Cool Japan Strategy

January 2012 Creative Industries Division Ministry of Economy, Trade and Industry

The Japanese economystatus and issues: Population decline and decreased growth potential
Japans nominal GDP decreased by 55 trillion yen over the three years from 2008 to 2011.
Japan's real economic growth rate fell to 1% and below during the 2000s. In the future, the declining population of productive age is expected to lower growth potential.
55 trillion yen decrease in nominal GDP in three years

Nominal GDP (annualized), JanuaryMarch 2008: 517 trillion yen Nominal GDP (annualized) AprilJune 2011: 462 trillion yen

Past and projected economic growth rates

(Change in average annual rate: %)

Past and projected change in Japan's population of productive age

(10,000 persons)

4.5
4.0 3.0 2.0 1.0 0.0

Impact on number of persons employed GDP Productivity (real GDP per employed person) growth rate GDP Real GDP growth rate

1.2

3.3

1.5 0.5 1.0 0.7 1.0 -0.3

2000s 2000

0.4 1.0 -0.6

2010s 2010

-1.0
1980s 1980 1990s 1990

14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 0.3 6,000 5,000 1.0 4,000 -0.7 3,000 2,000 2020s 2020 (fiscal years) 1,000 0

014 population 014

1564 population 1564

65 and older population 65

2,941

3,764 8,128 4,930

1,648

821

Note:

Labor force participation rates by sex and age are assumed to remain level from 2009. 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 The increase in the labor productivity rate is fixed at 1.0%. Sources: Calculated using Cabinet Office, "System of National Accounts"; Ministry of Internal Sources: Actual values: Ministry of Internal Affairs and Communications, "Japan's Estimated Population." () Affairs and Communications, "Labor Force Survey"; National Institute of Population Future projections: National Institute of Population and Social Security Research, "Japan's and Social Security Research, "Future Population Estimates" (midrange estimates for Future Population Estimates (December 2006 estimates)" (midrange estimates). births and deaths). 1

The Japanese economystatus and issues: Negative employment impacts from hollowing out
With the rapid rise of the yen causing a sudden acceleration of the shift to overseas production, new businesses and industries in Japan may not be able to mature fast enough to keep up. If the domestic automobile industry is hollowed out, service industries may not be able to absorb displaced employment. This could result in the loss of 600,000 jobs.

Past and projected change in domestic automobile production

(10,000 vehicles)

Projected employment if hollowing out occurs (Comparison of numbers employed in 2009 and 2015)

1000

exported No. vehicles in Japan No. vehicles sold No. vehicles produced in Japan

Projected

Ordinary scenario Manufacturing industries Service industries, etc.

If automobile industry hollows out

800

-20,000 +90,000

-450,000

-470,000
-150,000

600

400

-240,000

200

Increase/decrease in jobs
199394 95 96 97 98 99200001 02 03 04 05 06 07 08 09 10 15 20
(Year)

+70,000

-690,000

-620,000

0
Sources: Created from Japan Automobile Manufacturers Association and Cabinet Office, "SNA Input-Output Tables" and "System of National Accounts"; Japan Institute for Labor Policy and Training (2011), "Labor Force Demand Estimates. Note 1: The "ordinary scenario" uses estimated values from the Japan Institute for Labor Policy and Training. For "if the automobile industry hollows out," the impact on employment if domestic automobile production follows the trend shown in the table at left was estimated using the Input-Output Tables. Note 2: Numbers of persons employed in 2009 were as follows. Manufacturing industries: 2 10,730,000, Service industries: 40,570,000, Other: 11,520,000, Total: 62,820,000.

Source: Japan Automobile Manufacturers Association Note: The number of vehicles produced in Japan for 2011 and beyond assumes continuation of the average annual growth rate from 20052010. The number of vehicles exported for 2011 and beyond assumes a 50% decrease by 2020.

Towards the future Japanese economy

The Japanese economy has fallen into a vicious circle of stagnant domestic demand. Incorporation of global demand, regional economic revitalization, and transformation of industrial structure are necessary. This eliminates uncertainty by ensuring the employment of young people and the survival of medium and small businesses.

"Defensive" corporate management Stagnation in value added

1) Unearthing of latent domestic demand

2) Incorporation of global demand

Continued deflation Decline of the anticipated growth rate

Worsening employment situation Declining in labor income

5) Appropriate macroeconomic management

Vicious circle of stagnant domestic demand

3) Smoothing the transformation of industrial structure

Slumping domestic consumption

Increased anxiety about the future Higher domestic reserves

4) Elimination of national anxiety about the future

3

The world loves Cool Japan

In Europe, the United States, and Asia, there are many popular Japanese products and services (creative industries). In addition to anime and manga, these include food culture, express delivery services, Japanese-style inns (ryokan), and traditional arts and crafts. Capitalizing on the popularity of "Cool Japan" can accomplish the following: 1) unearthing of domestic demand, 2) incorporation of foreign demand, and 3) transformation of industrial structure. These accomplishments can secure new income sources and jobs, leading to regional economic revitalization. Anime and manga
The Japan Expo, held on June 30 through July 3, 2011, in Paris, received about 200,000 visitors over those four days.

The New York Anime Festival, held in New York City on October 8 to10, 2010, received about 18,000 visitors.

Food culture Ajisen Ramen

Express delivery services Yamato Transport Co.

Japanese-style inns Kagaya

Traditional arts and crafts Kumano makeup brushes

The chain serving Kumamotostyle ramen has restaurants in 63 Chinese cities.

Yamato Transport is expanding its express delivery services across Asia. Japanese-style services such as designated delivery time and refrigerated packages are highly regarded in China.

Originating in Ishikawa Prefecture, the company has opened a Japanese-style inn (ryokan) in Taipei, where it implements "Japanese hospitality."

Kumano (Hiroshima) makeup brushes are highly regarded and have many fans in Hollywood and elsewhere overseas.

Turning Cool Japan into a revenue source

Japan's fashion, food, and content are very popular overseas, but they are not necessarily profitable.

Strategic expansion overseas can turn popularity into added value, making them into revenue sources.
State of fashion from Japan
Japanese fashion magazines are very popular in China.
Rankings of Chinese women's fashion magazines (second half of 2009) 1 Ray Japan Chinese edition Japan (Shufunotomo Co.) 2 VIVI Japan (Kodansha Ltd.) 3 ef Japan (Shufunotomo Co.) 7 GLAMOROUS Japan (Kodansha Ltd.) 10 an-an Japan (Magazine House) Source: Century Chinese International Media Consultation Inc.

State of Japanese restaurants

There are about 9,000 restaurants in the United States that advertise themselves as serving Japanese food (2.5 times as many as 10 years ago). Japanese-owned restaurants account for less than 10% of the total. (They are most commonly run by immigrants from other Asian countries.) There are 200300 Japanese restaurants in Paris They are polarized between Japanese owned ("upscale") and non-Japanese owned ("mass appeal") restaurants
State of development of so-called Japanese restaurants around the world Region North America No. of restaurants about 10,000 about 6,0009,000 about 2,000 about 1,500 about 500

However, Japan's textile industry has a low export rate.

100 (Unit: million dollars)

Asia
30,000

25,000

23,870

Japan's export rate is uniquely low

18,684

Exports Imports

27,256

Europe South America Russia

20,049

20,000

14,117
15,000

13,913

9,166
10,000

Source: Council of Advisors for the Recommendation of Japanese Restaurants Outside Japan, Ministry of Agriculture, Forestry and Fisheries

5,000

485
0

2,183

3,744

Success stories
Pokmon-related products have brought in worldwide revenue of about 3 trillion yen. This is about one-fourth the size of the entire domestic content market (about 12 trillion yen) in 2009.
Source: "Japan and the World Content Database vol. 4 2010" (Humanmedia Inc.)

2:100 1:2

1:50

Japan

South Korea

1:2

France

1:2

1:2

1:0.67

Italy

Germany

Source: "Textile Handbook 2009"

3:2

1:2

1:2

Cool Japan's potential

The size of the world market for culture industries (1) will be more than 900 trillion yen (estimate for 2020).

The aim is to capture 811 trillion yen of this.

Five culture industries (fashion, food, media content, tourism, skilled manufacturing/regional specialties)
France United Kingdom 3% 287
227
2009

Russia

South Korea 4%

Germany
396
322 2020 227

10%
132

3% 297 422
337 2009 2020

172
2009

486
387 2020

China 2,281 11% 25

107

156

Unit: 100 billion yen United States

4% 2,333 1,448
1,544

2009 2020

4% 272
219
2009

425
346
2020

Turkey 4% Spain 3% Italy 5% 295

218

Japan 1% 751 863

670
2009 2020

1,550
112
2020

69
2009

10
India 11% 488 211

734 513 706

577

977
374 2009 622 2020

2009 2020

249
222
2009

362
321 2020

490
373

Saudi Arabia 8% 22 53
2020 2009

Total for target countries

(not including Japan)

2009 2020

115

150
2009

365
2020

Singapore
7%

Hong Kong 4% 18
2009

7%

9,324 423

Brazil 10% 829

Thailand South Africa 3% 46

2009

Indonesia 10%

12
2009

26
2020

27
2020

4,639 3,392 1,020 2009

6,828

283
230
2009

707
2020

8% 39 89
2020

46
2009

127
2020

65
2020

2009

CAGR(2009-2020)

2,073 2020

Strategic goal: 811 trillion yen

Media&Contents Food & Beverage Fashion

(1) Eighteen countries ("major countries") were selected by extracting countries and regions that will, as of 2020, have a GDP of at least US$ 2 trillion (about 200 trillion yen) and those with important continental cities that will have a GDP per capita of at least US$ 10,000 (about 100,000 yen). Current market size is calculated using statistical data from the OECD, the IMF, the World Bank, etc. Potential market size in 2020 is estimated from the correlation between nominal GDP (PPP) or nominal GDP per capita (PPP) based on each country's amount of population growth over the past 10 years and for the coming 10 years. Note: Because the nature of the tourism category is different from the other categories, each country's market size is not included. Additionally, because the market size in the skilled manufacturing/regional specialties category is small, size goals have not been set.

Creative industries supporting Cool Japan

Creative industries support the Cool Japan that the world loves
Examples of creative industries: Advertising, architecture, art and antiques, crafts, design, fashion, movies and videos, video games, music, performing arts, publishing, computer software and services, radio and television, (the above definitions come from the UK) plus furniture, tableware, jewelry, stationery, food products, tourism

Japan's creative industries account for 7% of all sales and 5% of employees. Almost identical to the automobile industry's 8% of sales and the consumer electronics industry's 6% or sales. If food and tourism are included, the base of the creative industries broadens even more. Size of the creative industries (2004) Sales No. of places of business No. of employees

About 45.24 trillion yen

92.7% 7.3%

211,894
95.5% 4.5%

2,154,886
94.6% 5.4%

All industries = about 621.76yen

All industries = 4,709,480

All industries = 40,128,576

Automobile industry = about 47.19 trillion yen Consumer electronics industry = about 40.14 trillion yen
Other industries

Automobile industry = 11,501

Consumer electronics industry = 25,395

Automobile industry = 947,704

Consumer electronics industry = 1,173,237

Creative industries

* Target industries (these statistics do not include the food and tourism industries) Manufacturing industries = furniture/textiles and apparel/tableware/toys/jewelry/crafts/stationery Service industries = Computer software and services/advertising/publishing/architectural design/radio and TV/music and video/movies /performing arts/design/art
Source: Survey commissioned by the Ministry of Economy, Trade and Industry (Survey on the proper form of support for lifestyle industries)

Characteristics of creative industries

Creative industries 1) are demand side rather than supply side industries, 2) consist of two phases, "creation" and "distribution," 3) are integrative industries that transcend industry and occupational categories, and 4) enlarge the size of the "pie" rather than fight over pieces of it.
* They differ from conventional "heavy" industries that emphasize the supply side, vertical integration, captive products, and share capture.

Demand side industries

Rather than meeting mechanical demand, they appeal to sensibilities. How to create domestic and foreign demand is important.

Industries that consist of "creation" and "distribution"

Build environments that bring out maximum creativity Distribute creations to the world and reward creators with profits Creating such mechanisms is crucial

Integrative industries
Players in different industries collaborate on a project basis. Development of sites where creators gather is important.

Industries that enlarge the pie

One creation brings about a chain of profits. Creation of rules that contribute to the promotion of secondary usage is important.

Approaches must be different from those for heavy industries

8

The shift towards creative industries in developed countries

Countries such as the UK and South Korea have taken major steps under political leadership towards becoming leading creative industry nations. Their ongoing initiatives are continually producing results.

UK
In 1997, thenPrime Minister Tony Blair declared Cool Britannia. The following initiatives have produced results. - Cross-sectional initiatives through the Creative Industries Task Force - Enhanced creativity for industry as a whole centered on the Design Council - Thorough support through embassies and trade and investment offices for opening overseas markets
Results
Amount of gross value added in creative industries 1.8 times as much (1997 2006)

South Korea
in 1997, President Kim Daejung declared himself the cultural president. Since then, the government and private sectors have joined to spread throughout Asia using the Cool Korea strategy. - Establishment of the Korean Institute of Design Promotion and the Creative Content Agency - Strategic marketing by the public and private sectors to promoted markets - Support for foreign market gain mainly through the Korea TradeInvestment Promotion Agency (KOTRA) President Lee Myung-bak established the Presidential Council on Nation Branding to foster culture industries at the national level.

USA
President Franklin Roosevelt announced the New Deal in 1929. As part of it, the Works Projects Administration employed 40,000 artists through Federal Project Number One (Federal One) in 1935.

Results

Creative industry exports

No. of places of business in creative industries

1.7 times as much (2000 2006)

1.4 times as much (1997 2008)

Many outstanding artists left Europe for the United States Culture developed in American communities After 1945, it was reflected in cultural and artistic industries such as Broadway musicals and Hollywood movies Etc.

Cool Japan Strategy

Through the Cool Japan Strategy, ensure employment by promoting overseas development by small and medium businesses and young designers, attracting tourists to Japan, and revitalizing local communities.

Japan
Fashion

Construction of creative ecosystems Promotion of creative cities, etc.

Asia, Europe, USA, etc.

Anime

Implementation of foreign development projects Creation of funds, etc. Connect those in charge, the workers, creators and small and medium businesses, with world markets. "Japan" is popular overseas
Parisian girls in "Goth Lolita" fashions (Japan Expo)

Students learn about clothing patterns

Students study sketching

Food culture

Regional specialties and design skill

Transfer Cool Japan's popularity to export products

Outbound

Janadriya festival in Saudi Arabia

Chefs demonstrate Japanese food

Kumano brushes

Tourism

Inbound
Tour guides for foreign tourists (Akihabara)

Coming to Japan in search of the "real thing" and the "real place" (Visits by tourists and creators)

Tourism promotion Loosening criteria for creators' visas Etc.

10

Concrete initiatives: Promotion of new collaborations

In order to develop infrastructure for the creative industries that support Cool Japan, "new collaborations" not seen in traditional "smokestack" industries must be promoted. Systemic constraints must be removed.

(1) Implementation of overseas development projects

Formation of teams that transcend industries
Collaboration with local companies and logistics industries

(2) Publicity based on the roots of Japanese culture

"New collaborations"
Collaboration between culture and industry Collaboration between "inside" and "outside" Collaboration between internet and real Collaboration between different industries and occupations

(5) Supplying of risk money

Content funds Creative funds

(3) Promotion of "creative cities"

Creative Tokyo Special creative zones Regional revitalization

(6) Building industry ecosystems

(4) Globalization of human resources

Easier creators' visas Human resources with other Asian countries

11

New collaborations 1- Overseas project 1: Overview

Projects through which support Japans superior products to develop overseas such as fashion, food, housing, regional products, traditional craftwork, and content are being implemented.
France (town development, regional products) Branding by communicating town development efforts by the disasteraffected regions based on regional natural environment, customs, aesthetics, etc.; supporting reconstruction by generating high value-added products

China (regional products, content) Nationwide uncovering of local products and their PR and sales through Chinas TV, e-commerce, etc., in collaboration with the Anata no Machi ni Sumimasu project (project in which television personalities live in each of Japans 47 prefectures)

U.S.A .and France (traditional craftwork) Supporting overseas expansion of traditional craftwork products by partnering Japans traditional craftwork with fine European brands; generating topical interest and selling to affluent Europeans using the discerning eye of well-known artists

U.S.A .(food, daily goods) China (housing) Selling rice cookers and sets of dishes and cooking utensils Promoting sales of near-future lifestyle packages based together with rice and soba, while communicating Japans on the keyword housing in cooperation with housing worldview (hospitality, warmth, stylishness) manufacturers, interior-related businesses, manufacturers of energy-saving appliances, etc. South Korea (food, regional products) Brazil (regional products) Promoting sales of foods and Developing sales channels for regional products as well as tourism France (daily goods, interior products, textiles) regional products by ascertaining to Japan by creating venues for Selecting regionally designed products using Brazirian consumers preferences exchange between agricultural and the discerning eye of a team of young by, for example, setting up satellite fishing villages in Kyushu and South creators; developing sales channels while stores in Brazil in order to promote Korean urban areas generating topical interest in Paris sales of Japanese regional Singapore (Tohoku food products) products to Brazilian hotels, Building a new Japan food brand (including food restaurants, etc. items from Tohoku) through partnerships with restaurant businesses in Singapore and top Japanese chefs India and Italy (fashion, food, design, content) Singapore (content) Supporting overseas expansion of the Tokyo Collection and overseas Promoting development of anime characters using Singapore as a base activities by young designers for dissemination to Southeast Asia Expanding the Japan fan base by branding not only fashion but also Highlighting the revitalization of the Japan brand through partnerships food and daily items with existing private sector events and relevant private organizations

India (content, fashion, food) Promoting consumer products industry markets while pursuing joint Japan-India anime production and character development

Singapore (fashion) Tying Japans street fashions to the Japan brand and test-marketing in the department stores in Singapore and through the Internet Expanding the Japanese fashion fan base through PR aimed at local consumers

12

New collaborations 1- Overseas project 2: Case study

While creating a marketing platform for small and medium Japanese apparel brands in Singapore, the project is working to build local consumer interest in Japanese fashion and constructing a network of local overseas Chinese retailers. Participating brands (15 rising apparel brands)

Bricks-and-mortar Bricks-and-mortar stores stores

Internet stores

Building fans (media mix) Combining stores, internet, events, and other media to transmit information on Harajuku Street Style Develop a "Harajuku Street Style" e-commerce site. TANGS Orchard, a 15,000 m 2 urban department store with four above ground and one underground stories. It targets customers in their mid-20s through 30s. Independent product lines and original brands are common.

13

New Collaborations 1- Overseas project 3: Case study

Connect the food industry mainly in Tohoku with restaurants in Singapore, open a pilot store, and establish a new Japanese food brand.
Lead company for producers
Japanese food pilot store

Major restaurant operator in Singapore

Humming Bird International (Miyagi ) Familiar (Miyagi ) MyT Chibajuu (Miyagi ) The Tono City Disaster Relief Network (Iwate ) Aizushoku no Renaissance (Fukushima )

Collaboration in product development & marketing

Bread Talk Singaporean food court chain

Japanese food pilot store

[Place] ION Singapores landmark [Menu] Offering a menu developed by both parties [Event] Spot workshops by Japanese chefs, etc.

14

New collaborations 1- Overseas project 4: Case study

For the Indian market with its great growth potential, the project is connecting the power of Japan's content and products (fashion, food, toys, stationery) with India and establishing new Japanese brands there.

Japan and India will commemorate 60 years of diplomatic relations in 2012. As part of the commemoration, a comprehensive Cool Japan trade fair focusing on anime characters will be held.
Content companies Products

Major companies' content small and medium companies' products Kodansha Toei Animation Pierrot Etc. Masuyamiso Daisaku Shoji Gourmandise Etc.

Major manufacturers' products already in India small and medium companies' content Thanks Lab. Bushiroad mariposa Etc. Kikkoman Showa Note Pigeon Etc.

Cool Japan trade fair

Content
Focus on animation, with video games, manga, music, etc.

Fashion
Japanese "kawaii" fashions

Food
Delicious Japanese food such as sushi

Stationery and toys

High-performance, highfunction Japanese stationery, anime character MD products, etc.

Tourism
Japan Endless Discovery

To be held in March 2012 in Mumbai's largest shopping mall, "High Street Phoenix Mumbai" 15

New collaborations 1- Overseas project 5: Case study

Design products from various areas in Japan are selected based on the judgment of teams of young creators. While the project builds interest, opens sales channels, and test markets in Paris, it will make sales in Japan as well. (365 Days Charming Everyday Things) Project promotion organization
Recruiting Business producer : and selection Yoko Kawashima, key planning members (several prominent young creators), and Secretariat : ifs

Product supply partners

Product supply partners Japanese regions and manufacturers: 149 companies (brands)

Applications and exhibition ( supplying of products)

Overall control and adjustment Formulation of the 365 concept Design and MD-ing Sales cooperation: Ringbell Co., Ltd.

Cooperation on development for Paris. Followed by sales in Japan

Selection from applicants *No separation of export-oriented and domesticoriented applicants

Exhibition and sales in Paris/sales in Japan

Exhibition (B to B) and sales (B to C) at the Bastille Design Center in Paris on January 2025, 2012

(In Japan) February Aomori A-Factory Tokyo: Eki-Naka

March Pola Museum in Ginza

Products added to catalog and sold

* In Japan, B to C only

16

New collaborations 1- Overseas project 6: Case study

In order to position and brand traditional Japanese crafts as luxury brands, this project brings together cutting-edge creators, artists, and brand curators to develop the future of crafts of unprecedented beauty, surprise, and discovery for exhibition and sale in Japan and overseas.

Craft Renaissance Project

Curation system (evaluation)

Promotion of distribution and export through expert evaluation

Brand value will be increased before distribution through expert evaluation by leading Japanese creators and persons of culture.

Exhibitions and sales in Japan and overseas

Discovering young talents and developing human resources

Using traditional crafts as the hook, the project will present Cool Japan to the international community in order to promote cultural exports.

Contributing to recovery in earthquake-stricken areas and the revival of the Japan brand

Nationwide craft artist discovery Solicitation of foreign buyers

A ripple effect will be sought by appealing directly to the wealthy, the creative class, and fashionable people mainly in Europe and the United States. Craftspeople from every area of Japan will be discovered through the 47 Club e-commerce website for regional specialties belonging to regional newspapers in all 47 prefectures. This will contribute to human resources development and the growth of small and medium businesses.

Initiations to overseas media/PR

Promotion of development using "select shops" (high-end department stores)

Overseas branding
Overseas fashion leaders and journalists will be invited to exhibitions. By allowing them to experience Cool Japan, the media will raise awareness of Japanese traditional craft brands.

Utilization of famous select shops

Famous select shops in Japan and overseas have buying expertise and networks. Handling of traditional craft products will be aggressively promoted through their discernment and selection, appealing directly to high-end consumers in Japan and abroad.

Development of business negotiations

Opening and informing high-end markets

Using tourism as the hook, the project will transmit information on Cool Japan brands including traditional crafts, food, lodging facilities, etc., in order to open high-end markets.

17

New Collaborations 2 - Publicity based on the roots of Japanese culture 1

Under the initiative of Mr. Seigou Matsuoka (Director of Editorial Engineering Laboratory, Creative Editor), the Japan Mother Program was formed as a program to edit knowledge as the source of Cool Japan. Japan Mother Program The program aims to collect stories about the revival of our mother country Japan as the Japan knowledge code, world knowledge code and Asian knowledge code in order to record and distribute stories of Japan and re-edit Japans industry, culture and economy. Concept Book A Japanese-English bilingual concept book containing the essence of Japan Mother has been created and distributed.
*Mr. Seigou Matsuoka talked about this during CREATIVE TOKYO FORUM on November 4, 2011, and received a great response.

18

New Collaborations 2 - Publicity based on the roots of Japanese culture 2

Mr. Naoki Ito (appointed as a Creative Director of METIs Cool Japan projects) created Cool Japan Daily and Mazer, web platforms to deliver Cool Japan-related information and encourage people to participate. In coordination with Japan Mother by Mr. Matsuoka, these sites aim to attract people at home and abroad. Cool Japan Daily A web portal to provide an overview of Cool Japan Strategy projects. In addition to the latest information, blogs written by renowned figures selected as Contributors are available. Mazer An open platform to create new ideas through collaboration between creators active in Japan and abroad and Japanese people.

19

New collaborations 3- Creative cities 1: Overview

The following elements are essential in order to constantly attract creative human resources, information, and capital: 1) freedom of expression, 2) tolerance, 3) communication nodes, and 4) investors. This project will establish sites (Creative Cities) where those elements are constantly and organically connected. In recent years, international competition among cities has been developing over this. Examples: Hong Kong, Singapore, Seoul

Overseas

Japanese cities
Infrastructure always able to bring out new talents and new products

Overseas

People

Creative Cities
Freedom of expression Tolerance

People

Information

Information

Creative activities
Capital
Communication nodes Investors

Capital

20

New collaborations 3- Creative cities 2: Creative Tokyo

The declaration "Tokyo will become the creative hub of Asia" was made (November 4, 2011). The following initiatives will be carried out.

The world's talent will be invited, and human resources and companies that can be active on the world stage will be fostered.
Creative Tokyo will interact and connect with other Creative Cities in Japan and abroad and establish itself as a site for international activities.

CREATIVE TOKYO FORUM

21

New collaborations 3- Creative cities 3: Tokyo

Along with companies that have approved the declarations, the project is promoting the following initiatives. Engage in citywide promotions to attract human resources, information, and capital from around the world. Promote new collaborations that transcend occupational boundaries, supporting the expansion of domestic demand and corporate development overseas. Build an environment where creative activities can be freely performed in order to boldly open the way to the future.
Tokyo University of the Arts Isetan Geidai Arts in Marunouchi Maru Bldg. New Maru Bldg. Tokyo Designers Week Art Fair Tokyo Tokyo Restaurant Week Lumine Yurakucho store Matsuya

3331Arts CYD Mitsukoshi

Japan Fashion Week Shibuya Music Festival Shibuya Parco Seibu Aoyama Gakuin Astudio United Nations University Shibuya Hikarie* Creative Cities Consortium Spiral Tokyo International Film Festival Tokyo Midtown

Ginza Fashion Week Designtide Tokyo

Roppongi Hills
Tokyo Motor Show

The above represents only some of the collaborating organizations and events

*To be completed In next year

22

New collaborations 3- Creative cities 4: Regional revitalization

Edinburgh creates 34 billion yen in tourism revenue, 31.8 billion yen in economic effects, and 5,000 jobs through the Edinburgh Festival.
Kanazawa City creates 32.8 billion yen in economic effects through the 21st Century Museum of Contemporary Art, Kanazawa. It is recognized as a UNECSO Creative City. Naoshima attracts 100 times its own population in tourists through its art museum and home art project. Edinburgh
Tourism revenue (2010): 34 billion yen Jobs (full-time) for 5,242 people Edinburgh's economic effects: 31.8 billion yen Increased regional pride in Scotland Increased creativity among children

Kanazawa City
The 1.57 million visitors during the museum's first year are more than triple the city's population. Accepted as a member of the UNESCO Creative Cities Network in 2009 (Crafts category).

Naoshima
The number of tourists increased 10-fold over 10 years, to 340,000 in 2008
(Persons)

Figure 1: Survey on attitudes of visitors to Naoshima (Naoshima Tourism Association)

Figure 2: Naoshima population trends

British Council

"Economic effects of the 21st Century Museum of Contemporary Art, Kanazawa," Kanazawa City

"Forum Fukuoka" March 31, 2010

23

New collaborations 4- Risk money supply: Content funds

Japanese content such as films, anime, TV programs, video games, books, and so on are highly regarded overseas as "Cool Japan." However, the export ratio is only 5%*. Demand from the growing nations of Asia has not been incorporated.
*This is only about one-third the export ratio of U.S. content industries (17.8%). Home game software accounts for more than 97% of the Japanese exports.

The U.S. film market (Hollywood) can be used as a gateway into the global content market, including Asia. Innovation Network Corporation of Japan is preparing to launch a new company, All Nippon Entertainment Works Co., that it will finance entirely on its own. (It was formed on paper in the end of October.) (Its expected role) Obtaining film rights and coordinating other content-related rights From the start, large-scale planning and development with an eye to global expansion will be undertaken. Proposals will be pushed through Hollywood Japan's content industries will gain knowledge of international development, and a mechanism for value to flow to Japan will be created.

World content market

Innovation Network Corp. of Japan

World film market

100% financing (6 billion yen)

US film market

Japan

Manga Dramas Games

Film Novels Toys

All Nippon Entertainment Works Co.

Japanese office (Tokyo) US office (Los Angeles)

Providing content, expertise, personnel, etc.

Stories and characters

(Partner companies) Asmik Ace Entertainment Inc., Tomy Co., Tokyo Broadcasting System Television, Inc., Dentsu Inc., Toho-Towa Co., Nikkatsu Co., Fuji Television Network, Production I.G, Mitsubishi Corp.

*Gateway to the global market

*DVDs, TV, toys, character products, etc.

24

New collaborations 5- Globalization of human resources

Globalization of the human resources that support the creative industries will be promoted. In order to welcome talent from around the world, the criteria for foreign creators to obtain visas will be relaxed. In cooperation with Singapore, India, Hong Kong, and other Asian nations, venues for the countries' young creators to present and perform will be provided.

Easier visas for creators and chefs Mutual exchanges among Asian creators and designers Establishment of an award system that will attract applications from Asia Cooperation with various countries' design awards Increase fans of Japan through collaboration with exchange student networks such as those of Ritsumeikan Asia Pacific University and Waseda University, Etc.
(For reference) "New Growth Strategy 2010" and "Policy on handling regulatory and system reform" A system for providing visas permitting the employment of high-level foreign personnel who would be employable but cannot qualify for a visa because they do not meet academic or occupational criteria under current standards is being examined. A decision is expected during FY2011. 25

New collaborations 6- Industrial ecosystems: Creative industries ripple effect

The economic effect on systems in which creative industries collaborate with other industries is large. The project will work for the adoption of a system for organic collaboration among industries.
Real industries
Media hardware market 4.68 trillion yen

Example: Relationships with domestic content industries (20082009)

Character market 22.99 trillion yen

(1.93 trillion excluding pachinko)

Manufacturing industries

Live content market 521.7 billion yen

Character products market 1.38 trillion yen Media content market 12.12 trillion yen

Service industries

Theme park and amusement market Manga/anime/video game 542 billion yen market 1.77 trillion yen

Content industries are information and services rather than "real" industries, but they form a spillover market that affects real industry through four fields (the communication, character, media hardware, and live markets). The market scale of those five fields is 57 trillion yen. It is larger than the approximately 50 trillion yen size of the civil engineering and construction market, including public investment.

Advertising market 5.36 trillion yen

Communication market 14.87 trillion yen

Information industry

Created by the Ministry of Economy, Trade and Industry from figure in "Japan and the World Content Database vol. 4 2010" (Humanmedia Inc.)

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Reference documents

Concrete examples of trans-industry collaboration

IT content creativity: pixiv
pixiv is Japan's largest social networking service for illustrators (both pro and amateur). It has 3.2 million members. The driving force behind pixiv are the "chains of creativity" created when users create accounts, share their own illustrations, evaluate those of other users, collaborate, and so on. A number of users who were popular on pixiv have gone on to make major professional debuts. About 10% of the 3.2 million users live overseas. They access the site from well over 100 countries.

IT skilled manufacturing creativity: Fablab

FabLabs are manufacturing workshops with fabrication equipment such as cutting machines and 3D printers that are available fro public use. There is a worldwide network of such sites. To date, there are FabLabs in more than 50 locations in over 20 countries, including developing nations. By sharing designs and knowledge around the world, everyone from children to experts can freely collaborate on skilled manufacturing.

Services creativity: nine hours

Based on analysis that found that customers want "capsule hotels" to be "comfortable sleeping hubs," the company invested heavily in a redesign by a designer named Shibata. The design concept is "1 hour for showering + 7 hours for sleeping + 1 hour for getting ready = 9 hours" provides a comfortable place to sleep. They are fully booked by young people and foreigners.

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Reference materials 1: Policies to promote creative industries in the UK

In the UK, Tony Blair declared "Cool Britannia" in 1997. Subsequently, results were achieved through 1) Cross-sectional initiatives by the "Creative Taskforce" 2) Enhanced overall industry creativity with the "Design Council" at the core 3) Thorough support for opening overseas markets by embassies and UK Trade and Investment Team.
Early 1990s
Shift in industrial promotion stance Manufacturing industry promotion Service industry promotion

1997
Policy implementation system

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

UK policies for the promotion of creative industries

Blair Government invents the slogan "Cool Britannia"

Comprehensive policy proposals based on cross-sectional industry analysis Creative Industries Taskforce
Mapping document (1st round) Mapping document (2nd round)

Broken up after achieving goals

Creative Economy Program

Working Group white paper

Staying Ahead white paper

Creative Britain policy

Design Council
Free business consulting services advising companies on what kind of innovation is possible when they utilize design

Design Council
The Design Council selects and trains business consultants with expertise in design to establish Designers Associates (about 50 registered as of now)

UK Trade and Investment Team

Policies emphasized by UK Trade and Investment (UKTI)

Clarifying the goal of "selling design services" Scope of projects includes linking them to business and providing support until returns are realized Plans set for medium periods of 35 years

Designers Associates

Proposing measures on current business issues and use of designers in target companies

Target companies

Designers Trade and Investment Team, The UK embassy in Japan (under UKTI)

To this point, companies pay no fees. If a company accepts a proposal, then it pays a fee to the designer when it commissions the project

Gross value added of creative industries: 1.8 times as high Creative industries exports: 1.7 times as high No. of creative industries places of business: 1.4 times as many

(1997: 630 billion yen; 2006: 1.15 trillion yen) (2000: 190 billion yen; 2006: 320 billion yen) (1997: 112,900; 2008: 157,400)

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Reference materials 2: Policies to promote creative industries in South Korea

In South Korea, President Kim Dae-jung declared himself the "cultural president" in 1997, the year of the currency crisis. Since then, the government and private sectors have joined to spread throughout Asian markets using the Cool Korea strategy. 1) Establishment of the Korean Institute of Design Promotion and the Creative Content Agency 2) Strategic marketing by the public and private sectors to emerging markets Creation of a Korean style boom, with integrated marketing of fashion, content, and consumer goods Established brand image in the order Shanghai and Hong Kong Vietnam and Thailand India 3) Thorough support for foreign market gain mainly through the Korea Trade-Investment Promotion Agency (KOTRA) President Lee Myung-bak established the Presidential Council on Nation Branding to foster culture industries at the national level.
1993
Policy implementation structure

1996
Korean Design Promotion Law passed

1997
South Korea Institute of Design Promotion (KIDP) established

1998
Declaration of 21st Century Design Era President Kim Dae-jung declares himself the "cultural president"

1999
National government hosts First Industrial Design Conference
President Kim Dae-jung and UK Prime Minister Blair make joint announcement

2000

2001
Declaration of Korean Design Year

2002
Establishment of Korean Creative Content Agency (KOCCA)

2003
Third Five year Design Promotion Plan President Roh Moo-hyun declares that South Korea will be one of five world cultural powers
Ending of all restrictions on exports of TV dramas

2004

2005

2006

2007

2008
Fourth Five year Design Promotion Plan President Lee Myung-bak establishes Presidential Council on National Branding

Declaration that Korea will be a major design power within 5 years

Content Korea Vision 21 announced

Policies to promote creative industries in South Korea

First Five year Design Promotion Plan

President Kim Daejung announces "Korean design" and "design power" as keywords for industrial promotion

Second Five year Design Promotion Plan

Hong Kong consumers' opinions of Japanese and South Korean products

Japanese products Are ahead of the times Have vitality and power South Korean products More people felt that South Korean products than Japanese products "Are ahead of the times" and "Have vitality and power"

Source: Hakuhodo, "Global Habit Survey 20062009

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Reference materials 3: Policies to promote creative industries in the United States

In the United States, President Franklin Roosevelt announced the New Deal in 1929. As part of it, the Works Projects Administration employed 40,000 artists through Federal Project Number One (Federal One) in 1935. This promotional policy brought about the following results. 1) Many outstanding artists left Europe and other areas for the United States 2) Culture developed in American communities 3) After 1945, it was reflected in cultural and artistic industries such as Broadway musicals and Hollywood movies

Policies to promote creative industries in the United States

1929
The New Deal (implemented by the Roosevelt Administration)

1935

1945 and beyond

Works Progress Administration (WPA)

Federal Project Number One (Federal One) employment program for artists It comprised five projects, for art, music, theater, writers, and a historical records survey and employed 40,000 artists

It caused American cultural and artistic industries such as Broadway musicals and Hollywood movies to flourish, generating an enormous economic effect, and spreading American democratic ideals around the world as a form of soft power.

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