Basic Research for a New Industrial Policy

The Great East Japan Earthquake served as an opportunity to illuminate the problems that had long existed in Japan. The overvalued yen and the high effective corporate tax rate had been cited as factors putting Japanese companies at a disadvantage in competing with their overseas rivals. Forthcoming changes in the nation's energy policy and other challenges brought on by the earthquake spell a harsher business environment going forward. Against this backdrop, concerns have been raised over the acceleration in the offshoring of operations from Japan to lower cost economies, particularly among manufacturers. As the Japanese economy undergoes structural changes, shifting weight from the manufacturing sector to the service sector, it is necessary to create new industrial sectors to generate jobs. In this project, we will conduct basic research to explore a new industrial policy by taking theoretical and empirical approaches, based on the observations described above.

August 22, 2011 - July 31, 2013