japan's national it strategy and the ubiquitous network

Japan’s National IT Strategyand the Ubiquitous Network

No. 97 November 1, 2005

Teruyasu MURAKAMI

Copyright 2005 by Nomura Research Institute, Ltd. 1

NRI Papers No. 97November 1, 2005

Japan’s National IT Strategyand the Ubiquitous Network

Teruyasu MURAKAMI

T he term ubiquitous has thoroughly penetrated into Japanese society, and most IT (informationtechnology) companies have been promoting ubiquitous-related projects. These activities

have begun since the beginning of the 21st century. While the term “ubiquitous” was first used inthe United States, the concept of the ubiquitous network was created in Japan. Through indepen-dent development, the ubiquitous network is now being established as an independent IT paradigm.

Since 2004, the global evolution of the ubiquitous paradigm outside Japan has become eminent.The most active moves are taking place in Korea, which is evolving the u-Korea promotion strat-egy. Recently, China and other Asian countries have also started similar activities. The Japanesegovernment made full use of the venue of the World Summit on the Information Society (WSIS)of the United Nations in announcing the prospect of the ubiquitous network society and the “u-Japan Policy.” (u-Japan stands for ubiquitous network Japan.)

In Japan, the ubiquitous network paradigm has been successively adopted as the basic conceptof the mid- and long-term vision since 2004: “u-Japan Strategy” as the information and communi-cations policy, “Vision for Information-based Economy and Industries” as the industrial structurepolicy, “principles for formulating the Basic Policy for Science and Technology” as the scienceand technology policy and “UNS Strategy Program” as the research and development strategy inthe ICT field (UNS stands for ubiquitous network society.)

In view of the actual situation, such as the dissemination of the ubiquitous network paradigm,its global evolution, and its political evolution, the following three points should constitute thecore factors of the next-phase national IT strategy to be formulated around the end of 2005: (1)changing the name “e-Japan” to “u-Japan,” (2) shifting the strategy focus from “utilization strat-egy” to “value creation strategy,” and (3) focusing attention on “measures related to security, pri-vacy and network crime.”

I Penetration of the Ubiquitous Paradigm in Japan1 Ubiquitous Paradigm Taking Root in Japanese Society2 Ubiquitous Paradigm Taking Root in Japanese Companies

II Global Evolution of the Ubiquitous Network1 u-Korea Promotion Strategy and IT839 Strategy in Korea2 Europe and the United States Yet to Start3 WSIS 20054 Gradual Penetration Also Seen in China

III Evolution of the Ubiquitous Network in IT Policy1 u-Japan Policy2 Vision for Information-based Economy and Industries3 Principles for Formulating the Basic Science and Technology Policy4 UNS Strategy Program

IV Next-Phase National IT Strategy and the Ubiquitous Network1 Future of the Ubiquitous Network Paradigm2 Ubiquitous Network as the Core of Next-Phase IT Strategy


I Penetration of the UbiquitousParadigm in Japan

More than five years have elapsed since NomuraResearch Institute (NRI) started to address the theme ofthe ubiquitous network. Various moves have occurredduring these five years. The most important among thesemoves related to the ubiquitous network after the publi-cation of my previous paper, “Ubiquitous Networking:Business Opportunities and Strategic Issues” (NRIPapers No. 79, August 2004), included the global evo-lution of the ubiquitous network paradigm and the con-tribution to the nation’s mid- and long-term informationand communications policy, industrial structure policy,science and technology policy, etc.

This paper introduces these two aspects in detail andexamines the role that should be played by the ubiqui-tous network paradigm in the nation’s IT1 strategy,which is now being prepared.

Before discussing these details, this chapter firstoutlines how deeply the ubiquitous paradigm has pen-etrated into the society and corporate activities ofJapan.

1 Ubiquitous Paradigm Taking Root inJapanese Society

Professor Masahiko Sato of Keio University conductedan interesting survey called “Japanese Switch.”2 Thisproject used the mobile Internet to ask forced-choicequestions, i.e., Yes or No, or A or B, of more than30,000 ordinary Japanese citizens, and attempted toidentify the direction of the concepts of the Japanesepeople on an almost real-time basis. To the question of“Where do you run if you feel scared while walking atnight?” 29 percent of the respondents selected “koban(police station)” and about 70 percent chose “conve-nience store.” To the question of “Do you want to livein Japan in your next life?” 60 percent answered “yes”and about 40 percent selected “no.”

As part of the Japanese Switch project, an interestingquestion of “Do you know what ’ubiquitous’ means?”was asked on March 25, 2004. To this question, 24 per-cent of the respondents answered “yes, I know what itmeans,” and the remaining 76 percent answered “no,what does it mean.” These findings indicate that aboutone-fourth of average Japanese people know the mean-ing of “ubiquitous.”

This question has not been asked of IT specialists oremployees of IT companies, such as Sony or Hitachi,but was asked of ordinary Japanese people. Besides,there is a possibility that the respondents who “haveheard the term ubiquitous, but do not know its mean-ing” might be included in the 76 percent who selected“no, what does it mean.” While this might also happenin Korea, such a situation cannot even be imagined in

other countries. To this extent, the term ubiquitous haspenetrated into Japanese society.

In my previous papers3 since 2003, the focus remainedon the concept of the ubiquitous network. However, thereplies of the above 24 percent do not necessarily referto the ubiquitous network alone, but are based on a com-prehensive picture involving a variety of concepts relatedto ubiquity including “ubiquitous computing” and “theubiquitous information society.”

Accordingly, separate from the ubiquitous networkparadigm, this paper refers to overall ubiquitous-relatedconcepts covering extensive fields, such as the ubiqui-tous network, ubiquitous computing and ubiquitousinformation society and more than thirty other ubiquitous-related concepts, as the ubiquitous paradigm.

In this sense, that 24 percent of Japanese respondentsknow the term ubiquitous does not necessarily meanthat they know of the ubiquitous network paradigm nordoes it mean that they have a full understanding of theubiquitous paradigm. However, these findings clearlyreveal that, while almost no Japanese people were famil-iar with the term ubiquitous in 2000, an extremely largenumber of people now know its meaning.

Figure 1 shows the frequency of the appearance ofubiquitous-related articles in three economic newspa-pers (Nihon Keizai Shimbun, Nikkei Sangyo Shimbun,Nikkan Kogyo Shimbun) and reveals increasing interestin the ubiquitous paradigm in the industrial sector.

In 1988, the term ubiquitous was first used in the ITfield as a new paradigm. Mark Weiser, a chief technol-ogist at Xerox’s Palo Alto Research Center (PARC),first articulated this concept. It was not until 1991 thatthis term first appeared in a Japanese publication.Weiser’s paper published in Scientific American wastranslated and published in Nikkei Science (translatedby Sho-ichiro Asano).4

However, this topic quickly disappeared withoutbeing publicized by newspapers and, with few excep-tions, it was not until 1999 that any special attentionwas paid to the term ubiquitous computing as advo-cated by Weiser. While a small number of related arti-cles did appear, most of these were used to explain theconcept of a product when Fuji Xerox introduced anew type of photocopier. No signs for the expandedusage of this term were evident.

In contrast, NRI created a new concept that was dif-ferent from that of Weiser and, in 1999, started researchon the ubiquitous network that focuses on the ubiquityof access to networks (especially, the Internet). Thisconcept was first introduced in the form of the paperjointly written by Akihisa Fujinuma and myself andtitled “Ubiquitous Networking: Towards a NewParadigm” (NRI Papers No. 2, April 2000).

As shown in Figure 1, it was in 2000 that attentionstarted to be given to the ubiquitous theme at least inJapan’s industrial sector (as well as the rest of theworld). An explanation has frequently been made that

NRI Papers No. 97 November 1, 2005

Japan’s National IT Strategy and the Ubiquitous Network


this theme has its origin in the concept developed byWeiser and that the concept was exported to Japan.However, Weiser’s idea is different from that nowbeing advanced by NRI and is also different from theconcept adopted in the government’s “u-Japan policy,”which is explained in subsequent sections of this paper.

NRI’s ubiquitous network theory emerged with thebasic aim of improving the international competitive-ness of the Japanese IT industry. The background con-sisted of the extensive penetration of the Internet, thespread of mobile Internet service offered by NTTDoCoMo, which was started in February 1999, andindications that video game machines, TVs, kiosk ter-minals, etc., could be connected to a network.

The term ubiquitous started to take root in Japan ataround the same time that NRI commenced research in1999, began to publicize this concept in 2000 andNihon Keizai Shimbun adopted “Launching the Era ofthe Ubiquitous Network” as the theme of its forum,“Global Information Summit 2001.” As is clear fromFigure 1, the term ubiquitous started to appear often inpublications from around this time.

Another clear fact is that this term began taking rooton an accelerating and accumulating basis in Japan’sindustrial sector in 2000. It is a well-known fact thatProfessor Ken Sakamura of The University of Tokyoadvocated a similar concept by using the phrase “com-puter anywhere” before Weiser’s announcement.Starting around 2002, Sakamura began talking activelyabout ubiquitous computing, and significantly con-tributed to the spread of the ubiquitous paradigm.

The frequency of 554 appearances in 2004, as indi-cated in Figure 1, suggests that executives and busi-nesspersons who read the three newspapers saw morethan three ubiquitous-related articles every two days.

Because this figure comes from only newspaper arti-cles, it is thought that people saw this term more oftenif ubiquitous-related advertisements, which have beenrapidly increasing these days, were included.

2 Ubiquitous Paradigm Taking Root inJapanese Companies

Under these circumstances, it was around 2001 that cor-porate activities dealing with the ubiquitous paradigmbegan to show vitality. These accelerated activities werefirst reflected in such occasions as announcements ofnew products, exhibitions and presentations of relatedproducts and solutions at forums targeted at customersand exhibitions at trade shows. Behind these specialevents, it is assumed that efforts were actively underwayat each company including activities to promote researchand development and to organize project teams.

In April 2002, such corporate activities were madepublic. Three companies, i.e., Hitachi, Sony and NihonUnisys, simultaneously announced that they had estab-lished new organizations prefixed by the term ubiqui-tous. There must be a specific idea or managementstrategy behind the creation of an organization prefixedby a term that is not familiar among most people. In thecase of exhibiting products at trade shows to test thereaction of people or inaugurating a research and devel-opment project within a company, the strategy can beimmediately changed if the results were not promising.However, a relatively long-term approach is assumedfor the establishment of a new organization, and a justi-fying explanation is required of management if such anewly established organization is to be closed down.

In fact, it was Uchida Yoko Co., a company offeringoffice and education solutions, that first established an



(Articles)600

500

400

300

200

100

01975~89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 (Year)

0

554

504

307

0 00 1 1 1

104

240 10 0

Mark Weiser, “The Computer for the 21st Century” (9/1991)

Mark Weiser, “Ubiquitous Computing” (1988)

NRI, Ubiquitous Network (12/2000)NRI, Ubiquitous Networking: Towards a New Paradigm (4/2000)

Global Information Summit 2001 organized by Nihon Keizai Shimbun (3/2001)

Ken Sakamura, Yubikitasu Konpyuta Kakumei (Ubiquitous Computer Revolution) (6/2002)

Note: The three financial newspapers are Nihon Keizai Shimbun, Nikkei Business Daily and Nikkan Kogyo Shimbun.

Figure 1. Frequency of Appearance of Ubiquitous-Related Articles in Three Financial Newspapers


organization with the ubiquitous prefix in Japan.Uchida Yoko created a “ubiquitous sales department”two years before the three companies mentioned aboveestablished new organizations and conducted salesactivities for office solutions using ubiquitous as acatchword. The company is continuing its activities toachieve the concept similar to Weiser’s.

Nevertheless, the inauguration of new organizationsby the three companies in April 2002 has had symbolicimplications. Hitachi established the UbiquitousSolutions Headquarters and Ubiquitous PlatformSystems, Sony established Ubiquitous TechnologyLaboratories and Nihon Unisys established theUbiquitous Business Center. With these moves as thestart, Japan’s IT-related companies successively inaugu-rated ubiquitous-related organizations. These includeRicoh Co., Fujitsu and NRI Data Services in October2002, Mitsubishi Electric Corp., Fuji Xerox Co., NTTDoCoMo and Yokogawa Electric Corp. in 2003 and

NEC Corp. in 2004. As such, almost all of Japan’s IT-related companies have had ubiquitous-related organiza-tions. Because the details of the establishment ofubiquitous-related organizations up through April 2004were indicated in my previous paper,5 Table 1 lists orga-nizations established since then. As indicated in Table 1,moves to establish new organizations are continuing andcompanies operating varying types of businesses areestablishing such organizations. Of course, many com-panies are conducting similar activities without using theterm ubiquitous. At present, IT-related companies inJapan that are not conducting ubiquitous-related activi-ties clearly belong to the minority.

Table 2 lists the keywords used by Japan’s IT-relatedcompanies based on the materials contained on the web-site of each company. These keywords represent activi-ties that each company intends to advance with respectto the ubiquitous paradigm. Subtle differences are seenin the fields to which the ubiquitous paradigm is applied



Note: Cases in which existing organizations were reorganized and/or their names were changed are included. (Some organizational names were translated by the author to English from the original Japanese.) Source: Compiled based on the materials released by each company.

Table 1. Major Companies Establishing Ubiquitous-Related Organizations (Since May 2004)

2004 June

July

October

October

October

October

December

2005 April

April

April

April

April

April

June

NTT DoCoMo (Products & Services Division, Ubiquitous Services Department)

Fujitsu Access Limited (Access Network Business Group, Ubiquitous Access Division)

Hitachi Transport System, Ltd. (Automotive & Ubiquitous Systems Development Department)

Yokogawa Electric Corporation (Business Development Center I, Ubiquitous Security PJT)

Kyowa Exeo Corp. (IT Solutions, Ubiquitous Computing)

NEC Corp. (Ubiquitous Software Division)

Japan Telecom Co. (Product Unit, Ubiquitous Transformation Service Department)

Japan Telecom Co. (Ubiquitous Business Unit)

NEC Soft, Ltd. (Ubiquitous Systems Division)

Fujitsu (Ubiquitous Products Business Group, IPMT Technology Development Office)

T. D. I Co. (Embedded Ubiquitous LSI)

NRI Data Services (Business Promotion Division, Ubiquitous Project Department)

Hitachi Transport System, Ltd. (Hitachi Logistics Business Development Headquarters, Automotive & Ubiquitous Systems Development Department)

Japan Telecom Co. (Ubiquitous Business Unit, Ubiquitous Engineering Department)

Dateestablished Company name (ubiquitous-related organization name)

Source: Compiled based on the materials released by each company. Some were translated by the author to English from the original Japanese.

Table 2. Keywords Used by Japanese Companies for Activities Related to the Ubiquitous Paradigm

Company

Fuji Xerox

Fujitsu

Hitachi

KDDI

Matsushita Electric Industrial Co.

Mitsubishi Electric Corp.

NEC

NTT

Nihon Unisys

Ricoh Co.

Sharp Corp.

Sony Corp.

Toshiba Corp.

Ubiquitous-related keywords

Ubiquitous Computing

Ubiquitous Near Future Corner

“uVALUE” supporting the creation of value of the ubiquitous information society

Ubiquitous Solution Company

“Leap 21 Plan” consisting of two major business visions, one of which is “Realization of Ubiquitous Network Society”

Ubiquitous Secure Solution

“U can change”: what can be done by ubiquitous; what can be done by group

Vision for the Ubiquitous Era: Envisioning a new-generation optical network technology as a gateway to the world of broadband-based resonant communication

System Architecture for the Ubiquitous Era

Ubiquitous Solution Research

“Connecting and Expanding,” Sharp’s basic idea in the ubiquitous age

Ubiquitous Value Network

Toshiba Ubiquitous World


by each company, and the stance of activities also varies.Of course, the messages directed at the public do notnecessarily conform to actual business evolutions, andthere may be time differences between the use of key-words and actual business operations. However, hereagain, this survey suggests that almost all major IT-related companies are involved with the theme of “ubiq-uitous” in a specific manner.

II Global Evolution of the Ubiquitous Network

One of the noteworthy changes concerning the ubiqui-tous network since 2004 is the global evolution of theubiquitous network paradigm. Progress in Asia is dif-ferent from that in other countries. Even in Asia, somecountries are enthusiastic about developing this themewhile some countries are less so.

1 u-Korea Promotion Strategy and IT839Strategy in Korea

Signs of the global evolution of the ubiquitous networkwere first seen in Korea.

Two of three books published by NRI during theperiod from 2000 to 2002 were translated into Korean inNovember 2002 and February 2003. Furthermore, theseminar held by NRI’s Seoul Branch in 2003, in whichDirector Won-Gyu Ha of Korea’s Electronics andTelecommunications Research Institute (ETRI) whotranslated these books also participated, was attendedby most major IT-related companies in Korea, indicat-ing that country’s growing interest in this theme.

Subsequently, the Ubiquitous IT Korea Forum wasorganized in 2004 in Korea, and ETRI President Chu-Hwan Yim became chairperson of the forum. Theforum consists of more than 50 member organizationsincluding companies, universities and research insti-tutes, and is engaged in the dissemination and promo-tion of ubiquitous IT.

Measures related to the ubiquitous network are alsobeing taken at the government level. The Ministry ofInformation and Communication, which is the compe-tent authority for information and communications inKorea, has sponsored the “digital home plan.” Thisplan calls for the installation of digital home applianceswith communications capabilities in apartment housesas an overall, integrated system. Similarly, the Ministryof Commerce, Industry and Energy is promoting the“smart home plan.”7

The “u-Korea Promotion Strategy” announced in2004 represents the national information and communi-cations policy of Korea that encompasses these moves.This strategy considers the period from 1995 to 2002as that for pursuing the cyber Korea vision, the periodfrom 2003 to 2007 as that for implementing broadbandIT Korea and the period after 2007 as that for realizinga ubiquitous Korea (u-Korea) intelligent infrastructuresociety. Through the “IT839 Strategy,” the governmentis aimed at establishing a u-Korea society.

The highest priority goal of the national economy inKorea is to achieve a per-capita GDP of 20,000 dollars.Accordingly, the “u-Korea Promotion Strategy” isexpected to contribute to this achievement. The“Ubiquitous IT839 Strategy” defines specific measuresto achieve this goal with the aim of creating a favorablecycle for the development of the IT industry by linkingand developing eight IT services, three IT infrastruc-tures and nine new growth engines (Table 3).

First, the eight IT services include (1) 2.3-GHzWiBro mobile Internet, (2) satellite and terrestrial wavedigital multimedia broadcasting, (3) home network ser-vice, (4) telematics (vehicle-mounted information sys-tems), (5) RFID (radio frequency identification), (6)W-CDMA (next-generation mobile phones), (7) terres-trial digital TV and (8) Internet telephony (VoIP).Specific goals have been set for each service. In addi-tion to detailed plans for 2004, there are goals from themid- and long-term perspective, such as home networkservice in 10 million households, 5 percent share ofRFID in the world market and 4 million VoIP users.



Notes: GHz = gigahertz, IPv6 = Internet Protocol Version 6, RFID = radio frequency identification, W-CDMA = a communications system used in the third- generation mobile system.Source: Ministry of Information and Communication of Korea.

Table 3. Korea’s IT839 Strategy

• 2.3 GHz portable internet service

• Digital multimedia broadcasting (DMB) service (satellite and terrestrial)

• Home network service

• Telematics service

• RFID-based service

• W-CDMA

• Terrestrial digital TV

• Internet telephony

• Broadband convergence network

• Ubiquitous sensor network

• IPv6

Eight services Three infrastructures

• Fourth generation (next-generation) mobile communications devices

• Digital TV

• Home network

• IT SoC (system-on-chip)

• Next-generation PC

• Embedded software

• Digital content

• Telematics

• Intelligent Service Robot

Nine new growth engines


Plans also call for the nationwide dissemination ofterrestrial digital TV by the end of 2005 (2011 inJapan), 4.2 million satellite digital multimedia broad-casting subscribers by 2007 and the nationwide devel-opment of terrestrial wave multimedia broadcasting bythe latter half of 2006. Through the achievement ofthese goals, Korea expects to develop a digital broad-casting market at a single stroke, and intends to developrelated equipment ahead of all other countries for salein the world market.

The three IT infrastructures cited in the strategyinclude (1) the broadband convergence network, (2) theubiquitous sensor network and (3) IPv6 (Internet proto-col version 6). The specific goal of the broadband net-work by 2010 is 20 million subscribers at the speed classof 100 megabits per second. The target for the ubiqui-tous sensor network is to disseminate chips priced at 10cents or less by 2007. The aim for IPv6 is to achieve atotal shift to this new version by 2010.

The nine new growth engines indicated in the strategyinclude (1) fourth-generation mobile communications,(2) digital TV, (3) home network, (4) IT system-on-chip (SoC), (5) next-generation PC, (6) embedded soft-ware, (7) digital content, (8) telematics and (9)intelligent service robots. Specific goals are also set foreach item. These include developing fourth-generationmobile phone products by 2007, becoming one of theworld’s three leading countries for system-on-chip inwhich all components of a computer system including acentral processor and memory are integrated into a sin-gle chip, increasing the domestic production rate forembedded software to more than 50 percent, and acquir-ing a 20-percent share of the world’s market for intelli-gent service robots.

To achieve these goals, the strategy calls for govern-ment initiatives in actively implementing industrialpolicies, such as model projects, supporting technologi-cal development and providing subsidies. While thesegoals and targets simply represent the country’s visionand it is not certain whether these goals and targets willactually be implemented, it is certain that efforts toachieve these goals and targets are well under way withgovernment organizations playing central roles. Itappears that limiting the strategy to achieve the ubiqui-tous network society to 20 (8+3+9) policies mightentail risks. However, these 20 measures cover most ofthe fields of technology that are now considered impor-tant. If appropriate, flexible responses could be made inthe future depending on the actual situation, this 839implementation plan can be regarded as realistic andstrategically appropriate.

Under these circumstances, the Second InternationalUbiquitous Computing Symposium was held in Seoul inNovember 2004.8 At this symposium, participants fromnot only Korea and Japan but also China, Singapore andAustralia were requested to make known the policies oftheir own countries in relation to the ubiquitous paradigm.

At the TV conference held concurrently with thesymposium, Minister Chin Dae-je of the Ministry ofInformation and Communication expressed his strongintention to create an environment where Korea couldserve as a test bed and showcase for the world’s ubiqui-tous technology. While Minister Chin announced the“Ubiquitous IT839 Strategy” at this time, the basic pol-icy of the strategy in terms of concentration and selec-tion was clear, and it was impressive that he presentedthe extremely strategic message in his own words. Hismessage also symbolized the efforts of Korea to contin-uously pursue the ubiquitous paradigm in a globalframework without being limited to the domestic mar-ket.

2 Europe and the United States Yet to Start

In the United States and Europe, a tone of ridiculeregarding the ubiquitous paradigm is no longer evident.However, it cannot be denied that the focus of techno-logical development in the IT field in the United Statesleans towards security after the terrorist attacks ofSeptember 11, 2001, and there is no evidence of seri-ously dealing with the ubiquitous paradigm.

What is different in the United States and Europefrom the situation in 2004 is an accelerated pace in theshift to broadband service, which suggests that interestin this field has finally started to increase. However,moves are yet to be seen in terms of the application ofbroadband technology to mobile phones and the provi-sion of a menu with a wide variety of services. Wal-MartStores was quick to adopt RFID technology, and plans touse such technology on a large scale. However, the basictrend is that individual companies have been introducingIT as a means of reducing costs. No moves are evidentin which overall activities are planned under the newparadigm.

In Europe, the use of the term ubiquitous is still lim-ited. The European Union is promoting research anddevelopment activities under the theme of ambientintelligence. Services being developed under this themeinclude context-aware service, services using locationinformation and technology to link and combine digitalhome appliances with communications capabilities.Accordingly, in many ways, the direction pursuedunder these activities is similar to that of the ubiquitousnetwork. In the future, overlapping portions willbecome clearer as progress is made in achievingresults. However, at present, it is unlikely that EUwould replace the theme of ambient intelligence withthat of the ubiquitous network.

3 WSIS 2005

The World Summit on the Information Society (WSIS)of the United Nations held in December 2003 inGeneva provided the first opportunity for a full-scale




discussion of the ubiquitous network in an interna-tional venue other than in Japan and Korea (Figure 2).During this summit, the Japanese government wasactive in helping to develop symposiums, exhibitionsand related events under the unified theme of“Perspective for a Ubiquitous Network Society.” TheMinister for Internal Affairs and Communications, TaroAso, who attended the conference, called for the ful-fillment of the ubiquitous network society as an impor-tant issue for a global information society by noting,“the realization of the ubiquitous society will bringabout sustainable economic growth and a safe andsecure society.”9

At the WSIS in Geneva in 2003, it was decided tohold the same conference again in 2005 in Tunis. Todate, active discussions have been held on Internet gov-ernance, network security and bridging the digitaldivide.

Encouraged by the success of the symposium held inGeneva, the Japanese government held the TokyoUbiquitous Network Conference in May 2005 in Tokyowith the theme of a ubiquitous society.10 After openingaddresses by Minister for Internal Affairs andCommunications Taro Aso, Secretary-General of theITU (International Telecommunication Union) YoshioUtsumi and high-ranking officials of each participatingcountry, opening presentations were made by ProfessorKen Sakamura of the University of Tokyo and ProfessorNicholas Negroponte of the Massachusetts Institute ofTechnology. These presentations were followed by mykeynote speech. Following the opening session, activediscussions were held in five sessions, which included“technologies leading a ubiquitous network society,”“knowledge sharing—capacity building,” “bridging thedigital divide,” “ubiquitous network for civil society”and “ubiquitous network society.” About 600 people

from 85 countries participated in this conference,which provided a good opportunity to present the ubiq-uitous paradigm to the world.

During the conference, a common understanding wasestablished in the summary of the chairman that “theubiquitous network society will make it possible to con-nect on a seamless basis ’anytime, anywhere, by any-thing and anyone’ to exchange and share extensiveinformation easily and at low cost by user-friendlyequipment and services.” It was also confirmed that thenew paradigms that are now emerging all over theworld, such as ambient intelligence, pervasive comput-ing, ubiquitous computing, etc. are generally pursuingthe same goals as that of the ubiquitous network.

Furthermore, that we discussed the possibility thatthese new technologies might also benefit developingcountries by adopting the IT leapfrog strategy was con-sidered as the important first step for the ubiquitousnetwork’s IT paradigm.

For the conference in Tunis in November 2005, theJapanese government also plans to organize a forumunder the theme of the ubiquitous network. It isexpected that the success of the Tokyo UbiquitousNetwork will be reflected in this conference.

Even though only a short preparatory period wasavailable, people from more than 15 countries partici-pated in the ITU Workshop on Ubiquitous NetworkSocieties held in April 2005 in Geneva. More than 20papers discussing the ubiquitous network society fromdiverse perspectives were presented, and ideas wereactively exchanged during the workshops. In addition toJapan, Korea, Hong Kong and Singapore participated inthis workshop from Asia. The ubiquitous network hasalready become a theme about which ideas can beexchanged naturally on a global basis rather than beinglimited to only a few countries.



Source: Ministry of Internal Affairs and Communications. Subject to change.

Figure 2. The UN WSIS and Tokyo Ubiquitous Network Conference

PrepCom-1

NovemberJune 2004 February 2005 SeptemberMayDecember 2003

Thematic meetingsRegional meetings

Other related meetings

Working Group on Internet Governance (WGIG)

Update, discussion

Update, discussion

Update, discussion

Update, discussion

WSIS 2003 in Geneva

Political declaration (declaration of

principles)

Plan of Action adopted in Geneva

Minister Aso for Internal Affairs and Communications advocated “the importance of activities to realize the ubiquitous network.”

Symposium and exhibition held under the theme of “evolution of the ubiquitous network”

Road map for the Tunis phase

Task Force on Financial Mechanisms (TFFM) for developing countries

PrepCom-2 (Sub-committee x1)

Review of the TFFM report

Start of preparations on the final paper to be adopted at the Tunis Summit

Review of the interim report submitted by WGIG

Tokyo Ubiquitous

Network Conference

Thematic meeting

PrepCom-3 (Sub-committee x2)

Review of the final report submitted by WGIG

Continuation of review of the TFFM report (if necessary)

Negotiation on the final paper

WSIS 2005 in Tunis

Political declaration (declaration of

principles)

Implementation of the Plan of Action adopted in Geneva

Thematic meeting on the theme “ubiquitous” held in Japan


4 Gradual Penetration Also Seen in China

While accelerated moves pursuing the ubiquitous para-digm are prominent in Japan and Korea among Asiannations, what is noticeable is the stance of China, whichhas recently been drawing increased attention by itsextremely active moves in the IT field as well as by theprogress resulting from such activities.

At the Tokyo Ubiquitous Network Conference, LiuJiren, Chairman and CEO of Neusoft Group, a leadingsoftware and solution provider, reported that, as of 2004,China already had 87 million Internet users, exceedingthe number of Internet users in Japan. As of 2003, Chinahad 300 million mobile phone users, surpassing thenumber of users of fixed telephones, indicating thatChina has partially outpaced the United States in termsof scale.11 In terms of quality as well, it has beenreported that interesting applications have appeared inthe medical, public security and entertainment fields.These reports suggest that China is deeply committed tothe development of information and communicationsinfrastructure.

After the Tokyo conference, the Forum on theConstruction of Ubiquitous Digital Society was held inShanghai in May 2005. Experts and government offi-cials in China and Japan participated in this forum andengaged in active discussions.12 Although this confer-ence was held as part of the 5th Annual Forum on CityInformatization in the Asia-Pacific Region, especiallyhigh interest was shown in this session from among theten sessions that were concurrently held. During this ses-sion, ubiquitous was commonly discussed among theChinese members responsible for information and com-munications by using the equivalent Chinese term, sug-gesting that the ubiquitous paradigm has graduallystarted to penetrate into China as well.

III Evolution of the Ubiquitous Network in IT Policy

The national IT strategy, “e-Japan Strategy II,” that iscurrently under way covers the period up to the end of2005. “e-Japan Strategy,” which started in January 2001,is the national IT strategy that is aimed at making Japanone of the world’s most advanced IT countries by 2005.Accordingly, no national IT strategy covering the periodafter 2006 is prepared in Japan at present. As we movenear the end of 2005, it is apparent that discussions con-cerning the next phase of the national IT strategy will beanimated.

Moves have already been seen here and there such asthose involving information and communications pol-icy and industrial structure policy. This chapter pre-sents an overview of the studies being made in the fieldof mid- and long-term policies that may affect the for-mulation of the next phase of the national IT strategy.

A vast amount of intellectual and human resources arebeing used for these studies with a great amount ofinput from specialists in a variety of areas.

This section outlines the important points of theseindividual studies.

1 u-Japan Policy

It was the Ministry of Internal Affairs and Communications(MIC) that took the first steps for the next-phase nationalIT strategy. MIC inaugurated the u-Japan PolicyRoundtable (committee for the realization of a ubiqui-tous network society) in March 2004. The meetingsconsisted of three working groups concerned withbasic policy, the IT industry and the usage environ-ment. Participants in the working groups included com-pany executives and university professors who are wellversed in technology, organization structure, strategy,etc., and engaged in lively discussions for ten monthsup until December 2004.

(1) Basic concept of u-Japan policyu-Japan stands for ubiquitous network Japan. The socialstatus in which the numerous issues Japanese societyand industry must face in the future are resolved by IT ofthe ubiquitous network by 2010 is called u-Japan. Thismeans that the opportunity of being positioned as thebasic concept of Japan’s long-term vision for informa-tion and communications policy was assigned to theubiquitous network paradigm.

Initially, e-Japan Strategy was the network infra-structure development strategy that focused on the shiftfrom narrowband (low speed, small capacity) to broad-band (high speed, large capacity) infrastructure. “u-Japan Strategy” further advances this strategy and aimsat promoting the development of a ubiquitous networkinfrastructure that enables “easy access to the networkat anytime, by anything and anyone.”

In terms of the promotion of utilization, e-JapanStrategy gave priority to the development of an envi-ronment for electronic commerce and e-governments.e-Japan Strategy II advanced this strategy a step aheadand shifted its focus from the development of infra-structure to the promotion of effective IT utilization. e-Japan Strategy II selected seven important areas whereIT utilization must first be promoted. They are medicalservice, food, lifestyle, small and medium enterprisefinancing, knowledge, employment and labor, and pub-lic service. However, these measures were basicallyaimed at the promotion of IT utilization. In contrast,the targets under the u-Japan Policy are the resolutionof social and economic issues and the realization of theexpectations to be achieved by ICT (information andcommunications technology).

Furthermore, in the course of promoting the develop-ment of such infrastructure and the resolution of prob-lems, the negative aspects of IT must also be addressed.




Accordingly, the establishment of a utilization environ-ment was set as a new goal. Consequently, the u-Japanpolicy adopted “emergent value creation” as its basicconcept for policy evolution, as compared to the devel-opment of broadband infrastructure in the case of e-Japan Strategy and the promotion of effective ITutilization in the case of e-Japan Strategy II. This con-cept pursues the establishment of a utilization environ-ment where ICT penetrates into every corner of life likegrass roots and creative ICT uses are generated, givingrise to new values. New and unexpected values are gen-erated by synergies through the linkage of these creativeuses.

Through these activities, u-Japan policy follows e-Japan Strategy, which aimed at making Japan one ofthe world’s most advanced IT nations by 2005, andcontinues to pursue that goal after 2006 as well. Its aimcontinues at making Japan the world’s front-runner inICT utilization as we move towards 2010 (Figure 3).

(2) Basic targets of u-Japan policyThe implementation of u-Japan policy will be pro-moted in three ways: (1) the development of the ubiq-uitous network, (2) the advancement of ICT utilizationand (3) the development of a usage environment(Figure 4).

The first target of developing the ubiquitous networkrelates specifically to the development of infrastructure.While e-Japan Strategy pursued the development ofwired networks such as ADSL (asymmetric digital sub-scriber line), cable Internet and optical fiber, u-Japan

policy must promote the development of infrastructureby maintaining consistency among not only wired net-works but also among wireless networks such as mobilenetworks and wireless LANs (local area networks),broadcasting systems where the digitization of terres-trial waves is promoted, and transportation networksthat increase the safety and ease of use of transportationby ITS (intelligent transport systems). The target ofdeveloping real object networks is also added.

A real object network connects things to the networkone after another that so far have had no relationshipwith a network such as beef, refrigerators and curtainrods, and makes them a part of the network by meansof new ICT devices such as electronic tags, sensor net-works and network robots.

The measures required to develop the ubiquitous net-work are not limited to those mentioned above. In orderto achieve an environment truly enabling access any-where, broadband infrastructure must be developed on anationwide basis. Furthermore, different platforms mustalso be developed to enable the use of the ubiquitousnetwork as a business venue.

The second target of advancing ICT utilization refersto the establishment of a foundation where varioussocial and economic issues can be resolved by industryby using ICT flexibly. Specific issues to be addressedinclude regulatory reform, management reform andphysical distribution reform, the establishment of a con-tent utilization environment, the promotion of the intro-duction of universal design and human resourcedevelopment.



• ICT penetrates into every corner of life like grass roots

• Totally new values are generated through creative ICT uses

Note: ICT = information and communication technology.Source: Ministry of Internal Affairs and Communications.

Figure 3. Framework of “u-Japan Policy” as a Vision for 2010

Ubiquitous networkBroadbandNarrowband

Major goal: Setting targets for 2010 as a front-runner

Basic concept: Evolution from “e” to “u”

Major e-Japan goal Major u-Japan goal

Promotion of utilization

Infrastructure development

e-Japan IIutilization

u-JapanEmergent value creation

e-JapanInfrastructure

Ubiquitous network

Becoming the world’s most advanced IT nation by 2005

Becoming the world’s leading nation by 2010

Resolving problems (realizing expectations)

Pioneering utilization

Acceleration of informatization

e-commercee-government

Catching up Front-runner

Resolving problems

Developing utilization environment




Source: Ministry of Internal Affairs and Communications, “u-Japan Policy—Working toward Realizing the Ubiquitous Network Society by 2010,” December 2004.

Figure 4. Overview of “u-Japan Policy Package”

To be the world’s leading “ICT Nation” by 2010

Development of the ubiquitous network Advanced usage of ICT Development of

utilization environment

By the year 2010, 100% of the population to have access to high-speed or ultra-high-speed internet

By the year 2010, 80% of the population to appreciate the role of ICT in resolving social problems

By the year 2010, 80% of the population to feel comfortable with ICT

International strategy: Promoting policies envisioning international markets and networks without being limited to the domestic market (promoting the Asia Broadband Plan to make Asia the world’s information hub)

Technology strategy: Strategically promoting R&D and standardization in priority areas, and achieving sustainable development through innovation

Developing infrastructure for network collaboration

Establishing the Ubiquitous Network Society Charter

Promoting universal design

ICT human resource development

Networking real objects

Promoting 21 Strategies for ICT’s Safety and Security

Promoting creation, trading and use of content

Nationwide establishment of broadband infrastructure

Identification and clarification of issues to be resolved

Sophisticated social system reform by ICT

Developing seamless access environment for both fixed

and wireless networks

u-J

apan

Po

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Pac

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Notes: CRM = customer relationship management, DRM = digital rights management, DSL = digital subscriber line, DSRC = dedicated short range communication, DVR = digital video recorder, ERP = enterprise resource planning, ITS = intelligent transport system, PDA = personal digital assistance, SCM = supply chain management.Source: Ministry of Internal Affairs and Communications, “u-Japan Policy—Working toward Realizing the Ubiquitous Network Society by 2010,” December 2004.

Figure 5. Structure of Ubiquitous Network ICT Industry

Ubiquitous network society

Anytime Anywhere Anything Anyone

Connects everyone and everything

Friendly communication User-oriented Creative and vigorous

ICT industry

Solution layer

Platform layer

Terminal layer

Network layer

Sensor network

Telemedicine

Food traceability

Home security

E-learning

Employment system

Disaster monitoring

Electronic governments/municipalities

Business-to-business electronic market

Electronic data exchange

ITS

ERP

CRM

SCM

Online shopping

Video/music distribution

Electronic video mail

Electronic book

Videophone

Copyright management (DRM, etc.)

Authentication

Billing/payment

Security

Privacy

System infrastructure

Location information

Digital TV

Mobile phone/PHS

Ubiquitous terminal

PDA/mobile

PC

DVR/video

Telephone/fax

Game machine

Wearable terminal

Car navigation

system

Information appliance

Electronic tag

Sensor

Network robot

Cable Internet

Fixed telephone network

DSL

Optical fiberNext-generation mobile phone

network

Wireless LAN

Satellite communications

BluetoothTerrestrial

digital broadcasting

Cable TV

Satellite broadcasting

Home network

Electronic tag network

Online game

Transportation network

(DSRC, etc.)


Consequently, the ICT industry of the ubiquitous net-work will consist of four layers, i.e., the network layer,terminal layer, platform layer and application layer(Figure 5). This configuration corresponds closely to thesix-layer model presented in my previous paper, i.e., theubiquitous network infrastructure layer, ubiquitous ter-minal layer, ubiquitous platform layer, ubiquitous con-tent layer, ubiquitous electronics layer and ubiquitousservice layer.

The third target for the development of a usage envi-ronment is set to principally deal with the issue of howto anticipate the negative aspects of the ubiquitous net-work and how to prepare effective response measures.While the ubiquitous network environment offers theultimate network convenience to users, it may alsobring ultimate network vulnerability to users.

The Internet has already been the source of an assort-ment of problems, such as viruses, worms, spam e-mail,unauthorized access and phishing. With the progress inthe development of an environment and increasedusage, the ubiquitous network may cause new prob-lems. Accordingly, in studying the development of ausage environment, efforts were first made to thor-oughly identify any negative aspects that might arise inthe future. Specifically, existing as well as probableproblems were identified and ten issues were listed foreach of ten fields such as security, privacy and mali-

cious content. In total, 100 issues of negative aspectswere identified.

In the u-Japan policy, these 100 issues were assessedaccording to priority, and 21 issues were selected asthose requiring immediate response. Although institu-tional or technical measures are to be applied for these21 issues, it is not possible to provide 100-percent per-fect solutions to these issues. Accordingly, the u-Japanpolicy also adopts measures to appeal to the valuejudgment of users, in addition to these institutional andtechnical measures. For this purpose, the “UbiquitousNetwork Social Charter” was proposed that stipulatesthe basic stance of users living in the ubiquitous net-work society (Figure 6).

(3) Scheduling and PDCA cycleAfter preparing a policy package for achieving u-Japanthrough these studies, the u-Japan Policy Roundtable askedMIC to create a schedule for measures covering the perioduntil 2010 based on this policy package and to establishand observe the PDCA cycle (plan→do→check→act)based on the prepared schedule when the final reportwas submitted.

In response, MIC divided the necessary measures into13 groups and redefined the achievement goals for eachgroup. MIC then prepared and announced a schedule formeasures until 2010 to achieve these goals. While this



Source: Ministry of Internal Affairs and Communications, “u-Japan Policy–Working toward Realizing the Ubiquitous Network Society by 2010,” December 2004.

Figure 6. Overview of the Ubiquitous Network Society Charter

Preamble

Free and diverse information distribution

Safe and secure information distribution

Overview of the Ubiquitous Network

Balance

Support

Establishment of new social infrastructure

• Potentiality and roles of ICT for future society• Definition, purposes and significance of “Ubiquitous Network Society”• Balance between free and diverse information distribution and safe and

secure information distribution• Positioning of the Charter

• Information access and dissemination rightsAccess to networks and to information in the public domain, dis-semination of information over networks, bridging the digital di-vide in geographic terms

• Information diversitySecuring the diversity of content and the interoperability of means of access, enhancing freely available content, promoting information disclosure by public institutions

• Promotion of information technology in economic societyPromoting the use of ICT, secure development of e-commerce, promotion of computerization in the public sector, developing in-frastructure that increases user convenience

• Information literacyBalancing the distribution of ICT benefits, fostering specialists, securing universal design, using easy-to-understand terms and expressions

• PrivacyIndependence from networks, protection of personal information, securing privacy, securing appropriateness in making videos and photographs

• Information securitySecuring network safety, prevention of improper usage, develop-ment of security technology

• Intellectual property rightsProtection of copyrights, etc., protection of rights through tech-nology

• Information ethicsEstablishment of information ethics, prevention of illegal and harmful content, etc., ethics in science and technology, ethics of content producers

• Balance between the real society and the cyber societyDeveloping systems supporting the cyber society, establishing a new social code of conduct, giving consideration to the recycling-based society

• Systems for local and international collaboration and cooperationInclusion of diverse viewpoints in policy formulation, development of structures for collaboration and cooperation in local communities and in the international community, timely and appropriate realization of policies


schedule tends to include many short-term measureslasting only three years, it nevertheless gives the impres-sion that the two IT policy evaluation concepts of“achievement-oriented evaluation from the user perspec-tive” and “full observance of a PDCA cycle for policies”that were advocated by the Evaluation Committee of theIT Strategic Headquarters have gradually started to takeroot.

Through the formulation of this u-Japan policy, theubiquitous network paradigm that emerged in confor-mity with Japan’s IT environment at the turn of thecentury has come to survive as a major IT paradigmwhile competing with many other ubiquitous para-digms and at least has become the underlying conceptof Japan’s long-term information and communicationspolicy.

2 Vision for Information-based Economyand Industries

In December 2004, when the u-Japan policy wasannounced by METI, the Ministry of Economy, Tradeand Industry, which is the other competent authority ofthe IT Strategic Headquarters, convened a session ofthe Information Economy Subcommittee of theIndustrial Structure Council to establish the “Vision forInformation-based Economy and Industries,”15 which isthe long-term IT policy vision. This subcommittee con-sisted of members in a wide range of fields including notonly management executives on the IT supplier side butalso those on the IT user side including university pro-fessors, lawyers, representatives of consumer organiza-tions and labor unions.

(1) Moving toward the second stage of IT utilizatione-Japan Strategy II has substantially shifted the strategicgoal from the development of IT infrastructure to thepromotion of IT utilization. However, if the situation ofIT utilization in each sector is examined in detail, thereare still many issues to be resolved and the situationregarding IT utilization is not yet fully satisfactory.

When we see the situation in companies that havecontinuously served as a driving force of IT utilization,IT utilization is still limited, because it is principally fordomestic operations and for partial optimization, as seenin the efforts to improve work efficiency within individ-ual departments and/or factories that use PCs and nar-rowband networks. It can hardly be said that IT iscontributing to a company’s abilities to improve compet-itiveness, promote innovations and resolve problems. Inthe meantime, concerns about the negative aspects of anetwork society such as security and privacy issues havebeen increasing.

With respect to the development of IT infrastructure,moves are being seen to develop the ubiquitous network,a next-generation IT utilization environment, which isbeyond the broadband infrastructure, ahead of other

countries. This new environment enables access to thenetwork anywhere, anytime and by anyone, and allowsconnections between persons, between persons andobjects, and between objects.

This situation means that although IT utilization bycompanies and government organizations is yet to start,IT infrastructure has already started to move toward thenext stage. As Japan’s information economy has cer-tainly started to make a major change to the secondstage, time has come for the government and the privatesector to share a new industrial vision under a new ITparadigm regarding the direction of such change (Figure7). The Vision for the Information Economy andIndustry was formulated under such circumstances.

The basic purpose of this vision is to innovate aninformation-based economy and shift the focus of theinformation industry in four directions: (1) from PC-based equipment to ubiquitous IT equipment (mobilephones, digital home appliances with communicationscapabilities, electronic tags, digital TVs, car navigationdevices, etc.), (2) from industrial clusters in SiliconValley to industrial clusters in East Asia, (3) from thedevelopment of IT infrastructure and its spread (conve-nience) to innovations and solutions (realization ofstrength) by IT, and (4) from IT utilization focused onpartial optimization to IT utilization focused on overalloptimization on an industry-wide basis and for socialsystems overall.

(2) Platform strategy and solution developmentIn the period envisioned under the Vision for Information-based Economy and Industries, Japanese industry mustsurvive and grow under the situation defined by theUnited States, which continues to be the champion ofthe world’s economy, EU and European countries, whichhave steadily expanded their economic scale and Asiannations including China, which has an enormous eco-nomic scale, strong price competitiveness and power topromote business operations, and Korea, which has theability to make decisions quickly and implement strate-gies. Accordingly, the range of options available toJapanese industry in reforming its industrial structure isnot so extensive.

What is proposed by this vision is an avenue out ofthe difficulty by forming a wide variety of platforms asnew businesses in Japan and providing attentive solu-tions to consumers with a high degree of effectiveness.

Industries in the future must continue to produceunique and unparalleled products and services by contin-ually working to meet the sophisticated needs ofJapanese consumers. Not only products and services butalso solutions that skillfully combine products, devices,systems and services in accordance with consumer needsin providing value to customers serve as the sources ofthese activities. The integrated IT business infrastructurethat enables the creation of business models for thesesolutions and enables the successive establishment of




new businesses by a number of players who rely onthese business models acts as a platform.

For example, in Japan, because the mobile contentplatform for the mobile network arose, the mobile con-tent solution market amounting to about 300 billion yen,including polyphonic ringtones and ring music, fortunetelling, games, etc. emerged. This market was nonexis-tent five years ago. The role played by these solutions inexpanding the mobile phone market in Japan to a scaleof 7 trillion yen in such a short period can be seen ashighly significant. The key to this success was a plat-form providing a simple mechanism for copyright pro-cessing and the authentication, charging and paymentfunctions to collect call charges.

The core of the Vision for Information-based Economiesand Industry is the posture of the industry that growsby continuously producing diverse solutions not only in theentertainment field but also in everyday living, business,public service and social systems through the constructionof these platforms that connect IT and services through-out business operations.

(3) Five strategies and post-e-Japan StrategyTo achieve this vision, the following five interrelatedstrategies must be implemented (Figure 8).

The first strategy relates to the development of theworld’s most advanced IT infrastructure for the ubiqui-tous network at an early stage. Specifically, the broad-band network infrastructure consisting of not only fixednetworks but also of wireless, broadcasting and trans-portation networks as well as real object networks suchas electronic tags and sensors must be developed. Inaddition, the development of a utilization environment

that assures interconnectivity and interoperability amongthese networks must be promoted. These measuresenable the formation of a platform that gives rise to newindustries such as digital home appliances, automobiles,housing and offices that are always connected to the net-work.

The second strategy concerns the promotion of theconstruction of an Asia-wide platform for electronickanban (bulletin board) systems and content distribution.Specifically, efforts must be made to promote standard-ization and human resource development in the directionof forming a single, unified industrial cluster by alwaysmaintaining close links with Asian partner countries.

The third strategy involves concentrated investment inan asset known as trust. The prerequisite to achieving allof the platforms and solutions is the need to foster trustbetween industry and users. Trust can be a valuable assetin creating new businesses in the future with the aim ofcreating customer worth. For this purpose, concentratedinvestment in security and privacy should be madepromptly in order to make the network space in Japanone of the safest and most secure business spaces in theworld.

The fourth strategy relates to the establishment ofplatform business that connects IT and services as newplayers. The vision indicates specific examples such asdigital home, mobile multi-use and digital communityplatforms.

The fifth strategy pursues the realization of four typesof solutions, i.e., those for everyday life, business, gov-ernment and social systems, and is aimed at improvingthe competitiveness and problem-solving capabilities ofusers in these four fields.



Notes: DVD = digital video disk, HD = hard disk, STB = set top boxSource: Ministry of Economy, Trade and Industry, “Vision for Information-based Economy and Industries,” April 2005.

Figure 7. Issues Regarding Shift to the Second Stage

Mobile phone DVD-HD recorder

Flat-screen TV

Digital convergence and information household appliancesDigital devices

Steps in the evolutionof information

household appliances

Digital cameraDigital video camera

STB

There are still many issues that need to be resolved for information household appliances such as digital cameras, flat-screen televisions and DVD recorders. These include the securing of interconnectivity and interoperability among these appliances, Internet connections and remote operability. The situation seems to have stalled at the so-called “digitalization stage” and so there now needs to be greater development of platforms that will allow devices to function as various “solution services.”

First stage: DigitizationDigitalization of functions and processing

Second stage: NetworkingConnections to the Internet and other appliances

Third stage: Platform developmentVarious information services provided through participation by “solution service providers”


The Vision for Information-based Economy andIndustries plans to strategically integrate (1) the infra-structure, i.e., the safe and secure ubiquitous utilizationenvironment, that will be constructed ahead of othercountries under partnerships with Asian countries and(2) the establishment of platforms to promote utiliza-tion that truly contributes to increasing industry’s com-petitiveness and the problem-solving capabilities ofindividuals and society. The vision intends to pursuesuch measures as the basic course of the second-stagenational IT strategy. While all of these five strategiesrequire major innovation for Japanese industry, at thesame time these strategies represent extremely impor-tant socioeconomic issues. It can easily be imaginedthat Japanese industry can acquire greater “strength”by making these strategies a reality.

What is important for the ubiquitous network para-digm is that “the establishment of the ubiquitous IT uti-lization environment” is included as one of five strategiesof the Vision for Information-based Economy andIndustries.

This vision adopts the position of actively using theubiquitous paradigm in response to a proposal made by acommittee consisting of two management executives, i.e.,President Etsuhiko Shoyama of Hitachi and PresidentMasamitsu Sakurai of Ricoh, Professor Jiro Kokuryo ofKeio University and myself who participated in the for-mulation of the u-Japan policy and Professor ShoichiroAsano of the National Institute of Informatics who intro-duced the Weiser publications.

Whatever the case may be, the two ministries support-ing the IT Strategic Headquarters, MIC and METI, havedecided to adopt the ubiquitous paradigm in formulatingthe five-year vision for the IT utilization environment.

3 Principles for Formulating the BasicScience and Technology Policy

In the science and technology policy that is supportingthe information and communications policy as well asthe industrial structure policy, an important position isalso being given to the ubiquitous network. UnderJapan’s basic science and technology plan, the targets ofresearch and development investment have so far beenset at 17 trillion yen for Phase 1 and 24 trillion yen forPhase 2, positioning research and development as one ofthe most important priorities of the government evenunder the current situation of financial austerity.

The Phase-2 basic plan intends to allocate greater por-tions of the budget to the four priority fields of IT,biotechnology, nanotechnology and the environment.Actually, the rate of budget allocation for these fourfields was increased from 37 percent in fiscal 2001 to 45percent in fiscal 2005. Active efforts have also beenmade to increase the funds of the research support pro-grams, to promote cooperation among industry, acade-mia and government, and to corporatize nationaluniversities and test/research organizations. These effortshave steadily been producing results in science and tech-nology. At the same time, it is also true that there areonly a few cases in which the expansion of the invest-ment in science and technology has clearly led to acquir-ing the predominance of industrial competitiveness.16

Under these circumstances, the Council for Scienceand Technology Policy announced Phase-3, “Principlesfor Formulating the Basic Policy for Science andTechnology,” in June 2005.

These basic principles clearly set forth the aspect of“science and technology policy supported by society and



Source: Ministry of Economy, Trade and Industry, “Vision for Information-based Economy and Industries,” April 2005.

Figure 8. Problem-Solving in Four Fields and Five Strategies in “Vision for Information-based Economy and Industries”

Lifestyle field (life solutions)

Business field (business solutions)

Administrative field (government solutions)

Social problem field(social systems solutions)

[Establishment ofNew Supporters]

[Expanded Pursuit] [Maintaining Convenience] [Pursue Safe, Worry-free Applications]

[Pursuing Strengths]

IT user competitiveness and problem solving capabilitiesin four fields

Support for the quality and quantity of IT investmentsSolving social problems through IT applications, others

Platform Business Applications

• Support for creating platform businesses

Expand into Asia

• Expand the networking of PCs and information household appliances mainly for advanced IT nations in Asia

• Asia-wide standardization, developing skilled personnel, creating platforms

Prepare an environment for ubiquitous IT applications

• Maintain and improve on the world's most advanced ubiquitous IT infrastructure

Concentrated investment in the asset of “reliability”

• Accelerate the establishment of private-sector security measures


people” with consideration given to the strengthening ofaccountability concerning the science and technology pol-icy itself, raising people’s interest and encouraging vol-untary participation, and the need to deal with the negativeaspects of science and technology. Consequently, thethree basic ideas of (1) adding to the wisdom of humanbeings, (2) creating the source of national strength and(3) protecting health and safety are shown in the form ofspecific policy goals consisting of 6 major goals and 12supporting goals.

These goals are explained as having the nature of“social goals established to convey what the final sci-ence and technology policy is aiming at in an easy-to-understand manner in an effort to share the results ofscience and technology policy with people.”17 Theseefforts can be seen as those to visualize policy to con-tinue to give priority to budget allocation under the lim-ited sources of revenues.

Figure 9 shows a systematic overview of these basicideas and goals. In this overview, the ubiquitous net-work is treated as one of three supporting goals underGoal 4 of Innovator Japan, which is expressed as “therealization of the ubiquitous network society that iscaptivating the world.” The ubiquitous network societyis explained as “a society where convenient, safe andcomfortable living is possible with all people andobjects connected at anytime, anywhere and as onerequires by information and communications technol-

ogy.” Basically, this conforms to the policy idea pur-sued by the u-Japan policy.

In the Phase-2 science and technology policy, infor-mation and communications are treated as one of fourpriority goals. This positioning is considered to basicallyremain unchanged in Phase 3. Among the goals of Phase3, science and technology concerning the realization ofthe ubiquitous network society is positioned as one ofthe nation’s 12 priority policy goals. This means thatthe ubiquitous network society has secured a clearposition in the framework of Japan’s science and tech-nology policy.

4 UNS Strategy Program

As the u-Japan policy was formulated and the vision forinformation and communications policy up to 2010started to be shared, the Ministry of Internal Affairs andCommunications began activities envisioning the mid-and long-term policies in every aspect of informationand communications policy. In July 2004, studies werestarted concerning the required research and develop-ment activities to implement the ubiquitous networksociety at the Research and Development StrategyCommittee of the Information and CommunicationsCouncil. After about one year of study, the UNSStrategy Program was prepared in June 2005 andannounced in July.18



Source: Council for Science and Technology Policy, “Principles for Formulating the Basic Science and Technology Policy,” June 2005. Translated by the author from the original Japanese.

Figure 9. Six Policy Goals to Be Achieved by Science and Technology

<Principle 3> Protecting health and safety<Principle 1> Fostering wisdom

<Goal 2> Breaking through the limits of science and technology

(((Contribution to the world by science and technology)))

<Goal 4> Innovator Japan <Goal 6> A nation able to be proud of its security

<Goal 5> Vigorous lives

(((Contribution to society by science and technology)))

(((Contribution to people by science and technology)))

Accumulation and creation of diverse knowledge that can open the way toward the future

(1) Discovery and explanation of new principles and phenomena

(2) Creation of knowledge that can be a source of discontinuous technological innovation

Challenging the dreams of mankind and their realization

(3) Implementation of the world’s most advanced projects serving as a driving force of science and technology

Realization of sustainable development by enabling both environmental protection and economic growth

(4) Overcoming global warming and energy problems

(5) Realization of a recycling-based society in harmony with the environment

Realization of strong economy and industry with continuous innovations

(6) Realization of the ubiquitous network society that is captivating the world

(7) Realization of the world’s leading manufacturing country

(8) Employing science and technology to strengthen industrial competitiveness to be a winner in the world market

Realization of Japan where everyone, from children to seniors, enjoys a healthful quality of life

(9) Overcoming disease(10) Realization of society where everyone can

live a healthful life

Realization of the safest country in the world

(11) Securing safety in country and society(12) Securing safety in everyday life

Achieving Policy Goals 1 to 6 in dealing with the population issue, the environmental issue, the food issue, the energy issue and the resource issue that are becoming serious on a global scale, as well as an accelerating trend

in a declining birthrate and aging society in Japan will contribute to the following:

• Resolving issues common to all human beings

• Realizing peace and prosperity in international society

• Driving the development of the Japanese economy

• Taking the lead in creating international conventions

• Providing safety and vitality to national life• Securing high-quality employment and

living standards

<Goal 1> Discovery and invention of remarkable ideas

<Principle 2> Creating a source of national strength

<Goal 3> Coexistence of environment and economy


The initials UNS stand for the Ubiquitous NetworkSociety. In addition, UNS also represents the three pil-lars of this research and development strategy: (1)Universal communications (knowledge creation pro-gram: universal communications technology strategy),(2) New-generation network (advanced internationalprogram: new-generation network technology strategy)and (3) Security and safety (security and safety program:ICT safety and security technology strategy).

The “U,” or the universal communication technologystrategy, is aimed at establishing communication tech-nology to promote activities for the creation of knowl-edge by making use of the world’s leading ubiquitousnetwork, and realizing user-friendly communicationtechnology for seniors, etc., by transcending the barriersof age, physical conditions, language and culture.

The “N,” or the new-generation network technologystrategy, pursues the realization of network technologythat can serve as infrastructure for the ubiquitous net-work society and principally consists of optical com-munications, mobile technology, etc., under theongoing moves to restructure the backbone network bymeans of IP.

The “S,” or the ICT safety and security technologystrategy, is aimed at realizing a safe and secure societyby establishing an ICT infrastructure that is not inter-rupted by cyber attacks or large-scale disasters and by

overcoming social problems such as global environ-ment issues, a declining birthrate and aging society bymeans of ICT.

To achieve these three pillars, this program assumedten research and development projects, as shown inFigure 10. Targeted achievements from the user perspec-tive are set up for each project. For example, theUbiquitous Mobility project targets the “creation of thesuper broadband environment that covers from space toevery corner of the earth on a seamless basis with’mobile’ serving as the core technology.” The SuperCommunication project aims at the “creation of supercommunications that transcend the barriers of language,knowledge and culture.” The Secure Network projectpursues the “world’s strongest network lifeline that canbe immediately reused even if being destroyed again andagain.”

The target year of these research and developmentprojects is set at 2010. Another benchmark year is set at2015 in consideration of the characteristics of researchand development such as the need for long-termapproaches and that these activities accompany theuncertainty based on the concept that research anddevelopment activities up to 2010 should be proceededby setting the target year slightly ahead and establishinglong-term goals for the new target year. For implementa-tion, the ten research and development projects are



Source: Research and Development Strategy Committee of the Information and Telecommunications Council, “Research and Development for Ubiquitous Network Society—UNS Strategic Programs.”

Figure 10. Overview of “UNS Strategic Programs”

Ubiquitous Network Society

New Generation Networks

Safety and Security

Universal Communications

New-generation network architectureUbiquitous mobility

Creating new ICT paradigmSuper communication

Ubiquitous platforms

Secure networksUbiquitous and Universal Town

Building the first ever realistic 3-D video communication systems

Developing super communication systems designed to eliminate language knowledge and culture barriers

Developing an environment designed to promote information reliability and allow any person to create content

Developing user-friendly ubiquitous networking environments particularly for the benefit of older and disabled persons by the sensor network and robot technology

Building the world’s most durable network lifelines designed to withstand all forms of external threats and internal failureDeveloping advanced measurement,

spatio-temporal and positioning systems for use in environment initiatives and disaster response programs

Building platforms to support network authentication, payment, distribution and service integration

Generating the seeds of ICT for Japan 20 years into the future, such as optical and quantum communications technology and nano-ICT

Creating a super-broadband environment with mobile serving as on the core, providing seamless coverage from space to every point on the globe

Building networks based on innovative new concepts, using optical technology to extend into non-IP areas

Strategic Program

<Safety and Security Program>ICT Safety and Security Strategy

<Intelligence Creation Program>Universal Communications Strategy

<International Leadership Program>New Generation Network Technology

Strategy

Creation and distribution ofadvanced content

Sensing/ubiquitous space-time infrastructure

Ultra-realistic communication


divided into elements. A rough roadmap is provided foreach element with the target years set at 2010 and 2015.

As the general direction has been shown as describedabove, activities to implement the strategy program andthe research and development projects are about to startin some fields. In the future, there is no doubt thatresearch, development and planning activities are beingaggressively pursued in these fields.

IV Next-Phase National IT Strategy and the Ubiquitous Network

1 Future of the Ubiquitous Network Paradigm

This paper has introduced the three most recent aspectsof the ubiquitous network: (1) the penetration of theubiquitous paradigm into Japanese society and corporateactivities, (2) global evolution principally in Asia includ-ing Japan and (3) the importance given to the ubiquitousnetwork paradigm in the IT field by the information andcommunications policy, the industrial structure policyand the science and technology policy.

The most important point in the future evolution of theubiquitous network is what position is to be given to theubiquitous network paradigm in the next-phase of thenational IT strategy whose status is now that of a cleanslate and will be formulated around the end of 2005. Thischapter discusses the appropriate next-phase national ITstrategy and positioning of the ubiquitous network para-digm based on what is explained in this paper and NRI’spast activities for the ubiquitous network.

At the initial stage of the proposal for the ubiquitousnetwork paradigm, the requirements from the supply-side perspective were defined as (1) a multi-modalbroadband network, (2) with borderless connectivity ofinformation equipment and (3) having seamless portabil-ity of content and solutions. My previous paper indicatedthe definition from the user perspective as the networkthat can be connected anywhere, at any time and by any-thing: the IT utilization environment enabling better con-nection not only between people, but also betweenpeople and objects and between objects.19 This paperalso introduced the overall picture of the ubiquitous net-work society that integrates user-side and supply-siderequirements.20 The ubiquitous network paradigm alsoincludes the study results of the u-Japan policy in orderto achieve these defined requirements.

2 Ubiquitous Network as the Core of Next-Phase IT Strategy

(1) From e-Japan to u-JapanIt was in January 2001, when the e-Japan Strategy wasstarted based on the IT basic strategy established at the

end of 2000, that the national IT strategy was first for-mulated in Japan. The e-Japan Strategy can essentiallybe regarded as a broadband infrastructure developmentstrategy with the aim of making Japan one of the mostadvanced IT nations in the world by 2005 through thepromotion of broadband services.

The development of the broadband network infra-structure environment that started at around the sametime proceeded smoothly, and the situation reached thelevel that enabled us to have full confidence in the devel-opment of such an infrastructure when the e-JapanStrategy was reviewed in 2003. Accordingly, the e-JapanStrategy II largely shifted the basic goal of the nationalIT strategy from the development of IT infrastructure tothe promotion of IT utilization and consisted of pioneer-ing IT utilization activities in the seven fields of medicalservice, knowledge, public service, etc., as its core ele-ments. At the same time, the e-Japan Strategy II is thefirst national IT strategy that included the ubiquitous net-work as the goal of the next-generation IT utilizationenvironment development.

In December 2003, an Expert Committee forEvaluation of IT Strategy was organized in the ITStrategic Headquarters. At present, work to evaluate theextent to which the goal of being the world’s mostadvanced IT nation by 2005 is being achieved is under-way at this Expert Committee by evaluating the resultsof the five-year period of the e-Japan Strategy. While thecurrent e-Japan Strategy II period covers up to the end of2005, the national IT strategy in and after 2006 is nowblank, regardless of the conclusions of the ExpertCommittee for Evaluation. Studies have already begun atthe IT Strategic Headquarters for the next stage strategy(Figure 11).

With respect to this next-phase national IT strategy,while preliminary studies obviously must be made bytwo competent authorities for IT policy, the Ministry ofInternal Affairs and Communications and the Ministryof Economy, Trade and Industry (METI), the former ofthe two made the first move.

In March 2004, the Ministry of Internal Affairs andCommunications established the u-Japan PolicyRoundtable and formulated the u-Japan Policy packagethrough 10 months of discussions. As explained in thepreceding chapter, u-Japan is not the IT vision as repre-sented by the ubiquitous network, rather it refers to thesocial status wherein the socioeconomic issues thatJapan will face in the future are resolved from the userperspective by means of ICT of the ubiquitous network.

In April 2005, METI also proposed an innovativeindustrial structure theory for the information economyfield centered on platforms and solutions through pro-found discussions concerning changes in the industrialstructure on the architectural level although this wasdone in a short period immediately after the formula-tion of the u-Japan policy. The foundation used by thisVision for Information-based Economy and Industries




as the future image of an IT utilization environmentwas the “development of the ubiquitous IT utilizationenvironment,” which is one of the five major strategiesof this proposal. While the contents of this ubiquitousIT were not examined in detail, we may reasonablyassume that they are almost the same as those of the u-Japan policy.

As noted in the preceding chapter, the Phase 3 prin-ciples for formulating the Basic Policy for Science andTechnology also adopted the “realization of the ubiqui-tous network society that is captivating the world” asone of the 12 achievement goals.

Japan’s first national IT strategy has become wellknown among the public because of its name, e-JapanStrategy. Accordingly, the next-phase national IT strat-egy should have a similar name. As candidates, nonames other than u-Japan are conceivable because theubiquitous network paradigm has firmly penetrated intosociety and companies and has been adopted as the coreconcept in the next-phase information and communica-tions policy, industrial structure policy and science andtechnology policy.

First, the next-phase national IT strategy should con-vey the message of broadly switching the tone of strat-egy from the typical catch-up type of strategy to thenational IT strategy of being the front runner. In order toclearly show the world that Japan’s national IT strategyhas changed, it is preferable to avoid the use of “e,”which gives the impression of a hackneyed term, or “I,”which has long been used by the EU and Singapore. Incontrast, “u,” which stands for “ubiquitous,” also standsfor “universal” and “user-oriented,” connoting a widerange of meanings.

Second, because the next-phase national IT strategywill be publicized throughout the world, it should be

something that highlights the strength of the Japanese ITenvironment. In particular, at its initial stage, the ubiqui-tous network paradigm was planned and intended toenable the development of information equipment thatwould give the Japanese IT industry a certain degree ofinternational competitiveness. The aim was regeneratingthe Japanese IT industry so that it would occupy the coreposition of IT.

The end of the 1990s, when the e-Japan strategy wasdiscussed, corresponds to the period when Japan lostconfidence of just about everything after going throughthe “lost ten years.” One of the major reasons for thislost confidence was that Japan could not becomeinvolved at all in the initiative in the world flow of the ITparadigm in the 1990s (the situation that had changedcompletely from the 1980s).

During the five years under the e-Japan Strategy,Japan’s IT industry and electronics industry recoveredconfidence under an accelerated trend in promotingbroadband services, and strengthened their confidenceby generating a flourish in the production of digitalhome appliances in Japan. However, this confidence wasbased on a fragile foundation.

The next-phase national IT strategy must be aimed atensuring the recovery of the confidence of the JapaneseIT industry. The term ubiquitous was first used in theUnited States in the expression of ubiquitous computing.However, the ubiquitous network is the IT paradigm thatwas re-defined and re-invented in Japan.

Third, the next-phase national IT strategy shouldenvisage the trends of IT strategies in other countries.Around the time when the Ministry of Internal Affairsand Communications established the u-Japan PolicyRoundtable and Minister Aso announced the u-JapanPlan, Korea announced the “u-Korea Promotion



00.11 01.1 06.01 10.12

10.12

012000Year 02 03 04 05 06 07 08 09 10

02.11 03.7 05.12

04.1204.3

04.12 05.3

Principles announced in 05.7

Figure 11. Framework for Establishing the Next-Phase National IT Strategy

IT Strategy Headquarters of the Cabinet Secretariat

Ministry of Internal Affairs and Communications

Ministry of Economy, Trade and Industry

Expert Study Committee on Future IT Strategy

Policy Roundtable for Realizing a Ubiquitous Net-work Society

Vision for Information-basedEconomy and Industries

e-Japan Strategy Next-Phase National ICT Strategy

e-Japan Strategy II

u-Japan Strategy

UNS Strategic Programs

IT Basic Strategy

Council for Science and Technology Policy, “principles for formulating the Basic Policy for Science and Technology”

Industrial Structure Council

Expert Committee on IT Strategy Evaluation


Strategy.” Following this, Korea implemented the IT839Strategy. By adopting and promoting a typical govern-ment-led industrial policy, Korea has steadily pursuedthe fulfillment of such a strategy. China has also startedto address the ubiquitous paradigm by using the Chineseequivalent of suiyi. Background factors behind thesemoves are likely to include the start of full-scaleapproaches to the ubiquitous paradigm principallyamong the IT companies in Japan.

While the diplomatic relationships between Japan andKorea and between Japan and China have recently tendedto be somewhat uncomfortable, the underlying tone ofcollaboration and cooperation among Japan, Korea andChina in the IT field has remained unchanged, whilecompetition continues. Japan will certainly be able tocontribute to this framework by taking the lead in the u-Japan policy, establishing the IT paradigm and promptlyachieving the ubiquitous network society in Japan.

While the EU advocates ambient intelligence andappears to have distanced itself from the ubiquitous net-work paradigm, its basic direction appears to be thesame. The United States consistently remains indiffer-ent. For some time in the future, the IT strategy of theUnited States will remain neither too close to nor tooremote from national security, and will focus on the dis-semination of the IPv4-based Internet paradigm, whichwas established in the late 1990s all over the world.

While moves to promote broadband services are juststarting to be accelerated in the United States, thesemoves are far different from the u-Japan concept thatplans to develop a broadband mobile network and toconnect electronic tags, sensor networks, network robotsand even ITS by establishing compatibility among thesesystems. Of course, there is no reason that Japan’snational IT strategy should conform to that of the UnitedStates. The past mistake made with the home-manufac-tured basic software TRON should not be repeated.

(2) From “utilization strategy” to new “valuecreation strategy”

The e-Japan Strategy II was without parallel in that thefocus of the national IT strategy was shifted from thedevelopment of IT infrastructure to the promotion of ITutilization. Through this shift, Japan’s IT policy has beenchanged from one that emphasizes hardware to one thatis well balanced by including software that also is ascomprehensive as services and solutions. The road maphas been established for the details of the e-JapanStrategy II measures. Based on this road map, theprogress in the pioneering activities being conducted inthe seven fields of medical service, food, lifestyle, smalland medium enterprise financing, etc., is being man-aged.

However, these pioneering activities are being con-ducted basically to promote the utilization of existing IT.The underlying concept for these activities is the promo-tion of utilization “as the means of disseminating IT.”

These efforts attempt to promote structural reform basedon IT in the field of public service as well as by creatingleading model projects to facilitate IT utilization in thatfield such as medial service and knowledge where IT isnot fully utilized.

In households and companies, the promotion of ITutilization is left up to the preference of users. While thegovernment should contribute to the improvement ofbasic IT literacy, it is up to users who will ultimatelydecide whether to use IT. However, if the situation is leftalone in the field of public service, IT utilization that canlead to service reforms might never start. This will causedifficulties in the world of networks that are stronglyinfluenced by outside factors. The promotion of IT uti-lization in the field of public services will have greatersignificance than structural reform as a political slogan.This significance may grow even greater if ripple effectscan be generated in fields other than the initial sevenfields.

Then again, the next-phase national IT strategy shouldbe the one that provides solutions to various social andeconomic issues facing Japan and that fulfills the expec-tations and dreams that people have of IT. Accordingly,the next-phase national IT strategy should cover theoverall aspects of lifestyles, companies and society with-out limiting its focus on only the field of public services.If such a shift is made to pursuing extensive goals, whatachievements should be pursued by the next-phasenational IT strategy?

Clues for the answer may be required of the indus-trial structure policy being developed by the Ministryof Economy, Trade and Industry. The Vision forInformation-based Economy and Industries formulatedin the IT field comes under the framework of the “NewIndustry Creation Strategy.” This strategy was formu-lated in May 2004 with the aim of revitalizing a strongmanufacturing industry and creating various serviceindustries that could generate employment opportunities(Figure 12).

The strength of the Japanese industries that is basedon the current structure in which the two major indus-trial groups of automobiles and home appliances aresupporting the Japanese economy is being lost due to theprogress of globalization and hollowing-out in the1990s. If no measures are taken, the advanced compo-nent and material industrial cluster that is now barelycompetitive in Japan may also be lost. As a vision ofovercoming this situation, this strategy proposes theestablishment of the leading-edge industrial fields of fuelcells, digital home appliances with communicationscapabilities, robots and content, and the creation of fieldsto respond to three market needs of health and welfare,the environment and energy and business support in thedomestic market.

In other words, the new industry strategy intends tofind a way for the advanced component and materialindustry cluster to survive by creating new industries




such as digital home appliances with communicationscapabilities and fuel cells before this industry cluster isexported overseas.

There is no doubt that IT is involved in the develop-ment of home appliances from current digital homeappliances to digital home appliances with communica-tions capabilities, thereby creating a means of vitalizingthe advanced component and material industry cluster.IT is going to play an important role not only for digitalhome appliances with communications capabilities butalso in all of the seven new industries previously men-tioned. What is required of IT in playing such an impor-tant role is not the promotion of IT utilization, which isthe goal from the perspective of the IT side, but is thesupport of innovations to be implemented by the homeappliance industry for their own survival. This is no lessthan “value creation” for industries. In sum, what thenew industry creation strategy suggests to the next-phasenational IT strategy is that IT should pursue a “value cre-ation strategy” by going beyond the strategy of utiliza-tion promotion. The creation of value means the creationof new industries.

During the five-year period of the e-Japan Strategy, IThas become firmly established as the basic infrastructurefor industries. In the future, any new industry will becreated on the IT infrastructure. The ubiquitous networkwill make the creation of value, i.e., new industries,extremely easy by providing infrastructure where vari-ous industrial functions are freely combined and con-nected. The platform strategy presented by the Visionfor Information-based Economy and Industries willimplement these targets with greater efficiency.

This value creation strategy should not be confinedonly to supply-side fields, i.e., industries, and should beextended to the user side such as life and society. TheExpert Committee on Evaluation of the IT StrategicHeadquarters is also implementing a “priority evalua-

tion” that assesses individual policies for the seven pio-neering activities such as medical service, food andknowledge, in addition to an “overall evaluation” thatassesses the achievements of the e-Japan Strategy overfive years. The basic concept behind the implementationof these evaluations is “achievements of outcome fromthe user perspective.”

More than 300 measures to be implemented by elevenministries to realize the e-Japan Strategy have individualgoals and a target year for fulfillment. While an impor-tant aspect in the policy evaluation is to evaluate whetherthese measures are progressively implemented, the eval-uation of IT strategy should not be confined only to suchevaluation. To evaluate whether these measures aremeeting their intended purposes, the achievements thatthese measures are providing users, the ultimate benefi-ciaries, must also be evaluated.

For this purpose, in implementing priority evaluation,the Expert Committee of Evaluation analyzed not onlyoutput (supply) but also outcome (achievement) of themeasures to the greatest extent possible. The basicstance of guaranteeing effectiveness in the outcomeaspect in addition to the output aspect of the policyitself that is implemented by making use of limited pol-icy resources inevitably results in making a proposalsuggesting the use of a PDCA cycle in policy imple-mentation.

The aim of the u-Japan Policy Roundtable was toaccomplish this goal of “achievement of outcome fromthe user perspective” from the beginning of the formula-tion of the policy vision. What were first implementedwere not studies of the benefits to be brought about byubiquitous network ICT, but were studies of the dissatis-factions and apprehension that people, ICT users, haveas we move towards 2010, and their expectations andrequests of social systems. The ICT utilization environ-ment that was considered as appropriate to resolve the



Notes: DRAM = dynamic random access memory, LSI = large scale integration.Sources: Compiled based on the “New Industry Creation Strategy,” May 2004, and the “New Industry Creation Strategy 2005,” June 2005, the Ministry of Economy, Trade and Industry.

Figure 12. New Industry Clusters in 2010 Expected in the “New Industry Creation Strategy”

Two current major industry clusters New industry clusters in 2010 (amounts shown in parentheses are those for 2025)

Hollowing out (since the 1990s) Return to the domestic market (from around 2003)

Automobiles Home appliances Fuel cells Information

appliances Robots Content

43 trillion yen 66 trillion yen1 trillion yen

(8 trillion yen)18 trillion yen

(29 trillion yen)2 trillion yen (6 trillion yen)

17 trillion yen (29 trillion yen)

Components Chemicals Materials Semiconductors (system LSI, etc.) Components

Metal molds

Materials (steel, etc.)

Manufacturing devices

Raw materials

Measuring devices

Glass Chemicals Measuring devices

Raw materials

Manufacturing devices

Special glass Software Sensors Communication

Metal mold IT

Materials for electronic components Digital technology

Semiconductors (DRAM, etc.)


various problems identified in these studies was theubiquitous network ICT utilization environment. Thisenvironment enables the limitless combination of ser-vices and business models at low cost and transcendstime and space by means of the “network that can beconnected anywhere, at any time and by anything.”

In the ubiquitous network society, the network is fullyutilized in any scene of life and society because it isaccelerated by the basic desire of users to “be better con-nected.” In this society, new values, i.e., realizing userexpectations and resolving social issues, are created oneafter another. The framework of the u-Japan policy itselfwas originally established as the mechanism to createvalue from the user perspective.

The value creation strategy for life and society isexplicitly described in one of the characteristics of theubiquitous network—IT for the resolution of varioussocioeconomic issues facing Japan in the future. Theubiquitous network will bring about the possibilities ofthe development of new industries, such as a diversityof digital content, ubiquitous home appliances, ubiqui-tous cars, ubiquitous housing/offices, etc. Furthermore,the ubiquitous network will resolve a variety of issuesbased on these newly developed industries, such as adeclining birth rate and an aging society, a safe environ-ment for life, medical and welfare service, employmentof young people, females working throughout life, life-long education and training, environmental issuesclosely related to our quality of life, etc. The biggestand probably ultimate purpose of the ubiquitous net-work is the achievement of value creation by highlyeffective and economical solutions.

In the case of the electronic commerce paradigm, therealization of IT for this purpose itself constitutes asource for the creation of new value. However, thisdoes not apply to the ubiquitous network. The ubiqui-tous network simply provides a means of creatingvalue. However, the ubiquitous network offers conve-nience that can be expressed as “ultimate” as far as ITand network utilization are concerned to entrepreneurswho intend to create value and to users who want to ben-efit from such new value. Accordingly, extensive mea-sures are required to implement the ubiquitous network,such as deregulation, research and development and theestablishment of a legal framework. This is why theubiquitous network should be promoted under thenational IT strategy or “the u-Japan value creationstrategy” that mobilizes industry, government, acade-mia and people.

(3) Indispensable security, privacy and networkcrime measures

The ubiquitous network will bring about ultimate net-work convenience and, at the same time, it has the possi-bility of bringing ultimate vulnerability. This is clearfrom the fact that as many as 100 issues were identifiedas negative aspects of the ubiquitous network society, as

noted in the previous chapter, including viruses, spamand phishing.

These problems have been quite apparent since the1990s when Internet use started to spread. The networksociety is destined to continue to deal with these prob-lems. With the progress in ubiquitous networking in thefuture, many of these problems will become increasinglyserious and might give rise to very new problems.Accordingly, the progress in ubiquitous networkingsimultaneously means an intensification of effectivelydealing with these negative aspects.

It is impossible to formulate any national IT strategywithout dealing with the negative aspects that can becollectively called “the security and privacy issues.” Thee-Japan Strategy was initially started without having apriority area devoted to security. It was in 2003, whenthe e-Japan Strategy II was established, that security wasadded to four priority policy areas, creating five prioritypolicy areas. After the enforcement of the PersonalInformation Protection Law in 2005, privacy was addedto these priority areas. The next-phase national IT strat-egy must highlight measures addressing these negativeaspects as an important policy area.

What is important in these efforts is the viewpoint of“chasing an attacker.” A tendency of criticizing inade-quate “measures on the victim side” continues to beseen in the response of the mass media when security-or privacy-related events or accidents occur. When thewebsite of a company is compromised or unauthorizedaccess is gained, the first to be denounced is the victim,whether a company or an individual. The fact that appro-priate measures have not been taken is denounced. It isvery important to establish social common sense or tocreate a culture concerning the need for users to taketheir own security precautions. With respect to security,this recognition is already well established to a substan-tial extent. In the future, there is no doubt that activitiesto disseminate such recognition with respect to privacywill become increasingly important.

However, if efforts are to be made to spread a newsocial common sense or culture, any measures leaningtoward responses on only the victim’s side cannot beregarded as balanced. Tampering with websites andunauthorized access are crimes. While such acts werenot considered crimes at the initial stage of Internetusage, with the progress of the penetration of the net-work society, a new awareness has given birth to a legalframework. At present, unauthorized access is a crimesubject to a penalty. What is important in the social sys-tem is not to press victims to take appropriate preventivemeasures but to punish perpetrators of such acts.

At present, the network society is at a turning point ofwhether it can be a truly essential infrastructure foreveryday life and corporate activities. While users havegone as far as feeling they are unable to live without thenetwork or the Internet in terms of the recognition of itsconvenience, at the same time they are tired of viruses,




spam, phishing, the disclosure of personal information,etc. If these negative aspects become too prominent,there is a possibility that current users (late majority aswell as early majority) may limit their use of the net-work or avoid it altogether.

In order to prevent such a situation, now that the net-work society has taken firm root, the focus should beshifted to the prosecution of offenders and the estab-lishment of a framework that enables the followingactions: first, “deterring” an offender from committingthe crime in the first place, second, “arresting” offend-ers without fail through thorough investigation once acrime is committed, and third, “meting out an appropri-ate punishment.”

Although security measures were incorporated in thenational IT strategy in 2003, measures to protect privacyshould be added in the next-phase national IT strategy.At the same time, approaches by society to catch andpunish offenders should also be included in addition tomeasures promoting preventive actions on the victimside, which have received priority in the past.

In this sense, “security, privacy and network crimemeasures” should be established as core areas in order tomake it abundantly clear that network attacks are crimesand will result in strong punishment.

In this respect, there is much that we can learn fromthe advanced and comprehensive approaches taken in theUnited States. Since the September 11 terrorist attacks, theUnited States has been allocating substantial resourcesnot only to national security and public order in the realworld, but also to advanced security measures for theworld of electronic networks. In this respect, it will beimportant to make the next-phase national IT strategyeffective by learning from the extensive experience accu-mulated in the United States and by keeping in step withthat country.

Notes(1) While the trend of using the term ICT (information and

communications technology) vs. IT (information technol-ogy) and using such expressions as “ICT strategy” and“ICT paradigm” has recently increased, this paper mostlyuses “IT” except for the portions related to “u-Japan pol-icy” in order to maintain consistent usage with my pastpapers.

(2) Masahiko Sato Laboratory of Keio University, Nihon noswitch (Japanese Switch), the Mainichi Newspapers, 2004.

(3) Teruyasu Murakami, “Establishing the UbiquitousNetwork Environment in Japan: From e-Japan to u-Japan,” NRI Papers, No. 66, July 2003 and “Ubiquitous

Networking: Business Opportunities and StrategicIssues,” NRI Papers, No. 79, August 2004.

(4) Mark Weiser, “The Computer for the 21st Century,”Scientific American, September 1991.

(5) Table 1 of “Ubiquitous Networking: Business Opportunitiesand Strategic Issues,” NRI Papers, No. 79, August 2004.

(6) Yubikitasu nettowaku (The Ubiquitous Network), NRI,2000, Yubikitasu nettowaku to shijo sozo (TheUbiquitous Network and Market Creation), NRI, 2002and Yubikitasu nettowaku to shin shakai sisutemu (TheUbiquitous Network and New Social System), NRI, 2002.

(7) Teruyasu Murakami, “Ubiquitous Networking: BusinessOpportunities and Strategic Issues,” NRI Papers, No. 79,August 2004.

(8) Teruyasu Murakami, “The Ubiquitous Network: TheNew ICT Paradigm,” Second International UbiquitousComputing Symposium 2004 in Seoul, October 24, 2004.

(9) Same as Note 7.(10) The Tokyo Ubiquitous Network Conference, May 16 and

17, 2005 (www.wsis-japan.jp/index_j.html).(11) Liu Jiren, “Applications and Practices of Ubiquitous

Computing in China,” The Tokyo Ubiquitous NetworkConference, May 2005.

(12) Teruyasu Murakami, “The Ubiquitous Network as theNew ICT Paradigm,” Forum on the Construction ofUbiquitous Digital Society in Shanghai, May 31, 2005.

(13) “The Final Report of the Policy Roundtable for Realizinga Ubiquitous Network Society,” Ministry of Internal Affairsand Communications, December 2004 (www.soumu.go.jp/joho_tsushin/eng/Releases/Telecommunications/news041217_7.html).

(14) Same as Note 13.(15) “Vision for Information-based Economy and Industries,”

the Information Economy Committee of the IndustrialStructure Council, April 2005.

(16) “Principles for Formulating the Basic Policy for Scienceand Technology,” Council for Science and TechnologyPolicy, June 2005.

(17) Same as Note 16.(18) “Research and Development for Ubiquitous Network

Society—UNS Strategic Programs,” Research andDevelopment Strategy Committee of the Information andTelecommunication Council, June 2005.

(19) Figure 3 of “Ubiquitous Networking: Business Opportunitiesand Strategic Issues,” NRI Papers, No. 79, August 2004.

(20) Figure 5 of “Ubiquitous Networking: Business Opportunitiesand Strategic Issues,” NRI Papers, No. 79, August 2004.

Teruyasu MURAKAMI is chief corporate counselor at NRIand Doctor of Informatics, Kyoto University. His specialtiesinclude social systems, management strategies, ICT strate-gies and social information.



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japan's national it strategy and the ubiquitous network

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