With the progress of globalization, East Asia has achieved remarkable development as the workshop of the world. But in order to sustain its growth in the 21st century by overcoming the current global financial and economic crisis, East Asia - including Japan - must transform itself from a manufacturing powerhouse into a creativity powerhouse. To achieve that end, it is necessary to boldly implement various reform initiatives that would increase diversity and mobility throughout Japan's socioeconomic systems, promote innovation on a sustainable basis, and improve productivity. Furthermore, it is necessary to build a system for generating and exchanging knowledge across East Asia, not only in the spheres of research and education, but also in other areas such as the economy, industry, business, and culture. Of course, this system should be open to the world.

I believe that RIETI can play an important role in helping Japan achieve this transformation. As an institute where researchers can simultaneously pursue academic studies and policy research, RIETI needs to address a broad array of domestic and international issues. In carrying out this task, we are capitalizing on the strength of RIETI as an institute having the capability of conducting empirical research firmly based on data. RIETI is engaged in a broad range of research projects conducive to the revitalization of the Japanese economy and to the improvement of labor productivity. Specific examples include a comparative study of innovation in Japan, the United States, and Europe based on inventor survey, a comparative study of service sector productivity in those same regions, and a study of offshore outsourcing.

RIETI seeks to deepen exchange between its researchers and their counterparts in the course of individual research projects. At the same time, through joint seminars, RIETI actively promotes exchange with other research institutes both in Japan and abroad including those based in China, South Korea, Taiwan, Europe, and the U.S.

As a new development, RIETI established a global economic crisis forum in January 2009. Based on new findings from its research activities and drawing on the accumulation of other related research results, RIETI has been actively disseminating information on the Japanese and world economies regarding their challenges and future courses.

This year marks the fourth year of RIETI's 2nd Medium-Term Plan (April 2006 - March 2011). I would like to take this opportunity to express a renewed pledge to make the utmost effort to make RIETI an international platform for knowledge creation and the exchange of ideas.