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Let’s begin these notes with a brief overview of Japan’s technology industry. Here’s a few interesting facts to kick things off:

• In 2022, Japan was ranked 13th in the Global Innovation Index by the World Intellectual Property Organization, rising from 16th in 2020.
• Statista says Japan’s software industry accounted for sales of almost 16.7 trillion Japanese yen as of 2020.

What is Society 5.0?

The term refers to the idea that Society 5.0 will follow Society 1.0 (hunter-gatherer), Society 2.0 (agricultural), Society 3.0 (industrialised), and Society 4.0 (information). (Unesco)

• The Japanese government says Society 5.0 is a vision of a society in which cyberspace and the physical world are increasingly interconnected.
• Society 5.0 is supposed to help in mitigating several challenges faced by Japan’s society, such as demographic ageing, labour shortages, and the depopulation of rural areas.
• A number of technological developments factor into this, such as AI, the Internet of Things (IoT), and robotics.
  
  

Historical context

• Japan's postwar economic model is often referred to as the "Japanese economic miracle" due to its rapid and sustained economic growth from 1945 to 1991. The Japanese economy was left in ruins after World War II, but it recovered at an incredible speed.
• The Japanese government invested heavily in education and research & development, which helped to create a highly skilled workforce and foster technological innovation. It is now one of the leading nations in the fields of scientific research, technology, machinery and medical research.
• Japan has the world's third-largest budget for research and development.
• Japan's large firms have played a significant role in the development of the country's startup ecosystem. Many have established venture capital funds and incubators to support startups, and they have also provided mentorship and other resources to help startups grow.
• Japan's economy faces several challenges in the 21st century. One of the most significant challenges is demographic change, including an aging population and a low birth rate, which has led to a shrinking workforce and a strain on the social security system.
  
  

Japan's technology industry in 2023

• Japan established the Digital Agency, which aims to coordinate the digital transformation effort across government departments and the private sector.
• According to the 2022 IMD World Digital Competitiveness Ranking, Japan ranked 29th out of 64 countries examined in terms of know-how, development of digital technologies and their preparedness to exploit digital transformation.
• Japan's public sector is notoriously stuck in the analogue age, with its endless paper-shuffling reliant on manual stamping.
  
  

Key players in Japan's technology industry

• FANUC is one of the largest makers of industrial robots in the world, and it had its beginnings as part of Fujitsu developing early numerical control (NC) and servo systems.
• Fujitsu was the world's sixth-largest IT services provider by annual revenue, and the largest in Japan, in 2021.
• Panasonic is a multinational electronics corporation that provides a wide range of products and services. The company is involved in various initiatives, such as the development of AI drug discovery technology using generative AI to predict structural changes in proteins. It's also expanding 5G networks to cover 90% of the population by 2023.
• Sony is one of the world's largest manufacturers of consumer electronics. The company generated over 82 billion US dollars in total annual revenue in 2022, and around a third of the company’s income comes from its game and network segment.
• Toyota is one of the largest car manufacturers in the world, producing about 10 million vehicles a year.
• Paidy is a Japanese deferred online payment service that offers a buy now, pay later service for online shops. I think PayPal acquired Paidy in 2021.
• Preferred Networks is a Japanese startup focused on the research and development of deep learning for IoT applications. It has partnered with Toyota to develop autonomous driving technology.
  
  

Emerging technologies in Japan

• As of 2022, 45% of all industrial robots in the world were originally produced or designed by companies in Japan.
• Japan has the highest density of industrial robots in the world, with 631 robots per 10,000 workers in manufacturing as of 2021. This reflects Japan's focus on automation to address acute workforce shortages due to an aging population.
  
  

Challenges and opportunities

•  China (automotive, electronics and tech)
•  the US (automotive, electronics and tech)
•  South Korea (electronics and tech)
•  Germany (automotive)
•  Taiwan (electronics).
  
  

What did I notice?