RIETI is Japan's first policy think tank established as an incorporated administrative agency. It was launched in 2001 with the aim of conducting effective and efficient research on economic and industrial policy. This year, RIETI enters the second year of its sixth medium-term plan. This plan sets an ambitious goal of achieving policy contributions as its most important mission, while further advancing our world-class research, regarded as one of the top economic institutes in Asia.
The most important foundation for policy contribution is high-quality economic research. At RIETI, 69 research projects are organized into seven programs, each overseen by a program director. Aiming to invigorate research projects and enhance contributions to policy, regular dialogues have been initiated since last year between the program directors, RIETI executives, and relevant bureaus and divisions at METI.
Furthermore, since last year RIETI has begun working on various initiatives to fulfill new policy needs, such as constructing the 2040 Industrial Structure Forecasting Model, which serves as the basis for deliberations by the Committee on the New Direction of Economic and Industrial Policies under METI’s Industrial Structure Council; research into supply chain vulnerabilities that contribute to economic security policy; research into resource allocation and corporate growth, and strengthening our policy advisory functions through the EBPM Center.
I played a leading role in large-scale collaborative research project to develop the 2040 Industrial Structure Forecasting Model. From my experience, I know that high-quality research requires the pursuit of originality, and that immersing oneself in it brings satisfaction as a researcher. With the construction of the 2040 Industrial Structure Forecasting Model, we are beginning to achieve such high-quality results by conducting theoretical and empirical analysis based on newly collected data on the impact of AI and robots on the industrial structure and the labor market.
The current world is at a turning point due to the Trump administration’s “America First” policies, as well as the escalating tensions between the Sino-Russian camp and the Western countries. In addition, the Japanese economy remains in the most critical situation after the period between the opening country to the world and the Meiji Restoration and the period of the post-World War II turmoil, due to 30 years of stagnation which has left Japan significantly behind other countries on the technological frontier. However, a shift in the tides is evident with the transformation of the lifetime employment system, an increase in regular employment for women, the reshoring of manufacturing industries, a recovery in capital investment, the strengthening of economic security, and exit from deflation. Moreover, the existence of a large gap between Japan and the technological frontier countries can itself be seen as an opportunity for Japan to catch up, just as it was during the two previous crises. In order to overcome this turbulent world and escape economic stagnation, collaboration between industry, government, and academia is essential, as was the case during the two previous economic crises. In this new era where past precedents no longer apply, it is necessary for academia with a medium- to long-term perspective to support policy changes, which is exactly why the importance of RIETI is increasing.
RIETI will actively provide policy advice by strengthen its advisory functions through the EBPM Center, conduct analyses that open up “new direction of economic and industrial policy,” and propose institutional reforms from a medium- to long-term perspective. Ultimately, we aim to become a research institute that is the first port of call for policymakers and industries seeking advice and research results.
April 2025
