advanced OECD peers, Japan has suffered from declining workforce
participation
• Japan’s share of world export share has continued to gradually fall, in line with
advanced OECD countries besides Germany
• Imports into the Japanese economy have grown, reflecting gradual opening
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Copyright 2013 © Professor Michael E. Porter 10 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Australia
Austria
Belgium
Canada Chile
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Israel
Italy
Japan
Mexico
Netherlands
New Zealand
Norway
Poland Portugal
Slovakia
Slovenia
South Korea
Spain
Sweden Switzerland
Turkey
United Kingdom
United States
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
Imports of Goods and Services (% of GDP),
2012
Change in Imports of Goods and Services (% of GDP), 2000-2012
Import Performance OECD Countries
Note: Luxembourg omitted
Source: EIU (2013), authors calculations
OECD Average: 47.36%
OECD Average: 5.38%
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Copyright 2013 © Professor Michael E. Porter 11 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Economic Performance
• Overall economic performance has been disappointing, reflecting a poor
macroeconomic environment and continuing microeconomic weaknesses
• While growth in productivity of existing workers remains in line with many
advanced OECD peers, Japan has suffered from declining workforce
participation
• Japan’s share of world export share has continued to gradually fall, in line with
advanced OECD countries besides Germany
• Imports into the Japanese economy have grown, reflecting gradual opening
• FDI inflows into the Japanese economy remain the lowest of any OECD country.
Outbound FDI has grown but lags all other advanced economies
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Copyright 2013 © Professor Michael E. Porter 12 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Australia
Austria
Canada
Chile
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Israel
Italy
Japan
Korea
Mexico
Netherlands
New Zealand
Norway Poland
Portugal
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Inward FDI Stocks as % of GDP, Average 2000-
2011
FDI Inflows as % of Gross Fixed Capital Formation, Average 2000-2011
Inbound Foreign Investment Performance Stocks and Flows, OECD Countries
Note: Luxembourg omitted
Source: UNCTAD, World Investment Report (2012)
Belgium
(95.21%, 139.07%)
Ireland
(45.26%, 110.22%)
OECD Average: 48.01%
OECD Average: 22.71%
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Copyright 2013 © Professor Michael E. Porter 13 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Economic Performance
• Overall economic performance has been disappointing, reflecting a poor
macroeconomic environment and continuing microeconomic weaknesses
• While growth in productivity of existing workers remains in line with many
advanced OECD peers, Japan has suffered from declining workforce
participation
• Japan’s share of world export share has continued to gradually fall, in line with
advanced OECD countries besides Germany
• Imports into the Japanese economy have grown, reflecting gradual opening
• FDI inflows into the Japanese economy remain the lowest of any OECD country.
Outbound FDI has grown but lags all other advanced economies
• Japan continues to be among the top innovators in the world, but some other
countries are more rapidly increasing R&D spending
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Copyright 2013 © Professor Michael E. Porter 14 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Source: USPTO (2010), Groningen Growth and Development Centre, Total Economy Database (2010)
Average U.S. patents per 1 million population, 2010-2012
CAGR of US-registered patents, 2000-2012
Innovative Output Selected Countries
13,000 patents =
United States
Japan
Germany
South Korea
Taiwan
Canada
France
United Kingdom
Israel
Italy
Sweden
Netherlands
Switzerland
India
Australia
Finland
Belgium
Austria
Denmark Singapore
Spain
Hong Kong
Norway
Ireland
Russia
New Zealand
Malaysia Brazil Saudi Arabia South Africa
Czech Republic
Mexico 0
50
100
150
200
250
300
350
400
0% 5% 10% 15% 20% 25%
China
(35.0%)
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Copyright 2013 © Professor Michael E. Porter 15 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
1. Japan’s Economic Performance
2. Competitiveness and Economic Growth: The New Learning
3. The Strategic Agenda for Japan in 2014
Can Japan Compete?
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Copyright 2013 © Professor Michael E. Porter 16 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
• Competitiveness depends on the long-run productivity of a location as a
place to do business
- The productivity of existing firms and workers
- The ability to achieve high participation of citizens in the workforce
• Competitiveness is not:
- Low wages
- A weak currency
- Jobs per se
A nation or region is competitive to the extent that firms operating there are able
to compete successfully in the regional and global economy while maintaining
or improving wages and living standards for the average citizen
Competitiveness and Economic Growth
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Copyright 2013 © Professor Michael E. Porter 17 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
• Endowments, including natural resources, geographical location, population, and land area, create a
foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
What Determines Competitiveness?
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Copyright 2013 © Professor Michael E. Porter 18 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not
sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and land area, create a
foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Macroeconomic Competitiveness
Endowments
Human Development
and Effective
Political Institutions
Sound Monetary
and Fiscal Policies
What Determines Competitiveness?
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Copyright 2013 © Professor Michael E. Porter 19 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
• Productivity ultimately depends on improving the microeconomic capability of the economy and the
sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not
sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and land area, create a
foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Macroeconomic Competitiveness
Microeconomic Competitiveness
Quality of the
Business
Environment
State of Cluster
Development
Endowments
Human Development
and Effective
Political Institutions
Sound Monetary
and Fiscal Policies
What Determines Competitiveness?
Sophistication
of Company
Operations and
Strategy
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Copyright 2013 © Professor Michael E. Porter 20 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Improving the Quality of the Business Environment
Context for Firm Strategy and Rivalry
Related and Supporting Industries
Factor (Input)
Conditions
Demand Conditions
• Sophisticated and demanding local
needs
– e.g., Strict quality, safety, and
environmental standards
• Many things matter for competitiveness
• Successful economic development is a process of successive upgrading, in which the business environment improves to enable increasingly sophisticated ways of competing
• Local rules and incentives that
encourage investment and productivity
– e.g. incentives for capital investments,
IP protection
• Sound corporate governance
• Open and vigorous local competition
− Openness to foreign competition
− Strict competition laws • Improving access to high quality
business inputs
– Qualified human resources
– Capital availability
– Physical infrastructure
– Scientific and technological
infrastructure
– Efficient regulatory system • Availability and quality of suppliers and
supporting industries
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Copyright 2013 © Professor Michael E. Porter 21 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Sources: HBS student team research (2003) - Peter Tynan, Chai McConnell, Alexandra West, Jean Hayden
Restaurants
Attractions and Activities
e.g., theme parks, casinos, sports
Airlines, Cruise Ships
Travel Agents Tour Operators
Hotels
Property Services
Maintenance Services
Government Agencies e.g., Australian Tourism
Commission, Great Barrier Reef Authority
Educational Institutions e.g., James Cook University,
Cairns College of TAFE
Industry Groups e.g., Queensland Tourism
Industry Council
Food Suppliers
Public Relations & Market Research
Services
Local Retail, Health Care, and Other Services
Souvenirs, Duty Free
Banks, Foreign
Exchange
Local Transportation
Developing Clusters: Tourism in Cairns, Australia
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Copyright 2013 © Professor Michael E. Porter 22 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Hokkaido
Aomori
Iwate
Miyagi
Akita Yamagata
Fukushima
Ibaraki Tochigi
Gumma Yamanashi Nagano
Saitama
Chiba
Kanagawa
Niigata
Toyama
Ishikawa
Fukui
Gifu
Shizuoka Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Tottori Shimane
Okayama
Hiroshima
Yamaguchi
Tokushima Kagawa
Ehime
Kochi
Fukuoka
Saga
Nagasaki Kumamoto
Oita
Miyazaki
Kagoshima
Okinawa
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Prosperity of Japanese Prefectures
Real Growth Rate of GDP per capita, 2000-2010
Gro
ss D
om
esti
c P
rod
uc
t p
er
Ca
pit
a, 2
01
0
(Cu
rre
nt
$U
S a
t P
PP
)
Source: OECD iLibrary (2013)
Japan Real Growth Rate of GDP
per Capita: 2.75%
Japan GDP per Capita:
$34,758
Tokyo ($ 62,195, 2.14 %)
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Copyright 2013 © Professor Michael E. Porter 23 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
• Many essential levers of competitiveness reside at the regional level
• Regions specialize in different sets of clusters
• Regions are a critical unit in competitiveness
• Each region needs its own distinctive strategy and action agenda
– Business environment improvement
– Cluster upgrading
– Improving institutional effectiveness
The Role of Regions in Economic Development
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Copyright 2013 © Professor Michael E. Porter 24 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Geographic Influences on Competitiveness
Neighboring Countries
Regions and Cities
Nation
• Economic coordination and integration with neighboring countries is a major force of
productivity and competitiveness
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Copyright 2013 © Professor Michael E. Porter 25 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Competitiveness Profile, 2001 ISC Competitiveness Model
Japan’s GDP per capita rank is 18th
versus 71 countries
Note: Rank versus 71 countries; *Color coding based on comparison relative to income;
Source: Institute for Strategy and Competitiveness, Harvard University (2012), based in part on survey data from the World Economic Forum; analysis prepared based on research findings by Scott Stern, Mercedes
Delgado, and Christian Ketels.
Macroeconomic
Competitiveness
28
Political Institutions
32
Rule of Law
22
Human
Development
15
Microeconomic
Competitiveness
17
Macroeconomic
Policy
66
National Business
Environment
22
Company Operations
and Strategy
9
Country Competitiveness
23
Significant
advantage
Moderate
advantage Neutral
Moderate
disadvantage
Significant
disadvantage
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Copyright 2013 © Professor Michael E. Porter 26 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Can Japan Compete? The Corporate Agenda in 2001
1. Shift the goal from growth to profitability
2. Create distinctive, long term strategies
3. Expand the focus of operational effectiveness to IT
4. Understand the role of industry structure
5. Reduce unrelated diversification
6. Update the Japanese organizational and governance model
7. Develop a stronger role for the private sector in economic
development
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Copyright 2013 © Professor Michael E. Porter 27 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Can Japan Compete? Government Agenda in 2001
1. Open up domestic competition and reduce government
intervention
2. Open trade and foreign investment
3. Modernize archaic and inefficient domestic sectors
4. Build a world class university system
5. Create new models of innovation and entrepreneurship
6. Encourage decentralization, regional specialization, and
cluster development
7. Create stronger corporate accountability
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Copyright 2013 © Professor Michael E. Porter 28 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Competitiveness Profile, 2012 ISC Competitiveness Model
Japan’s GDP per capita rank is 18th
versus 71 countries
Note: Rank versus 71 countries; *Color coding based on comparison relative to income;
Source: Institute for Strategy and Competitiveness, Harvard University (2012), based in part on survey data from the World Economic Forum; analysis prepared based on research findings by Scott Stern, Mercedes
Delgado, and Christian Ketels.
Macroeconomic
Competitiveness
24
Political Institutions
22
Rule of Law
17
Human
Development
14
Microeconomic
Competitiveness
14
Macroeconomic
Policy
68
National Business
Environment
16
Company Operations
and Strategy
4
Country Competitiveness
18
Significant
advantage
Moderate
advantage Neutral
Moderate
disadvantage
Significant
disadvantage
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Copyright 2013 © Professor Michael E. Porter 29 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Company Progress since 2001
1. Shift the goal from growth to profitability
– More businesses are being divested due to inadequate profitability, but Japanese ROIC remains low
2. Create distinctive, long term strategies
– The Porter Prize has recognized 41 companies with distinctive strategies since 2001
– Many companies have become more focused
3. Expand the focus of operational effectiveness to IT
– The utilization of IT has increased substantially, improving productivity
4. Understand the role of industry structure
– Industry attractiveness has become a larger factor in corporate choices
5. Reduce unrelated diversification
– Many corporate portfolios have been pruned
6. Update the Japanese organizational and governance model
– The number of executive board members has been reduced
– The number of companies with outside board members have substantially increased
– Cross shareholding has fallen
7. Develop a stronger role for the private sector in economic development
– Business leaders are becoming more involved in national and regional economic development
– Shared value has become a major new thrust in Japanese corporations
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Copyright 2013 © Professor Michael E. Porter 30 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Government Progress Since 2001
1. Open up domestic competition and reduce government intervention
– Stricter anti-trust laws and enforcement has brought Japan closer to world standards
– Government still prone to intervention and government solutions (e.g. electronics)
– Targeting persists in “growth industries”
2. Open trade and foreign investment
– FTAs signed with many nations, with the TPP being discussed
– FDI restrictions have been partially reduced, but barriers remain
3. Modernize archaic and inefficient domestic sectors
– Rules governing construction improved
– Protection for small scale retailing reduced
– Agriculture largely unchanged
4. Build a world class university system
– Some steps have been taken to raise university standards and accountability
– Archaic rules still disadvantage students studying outside Japan
5. Create new models of innovation and entrepreneurship
– Rules for starting businesses have improved, though still not world class
– IP protection strengthened
– Access to public listing by newer companies has improved
6. Encourage decentralization, regional specialization, and cluster development
– Cluster initiatives have proliferated, but progress remains uneven
– Only modest delegation of central government powers has occurred
7. Create stronger corporate accountability
– At least one independent board member is recommended for TSE-listed companies
– Few companies still have effective corporate governance
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Copyright 2013 © Professor Michael E. Porter 31 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
0
-4
+3
+7
-2
+7
+1
-2
0
Trajectory of the Japanese Business Environment
Note: Rank versus 71 countries
Source: Institute for Strategy and Competitiveness, Harvard University (2012), based in part on survey data from the World Economic Forum; analysis prepared based on research findings by Scott Stern, Mercedes
Delgado, and Christian Ketels.
Overall Business Environment
Rank in 2012 Change in
Rank
16
Supporting and Related
Industries and Clusters 4
+7
Logistical Infrastructure 12
Demand Conditions 16
Capital Market Infrastructure 20
Communications Infrastructure 21
Factor Conditions 21
Context for Strategy and Rivalry 22
Innovation Infrastructure 23
Regulatory Infrastructure 38
Rank versus a
consistent
sample of 71
countries
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Copyright 2013 © Professor Michael E. Porter 32 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
0
20
40
60
80
100
120
140
Ease of
Doing
Business
Rank
Resolving
Insolvency
Protecting
Investors
Trading
Across
Borders
Getting Credit Getting
Electricity
Enforcing
Contracts
Registering
Property
Dealing with
Construction
Permits
Starting a
business
Paying Taxes
Microeconomic Competitiveness Indicators Ease of Doing Business Rankings – Japan
Ranking, 2013 (vs. 185 countries)
Source: World Bank Report, Doing Business (2013)
Favorable Unfavorable
Japan’s GDP per capita rank: 21
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Copyright 2013 © Professor Michael E. Porter 33 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
1. Japan’s Economic Performance
2. Competitiveness and Economic Growth: The New Learning
3. The Strategic Agenda for Japan in 2014
Can Japan Compete?
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Copyright 2013 © Professor Michael E. Porter 34 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Strategy under Prime Minister Abe The “Three Arrows” of Abenomics
Monetary Expansion
Temporary Fiscal
Expansion, then
Consolidation
Structural Reforms
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Copyright 2013 © Professor Michael E. Porter 35 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
Japan’s Strategy under Prime Minister Abe The “Third Arrow”: Structural Reforms
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Copyright 2013 © Professor Michael E. Porter 36 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
The “Three Arrows” of Abenomics: Progress to Date
Monetary Expansion
Temporary Fiscal
Expansion, then
Consolidation
Structural Reforms
• Fully implemented
• Promising Results
• Expansion implemented
• Consolidation beginning
• Success unclear
• An extensive list of
suggested actions, few
steps taken so far
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Copyright 2013 © Professor Michael E. Porter 37 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
The Japanese Corporate Agenda for 2014
1. Accelerate the shift to strategic thinking
2. Accelerate globalization, making greater use of M&A
3. Encourage fast track leadership development and mid career
recruiting to complement internal promotion
– Mobility of talent will dramatically improve Japanese company
performance
4. Simplify and streamline decision making while continuing to
improve accountability and governance
5. Evolve executive compensation practices to incentivize risk
taking
6. Embrace shared value as the guiding principle for Japanese
business
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Copyright 2013 © Professor Michael E. Porter 38 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
The National Agenda in 2014
1. Continue opening domestic and international competition
– Eliminate remaining barriers to FDI and imports
– Reduce government subsidies and intervention in companies
2. Lower the unnecessary high costs of doing business in Japan
– Regulation and bureaucracy is Japan’s greatest weakness
3. Deregulate the key Japanese sectors to unlock growth, productivity and innovation
– Agriculture
– Health Care
4. Continue decentralizing resources and responsibility to Japanese prefectures
and metropolitan regions
– Let regions compete to develop clusters, attract investment and upgrade their business
environment
5. Restructure Japan's fiscal structure
– Lower the corporate tax rate while eliminating tax breaks
– Reduce capital gains taxation
– Moderate taxes on earned income
– Increase consumption based and non-renewable energy use taxes
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Copyright 2013 © Professor Michael E. Porter 39 20131205—Porter Prize Japan Competitiveness Presentation—FINAL
6. Set a pragmatic long term energy strategy
– The cost of energy is a major competitiveness issue
– Transitional solutions and carbon taxes will be needed to bridge the present and the future
– Energy efficiency must become a national priority
7. Connect Japan to the rest of the world – Raise language skills
– Support international education
– Welcome skilled immigration
– Embrace the internationalization of knowledge
– Encourage deeper globalization by Japanese companies
– Move from politics to building economic partnership with other Asian countries
8. Tap the talent and potential of Japanese citizens and enrich the nation’s
human resources – Embrace and enable womens’ participation in the workforce
– Open up labor mobility
– Welcome skilled expatriates from abroad
– Encourage and support Japanese students studying abroad
– Raise the standards in Japanese universities and business schools
9. Deepen economic integration of Japan in the Asian region
The National Agenda in 2014