This document discusses Japan's position regarding emerging technologies such as information technology, the human genome project, and nanotechnology. It notes that while Japan was an early leader in concepts like a fiber optic network and human genome mapping, it failed to maintain leads in these areas due to lack of sustained governmental support and inconsistent funding. Currently, Japan is a top investor in nanotechnology but has fewer startups than the US; maintaining leadership will depend on supporting infrastructure and applying its materials expertise to drive more products to market.

1. Emerging Technologies:
Japan’s Position
Eric Vanderburg, MBA
July 24, 2004

2. Information Technology
Japan was a latecomer in IT
developments as compared to US
July 2000 Japanese government
established IT Strategy Headquarter
& an IT Strategy Council
Goal: make Japan the most
advanced IT country in 5 years

3. Information Technology
One of the means of realizing
the goal was by building an
ultra-high speed Internet
network
Japan had been lagging behind
in rate of computer use (19th in
number of computers per
capita, 21st in diffusion of
Internet use (data for late
1990s)

4. Japan’s Information Super
Highway
In terms of goal setting, Japan was
well a head of the US in conceiving
of an information super highway
In 1990, NTT already had its
“visual, intelligent, and personal”
communications strategy (VI&P)
The aim of VI&P was to link every
household in Japan to a fiber-optic
network over the period of 20 yrs

5. Lack of governmental support
VI&P only had NTT as the main
initiator
The Japanese government never
responded to NTT’s initiative
Even though Japan was well a head
in the initiative by three years, now it
finds itself behind

6. Human Genome
Japan was well ahead of the US in its
attention to human genome project
(mapping the human DNA)
1n 1981, five years before American
turned their attention to the human
genome project, Tokyo University in
collaboration with a number of private
firms were working on DNA extraction
project- they hope to use Japan’s robotic
technology to speed up the process

7. Human genome project
1997: Tokyo University professor
Akiyoshi Wada published a report of
their research detailing that it is
possible to do the mapping at 10 Yen
per base pair (this led to America
Celera Genomics project)
There was little recognition in Japan
and funds were committed in an
inconsistent fashion

8. Human genome project:
International Efforts
1988: International Strategy Meeting
on Genome Sequencing
2000: shares of sequencing efforts by
countries (USA- 67%, UK- 22%,
Japan- 7%, France- 2%, Germany- 2%,
and China - 1%)
Whereas Japan could have taken a lead
because it had it required to, the chance
was squandered as in the case of VI&P

9. Nanotechnology: Will Japan keep
the lead?
2001, USA announced their
Nanotechnology initiative ($500 m
annual allocation)
Japan has devoted funds to nanofusion,
materials, nanounit fabrication as the key
areas (24 trillion yen in 5 years)
Results: Carbon nanotubes
The big question is whether Japan will
keep a future lead in nanomaterial

10. Observations- Key Issues
The capability to apply research
developments in nanotechnology
across many industries
In energy revolution
New materials for a wide range of products
Supportive Technology
Infrastructure will determine the
direction of progress
Nano materials- engineering and
manufacturing- complex materials

11. Observation- Key Issues
The U.S.A main focus and lead is in
nanobiology and electronics
Spending: Massive increase in spending
by Japan-$1b in 2002 up from $120 m in
1997- expected to jump to $ 50 b. over
the next five years (private companies
like Hitachi, Toray & Mitsubishi also
invested $1b into nano-related projects.
Market potential- $200 b by 2010
Japan’s application performance has
been very strong- driving more products
to the market faster

12. Products- Application
Nissan’s X-Trail sport-utility vehicle has its
front fenders made of lightweight
composite reinforced with nanotubes
Sony’s new lithium-ion batteries that last
longer and possibly in fuel cell for cars
Production capability for nanotubes has
also increased- 2000- about 1 ton a year,
2002- 10 tons a month by Mitsui- others
like Toray are also building plants to begin
production

13. Entrepreneurship in Nanotech
Startups
Japan has about 100 ventures
U.S.A has about 1000 ventures in
2001 alone
Japanese companies are investing in
promising U.S.A and European
Ventures, funding research activities
at foreign Universities, and forging
strategic links with Asian companies
that could turn into rivals

14. Conclusion
Technologies are very much related
(supportive technology and cluster concept)
A look at the names of private companies that
participated in Japan’s DNA extraction
project tell it all- Seiko Instruments &
Electronics, Fuji Film, Hitachi, Toshiba &
Mitsui Knowledge Industry)
Japan’s strength in materials related
nanotechnology shows the related nature
of current technological progress and
existing capability- technology trajectory
concept