2006 / 4 - 2007 / 3
Research Institute of Economy, Trade and Industry, IAA
CONTENTS
About RIETI
1 MessagesfromtheChairmanand
The Research Institute of Economy, Trade and Industry (hereinafter referred to as RIETI), an
incorporated administrative agency, was founded in April 2001, at the time of the launch of the
incorporated administrative agency system. RIETI was established upon the foundations laid by its
forerunner, the Ministry of International Trade and Industry/Research Institute (MITI/RI, established
in April 1987), an internal branch of what was then the Ministry of International Trade and Industry.
Under the aegis of the ministry, MITI/RI primarily conducted fundamental research on trade policy
as well as on the overall economic situations in Japan and abroad from both theoretical and
empirical viewpoints.
With the 21st century comes an era of change. In order to ensure its future as a mature and
vibrant society in this rapidly changing international environment, Japan must proceed with bold
reform of its economic structure as well as in its administrative and fiscal systems. Against this
backdrop, there have been growing calls for strengthening the government’s ability to formulate
vigorous and innovative policies in a variety of fields, going beyond the traditional confines
of policymaking processes and leading Japan to proactively deploy policies that respond to
increasingly global dynamics and influences.
In response to such calls, RIETI was established as a policy research institute with a certain degree
of independence from the administrative authorities to carry out study, analysis, and research on
various policy issues at an internationally reputable level from a medium- to long-term perspective,
thereby accumulating the necessary knowledge to formulate and recommend policy options.
RIETI has set up an overall framework of research themes to respond to the policymaking needs.
Within this overall framework, fellows undertake their own research in a free atmosphere, building
organic linkages with other current research. Furthermore, RIETI incorporates the knowledge and
insights of outside experts into its research, through symposia and other fora. RIETI thus contributes
to policy debates and formulation through the built-in synergy in its research and its proactive
dissemination of its research, leading to policy recommendations. Additionally, RIETI not only
recruits its researchers from government ministries and agencies but also appoints specialists
from a great variety of backgrounds outside the government-including university professors and
researchers at private-sector research institutes both in Japan and abroad-to engage in research
activities during their fixed-term contracts.
RIETI was given high grade for its performance and achievements for the first five-year mid-term
plan, i.e. fiscal 2001-2005, by the Incorporated Administrative Agencies Evaluation Committee. Now
RIETI has begun its second five-year mid-term plan as of fiscal 2006. As a platform for formulating
economic and industrial policies, RIETI seeks to provide an efficient and effective theoretical
foundation and knowledge network to the policymaking authorities. To this end, RIETI strives to
fulfill its mission of helping invigorate policy debate by strengthening its capacity to formulate
policy and improve the quality of its policy recommendations.
thePresident
2 SecondMid-termObjectivesand
Plan,MajorEventsofFY2006
3 ResearchActivities
25PublicRelationsActivities
36ListofFellows
39Organization
Abbreviations
RIETI：ResearchInstituteofEconomy,
TradeandIndustry,IAA
METI：MinistryofEconomy,Trade
andIndustry
JETRO：JapanExternalTrade
Organization
IMF：InternationalMonetaryFund
OECD：OrganisationforEconomic
CooperationandDevelopment
F：Fellow
SF：SeniorFellow
FF：FacultyFellow
CF：ConsultingFellow
VF：VisitingFellow
MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT
1
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Fiscal 2006 was the initial year of RIETI’s second Mid-term Plan, which runs for five years. We are
committed to improving on the achievements of the first such plan and hope that we can continue
to count on your support and advice.
This Annual Report explains the second Mid-term Plan to be accomplished for five years and
reviews our activities in fiscal 2006 in accordance with the plan.
The second Mid-term Plan is best characterized by four research themes set by METI as Major
Policy Research Domains: 1) Maintaining Economic Dynamism under the Adverse Demographic
Conditions of Low Fertility and Aging Population; 2) Promoting Innovation and Strengthening
International Competitiveness; 3) Formulating Japan’s Strategy in Response to Globalization and
Deepening Economic Interdependence in Asia; 4) Compilation of the History of Japan’s Trade and
Industry Policy Primarily of the 1980s and 1990s. In this report, research projects carried out in fiscal
2006 and their results are organized in line with these four domains. Distinguished experts have
been appointed as Research Counselors for the above 1) to 3) and as Editor in Chief for 4), and
several discussion fora were organized for each research project through symposia and workshops.
We have endeavored to develop a research framework that benefits from the advantages peculiar
to being an independent administrative agency. We also are working vigorously on research in
Adjacent Basic Research Areas, which RIETI sets independently, concurrently with the Major Policy
Research Domains.
RIETI is characterized by its collaboration with the academic sector, based on active interaction
among policy authorities. To take better advantage of this feature, we will be focusing on
international exchange during the new Mid-term Plan period. Fiscal 2006 saw some new
developments, including the conclusion of a memorandum of understanding for cooperation with
the Development Research Center of the State Council (DRC), China. Continuing to capitalize on
our accomplishments to date, we will also be taking steps to build international networks.
A number of new initiatives are underway in disseminating research results. We believe symposia
have accomplished the initial goal for fiscal 2006. We have also made significant improvements in
our public relations activities including revising and expanding our website and launching a series
of informational pamphlets explaining our research.
Starting with fiscal 2007, the second year of the second Mid-term Plan, we need to considerably
enhance what we created in the first year. I hope that this report will encourage your understanding
of and support for RIETI.
May 2007
Kozo OIKAWA
Chairman
Now Japan's “lost decade” has passed, the Japanese economy is finally in a position to
comprehensively tackle the issue of population aging. Meanwhile, the population decline is
emerging as a reality that poses a very long-lasting and serious issue. The New Economic Growth
Strategy formulated by the Japanese government defines further improvement in productivity
as a major challenge. In this environment, RIETI’s second five-year Mid-term Plan was launched in
fiscal 2006.
Our research during the second phase will center primarily on improving productivity and jointly
prospering from Asia's dynamic and rapid economic progress in the interest of exploring new
opportunities for growth. The key concept is likely to be innovation; increasingly regarded as a
primary goal for all industries, companies, universities, and other such organizations. To research
these areas and to consider the policy implications, it is critical to enlist a diverse array of experts to
systematically examine research themes, gather and structure essential data, and form networks of
researchers, including those based overseas. This is the approach we took in moving ahead with
our work in fiscal 2006. Although there remains much to do, we believe that RIETI is the ideal body
for carrying out inter-organizational research such as this. It is our intention to fully leverage this
strength in the future as we continue to build an even stronger research structure.
The 21st century has been called the knowledge age. Human resources are required in every
area and intangible assets are of growing value. Both academic studies and policies must keep
pace with this change. We will bring fresh thinking to our work, so that we can contribute to the
development of economic and industrial policies for Japan in this new era.
May 2007
Masahisa FUJITA
President & Chief Research Officer
About the Second Mid-term Objectives and Plan
METI has set Mid-term Objectives for RIETI s second mid-term period（FY2006-2010）.RIETI sets its Mid-term Plan
and subsequent year-on-year plans in order to fulfill the Mid-term Objectives and perform accordingly.
Effective operation & management
High academic quality of research achievements
Improve the quality of services to the public
Appropriate research project agenda that sufficiently reflects
long- and medium-term policy formulation needs
(METI has set Major Policy Research Domains in which RIETI should continue
research for the entire second mid-term period. Please see the next page.)
Effective dissemination of research results and policy proposals
Improve financial standing
Improve the performance of policy research and dissemination activities
Other key operational issues
Efforts to fulfill
the objectives
Major Events of FY 2006
SEPTEMBER 2006
Conclusion of “Memorandum of Understanding for Cooperation”
between Development Research Center of the State Council of
the People’s Republic of China（DRC）and RIETI
Released 3 publications
（See page 28）
JANUARY 2007
Launched Research Digest
Organized 6 policy symposia
Hosted 54 BBL Seminars
Photo: July 25, 2006
“Determinants of Total Factor Productivity
and Japan’s Potential Growth: An International Perspective”
（See page 30）
Photo: June 9, 2006
Speaker（right）
: Jane E. Fountain（Professor,
Univ. of Massachusetts Amherst）
Moderator（left）
: Rizaburo NEZU（Director,
RIETI）
（See page 33）
Research Activities
2
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Major Policy Research Domains
Ⅰ.Maintaining Economic Dynamism
under the Adverse Demographic
Conditions of Low Fertility and
Aging Population
Ⅲ.Formulating Japan's Strategy in
Response to Globalization and
Deepening Economic
Interdependence in Asia
Ⅱ.Promoting Innovation
and Strengthening
International
Competitiveness
Ⅳ.Compilation of
the History of Japan s Trade
and Industry Policy Primarily
of the 1980s and
1990s
Adjacent Basic Research Areas
B. Regulatory Reforms
and Evaluation Frameworks
for Deregulation
A. Institutions Related to
Financial and Labor Markets,
and New Corporate Law
and Governance
C. Compilation of Micro Panel Data
on Firm Activities, Trade, Energy,
and the Elderly; and Model
Building and
Operation
The Ministry of Economy, Trade and Industry (METI) has identified Major Policy Research
Domains for which RIETI should continually carry out research through the second mid-term
period (FY2006-2010). Furthermore, RIETI is conducting its research in the Adjacent Basic
Research Areas in which RIETI can choose newly emerging relevant policy issues from a
medium- to long-term perspective in a more timely and flexible manner by responding to
changes in socioeconomic conditions.
Notes : The following pages list main research projects. Fellows titles are applicable for FY2006.
Most research results shown in the following pages are downloadable from RIETI s website.
Abbreviations are on the reverse of the front cover.
3
Ⅰ
Policy Research Domain
Maintaining Economic Dynamism under the Adverse Demographic Conditions of Low Fertility and Aging Population
Japan is faced with a challenging task of achieving sustainable economic growth at a time of
unparalleled declining fertility and aging population. In order to help policymakers meet this
challenge, RIETI will undertake comprehensive and integrated research on means of promoting
structural change in the economy; increasing labor force participation rates of women, the elderly,
and young people; increasing productivity of both labor and capital; identifying a social security
system that can secure an optimal intergenerational and intra-generational balance of benefits and
contributions under the public pension system; and designing effective fiscal policy and restoring
the nation's fiscal balance.
Introduction of Research Projects
I-1) Economic Growth under Conditions of Low Fertility and Aging Population
Project Leader/Sub-Leader: Hiroshi YOSHIKAWA, FF/Kazuyuki MATSUMOTO, FF
<Overview>
The Japanese economy has broken out of its prolonged recession and embarked upon a new phase of expansion. Looking ahead over
the medium- to long-term, however, it will be characterized by the aging of society and declining population, and it will follow a new
path of growth never experienced in modern times, making it necessary to have knowledge and policies that differ from those before.
Given this situation, in our research we analyze the factors that have a significant impact on economic growth under conditions of low
fertility and an aging population. Specifically, these include the microstructure of innovation, the impact of technological advances
on capital investment, the land system and agricultural productivity, labor mobilization, and the determinants of the labor force
participation rates of women. We will also undertake basic research relating to measurement derived from the aforementioned themes
(including the reexamination of the operating ratio index and the services deflator). Through the aforementioned studies, the objective
of our research project is to gain new knowledge and draw policy implications in order to develop a strategy for future growth.
I-2) Building a New Macroeconomic Model: Focusing on the Financial System
Project Leader: Keiichiro KOBAYASHI, F
<Overview>
In order to analyze the macroeconomic policy issues facing the Japanese economy, it is essential to build a more policy-relevant
macroeconomic model. The macro model currently in widespread use in academia is an approach to explain actual data from
assumptions about sticky prices and habit formation in consumption. In our research we focus on addressing financial issues such as
borrowing constraints on working capital financing (using land as collateral), in building a theoretical model to explain macroeconomic
data. In addition, we analyze the relationship between changes in banks' equity capital and the productivity of the economy as a whole
from both a theoretical and an empirical perspective. We also analyze themes derived from these themes (e.g. characteristics of medium
to long-term economic fluctuations, the Ramsey tax problem in the event of hypothetical crises such as wars). The analytical method is
primarily theoretical research, and whenever necessary we adopt such methods as (1) the building of theoretical models, (2) the use of
data to conduct empirical research, and (3) case studies by such means as literature searches.
<Major Research Results>
Discussion Papers
Collateral Constraint and News-Driven Cycles (Preliminary and Incomplete)(Keiichiro KOBAYASHI, Tomoyuki NAKAJIMA and Masaru
INABA) (DP No.:07-E-013)
Bank Distress and Productivity of Borrowing Firms: Evidence from Japan (Preliminary and Incomplete) (Fumio AKIYOSHI and Keiichiro
KOBAYASHI)(DP No.:07-E-014)
I-3) Empirical Analyses Relating to IT and Productivity
Project Leader: Kazuyuki MOTOHASHI, FF
<Overview>
Japanese companies have been investing actively in information technology (IT) since the second half of the 1990s, but it appears that
the impact of this on their productivity has been limited. IT is used in a wide range of industries, and in nonmanufacturing industry
in particular, it is an important complement technology for realizing business innovation. In view of this, we believe that fostering
the effective use of IT will have a major impact on trends in total factor productivity at the macro level. In this research we make
comparisons with the United States and certain Asian countries, making comprehensive empirical analyses from both macro and
micro perspectives, including from an international standpoint, in order to address the questions of whether the use of IT by Japanese
companies is being conducted effectively, what the causes are if that is not the case, and what policy methods are conceivable for
promoting the effective use of IT in the future.
<Major Research Results>
Discussion Papers
Licensing or Not Licensing?: Empirical Analysis on Strategic Use of Patent in Japanese Firms (Kazuyuki MOTOHASHI)(DP No.:06-E-021)
Centralization or Decentralization of Decision Rights? Impact on IT Performance of Firms (Takahito KANAMORI and Kazuyuki

MOTOHASHI) (DP No.:06-E-032)
Information Technology and Economic Growth: Comparison between Japan and Korea (Takahito KANAMORI and Kazuyuki
MOTOHASHI) (DP No.:07-E-009)
4
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Introduction of Research Projects
I-4) Economic Analysis of Countermeasures for Low Fertility
Project Leader: Yoshio HIGUCHI, FF
<Overview>
Declining fertility and aging of society in Japan are advancing at an unprecedentedly rapid pace in comparison with other countries,
with the result that the country is clearly entering an era of labor shortages. As a measure to compensate for the shortage of labor,
women's entry into the labor force is being required to a greater extent than before. On the other hand it is believed by some that
the increase in the female employment rate will cause the fertility rate to fall still further, and that the resultant population decline will
impede economic growth in the long run. To counter that prospect, policies have been implemented to enable the fertility rate to
rise and at the same time women to continue in employment, for example through the development of a system of child care leave.
However, it is not yet safe to say that the results of these measures have been verified empirically. Accordingly, in our research we (1)
analyze the factors behind the decline in the fertility rate, and study how great an impact institutional changes such as the introduction
of the child care-leave and other such schemes has been having, and (2) analyze factors that impede the continuation of women's
participation in the work force, and study what kind of institutional design is required.
<Major Research Results>
Discussion Papers
Empirical Analysis of Fertility Rates-Focus on its Relationship with the State of Economic Activity and Family Policy (Akihito TODA) (DP

No.:07-J-007)
Impact of Regional Factors on Births and Wives' Continuation in Employment-Panel Survey of Consumers by the Institute for
Research on Household Economics (Yoshio HIGUCHI, Toshiyuki MATSUURA and Kazuma SATO) (DP No.:07-J-012)
I-5) Toward a Comprehensive Resolution of Social Security Problems: A new Economics of Aging
Project Leader: Satoshi SHIMIZUTANI, FF
<Overview>
As Japan experiences the aging of its society at a pace unprecedented worldwide, it is essential to build a sustainable social security
system that ensures that the elderly do not suffer a decline in quality of life. Our research transcends the bounds of the traditional fieldspecific approach that addresses the health care, long-term care, and pension fields separately, and of simulation analysis with the
use of macro models, and instead adopts a "new" microscopic yet comprehensive, market-oriented approach that is premised on the
diversity of the elderly. Based on pilot studies already conducted as a research project in fiscal 2005, and with the intellectual support
of the analogous studies of the elderly (the U.S. HRS [Health and Retirement Study], ELSA [English Longitudinal Study of Ageing] in the
UK, and SHARE [Survey of Health, Ageing and Retirement in Europe] in Continental Europe), our research has inaugurated a worldstandard panel study on population aged over 50. We are gathering data that is both multi-faceted, covering such aspects as health
condition, economic situation, family relationships, employment status, and social participation, and that is also capable of international
comparison. Our intention in doing this is to help ensure that "evidence-based policy-making" based on an abundance of microdata
becomes an established feature in the sphere of social security policy in Japan, and that Japan's experience can be taken advantage of
by other countries in their policy-making.
<Major Research Results>
Discussion Papers
Analysis of the Survey Response Behavior: An Experience from a Pilot Survey of the Health and Living Status of the 50s and beyond in
Japan (Hidehiko ICHIMURA, Daiji KAWAGUCHI and Satoshi SHIMIZUANI) (DP No.:06-E-035)
International Workshop
"Conference on Japanese Version of HRS/ELSA/SHARE" (Aug 4-5, 2006 and Sep 19, 2006)
I-6) Study on Social Security: Development of a Simulation Model for Social Security Finance
Project Leader/Sub-Leader: Mitsuhiro FUKAO, FF/Daigo NAKATA, F
<Overview>
The rapid aging of the Japanese population will increase the burden of social security finance in the future, and this is a cause for
concern with regard to the maintenance of Japan's economic vitality. In order to forecast the future burden of social security finance
and the future benefits, it is essential to build a simulation model for social security finance that accurately reflects Japan's social security
system. Accordingly, in our research we focus on pension finance analysis using a pension simulation model previously developed at
RIETI, while also conducting analyses in other social security fields. In this way we will build a simulation model to make possible the
comprehensive analysis of pension, health care, nursery care, and welfare finance, and study the desirable forms of the benefits and the
burden of a social security system that is compatible with economic vitality in a society characterized by a declining fertility rate and
aging population.
Other research results in Domain I
Discussion Papers
Roles of Regimes under the Gold Standard and Impact on Prices (Shumpei TAKEMORI and Liudmila SAVCHENKO)(DP No.:06-J-029)
Simulation Analysis of Debt Management Policies to Ensure the Sustainability of Japan's Public Debt (Takero DOI)(DP No.:06-J-032)
Analysis of the Impact of Pension System Reforms on the Labor Supply Behavior of Elderly Males (Yoshio HIGUCHI, Masako

KUROSAWA, Kayoko ISHII and Toshiyuki MATSUURA)(DP No.:06-J-033)
Impact of Family Care Needs on Elderly Workers' Decisions on Retirement (Yoshio HIGUCHI, Masako KUROSAWA, Tadashi SAKAI,

Kazuma SATO and Emiko TAKEISHI)(DP No.:06-J-036)
Marital Satisfaction and Work-Life Balance: A Viewpoint Indispensable to Mitigating Fertility Decline (Kazuo YAMAGUCHI)(DP

No.:06-J-054)
Aging Japan and the National Burden Rate (Akira OKAMOTO)(DP No.:06-J-056)
The Optimal Funding Method for the Social Security System (Toshiaki TACHIBANAKI, Akira OKAMOTO, Masumi KAWADE, Toshiya

HATANO, Naomi MIYAZATO, Toshihiko SHIMA and Akifumi ISHIHARA)(DP No.:06-J-057)
Opinion Survey and Econometric Analysis of the Benefit of Public Spending and the National Burden (Toshiaki TACHIBANAKI, Akira

OKAMOTO, Masumi KAWADE, Toshiya HATANO and Naomi MIYAZATO)(DP No.:06-J-058)
An Optimal Rate of the National Burden in an Aging Japan (Akira OKAMOTO) (DP No.:06-E-036）
5
Ⅱ
Policy Research Domains
Promoting Innovation and Strengthening International Competitiveness
Continuous innovation is vital for strengthening the international competitiveness of Japanese
companies. However, the effects of innovation and the policies that promote it are extremely
difficult to quantify. In undertaking research in this field, it is vital to have an analytical framework,
both theoretical and empirical, that clarifies the correlations between innovation at the corporate
and industry levels and total factor productivity (TFP). RIETI will evaluate and analyze conditions
surrounding Japanese industry and specific industrial and technological policies to provide findings
that the government can utilize to promote innovation policies.
Introduction of Research Projects
II-1) The Structural Characteristics of Research and Development by Japanese Companies, and Issues for the Future
Project Leader: Sadao NAGAOKA, FF
<Overview>
Effective research and development (R&D) by Japanese companies is of the greatest importance to the future growth of the Japanese
economy. However, social science knowledge with respect to the fundamental factors of research such as the source of knowledge,
external collaboration, spillover, financial constraints, barriers for the commercialization of research results, and the motivation of
inventors is extremely limited. In our research we conduct a comprehensive survey of Japanese inventors, for the purpose of collecting
information on these matters systematically at the level of research projects being implemented within companies. This is the first
survey of its kind to be conducted in Japan. By means of statistical analysis of a combination of the information gathered from the survey
and existing statistics, we will elucidate the structural characteristics of Japanese companies' R&D, and will analyze the determinants of
R&D performance and future policy issues. In addition, we will make preparations with a view to conducting international comparative
analysis from the next fiscal year onwards, including exchanging views with academics in Europe and the United States with regard to
the questionnaires and research methods.
II-2) Productivity of Companies and Industries, and Japan's Economic Growth
Project Leader: Kyoji FUKAO, FF
<Overview>
In the Japan of the future in which the working population is declining, raising productivity will be the principal source of economic
growth. In addition, total factor productivity (TFP) determines the rates of return of physical and human capital, and it is also an
important determinant of capital and educational investment. In our research we will be able to analyze the latest productivity trends
in the Japanese economy by updating the Japan Industrial Productivity (JIP) database annually. In fiscal 2006 we aim to cover the
years from 1970-2004. In addition, by integrating microdata covering all economic activity in Japan with macro industry-level data we
will analyze increases in TFP and labor productivity at macro industry level from the perspectives of increases in productivity within
individual firms and factories, the reallocation of resources among firms and factories, and entry/exit behavior. At present, the work
of creating productivity databases at the two-digit level (for the entire macroeconomy; 72 sectors) is being conducted through the
KLEMS project led by the University of Groningen with regard to the core EU countries and the United States, and at Seoul National
University with regard to South Korea. The JIP database is participating in the EU KLEMS project on behalf of Japan. By collaborating
with these organizations and Dale W. Jorgenson (Samuel W. Morris University Professor, Department of Economics, Harvard University),
we will make detailed international productivity comparisons at the industry level. In addition, in collaboration with various bureaus
and divisions at METI, research will be conducted into such matters as the impact of internationalization on firm productivity (Policy
Planning and Research Office, Trade Policy Bureau), estimation of stocks of intangible assets at the macro and industry level (Technology
Promotion Division), and productivity in service industries.
<Major Research Results>
Discussion Papers
Productivity and Financing of Start-ups (Tsutomu MIYAGAWA and Atsushi KAWAKAMI)(DP No.:06-J-027)
 The Quantitative Assessment of Organization Capital (Tsutomu MIYAGAWA and Young Gak KIM)(DP No.:06-J-048)
The Shadow of Death: Pre-exit Performance of Firms in Japan (Kozo KIYOTA and Miho TAKIZAWA)(DP No.:06-E-033)
Determinants of the Profitability of Japanese Manufacturing Affiliates in China and Other Regions: Does Localization of Procurement,

Sales and Management Matter? (Keiko ITO and Kyoji FUKAO)(DP No.:07-E-001)
Estimation Procedures and TFP Analysis of the JIP Database 2006 Provisional Version (Kyoji FUKAO, Sumio HAMAGATA, Tomohiko INUI,

Keiko ITO, Hyeog Ug KWON, Tatsuji MAKINO, Tsutomu MIYAGAWA, Yasuo NAKANISHI and Joji TOKUI)(DP No.:07-E-003)
Does Off shoring Pay? Firm-Level Evidence from Japan (Alexander HIJZEN, Tomohiko INUI and Yasuyuki TODO)(DP No.:07-E-005)

The Effects of Multinational Production on Domestic Performance: Evidence from Japanese Firms (Alexander HIJZEN, Tomohiko INUI

and Yasuyuki TODO)(DP No.:07-E-006)
Overseas R&D Activities and Home Productivity Growth: Evidence from Japanese Firm-Level Data (Yasuyuki TODO and Satoshi

SHIMIZUTANI)(DP No.:07-E-008)
What Determines Overseas R&D Activities? The Case of Japanese Multinational Firms (Satoshi SHIMIZUTANI and Yasuyuki TODO)(DP

No.:07-E-010)
International Workshop
"A Comparison of the Productivity of Japanese, Chinese, Korean and European Firms" (Mar 2, 2007)
RIETI Policy Symposium
"Determinants of Total Factor Productivity and Japan's Potential Growth: An International Perspective" (Jul 25, 2006)
6
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Introduction of Research Projects
II-3) Regional Innovation and Corporate Management in East Asia
Project Leader/Sub-Leader: Kazuhiro ASAKAWA, FF/ Susumu SANBONMATSU, CF
<Overview>
In recent years importance has been placed on metanational management in which companies do not rely entirely on home country
advantage but acquire and leverage management resources worldwide, building competitive advantage on a global scale. However,
at present, the mainstream approach is, as in the past, one of global innovation in which large corporations in industrialized countries
play the pivotal role. In view of this, the recent trends in the LCD industry in East Asia are worth noting. The process of industry creation
based on innovation chains in the East Asian region, centered on Japan, South Korea, and Taiwan, can no longer work in conjunction
with the supremacy of industrial countries or ethnocentrism. In our research we study new trends in this global innovation, focusing on (1)
the LCD industry in East Asia and (2) the development of SMEs in East Asia, with the intention of analyzing the new evolution of global
and regional innovation and of drawing implications for Japanese corporate management and industrial policy.
<Major Research Results>
Discussion Papers
Issues for Japanese Firms from Metanational Management Perspective (Kazuhiro ASAKAWA) (DP No.:06-J-030)
 Innovation and East Asian and Global Management of Start-ups and SMEs (Susumu SANBONMATSU) (DP No.:06-J-061)
RIETI Policy Symposium
"Metanational Management and Global Innovation: The Case of the TFT-LCD Industry" (Mar 14, 2007)
II-4) An Integrated Approach to the Raising of Productivity at the Macro, Industry, and Company Levels
Project Leader: Yoshihiko NISHIYAMA, FF
<Overview>
Referred to by terms such as the "lost decade," the 1990s are regarded as a period of declining productivity. However, it is not clear what
really caused the decline in productivity at the macro level. A number of causes are conceivable, such as declines in the productivity
at individual firms, the entry of firms with low productivity, and the exit of firms with high productivity, but finding the actual causes
requires an empirical approach. That requires examination with a combination of an appropriate economic model and appropriate
statistical methods, but among existing studies there is nothing suitable that can be applied directly in this regard. From the standpoint
of sustainable growth that should be sought in the future, an important issue to address is that of gaining a unified understanding of
changes in the substructure at the company and industry level, together with changes at the macro level. In our research we adopt a
comprehensive approach to this issue from both theoretical and empirical perspectives.
II-5) Research into Joint Inventions by Universities and Public Research Institutions and Privatesector Companies
Project Leader: Schumpeter TAMADA, FF
<Overview>
If companies are unable to obtain from within their own organizations the scientific or technical knowledge necessary for the
development of new products, the alternative is to collaborate with universities or public research institutions. However, collaboration
with other organizations incurs costs for searches and contracts. The objective of our research is a survey of joint inventions by
researchers at public research institutions and private-sector firms, and through this to elucidate the roles fulfilled by the universities,
other independent administrative organizations and other public research institutions, and to identify the implications for policies to
further strengthen Japan's innovation system.
<Major Research Results>
Discussion Papers
Importance of Regional Innovation Systems (Schumpeter TAMADA) (DP No.:07-J-002)
Ⅱ- 2）Productivity of Companies and Industries, and
Japan's Economic Growth
RIETI Policy Symposium
（Jul 25, 2006）
"Determinants of Total Factor Productivity and Japan’s
Potential Growth: An International Perspective"
Ⅱ- 3）Regional Innovation and Corporate Management
in East Asia
RIETI Policy Symposium（Mar 14, 2007）
"Metanational Management and Global Innovation: The
Case of the TFT-LCD Industry"
7
Introduction of Research Projects
II-6) Value Acquisition through Innovation: Japanese Companies' Competitiveness in Information
Devices and Digital Home Electronic Products, and Value-added Creation
Project Leader: Kentaro NOBEOKA, FF
<Overview>
The most important issue for the Japanese economy is the creation of value-added by means of innovation. Research until now has
been based on the hypothesis that if technical innovation can be achieved and used as the basis for developing products that meet
market and customer needs, that will lead to greater international competitiveness and productivity. However, international competition
has grown more complex in recent years, and in a rapidly increasing number of cases Japanese companies have been succeeding with
technical innovation and developing excellent products as a result, but this has not led to value-added creation. In terms of technology
management theory, this means that even if value creation is achieved, it is not possible to achieve value acquisition. This is particularly
striking in the sphere of information devices and digital home electronic products that use semiconductors, digital technologies, and
communications technologies. Many aspects of this failure to achieve value acquisition that Japanese companies are facing cannot be
explained within the existing theoretical framework relating to innovation systems. Our research is being conducted for the purpose of
clarifying, both theoretically and empirically, the desirable form of value acquisition, and of making recommendations that will enhance
the international competitiveness of Japanese companies.
II-7) Research into Japanese Companies' Architecture and Design Processes
Project Leader: Takahiro FUJIMOTO, FF
<Overview>
In the debate in economics about trade and industrial competitiveness, and in research into comparative advantage in particular,
the tacit premise has been that within the entire process of producing goods, the importance of the physical production process, or,
in other words, the efficient use of resources in that process, constitutes the foundation of a country's trade structure and industrial
structure. However, in numerous tradable-goods industries, among which it is the rule rather than the exception today to be
characterized by increasing returns to scale and product differentiation, the inference to be drawn is that rather than the efficient use
of resources in the manufacturing process it is the efficient use of resources in the preceding process, namely the design process, that
is regarded as important for analyzing any particular country's continuing industrial structure. Premised on the above, in our research
we re-examine Japan's trade structure and industrial structure on the basis of industry theory based on a design theory in which the
manufacture of goods (manmade goods) is considered from the viewpoint of creating design information, and "manufacturing" is taken
as being the optimization of the flow of this to the market. Specifically, we will attempt to devise a framework for estimating industrial
competitiveness from the compatibility of organizational capability (which, for historical reasons, is unevenly distributed in Japan) and
the architecture of the relevant products.
<Major Research Results>
Discussion Papers
Increasing Complexity of Artifacts and the Role of Product Architecture (Masahiro OKUNO, Hirokazu TAKIZAWA and Yasunori

WATANABE) (DP No.:06-J-038)
II-8) Research and Analysis Concerning the Innovation Process in Japan's Semiconductor Industry
Project Leader: Hiroyuki CHUMA, FF
<Overview>
To create an effective innovation process in science-based industries we believe that a prerequisite is to mobilize a broader range of
wisdom and knowledge of diverse experts both from within and outside each relevant company. Unfortunately, however, in Japan such
mobilization of wisdom and knowledge can hardly be said to be sufficiently broad in scope to be effective. In view of this, even in fields
in which there have been large numbers of creative discoveries, inventions, and improvements there is no shortage of cases in which it
has been difficult to use these in a way that enhances the competitiveness of the relevant science-based industries. The purpose of our
research is to re-examine, based on this awareness of current realities, the characteristics of the innovation process in the semiconductor
(devices, equipment, materials) industry, one of Japan's foremost science-based industries, in particular its strengths and its weaknesses,
and to seek remedies.
<Major Research Results>
Discussion Papers
Exploring Facstors Behind the Weakening Competitiveness of Japan's Semiconductor Production System: From the Viewpoint of
Meta-Level Integration Capability (Hiroyuki CHUMA) (DP No.:06-J-043)
II-9) Empirical Research into Software Innovation
Project Leader/Sub-Leader: Tatsuo TANAKA, FF/Jun SUZUKI, FF
<Overview>
Japan's competitiveness in the software industry is perceived as being weak. In the software industry as a whole there is an
overwhelming import surplus, while exports are less than 10% of the value of imports. Among high-value-added high-tech industries it
is rare to find any in which Japanese competitiveness is so overwhelmingly lacking. Additionally, this fact may have a negative impact
on innovation in business processes that use information technology (IT). Why is this? Why has such a disparity in competitiveness
arisen? Is it possible to devise policy remedies that will enhance competitiveness? The objectives of our research are to empirically study
various hypotheses that may answer these questions, and in so doing to identify the current state of software innovation in Japan, and
to seek policies to enhance the competitiveness of software industries and promote business innovation through the use of software.
8
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Introduction of Research Projects
II-10) The Desirable Form of Future Pro-Patent Policy
Project Leader: Yutaka KIYOKAWA, SF
<Overview>
The promotion of innovation is indispensable to the survival of the Japanese economy. There is a system of intellectual property rights
to support that, and pro-patent policies will enhance this. A milestone in the shift toward pro-patent policies was the establishment of
the Strategy Headquarters to promote them under the Koizumi administration, but in fact its history stretches back to the mid-1990s.
At that time importance was given to the spread of technologies and there was a lack of protection, as it was argued that such policies
would not sit well with the promotion of innovation. In the research conducted last year, factors such as the changes to the system
implemented up to that time were assessed, and it was concluded that Japan's pro-patent level had improved considerably. In the
United States, which is Japan's model for pro-patent policies, such policies have been revised because protection had gone too far, and
in view of the increasing complexity and sophistication of R&D, there are calls for it to be undertaken on a collaborative basis. Against
this backdrop we will study desirable forms of a system of intellectual property rights of a kind that stimulates innovation. Specifically,
while listening to the opinions of companies directly affected by this question, we will study issues such as the revision of the protection
system (exclusivity) and the desirable form of management and business strategies of a kind that put intellectual property to good use.
<Major Research Results>
Discussion Papers
Developments in and an Evaluation of Intellectual Property Rights in Japan (Evaluation of the pro-patent trend since the latter part of
the 1990s, in particular the patent system) (Yutaka KIYOKAWA) (DP No.:06-J-060)
II-11) Study on Industrial Clusters (joint research with Kyoto University)
Project Leader: Toshihiro KODAMA, Professor, Institute of Economic Research, Kyoto University
<Overview>
For Japan's economic growth strategy the formation of industrial clusters is becoming increasingly important, both for enhancing
innovation capabilities and for invigorating regional economies. In our research we will use prior research findings concerning the
TAMA (Technology Advanced Metropolitan Area) project in the western part of the Tokyo metropolitan area, which is regarded as a
model case in METI's Industrial Cluster Program, and will engage in activities such as research in the Kyoto region, where there is an
industrial agglomeration of high-tech firms and leading universities, with the objective of putting forward suggestions concerning the
desirable manner in which industrial clusters are formed. Specifically, by means of a questionnaire survey of manufacturing firms in
the Keiji district, which stretches from Kyoto and its suburbs into the southern part of Shiga Prefecture, we will identify SMEs that excel
in product development, and study the possibilities for the development of linkages between large enterprises and these productdeveloping SMEs. Based on this we will study measures and policy issues concerning the development of industrial clusters as effective
regional innovation systems, including the implications for the country as a whole.
<Major Research Results>
Discussion Papers
Product-Developing SMEs and State of Formation of an Industrial Cluster in the Keiji (Kyoto-Shiga) Area (Toshihiro KODAMA, Takashi
SAITO and Shinya KAWAMOTO) (DP No.:07-J-009)
Other research results in Domain II
Discussion Papers
Integrating Modular Products beyond Industrial Boundary-Analysis of the Integration Process of a PC System and NC System

(Tomoatsu SHIBATA and Fumio KODAMA)(DP No.: 06-J-040)
Start-up Financing and Human Capital of Entrepreneurs (Yuji HONJO)(DP No.: 06-J-047)

The Impact of Regional Factors on the Business Startup Ratio in the Japanese Manufacturing Sector: A Comparative Analysis of High
Tech and Low-Tech Industries (Hiroyuki OKAMURO)(DP No.: 06-J-049)
Regional Knowledge Networks of Corporations, Universities and Public Institutions (Ichiro SAKATA, Yuya KAJIKAWA, Yoshiyuki TAKEDA,

Naoki SHIBATA, Masahiro HASHIMOTO and Katsumori MATSUSHIMA)(DP No.: 06-J-055)
9
Ⅲ
Policy Research Domains
Formulating Japan's Strategy in Response to Globalization and Deepening Economic Interdependence in Asia
As the world economy becomes increasingly globalized, and particularly as Asian countries rapidly grow more
economically integrated, Japan needs to establish a comprehensive strategy for implementing policies that respond
to international trade rules-such as those under the WTO and FTAs-and facilitate trade and investment. RIETI
will contribute to the formulation of Japan's strategy for trade and other policies by conducting analysis on the
value chain of trade, direct investment, and technological development in Asia, as well as on the transformation of
Asia's monetary and foreign exchange systems, thereby presenting policy proposals for Asia and the world. RIETI
will investigate and sort out cases of actual implementation of trade rules, analyze the economic conditions and
trade strategies of Japan's major economic partners, and conduct research on business environments and other
factors that influence the successful operation of Japanese companies in the global arena.
Introduction of Research Projects
III-1) Research on Changes in Multinational Corporations, Trade Structures, and Market Institutions
Project Leader/Sub-Leader: Ryuhei WAKASUGI, FF/ Eiichi TOMIURA, FF & Hiroshi OHASHI, FF
<Overview>
The globalization is bringing great changes to the international economic environment for Japan. We will review the current state of
globalization in Japan from three perspectives: (1) market institutions, (2) international trade structures, and (3) trade policy. (1) Market
conditions are major determinants of international trade, foreign direct investment, and technology transfers, but their quantitative
analysis is inadequately developed. In our research we will study the importance of market conditions by developing indicators,
and analyze the impact on trade, investment, and research and development (R&D). One topic includes the impact of cross-country
differences in the intellectual property rights (IPR) protection on technology transfers. (2) Amid the globalization, the Japanese
international division of labor is becoming more complex. By analyzing the split of manufacturing processes by Japanese firms and
relating it with the firms' R&D and scale, we will cast light on the state of outsourcing, in particular the outsourcing of production. (3)
The advance of economic globalization is making it increasingly important to seriously consider the costs and benefits of safeguard
measures in trade policy. We take up the United States' experience as a case study, and re-examine the importance of these policies.
<Major Research Results>
Discussion Papers
Factors Determining the Mode of Overseas R&D by Multinationals: Empirical Evidence (Banri ITO and Ryuhei WAKASUGI) (DP

No.:07-E-004)
International Workshop
"Empirical Studies of Trade, FDI and Firms in East Asia" (Mar 16-17, 2007)
III-2) The Foreign Aid Governance
Project Leader/ Sub-Leader: Yasuyuki SAWADA, FF/ Hidemi KIMURA, F
<Overview>
The core of the debate about foreign aid is reaching a major turning point characterized by shifts from projects to budget support, from
financing to an emphasis on debt forgiveness and grants, and from bilateral to multilateral. However, the policy tools for achieving the
Millennium Development Goals (MDGs : the international aid community's fundamental development goals) are not particularly clear,
and the debate continues as to the relative efficacy of direct poverty reduction and growth-mediated strategies. In addition, whereas
the debate about the quantity of aid is unfolding, there has been no deepening of the debate about the quality of aid. In light of
these various stances, the objective of this research is to elucidate systematically the foreign aid governance* based on the evidence.
Specifically, based on this approach our research will include quantitative analysis using the "trinity model," which links foreign direct
investment (FDI), trade, and aid, in regard to disparities in the impact of foreign aid in Asia and Africa, and the causes thereof.
* "The foreign aid governance " here refers to the governance structure of development assistance (foreign aid) in the form of public
international funds flows, comprising the structure of decision-making by donors, the structure of decision-making by aid recipient
countries, and the modality of aid.
<Major Research Results>
Discussion Papers
 Is Foreign Aid a Vanguard of FDI? A Gravity-Equation Approach (Hidemi KIMURA and Yasuyuki TODO) (DP No.: 07-J-003/07-E-007)
Ⅲ- 1）Research on Changes in Multinational Corporations,
Trade Structures, and Market Institutions
International Workshop（Mar 16-17, 2007）
"Empirical Studies of Trade, FDI and Firms in East Asia"
10
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Introduction of Research Projects
III-3) Legal Approach to Regional Economic Integration
Project Leader: Tsuyoshi KAWASE, FF
<Overview>
Amid the burgeoning of regional economic integration (FTAs, EPAs, customs unions) since the second half of the 1990s, there are some
aspects that require scrutiny. This phenomenon has been arousing intense interest in many fields of the social sciences, but generally
the analysis of its legal aspects has lagged behind. Similarly to the WTO, regional economic integration is conducted with large amounts
of legal documentation, and this constitutes a trade "agreement" pursuant to GATT Article 24. Accordingly, legal analysis must be a
core policy tool with regard to the design of the systems and to their operation after they have come into being. On this basis, in our
research we make issue-specific comparative studies of the systems in the major cases of regional economic integration that have been
in force up till now, and elucidate the classification of the designs of legal systems in regional economic integration, and their special
characteristics. In this way we will show what options are possible for orderly integration from a legal perspective, and how these can
aid the effectiveness of economic integration.
<Major Research Results>
Discussion Papers

Treatment of Technical Standards in Regional Trade Agreements-Some Lessons for Mutual Recognition Arrangements (Yoshiko
NAIKI) (DP No.: 06-J-042)
Competition Policy and Law in Regional Economic Integration (Shingo SERYO) (DP No.: 06-J-052)

Disciplines on the Application of Antidumping Measures in Regional Economic Integration: A Quest of Prerequisites for Introducing
Disciplines through Horizontal Comparison (Fujio KAWASHIMA) (DP No.: 06-J-053)

Liberalization of Movement of Natural Persons in Regional Trade Agreements: A Convenient Framework of International Cooperation
for Managing Cross-Border Labor Mobility (Yoshizumi TOJO) (DP No.: 07-J-008)
III-4) The Resolution of Global Imbalances
Project Leader: Willem THORBECKE, SF
<Overview>
Our work this year involved seeking a deeper understanding of the characteristics of international production networks in Asia and of
the effects of exchange rate changes on processing trade. In the paper with Dr. Masaru YOSHITOMI we presented a detailed analysis
of Trade-FDI-Technology Linkages in East Asia. In the paper with Mizanur RAHMAN we investigated the effects of unilateral RMB
appreciations and joint appreciations among countries supplying intermediate inputs on China's processed exports. In both cases we
also tried to draw relevant policy conclusions from our results.
<Major Research Results>
Discussion Papers
How Would China's Exports be Affected by a Unilateral Appreciation of the RMB and a Joint Appreciation of Countries Supplying
Intermediate Imports? (Mizanur RAHMAN and Willem THORBECKE) (DP No.: 07-E-012)
III-5) Financial Cooperation in East Asia and the Optimal Currency Basket
Project Leader/Sub-Leader: Takatoshi ITO, FF/ Eiji OGAWA, FF
<Overview>
The U.S. current account deficit widened from 2004 through 2005, reaching as high as 7% of the GDP, while China's current account
surplus expanded, exceeding 5% of the GDP. If we combine China's figures with those of Japan, South Korea, and the ASEAN countries it
can be seen that East Asia is recording a very large trade surplus with the U.S. If the U.S. dollar were to fall during the course of resolving
this imbalance, in the absence of a cooperative relationship in the currency system in East Asia a number of countries could have an
excessive appreciation burden imposed upon them, or to avoid that would have to spend massively on market intervention. However, if
East Asian countries could cooperate to build a joint float mechanism (e.g. a common currency basket), then any shocks felt by East Asia
in the course of resolving global imbalances could be mitigated. This research considers a common currency basket to be a desirable
long-term option, and our objective is to conduct research linked directly with policy, studying the management of monetary and
exchange-rate policies up to the transition to a basket, and seeking the desirable configuration of a basket system.
<Major Research Results>
Discussion Papers
Analysis of China's Exchange Rate Reform (Takatoshi ITO) (DP No.: 06-J-028)
Exchange Rate Changes and Inflation in Post-Crisis Asian Economies: VAR Analysis of the Exchange Rate Pass-Through (Takatoshi ITO

and Kiyotaka SATO) (DP No.: 06-E-018)
The Chinese Yuan after the Chinese Exchange Rate System Reform (Eiji OGAWA and Michiru SAKANE) (DP No.: 06-E-019)
On Determinants of the Yen Weight in the Implicit Basket System in East Asia (Takatoshi ITO and Keisuke ORII) (DP No.: 06-E-020)
Chinese Exchange Rate Regimes and the Optimal Basket Weights for the Rest of East Asia (Etsuro SHIOJI) (DP No.: 06-E-024)
Adopting a Common Currency Basket Arrangement into the 'ASEAN Plus Three' (Eiji OGAWA and Kentaro KAWASAKI) (DP No.:

06-E-028)
Progress toward a Common Currency Basket System in East Asia (Eiji OGAWA and Junko SHIMIZU) (DP No.: 07-E-002)

International Workshop
"Regional Monetary Coordination and Regional Monetary Unit" (Dec 23, 2006)
RIETI-TIER Workshop
"Strengthening Asian Economic and Financial Integrations" (Dec 8, 2006)
11
Introduction of Research Projects
III-6) FTA Study
Project Leader: Shujiro URATA, FF
<Overview>
Free trade agreements (FTAs) have assumed a dominant status within the global trading system, and the number of them involving
East Asia and Japan is increasing. Given this situation, our research examines major FTAs worldwide and in East Asia including Japan,
evaluating the content of the FTAs and analyzing their impact. The results of these analyses will provide valuable information for
constructing desirable FTAs. The results of the analyses and evaluations will identify the aspects of the FTAs to be improved. In addition,
the impact analysis will provide valuable information for the formulation of FTA strategies.
<Major Research Results>
Discussion Papers
An Analysis of the Potential Economic Effects of Bilateral, Regional, and Multilateral Free Trade (Kozo KIYOTA) (DP No.: 06-E-027)
Services in Free Trade Agreements (Ryo OCHIAI, Philippa DEE, and Christopher FINDLAY) (DP No.: 07-E-015)
Market Access in FTAs: Assessment Based on Rules of Origin and Agricultural Trade Liberalization (Inkyo CHEONG and Jungran CHO) (DP

No.: 07-E-016)
An Analysis of the Restrictions on Foreign Direct Investment in Free Trade Agreements (Shujiro URATA and John SASUYA) (DP No.:

07-E-018)
International Workshop
"FTA Study Project" (Nov 10, 2006)
RIETI Policy Symposium
"Assessing Quality and Impacts of Major Free Trade Agreements" (Mar 22-23, 2007)
III-7) The Rise of China and the Transformation of the East Asian Regional Order
Project Leader: Takashi SHIRAISHI, FF
<Overview>
The emergence of China as an economic powerhouse has been transforming the regional order in East Asia, particularly in the areas of
economy, politics, and security. The project will address the question of how to manage these transformations. Project members will
examine Japan's and other countries' engagement with China from the so-called "realist" (which emphasizes balance of power politics)
and "liberal" (which emphasizes economic interdependence and institution-building) perspectives. The project will underline the
importance of balancing and regional cooperation for managing the regional transformations.
III-8) The Desirable Form of Legal Protection for Overseas Investments
Project Leader/Sub-Leader: Akira KOTERA, FF/ Kayo MATSUMOTO, F
<Overview>
Foreign investments are exposed to considerable risk, depending on factors such as the conditions in the recipient countries. Among
these risks, those (political and social risks) that may cause business failure as a direct result of acts by the recipient country need
to be addressed through a public framework, and in recent years investment agreements have been attracting attention as such
frameworks. Of particular note is that the procedure for resolving disputes between investors and states (investment agreements
arbitration) provided in investment agreements functions as real investor protection. In our research we will analyze the legal principles
of arbitration awards and will study desirable forms of legal protection for overseas investment. The analysis of legal principles will
have considerable implications for the drafting of the investment-related provisions in future investment agreements or economic
partnership agreements that Japan concludes in the future. At the same time, it will serve as a reference for company management
when choosing investment targets or investment methods. In addition, this will influence the design of investment insurance schemes
offering similar functions.
<Major Research Results>
Discussion PapersDiscussion Papers
Transparency and International Investment Treaties-Definition and Responses (Akira KOTERA) (DP No.: 06-J-026)
Possibility of Inefficient Breaches under WTO Dispute Settlement Procedures: Analysis from the Viewpoint of Law and Economics

(Takashi SHIMIZU) (DP No.: 07-J-001)
On the Comparison of Safeguard Mechanisms of Free Trade Agreements (Akira KOTERA and Tomofumi KITAMURA) (DP No.: 07-E-017)
12
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Introduction of Research Projects
III-9) The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws
Project Leader: Naoto JINJI, FF
<Overview>
With the progress of globalization, issues such as trade and the environment, and food, agriculture and the WTO have become major
points of contention. We take a comprehensive and interdisciplinary approach to these issues from the standpoint of both economics
and jurisprudence. In particular, our research project focuses primarily on (1) the effects of environmental policies in an open economy,
(2) sustainable forest management policies, including illegal deforestation issues and related countermeasures, (3) the impact of trade
liberalization on the environmental, and (4) legal analysis of consistency between multilateral environmental agreements (MEAs) and
the GATT/WTO. Both theoretical and empirical studies are conducted, and case-study and historical research are also incorporated.
<Major Research Results>
Discussion Papers
Illegal Extractions of Renewable Resources and International Trade with Costly Enforcement of Property Rights (Naoto JINJI) (DP No.:
07-E-011)
III-10) Empirical Analysis of Change in the Comparative Advantage Structure in Trade in East Asia
under the Modularization of Product Architecture
Project Leader: Satoshi KUWAHARA, SF
<Overview>
The phenomenon in which previously individual production processes are split up and dispersed geographically through the progress
of modularization is, if seen from the supply side, the consequence of dealing with differences in inputs of factors of production or
differences in production technologies in each process. In the East Asian region at present, industrial clusters have highly fragmented
production processes, straddle national borders, and are spread among dispersed locations, resulting in considerable change in
the structure of comparative advantage. Premised on this, our research will use relevant data to study the impact the progress of
modularization is having on the trade structure of the East Asian region.
<Major Research Results>
Discussion Papers
Empirical Analysis of the Trading Structure Changes in East Asia under the Modularization of Product Architecture (Satoshi
KUWAHARA) (DP No.: 06-J-050)
III-11) Study on International Strategies for Improving Productivity in the Context of Economic Globalization
Project Leader: Shigeaki SHIRAISHI, SF
<Overview>
Amid the advance of economic globalization, Japan and other industrialized countries are facing the issue of how to enhance
productivity. With the intention of making effective policy proposals concerning this issue, by understanding and identifying companies'
international business activities in the form of the cyclical model "resource and risk as a companies' strategic base," and "redefinition
and relocation as companies' strategic actions," (the "2R-2R" model, which cyclically amalgamates positioning theory and resource base
theory relating to corporate strategy), we will extract the real facts and issues of economic globalization at the micro level, namely the
company level. At the same time, from the perspective of enhancing productivity in the context of globalization, we will also study the
relationship between the government (policies) and companies (business activities). This study will be conducted as a joint project with
the Organisation for Economic Co-operation and Development (OECD).
Other research results in Domain III
Discussion Papers
Changing Roles of Economic Technocrats in the "Small Country" Malaysia (Takashi TORII)(DP No.: 06-J-031)
Ⅲ- 5）Financial Cooperation in East Asia and
the Optimal Currency Basket
RIETI-TIER Workshop
（Dec 8, 2006）
"Strengthening Asian Economic and Financial
Integrations"
Ⅲ- 6）FTA Study
RIETI Policy Symposium（Mar 22-23, 2007）
"Assessing Quality and Impacts of Major Free
Trade Agreements"
13
Ⅳ
Policy Research Domain
Compilation of the History of Japan's Trade and Industry Policy
Primarily of the 1980s and 1990s
Knowledge of the history of trade and industry policy provides the foundation for formulating
future economic and industrial policy. RIETI is undertaking comprehensive, systematic research
to compile Japan's history of trade and industry policy, seeking cooperation from external experts
including economists and historians.
Introduction of Research Projects
Compilation of the History of Japan's Trade and Industry Policy Primarily of the 1980s and 1990s
Project Leader: Konosuke ODAKA, Editer in Chief, HJTIP
<Overview>
In 1984, the Ministry of International Trade and Industry (the former METI) began compiling a history of trade and industry policy
spanning the period from the end of World War II through the second oil shock. By 1994, the work had culminated in the publication
of a 17-volume history. More than 20 years have elapsed since the period covered in the previous work and calls have grown for an
analytical review and evaluation of more recently implemented trade and industry policy. This new research project will compile the
history of trade and industry policy in the late 20th century, with a particular focus on the period from 1980 to 2000, incorporating not
only objective facts but also such areas as analytical and evaluative observations concerning the policy-making and implementation
processes, effects on industrial and economic conditions that necessitated the formulation of certain policy, realization of intended
policy goals, and industrial and economic conditions following policy implementation.
This history of trade and industry policy will consist of 12 volumes. Volume 1 will present a general overview with chapters dedicated to
specific time periods, while the remaining 11 volumes (arranged similarly to the ministry's organizational structure) will provide detailed
accounts of different policy fields with chapters organized by policy theme. The compilation is slated for completion by March 2011.
<Project Leadership and Staff>
The project will be carried out under the leadership of the Committee on the History of Japan's Trade and Industry Policy (HJTIP
Committee) set up within RIETI.
HJTIP Committee Organization
Chairman: Editor in Chief
Committee Members: Deputy Chief Editors; Coordinating Lead Authors; Representative from METI
List of HJTIP Committee Members
Editor in Chief
Konosuke ODAKA (Professor Emeritus, Hitotsubashi Univ./Professor Emeritus, Hosei Univ.)
Deputy Chief Editors
Haruhito TAKEDA (Professor, Graduate School of Economics, Univ. of Tokyo)
Tetsuo NAKATA (Professor, Graduate School of Business, Doshisha Univ.)
Shigeru MATSUSHIMA (Professor, Graduate School of Business Administration, Hosei Univ.)
Coordinating Lead Authors (one designated for each volume)
Vol. 1
General Overview
Konosuke ODAKA (Professor Emeritus, Hitotsubashi Univ./Professor Emeritus, Hosei Univ.)
Vol. 2
Trade Policy
Takeshi ABE (Professor, Graduate School of Economics, Osaka Univ.)
Vol. 3
Industrial Policy
Tetsuji OKAZAKI (Professor, Graduate School of Economics, Univ. of Tokyo)
Vol. 4
Distribution Policy/Consumer Administration
Takemasa ISHIHARA (Professor, School of Business Administration, Kwansei Gakuin Univ.)
Vol. 5
Environment, Location, and Safety Policy
Haruhito TAKEDA (Professor, Graduate School of Economics, Univ. of Tokyo)
Vol. 6
Basic Industries
Shiro YAMAZAKI (Professor, Faculty of Urban Liberal Arts, Tokyo Metropolitan Univ.)
Vol. 7
Machinery and Information Industries
Shin HASEGAWA (Professor, School of Business, Aoyama Gakuin Univ.)
Vol. 8
Consumer Goods Industries
Shigeru MATSUSHIMA (Professor, Graduate School of Business Administration, Hosei Univ.)
Vo. 9
Industrial Science and Technology Policy
Minoru SAWAI (Professor, Graduate School of Economics, Osaka Univ.)
Vol. 10 Natural Resources and Energy Policy
Takeo KIKKAWA (Professor, Graduate School of Commerce and Management, Hitotsubashi Univ.)
Vol. 11 Intellectual Property Policy
Nobuhiro NAKAYAMA (Professor, Graduate School for Law and Politics, Univ. of Tokyo)
Vol. 12 Small- and Medium-sized Enterprise Policy
Tetsuo NAKATA (Professor, Graduate School of Business, Doshisha Univ.)
<Major Activities in Fiscal 2006>
Preparatory meetings for the compilation of the history of Japan's trade and industry policy (prior to the establishment of the HJTIP
Committee) and meetings of the HJTIP Committee.
* Manifesto (overall outline) drawn up by Editor in Chief.
* Formulation of basic guidelines for the compilation of the history of Japan's trade and industry policy.
* Decision on the organization of volumes and selection of coordinating lead authors and co-authors.
Opinion exchange with those who were engaged in the planning and implementation of trade and industrial policy in the past.
A
Adjacent Basic Research Area
14
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Institutions Related to Financial and Labor Markets, and New Corporate
Law and Governance
RIETI will research the development of new economic institutions which allow for both risktaking and stable growth.
Introduction of Research Projects
A-1) Study Group on Changes in Financial and Industrial Structures
Project Leader/Sub-Leader: Tsutomu WATANABE, FF/ Iichiro UESUGI, CF
<Overview>
While the Japanese economy has been emerging from a long period of economic stagnation and entering a phase of steady economic
recovery, there has been considerable change in (1) funds procurement by firms, (2) networks between firms (interfirm relationships
based on commercial and capital transactions), and (3) relationships between companies and financial institutions relating to financial
and capital transactions. This study group will empirically elucidate this transformation by using micro-level data on large corporations,
SMEs, and financial institutions, and also data on the transactional relationships between firms themselves and those between firms and
financial institutions.
A-2) Empirical Analysis of Japan's Labor Market
Project Leader: Daiji KAWAGUCHI, FF
<Overview>
While the Japanese economy has shown signs of recovery, labor market indicators have improved little: the average wage has not
increased and the size of non-regular employment has significantly increased. Under this rather stagnated labor market environment,
the issue of the wage gap has attracted public and academic interest, but little progress has been made in gaining an overall picture of
the wage gap with the use of large-scale government statistics; consequently, very little is known about matters such as the causes of
wage differentials between regular and non-regular workers, and how the workers' wage mobility has changed over time. Our research
aims to fill the gap between social interests and rigorous empirical analysis by using microdata from large-scale government statistics.
The final goal is to derive labor market policy suggestions based on rigorous empirical analysis.
<Major Research Results>
Discussion Papers
"Male-Female Wage and Productivity Differentials: A Structural Approach Using Japanese Firm-Level Panel Data" (Hirokatsu ASANO
and Daiji KAWAGUCHI) (DP No.:07-E-020）
A-3) Economic Analysis of Organizations and Institutions: The Design of Organizations and
Institutions to Enhance Corporate Performance and Growth
Project Leader: Kotaro TSURU, SF
<Overview>
Amid the global boom in corporate mergers, acquisitions, and consolidation since the 1990s, the number of such cases in Japan has
been increasing rapidly since the latter half of the 1990s. In order to understand these developments, it is essential to investigate fully (1)
the motivations and intentions, and (2) whether the initially expected effects have occurred, and company performance has improved
since reorganization. First, we will build a comprehensive M&A database that integrates microdata from basic studies of company
activity with M&A information, and then conduct quantitative analyses in order to verify the above, while examining characteristics by
industry and type. Also, as part of the creation of new research fields, we will establish a study group on the reform of the labor market
system, for which the task will be to conduct interdisciplinary analyses, from both a theoretical and an empirical perspective, of ways in
which to implement labor market reform in the future.
<Major Research Results>
Discussion Papers
Consolidation of Cooperative Banks (Shinkin) in Japan: Motives and Consequences (Kaoru HOSONO, Koji SAKAI and Kotaro TSURU) (DP

No.:06-E-034）
A-4) Research into Measures to Provide Efficient Public Services by Means of Government and
Private-sector Collaboration, Premised on Small Government
Project Leader/Sub-Leader: Naoto YAMAUCHI, FF/ Hiromichi MORIYAMA, CF
<Overview>
Given the advent of an aging society with a declining population, plus major structural changes in the form of globalization and the
intensification of international competition, in order to maintain economic vitality and to keep the size of the public sector within a
scope that is sustainable it is essential to implement reform toward establishing "small government." Our research activities will include
the categorization of the forms of public-private partnership (PPP) such as private finance initiative (PFI), the designated administrator
system, and market testing; the conduct of quantitative verification of the effects of reductions in fiscal expenditure; and the conduct of
analyses of introduction incentives, including by means of surveys of local government bodies and non-profit organizations (NPOs). In
this way we will put forward suggestions on how to shape policies for achieving efficient public services in Japan through PPP.
15
Introduction of Research Projects
A-5) Theoretical and Experimental Research into Communication, Coordination, and Collaboration Mechanisms
Project Leader: Hirokazu TAKIZAWA, F
<Overview>
In today's state-of-art, science-based industries, of which the semiconductor industry is a leading example, complex cooperative
relationships at the research and development (R&D) stage have been observed between companies that compete in their product
markets, owing to factors such as increases in the size of necessary investment and the enlargement of the scope, growing complexity,
and acceleration of R&D. Of particular note is that there has been growing interest in collaboration mechanisms that have until now
been treated as black boxes in conventional economic theory, the reason being that R&D processes have come to be conducted across
firm boundaries rather than kept within a single company, and there is increasing recognition of the necessity of understanding what
types of communication, coordination, and collaboration mechanism are effective as well as incentive-compatible. Our research aims to
address these issues from the viewpoints of the economics of information, game theory, and behavioral economics.
<Major Research Results>
Discussion Papers
 Information Sharing in Joint Research and Development (Hiroyuki CHUMA, Shuzo FUJIMURA, Toshiji KAWAGOE, Taisuke MATSUBAE,
Masahiro OKUNO-FUJIWARA, Hirokazu TAKIZAWA, Yasunori WATANABE and Izumi YOKOYAMA) (DP No.: 07-J-013/07-E-019)
A-6) The Frontier of Corporate Governance Analysis: Economic Analysis of M&A and Corporate Governance
Project Leader: Hideaki MIYAJIMA, FF
<Overview>
There has been considerable progress in recent years in the analysis of the governance structure of Japanese companies, but, to
date, aspects such as the discipline imposed by main banks, the role of the ownership structure, and reforms affecting directors have
progressed independently, and their mutual relationships have not been grasped fully. Furthermore, as a result of the gradual progress
of creative destruction (the reorganization of traditional companies and the increase in the number of newly listed companies) since
the second half of the 1990s, new corporate governance problems have been emerging at Japanese companies. Accordingly, our
research will address all important issues regarding corporate governance and more broadly with regard to corporate systems, both in
terms of their significance for policy and from an academic perspective, opening up a new frontier in corporate governance analysis.
Adding to the economic analysis of M&A that has been conducted since the previous fiscal year, specific issues we will research include
governance issues affecting emerging companies and listed subsidiaries, internal governance, business portfolios, a comprehensive
understanding of internal organizational structures, and clarification of the relationship between a competitive environment and
corporate governance. Also, in order to elucidate these points, we will attempt questionnaire-based analyses of the business portfolios
and organizational structures of first-section listed companies.
<Major Research Results>
Discussion Papers
Economic Analysis of M&As: Why has the Number of M&As Increased? (Yasuhiro ARIKAWA and Hideaki MIYAJIMA) (DP No.: 06-J-034)
Understanding the Rapid Increase of M&As: Historical Background and the Economic Role of M&As (Hideaki MIYAJIMA) (DP No.:
06-J-044)
A-7) Empirical and Internationally Comparative Institutional Analysis of the Forms of Administrative and Financial Systems
for Utilizing Infrastructure Assets to Invigorate Local Economies in an Era of Decentralization and International Competition:
A Study of the Administrative and Financial Systems and Governance Systems in Operation at Regional Airports
Project Leader: Nobuo AKAI, FF
<Overview>
To meet the increasing diversity of needs arising as society matures, it is necessary for local governments to take responsibility
for implementing reforms to create systems that will ensure efficient administrative and financial management. Until now, the
improvement of public infrastructure has been conducted by means of redistribution policies implemented by the central government
in the name of "well-balanced land development." It is important that regional economies that have been engaging primarily in
domestic interchange should in the future, in line with the trends toward globalization and free trade with other East Asian countries,
deepen international exchanges, for which a prerequisite is to make efficient use of public infrastructure and administrative assets. This
calls into question what form of administrative and financial systems will support efficient management and use under the auspices
of the local authorities. In addressing this, the most important components of the infrastructure assets are roads, ports, and airports.
However, in these business fields many policies are still concentrated on the central government; administrative and financial systems
sufficiently flexible to invigorate local economies under independent local government management do not yet appear to have been
developed. In our research we will focus in particular on the future form of governance of regional airports and national airports that
are operated under a national pool system through the Airport Improvement Special Account, studying it from various angles through
the analysis of the redistribution originating in the special account system, the problems that arise from airport development and
regulations under the central government, and the operating efficiency of regional airports and efforts by local government bodies
toward the future. We will also study, both theoretically and empirically, the desirable form of administrative and financial systems that
will operate local airports efficiently and invigorate their local economies.
A-8) Changes in the Socioeconomic Structure and Tax Reform
Project Leader/Sub-Leader: Yasushi IWAMOTO, FF/ Kyoji HASHIMOTO, FF
<Overview>
Japan is currently facing the problems of an aging society, globalization of the economy, the global environment, and inequality, and
it is exposed to change in its socioeconomic structure. Since a fundamental reform is also necessary in the tax system to address these
changes, this research focuses on the desirable tax system that will respond to the changes in the socioeconomic structure from a
medium to long-term perspective, incorporating recent developments of tax theory. For this purpose we will build a dynamic stochastic
general equilibrium model that makes possible the simulation of tax reform proposals in line with policy issues in Japan, and we will
analyze the effects of fundamental tax reform on economic activity and people's welfare, also discussing the direction of the reform.
16
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Introduction of Research Projects
A-9) Reform of Labor Market Institutions
Project Leader: Kotaro TSURU, SF
<Overview>
In order to study a new "form" for Japan's labor market institutions, and types of reform, we will organize a study group that will
conduct theoretical and empirical research from various perspectives such as law, economics, and management. While looking broadly
at labor market institutions as a whole, we will also look into the interrelationships of each constituent part, and in particular will make
suggestions regarding a comprehensive system of labor laws from a standpoint that transcends vertical segmentation and boundaries.
When conducting our analysis we will fully embrace international viewpoints and methods of analysis, including experiences from
Europe and elsewhere, and will attempt to elucidate the relationships between labor laws and institutions and the labor market and
employment systems, and in turn the relationship (including the issue of non-regular employment) with economic performance.
Other research results in Adjacent Basic Research Area A
Discussion Papers
Shareholder Sovereignty Versus Employee Sovereignty: A Dilemma as Seen in Listed Companies in Japan (Kazuhiro TANAKA) (DP No.:
06-J-035)
Bank's Exposure and Private Workout Negotiations between the Creditor Bank and the Debtor Company: An Empirical Study Using

Event Study Methodology (Fumio AKIYOSHI and Sumio HIROSE) (DP No.: 06-J-037)
Measurement of the Impact of Buyout Funds' Initiative in Corporate Reorganizations on the Recovery Rate of Reorganization Claims

(Hiroshi MARUYAMA) (DP No.: 06-J-039)
Relatively High Interest Rates for Okinawa Companies: A Quantitative Analysis by Means of a Nationwide Comparison (Yuichi ABIKO) (DP

No.: 06-J-041)
Relationships between Locally-Oriented Corporate Reconstruction Funds and Local Financial Institutions (Junsuke MATSUO) (DP

No.:06-J-045)
Development of a Multi-Region CGE Model that Incorporates Monopolistic Competition and other Factors (Masato HISATAKE and

Kiyoshi YAMASAKI) (DP No.: 06-J-046)
Innovation and Financing Structure (Noriyuki YANAGAWA) (DP No.: 07-J-004)

Risk Money and Corporate Growth: Roles of Financial Intermediation（Takao KOBAYASHI and Masato HISATAKE）
(DP No.: 07-J-005)

SME Financing and the Choice of Lending Technology
（Hirofumi UCHIDA, Gregory F. UDELL and Nobuyoshi YAMORI）
(DP No.:06-E-025)

Are Trade Creditors Relationship Lenders? (Hirofumi UCHIDA, Gregory F. UDELL and Wako WATANABE) (DP No.:06-E-026)

Bank Size and Lending Relationships in Japan (Hirofumi UCHIDA, Gregory F. UDELL and Wako WATANABE) (DP No.: 06-E-029)

Empirical Determinants of Bargaining Power (Hirofumi UCHIDA) (DP No.:06-E-030)

Loan Officers and Relationship Lending (Hirofumi UCHIDA, Gregory F. UDELL and Nobuyoshi YAMORI) (DP No.:06-E-031)

B
Adjacent Basic Research Area
Regulatory Reforms and Evaluation Frameworks for Deregulation
RIETI will research the remaining regulatory reforms to be tackled and develop microeconomic
models for objective assessment of government policies.
Introduction of Research Projects
B-1) Economic Analysis of Markets and Networks in Electricity Power Reform
Project Leader/Sub-Leader: Tatsuo HATTA, FF/ Makoto TANAKA, FF
<Overview>
In order to assist system reform in the electricity industry in Japan we will conduct more realistic research than ever into the issues of
performance evaluation and system design in regard to the electric power market and the electricity transmission network, primarily
from an economic perspective. Based on the results of project research conducted up to fiscal 2005, we have completed a number
of prototype models for conducting quantitative evaluation and analysis concerning the electric power market and the electricity
transmission network. In the project from fiscal 2006 onward we will further refine and develop these prototype models in line with the
realities of the situation. After that, we will assemble and arrange the actual transaction data from 2005 onwards, and carry out more
realistic quantitative evaluation and analysis for the purpose of assisting the continuous monitoring of the wholesale electric power
exchanges, and investigation of impacts of changes in the system. In addition, with regard to individual system design issues relating
to the market and the network, with a view to assisting ongoing system reform we will conduct applied research focusing on the
application of these to real situations.
<Major Research Results>
Discussion Papers
A Spatial Equilibrium Analysis of Transmission Charge Reform in Japan's Electric Power Industry (Shu-ichi AKIYAMA and Nobuhiro
HOSOE) (DP No.:06-E-022)
17
Introduction of Research Projects
B-2) Simulation Models for Policy Evaluation
Project Leader: Yoshitsugu KANEMOTO, FF
<Overview>
Applied general equilibrium models have been put into use for policy evaluation in fields such as energy policy, but owing to the large
scale of the models it has tended to be difficult to evaluate their reliability. In this research we aim to assess the benefits and costs of
each policy option, by using small-scale microeconomic models that are understandable, actionable, and facilitate the policy making
process. The primary targets of the policy simulation will be countermeasures for global warming and the Japanese-style liberalization
of the electric power market. With regard to the countermeasures for global warming we will analyze the effects of policies in specific
fields such as automobiles. As for the liberalization of the electric power market, we will analyze the characteristics of Japanese system
designs compared with those of other countries, and evaluate the various policy options.
<Major Research Results>
Discussion Papers
Quantitative Policy Evaluation of the Front Runner Method Household Appliance Efficiency Standards Regulations in Japan by Cost
Benefit Analysis (Kazunari KAINOU) (DP No.: 06-J-025)
Quantitative Policy Evaluation of the Front Runner Method Regulations for Fuel Consumption Standards for Passenger Cars in Japan

by Cost-Benefit Analysis (Kazunari KAINOU) (DP No. 07-J-006)
Other research results in Adjacent Basic Research Area B
Discussion Papers

Entry and Exit of Large-Scale Retail Stores and Revitalization of City Center Districts (Toshiyuki MATSUURA and Kazuyuki
MOTOHASHI)(DP No.: 06-J-051)

Effect of Social Capital on Raising Productivity of Urban Centers-Measurement that Takes the Benefits of Agglomeration into
Consideration (Tatsuo HATTA and Hidetada KATO) (DP No.:07-J-011）

New Evidences on What Job Creation and Job Destruction Represent (Carlos Henrique CORSEUIL and Hidehiko ICHIMURA)（DP No.:
06-E-023）
C
Adjacent Basic Research Area
Compilation of Micro Panel Data on Firm Activities, Trade, Energy, and
the Elderly; and Model Building and Operation
Microdata will be reinforced and improvements will be made on model operation in the fields of
trade, pensions, energy, and the environment. This will strengthen the necessary infrastructure for
RIETI's research.
Introduciton of Research Projects
C-1) Research into the Enhancement of Historical Energy Statistics
Project Leader: Kazunari KAINOU, F
<Overview>
Knowledge of the history of energy policies constitutes the base on which future energy policies should stand. However, the lack of
highly accurate energy statistics that enable chronological comparison has been hampering our research. We will conduct research into
the development of accurate historical energy statistics which consequently will serve as the basic materials for energy policy research.
Also, by applying these historical energy statistics, we will conduct research on the optimum modality of energy policies.
<Major Research Results>
Discussion Paper
Cost-Effect Analysis of the Japanese Steel Industry's Energy Conservation Measures (Kazunari KAINOU) (DP No.: 06-J-059)
C-2) Building of GCE Model for East Asia that Introduces Economies of Scale
Project Leader/Sub-Leader: Kanemi BAN, FF/ Masato HISATAKE, CF
<Overview>
Amid the rapid progression of economic globalization, geographical concentration of economic activity and agglomeration of industry
are accelerating. The remarkable development of the East Asian economies and the trends of economic integration are in particular
having major impacts on the Japanese economy. In this research, we will develop an applied general equilibrium model for East
Asia which will serve as a base for quantitative evaluation of the changes in the economic position of each nation including Japan,
in the course of economic integration. This model will focus on trends in industrial agglomerations that arise as a result of economic
integration and will explicitly incorporate economies of scale, also making imperfect competition a target of analysis. It will provide
a highly transparent framework that will promote consensus-building by clarifying how each country's political responses during
negotiation of economic integration could affect the economic structure of East Asia, and how that would change the welfare of each
country.
<Major Research Results>
Discussion Papers
Applied General Equilibrium Analysis of Trade Policy (Shiro TAKEDA) (DP No.:07-J-010)
International Workshop
"Building of GCE Model for East Asia that Introduces Economies of Scale" (Dec 15, 2006)
18
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Note: Discussion Papers listed below were published from April 2006 to March 2007.
Discussion Papers
Discussion Papers are research results formed in the shape of treatise which principally went through an internal review process. To stimulate
active debate, they are posted on our website
（http://www.rieti.go.jp/en/publications/act_dp.html）
. Discussion Papers including "J" in DP No.
are written in Japanese.
DP No.
Publication Title
Author(s)
Research Project No.
07-J-013 Mar-07
Information Sharing in Joint Research and Development
Hiroyuki CHUMA (RIETI/Hitotsubashi
Univ.)
Shuzo FUJIMURA (Tokyo Institute of
Technology)
Toshiji KAWAGOE (Future Univ. Hakodate)
Taisuke MATSUBAE (Waseda Univ.)
Masahiro OKUNO-FUJIWARA (RIETI/
Tokyo Univ.)
Hirokazu TAKIZAWA (RIETI)
Yasunori WATANABE (Tokyo Univ.)
Izumi YOKOYAMA (Hitotsubashi
Univ.)
07-J-012 Mar-07
Impact of Regional Factors on Births and Wives' Continuation in
Employment-Panel Survey of Consumers by the Institute for
Research on Household Economics
Yoshio HIGUCHI (RIETI/Keio Univ.)
Toshiyuki MATSUURA (RIETI)
Kazuma SATO (Keio Univ.)
07-J-011 Mar-07
Effect of Social Capital on Raising Productivity of Urban Centers
-Measurement that Takes the Benefits of Agglomeration into
Consideration
Tatsuo HATTA (RIETI/ICU)
Hidetada KATO (ICU)
07-J-010 Mar-07
Applied General Equilibrium Analysis of Trade Policy
Shiro TAKEDA (Kanto Gakuen Univ.)
07-J-009 Mar-07
Toshihiro KODAMA (Kyoto Univ.)
Product-Developing SMEs and State of Formation of an Industrial Takashi SAITO (Kyoto Univ.)
Shinya KAWAMOTO (Kyoto Univ.,
Cluster in the Keiji (Kyoto-Shiga) Area
formerly)
II-11
07-J-008 Mar-07
Liberalization of Movement of Natural Persons in Regional Trade
Agreements: A Convenient Framework of International Coopera- Yoshizumi TOJO (Rikkyo Univ.)
tion for Managing Cross-Border Labor Mobility
III-3
07-J-007 Mar-07
Empirical Analysis of Fertility Rates-Focus on its Relationship with
Akihito TODA (Keio Univ.)
the State of Economic Activity and Family Policy
I-4
07-J-006 Mar-07
Quantitative Policy Evaluation of the Front Runner Method
Regulations for Fuel Consumption Standards for Passenger Cars
in Japan by Cost-Benefit Analysis
Kazunari KAINO (RIETI)
B-2
07-J-005 Mar-07
Risk Money and Corporate Growth: Roles of Financial
Intermediation
Takao KOBAYASHI (RIETI/Tokyo Univ.)
Masato HISATAKE (RIETI)
A-Others
07-J-004 Mar-07
Innovation and Financing Structure
Noriyuki YANAGAWA (RIETI/Tokyo
Univ.)
A-Others
07-J-003 Mar-07
Is Foreign Aid a Vanguard of FDI? A Gravity-Equation Approach
Hidemi KIMURA (RIETI)
Yasuyuki TODO (Aoyama Gakuin
Univ.)
III-2
07-J-002 Mar-07
Importance of Regional Innovation Systems
Schumpeter TAMADA (RIETI/Kwansei
Gakuin Univ.)
II-5
07-J-001 Jan-07
Possibility of Inefficient Breaches under WTO Dispute Settlement
Takeshi SHIMIZU (Tokyo Univ.)
Procedures: Analysis from the Viewpoint of Law and Economics
06-J-061 Dec-06
Innovation and East Asian and Global Management of Start-ups
and SMEs
Susumu SANBONMATSU (RIETI/Organization for Small & Medium
Enterprises and Regional Innovation,
JAPAN)
A-5
I-4
B-Others
C-2
III-8
II-3
19
06-J-060 Dec-06
Developments in and an Evaluation of Intellectual Property Rights
in Japan (Evaluation of the pro-patent trend since the latter part Yutaka KIYOKAWA (RIETI)
of the 1990s, in particular the patent system)
II-10
06-J-059 Dec-06
Cost-Effect Analysis of the Japanese Steel Industry's Energy
Conservation Measures
C-1
06-J-058 Dec-06
Toshiaki TACHIBANAKI (RIETI/Kyoto
Univ.)
Opinion Survey and Econometric Analysis of the Benefit of Public Akira OKAMOTO (Okayama Univ.)
Masumi KAWADE (Niigata Univ.)
Spending and the National Burden
Toshiya HATANO (Meiji Univ.)
Naomi MIYAZATO (Nihon Univ.)
Kazunari KAINOU (RIETI)
I-Others
06-J-057 Dec-06
The Optimal Funding Method for the Social Security System
Toshiaki TACHIBANAKI (Kyoto Univ.)
Akira OKAMOTO (Okayama Univ.)
Masumi KAWADE (Niigata Univ.)
Toshiya HATANO (Meiji Univ.)
Naomi MIYAZATO (Nihon Univ.)
Toshihiko SHIMA (Tokyo Univ.)
Akifumi ISHIHARA (London School of
Economics)
06-J-056 Dec-06
Aging Japan and the National Burden Rate
Akira OKAMOTO (Okayama Univ.)
I-Others
06-J-055 Oct-06
Regional Knowledge Networks of Corporations, Universities and
Public Institutions
Ichiro SAKATA (RIETI)
Yuya KAJIKAWA (Tokyo Univ.)
Yoshiyuki TAKEDA (Tokyo Univ.)
Naoki SHIBATA (Tokyo Univ.)
Masahiro HASHIMOTO (New Energy
and Industrial Technology Development Organization)
Katsumori MATSUSHIMA (Tokyo
Univ.)
II-Others
06-J-054 Sep-06
Marital Satisfaction and Work-Life Balance: A Viewpoint Indispensable to Mitigating Fertility Decline
Kazuo YAMAGUCHI (RIETI/Chicago
Univ.)
I-Others
06-J-053 Aug-06
Disciplines on the Application of Antidumping Measures in Regional Economic Integration: A Quest of Prerequisites for Introducing Disciplines through Horizontal Comparison
Fujio KAWASHIMA (Nagoya Univ.)
III-3
06-J-052 Aug-06
Competition Policy and Law in Regional Economic Integration
Shingo SERYO (Doshisha Univ.)
III-3
06-J-051 Jul-06
Entry and Exit of Large-Scale Retail Stores and Revitalization of
City Center Districts
Toshiyuki MATSUURA (RIETI)
Kazuyuki MOTOHASHI (RIETI/Tokyo
Univ.)
06-J-050 Jul-06
Empirical Analysis of the Trading Structure Changes in East Asia
under the Modularization of Product Architecture
Satoshi KUWAHARA (RIETI)
06-J-049 Jun-06
The Impact of Regional Factors on the Business Startup Ratio in
the Japanese Manufacturing Sector: A Comparative Analysis of
High-Tech and Low-Tech Industries
Hiroyuki OKAMURO (Hitotsubashi
Univ.)
06-J-048 Jun-06
The Quantitative Assessment of Organization Capital
Tsutomu MIYAGAWA (RIETI/Gakushuin Univ.)
Young Gak KIM (Hitotsubashi Univ.)
06-J-047 Jun-06
Start-up Financing and Human Capital of Entrepreneurs
Yuji HONJO (Chuo Univ.)
II-Others
06-J-046 Jun-06
Development of a Multi-Region CGE Model that Incorporates
Monopolistic Competition and other Factors
Masato HISATAKE (RIETI)
Kiyoshi YAMASAKI (Value Management Institute, Inc.)
A-Others
06-J-045 Jun-06
Relationships Between Locally-Oriented Corporate Reconstruction
Junsuke MATSUO (St. Andrew's Univ.)
Funds and Local Financial Institutions
I-Others
B-Others
III-10
II-Others
II-2
A-Others
20
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　06-J-044 Jun-06
Understanding the Rapid Increase of M&As: Historical Background Hideaki MIYAJIMA (RIETI/Waseda
Univ.)
and the Economic Role of M&As
A-6
06-J-043 May-06
Exploring Factors Behind the Weakening Competitiveness of
Japan's Semiconductor Production System: From the Viewpoint
of Meta-Level Integration Capability
II-8
06-J-042 May-06
Treatment of Technical Standards in Regional Trade Agreements
Yoshiko NAIKI (Osaka Univ.)
-Some Lessons for Mutual Recognition Arrangements
06-J-041 Sep-06
Relatively High Interest Rates for Okinawa Companies:
A Quantitative Analysis by Means of a Nationwide Comparison
Yuichi ABIKO (Kinki Univ.)
A-Others
06-J-040 May-06
Integrating Modular Products beyond Industrial Boundary
-Analysis of the Integration Process of a PC System
and NC System
Tomoatsu SHIBATA (Kagawa Univ.)
Fumio KODAMA (RIETI/Tokyo Univ./
Shibaura Institute of Technology)
II-Others
06-J-039 Apr-06
Measurement of the Impact of Buyout Funds' Initiative in
Corporate Reorganizations on the Recovery Rate of
Reorganization Claims
Hiroshi MARUYAMA (Yokohama City
Univ.)
A-Others
06-J-038 Apr-06
Increasing Complexity of Artifacts and the Role of Product
Architecture
Masahiro OKUNO-FUJIWARA (RIETI/
Tokyo Univ.)
Hirokazu TAKIZAWA (RIETI)
Yasunori WATANABE (Tokyo Univ.)
II-7
06-J-037 Apr-06
Bank's Exposure and Private Workout Negotiations between the
Creditor Bank and the Debtor Company: An Empirical Study
Using Event Study Methodology
Fumio AKIYOSHI (Tokyo Univ.)
Sumio HIROSE (Shinshu Univ.)
A-Others
06-J-036 Apr-06
Impact of Family Care Needs on Elderly Workers' Decisions on
Retirement
Yoshio HIGUCHI (RIETI/Keio Univ.)
Masako KUROSAWA (RIETI/GRIPS)
Tadashi SAKAI (National Institute
of Population and Social Security
Research)
Kazuma SATO (Keio Univ.)
Emiko TAKEISHI (NLI Research Institute)
I-Others
06-J-035 Apr-06
Shareholder Sovereignty Versus Employee Sovereignty:
A Dilemma as Seen in Listed Companies in Japan
Kazuhiro TANAKA (RIETI/Hitotsubashi
Univ.)
A-Others
06-J-034 Apr-06
Economic Analysis of M&As: Why Has the Number of M&As
Increased?
Yasuhiro ARIKAWA (RIETI/Waseda
Univ.)
Hideaki MIYAJIMA (RIETI/Waseda
Univ.)
A-6
06-J-033 Apr-06
Analysis of the Impact of Pension System Reforms on the Labor
Supply Behavior of Elderly Males
Yoshio HIGUCHI (RIETI/Keio Univ.)
Masako KUROSAWA (RIETI/GRIPS)
Kayoko ISHII (Keio Univ.)
Toshiyuki MATSUURA (RIETI)
I-Others
06-J-032 Apr-06
Simulation Analysis of Debt Management Policies to Ensure the
Sustainability of Japan's Public Debt
Takero DOI (RIETI/Keio Univ.)
I-Others
06-J-031 Apr-06
Changing Roles of Economic Technocrats in the "Small Country"
Malaysia
Takashi TORII (RIETI/Meiji Univ.)
III-Others
06-J-030 Apr-06
Issues for Japanese Firms from Metanational Management
Perspective
Kazuhiro ASAKAWA (RIETI/Keio Univ.)
II-3
06-J-029 Apr-06
Roles of Regimes under the Gold Standard and Impact on Prices
Shumpei TAKEMORI (RIETI/Keio Univ.)
Liudmila SAVCHENKO (Keio Univ.)
I-Others
06-J-028 Apr-06
Analysis of China's Exchange Rate Reform
Takatoshi ITO (RIETI/Tokyo Univ.)
III-5
06-J-027 Apr-06
Productivity and Financing of Startups
Tsutomu MIYAGAWA (RIETI/Gakushuin Univ.)
Atsushi KAWAKAMI (Gakushuin Univ.)
II-2
06-J-026 Apr-06
Transparency and International Investment Treaties
-Definition and Responses
Akira KOTERA (RIETI/Tokyo Univ.)
III-8
Hiroyuki CHUMA (RIETI/Hitotsubashi
Univ. Institute of Innovation Research)
III-3
21
06-J-025 Apr-06
Quantitative Policy Evaluation of the Front Runner Method
Household Appliance Efficiency Standards Regulations in Japan
by Cost-Benefit Analysis
Kazunari KAINOU (RIETI)
B-2
07-E-020 Mar-07
Male-Female Wage and Productivity Differentials: A Structural
Approach Using Japanese Firm-level Panel Data
Hirokatsu ASANO (Asia Univ.)
Daiji KAWAGUCHI (RIETI/Hitotsubashi
Univ.)
A-2
07-E-019 Mar-07
Information Sharing in Joint Research and Development
Hiroyuki CHUMA (RIETI/Hitotsubashi
Univ.)
Shuzo FUJIMURA (Tokyo Institute of
Technology)
Toshiji KAWAGOE (Future Univ. Hakodate)
Taisuke MATSUBAE (Waseda Univ.)
Masahiro OKUNO-FUJIWARA (RIETI/
Tokyo Univ.)
Hirokazu TAKIZAWA (RIETI)
Yasunori WATANABE (Tokyo Univ.)
Izumi YOKOYAMA (Hitotsubashi
Univ.)
A-5
07-E-018 Mar-07
An Analysis of the Restrictions on Foreign Direct Investment in
Free Trade Agreements
Shujiro URATA (RIETI/Waseda Univ.)
John SASUYA (Waseda Univ.)
III-6
07-E-017 Mar-07
On the Comparison of Safeguard Mechanisms of Free Trade
Agreements
Akira KOTERA (RIETI/Tokyo Univ.)
Tomofumi KITAMURA (Tokyo Univ.)
III-8
07-E-016 Mar-07
Market Access in FTAs: Assessment Based on Rules of Origin and
Agricultural Trade Liberalization
Inkyo CHEONG (Inha Univ.)
Jungran CHO (Inha Univ.)
III-6
07-E-015 Mar-07
Services in Free Trade Agreements
Ryo OCHIAI (The Australian National
Univ.)
Philippa DEE (The Australian National
Univ.)
Christopher FINDLAY (The Univ. of
Adelaide)
III-6
07-E-014 Mar-07
Bank Distress and Productivity of Borrowing Firms: Evidence from Fumio AKIYOSHI (Tokyo Univ.)
Keiichiro KOBAYASHI (RIETI)
Japan (Preliminary and Incomplete)
07-E-013 Mar-07
Collateral Constraint and News-Driven Cycles (Preliminary and
Incomplete)
07-E-012 Mar-07
How Would China's Exports be Affected by a Unilateral AppreciaMizanur RAHMAN (RIETI/GRIPS)
tion of the RMB and a Joint Appreciation of Countries Supplying
Willem THORBECKE (RIETI)
Intermediate Imports?
III-4
07-E-011 Mar-07
Illegal Extractions of Renewable Resources and International
Trade with Costly Enforcement of Property Rights
III-9
07-E-010 Mar-07
Satoshi SHIMIZUTANI (RIETI/HitotsubWhat Determines Overseas R&D Activities? The Case of Japanese ashi Univ.)
Yasuyuki TODO (Aoyama Gakuin
Multinational Firms
Univ.)
07-E-009 Mar-07
Information Technology and Economic Growth: Comparison
between Japan and Korea
Takahito KANAMORI (Tokyo Univ.)
Kazuyuki MOTOHASHI (RIETI/Tokyo
Univ.)
I-3
07-E-008 Mar-07
Overseas R&D Activities and Home Productivity Growth:
Evidence from Japanese Firm-Level Data
Yasuyuki TODO (Aoyama Gakuin
Univ.)
Satoshi SHIMIZUTANI (RIETI/Hitotsubashi Univ.)
II-2
07-E-007 Mar-07
Is Foreign Aid a Vanguard of FDI? A Gravity-Equation Approach
Hidemi KIMURA (RIETI)
Yasuyuki TODO (Aoyama Gakuin
Univ.)
III-2
Keiichiro KOBAYASHI (RIETI)
Tomoyuki NAKAJIMA (Kyoto Univ.)
Masaru INABA (Tokyo Univ.)
Naoto JINJI (RIETI/Okayama Univ.)
I-2
I-2
II-2
22
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　07-E-006 Mar-07
Alexander HIJZEN (Univ. of Nottingham)
The Effects of Multinational Production on Domestic Performance:
Tomohiko INUI (Nihon Univ.)
Evidence from Japanese Firms
Yasuyuki TODO (Aoyama Gakuin
Univ.)
II-2
07-E-005 Mar-07
Does Off shoring Pay? Firm-Level Evidence from Japan
Alexander HIJZEN (Univ. of Nottingham)
Tomohiko INUI (Nihon Univ.)
Yasuyuki TODO (Aoyama Gakuin
Univ.)
II-2
07-E-004 Feb-07
Factors Determining the Mode of Overseas R&D by Multinationals: Empirical Evidence
Banri ITO (Keio Univ.)
Ryuhei WAKASUGI (RIETI/Keio Univ.)
III-1
07-E-003 Jan-07
Kyoji FUKAO (RIETI/Hitotsubashi
Univ.)
Sumio HAMAGATA (Hitotsubashi
Univ.)
Tomohiko INUI (Nihon Univ.)
Estimation Procedures and TFP Analysis of the JIP Database 2006 Keiko ITO (Senshu Univ.)
Hyeog Ug KWON (Nihon Univ.)
Provisional Version
Tatsuji MAKINO (Hitotsubashi Univ.)
Tsutomu MIYAGAWA (RIETI/Gakushuin Univ.)
Yasuo NAKANISHI (Senshu Univ.)
Joji TOKUI (Shinshu Univ.)
II-2
07-E-002 Jan-07
Progress toward a Common Currency Basket System in East Asia
Eiji OGAWA (RIETI/Hitotsubashi Univ.)
Junko SHIMIZU (Meikai Univ.)
III-5
07-E-001 Jan-07
Determinants of the Profitability of Japanese Manufacturing
Affiliates in China and Other Regions: Does Localization of
Procurement, Sales, and Management Matter?
Keiko ITO (Senshu Univ.)
Kyoji FUKAO (RIETI/Hitotsubashi
Univ.)
II-2
06-E-036 Dec-06
An Optimal Rate of the National Burden in an Aging Japan
Akira OKAMOTO (Okayama Univ.)
06-E-035 Sep-06
Analysis of the Survey Response Behavior: An Experience from
a Pilot Survey of the Health and Living Status of the 50s and
beyond in Japan
Hidehiko ICHIMURA (RIETI/Tokyo
Univ.)
Daiji KAWAGUCHI (Hitotsubashi Univ.)
Satoshi SHIMIZUTANI (RIETI/Hitotsubashi Univ.)
I-5
06-E-034 Aug-06
Consolidation of Cooperative Banks (Shinkin) in Japan: Motives
and Consequences
Kaoru HOSONO (Gakushuin Univ.)
Koji SAKAI (Hitotsubashi Univ.)
Kotaro TSURU (RIETI)
A-3
06-E-033 Aug-06
The Shadow of Death: Pre-exit Performance of Firms in Japan
Kozo KIYOTA (RIETI/Yokohama National Univ.)
Miho TAKIZAWA (Hitotsubashi Univ./
Japan Society for the Promotion of
Science)
II-2
06-E-032 Jul-06
Centralization or Decentralization of Decision Rights? Impact on
IT Performance of Firms
Takahito KANAMORI (RIETI/Tokyo
Univ.)
Kazuyuki MOTOHASHI (RIETI/Tokyo
Univ.)
I-3
06-E-031 Jun-06
Loan Officers and Relationship Lending
Hirofumi UCHIDA (Wakayama Univ.)
Gregory F. UDELL (Indiana Univ.)
Nobuyoshi YAMORI (Nagoya Univ.)
A-Others
06-E-030 Jun-06
Empirical Determinants of Bargaining Power
Hirofumi UCHIDA (Wakayama Univ.)
A-Others
06-E-029 Jun-06
Bank Size and Lending Relationships in Japan
Hirofumi UCHIDA (Wakayama Univ.)
Gregory F. UDELL (Indiana Univ.)
Wako WATANABE (Tohoku Univ.)
A-Others
I-Others
23
06-E-028 Jun-06
Adopting a Common Currency Basket Arrangement into the
'ASEAN Plus Three'
Eiji OGAWA (RIETI/Hitotsubashi Univ.)
Kentaro KAWASAKI (Toyo Univ.)
III-5
06-E-027 Jun-06
An Analysis of the Potential Economic Effects of Bilateral,
Regional, and Multilateral Free Trade
Kozo KIYOTA (RIETI/Yokohama National Univ.)
III-6
06-E-026 Apr-06
Are Trade Creditors Relationship Lenders?
Hirofumi UCHIDA (Wakayama Univ.)
Gregory F. UDELL (Indiana Univ.)
Wako WATANABE (Tohoku Univ.)
A-Others
06-E-025 Apr-06
SME Financing and the Choice of Lending Technology
Hirofumi UCHIDA (Wakayama Univ.)
Gregory F. UDELL (Indiana Univ.)
Nobuyoshi YAMORI (Nagoya Univ.)
A-Others
06-E-024 Apr-06
Chinese Exchange Rate Regimes and the Optimal Basket Weights
Etsuro SHIOJI (Hitotsubashi Univ.)
for the Rest of East Asia
06-E-023 Apr-06
New Evidences on What Job Creation and Job Destruction
Represent
Carlos Henrique CORSEUIL (Univ. College London/IPEA)
Hidehiko ICHIMURA (RIETI/Tokyo
Univ.)
06-E-022 Apr-06
A Spatial Equilibrium Analysis of Transmission Charge Reform in
Japan's Electric Power Industry
Shu-ichi AKIYAMA (Kushiro Public
Univ.)
Nobuhiro HOSOE (GRIPS)
06-E-021 Apr-06
Licensing or Not Licensing?: Empirical Analysis on Strategic Use of Kazuyuki MOTOHASHI (RIETI/Tokyo
Univ.)
Patent in Japanese Firms
I-3
06-E-020 Apr-06
On Determinants of the Yen Weight in the Implicit Basket System Takatoshi ITO (RIETI/Tokyo Univ.)
Keisuke ORII (Keiai Univ.)
in East Asia
III-5
06-E-019 Apr-06
The Chinese Yuan after the Chinese Exchange Rate System
Reform
Eiji OGAWA (RIETI/Hitotsubashi Univ.)
Michiru SAKANE (Hitotsubashi Univ.)
III-5
06-E-018 Apr-06
Exchange Rate Changes and Inflation in Post-Crisis Asian
Economies: VAR Analysis of the Exchange Rate Pass-Through
Takatoshi ITO (RIETI/Tokyo Univ.)
Kiyotaka SATO (Yokohama National
Univ.)
III-5
III-5
B-Others
B-1
Public Relations Activities
24
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Dissemination of Research Results
The role of policy research institutes does not end with the
completion of research. They have an obligation to stimulate
policy debates by broadly disseminating the results of their
research. RIETI actively circulates its research results via its
website, issuing publications and publicity materials, and
holding symposia/seminars.
25
PUBLIC RELATIONS ACTIVITIES ① PUBLICATIONS
RIETI’s publications cover a diverse array of themes and appear under the imprint of various publishers. The contents range from studies
of a high academic standard that have undergone peer review in their respective disciplines to timely policy study topics for a wider
audience (http://www.rieti.go.jp/en/publications/act_rb.html).
Domain I and its relations
Economic Analysis of
Labor Market Design:
Enhancing the JobMatching Function
2005/12
Written and edited by Yoshio
HIGUCHI, Toshihiro KODAMA
and Masahiro ABE
Toyokeizai Shimposha
¥4,600/P432
Current Issues Surrounding
Women at Work and in
the Family: Proposals
Going Beyond This Age of
Decreasing Population
2005/10
Written and edited by
Toshiaki TACHIBANAKI
Minerva Shobo
¥3,500/P279
Fiscal Reform of Japan:
Redesigning the Frame
of the State
2004/12
Written and Edited by
Masahiko AOKI and
Kotaro TSURU
Toyokeizai Shimposha
¥4,800/P612
Health Care Reform
Economics of
Balance-Sheet
Restructuring
2002/2
Written by
Koichi KAWABUCHI
Toyokeizai Shimposha
¥2,400/P322
2001/6
Written and Edited by
Mitsuhiro FUKAO,
Tatsuya TERAZAWA and
Keiichiro KOBAYASHI
Toyokeizai Shimposha
¥2,000/P266
Domain II and its relations
Economics of the
Life-cycles of Firms
2006/12
Written and edited by
Toshiaki TACHIBANAKI
and Takehiko YASUDA
Nakanishiya Shuppan
¥3,200/P259
Japan's National
Innovation System:
Rebuilding the
Engine of Growth
2006/3
Written and edited by
Akira GOTO and
Toshihiro KODAMA
University of Tokyo Press
¥5,200/P327
Toward the Theory of
Knowledge-Based Country:
A New Paradigm of the
Policy Process
2003/3
Written and edited by
Ikujiro NONAKA, Hirohiko IZUMIDA
and Akiya NAGATA
Toyokeizai Shimposha
¥2,800/P319
Architecture-Based
Analysis of Chinese
Manufacturing
Industries
2005/5
Written and edited by
Takahiro FUJIMOTO
and Junjiro SHINTAKU
Toyokeizai Shimposha
¥4,200/P353
The Japanese Firm
in Transition
2002/9
Written and edited by
Hideshi ITOH
Toyokeizai Shimposha
¥3,600/P369
Empirical Analysis of
IT Innovation: Has IT
Changed Long-Term
Japanese Economic
Performance?
2005/3
Written by
Kazuyuki MOTOHASHI
Toyokeizai Shimposha
￥3,400/P208
Universities that
Outperform
Competitors
2005/2
Written and edited by
Akihiro SAWA,
Tatsuya TERAZAWA
and Satoshi INOUE
Toyokeizai Shimposha
￥3,200/P312
Designing Institutions
in the Broadband Era
2002/4
Written and edited by
Nobuo IKEDA and
Koichiro HAYASHI
Toyokeizai Shimposha
¥2,500/P259
Industry-Academia
Cooperation:
Toward Institutional
Design to Cultivate
Innovative Power
2003/4
Written and edited by
Yuko HARAYAMA
Toyokeizai Shimposha
￥2,500/P246
Modularity: A New
Industrial Architecture
2002/3
Written and edited by
Masahiko AOKI and
Haruhiko ANDOH
Toyokeizai Shimposha
¥2,800/P334
26
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Domain III and its relations
Transforming
East Asia
Adjacent Basic Research Areas & others
Implementation
System Under
the WTO Dispute
Settlement
Mechanism
Pros and Cons of RMB
Revaluation: Interests
and Arguments of
China, Japan and the
United States
Economics of Urban
Recentralization
Agricultural Policy
Reform for Japan
and its Consumers:
To Better Steer
WTO and FTA
Negotiations
Safeguards under
the WTO Agreement:
Issues and Proposals
for a More Effective
Mechanism
WTO at the
Crossroads An Analysis of
Non-Trade Issue
Linkages
Liberalizing
Electricity Markets:
An Economic
Analysis
Revisiting Global
Warming Issues
Transnational Civil
Society
A Reintroduction
to the Chinese
Economy
Turning Point
of Japan-China
Relations
Civil Mind Civil
Power NPO/NGOs
as the Lead Actor in
the Public Sector
Local Governance
Reform in An Era of
Change
2006/9
Written by
Naoko MUNAKATA
Brookings Institution Press
$24.95/P258
2004/8
Written by
Kazuhito YAMASHITA
Toyokeizai Shimposha
¥4,400/P368
2003/2
Written by
Motoko MEKATA
Toyokeizai Shimposha
¥3,400/P229
2005/11
Written and edited by
Tsuyoshi KAWASE
and Ichiro ARAKI
Sanseido
¥4,500/P483
2004/7
Written and edited by
Tsuyoshi KAWASE
and Ichiro ARAKI
Toyokeizai Shimposha
¥3,800/P262
2002/10
Written by C.H. KWAN
Toyokeizai Shimposha
¥1,600/P280
2004/10
Written and edited by
C. H. KWAN and the
CASS Institute of World
Economics and Politics
Toyokeizai Shimposha
¥2,600/P247
2003/3
Written and edited by
Akira KOTERA
Toyokeizai Shimposha
¥3,600/P274
2001/8
Written and edited by
Naoko MUNAKATA
Toyokeizai Shimposha
¥2,200/P220
2006/6
Written and edited by
Tatsuo HATTA
Nihon Keizai Shimbun,
Inc.
¥3,800/P210
2004/8
Written and edited by
Tatsuo HATTA and
Makoto TANAKA
Toyokeizai Shimposha
¥4,400/P367
2003/5
Written and edited by
Akihiro SAWA, et. al
Toyokeizai Shimposha
¥1,900/P259
Microeconomic
Modeling for Policy
Analysis
2006/3
Written and edited by
Yoshitsugu KANEMOTO,
Katsuhito HASUIKE and
Toru FUJIWARA
Toyokeizai Shimposha
¥4,000/P303
2004/2
Written and edited by
Akihiro SAWA and
Soichiro SEKI
Toyokeizai Shimposha
¥3,400/P328
2003/3
Written and edited by
Michio MURAMATSU
and Hiroaki INATSUGU
Toyokeizai Shimposha
¥3,800/P339
The Collapse of
the 1990s Bubble:
Research on the
Non-Performing
Loan Problem
2005/3
Written and edited by
Michio MURAMATSU
Toyokeizai Shimposha
¥4,200/P346
Institutional
Reforms for
Enterprise-Based
Welfare Provisions
2003/9
Written and edited by
Toshiaki TACHIBANAKI
and Yoshihiro KANEKO
Toyokeizai Shimposha
¥3,600/P244
The Political
Economy of the
Japanese Financial
Big Bang:
Institutional Change
in Finance and Public
Policy Making
2003/2
Written by Tetsuro TOYA
Toyokeizai Shimposha
¥3,800/P400
27
PUBLIC RELATIONS ACTIVITIES ② SYMPOSIA
Note: Titles and affiliations of participants are current as of the date of the events. Lists of Speakers/Panelists are in order of appearance.
RIETI Policy Symposium
RIETI Policy Symposium
http://www.rieti.go.jp/en/events/07032201/info.html
http://www.rieti.go.jp/en/events/07031401/info.html
Assessing Quality and Impacts of Major Free Trade
Agreements
Date
March 22-23, 2007
Venue
ANA Hotel Tokyo, Galaxy Banquet Room
Summary
This two-day policy symposium contained a presentation
that offered a comparative analysis of free trade agreements
(FTAs) and economic partnership agreements (EPAs) in
different regions including Japan, East Asia, Europe, and
the United States, with a focus on the quality of FTAs
and the quantitative effects of these agreements. The
panel discussion saw a lively debate on the outlook for
constructing FTAs covering entire regions, including
obstacles and potential solutions. It recommended an indepth study of production and trade in the region, to design
FTAs capable of addressing impediments to business. The
symposium recognized the challenges inherent in building
any FTA for an entire region from a very complicated existing
structure and noted that they are susceptible to progress
in discussions at the World Trade Organization (WTO) and
to political imperatives. It concluded that it is necessary
to continue with discussions to deal with the numerous
difficulties facing the initiative. The symposium called for a
continuation of efforts.
Program
Opening Remarks
Part Ⅰ
：Ex-ante (text-based) Assessment of the Quality of FTAs
Session 1 Rules of Origin (ROO)
Session 2 Liberalization of Agricultural Trade
Session 3 Trade in Services
Session 4 Foreign Direct Investment
Session 5 Safeguards
Part Ⅱ：Ex-post Assessment of Actual Impacts of FTAs
Session 1 Impacts on Trade Flows
Session 2 Economic Impacts
Session 3 Utilization of Preferential Treatment under FTAs
Session 4 Ex-post Assessment of FTAs: The Case of Japan
Part Ⅲ：Panel Discussion
In Search of Desirable FTA Policies: Implications from FTA Quality
Assessment and FTA Impact Studies
Closing Remarks
Speaker/
Ryuhei WAKASUGI (Research Counselor, RIETI/Professor, Dept. of
Panelist
Economics, Keio Univ./Professor Emeritus, Yokohama National Univ.)
Shujiro URATA (FF, RIETI/Professor, Graduate School of Asia
Pacific Studies, Waseda Univ.)
Inkyo CHEONG (Professor of Economics and Director for
Center on FTA Studies, Inha Univ.)
Jungran CHO (Research Fellow, Center on FTA Studies, Inha Univ.)
Antoni ESTEVADEORDAL (Principal Advisor, Integration and
Regional Programs Dept., Inter-American Development Bank)
Keiji OHGA (Professor, College of Bioresource Sciences, Nihon Univ.)
Robert SCOLLAY (Director, APEC Study Centre, and Associate
Professor of Economics, The Univ. of Auckland)
Christopher FINDLAY (Head and Professor, School of
Economics, The Univ. of Adelaide)
Fukunari KIMURA (Professor, Faculty of Economics, Keio Univ.)
Myrna AUSTRIA (Full Professor, Dept. of Economics, De La Salle Univ.)
Akira KOTERA (FF, RIETI/Professor, Graduate School of Arts
and Sciences, Univ. of Tokyo)
Kenichi KOBAYASHI (CF, RIETI/Deputy Director, Multilateral
Trade System Dept., Trade Policy Bureau, METI)
Kazutomo ABE (Professor, School of Engineering, Tokyo Denki Univ.)
Ken ITAKURA (Assistant Professor, Faculty of Economics, Nagoya City Univ.)
Katsuhide TAKAHASHI (Associate Professor, Graduate School
of Economics, Kobe Univ.)
Hidehiro OKAYAMA (Deputy General Manager, International
Division, Tokyo Chamber of Commerce and Industry)
Mitsuyo ANDO (Assistant Professor, Graduate School of
Economics, Hitotsubashi Univ.)
Jeffrey J. SCHOTT (Senior Fellow, Peter G. Peterson Institute
for International Economics)
Michitaka NAKATOMI (Director-General for International Trade Policy, METI)
Kozo OIKAWA (Chairman, RIETI)
Metanational Management and Global Innovation:
The Case of the TFT-LCD Industry
Date
Venue
Summary
March 14, 2007
Palace Hotel Tokyo, Golden Room
In this policy symposium, metanational management was
discussed from a number of different perspectives, using
the liquid crystal display (LCD) industry as an example.
Metanational management aims at securing a global
advantage by making strategic use of knowledge and
information on a global scale, instead of depending on the
advantages of the business itself or the country where it is
based. Comments heard in the panel discussion included
the remark that Japanese companies faced more difficulties
with metanational management than South Korean and
Taiwanese firms did, and that government assistance should
promote cooperation with optimal partners rather than
being exclusive to overseas businesses.
Program
Opening Remarks
Keynote Speech
"Metanational Management in the TFT-LCD Industry"
Overview of Main Issues
Session 1: Presentation
Innovations of TFT-LCD Industry in East Asia
Session 2: Panel Discussion
Metanational Management-Issues and Challenges for Japanese
Enterprises
Closing Remarks
Speaker/
Sadao NAGAOKA (Research Counselor, RIETI/Director and
Panelist
Professor, Institute of Innovation Research, Hitotsubashi
Univ.)
Thomas MURTHA (Professor of Management, College of
Business Administration, Univ. of Illinois at Chicago and
Carlson School of Management, Univ. of Minnesota)
Kazuhiro ASAKAWA (FF, RIETI/Professor, Graduate School of
Business Administration, Keio Univ.)
Susumu SANBONMATSU (CF, RIETI/Senior Researcher,
Organization for Small & Medium Enterprises and Regional
Innovation, JAPAN/Visiting Professor, Hitotsubashi Univ.)
Yoshio TAMURA (Senior Vice President, DisplaySearch Japan)
Yukihiko NAKATA (Professor, Graduate School of
Management, Ritsumeikan Asia Pacific Univ.)
Jaeyong SONG (Associate Professor of Strategy &
International Management, Graduate School of Business,
Seoul National Univ.)
Shwu-Jen WANG (Professor Extraordinary, Faculty of
Environmental Engineering, The Univ. of Kitakyushu/
Managing Director, Research Institute of EDA Technologies)
Yoichi MATSUMOTO (Graduate School of Media and
Governance, Keio Univ./Technology Information Dept.,
Research Office for Innovation Management, National
Institute of Advanced Industrial Science and Technology
[AIST])
Yoshinobu KONOMI (Professor, Graduate School of Business
Administration, Keio Univ.)
Hidetaka FUKUDA (CEO, e Conservo/former Director,
Information and Communication Electronics Division, METI)
Mitsuru ONOZATO (Senior Vice President, FPD General
Manager, FPD Div., Tokyo Electron Limited)
Tsuneo YAHAGI (Professor, Graduate School of Business and
Graduate School of Medicine, Keio Univ.)
Kozo OIKAWA (Chairman, RIETI)
28
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Japan-China Economic Conference 2006
http://www.jcec.jp/
Date
Venue
Summary
November 16-17, 2006
Osaka International Convention Center
The Japan-China Economic Conference 2006 was jointly
organized by a number of organizations, including RIETI. At
the general meeting on the first day, Dr. Masaru YOSHITOMI,
President and CRO of RIETI, delivered a speech titled “Lessons
of the Japanese Economy: Foreign Exchange Policy and
Income Gap-Negative and Positive Examples to be Followed
by China.” The talk took an overall look at the similarities
and differences between the Chinese economy as it is today
(1994-2006) and the Japanese economy in its period of
rapid growth (1950-1973) to identify two major issues facing
the Chinese economy, namely the foreign exchange policy
and the income gap, and to recommend areas of focus for
China in its economic management, by referring to Japan’s
experience.
METI-RIETI-AIST-NEDO Lecture & Symposium
Partnering for Scientific Innovation
-The Los Alamos National Laboratory Experiencehttp://www.rieti.go.jp/en/events/06091301/info.html
Date
Venue
Summary
Program
Opening Remarks
Panel Session
Deepening Interdependence between Japan and China for Mutual Benefit
RIETI Session
Lessons from Japanese Economy-Bubble, Exchange Rate and Structural
Reforms
Subcommittee Meetings
Closing Remarks
"Reconstruction of Japan-China Relations"
Speaker/
Yoshihisa AKIYAMA (Chairman, Kansai Economic Federation)
Panelist
Katsuhiko MACHIDA (President, Sharp Corp.)
Atsushi HORIBA (Chairman, President & CEO, HORIBA Ltd.)
Yasuyuki NAMBU (President & CEO, Pasona Group)
Houjian ZHOU (Chairman, Hisense Group)
Fangyou ZHANG (Chairman, Guangzhou Automobile
Industry Group Co., Ltd)
Mian Mian YANG (President, Haier Group Corp.)
Daniel SHAO Kung Chuen（Executive Director, Van Yu
Holding Co., Ltd.）
Osamu WATANABE (Chairman, JETRO)
Masaru YOSHITOMI (President and CRO, RIETI)
Ichiro TAKAHARA (Vice President, RIETI)
Deren XIA (Mayor of Dalian)
Katsuhiko HIRAI (Adviser, Toray Industries, Inc.)
Victor CHU (Chairman, First Eastern Investment Group)
Sachio SENMOTO (President & CEO, eAccess Ltd.)
Yoichi FUNABASHI (Columnist and Chief Diplomatic
Correspondent, Asahi Shimbun)
Jiadong GU (Chairman, Shanghai Foreign Service Co., Ltd)
Yoshimi ISHIKAWA (writer/President, Akita Municipal Junior
College of Arts and Crafts/member, New Japan-China
Friendship Committee for the 21st Century)
September 13, 2006
Tokai University Kouyu-Kaikan
This special lecture and accompanying symposium were
jointly organized by several institutions including METI
and RIETI, after METI reached a partnership agreement
with the U.S.-based Los Alamos National Laboratory (LANL)
for innovation in research and development through
collaboration among industrial, academic, and governmental
sectors. Dr. Terry WALLACE, Principal Associate Director for
Science, Technology, and Engineering of the LANL, delivered
a keynote speech to examine the possibility of cooperation
between the LANL and industry, and between the United
States and Japan, offering some specific examples. Involving
Dr. Masaru YOSHITOMI, President and CRO of RIETI, and
other representative Japanese researchers, the panel
discussion suggested some keys to future innovations in
technical development, such as the “new combination” of
basic sciences with knowledge in different industries and
disciplines, human resource development and qualitative
improvement in research management.
Program
Opening Remarks
Speech by Minister for Economy, Trade and Industry
Keynote Speech
“Partnering for Scientific Innovation”
Panel Discussion
Industry-Government-Academia Partnering for Scientific Innovation
Closing Remarks
Speaker/
Panelist
Haruhiko ANDO (Director for New and Renewable Energy
Division, Agency for Natural Resources and Energy, METI)
Toshihiro NIKAI (Minister for Economy, Trade and Industry)
Terry WALLACE (Principal Associate Director for Science,
Technology & Engineering, Los Alamos National Laboratory)
Kazuhito HASHIMOTO (Director General, Research Center for
Advanced Science and Technology, Univ. of Tokyo)
Masaru YOSHITOMI (President and CRO, RIETI)
Hiroshi YOKOYAMA (Director, Nanotechnology Research
Institute, AIST)
Takashi TOMITA (Corporate Executive Director, Solar System
Group, Sharp Corp.)
29
RIETI Policy Symposium
Determinants of Total Factor Productivity and
Japan's Potential Growth: An International
Perspective
http://www.rieti.go.jp/en/events/06072501/info.html
Date
Venue
Summary
July 25, 2006
Shinsei Bank, Conference Hall
Japan’s macroeconomic policies are shifting emphasis from
a departure from deflation to supply-side policies in favor of
eliminating the demand-supply gap. This symposium defined
a rise in total factor productivity (TFP) as a major source of
economic growth for Japan, which is assumed to experience
a severe population decline in the future, and spotlighted
the debate on action to stimulate TFP improvement.
OECD Tokyo Policy Forum
The Role of Advanced Nations
in the Global Economy
http://www.iist.or.jp/info/oecd-2006/index-e.html
Date
Venue
Summary
Program
Opening Remarks
"Determinants of TFP Growth and Potential Growth in Japan"
"Can the EU Catch Up with the US in Terms of the Level of
Study
TFP? "
Report
"Japan's Potential Growth in a World Perspective"
"Japan's Potential Growth from an East Asian Perspective"
Panel Discussion
Closing Remarks
Speaker/
Masaru YOSHITOMI (President and CRO, RIETI)
Panelist
Tomohiko INUI (Professor, Nihon Univ. College of Economics)
Tsutomu MIYAGAWA (Former FF, RIETI/Professor, Faculty of
Economics, Gakushuin Univ.)
Kyoji FUKAO (FF, RIETI/Professor, Institute of Economic
Research, Hitotsubashi Univ.)
Marcel P. TIMMER (Assistant Professor, Dept. of Economics,
Univ. of Groningen)
Dale W. JORGENSON (Samuel W. Morris Univ. Professor, Dept.
of Economics, Harvard Univ.)
Kazuyuki MOTOHASHI (FF, RIETI/Professor, Dept. of
Technology Management for Innovation, Univ. of Tokyo)
Sadao NAGAOKA (Research Counselor, RIETI/Director and
Professor, Institute of Innovation Research, Hitotsubashi
Univ.)
Hiroshi YOSHIKAWA (Research Counselor, RIETI/Professor,
Faculty of Economics, Univ. of Tokyo)
Masayuki MORIKAWA (Director, Industrial Structure Policy
Div., Economic and Industrial Policy Bureau, METI)
Hisayoshi FUWA (Corporate Vice President, General Manager
for Corporate Strategic Planning Div., and General Manager
for i cube Project Office of Innovation Div., Toshiba Corp.)
Kozo OIKAWA (Chairman, RIETI)
July 21, 2006
UN University, U Thant Hall
The forum featured two keynote speeches. One was
delivered by Mr. Angel GURRIA soon after he assumed the
post of Secretary-General of the OECD, on "The Role of
Advanced Nations in the Global Economy." The other was
given in the form of a proposal from Japan by Mr. Toshihiro
NIKAI, Japan’s Minister of Economy, Trade and Industry, titled
"A New Growth Strategy Aimed at Attaining Sustainable
Growth-Surmounting the Adverse Trend of Depopulation."
The forum also included a panel discussion on the subject
of "Challenges for New Growth." Dr. Masaru YOSHITOMI,
President and CRO of RIETI, and other experts as well as
representatives from the industrial sector participated in the
debate on what roles the state government and enterprises
have to play.
Program
Opening Remarks
Speech by Minister for Economy, Trade and Industry
Keynote Speech
"The Role of Advanced Nations in the Global Economy"
Panel Session
Challenge Toward the New Growth
Closing Remarks
Speaker/
Toshiriro NIKAI (Minister for Economy, Trade and Industry,
Panelist
METI)
Angel GURRIA (Secretary General, OECD)
Junjiro SHINTAKU (Associate Professor, Univ. of Tokyo)
Takao KITABATA (Vice-Minister of Economy, Trade and
Industry, METI)
Masaru YOSHITOMI (President and CRO, RIETI)
Hidetoshi YAJIMA (Chairman, Shimadzu Corp.)
Rizaburo NEZU (Senior Managing Director, Fujitsu Research
Institute)
PUBLIC RELATIONS ACTIVITIES ③ BBL SEMINARS
30
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　BBL seminars are held during lunch hours. We invite Japanese and foreign guest lecturers and provide a venue for candid exchanges
of opinions on a variety of policy issues, transcending industry-government-academia boundaries. During fiscal 2006, 54 BBL seminars
were held, and the total number of seminars exceeds 430 as of March 31, 2007（http://www.rieti.go.jp/en/events/bbl/index.html）.
Note: Titles and affiliations of participants are current as of the date of the events.
2007/3/27
2007/3/9
Intellectual Property after Gowers
Banking System Reform in China: Remaining Challenges and
Tasks Toward a Market Oriented Economy
Global Focus on Knowledge-Sustainability
2007/2/28
Situation and Evaluation of Japanese PFI
2007/2/22
Recent Trends of M&A Laws
The Impact of the Economic Integration and Enlargement
of the EU on Japanese Companies
On Urgent and Fundamental Structural Reform of the
Fisheries in Japan
2007/3/19
2007/2/14
2007/2/6
2007/2/1
Japanese SMEs and VCs: Innovation and East Asian and Global
Management（New Direction of Growth for SMEs/Venture in
Goods and Service Industries）
2007/1/25
Open Standards, Open Source and Open Innovation:
Harnessing the Benefits of Openness
2007/1/22
Japan's Diplomacy
2007/1/19
Towards Work-Life Balance Society
2007/1/17
North Korean Nuclear Issues
2006/12/15
Multilateralising Regionalism: How to Make
Regionalism Less Damaging to the Multilateral Trade System
2006/12/12
The Evolution of and Prospects for Economic Integration
in East Asia
2006/12/4 Future of Asset Formation in Japan
2006/11/28 Marketing Reform at Nissan Motor
2006/11/9
DDA Negotiations-Where Are We Now and
What Are Other Developments in Trade Remedies Area
The Creation of New Businesses Led by Industry-AcademiaGovernment Collaboration to Strengthen Japan: ZEON
Corporation's New Business Development and MOT
Work-Life Balance and the Role of Management: Institutional
2006/10/30
Design and its Implementation
2006/11/2
Speaker : Ron MARCHANT（Chief Executive, UK Patent Office）
Speaker : K
umiko OKAZAKI（International Visiting Fellow, Center for Asia Pacific
Policy, RAND）
Speaker : Katsumori MATSUSHIMA（Professor, School of Engineering, Univ. of Tokyo）
Speaker : Hitoshi IKUMA（Executive Officer, The Japan Research Institute, Limited/
Director, Center for the Strategy of Emergence）
Speaker : Shuya NOMURA（Professor, Chuo Law School）
Speaker : H
ideo HORIGUCHI（Visiting Professor, Ritsumeikan Univ. College of International
Relations/Senior Coordinator（Europe, Russia）
, Planning Dept., JETRO）
Speaker : Masayuki KOMATSU（Executive Director, in charge of Marine Fisheries
Research and Development Center（JAMARC）
, Fisheries Research Agency）
Speaker : S
usumu SANBONMATSU（CF, RIETI/Researcher, Organization for
Small & Medium Enterprises and Regional Innovation, JAPAN/Visiting
Professor, Hitotsubashi Univ.）
Speaker : Go TAKIZAWA（Deputy Director, Human Resource Policy Div., Economic
and Industrial Policy Bureau, METI）
Commentator : Kazuhiro ASAKAWA（FF, RIETI/Professor, Graduate School of Business
Administration, Keio Univ.）
Speaker : E lliot E. MAXWELL（Fellow, the Communications Program, Johns Hopkins
Univ./Distinguished Research Fellow, the eBusiness Research Center of
Pennsylvania State Univ.）
Speaker : H
itoshi TANAKA（Senior Fellow, Japan Center for International Exchange）
Speaker : Machiko OSAWA（Professor, Dept. of Studies on Contemporary Society,
Faculty of Integrated Arts and Social Sciences, Japan Women's Univ.）
Speaker : Hideshi TAKESADA（Director, Library, The National Institute for Defense
Studies（NIDS）
）
Speaker : R
ichard BALDWIN（Professor of International Economics, Graduate
Institute of International Studies, Geneva）
Speaker : N
aoko MUNAKATA（Director, Textile and Clothing Div., Manufacturing
Industries Bureau, METI/Former SF, RIETI/Former Visiting Fellow, Center
for Northeast Asian Policy Studies, The Brookings Institution）
Speaker : Oki MATSUMOTO（President & CEO, Monex, Inc.）
Speaker : Asako HOSHINO（Corporate Vice President, Nissan Motor Co., Ltd.）
Speaker : Jan WOZNOWSKI（Director, Rules Div., World Trade Organization）
Commentator : N
aoshi HIROSE（Director, Rules/Director, WTO Compliance and Dispute
Settlement, Multilateral Trade System Dept., Trade Policy Bureau, METI）
Speaker : Masahiro YAMAZAKI（Representative Executive Managing Director,
ZEON Corp.）
Speaker : Hiroki SATO（Professor, The Institute of Social Science, Univ. of Tokyo）
World Economic Outlook
Speaker : Zenichi KITAO（Manager, Corporate Planning HQs, Intellectual Property Dept.,
OMRON Corp.）
Speaker : Fumio OTAKE（Professor, Institute of Social and Economic Research,
Osaka Univ.）
Speaker : Akira ARIYOSHI（Director, IMF Regional Office for Asia and the Pacific）
Premature Monetary Tightening: Economic Slowdown in 2007
Marital Satisfaction and Work-Life Balance: A View-Point
Indispensable to Mitigating Fertility Decline
Market, Development, and Poverty Reduction in Developing
Countries: A Micro-Perspective
Speaker : Mikihiro MATSUOKA（Chief Economist, Japan, Deutsche Securities Inc.）
Speaker : Kazuo YAMAGUCHI（VF, RIETI/Professor of Sociology, The Univ. of
Chicago）
Speaker : Yasuyuki SAWADA（FF, RIETI/Associate Professor, Graduate School of
Economics, Faculty of Economics, Univ. of Tokyo）
2006/9/7
Diagnosing Public Service Value-Learning from Osaka City
Government Reform Project
Speaker : Shinichi UEYAMA（Professor of Public Management, Keio Univ.）
Speaker : Yasutomo INOSHITA（Manager for Project Evaluation, Reform Promotion
Div., Office of City Reforms, Osaka City Government）
2006/9/5
VINNOVA and its Role in the Swedish
Innovation System: Accomplishments since
the Start in 2002 and Ambitions Forward
2006/8/10
Potential Risks in Global Economy
2006/10/27 OMRON's MOT-Global R&D Collaboration
2006/10/13 Inequality in Japan
2006/10/2
2006/9/25
2006/9/15
2006/9/12
2006/7/26
2006/7/19
Corporate Governance in the Global Economy:
Roles and Responsibilities of Corporate Directors
Regionalization and Institutionalization of East Asia’s
Finance and Trade
Speaker : Per ERIKSSON（Director General, VINNOVA（The Swedish Governmental
Agency for Innovation Systems）
）
Commentator : Akira KAWAMOTO（Director of Research, RIETI）
Speaker : K
eiichiro KOMATSU（Senior Fellow, JETRO London/Representative,
Komatsu Research & Advisory）
Commentator : Kazutomo IRIE（Director-General, Planning Dept., JETRO）
Speaker : R
oger W. RABER（President & CEO, National Association of Corporate
Directors）
Speaker : S
aori N. KATADA（Associate Professor, School of International Relations,
Univ. of Southern California）
31
2006/7/13
Korea's FTA Policy: Focusing on the Japan-Korea FTA
and US-Korea FTA
Speaker : S
e-Young AHN（Professor, Dean, Graduate School of International
Studies, Sogang Univ.）
2006/7/10
Aeon's Business Innovation-Making the Most of Information
Technologies
Speaker : Atsunobu AGATA（Senior Vice President, Information Technology,
AEON Co., Ltd.）
Commentator : Tetsuya WATANABE（Director, Commerce and Distribution Policy
Group, METI）
An Approach for the Business Turnaround and its Implication
Speaker : Y
asushi ANDO（Chief Investment Officer, Phoenix Capital Co., Ltd./
CEO, Horizon Holdings Co., Ltd.）
Commentator : Yoshiaki ISHII（Deputy Director, Fund Planning Div., Fund Program
Dept., Organization for Small & Medium Enterprises and Regional
Innovation, JAPAN/Former Deputy Director, Industrial Organization
Div., Economic and Industrial Policy Bureau, METI/Former CF, RIETI）
2006/7/6
Foreign Investment Protection under International Treaties
Speaker : Daniel M. PRICE（Partner, Sidley Austin LLP）
Speaker : Andrew W. SHOYER（Partner, Sidley Austin LLP）
Commentator : Akira KOTERA（FF, RIETI/Professor, Graduate School of Arts and
Sciences, Univ. of Tokyo）
2006/6/29
White Paper on International Economy and Trade 2006-Toward
Sustained Potential for Growth: Enhanced Productivity through
Globalization and Japan as an Investment Powerhouse
Speaker : Shigeaki SHIRAISHI（Director, Policy Planning and Research Div.,
Trade Policy Bureau, METI）
2006/7/7
2006/6/23
2006/6/22
2006/6/13
On the Roadmap, Off the Roadmap, or Beyond the Roadmap?
Speaker : Yuuko YASUNAGA（Director, Research and Development Div., Industrial
That is the Question
Science and Technology Policy and Environment Bureau, METI）
China Risks and Implications for the Global Community
Speaker : Harry HARDING（Director of Research & Analysis, Eurasia Group）
Cluster-Based Industrial Development: Evidence from Wenzhou and Speaker : Keijiro OTSUKA（Professorial Fellow, Foundation for Advanced
Chongqing
Studies on International Development）
Speaker : J ane E. FOUNTAIN（Director of National Center for Digital
Government and Professor of Political Science and Public Policy,
Univ. of Massachusetts Amherst）
2006/6/9
Current Issues in the Development of Cross-Agency Governance
2006/5/31
IT Strategy for Revitalization of SMEs
2006/5/24
Resources Inflation and Japan's Response
2006/5/23
The Structure of Intra-Group Ties: Innovation in
Taiwanese Business Groups
2006/5/15
The 2006 White Paper on Small and Medium Enterprises in Japan:
Japanese Small and Medium Enterprises at a Turning Point of
Speaker : Izuru HANAKI（Director, Research Office, Business Environment
Deepening Crossborder Economic Interdependence and Decreasing
Dept., Small and Medium Enterprise Agency, METI）
Domestic Population
2006/5/12
Global Developments in Corporate Responsibility
from a European Perspective
Speaker : G
eorge MOLENKAMP（Chairman, KPMG Global Sustainability
Services）
2006/5/11
Difficulties in Value Capture due to Commoditization: Case of
Digital Appliances
Speaker : Kentaro NOBEOKA（Former FF, RIETI/Professor, Research Institute
for Economics & Business Administration of Kobe Univ.）
Commentator : Hidehiro YOKOO（Director, Information and Communication
Electronics Div., Commerce and Information Policy Bureau, METI）
2006/5/8
Are High Oil Prices Here to Stay?
2006/4/28
Fiscal Sustainability and Japan's Fiscal Reconstruction with Tax
Increase: Reconsidering Broda and Weinstein's Estimate
2006/4/21
The Olympic Arbitration and Contemporary Sports World
2006/4/18
The Outline of the Committee, Japanesque-Modern Actions
Speaker : Hirotsugu KASHIBA（Secretary-General, The Committee Japanesque
Modern）
Commentator : Hisashi YOSHIKAWA（Director, Service Affairs Policy Div., Commerce
and Information Policy Bureau, METI）
2006/4/14
Optimal Division of Roles between the Public and Private Sectors under a
Decentralized Regime
Speaker : Nobuo AKAI（Former FF, RIETI/Associate Professor, School of
Business Administration, Univ. of Hyogo）
Commentator : Hiromu KATAYAMA（Former Director, Council for Decentralization
Reform, Cabinet Office）
2006/4/12
2006/4/10
2006/4/7
2006/4/6
The Nordic Countries Leaders in the New Economy?
ICT, Innovation and Economic Performance
U.S.-Japan Relationship: The View at Washington DC
Speaker : Shigeru MAT SUSHIMA（Prof essor, Facult y of Business
Administration, Hosei Univ.）
Speaker : Akio SHIBATA（Chief Economist and Director, Marubeni Research
Institute）
Speaker : Ishtiaq MAHMOOD（Assistant Professor, National Univ. of
Singapore Business School）
Speaker : L eo P. DROLLAS（Deputy Executive Director and Chief Economist,
CGES [Centre for Global Energy Studies]）
Speaker : Takero DOI（Former FF, RIETI/Associate Professor, Faculty of
Economics, Keio Univ.）
Speaker : Akira KOTERA（Former FF, RIETI/Professor, Graduate School of Arts
and Sciences, Univ. of Tokyo）
Speaker : Thomas ANDERSSON（President, Joenkoeping Univ.）
Speaker : Yukio TADA（Chairman, Center for Professional Exchange [CEPEX]）
Why Basic Soft Skills for Workers? : Old but Always New Indicators
Speaker : Yoshio SUWA（Professor, Graduate School of Policy Science, Hosei
Univ.）
Commentator : Kouki NOHMURA（Deputy Director, Industrial Structure Policy Div.,
Economic and Industrial Policy Bureau, METI）
New Economic Growth Strategy
Speaker : Masayuki MORIKAWA（Former CF, RIETI/Director, Industrial
Structure Policy Div., Economic and Industrial Policy Bureau, METI）
Speaker : Keisuke SAITO（Director, Industrial Revitalization Div., Economic and
Industrial Policy Bureau, METI）
Commentator : Kotaro TSURU（SF, RIETI）
PUBLIC RELATIONS ACTIVITIES ④ WEBSITE（http://www.rieti.go.jp/en/index.html）
32
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Operated in three languages-Japanese, English, and Chinese-the RIETI website is a key element in our public
relations activities. The number of page views for each language has been growing steadily（see table below）.The
website makes available to the public a range of materials offering in-depth
analyses on individual policy issues, from Discussion Papers representing
research results（http://www.rieti.go.jp/en/data/index.html）and interim
reports of individual research projects, to proceedings and handout materials
of policy symposia held to invigorate policy debate（http://www.rieti.go.jp/
en/events/symposium.html）.
Focusing on contents independently developed by researchers and study
groups, our website offers valuable materials and information not available
anywhere else. A highlight in fiscal 2006 was the publication of the Japan
Industrial Productivity Database
2006（JIP 2006）
（http://www.rieti.
go.jp/en/database/d05.html）.This is key material for analyzing Japan’s
economic growth and its changing industrial structure, published as part
of the outcomes of the “Research Project on Industry-Level and Firm-Level
Productivity in Japan,” which ran for two and a half years starting in fiscal
2004. In addition, we make weekly
updates to the outcomes of measuring
the Asian Monetary Unit（AMU）and
AMU Deviation Indicators（http://
www.rieti.go.jp/users/amu/en/index.
html）.This is a result of the study on
“The Optimal Exchange Rate Regime
for East Asia.” Our new content titled Developing the Research Frontier in
Corporate Governance Analysis（http://www.rieti.go.jp/en/projects/cgp/index.
html）showcases the latest research findings and policy debate subjects on
corporate governance.
A reader’s column has been set up for timely and policy-related topics written by researchers in order to create a
forum for active discussion. In enhancing the English and Chinese websites, custom-made contents are created and
added for issues of special interest for overseas readers, and electronic newsletters such as "RIETI Report"（in English）
and "Dianzixinxi"（in Chinese）are published to circulate Japanese policy information to RIETI’s broad international
audience.
Website traffic
Approx. six years
Fiscal 2006
（Jan. 2002 - March 2007） （April 2006 - March 2007）
Japanese
2,450,337
560,761
English
214,454
51,090
Chinese
230,804
45,941
33
PUBLIC RELATIONS ACTIVITIES ⑤ PUBLICITY MATERIALS
To promote wide dissemination of research results and subsequent contributions that invigorate policy debate, a variety of publicity
materials are available in print and downloadable from our website.
Materials for dissemination of research results
Discussion Papers
Research results which
principally went through
an internal referee process
are professionally
published as Discussion
Papers.
Volume: A4, 20-100 pages
Language: JP, ENG
Research Digest（Single & Combined）
Research Digest
introduces newly issued
Discussion Papers by
featuring underlying
research motivations,
principal speaking
points, and policy
proposals derived from
them, in an
easy-to-understand way,
by means of interviews
with the authors.
Language: JP
Symposium Proceedings
Symposium
Proceedings, including
summaries of each
session, minutes of
panel discussions, and
presentation materials
are released after policy
symposia.
Volume: A4, 50-100 pages
Language: JP
Single（A4, 4 pages）
Compilation of 5 Singles
（A4, 20 pages）
Policy Analysis Papers（PAPs）
PAPs summarize much-specialized research
results in easy-to-read executive-summary
format for a non-academic audience including
policy-making authorities and business
leaders.
Volume: B5, ±20 pages
Language: JP
34
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Materials for introducing RIETI
Brochures
Brochures
introduce general
infomation on RIETI
such as RIETI s
mission, research
themes and
process, access
map, and
organization charts.
Annual Report
Annual Report is a concise summary of
RIETI s entire activities in each fiscal year. It
reports on topics such as research projects,
fellows' activities, and PR activities.
Language: JP, ENG, CH
Catalog for publicity materials and publications
RIETI s publicity materials
and publications are
listed with photos in this
catalog.
Volume: A4, ±40 pages
Language: JP, ENG, CH
4+'6+
ೀⴕ‛ ಴ ‛ߩ
ߏ⚫੺
Language: JP
⁛┙ⴕ᡽ᴺੱ
⚻ᷣ↥ᬺ⎇ⓥᚲ
Materials for introducing RIETI s activities
RIETI HIGHLIGHT
A bimonthly newsletter featuring
RIETI s most recent activities
including symposia and seminars,
newly issued Discussion Papers,
and interviews with newly
appointed fellows.
Volume: A4, 8 pages
Language: JP
BBL Seminar Wrap-Up Reports
Wrap-up reports are released
after BBL seminars.
METI Journal Columns
RIETI writes two monthly
columns for METI Journal,
METI s monthly PR
magazine.
Volume: B5, 4 pages
Language: JP
Volume: A4, 2 pages（BF）
Language: JP
35
LIST OF FELLOWS, FISCAL 2006
Name/Title/
Concurrent post
Research Areas
Research Projects at RIETI
＜ ＞means the Fellow is a leader of the project,（ ）means the Fellow is a participant in the project（April 2006-March 2007）
President/Chief Research Officer
Masaru YOSHITOMI
International Macroeconomics, International Finance, Regional
Integration, Currency Adjustment
(Study on Social Security: Development of a Simulation Model for Social Security
Finance）
(The Resolution of Global Imbalances）
Research Counselor
Hiroshi YOSHIKAWA
Macroeconomics, Japanese Economy
Sadao NAGAOKA
Policy and Institutions for Innovation
Ryuhei WAKASUGI
International Economics, Economics of Innovation, Law and
Economics
<Economic Growth under Conditions of Low Fertility and Aging Population>
<The Structural Characteristics of Research and Development by Japanese Companies,
and Issues for the Future>
(Empirical Research into Software Innovation）
<Research on Changes in Multinational Corporations, Trade Structures, and Market
Institutions>
Editor in Chief, HJTIP
Konosuke ODAKA
Labor Economics, Japanese Economy, Modern Economic History of
Japan, Comparative Economic Development
<Compilation of the History of Japan’s Trade and Industry Policy>
Energy Policy, Environment Policy, Trade Policy
－
Economic Policy
－
Vice President
Yasuo TANABE
Ichiro TAKAHARA
Senior Fellow
Yutaka KIYOKAWA
Theory of Political Process, International Politics, Administrative
Reform
Recent Trends in Intellectual Property Rights: Pro-Patent and
Innovation
Satoshi KUWAHARA
East Asian Economy, International Trade
Shigeaki SHIRAISHI
International Economics, Energy, Public Policy
Kotaro TSURU
Corporate Governance, Financial System (e.g. banking),
Employment System, Political Economics
Hideichi OKADA
－
<The Desirable Form of Future Pro-Patent Policy>
<Empirical Analysis of Change in the Comparative Advantage Structure in Trade in
East Asia under the Modularization of Product Architecture>
<Study on International Strategies for Improving Productivity in the Context of
Economic Globalization>
<Economic Analysis of Organizations and Institutions: The Design of Organizations
and Institutions to Enhance Corporate Performance and Growth>
<Reform of Labor Market Institutions>
(The Frontier of Corporate Governance Analysis: Economic Analysis of M&A and
Corporate Governance)
Takeshi MIYAMOTO
concurrent Director,
The History of Japan's Trade and Industry Policy
The History of Japan's
Trade and Industry Policy
(HJTIP)
<Compilation of the History of Japan’s Trade and Industry Policy>
<The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws>
Kazuhito YAMASHITA Agricultural Policy
Willem Hendrik
Monetary Economics, Financial Economics, International Economics <The Resolution of Global Imbalances>
THORBECKE
Fellow
Kazunari KAINOU
Hidemi KIMURA
Keiichiro KOBAYASHI
Hirokazu TAKIZAWA
Daigo NAKATA
Kayo MATSUMOTO
<Research into the Enhancement of Historical Energy Statistics>
(Economic Analysis of Markets and Networks in Electricity Power Reform)
（Simulation Models for Policy Evaluation）
Development Policy, Development Economics, Equal Participation of
<The Foreign Aid Governance>
Men and Women in Society, Low Fertility Issues
Endogenous Growth Theory, General Equilibrium, Business Cycles, <Building a New Macroeconomic Model: Focusing on the Financial System>
Bad Debt Problem, Debt Control Policy, Macropolitical Economy
（Reform of Labor Market Institutions)
<Theoretical and Experimental Research into Communication, Coordination, and
Collaboration Mechanisms>
Comparative Institutional Analysis, Game Theory (especially with
（The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws）
boundedly rational agents), Experimental Game Theory
（Research and Analysis Concerning the Innovation Process in Japan's Semiconductor
Industry）
Macroeconomics, Endogenous Economic Growth, Social Security,
<Study on Social Security: Development of a Simulation Model for Social Security
Numerical Simulation, Sustainable PAYGO Pension System, GenderFinance>
Equal Society
Econometrics, Sustainable Development and Quantitative Policy
Evaluation
International Trade Law, International Investment Law
<The Desirable Form of Legal Protection for Overseas Investments>
Nobuo AKAI
Public Economics, Public Finance, Local Public Finance, Urban
Economics
<Empirical and Internationally Comparative Institutional Analysis of the Forms of
Administrative and Financial Systems for Utilizing Infrastructure Assets to Invigorate
Local Economies in an Era of Decentralization and International Competition: A Study
of the Administrative and Financial Systems and Governance Systems in Operation at
Regional Airports>
Kazuhiro ASAKAWA
International Business, Business Organization, Innovation, Business
Alliances, Global R&D Management
<Regional Innovation and Corporate Management in East Asia>
Hidehiko ICHIMURA
Econometrics
Faculty Fellow
(Toward a Comprehensive Resolution of Social Security Problems: A New Economics
of Aging)
（Empirical Analysis of Japan's Labor Market）
36
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　Name/Title/
Concurrent post
Research Areas
Research Projects at RIETI
＜ ＞means the Fellow is a leader of the project,（ ）means the Fellow is a participant in the project （April 2006-March 2007）
Faculty Fellow
Takatoshi ITO
Microstructure of the Foreign Exchange Market, Economic Analysis
of Foreign Exchange Interventions, Inflation Targeting in Advanced
<Financial Cooperation in East Asia and the Optimal Currency Basket>
and Emerging Market Economies, Policy Questions on the Japanese
Economy (how to get Japan out of deflation), and Financial Crises
Yasushi IWAMOTO
Public Economics, Macroeconomics
<Changes in the Socioeconomic Structure and Tax Reform>
Shujiro URATA
International Economics, Development Economics, Industrial
Organizational Theory
<FTA Study>
Hiroshi OHASHI
Industrial Organization, Trade Policy
Eiji OGAWA
Yoshitsugu
KANEMOTO
Daiji KAWAGUCHI
Inernational Currency, International Finance
Tatsuo HATTA
Kanemi BAN
Yoshio HIGUCHI
Microeconomics, Public Economics, Urban Economics
Urban Economics, Public Economics
<Research on Changes in Multinational Corporations, Trade Structures, and Market
Institutions>
（Economic Growth under Conditions of Low Fertility and Aging Population)
<Financial Cooperation in East Asia and the Optimal Currency Basket>
<Simulation Models for Policy Evaluation>
<Empirical Analysis of Japan's Labor Market>
<Legal Approach to Regional Economic Integration>
International Economic Law, Trade Policy
（The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws）
Tsuyoshi KAWASE
（The Desirable Form of Legal Protection for Overseas Investments）
<The Desirable Form of Legal Protection for Overseas Investments>
International Law, International Economic Law, WTO System from
Akira KOTERA
the Legal Viewpoint, Investment Agreements
（The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws）
Economic Analysis of Technology Innovation and Competition Policy <Empirical Research into Software Innovation>
Akira GOTO
<The Foreign Aid Governance>
Development Economics, Applied Micro-Econometrics, Field Survey （Toward a Comprehensive Resolution of Social Security Problems: A New Economics
Yasuyuki SAWADA
of Aging）
<Toward a Comprehensive Resolution of Social Security Problems: A New Economics
of Aging>
Satoshi SHIMIZUTANI Japanese Economy, Macroeconomics, Health Economics
(An Integrated Approach to the Raising of Productivity at the Macro, Industry, and
Company Levels)
Government and Politics in East Asia, International Relations
<The Rise of China and the Transformation of the East Asian Regional Order>
Takashi SHIRAISHI
International Economics, Environmental and Natural Resource
<The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws>
Naoto JINJI
Economics, Industrial Organization
<Empirical Research into Software Innovation>
Science and Technology Policy, Quantitative Evaluation of
（The Structural Characteristics of Research and Development by Japanese Companies,
Jun SUZUKI
Innovation, University Industry Relationship
and Issues for the Future）
Technology Innovation, Information and Communication Industry,
<Empirical Research into Software Innovation>
Tatsuo TANAKA
Contents Industry
<Economic Analysis of Markets and Networks in Electricity Power Reform>
Industrial Organization, Regulatory Economics
Makoto TANAKA
（Simulation Models for Policy Evaluation）
Science and Technology Policy, Science Linkage of Japanese Patents, <Research into Joint Inventions by Universities and Public Research Institutions and
Schumpeter TAMADA University-Industry Relationships
Private-Sector Companies>
<Research and Analysis Concerning the Innovation Process in Japan's Semiconductor
Labor Economics, Economic Theory, Role of Skilled Production
Industry>
Workers in Innovation Processes, Sources of International
Hiroyuki CHUMA
（Theoretical and Experimental Research into Communication, Coordination, and
Competitiveness in Manufacturing Industries
Collaboration Mechanisms）
<Research on Changes in Multinational Corporations, Trade Structures, and Market
Empirical International Trade
Eiichi TOMIURA
Institutions>
<An Integrated Approach to the Raising of Productivity at the Macro, Industry, and
Yoshihiko NISHIYAMA Econometrics
Company Levels>
<Value Acquisition through Innovation: Japanese Companies' Competitiveness
Strategy and Organization Management, Management of
in Information Devices and Digital Home Electronic Products, and Value-Added
Kentaro NOBEOKA
Technology
Creation>
Public Finance, Public Economics, Local Public Finance
<Changes in the Socioeconomic Structure and Tax Reform>
Kyoji HASHIMOTO
Labor Economics, Applied Econometrics
<Economic Analysis of Markets and Networks in Electricity Power Reform>
Macro Econometric Modeling, Applied General Equilibrium Modeling <Building of GCE Model for East Asia that Introduces Economies of Scale>
Econometrics, Labor Economics
<Economic Analysis of Countermeasures for Low Fertility>
Kyoji FUKAO
International Economics, Macroeconomics, International Trade and
Direct Investment in Asia, Innovation and Total Factor Productivity
<Productivity of Companies and Industries, and Japan's Economic Growth>
Mitsuhiro FUKAO
International Finance, Monetary Theory, Corporate Governance
<Study on Social Security: Development of a Simulation Model for Social Security
Finance>
Takahiro FUJIMOTO
Technology and Production Management, Evolution of
Manufacturing System, Humanization of Assembly Operations,
Dynamics and Inter-Industrial Comparison
<Research into Japanese Companies' Architecture and Design Processes>
Kazuyuki MATSUMOTO Behavioral Theory of the Firm, Comparative Economics
Hideaki MIYAJIMA
Kazuyuki MOTOHASHI
Naoto YAMAUCHI
Tsutomu WATANABE
The Japanese Economy, Economic History of Japan, Corporate
Finance, Corporate Governance Comparative Financial Systems.
Applied Micro Economics, Economic Statistics, Econometrics,
International Comparison of Productivity, Economic Analysis of
Information Technology, Technological Innovation and Economic
Growth, Innovation System, Input-Output Analysis
Public Economics, Economics of Taxation, Public Expenditure,
Japanese Economy, Economics of the Nonprofit Sector, Distribution
of Income and Wealth
Financial Policy under Low-Inflation, Liquidity Traps, Currency
Framework of Foreign Debt, Effect of Fiscal Policy
<Economic Growth under Conditions of Low Fertility and Aging Population>
<The Frontier of Corporate Governance Analysis: Economic Analysis of M&A and
Corporate Governance>
<Empirical Analyses Relating to IT and Productivity>
<Research into Measures to Provide Efficient Public Services by Means of Government
and Private-Sector Collaboration, Premised on Small Government>
<Study Group on Changes in Financial and Industrial Structures>
37
Name/Title/
Concurrent post
Research Areas
Research Projects at RIETI
＜ ＞means the Fellow is a leader of the project,（ ）means the Fellow is a participant in the project（April 2006-March 2007）
Economic Policy, Social Security
(Economic Analysis of Countermeasures for Low Fertility)
Consulting Fellow
Genta ANDO
Hiroshi ISHIKAWA
SME and Venture Business Policy, Industrial Organization, Innovation
－
Policy
IT Policy, Intellectual Property Policy, Innovation Theory, Theory of （Empirical Analyses Relating to IT and Productivity）
Industrial Organization
（Empirical Research into Software Innovation）
Koji ITO
International Finance, Trade (FTA), Econometrics
Takuo IMAGAWA
Iichiro UESUGI
Economic Analysis of Information and Communications, Theory of
Industrial Organization, Socioeconomic Policy
Corporate Finance, Monetary Policy, Financial Market, MacroEconomics
Asako UENO
Trade Policy (Regional Economic Integration)
Manabu ETO
Technology Transfer, Management of Technology, Standardization
Takehiko OHTA
C.H. KWAN
Takashi KIHARA
Shinji KINJO
Trade Policy, International Economics, Socioeconomic Policy
(Legal Approach to Regional Economic Integration)
(The Structural Characteristics of Research and Development by Japanese Companies,
and Issues for the Future)
(Economic Analysis of Countermeasures for Low Fertility)
China's Economic Reform, Regional Integration in Asia, Yen Bloc
－
International Cooperation and Development Assistance
(The Foreign Aid Governance）
Yoshiaki ISHII
Toshihiro KOSE
Kenichi KOBAYASHI
Ichiro SAKATA
（Financial Cooperation in East Asia and the Optimal Currency Basket）
（The Resolution of Global Imbalances）
－
<Study Group on Changes in Financial and Industrial Structures>
－
(Research into Joint Inventions by Universities and Public Research Institutions and
Regional Cluster Policy, Regional Innovation Policy
Private-Sector Companies)
(Legal Approach to Regional Economic Integration)
International Economic Law, Trade Policy
（FTA Study）
(Research into Joint Inventions by Universities and Public Research Institutions and
Regional Economics, Regional Cluster, Innovation Policy, Tax System
Private-Sector Companies)
Application of Econometrics to Policy Evaluation
Susumu
SANBONMATSU
Asian Economy, Corporate Management
<Regional Innovation and Corporate Management in East Asia>
Takayuki SUMITA
Mechanizm of Innovation, Intellectual Asset Based Management,
Energy Security
(The Structural Characteristics of Research and Development by Japanese Companies,
and Issues for the Future)
(Productivity of Companies and Industries, and Japan's Economic Growth）
(Theoretical and Experimental Research into Communication, Coordination, and
Collaboration Mechanisms）
Hideaki TANAKA
Public Policy and Management, Public Expenditure Management
and Accounting, Social Policy and Administration
International Political Economy, Global Governance, International
Economic Law, Regional Integration (especially, EU and East Asian
Region), Corporate Social Responsibility
Akihiko TAMURA
－
(Legal Approach to Regional Economic Integration）
(The Desirable Form of Legal Protection for Overseas Investments）
Ryoji DOI
Innovation Policy, Competition Policy
Takashi NISHIOKA
Social Insurance
Mieko NISHIMIZU
Takashi HATTORI
Ryozo HAYASHI
Gross National Happiness, World Economy
(The Structural Characteristics of Research and Development by Japanese Companies,
and Issues for the Future）
(Study on Social Security: Development of a Simulation Model for Social Security
Finance）
－
International Relations, Environment, Trade
(The Environment, Trade, and the WTO; Food, Agriculture, and WTO Laws）
Japan-US Relations, Economic Structural Reform
Masato HISATAKE
Trade Policy, Urban and Industrial Agglomerations, Securitization
－
<Building of GCE Model for East Asia that Introduces Economies of Scale>
(Regional Innovation and Corporate Management in East Asia)
Toshihiko FUJII
Corporate Social Responsibility, Product-Related Environment
Regulations
Akira MATSUNAGA
Japanese Economy, International Trade, Economic Policy
Hiromichi MORIYAMA
Policymaking System, Public and Private Partnership (PPP),
Decentralization of Government, Human Resource Management
Kazuo YAGI
Airport Administration and related Affairs in Japan
Naomitsu YASHIRO
International Trade, International Macro Economy
Public Pension Scheme and Private Pension Scheme in Japan and
Nobuhiko YAMAZAKI Abroad, Future Prospects of Pension Program
－
(Productivity of Companies and Industries, and Japan's Economic Growth）
<Research into Measures to Provide Efficient Public Services by Means of Government
and Private-Sector Collaboration, Premised on Small Government>
(Empirical and Internationally Comparative Institutional Analysis of the Forms of
Administrative and Financial Systems for Utilizing Infrastructure Assets to Invigorate
Local Economies in an Era of Decentralization and International Competition: A Study
of the Administrative and Financial Systems and Governance Systems in Operation at
Regional Airports)
(Research on Changes in Multinational Corporations, Trade Structures, and Market
Institutions)
－
Visiting Fellow
Kazuo YAMAGUCHI
Quantitative Methodology (Event-History Models and Models for
Categorical Data); Models of Rational/Purposive Social Action;
Life Course and Occupational Career; Demography of Family and
－
Employment; Contemporary Japanese Society; Social Stratification
and Mobility; Social Network, Exchange, and Diffusion; Epidemiology
of Drug Abuse; Longitudinal Analysis of Drug-Use History
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006　ORGANIZATION
38
Evaluation Committee
Research Institute of Economy, Trade and Industry, IAA
Special Adviser/Adviser
Chairman
President and CRO
Director
Committee on HJTIP*
Editor in Chief
Auditor
Research Counselor
Vice-President
Director of Administration
Director of Policy History Group
Director of Research
Deputy Director of Administration
(General Affairs, General Administration)
Deputy Director of
Policy History Group
Deputy Director of Research
Administration Group
Policy History Group
Research Group
General Administration /
Information Disclosure and
Personal Information Protection
General Affairs
・Editor and Author
・Co-Author
Compilation Management
(Research, General Administration)
Research Management
Research Program Support
Research Distribution
Conference Section /
Intemational Program
Financial / Accounting
Information System
Research Coordinator
・Full-time Fellow
(Senior Fellow, Fellow)
・Faculty Fellow
・Visiting Fellow
・Consulting Fellow
Quantative Analysis & Databases
Public Relations
Online Editorial
*the History of Japan s Trade and Industry Policy (HJTIP)
(As of March 2007)
Research
Counselors
To respond to the expansion of the field of research, the promotion of interdisciplinary approach, and
the internationalization of activities, the positions of Research Counselors were created to strengthen the
guidance capacity of the President to each fellow. During FY 2006, following Research Counselors gave advice
to the President not only for their own areas of expertise listed below, but for cross-disciplinary studies from
the perspective of their own fields.
Name & Affiliation
Field of Expertise
Hiroshi YOSHIKAWA
Professor, Faculty of Economics, Univ. of Tokyo
Macroeconomics
Sadao NAGAOKA
Director and Professor, Institute of Innovation Research,
Hitotsubashi Univ.
Industrial Organization,
Economic Policy
Ryuhei WAKASUGI
Professor, Dept. of Economics, Keio Univ.
International Economics,
Industrial Technology
(As of March 2007)
Editor in Chief, HJTIP
The position of Editor in Chief, HJTIP was created to compile, with analytical and evaluative point of views, the
history of Japan’s trade and industry policy primarily of the 1980s and 1990s.
Name & Affiliation
Konosuke ODAKA
Evaluation
Subcommittee
for RIETI
Field of Expertise
Professor Emeritus, Hosei Univ. and Hitotsubashi Univ.
Japanese Economy, Comparative
Economic Development, Labor
Economics
(As of March 2007)
An incorporated administrative agency sets definite targets and plans for its activities. It is evaluated by a thirdparty organization to ensure the adequacy of these plans and the transparency of its performance. This thirdparty organization is called the Incorporated Administrative Agency Evaluation Committee. A subcommittee
established for each institution undertakes an objective evaluation of the effectiveness and adequacy of the
institution’s operations.
Subcommittee Head:
Toshihiko ONO, President and Chief Executive Officer, Nisshin Steel Co., Ltd.
Subcommittee Members: Naoshi OGASAWARA, Partner, Taiyo Audit Corporation
Yoshiko KOJO, Professor, Graduate School of Arts and Sciences, Univ. of Tokyo
(As of April 2007)
39
Research Institute of Economy, Trade and Industry, IAA
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