Germany's Driving Force of Domestic Affairs and the State Aim

Author Name IWAOMTO Koichi (Senior Fellow, RIETI)
Creation Date/NO. July 2016 16-P-009
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This paper addresses Industrie 4.0 - The Impact of the German 4th Industrial Revolution, Nikkan Kogyo Shinbun, 2015. In order to clarify the origin of the idea of Industrie 4.0, this paper is retroactive to the unification of East and West Germany in 1989. Currently, the system of the Internet of Things (IoT) has been disseminated in various fields globally. Against this backdrop, this study also elucidates the reason why Germany proposed its plan to focus on the manufacturing floor, which is its driving force as a nation as well as its national goal. Finally, this paper compares Japan with Germany. In Japanese companies, there is a lack of understanding between managers; if capital is invested in the IT fields, cost cutting continues to be prioritized instead of earning profits. That being the case, this thesis points out Japanese manufacturing is at a very high risk of lagging behind its European and U.S. counterparts.