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a CANADIAN SECURITY INTELLIGENCE SERVICE publication
August 93
Unclassified
Editors Note:
As a country limited in natural resources, Japan recognized in the mid-1960s the need to develop its human and knowledge resources if it wished to play a significant role in future scientific and technological developments. By the late 1980s, Japan's scientific and technological capabilities were well recognized internationally. However, what is not so well known is how Japan was able to advance rapidly in achieving its major goals.
The author of the issue of Commentary, Professor V. Ujimoto of the University of Guelph, describes the Japanese institutions that set policies for that country's information requirements—not only how they do it, but what those future requirements are. Professor Ujimoto concludes with a discussion of the implications for Canada's own economic security.
Disclaimer: Publication of an article in the COMMENTARY series does not imply CSIS authentication of the information nor CSIS endorsement of the author's views.
The rapid dissemination of social, economic and political information on a global basis enabled many Japanese "think-tank" planners to recognize the relevance of information technology. The international flow of economic, political and scientific information meant that certain activities such as financial transactions did not recognize national borders. Furthermore, multinational corporations with their own telecommunications facilities were able to exchange information world-wide on a continuous cycle across various time zones throughout the 24-hour day.
The importance of information and the informatization of Japanese society has been widely recognized by both industrial and educational sectors of Japan. Recent developments in the integration of computers and telecommunications have provided the necessary stimuli to informatize business regardless of its size. The leadership role in Japan's informatization process has been provided by both national and regional governments. From the perspective of intergovernment co-operation and information requirements for policy making, it is worth noting that it is the central government that provides the original "vision" statement and policy concepts, which are then discussed and developed with regional or local governments.
The global flow of relevant information does not occur in a vacuum; it takes place according to a well developed strategy prior to actual information-gathering. Areas for scientific and technological development are identified by Japanese research institutes, both private and public. Most often than not, such areas are closely related to long-range plans developed by the Prime Minister's Office. The National Institute for Research Advancement (NIRA) observes that long-range plans are requested by the Prime Minister from the Economic Council and are based on months of research, global information gathering, computer simulations and considerable discussion.
Now that the Cold War is over, Japan's information needs will be concentrated more in the economic rather than in the political sphere of activities. In this regard, the role of Japanese think tanks and research institutes will increase in significance.
The Japanese government consists of the legislative, executive and judicial branches. The executive is the most relevant branch for strategic information-gathering; it consists of the Prime Minister's Office and several key ministries responsible for both short and long-range planning. These ministries are, for example, the Ministry of Justice, Education, Foreign Affairs, International Trade and Industry and the Ministry of Posts and Telecommunications.
Of particular interest from an institutional intelligence perspective is the Prime Minister's Office (PMO). Directly associated with the PMO is the Council for Science and Technology, the Science Council of Japan, the Science and Technology Agency, the Economic Planning Agency and the Defence Agency, each headed by a Minister of State. This arrangement under the PMO facilitates the co-ordination of both research activities and information-sharing across agencies. These are also the key agencies that collaborate with private industries and research institutes.
The Science Council consists of 210 members representing the scientific and academic establishments in Japan. It co-ordinates Japanese scientific research, provides domestic and international liaison with scientific groups, establishes future research priorities and objectives and develops science policy to achieve its scientific objectives. The close liaison with the Prime Minister's Council on Science and Technology results in the rapid establishment of science policy and its implementation. Another positive result of the relatively high degree of co-operation among various ministries is that Japan is able to transfer research and development results quickly to the commercial sector.
Three factors characterize the ways in which Japan is addressing information management. First, strategic science and technology areas for information-gathering and future research objectives are well established by a panel of experts drawn from various ministries, industries and research institutes. Second, experts from the various agencies and ministries are usually linked to the Prime Minister's Office. By virtue of the fact that the Prime Minister chairs the Science Council of Japan, the key decision makers are able to facilitate the co-ordination and dissemination of information. This results in greater inter-ministry co-operation rather than in competition. Finally, Japan's intelligence requirements are based on an extremely long-term perspective, from 10 to 50 years into the future.
Although several other ministries are included within the executive branch, one other ministry noted here is the most important in terms of its long-range planning and co-ordinating roles: the Ministry of International Trade and Industry (MITI) is perhaps the most well known in Canada because of Canada-Japan trade relations. However, its mandate goes beyond trade matters and includes issues related to global competitiveness and international collaborative research in those areas considered strategic by the various science and technology agencies.
Overseas information needs of MITI are secured through the Japan External Trade Organization (JETRO). MITI has its own Research and Statistics Department as well as its own Data Processing Administration Division. Strategic world trade data and market intelligence are obtained from JETRO offices located in most major cities of the world. The JETRO White Papers on International Trade provide impressive assessments of current economic, political, trade, science and technology and new product developments around the world. At present, JETRO is engaged in a study of new developments in the international division of labour. In order to take advantage of lower labour costs in developing countries, industrialized nations are providing the capital goods and technology to produce consumer goods which are then exported. The rapid development of ASEAN economies provides ample proof of its success.
There are several well-known think tanks in Japan. The Nomura Research Institute was established in 1965, the Mitsubishi Research Institute in 1970 and the National Institute for Research Advancement (NIRA) in 1974. While the first two investigate corporate business strategies, the latter is basically a policy research organization.
The Agency of Industrial Science and Technology is an immense research organization that consists of 16 laboratories and over 2,500 scientists, or approximately 25% of all scientists working in Japanese research institutes. Nine of AIST's 16 laboratories are located at Tsukuba Science City, a city that was planned as a major centre for scientific research approved by the Japanese Cabinet in 1963 and completed in 1981.
There are 45 national research institutions and 200 private companies at Tsukuba. In April 1992, the University of Tsukuba established a graduate school to "implement the most advanced education in a wide range of fields" through co-operative relations between the university and various research institutes. The students at Tsukuba University gain considerable experience through "optimal use" of the many research institutes available at Tsukuba. In 1992, 33 scientists were serving as professors to assist doctoral students.
From a North American perspective, the Japanese research institutes and universities appear to be highly co-operative and their projects well co-ordinated. Not so, according to Japanese scientists; at present there are ambitious plans to establish a new research centre called the Interdisciplinary Research Institute for Industrial Science (IRIS). Its main purpose is to promote "cooperation and exchange in every dimension—among industry, academia, government, and between different fields and nations". As an integral part of AIST, the Interdisciplinary Research Institute for Industrial Sciences will carry out both basic and applied research.
The National Institute of Science and Technology (NISTEP) is one of the six national research institutes established under the Science and Technology Agency. The role of NISTEP as an excellent facilitating agency for undertaking mega-research projects is best exemplified by the recently completed Japanese Science and Technology Indicator System study. NISTEP co-ordinated the research activities of scientists from seven universities, four major corporations, five research institutes and eight government agencies in addition to twenty-six of their own NISTEP scientists on the project.
Not all leading-edge research takes place at the think tanks; the corporate sector is closely involved as well. As an island nation, the Japanese have been quick to realize the significance of telecommunications technology in the acquisition and dissemination of not only scientific information, but vital financial and economic information as well. One of the main characteristics of Japanese research is their use of a very long time-horizon in their overall planning process. One excellent example of such long-term research planning is provided by NTT (Nippon Telegraph and Telephone Corporation).
In the development of their Visual, Intelligent and Personal (VI & P) communications service, NTT allocated 15 years to develop the concept and a further 10 years to evaluate and to market the final product, a total of some 25 years.
Similarly, the fusing of mechanical and electronics technology will enable computers to perform knowledge and information processing rapidly. The long-range planning process enables planners to visualize future target areas such as integrated multimedia capabilities; for example, telephone, data, still-picture and video image transmission at high speeds. NTT is currently working towards the next generation of optical telecommunications technology which will be capable of transmitting information at one terabit per second through a single optical fibre.
According to NTT, their long-term information requirements in terms of their current and future research and development centres on 1) high-speed broadband (B-ISDN) services that use advanced switching and lightwave technologies; 2) intelligent communications that use knowledge processing by computers; and 3) the development of advanced personal communications services. NTT has already created a multimedia B-ISDN environment and is currently testing a high-speed image data transmission and retrieval system. Their "virtual space" teleconferencing system accommodates audio, full -motion video and graphics capabilities.
NTT conducts research in several other strategic areas that are important to Japan's intelligence and information needs. Research in artificial intelligence and in expert systems related to information and knowledge processing technologies provides the architecture for "next generation" operations. For example, current research on artificial intelligence focuses on dynamic environments; this calls for an algorithm such as the Moving Target System, capable of identifying the solution to the problem that is in the process of change. The development of pattern and image recognition systems is relatively well advanced in Japan.
As information systems become more integrated into worldwide networks, the protection of sensitive information and privacy of communications takes on added significance. Other areas of research by NTT include voice recognition, synthesis research, inference and knowledge processing. A measure of success in the global competitive environment will be the extent to which strategic knowledge and information can be rapidly integrated and managed across intelligent communication systems.
Japan's immediate information needs are met by the information service industry. This industry can be characterized by the various types of services provided. According to the Japan Information Service Industry Association (1992), these are (1) processing services, (2) software development, (3) software products, (4) data entry services, (5) remote computing services, (6) facilities management, (7) database services, both online and offline, (8) various types of market research and other types of survey research, and (9) educational or consultative services.
The greatest single user of the information services in Japan has been the banking and financial services sector. Future investment decisions must be based on accurate information as well as on rapid access to them. Thus, the banking and investment groups in Japan have given top priority to use the expertise of the information services industry. Although there is a current slowdown in economic and investment activities in Japan, reports indicate that this has not as yet affected the information services industry.
An examination of other information needs can be obtained from a recent survey conducted by the Japan Information Services Industry Association. The data collected from 496 of the 2,213 companies listed on the securities and financial institutions of Japan revealed that their greatest need was in the area of "labour saving production and administration" followed by "systems integration and renewal". The 496 companies that responded to the survey were all aware of the need to connect informatization with corporate strategy. The JISA survey also found that an average of nine information system projects per company were currently being developed by users and that the average investment per project was approximately (US) $800,000.
The survey found that the greatest investment in information system projects per company was made by the utilities (electricity, gas and water supply) industry. Investment of (US) $58 million per company in the utilities industry far exceeded the $16 million per company in the financial industry.
In terms of future information service needs, the Japan Information Services Industry has identified the following:
Of all of the above items, given the demographic profile of Japanese society today, information needs related to labour shortages are currently being addressed. Many of the industrialized nations are or soon will be faced with problems similar to those currently experienced by Japan. The integration of information services with future national goals will be a strategic consideration for survival.
Japan's information requirements can be readily linked to other visionary projects at both the domestic and international levels. For example, the Ministry of Posts and Telecommunications project entitled the "Teletopia Concept" addresses the issue of residential information systems. In contrast, projects that seek similar information at the international level are incorporated in the various projects of the Pacific Economic Cooperation Council (PECC). Within PECC, there are the various national committees that address specific information and human resources development issues.
An important factor that is considered in the development of an informatization infrastructure in Japan is the linkage of the proposed project to the "overall activities for vitalizing the industry and society of the various regions". Nakajima (1992: 5) observes that many of the recent projects have used advanced information systems to serve as the core foundation. This need for an advanced information system stems from the fact that data on a multitude of key variables must be secured at the outset of any policy formulation, let alone project development.
Another relatively important aspect of information infrastructure planning from a Canadian national perspective is the high degree of inter-government co-operation among various Japanese government ministries, a degree of co-operation which can be attributed to the widely held recognition that in the global information environment, the well-being and general competitiveness of various regions in Japan must be viewed from an integrated perspective. Hence, the extremely important role for telecommunications networks for the exchange of vital information.
The information systems currently used in Japan consist of videotext, PC communications, CATV, facsimile and advanced digital and satellite communications. Through these means, the regional or local governments take concrete actions on the informatization processes. Specific examples of informatization at the community level are weather and disaster prevention information, traffic information, library and museum information, public facilities reservations systems and the management of health information.
One of the many spin-off benefits of a progressive informatization policy is the attraction it offers to private enterprises to relocate to those areas which the government has identified for regional information projects. Governments and private enterprises thus work in mutually beneficial ways. Incentives provided by governments to private enterprises to relocate are eventually repaid indirectly through improvements to the general well-being of the community. Computer enterprises that move into new regions establish personnel employment channels and human resources which are subsequently developed through education and training of local workers. A prosperous enterprise and an employed labour force pay taxes, thus contributing to the government's revenue.
The rapid advancements made by Japan in the management of information technologies has several important implications for Canada. First, Japan has already recognized the importance of the transformations that are taking place in the international trading system. MITI and JETRO research reveals that Japan has the capability to shift overseas investments just as rapidly as intelligence information dictates. For Canada, this means that future Japanese investments may not occur as easily as in the previous decade.
In order to illustrate the above, consider one prime example of Japanese investment in Canada. The Mitsubishi Corporation and Mitsubishi Canada invested a combined total of C$131 million in Ontario during the past five years. Mitsubishi research on NAFTA indicates that Canada as a place for future investment may be replaced by Mexico. Unfortunately, the implications of the transformations occurring in global trading are yet to be recognized by Canadian politicians.
The second implication for Canada is the necessity for the Canadian educational system better to reflect the changing global realities. Canadian education has traditionally been Eurocentric; however, in some progressive high schools in British Columbia and Alberta, Asia Pacific content has recently been added. Mexican and Latin American content is generally not available until post-secondary education at some universities. Without an appreciation of the increasingly global flow of goods, it is extremely difficult to develop even short-term policy.
Related to the above is the third implication for Canada. It is important for Canada to develop long-term educational strategies that reinforce the integration of science and engineering courses with appropriate social science courses. Transformations in science and technology impact on society and Canadians must be prepared to cope with change. Education must be perceived as a life-long process and not merely as graduating from secondary school. An awareness of the global competitive environment also requires an appreciation of other cultures and political systems. Ideally, Canada's multicultural society can serve as a model for social and economic development.
Finally, in terms of Canada's future economic security, the Japanese experience clearly points to the importance of considering joint research projects in those areas considered strategic. In Japan, both MITI and NTT advanced technology projects are already well planned in the fields of information technology, solar energy generation, flexible manufacturing systems and aerospace technologies. Because of the high costs involved in research today, the option of entering into joint projects of mutual benefit to Canada and Japan is increasingly attractive. In this regard, the recommendations of the Canada-Japan Forum 2000 report released in December 1992 are noteworthy.
Japan's present and future information requirements are mostly associated with the related field of computers and telecommunications, which are at the heart of the information technologies. There are three important conclusions to be drawn from what has been described in the foregoing. One is that information, whether in the economic, political, social, or science and technology related fields, is integrated wherever necessary to meet specific R&D requirements. Second, the sources of Japan's knowledge and information are not limited to a single region or to its own national boundaries, but are obtained from global sources using the latest technologies. Third and perhaps most important, there is in Japan an extremely high degree of tripartite co-operation between governments, industry, and academia in establishing research and development objectives and subsequent policies.
Commentary is a regular publication of the Analysis and Production Branch of CSIS. Inquires regarding submissions may be made to the Chairman of the Editorial Board at the following address:
The views expressed herein are those of the author, who may be contacted by writing to :
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ISSN 1192-277X
Catalogue JS73-1/34
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