2006

CONTENTS
1 MESSAGES FROM THE CHAIRMAN The Research Institute of Economy, Trade and Industry (hereinafter referred to as RIETI), an
AND THE PRESIDENT incorporated administrative agency, was founded in April 2001, at the time of the launch of
2 MAJOR EVENTS OF FISCAL 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/
YEAR 2005 RI, established in April 1987), an internal branch of what was then the Ministry of Interna-
3
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RESEARCH ACTIVITIES
PUBLIC RELATIONS ACTIVITIES tional 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
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FINANCIAL STATEMENTS
PERFORMANCE EVALUATION
FOR FISCAL YEAR 2005 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
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LIST OF FELLOWS
ORGANIZATION 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.
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.

MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
With the end of fiscal 2005, RIETI has completed the five-year period envisaged for achieving its first set of midterm objectives.Throughout the past five years, we have strived to deliver outstanding results in our research activities including the production of more than 280 research papers and organization of more than 45 symposia. These achievements are gradually but steadily drawing public attention both in Japan and abroad, with our website logging more than 650,000 visits in the fiscal 2005.
This annual report, which covers the final year of our first midterm period, focuses on the introduction of 72 newly published research papers and 9 symposia held during the past fiscal year. The key characteristic of RIETI is that it is an institute that fosters active interactions between academia and policymaking authorities. Additionally, study groups and workshops at RIETI serve as opportunities for lively exchange among government officials from different ministries and agencies. Some of the outcomes of these interactions have been reflected in our policy symposia held in fiscal 2005, such as those on Japan's pension system and Japan's financial system. Based on these achievements, the Evaluation Committee for Incorporated Administrative Agencies once again awarded a high rating to our activities in the past fiscal year. We have also received an equally high rating in an overall evaluation of our activities throughout the midterm period. I believe it is our mission to continue to build and strengthen a framework for research activities by further taking advantage of our unique characteristic of being an incorporated administrative agency.
Beginning this fiscal year (fiscal 2006), we will continue to undertake activities in the four 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, and 4) Compilation of the History of Japanese
Trade and Industry Policy Primarily of the 1980s and 1990s, as stipulated in our new midterm objectives. We are committed to working toward these new goals, building on our experience and achievements to date. I would like to call for further cooperation and constructive criticism from all of you.
July 2006
Kozo OIKAWA
Chairman
The final year of RIETI's first five-year plan was just finished. Since I joined RIETI two years ago, my strong hope has been to establish this institute as Japan's intellectual headquarters, through conducting well-designed policy research on key economic issues across the ministerial boundaries and disseminating policy recommendations to the public. This is because the major problems confronting Japan cannot be solved without cross-cutting, across-the-board research undertakings. Take the problem of aging population as an example. Japan’s fastest aging in the world will very rapidly raise our national cost of pension benefits, and medical and care expenditures for the elderly. We will only afford to take care of these expenditures within the overall pie (GNP) of the economy. But how can Japan expand the pie when the young generations who can only produce the pie tends to decline under the rapid aging? This is a policy challenge of vital importance. While containing the ballooning cost of aging within the overall pie as much as possible, we should promote the accumulation of the "health capital" of individuals so as for the elderly not only to reduce the social security cost but also to contribute to expanding the pie through greater participation in the labor force. Even more important is to grow the pie by raising total factor productivity, in addition to increases in the physical and intellectual capitalto-labor ratio. Total factor productivity can be enhanced by "creative destruction," as defined by
Joseph Schumpeter, at firm-level made possible by technological, managerial, and institutional innovation. A key research issue is how such firm-level innovation can lead to innovation at various industry levels and eventually to the macroeconomic level, i.e. the overall pie. Furthermore, how can the interrelationship among international trade, foreign direct investment, and technology transfer be promoted in East Asian economic integration by multinational companies from Japan, the United States, South Korea, Taiwan and so forth? This issue is also associated with what should be the desirable exchange rate regime in East Asia. RIETI finds itself in a very privileged position to carry out such policy research and we will further exploit this privileged position.
July 2006
Masaru YOSHITOMI
President and Chief Research Officer
1

MAJOR EVENTS OF FISCAL YEAR 2005
Launched Policy Analysis Paper (PAP)
Released 6 RIETI series publications
Mr. Kozo OIKAWA became new Chairman of RIETI
Hosted 80 BBL seminars
(Photo: November 17, 2005)
Organized 9 policy symposia
(Photo: February 17, 2006)
Speaker (left): H.E. Aftab SETH (former
Ambassador of India to Japan/Professor and
Director of Global Security Research Institute,
Keio University)
Moderator (right): Mieko NISHIMIZU (CF, RIETI/ former Vice President of World Bank)
"Japan's financial system: Revisiting the relationship between corporations and financial institutions"

RESEARCH ACTIVITIES
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
2 3
Notes: The following pages list main research projects. Fellows' titles are applicable for fiscal year 2005, which ended March 31, 2006
Abbreviation: SF=Senior Fellow / F=Fellow / FF=Faculty Fellow / CF=Consulting Fellow / VF=Visiting Fellow

Ⅰ
Research Projects & Fellows
（Leader/Sub Leader）
-
-
Major Research Results
(Keiichiro KOBAYASHI, F)
< Discussion Paper >
Business cycle accounting for the Japanese economy (Keiichiro KOBAYASHI and Masaru INABA)
Transaction services and asset-price bubbles (Revised) (Keiichiro KOBAYASHI)
Borrowing constraints and protracted recessions (Keiichiro KOBAYASHI and
Masaru INABA)
"Irrational exuberance" in the Pigou cycle under collateral constraints
(Keiichiro KOBAYASHI and Masaru INABA)
The banking crisis and productivity of borrowing firms-Evidence from Japan
(Keiichiro KOBAYASHI and Fumio AKIYOSHI)
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)
< Discussion Paper >
Australia's deflation in the 1890s (Colin McKENZIE)
Roles of regimes under the gold standard and impact on prices
(Shumpei TAKEMORI and Liudmila SAVCHENKO)
(Shumpei TAKEMORI, FF/ Colin McKENZIE, FF)
(Kyoji FUKAO, FF/ Tsutomu MIYAGAWA, FF)
< Discussion Paper >
Productivity and the business cycle in Japan-Evidence from Japanese industry data (Tsutomu MIYAGAWA, Yukie SAKURAGAWA and Miho TAKIZAWA)
M&A activities and the performance of target firms-Comparison of out-in M&As with in-in M&As (Kyoji FUKAO, Hyeog Ug KWON and Miho TAKIZAWA)
Productivity and financing of startups (Tsutomu MIYAGAWA and
Atsushi KAWAKAMI)
The quantitative assessment of organization capital (Tsutomu MIYAGAWA and
Young Gak KIM)
< Discussion Paper >
Econometric analysis of entry and exit by medium- and large-scale stores and the invigoration of city-center districts (Toshiyuki MATSUURA and
Kazuyuki MOTOHASHI)
(Kazuyuki MOTOHASHI, FF)
(Kazuyuki MOTOHASHI, FF)
Interim report is available at http://www.rieti.go.jp/jp/database/d03.html

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
4 5
Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
(Tatsuo HATTA, FF/ Makoto TANAKA, FF)
< Discussion Paper >
Optimal transmission capacity under nodal pricing and incentive regulation for
Transco (Makoto TANAKA)
A spatial equilibrium analysis of transmission charge reform in Japan's electric power industry (Shuichi AKIYAMA and Nobuhiro HOSOE)
Economic analysis of interregional electricity transmission networks in Japan
(Kazunari KAINOU)
Quantitative analysis of the impact of changes in policies and regulations for electricity and town gas supply industries (Kazunari KAINOU)
A simulation analysis of transmission-Constrained oligopoly in the wholesale electricity market (Makoto TANAKA)
(Toshiji KAWAGOE, FF/ Hirokazu TAKIZAWA, F)
< Discussion Paper >
Coordination problem for Leniency programs against international cartels
(Hiroo IWANARI, Toshiji KAWAGOE, Yuji KIMURA, Taisuke MATSUBAE and
Hirokazu TAKIZAWA )
(Nobuo AKAI, FF)
< Discussion Paper >
The governance and management structure of public corporations-Achieving efficient division of roles between the public (national and local government) and private sectors under decentralization (Nobuo AKAI)
ICPA project top page on RIETI website Discussion papers are downloadable at http://www.rieti.go.jp/en/data/index.html

Ⅱ
Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
< Discussion Paper >
Reconsidering the effects of intranational and international R&D spillovers on productivity growth: Firm-level evidence from Japan (Kozo KIYOTA)
(Shujiro URATA, FF/ Kozo KIYOTA, FF)
International intrafirm transfer of management technology by Japanese multinational corporations (Shujiro URATA, Toshiyuki MATSUURA and Yuhong
WEI)
Employment of MNEs in Japan: New evidence (Kozo KIYOTA and Toshiyuki
MATSUURA)
Competition with imports from low- and lower-middle-income countries and its impact on the growth of Japanese companies: Empirical analysis based on microdata of the "basic survey of Japanese business structure and activities" (Keiko ITO)
(Satoshi KUWAHARA, SF）
< Discussion Paper >
Empirical analysis of the trading structure changes in East Asia under the modularization of product architecture (Satoshi KUWAHARA)
(Li-gang LIU, SF)
< Discussion Paper >
The impact of financial services trade liberalization on China (Li-Gang LIU)
(Takatoshi ITO, FF/ Eiji OGAWA, FF)
< Discussion Paper >
Pass-through of exchange rate changes and macroeconomic shocks to domestic inflation in East Asian countries (Takatoshi ITO, Yuri N. SASAKI and
Kiyotaka SATO)
AMU deviation indicator for coordinated exchange rate policies in East Asia and its relation with effective exchange rates (Eiji OGAWA and Junko SHIMIZU)
Exchange rate changes and inflation in post-crisis Asian economies: VAR analysis of the exchange rate pass-through (Takatoshi ITO and Kiyotaka SATO)
The Chinese yuan after the Chinese exchange rate system reform (Eiji OGAWA and
Michiru SAKANE)
On determinants of the yen weight in the implicit basket system in East Asia
(Takatoshi ITO and Keisuke ORII)
Chinese exchange rate regimes and the optimal basket weights for the rest of
East Asia (Etsuro SHIOJI)
Adopting a common currency basket arrangement into the “ASEAN plus three”
(Eiji OGAWA and Kentaro KAWASAKI)
Analysis of China's exchange rate reform (Takatoshi ITO)
(Willem THORBECKE, SF)
< Discussion Paper >
The effect of exchange rate changes on trade in East Asia (Willem THORBECKE)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
6 7
Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
(Akira KOTERA, FF/ Tsuyoshi KAWASE, FF)
< RIETI Economic Policy Analysis Series >
“Implementation system under the WTO dispute settlement mechanism”
(Tsuyoshi KAWASE and Ichiro ARAKI)
< Discussion Paper >
New developments on investor-versus-state arbitration and their implications:
Impact of "legalization" of investment treaties (Akira KOTERA)
The implementation issue under the WTO dispute settlement procedure-Procedural factors and proposals for improvement (Tsuyoshi KAWASE)
Transparency and international investment treaties-Definition and responses
(Akira KOTERA)
< RIETI Policy Symposium >
Prospects for the Doha round-Major challenges in the multilateral trading system and their implications for Japan
(Kazuhito YAMASHITA, SF/ Satoru TAIRA, FF/
Jota ISHIKAWA, FF)
< Discussion Paper >
How effective are emission taxes in an open economy?
(Jota ISHIKAWA and Tomohiro KURODA)
(Kazuhito YAMASHITA, SF)
< Discussion Paper >
Problems in the WTO agriculture agreement and the current state and prospects for agricultural negotiations: The perspective of a participant in the Uruguay round negotiations (Kazuhito YAMASHITA)
(Tsuyoshi KAWASE, FF)
< Discussion Paper >
Complementarity between regional trade agreements and multilateral trade liberalization: Economic consideration and future challenges (Hiroshi MUKUNOKI)
Treatment of technical standards in regional trade agreements-Some lessons for mutual recognition arrangements (Yoshiko NAIKI)
Competition policy and law in regional economic integration (Shingo SERYO )
(Shujiro URATA, FF)
< Discussion Paper >
An analysis of the potential economic effects of bilateral, regional, and multilateral free trade (Kozo KIYOTA)
(Takashi SHIRAISHI, FF/ Takahi TORII, FF)
< Discussion Paper >
Technocracy in Indonesia: A preliminary analysis (Takashi SHIRAISHI)
Changing roles of economic technocrats in the "small country" Malaysia
(Takashi TORII)
RIETI Policy Symposium
“Prospects for the Doha round-Major challenges in the multilateral trading system and their implications for
Japan” (2005/7/22）

Ⅲ
Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
(Takero DOI, FF)
(Toshiaki TACHIBANAKI, FF)
< Discussion Paper >
Simulation analysis of debt management policies to ensure the sustainability of
Japan's public debt (Takero DOI)
Ongoing research project
(Satoshi SHIMIZUTANI, FF/ Hidehiko ICHIMURA,
FF/ Haruko NOGUCHI, FF)
< RIETI Policy Symposium >
Japan's pension system-Evaluating the 2004 reform and establishing clear principles for further reforms
(Mitsuhiro FUKAO, FF/ Daigo NAKATA, F)
< Discussion Paper >
Establishing principles for a more sustainable pension system in Japan, and identifying challenges (Mitsuhiro FUKAO, Yoshihiro KANEKO, Daigo NAKATA and
Ryo HASUMI)
< RIETI Policy Symposium >
Japan's pension system-Evaluating the 2004 reform and establishing clear principles for further reforms
(Yoshio HIGUCHI, FF/ Masako KUROSAWA,
FF/ Daigo NAKATA, F)
< Discussion Paper >
Impact of family-care needs on elderly workers' decisions on retirement (Yoshio
HIGUCHI, Masako KUROSAWA, Tadashi SAKAI, Kazuma SATO and Emiko TAKEISHI)
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)
< RIETI Policy Symposium >
Japan's pension system-Evaluating the 2004 reform and establishing clear principles for further reforms
(Yoshio HIGUCHI, FF/ Toshihiro KODAMA, FF)
< RIETI Economic Policy Analysis Series >
Economic analysis of labor market design: Enhancing the job-matching function
(Yoshio HIGUCHI, Toshihiro KODAMA and Masahiro ABE)
RIETI Policy Symposium
Japan's pension system-Evaluating the 2004 reform and establishing clear principles for further reforms (2005/12/15-16）
RIETI Policy Symposium
Japan's financial system: Revisiting the relationship between corporations and financial institutions (2006/2/16-17)

Ⅳ
Research Projects & Fellows
（Leader/Sub Leader）
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
8 9
Major Research Results
(Tsutomu WATANABE, FF/ Iichiro UESUGI, F)
(Yoshiro TSUTSUI, FF/ Shuichi UEMURA, SF)
< Discussion Paper >
Firm age and the evolution of borrowing costs: Evidence from Japanese small firms
(Koji SAKAI, Iichiro UESUGI and Tsutomu WATANABE)
The role of collateral and personal guarantees in relationship lending: Evidence from Japan's small business loan market (Arito ONO and Iichiro UESUGI)
How are loans by their main bank priced? Bank effects, information and non-price terms of contract (Wako WATANABE)
Bank health and small business investment: Evidence from Japan (Kaoru HOSONO and Akane MASUDA)
Effectiveness of credit guarantees in the Japanese loan market (Iichiro UESUGI,
Koji SAKAI and Guy M. YAMASHIRO)
Does main bank's health matter in firm customers' behavior? A study based on bank-firm matching data of SMEs (Kazuo OGAWA)
Exploring frontiers to expand banks' lending to SMEs (Yasuyoshi MASUDA)
Nonbank financing and the moral hazard of SMEs (Daisuke TSURUTA)
Examining main bank relationships in SME finance-The correlation between efficiency and lending attitude among regional financial institutions
(Kozo HARIMAYA and Takahiro NAGATA)
The role of government-affiliated financial institutions in the startup period
(Tadanobu NEMOTO, Hikaru FUKUNUMA and Wako WATANABE)
Life duration and debt structure of financially distressed SMEs (Peng XU and
Daisuke TSURUTA)
< RIETI Policy Symposium >
Japan's financial system: Revisiting the relationship between corporations and financial institutions
< Discussion Paper >
I nformation verifiability, bank organization, bank competition and bank-borrower relationships (Masaji KANO, Hirofumi UCHIDA, Gregory F. UDELL and Wako WATANABE)
Has the credit crunch occurred in Japan in 1990s? (Daisuke ISHIKAWA and
Yoshiro TSUTSUI)
Do banks reduce lending preemptively in response to capital losses?
(Shinichi NISHIYAMA, Tae OKADA and Wako WATANABE)
SME financing and the choice of lending technology (Hirofumi UCHIDA,
Gregory F. UDELL and Nobuyoshi YAMORI)
Are trade creditors relationship lenders? (Hirofumi UCHIDA, Gregory F. UDELL and Wako WATANABE)
Bank size and lending relationships in Japan (Hirofumi UCHIDA, Gregory F. UDELL and Wako WATANABE)
Empirical determinants of bargaining power (Hirofumi UCHIDA)
Loan officers and relationship lending (Hirofumi UCHIDA, Gregory F. UDELL and
Nobuyoshi YAMORI)
Test of the efficiency structure hypothesis with an application to Japanese major banks
(Yoshiro TSUTSUI, Mitsuhiko SATAKE and Hirofumi UCHIDA)
Efficiency structure hypothesis versus structure-conduct-performance hypothesis revisited (Yoshiro TSUTSUI, Mitsuhiko SATAKE and Hirofumi UCHIDA)
Corporate demand for financial services and issues in SME finance (Nobuyoshi YAMORI)
Characteristics of small- and medium-sized enterprises that have changed their main bank (Masaji KANO)
The governance of regional banks (Shuichi UEMURA and Yoshitsugu WATANABE)
< Policy Discussion Paper >
A study on "Area" designation of cooperative financial institutions (Shozo KANKI)
< RIETI Policy Symposium >
Japan's financial system: Revisiting the relationship between corporations and financial institutions

Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
(Takao KOBAYASHI, FF/ Masato HISATAKE,
SF/ Noriyuki YANAGAWA ,FF)
< Discussion Paper >
Modeling credit risk with long-term and short-term debts (Takao KOBAYASHI and
Ryoichi IKEDA)
Role and challenges of securitization (Noriyuki YANAGAWA)
< RIETIーCARF Policy Symposium >
What financing mechanisms and organizations of business entities best facilitate innovation?
(Hideaki MIYAJIMA, FF/ Yasuhiro ARIKAWA, FF)
< Discussion Paper >
What are the characteristics of companies prone to become a hostile takeover target? (Peng XU)
Economic analysis of M&As: Why has the number of M&As increased?
(Yasuhiro ARIKAWA and Hideaki MIYAJIMA )
Understanding the rapid increase of M&As: Historical background and the economic role of M&As (Hideaki MIYAJIMA)
< RIETIーCEPR Conference >
Corporate finance and governance: Japan-Europe comparisons
(Kotaro TSURU, SF)
< Discussion Paper >
Banking crises, deposit insurance, and market discipline: Lessons from the
Asian crises (Kaoru HOSONO, Hiroko IWAKI and Kotaro TSURU)
(Peng XU, FF)
< Discussion Paper >
Measurement of the impact of buyout funds' initiative in corporate reorganizations on the recovery rate of reorganization claims (Hiroshi MARUYAMA)
Relationships between locally-oriented corporate reconstruction funds and local financial institutions (Junsuke MATSUO)
(Peng XU, FF)
(Kazuhiro TANAKA , FF)
Progress of the research is posted under http://www.rieti.go.jp/users/peng-xu/project/asia/index.html
< Discussion Paper >
Shareholder sovereignty versus employee sovereignty: A dilemma as seen in listed companies in Japan (Kazuhiro TANAKA)
(Takeaki KARIYA, FF/ Fujio YAMAGUCHI, FF)
< Discussion Paper >
Conceptual framework for understanding intangible assets and problems concerning information disclosure (Takeaki KARIYA)
Study on the classification of and reporting methods for intangible assets
(Fujio YAMAGUCHI)
The enterprise value creation management process and intangible assets
-The CERM/ROIAM approach (Takeaki KARIYA)
< RIETI Policy Symposium >
Corporate value creation through the strengthening of intellectual asset management
RIETI-CEPR Conference
Corporate finance and governance: Japan-Europe comparisons（2005/9/14）
RIETI Policy Symposium
Corporate value creation through the strengthening of intellectual asset management（2005/11/30）
RIETI-CARF Policy Symposium
What financing mechanisms and organizations of business entities best facilitate innovation?
(2006/2/28)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
10 11
Ⅴ
Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
(Fumio KODAMA, FF/ Schumpeter TAMADA,
FF/ Akira GOTO, FF)
< RIETI Economic Policy Analysis Series >
“Japan's national innovation system: Rebuilding the engine of growth”
(Akira GOTO and Toshihiro KODAMA)
Chapter 1 “Science linkages in technologies patented in Japan”
Chapter 2 “Analytic framework for university-industry linkages-Development of a realistic technology transfer model”
Chapter 3 “Business-academia-government collaboration in developing human resources in science and technology: Lessons from the case of Britain”
< Discussion Paper >
Characterizing receiver-active national system of innovation (Fumio KODAMA and
Jun SUZUKI)
Indicators for identifying important patents (Akira GOTO, Kiminori GEMBA,
Jun SUZUKI and Schumpeter TAMADA)
Integrating modular products beyond industrial boundary-Analysis of the integration process of a PC system and NC system (Tomoatsu SHIBATA and Fumio KODAMA)
(Takahiro FUJIMOTO, FF/ Kentaro NOBEOKA, FF/
Masahiro OKUNO, FF/ Hirokazu TAKIZAWA, F)
RIETI Economic Policy Analysis Series
“Japan's national innovation system: Rebuilding the engine of growth”
(Akira GOTO and Toshihiro KODAMA)
Chapter 7 “A note on comparative advantage of architectures”
< Discussion Paper >
Product architecture as a coordination system (Masahiro OKUNO and Yasunori WATANABE)
Empirical analyses of product architecture theory and international trade theory
(2006 revised version) (Takashi OSHIKA and Takahiro FUJIMOTO)
Failure to capture value because of commoditization-The case of digital home electronics (Kentaro NOBEOKA, Munehiko ITO and Koichi MORITA)
(Hiroyuki CHUMA, FF)
Increasing complexity of artifacts and the role of product architecture
(Masahiro OKUNO, Hirokazu TAKIZAWA and Yasunori WATANABE)
< RIETI Economic Policy Analysis Series >
“Japan's national innovation system: Rebuilding the engine of growth”
(Akira GOTO and Toshihiro KODAMA)
Chapter 8 “Increasing complexity and limits of organization in the microlithography industry: Implications for Japanese science-based industries”
< Discussion Paper >
Exploring factors behind the weakening competitiveness of Japan's semiconductor production system: From the viewpoint of meta-level integration capability (Hiroyuki CHUMA)
< Discussion Paper >
Business succession and the performance of post-succession SMEs (Takehiko
YASUDA and Nobue KYO)
(Takehiko YASUDA, FF/
Toshiaki TACHIBANAKI, FF)
Corporate governance and employment adjustments at small- and medium-sized enterprises (SMEs) (Takashi SAITO and Toshiaki TACHIBANAKI)
Which entrepreneurs are placed under severe liquidity constraints?-A study based on Japanese entrepreneurship data (Takehiko YASUDA)
Start-up financing and human capital of entrepreneurs (Yuji HONJO)
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)
< RIETI Policy Symposium >
Lifecycle of small and medium enterprises and revitalization of the Japanese economy
（Andrei HAGIU, VF）
(Andrei HAGIU, VF)
Ongoing research project
< RIETI Economic Policy Analysis Series >
“Japan's national innovation system: Rebuilding the engine of growth”
(Akira GOTO and Toshihiro KODAMA)
Chapter 6 “Multisided software platform”

Research Projects & Fellows
（Leader/Sub Leader）
(Tatsuo HATTA, FF/ Masato HISATAKE, SF)
(Susumu SANBONMATSU, CF/ Kazuhiro
ASAKAWA, FF)
Major Research Results
< Discussion Paper >
The impact of raising the maximum floor area ratio on commuting congestion
(Tomoyoshi TERASAKI)
Measurement of the fatigue cost of commuting without making specific assumptions about the utility function (Tatsuo HATTA and Hisaki YAMAGA)
Development of a multi-region CGE model that incorporates monopolistic competition and other factors (Masato HISATAKE and Kiyoshi YAMASAKI)
< Discussion Paper >
Global management and innovation of Japanese companies (Susumu SANBONMATSU)
Overcoming inferior external environments in the pharmaceuticals and biotechnology industries via R&D management (Hiroshi NAKAMURA and Kazuhiro ASAKAWA)
Issues for Japanese firms from metanational management perspective (Kazuhiro
ASAKAWA)
< RIETI Policy Symposium >
Global management and innovation of Japanese enterprises-The strengths of global management and further challenges
(Yutaka KIYOKAWA, SF)
Ongoing Research Project
(Toshihiro KODAMA, FF)
< RIETI Economic Policy Analysis Series >
“Japan's national innovation system: Rebuilding the engine of growth”
(Akira GOTO and Toshihiro KODAMA)
Chapter 4 “The role of product-developing SMEs in industrial cluster formation”
< Discussion Paper >
The role of product-developing SMEs in industrial cluster formation-Based on empirical analysis on TAMA (Technology Advanced Metropolitan Area) (Toshihiro
KODAMA)
(Kazuyuki MOTOHASHI, FF)
“Japan's national innovation system: Rebuilding the engine of growth”
(Akira GOTO and Toshihiro KODAMA)
Chapter 5 “Industry-university collaboration and the R&D network of SMEs in changing Japan's national innovation system”
< Discussion Paper >
IT, enterprise reform and productivity in Chinese manufacturing firms (Kazuyuki
MOTOHASHI)
R&D of multinationals in China: Structure, motivations and regional difference
(Kazuyuki MOTOHASHI)
Licensing or not licensing?: Empirical analysis on strategic use of patent in
Japanese firms (Kazuyuki MOTOHASHI)
RIETI Policy Symposium
Lifecycle of small and medium enterprises and revitalization of the
Japanese economy（2005/6/23）
RIETI Policy Symposium
Global management and innovation of Japanese enterprises-The strengths of global management and further challenges (2006/1/26)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
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Ⅵ
Research Projects & Fellows
（Leader/Sub Leader）
Major Research Results
(Yoshitsugu KANEMOTO, FF)
< RIETI Economic Policy Analysis Series >
“Microeconomic modeling for policy analysis” (Yoshitsugu KANEMOTO, Katsuhito
HASUIKE and Toru FUJIWARA)
< Discussion Paper >
Policy ealuation for oligopolistic markets-A case of wholesale electricity market
(Katsuhito HASUIKE and Yoshitsugu KANEMOTO)
Quantitative policy evaluation of the front runner method household appliance efficiency standards regulations in Japan by cost-benefit analysis (Kazunari KAINOU)
(Hidehiko ICHIMURA, FF)
< Discussion Paper >
New evidences on what job creation and job destruction represent (Carlos
Henrique CORSEUIL and Hidehiko ICHIMURA)
(Office of Quantitative Analysis and Databases)
The details and analysis of a questionnaire survey on the current status of NPOs in
Japan are available in Japanese under the “Research project on NPOs” at http://www.rieti.go.jp/jp/projects/npo/index.html
(Office of Quantitative Analysis and Databases)
Titled “Micro-data quantitative analysis project,” the result of quantitative analysis using micro-data based on corporate and business establishments, such as basic study of corporate activities as well as industrial statistics survey, are posted in
Japanese at http://www.rieti.go.jp/jp/database/d02.html
(Kazunari KAINOU, F)
Titled “Energy consumption statistics by prefecture,” research results are posted in
Japanese at http://www.rieti.go.jp/users/kainou-kazunari/energy/index.html
(Takahiro FUJIMOTO, FF)
FY2003 research project
< RIETI Economic Policy Analysis Series >
Architecture-based analysis of Chinese manufacturing industries
(Takahiro FUJIMOTO and Junjiro SHINTAKU)
(Toshiaki TACHIBANAKI, FF)
FY2004 research project
< RIETI Economic Policy Analysis Series >
Current issues surrounding women at work and in the family: Proposals going beyond this age of decreasing population
(Toshiaki TACHIBANAKI)
(Kazuo YAMAGUCHI, VF)
< Discussion Paper >
True relationship between female labor force participation and total fertility rate:
An analysis of OECD countries (Kazuo YAMAGUCHI)

Major Common Themes / Clusters Equivalence Chart
Major Common Themes & Sub Major Issues Project Leader / Sub Leader
Theme 1: Comprehensive Appraisal of the “Lost Decade” - Gains and Losses during the Economic Stagnation of Japan
The connection between the dynamics of public debt, prices, and exchange rates and the real economy
Keiichiro KOBAYASHI, F
The mechanism for exit from deflation in the late 19th century
Development of a RIETI manufacturing database and study of productivity by industry
Regulation of the retail sector, market competition, and productivity
An international comparison of productivity in East Asia (ICPA)
A scholarly consideration of institutional design in electricity market reform
An experimental economic approach to institutional design
Division of roles between the public and private sectors under a decentralized regime:
Empirical studies on the actual state and roles of local governments' special account budgets and government-affiliated organizations and on the relevant governance mechanism
Theme 2: New Global Imbalances in an Era of Asian Integration
Study group on the internationalization of Japanese business
Empirical analysis of the trading structure changes in East Asia under the modularization of product architecture
Shumpei TAKEMORI, FF
Kyoji FUKAO, FF
Kazuyuki MOTOHASHI, FF
Kazuyuki MOTOHASHI, FF
Tatsuo HATTA, FF
Toshiji KAWAGOE, FF
Nobuo AKAI, FF
Shujiro URATA, FF
Satoshi KUWABARA, SF
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6 Cluster 7 Cluster 8 Cluster 9
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Liberalization of trade in financial services and the effectiveness of capital regulation in China
Li-Gang LIU, SF
The optimum exchange rate regime for East Asia
Quantitative analaysis of the impact of currency revaluation for East Asian economies
Current status of and prospects for the multilateral trade system
Trade and the environment
Takatoshi ITO, FF
Willem THORBECKE, SF
Akira KOTERA, FF
Kazuhito YAMASHITA, SF
Trade and agriculture (food safety)
Legal approaches to regional economic integration
Kazuhito YAMASHITA, SF
Tsuyoshi KAWASE, FF
Evaluation of the quality of FTAs and EPAs Shujiro URATA, FF
Technocracy in the ASEAN democracies Takashi SHIRAISHI, FF
Theme 3: Integrated Approaches to Public Debt and Social Security including Pension, Medical Care, Nursing-Care for the Elderly, and Child-Care
Empirical analysis of the sustainability of public debt and government bond management policies
The optimum national tax-and-social-insurance burden
Toward a comprehensive resolution of social security problems: A New economics of aging
Study on social security system
Employment of older workers in Japan: Analysis on the effectiveness of employment management, employment policies, and pension systems
Takero DOI, FF
Toshiaki TACHIBANAKI, FF
Satoshi SHIMIZUTANI, FF
Mitsuhiro FUKAO, FF
Yoshio HIGUCHI, FF
A study of labor mobility
Theme 4: New Financial Market Architecture and Corporate Governance
A study of corporate finance
A study of regional finance
A study of liquidity and liquidation/securitization
A study of corporate governance
Governance of banks: From a perspective of depositor discipline
Corporate reorganization and revitalization in Japan
Corporate reorganization and revitalization in Asia
Governance of Japanese corporations: Opening its black box
A study on the relationships between intangible assets and corporations' value-creating potential
Theme 5: Exploring New Systems for Innovation
Yoshio HIGUCHI, FF
Tsutomu WATANABE, FF
Yoshiro TSUTSUI, FF
Takao KOBAYASHI, FF
Hideaki MIYAJIMA, FF
Kotaro TSURU, SF
Peng XU, FF
Peng XU, FF
Kazuhiro TANAKA, FF
Takeaki KARIYA, FF
Study on the S-T-I network Fumio KODAMA, FF
A theoretical and empirical study of the industrial economics of product and process architecture Takahiro FUJIMOTO, FF
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Survey and analysis of determinants in the international competitiveness of Japan's semiconductor industry
Developmental life stages of SMEs and venture businesses
China and hi-tech industries: Economic strategies and their implications
Innovation and regulation in multisided markets
East Asian economic integration and Japan's urban agglomeration
Global management and innovation of Japanese companies
Evaluation of developments in intellectual property rights in Japan
Study on industrial clusters focusing on TAMA
Innovation and external partnerships in research and development
Theme 6: Strengthening Database and Model Operations
Policy evaluation simulation models
Hiroyuki CHUMA, FF
Takehiko YASUDA, FF
Andrei HAGIU, VF
Andrei HAGIU, VF
Tatsuo HATTA, FF
Susumu SANBONMATSU, CF
Yutaka KIYOKAWA, SF
Toshihiro KODAMA, FF
Kazuyuki MOTOHASHI, FF
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Yoshitsugu KANEMOTO, FF ○
Improvements of the reduced form approach to policy effect measurement and their applications
Hidehiko ICHIMURA, FF ○
Compilation of data on non-profit corporations
Micro-data development
Office of Quantitative Analysis and Databases
Office of Quantitative Analysis and Databases
Research on development of regional energy statistics and dynamic factor analysis Kazunari KAINOU, F
Cluster １ : Corporate Governance, Organization and Strategy　 Cluster ２ : Regulation, Deregulation and Competitiveness　 Cluster ３ : Employment and Safety Net
Cluster ４ : Innovation and University-Industry Cooperation　 Cluster ５ : International Economic Relations　 Cluster ６ : Asian Economies and Regional Integration
Cluster ７ : Political Economy and Public Policy Process　 Cluster ８ : Macroeconomic Policy and Performance　 Cluster ９ : Quantitative Analysis and Databases
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PUBLIC RELATIONS ACTIVITIES Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
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, holding symposia and issuing publications and periodicals. RIETI emphasizes interaction with its audience, conducting surveys to grasp reader needs, and developing a reader’s column on the website.
Website
The core of RIETI’s public relations activities is its website which is available in Japanese, Chinese and English (http://www.rieti.
go.jp/en/index.html). The number of page views for each language has been growing steadily (see table below). All discussion papers, written by researchers as the result of their research (http://www.
rieti.go.jp/en/publications/act_dp.html), and all policy discussion papers, also written by researchers featuring timely policy issues currently facing Japan (http://www.rieti.go.jp/en/publications/ act_pdp.html) are posted on the website to transmit and provide easy access to in-depth research results. Contents in pages set up by individual researchers and study groups are enhanced, and pooled stories and special feature articles are frequently posted.
Contents such as long-term inter-industry input-output database and foreign direct investment database, the results of consolidating database for policy analysis (http://www.rieti.go.jp/jp/databese/ index.html), and AMU (Asian Monetary Unit) and “AMU deviation indicators of East Asian currencies,” the results of the research project on “Optimal exchange rate regime for East Asia (http://rieti.
go.jp/users/amu/en/index.html),” are quite unique and exclusive to
RIETI . A reader’s column has been set up for the columns on 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 audience, and electronic newsletters such as “RIETI Report"
(in English) and “Dianzixinxi" ( 电子信息 in Chinese) are published to circulate Japanese policy information to RIETI's broad international audience.
Symposia & Seminars
During fiscal 2005, RIETI organized 9 symposia and 80 Brown Bag
Lunch (BBL) seminars which have contributed to increasing RIETI’ s visibility (http://www.rieti.go.jp/en/event/index.html). Policy administrators, academics and business experts were invited to the symposia as speakers and discussants, with a total of over 800 participants as audience. BBL seminar participants numbered over
4,400. The average level of satisfaction shown in questionnaire surveys of participants conducted after each symposium was above 83%, indicating an extremely positive response.
For those who cannot attend these events, output of symposia including recorded video clips, conference reports and handouts are regularly made available on RIETI’s website. Hardcopy symposium proceedings are distributed to related organizations and available to the public on demand.
Publications and Periodicals
In terms of printed publications, “Architecture-based Analysis of Chinese Manufacturing Industries”, “Economic Analysis of
Labor Market Design: Enhancing the Job-Matching Function”,
“Microeconomic Modeling for Policy Analysis”, “Implementation
System Under the WTO Dispute Settlement Mechanism”, “Current
Issues Surrounding Women at Work and in the Family: Proposals
Going Beyond This Age of Decreasing Population”, and “Japan's
National Innovation System: Rebuilding the Engine of Growth” were published as part of the Economic Policy Analysis Series.
Many of these publications received positive publicity and reviews in national newspapers and magazines (http://www.rieti.go.jp/en/ publications/index.html).
RIETI Highlight, a bimonthly public relations newsletter featuring RIETI’s recent events and activities, was launched in
January 2005. Policy Analysis Paper (PAP) is a new initiative for research results dissemination which started in May 2005. PAPs summarize highly specialized research results in easy-to-read, executive-summary format for a non-academic audience including policy-making authorities and business leaders (http://www.
rieti.go.jp/jp/publications/act_pap.html). Both were very well received according to questionnaire surveys and contributed to broadening RIETI’s public relations coverage.
14 15
Symposium Proceedings RIETI Highlight PAP
Abbreviations: SF=Senior Fellow / F=Fellow / FF=Faculty Fellow / CF=Consulting Fellow / VF=Visiting Fellow
Website traffic
(Jan.22, 2002 – Mar.31, 2006)
Japanese ...........................................
1,889,576
English ..................................................
163,364
Chinese .................................................
184,863

PUBLIC RELATIONS ACTIVITIES ① PUBLICATIONS
Economic Policy Analysis Series
The "Economic Policy Analysis Series" targets professionals and experts and focuses on disseminating the results of policy research of high academic standards, which may undergo a referee screening process in their respective disciplines（http://www.rieti.go.jp/en/ publications/act_sr.html）.
ISBN4-13-040224-2
J apan's National
Innovation System:
Rebuilding the Engine of Growth
2006/3
Written and edited by
Akira GOTO and
Toshihiro KODAMA
ISBN4-492-31360-5
Microeconomic
Modeling for Policy
Analysis
2006/3
Written and edited by
Yoshitsugu KANEMOTO,
Katsuhito HASUIKE and
Toru FUJIWARA
ISBN4-492-39447-8
Economic Analysis of
Labor Market Design:
Enhancing the Job-
Matching Function
2005/12
Written and edited by
Yoshio HIGUCHI, Toshihiro
KODAMA and Masahiro
ABE
ISBN4-385-32254-6
Implementation
System Under the WTO
Dispute Settlement
Mechanism
2005/11
Written and edited by
Tsuyoshi KAWASE and Ichiro ARAKI
ISBN4-623-04424-6
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
ISBN4-492-52154-2
Architecture-based
Analysis of Chinese
Manufacturing
Industries
2005/5
Written and edited by
Takahiro FUJIMOTO and Junjiro SHINTAKU
ISBN4-492-21149-7
The Collapse of the 1990s Bubble:
Research on the Non-
Performing Loan
Problem
2005/3
Written and edited by
Michio MURAMATSU
ISBN4-492-39438-9
Empirical Analysis of
IT Innovation: Has IT
Changed Long-term
Japanese Economic
Performance?
2005/3
Written by Kazuyuki
MOTOHASHI
ISBN4-492-39435-4
Fiscal Reform of Japan:
Redesigning the Frame of the State
2004/12
Written and edited by
Masahiko AOKI and
Kotaro TSURU
ISBN4-492-78027-0
Agricultural Policy
Reform for Japan and
Its Consumers: To
Better Steer WTO and
FTA Negotiations
2004/8
Written by Kazuhito
YAMASHITA
ISBN4-492-76147-0
Liberalizing Electricity
Markets: An Economic
Analysis
2004/8
Written and edited by
Tatsuo HATTA and
Makoto TANAKA
ISBN4-492-44311-8
Safeguards under the WTO Agreement:
Issues and Proposals for a More Effective
Mechanism
2004/7
Written and edited by
Tsuyoshi KAWASE and Ichiro ARAKI
ISBN4-492-39411-7
Institutional Reforms for Enterprise-based
Welfare Provisions
2003/8
Written and edited by
Toshiaki TACHIBANAKI and Yoshihiro KANEKO
ISBN4-492-21137-3
Local Governance
Reform in An Era of
Change
2003/3
Written and edited by
Michio MURAMATSU and Hiroaki INATSUGU
ISBN4-492-44300-2
WTO at the Crossroads
-An Analysis of Non-
Trade Issue Linkages
2003/3
Written and edited by
Akira KOTERA
ISBN4-492-21135-7
Transnational Civil
Society
2003/2
Written by Motoko
MEKATA
ISBN4-492-3999-4
The Political Economy of the Japanese
Financial Big Bang:
Institutional Change in Finance and Public
Policy Making
2003/1
Written by Tetsuro TOYA
ISBN4-492-52130-5
The Japanese Firm in
Transition
2002/9
Written and edited by
Hideshi ITOH

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
16 17
Economic Policy Review Series
The "Economic Policy Review Series" mainly targets general readers through a wide dissemination of the results of theoretical and empirical policy research（http://www.rieti.go.jp/en/publications/act_rv.html）.
ISBN4-492-22258-8
Universities that
Outperform Competitors
2005/2
Written and edited by Akihiro
SAWA, Tatsuya TERAZAWA and
Satoshi INOUE
ISBN4-492-68125-6
Pros and Cons of RMB
Revaluation: Interests and
Arguments of China, Japan and the United States
2004/10
Written and edited by C. H.
KWAN and the CASS Institute of
World Economics and Politics
ISBN4-492-21144-6
Revisiting Global Warming
Issues
2004/2
Written and edited by
Akihiro SAWA and Soichiro SEKI
ISBN4-492-22229-4
Civil Mind Civil Power
NPO/NGOs as the Lead
Actor in the Public Sector
2003/5
Written and edited by
Akihiro SAWA, et. al
ISBN4-492-22228-6
Industry-academia
Cooperation: Toward
Institutional Design to
Cultivate Innovative
Power
2003/4
Written and edited by
Yuko HARAYAMA
ISBN4-492-21136-5
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
ISBN4-492-44292-8
A Reintroduction to the
Chinese Economy
2002/10
Written by C.H. KWAN
ISBN4-492-31305-2
Designing Institutions in the Broadband Era
2002/4
Written and edited by
Nobuo IKEDA and
Koichiro HAYASHI
ISBN4-492-39370-6
Modularity: A New
Industrial Architecture
2002/2
Written and edited by
Masahiko AOKI and
Haruhiko ANDOH
ISBN4-492-70076-5
Health Care Reform
2002/2
Written by Koichi KAWABUCHI
ISBN4-492-44278-2
Turning Point of Japan-
China Relations
2001/7
Written and edited by
Naoko MUNAKATA
ISBN4-492-39341-2
Economics of Balance-
Sheet Restructuring
2001/6
Written and edited by
Mitsuhiro FUKAO,
Tatsuya TERAZAWA and
Keiichiro KOBAYASHI

PUBLIC RELATIONS ACTIVITIES ② DISCUSSION PAPERS & POLICY DISCUSSION PAPERS
Discussion Papers
Discussion Papers are research results formed in the shape of treatise which principally went through the internal review process. To stimulate active debates, they are posted on our website（http://www.rieti.go.jp/en/publications/act_dp.html）.
06-J-024 2006/3
06-J-023 2006/3
06-J-022 2006/3
06-J-021 2006/3
06-J-020 2006/3
06-J-019 2006/3
06-J-018 2006/3
06-J-017 2006/3
06-J-016 2006/3
06-J-015 2006/3
06-J-014 2006/3
06-J-013 2006/3
06-J-012 2006/3
06-J-011 2006/3
06-J-010 2006/3
06-J-009 2006/2
M&A activities and the performance of target firms-Comparison of out-in
M&As with in-in M&As
The implementation issue under the WTO dispute settlement procedure-Procedural factors and proposals for improvement
The governance and management structure of public corporations-Achieving efficient division of roles between the public (national and local government) and private sectors under decentralization
The banking crisis and productivity of borrowing firms-Evidence from Japan
Which entrepreneurs are placed under severe liquidity constraints?-A study based on Japanese entrepreneurship data
Overcoming inferior external environments in the pharmaceuticals and biotechnology industries via R&D management
Indicators for identifying important patents
Failure to capture value because of commoditization-The case of digital
home electronics
The enterprise value creation management process and intangible assets
-The CERM/ROIAM approach
Empirical analyses of product architecture theory and international trade theory (2006 revised version)
Coordination problem for Leniency programs against international cartels
The governance of regional banks
Establishing principles for a more sustainable pension system in Japan, and identifying challenges
Measurement of the fatigue cost of commuting without making specific assumptions about the utility function
A simulation analysis of transmission-constrained oligopoly in the wholesale electricity market
Life duration and debt structure of financially distressed SMEs
Kyoji FUKAO (RIETI/Hitotsubashi
University),
Hyeog Ug KWON (Hitotsubashi University),
Miho TAKIZAWA (Hitotsubashi University)
Tsuyoshi KAWASE (RIETI/Osaka
University)
Nobuo AKAI (RIETI/University of Hyogo)
Keiichiro KOBAYASHI (RIETI),
Fumio AKIYOSHI (University of Tokyo)
Takehiko YASUDA (RIETI/Toyo
University)
Hiroshi NAKAMURA (Keio University),
Kazuhiro ASAKAWA (RIETI/Keio
University)
Akira GOTO (RIETI/University of Tokyo),
Kiminori GEMBA (Shibaura Institute of
Technology),
Jun SUZUKI (Shibaura Institute of
Technology),
Schumpeter TAMADA (RIETI/Kwansei
Gakuin University)
Kentaro NOBEOKA (RIETI/Kobe
University),
Munehiko ITO (Kobe University),
Koichi MORITA (Kobe University)
Takeaki KARIYA (RIETI/Meiji University/
Kyoto University)
Takashi OOSHIKA (University of Tokyo),
Takahiro FUJIMOTO (RIETI/University of
Tokyo)
Hiroo IWANARI (RIETI/The Fair Trade
Commission of Japan),
Toshiji KAWAGOE (RIETI/Future
University-Hakodate),
Yuji KIMURA (RIETI),
Taisuke MATSUBAE (Waseda University),
Hirokazu TAKIZAWA (RIETI)
Shuichi UEMURA (RIETI),
Yoshitsugu WATANABE (Keio University)
Mitsuhiro FUKAO (RIETI/Keio University),
Yoshihiro KANEKO (RIETI/National
Institute of Population and Social
Security Research),
Daigo NAKATA (RIETI),
Ryo HASUMI (Keio University)
Tatsuo HATTA (RIETI/International
Christian University),
Hisaki YAMAGA (University of Tsukuba)
Makoto TANAKA (RIETI/National Graduate
Institute for Policy Studies)
Peng XU (RIETI/Hosei University),
Daisuke TSURUTA (National Graduate
Institute for Policy Studies/CRD)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
18 19
06-J-008 2006/2
06-J-007 2006/2
06-J-006 2006/2
06-J-005 2006/2
06-J-004 2006/1
06-J-003 2006/1
06-J-002 2006/1
06-J-001 2006/1
05-J-036 2005/12
05-J-035 2005/12
05-J-034 2005/12
05-J-033 2005/12
05-J-032 2005/11
05-J-031 2005/11
05-J-030 2005/10
05-J-029 2005/9
05-J-028 2005/9
05-J-027 2005/9
05-J-026 2005/9
05-J-025 2005/8
05-J-024 2005/7
05-J-023 2005/6
05-J-022 2005/6
What are the characteristics of companies prone to become a hostile takeover target?
Peng XU (RIETI/Hosei University)
Product architecture as a coordination system
Complementarity between regional trade agreements and multilateral trade liberalization: Economic consideration and future challenges
Characteristics of small- and medium-sized enterprises that have changed their main bank
The role of government-affiliated financial institutions in the startup period
Corporate demand for financial services and issues in SME finance
Examining main bank relationships in SME finance-The correlation between efficiency and lending attitude among regional financial institutions
Efficiency structure hypothesis versus structure-conduct-performance hypothesis, revisited
True relationship between female labor force participation and total fertility rate: An analysis of OECD countries
Nonbank financing and the moral hazard of SMEs
Masahiro OKUNO (RIETI/University of
Tokyo),
Yasunori WATANABE (University of
Tokyo)
Hiroshi MUKUNOKI (Gakushuin
University)
Masaji KANO (Osaka Prefectural
University)
Tadanobu NEMOTO (Chuo University),
Hikaru FUKUNUMA (National Life
Finance Corporation),
Wako WATANABE (Osaka University)
Nobuyoshi YAMORI (Nagoya University)
Kozo HARIMAYA (Sapporo Gakuin
University),
Takahiro NAGATA (Rating and
Investment Information, Inc.)
Yoshiro TSUTSUI (RIETI/Osaka
University),
Mitsuhiko SATAKE (Ryukoku University),
Hirofumi UCHIDA (Wakayama University)
Kazuo YAMAGUCHI (RIETI/University of
Chicago)
Daisuke TSURUTA (National Graduate
Institute for Policy Studies)
Quantitative analysis of the impact of changes in policies and regulations for electricity and town gas supply industries
Economic analysis of interregional electricity transmission networks in Japan
Exploring frontiers to expand banks' lending to SMEs
Does main bank's health matter in firm customers' behavior? A study based on bank-firm matching data of SMEs
Kazunari KAINOU (RIETI)
Kazunari KAINOU (RIETI)
Yasuyoshi MASUDA (Toyo University)
Kazuo OGAWA (Osaka University)
Study on the classification of and reporting methods for intangible assets
Role and challenges of securitization
Fujio YAMAGUCHI (RIETI/Meiji
University)
Noriyuki YANAGAWA (RIETI/University of Tokyo)
Competition with imports from low- and lower-middle-income countries and its impact on the growth of Japanese companies: Empirical analysis based on micro-data of the "basic survey of Japanese business structure and activities"
Keiko ITO (Senshu University)
Test of the efficiency structure hypothesis with an application to
Japanese major banks
The role of product-developing SMEs in industrial cluster formation-Based on empirical analysis on TAMA (Technology Advanced Metropolitan Area)
Global management and innovation of Japanese companies
Policy evaluation for oligopolistic markets-A case of wholesale electricity market
Corporate governance and employment adjustments at small- and medium-sized enterprises (SMEs)
Modeling credit risk with long-term and short-term debts
Yoshiro TSUTSUI (RIETI/Osaka University),
Mitsuhiko SATAKE (Ryukoku University),
Hirofumi UCHIDA (Wakayama
University)
Toshihiro KODAMA (RIETI/Kyoto
University)
Susumu SANBONMATSU (RIETI)
Katsuhito HASUIKE (Nomura Research
Institute),
Yoshitsugu KANEMOTO (RIETI/
University of Tokyo)
Takashi SAITO (Kyoto University),
Toshiaki TACHIBANAKI (RIETI/Kyoto
University)
Takao KOBAYASHI (RIETI/University of
Tokyo),
Ryoichi IKEDA (University of Tokyo)

05-J-021 2005/6
05-J-020 2005/5
05-J-019 2005/5
05-J-018 2005/4
05-J-017 2005/4
06-E-017 2006/3
06-E-016 2006/3
06-E-015 2006/3
06-E-014 2006/3
06-E-013 2006/3
06-E-012 2006/3
06-E-011 2006/3
06-E-010 2006/3
06-E-009 2006/3
06-E-008 2006/3
06-E-007 2006/3
06-E-006 2006/2
06-E-005 2006/2
06-E-004 2006/2
06-E-003 2006/1
06-E-002 2006/1
New developments on investor-versus-state arbitration and their implications:
Impact of "legalization" of investment treaties
Problems in the WTO agriculture agreement and the current state and prospects for agricultural negotiations: The perspective of a participant in the Uruguay round negotiations
Conceptual framework for understanding intangible assets and problems concerning information disclosure
Business succession and the performance of post-succession SMEs
The impact of raising the maximum floor area ratio on commuting congestion
Australia's deflation in the 1890s
Do banks reduce lending preemptively in response to capital losses?
"Irrational exuberance" in the Pigou cycle under collateral constraints
Employment of MNEs in Japan: New evidence
Characterizing receiver-active national system of innovation
Has the credit crunch occurred in Japan in 1990s?
Borrowing constraints and protracted recessions
Transaction services and asset-price bubbles (Revised)
The effect of exchange rate changes on trade in East Asia
Technocracy in Indonesia: A preliminary analysis
How effective are emission taxes in an open economy?
International intrafirm transfer of management technology by
Japanese multinational corporations
R&D of multinationals in China: Structure, motivations and regional difference
Effectiveness of credit guarantees in the Japanese loan market
Information verifiability, bank organization, bank competition and bank-borrower relationships
AMU deviation indicator for coordinated exchange rate policies in
East Asia and its relation with effective exchange rates
Akira KOTERA (RIETI/University of Tokyo)
Kazuhito YAMASHITA (RIETI)
Takeaki KARIYA (RIETI/Meiji University/
Kyoto University)
Takehiko YASUDA (RIETI/Toyo University),
Nobue KYO (Keio University)
Tomoyoshi TERASAKI (Development
Bank of Japan)
Colin McKENZIE (RIETI/Keio University)
Shinichi NISHIYAMA (Bank of Canada),
Tae OKADA (Osaka University),
Wako WATANABE (Tohoku University)
Keiichiro KOBAYASHI (RIETI),
Masaru INABA (University of Tokyo)
Kozo KIYOTA (RIETI/Yokohama National
University),
Toshiyuki MATSUURA (RIETI)
Fumio KODAMA (RIETI/Shibaura
Institute of Technology/University of
Tokyo),
Jun SUZUKI (Shibaura Institute of
Technology/University of Tokyo)
Daisuke ISHIKAWA (Kyoto University),
Yoshiro TSUTSUI (RIETI/Osaka University)
Keiichiro KOBAYASHI (RIETI),
Masaru INABA (University of Tokyo)
Keiichiro KOBAYASHI (RIETI)
Willem THORBECKE (RIETI)
Takashi SHIRAISHI (RIETI/National
Graduate Institute for Policy Studies)
Jota ISHIKAWA (RIETI/Hitotsubashi
University),
Tomohiro KURODA (Nagoya Gakuin
University)
Shujiro URATA (RIETI/Waseda
University),
Toshiyuki MATSUURA (RIETI),
Yuhong WEI (Hitotsubashi University)
Kazuyuki MOTOHASHI (RIETI/University of Tokyo)
Iichiro UESUGI (RIETI),
Koji SAKAI (RIETI/Hitotsubashi University),
Guy M. YAMASHIRO (California State
University)
Masaji KANO (Osaka Prefecture
University),
Hirofumi UCHIDA (Wakayama
University),
Gregory F. UDELL (Indiana University),
Wako WATANABE (Tohoku University)
Eiji OGAWA (RIETI/Hitotsubashi
University),
Junko SHIMIZU (Hitotsubashi University)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
20 21
06-E-001 2006/1
05-E-030 2005/12 Bank health and small business investment: Evidence from Japan
05-E-029 2005/12
05-E-028 2005/11
05-E-027 2005/11
05-E-026 2005/1
05-E-025 2005/9
05-E-024 2005/9
05-E-023 2005/9
05-E-022 2005/7 Productivity and the business cycle in Japan-Evidence from Japanese industry data
05-E-021 2005/6
05-E-020 2005/5
Reconsidering the effects of intranational and international R&D spillovers on productivity growth: Firm-level evidence from Japan
Banking crises, deposit insurance, and market discipline:
Lessons from the Asian crises
How are loans by their main bank priced?
Bank effects, information and non-price terms of contract
The role of collateral and personal guarantees in relationship lending:
Evidence from Japan's small business loan market
Firm age and the evolution of borrowing costs: Evidence from Japanese small firms
IT, enterprise reform and productivity in Chinese manufacturing firms
The impact of financial services trade liberalization on China
Business cycle accounting for the Japanese economy
Optimal transmission capacity under nodal pricing and incentive regulation for
Transco
Pass-through of exchange rate changes and macroeconomic shocks to domestic inflation in East Asian countries
Kozo KIYOTA (RIETI/Yokohama National
University)
Kaoru HOSONO (Gakushuin University),
Akane MASUDA (Gakushuin University)
Kaoru HOSONO (Gakushuin University),
Hiroko IWAKI (Bank of Japan),
Kotaro TSURU (RIETI)
Wako WATANABE (Tohoku University)
Arito ONO (Mizuho Research Institute),
Iichiro UESUGI (RIETI)
Koji SAKAI (Hitotsubashi University),
Iichiro UESUGI (RIETI),
Tsutomu WATANABE (RIETI/Hitotsubashi
University)
Kazuyuki MOTOHASHI (RIETI/
University of Tokyo)
Li-Gang LIU (RIETI)
Keiichiro KOBAYASHI (RIETI),
Masaru INABA (University of Tokyo)
Tsutomu MIYAGAWA (RIETI/Gakushuin
University),
Yukie SAKURAGAWA (Atomi University),
Miho TAKIZAWA (Hitotsubashi
University)
Makoto TANAKA (RIETI/National
Graduate Institute for Policy Studies)
Takatoshi ITO (RIETI/University of Tokyo),
Yuri N. SASAKI (Meiji Gakuin University),
Kiyotaka SATO (Yokohama National
University)
Policy Discussion Papers
Policy Discussion Paper series seeks to present timely research on a wide range of domestic and international policy issues in order to inform and invigorate discussion and debate on current challenges. Abstracts are available in English, full text is in Japanese.
(http://www.rieti.go.jp/en/publications/act_pdp_jp.html)
05-P-006 2006/6 Shozo KANKI (Ryutsu Keizai University)
05-P-004 2005/11
05-P-003 2005/6
05-P-002 2005/5
A study on "Area" designation of cooperative financial institutions
Mindsets of constituent members of an organization in institutional transition:
A case of transition from a national testing and research institute to an incorporated administrative agency
Japan as constituent of East Asia-Past, present and future: Thoughts from the perspective of the transformation of urban agglomerations
Business-academia-government collaboration in developing human resources in science and technology: Lessons from the case of Britain
Masayo FUJIMOTO (Doshisha University)
Masato HISATAKE (RIETI)
Akira GOTO (RIETI/University of Tokyo),
Lee WOOLGAR (University of Tokyo)

PUBLIC RELATIONS ACTIVITIES ③ POLICY ANALYSIS PAPER
Policy Analysis Paper （PAP）
Policy Analysis Paper（PAP） is a new initiative by RIETI for research dissemination. PAPs summarize much-specialized research results in easyto-read, executive-summary format for a non-academic audience including policy-making authorities and business leaders. Available only in
Japanese.
（http://www.rieti.go.jp/jp/publications/act_pap.html）
2005/9 No.7
2005/8 No.6
2005/7 No.5
2005/5 No.4
2005/5 No.3
The impact of financial services trade liberalization on China's banking system
Determinants of low fertility and concrete solutions-In case of married couples
Source of technological innovation-Implications for innovation policy through science linkage analysis
Is Japanese corporate finance inefficient?-Examination based on interest rate for SMEs
Agricultural policy reform that enables both tariff reduction as well as increased food self-sufficiency
Li-Gang LIU (RIETI)
Kazuo YAMAGUCHI (RIETI/University of
Chicago)
Schumpeter TAMADA (RIETI/Kwansei
Gakuin University)
Iichiro UESUGI (RIETI）
Kazuhito YAMASHITA (RIETI）
2005/5 No.2
2005/5 No.1
Two fundamental misunderstangings on the Japanese pension system
Asian integration and its roles in resolving the new global current account imbalances
Masaru YOSHITOMI (RIETI),
Yuji HOSOYA （RIETI）
Masaru YOSHITOMI (RIETI),
Li-Gang LIU（RIETI）

PUBLIC RELATIONS ACTIVITIES ④ SYMPOSIA
Note: Titles and affiliations of participants are current as of the date of the event.
RIETI-CARF Policy Symposium
http://www.rieti.go.jp/en/events/06022701/info.html
Date
Venue
Program
Opening Remarks
February 28, 2006
Economics Research Bldg., University of Tokyo
Kazuo UEDA (Professor, University of Tokyo)
Recapitulative session: Financing mechanisms and organizations of business
entities that best facilitate innovation
Session chair Masato HISATAKE (SF, RIETI)
Session 1: Finance and investment-A theoretical framework
Speaker
Commentator
Takao KOBAYASHI (FF, RIETI/Professor, University of Tokyo)
Masako UEDA (Assistant Professor, University of Wisconsin-Madison)
Session 2: Investors' perspective: Examining their motives
Speaker Jun SAITO (Executive Staff, Nikon Corporation/Research
Commentator
Fellow, RCAST, University of Tokyo)
Ronnie QUEK CHENG CHYE (Partner, Corporate & Commercial,
Allen & Gledhill)
Session 3: Entrepreneurs' perspective: What facilitates their innovation?
Speaker
Commentator
Erik VERMEULEN (Professor, University of Tilburg)
Leo GOLDSCHMIDT (Director, European Corporate Governace
Institute/Honorary Managing Partner, Bank Degroof)
Session 4: What to learn from differences emanating from institutional
divergence among nations?
Speaker
Commentator
Noriyuki YANAGAWA (FF, RIETI/Associate Professor, University of Tokyo)
Wataru TANAKA (Associate Professor, Seikei University)
Q&A
Panel discussion
Panel chair
Panelists
Masato HISATAKE (SF, RIETI)
Noriyuki YANAGAWA (FF, RIETI/Associate Professor, University of Tokyo)
Wataru TANAKA (Associate Professor, Seikei University)
Joseph McCAHERY（Professor, University of Tilburg and
University of Amsterdam）
Closing Remarks
Merritt B. FOX（Professor, Columbia University School of Law）
Masakazu ICHIKAWA (Director, Industrial Finance Division,
METI)
Kozo OIKAWA (Chairman, RIETI)
Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
22 23
RIETI Policy Symposium
http://www.rieti.go.jp/en/events/06021601/info.html
Date
Venue
Program
Symposium moderator
February 16
Opening Remarks
February 16-17, 2006
Shinsei Bank Hall
Takako KIMURA (Staff, RIETI)
Masaru YOSHITOMI (President and CRO, RIETI)
Session 1: The workings of relationship banking-Impact on capital procurement
and corporate activity
Session chair
Speakers
Commentator
Iichiro UESUGI (F, RIETI)
Tsutomu WATANABE (FF, RIETI/Professor, Institute of
Economic Research, Hitotsubashi University)
Hirofumi UCHIDA　(Associate Professor of Banking and
Finance, Faculty of Economics, Wakayama University)
Gregory F. UDELL （Bank One Chair of Banking and Finance at the Kelley School of Business, Indiana University）
Kazuo OGAWA (Professor, Institute of Social and Economic
Research, Osaka University)
Akiyoshi HORIUCHI (Professor, Faculty of Policy Studies, Chuo University)
Q&A
Session 2: What to look for in credit complementarity of SMEs: The role of mortgage, guarantee and public lending facilities
Session chair
Tsutomu WATANABE (FF, RIETI/Professor, Institute of
Economic Research, Hitotsubashi University)
Speakers
Commentator
Arito ONO (Senior Economist, Mizuho Research Institute Ltd.)
Iichiro UESUGI (F, RIETI)
Wako WATANABE (Associate Professor, Graduate School of
Economics and Management, Tohoku University)
Hirohide HIRAI (Director, Corporate Finance and Tax Affairs Division, Business
Environment Department, Small and Medium Enterprise Agency, METI)
Q&A
February 17
Session 3: Is relational banking relevant for corporate revitalization?: Cooperation among and respective roles of financial institutions, revitalization funds and public institutions
Session chair
Sumio HIROSE (Assistant Professor, Faculty of Economics,
Shinshu University)
Speakers
Commentator
Peng XU (FF, RIETI/Professor, Faculty of Economics, Hosei University)
Junsuke MATSUO (Professor, Faculty of Business Administration, St. Andrew's University)
Shoichi TAGASHIRA (Professor, Law School, Sophia University)
Takehiko YASUDA (FF, RIETI/Professor, Faculty of Economics, Toyo University)
Session 4: Is the market for indirect financing competitive? Impact of the restructuring of financial institutions
Session chair
Speakers
Shuichi UEMURA (SF, RIETI)
Yoshiro TSUTSUI (FF, RIETI/Professor, Institute of Social and
Commentator
Economic Research, Osaka University)
Kotaro TSURU (SF, RIETI)
Allen N. BERGER (Senior Economist, Financial Studies Section,
Division of Research and Statistics, The Federal Reserve Board)
Hajime TAKATA (General Manager/Chief Strategist, Fixed
Income Research Dept., Fixed Income Group, Mizuho
Securities Co., Ltd.)
Q&A
Special Speech: Future of the Japanese financial system
Speaker Kazumasa IWATA (Deputy Governor, Bank of Japan)
Panel discussion: A wish list for the Japanese financial system-What is it lacking?
Coordinator Shuichi UEMURA (SF, RIETI)
Discussants
Yuri OKINA (Chief Senior Economist, Economics Department,
The Japan Research Institute, Ltd.)
Naotaka KAWAKAMI (Director for Banks Division II, Supervisory
Bureau, Financial Services Agency)
Closing Remarks
Mark M. SPIEGEL (Vice President, International Research/
Director, Center for Pacific Basin Studies, Federal Reserve Bank of San Francisco)
Yoshihiro FUJII (Senior Staff Writer, Economic News
Department, Editorial Bureau, Nihon Keizai Shimbun, INC.)
Nobuyoshi YAMORI (Professor, Graduate School of Economics,
Nagoya University)
Kozo OIKAWA (Chairman, RIETI)

RIETI Policy Symposium
http://www.rieti.go.jp/en/events/06012601/info.html
Date
Venue
Program
Symposium moderator
Opening remarks
Overview of the main issues
Key note speech
Speaker
January 26, 2006
Shinsei Bank Hall
Susumu SANBONMATSU (CF, RIETI/Researcher, Organization for Small & Medium Enterprises and Regional Innovation,
JAPAN/Visiting Professor, Hitotsubashi University)
Masaru YOSHITOMI (President and CRO, RIETI)
Susumu SANBONMATSU (CF, RIETI/Researcher, Organization for Small & Medium Enterprises and Regional Innovation,
JAPAN/Visiting Professor, Hitotsubashi University)
Yves DOZ (Professor of Global Technology and Innovation,
INSEAD)
Susumu SANBONMATSU (CF, RIETI/Researcher, Organization for Small & Medium Enterprises and Regional Innovation,
JAPAN/Visiting Professor, Hitotsubashi University)
Q&A
Session 1: Issues and response to global innovation for Japanese enterprises
Session chair
& Speaker
Kazuhiro ASAKAWA (FF, RIETI/Professor, Graduate School of
Business Administration, Keio University)
Speakers
Commentators
Marco CASSIS (Corporate Vice President, ST Microelectronics;
President, ST Microelectronics K.K.)
Toyoji YOSHIDA (Member of the Board and General
Manager of Corporate Communication Department, Takeda
Pharmaceutical Co., Ltd.)
Hiroshi NAKAMURA (Professor, Graduate School of Business
Administration, Keio University)
Yasuo SUGIYAMA (Associate Professor, Graduate School of
Economics, Kyoto University)
Susumu SANBONMATSU (CF, RIETI/Researcher, Organization for Small & Medium Enterprises and Regional Innovation,
JAPAN/Visiting Professor, Hitotsubashi University)
Wrap-up
Yves DOZ (Professor of Global Technology and Innovation,
INSEAD)
Kazuhiro ASAKAWA (FF, RIETI/Professor, Graduate School of
Business Administration, Keio University)
Q&A
Session 2: Evolution of production, research and development of Japanese enterprises in
ASEAN (case study of the Thai automobile industry)
Session Chair
Speaker
Masato HISATAKE (SF, RIETI)
Hiromi OHKI (Director, International Economic Research
Commentator
Division, Economic Research Department, Japan External
Trade Organization [JETRO])
Yasuo SUGIYAMA (Associate Professor, Graduate School of
Economics, Kyoto University)
Yves DOZ (Professor of Global Technology and Innovation, INSEAD)
Wrap-up Masato HISATAKE (SF, RIETI)
Q&A
Panel Discussion: The strengths of global management of Japanese enterprises and further challenges
Session Chair Tsuneo YAHAGI (Professor, Graduate School of Business and
Graduate School of Medicine, Keio University)
Presentation of the Proposal
Spekaer & Panelist
Panelists
Wrap-up
Closing Remarks
Susumu SANBONMATSU (CF, RIETI/Researcher, Organization for Small & Medium Enterprises and Regional Innovation,
JAPAN/Visiting Professor, Hitotsubashi University)
Tomohiko FUJIYAMA (General Manager, Corporate Strategy and Research Department, Mitsubishi Corporation)
Toshinori KOBAYASHI (Director, International Economic Affairs
Division, Trade Policy Bureau, METI)
Yves DOZ (Professor of Global Technology and Innovation, INSEAD)
Kazuhiro ASAKAWA (FF, RIETI/Professor, Graduate School of
Business Administration, Keio University)
Tsuneo YAHAGI (Professor, Graduate School of Business and
Graduate School of Medicine, Keio University)
Kozo OIKAWA (Chairman, RIETI)
RIETI Policy Symposium
http://www.rieti.go.jp/en/events/05121501/info.html
Date
Venue
Program
Symposium moderator
December 15
Opening remarks
December 15-16, 2005
Keidanren Kaikan
Daigo NAKATA (F, RIETI)
Masaru YOSHITOMI (President and CRO, RIETI)
Session 1: Evaluating the 2004 reform and identifying the remaining Issues
Session chair Haruko NOGUCHI (FF, RIETI/Associate Professor, Faculty of
Social Science, Toyo Eiwa University)
Speaker
Commentators
Kazutoshi KOSHIRO (Emeritus Professor, Yokohama National University/Vice-
Chair of the Pension Council of the Social Security Deliberation Council,
Ministry of Health, Labour and Welfare (2002-2004))
Olivia S. MITCHELL (Professor of Insurance & Risk Management,
The Wharton School of the University of Pennsylvania）
Ole SETTERGREN （Director of the Department of Pensions,
Swedish Social Insurance Agency）
Q&A
Session 2: Establishing clear principles to promote further pension reforms in Japan
Session chair Masako KUROSAWA (FF, RIETI/Professor, National Graduate
Institute for Policy Studies）
Speaker
Commentators
Mitsuhiro FUKAO (FF, RIETI/Professor, Faculty of Business and
Commerce, Keio University)
Yoshihiro KANEKO (CF, RIETI/Director, Department of Empirical
Social Security Research, National Institute of Population and
Social Security Research)
Olivia S. MITCHELL (Professor of Insurance & Risk Management,
The Wharton School of the University of Pennsylvania）
Ole SETTERGREN （Director of the Department of Pensions, Swedish Social Insurance Agency）
Q&A
Session 3: Learning from pension reforms in foreign countries
Session chair Satoshi SHIMIZUTANI (FF, RIETI/Associate Professor, Institute of Economic Research, Hitotsubashi University)
Speaker
Commentators
Ole SETTERGREN （Director of the Department of Pensions,
Swedish Social Insurance Agency）
Nobuhiko YAMAZAKI (CF, RIETI/Director, Actuarial Affairs Division, Pension
Bureau, Ministry of Health, Labour and Welfare)
John PIGGOTT (Professor, University of New South Wales)
Q&A
Session 4: Impact of the 2004 reform on employment and the reality of the Japanese elderly
Session chair
Speakers
Commentator
Speakers
Yoshihiro KANEKO (CF, RIETI/Director, Department of Empirical Social Security
Research, National Institute of Population and Social Security Research)
Yoshio HIGUCHI (FF, RIETI/Professor, Faculty of Business and Commerce, Keio University)
Masako KUROSAWA (FF, RIETI/Professor, National Graduate Institute for Policy Studies)
Isao OHASHI (Professor, Graduate School of Economics, Hitotsubashi University)
Hidehiko ICHIMURA (FF, RIETI/Professor of Graduate School in
Economics, Graduate School of Public Policy, University of Tokyo)
Commentators
Satoshi SHIMIZUTANI (FF, RIETI/Associate Professor, Institute of Economic Research, Hitotsubashi University)
Haruko NOGUCHI (FF, RIETI/Associate Professor, Faculty of Social Science, Toyo Eiwa University)
Emiko TAKEISHI (Head Senior Analyst, Social Development Research Group, NLI Research Institute)
Olivia S. MITCHELL (Professor of Insurance & Risk Management, The
Wharton School of the University of Pennsylvania）
Q&A
December 16
Recapitulative panel discussion: Establishing new principles for further reforms of the Japanese pension system
Panel Chair
Panelists
Masaru YOSHITOMI (President and CRO, RIETI)
Yoshihiro KANEKO (CF, RIETI/Director, Department of Empirical Social Security
Closing Remarks
Research, National Institute of Population and Social Security Research)
Toshiaki TACHIBANAKI (Research Counselor and FF, RIETI/Pofessor,
Graduate School of Economics and Faculty of Economics, Kyoto University)
Yoshibumi ASO (Professor, Faculty of Law, Keio University)
Olivia S. MITCHELL (Professor of Insurance & Risk Management, The
Wharton School of the University of Pennsylvania）
Nobuhiko YAMAZAKI (CF, RIETI/Director, Actuarial Affairs
Division, Pension Bureau, Ministry of Health, Labour and
Welfare)
Kozo OIKAWA (Chairman, RIETI)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
24 25
RIETI Policy Symposium
http://www.rieti.go.jp/en/events/05113001/info.html
Date
Venue
Program
Symposium moderator
Opening remarks
November 30, 2005
United Nations University
Hidemi KIMURA （F, RIETI）
Masaru YOSHITOMI (President and CRO, RIETI)
Session 1: ERM process, intangible assets and information disclosure
Session chair
Speaker
Yuji HOSOYA (Director of Research, RIETI)
Takeaki KARIYA (FF, RIETI/Professor, Graduate School of Global
Discussant
Speaker
Discussant
Business, Meiji University)
Kazuhiro ASAKAWA (FF, RIETI/Professor of Organizations and
Strategy, Graduate School of Business Administration, Keio
University)
Fujio YAMAGUCHI (FF, RIETI/Professor, Graduate School of
Global Business, Meiji University)
Kentaro NODA (Director, Policy Planning Department,
Environmentally Sustainable Development Group,
Speaker
Discussant
Development Bank of Japan)
Satoru KIMURA (Professor, Graduate School of Global
Business, Meiji University)
Kazuyuki MOTOHASHI (FF, RIETI/Associate Professor, Research
Center for Advanced Science and Technology, University of Tokyo)
Q&A
Session 2: Current status of intellectual asset management and future issues: Cases of Europe and Japan
Session Chair
Key Note Speech 1
Risaburo NEZU (Director, RIETI)
Ahmed BOUNFOUR (Professor, University of Marne-La-Vallee）
Key Note Speech 2
Speakers
Leif EDVINSSON (Adjunct Professor of Intellectual Capital, Lund
University/Inspirator and CEO, Universal Networking Intellectual
Capital [UNIC])
Mart KIVIKAS (Partner & CEO, Wissenskapital Edvinsson & Kivikas
GmbH）
Nobuo TANAKA (Director for Science, Technology and
Industry, OECD)
Panel discussion: Toward strengthening the value creation capabilities of Japanese corporations
Panel chair Nobuo TANAKA (Director for Science, Technology and
Industry, OECD)
Panelists
Closing Remarks
Takeaki KARIYA (FF, RIETI/Professor, Graduate School of Global
Business, Meiji University)
Leif EDVINSSON (Adjunct Professor of Intellectual Capital, Lund
University/Inspirator and CEO, Universal Networking Intellectual
Capital [UNIC])
Mart KIVIKAS (Partner & CEO, Wissenskapital Edvinsson & Kivikas
GmbH）
Takayuki SUMITA (Director, Intellectual Property Policy Office,
Economic and Industrial Policy Bureau, METI )
Masato HASHIKAWA (General Manager, Investor Relations
Department, Shiseido Co.,Ltd)
Kozo OIKAWA (Chairman, RIETI)
http://www.congre.co.jp/jcec2005/
Date
Venue
Program
October 25
Opening Remarks
October 25-26, 2005
Osaka International Convention Center
Yoshihisa AKIYAMA (Chairman, Kansai Economic Federation)
Panel Session: Perspective on Japan-China interdependence-Deepening of exchanges and private sector undertakings at a time of historical turning point
Panelists Dan KONG （Vice-Chairman, President, China International
Trust & Investment Corporation[CITIC]）
Gang FAN（Director, National Economic Research Institute,
China Reform Foundation [NERI-China])
Jun SONG （Chairman, Tsinghua Holdings Co.,Ltd）
Yukio SHOTOKU (Managing Director, Matsushita Electric.
Moderator
Industrial Co., Ltd.)
Yuzo SETO (Adviser, Asahi Breweries, Ltd.)
Osamu WATANABE (Chairman, Japan External Trade
Organization[JETRO])
RIETI Session: East Asian Community and Japan-China relationship
Speakers
Moderator
Masaru YOSHITOMI (President and CRO, RIETI)
Yunling ZHANG (Director, Institute of Asia-Pacific Studies, Chinese
Academy of Social Sciences)
Yasuo TANABE (Vice President, RIETI)
Subcomittee meetings
October 26
Closing Remarks
Speakers
Moderator
Panitchpakdi SUPACHAI (Secretary General, UNCTAD [Former
Director-General, WTO])
Jack MA (Founder and Chief Operating Officer, Alibaba.com)
Yasuhiro GOTO (Editorial Writor, Nihon Keizai Shimbun, Inc.)
Insudtrial Tour
RIETI-CEPR Conference
http://www.rieti.go.jp/en/events/05091301/info.html
Date
Venue
Program
Symposium moderator
Key Note Speech
Key Note Speech
September 14, 2005
Keidanren Kaikan
Kotaro TSURU (SF, RIETI)
Colin MAYER (Peter Moores Professor of Finance, Said Business
School, University of Oxford, UK/Fellow, CEPR)
Hideaki MIYAJIMA (FF, RIETI/Vice Director of Waseda Institute of
Finance, and Professor, Waseda University)
Panel Discussion: Takeover regulation: Lessons from Europe
Panel Chair Jenny CORBETT （Executive Director, Australia-Japan Research
Center, Australian National University/Research Fellow, CEPR）
Panelists
Closing Remarks
Marc GOERGEN (Professor of Finance, Sheffield University
Management School [SUMS])
Satoshi KUSAKABE (Former Director, Industrial Organization
Division, Economic and Industrial Policy Bureau, METI)
Makoto OKITSU (Chairman and Representative Director, Teijin
Ltd.)
Paul SHEARD (Managing Director and Chief Economist Asia,
Lehman Brothers Japan Inc)
Q&A
Kozo OIKAWA (Chairman, RIETI)

RIETI Policy Symposium
http://www.rieti.go.jp/en/events/05072201/info.html
Date
Venue
Program
Symposium moderator
Opening remarks
July 22, 2005
Royal Room, Kasumigaseki Tokyokaikan
Tsuyoshi KAWASE （FF, RIETI/Associate Professor of Law,
Graduate School of Law and Politics, Osaka University）
Masaru YOSHITOMI (President and CRO, RIETI)
Akira KOTERA (FF, RIETI/Professor, Graduate School of Arts and Sciences, University of Tokyo)
Session 1: Strategy and benefits of trade liberalization-Multilateral vs regional
Session chair Fukunari KIMURA (Professor, Faculty of Economics, Keio
University)
Speaker
Discussants
Jota ISHIKAWA (FF, RIETI/Professor, Graduate School of
Economics, Hitotsubashi University)
Hideshi UEDA (Director, Multilateral Trade System
Department, Trade Policy Bureau, METI)
Tsutomu KIKUCHI (Professor of International Political
Economy, School of International Politics, Economics and
Business, Aoyama Gakuin University)
Hiroshi MUKUNOKI (Associate Professor, Faculty of
Economics, Gakushuin University)
Q&A
Session 2: What should be dispute settlement?-On the purpose of WTO dispute settlement mechanism
Session chair Ichiro ARAKI (Professor of Law, International Graduate School of Social Sciences, Yokohama National University)
Speaker
Discussants
Akira KOTERA (FF, RIETI/Professor, Graduate School of Arts and Sciences, University of Tokyo)
Tsuyoshi KAWASE （FF, RIETI/Associate Professor of Law,
Graduate School of Law and Politics, Osaka University）
Kazumochi KOMETANI (Of Counsel, Nishimura & Partners/Professor,
Hosei University Law School)
Taiji FURUSAWA (Professor, Graduate School of Economics,
Hitotsubashi University)
Q&A
Session 3: American trade politics and the Doha round: Can the Twain meet?
Session chair Yoshinobu YAMAMOTO (Professor, School of International
Politics, Economics and Business, Aoyama Gakuin University)
Speaker
Discussants
I. M. DESTLER (Professor, School of Public Affairs, University of
Maryland)
Ichiro ARAKI (Professor of Law, International Graduate School of Social Sciences, Yokohama National University)
Yu UCHIYAMA (Associate Professor, Graduate School of Arts and Sciences, University of Tokyo)
Ken MATSUMOTO (Executive Advisor, The Fair Trade Center/
President, KM International Associates, Inc.)
Q&A
Session 4: WTO and global governance-Overcoming obstacles and confrontation
Session chair Tsuyoshi KAWASE （FF, RIETI/Associate Professor of Law,
Graduate School of Law and Politics, Osaka University）
Speaker
Discussants
Yoshinobu YAMAMOTO (Professor, School of International
Politics, Economics and Business, Aoyama Gakuin University)
Tatsuo AKANEYA (Professor, Graduate School of Humanities and Social Sciences, University of Tsukuba)
Kenzo ABE (Professor, Graduate School of Economics, Osaka University)
Fukunari KIMURA (Professor, Faculty of Economics, Keio
University)
Panel discussion: Prospects for the Doha round and implications for Japan
General Overview
/ Session Chair
Panelists
Akira KOTERA (FF, RIETI/Professor, Graduate School of Arts and Sciences, University of Tokyo)
Jota ISHIKAWA (FF, RIETI/Professor, Graduate School of
Economics, Hitotsubashi University)
Hideshi UEDA (Director, Multilateral Trade System
Department, Trade Policy Bureau, METI)
Closing Remarks
Yoshinobu YAMAMOTO (Professor, School of International
Politics, Economics and Business, Aoyama Gakuin University)
I. M. DESTLER (Professor, School of Public Affairs, University of
Maryland)
Q&A
Sozaburo OKAMATSU (Chairman, RIETI)
RIETI Policy Symposium
http://www.rieti.go.jp/en/events/05062301/info.html
Date
Venue
Program
Symposium moderator
Opening remarks
June 23, 2005
RIETI's seminar room
Iichiro UESUGI (F, RIETI)
Masaru YOSHITOMI (President and CRO, RIETI)
Session 1: Business start-up
Session chair Takehiko YASUDA (FF, RIETI/Professor, Faculty of Economics,
Toyo University)
Speakers
Commentator
Yuji HONJO (Associate Professor, Faculty of Commerce, Chuo
University)
Hideo OKAMURA (Associate Professor, School of Business
Administration, Kwansei Gakuin University)
Hiroyuki OKAMURO (Associate Professor, Graduate School of
Economics, Hitotsubashi University)
Noriyuki TAKAHASHI (Professor, Economic Management
Course, Musashi University)
Q&A
Session 2: Exit and revival
Session chair Hideo OKAMURA (Associate Professor, School of Business
Administration, Kwansei Gakuin University)
Speakers
Commentators
Nobuyuki HARADA (Assistant Professor, Graduate School of
Systems and Information Engineering, University of Tsukuba)
Toshiaki TACHIBANAKI (Research Counselor and FF, RIETI/
Professor, Graduate School of Economics and Faculty of
Economics, Kyoto University)
Eiji TAKEUCHI (Lead Economist, Research Institute, National Life
Finance Corporation)
Shigeru MATSUSHIMA (Professor, Graduate School of Business
Administration, Hosei University)
Q&A
Session 3: Business succession
Session chair Nobuyuki HARADA (Assistant Professor, Graduate School of
Systems and Information Engineering, University of Tsukuba)
Speaker
Commentators
Takehiko YASUDA (FF, RIETI/Professor, Faculty of Economics,
Toyo University)
Kiyohiko SHIBAYAMA (General Manager, Research Institute,
Japan Finance Corporation for Small and Medium Enterprise)
Hirohide HIRAI (Director, Corporate Finance and Tax Affairs
Division, Business Environment Department, Small and
Medium Enterprise Agency)
Q&A
Session 4: Panel discussion
Panel Chair Takehiko YASUDA (FF, RIETI/Professor, Faculty of Economics,
Toyo University)
Panelists
Closing Remarks
Hiroyuki ITAMI (Professor of Management, Graduate School of Commerce and Management, Hitotsubashi University)
Tsuyoshi OKAMOTO (President, Okamoto Glass Co., Ltd.)
Shunji NANJO (Vice Chairman of Editorial Board, Yomiuri
Shimbun)
Harufumi MOCHIZUKI (Director-General, Small and Medium
Enterprise Agency)
Q&A
Sozaburo OKAMATSU (Chairman, RIETI)

PUBLIC RELATIONS ACTIVITIES ⑤ SEMINARS Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
26 27
Note: Titles and affiliations of participants are current as of the date of the event.
BBL seminars
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. 80 BBL seminars were held during
Fiscal 2005, and the total number is over 380 as of March 31, 2006 (http://www.rieti.go.jp/en/events/bbl/index.html).
Date Seminar Title
2005/03/30
Competition and collaboration for innovation: Policy issues for efficient development and diffusion of technical standard
Speakers (unless otherwise noted as commentator)
Sadao NAGAOKA (Professor and Director, Institute of Innovation Research, Hitotsubashi University)
Commentator: Manabu ETO (Director, Industrial Standards Research Office, Industrial Science and
Technology Policy and Environment Bureau, METI)
2006/03/28 The globalisation of value chains-Evidence and policy implications Dirk PILAT (Head, Science and Technology Policy Division, Directorate for Science, Technology and Industry, OECD)
2006/03/24
Knowledge, heavy manufacturing and competitiveness:
The case of the flat panel display industry
Stefanie LENWAY (Dean of the College of Business Administration and Professor of Management,
University of Illinois at Chicago)
Thomas MURTHA (Professor of Management, College of Business Administration, University of Illinois at Chicago)
Commentator: Susumu SANBONMATSU (CF, RIETI/Senior Researcher, Organization for Small &
Medium Enterprises and Regional Innovation, JAPAN/Visiting Professor, Hitotsubashi University)
2006/03/23 The future scope of WTO-Issues as seen in the Sutherland report John H. JACKSON (University Professor, Georgetown University Law Center)
2006/03/22 Current discussion and view of the post-Kyoto regime
Hiroki KUDO (Unit Manager, Climate Change Policy Research Group, Global Environment & Sustainable
Development Unit, The Institute of Energy Economics, Japan)
2006/03/17 Microeconomic modeling
2006/03/08 Prospect of eco-design
Yoshitsugu KANEMOTO (FF, RIETI/Professor of Economics, University of Tokyo)
Manabu AKAIKE (Director, Universal Design Intelligence Inc.)
2006/03/06 Growth potential in the Japanese economy-The age of endogenous innovation Tsutomu MIYAGAWA (FF, RIETI/Professor, Faculty of Economics, Gakushuin University)
2006/03/02
The comparative research on management between Japanese and Chinese enterprises-The theory and case study
Fangqi XU (Post Doctoral Fellow, Graduate School of International Corporate Strategy, Hitotsubashi
University/Director of Institute for Creative Management, Jiangsu Polytechnic University)
2006/02/23 Japan's strategy on science and technology
2006/02/21 Experience of the IRCJ-Rebuilding of market discipline and corporate governance Kazuhiko TOYAMA (COO and Executive Managing Director, Industrial Revitalization Corporation of Japan)
2006/02/13 Development in take-over defense discussions Kenichi FUJINAWA (Managing Partner, Nagashima, Ohno & Tsunematsu)
2006/02/07
International harmonization of intellectual property systems-Trends and challenges ahead
Shouzo UEMURA (Former Deputy Director General of World Intellectual Property Organization [WIPO])
2006/02/02 A Canadian perspective on Northeast Asian relations
2006/02/01
Challenge of Elpida Memory: Considering the future of Japanese semiconductor industry
Joseph CARON (Ambassador of Canada to Japan)
Yukio SAKAMOTO (President & CEO, Elpida Memory, Inc.)
Commentator: Hiroyuki CHUMA (FF, RIETI/Professor, Hitotsubashi University Institute of Innovation Research)
2006/01/31 CxOs' IT literacy
2006/01/23 Lawson's challenges in the face of changes
2006/01/18 U.S. defense transformation and U.S.-Japan alliance
2006/01/13
Outcomes of the WTO Hong Kong ministerial and prospect for the negotiations
Nobuhiko HIDAKA (President, Gartner Japan, Ltd.)
Takeshi NIINAMI (President and CEO, LAWSON, INC.)
Satoshi MORIMOTO (Director of Institute of World Studies and Professor, Takushoku University)
Tsunehiro OGAWA (Director General, Multilateral Trade System Department, Trade Policy Bureau,
METI)
2006/01/12 The East Asia summit and the vision of an East Asian community
Takio YAMADA (Director, Regional Policy Division, Asian and Oceanian Bureau, Ministry of Foreign
Affairs)
2005/12/22 Achievements and evaluation of EXPO 2005 AICHI JAPAN
2005/12/19
The true relationship between female labor-force participation and fertility rate: An analysis of OECD countries
Taizo YAKUSHIJI (Member, Council for Science and Technology Policy/Visiting Professor, Keio
University)
Toshio NAKAMURA (Secretary-General, Japan Association for the 2005 World Exposition)
Kazuo YAMAGUCHI (VF, RIETI/Professor, University of Chicago)
2005/12/08
2005/12/06
New perspective of digital contents industry
How did measures to promote university-industry collaboration impact the academia
Yoichi WADA (President, SQUARE ENIX CO., LTD)
Commentator: Masaki ITOKAWA (Media and Content Industry Division, Commerce and Information
Policy Bureau, METI)
Akira GOTO (FF, RIETI/Professor, Research Center for Advanced Science and Technology, University of
Tokyo)
Commentator: Hironori NAKANISHI (Director, Academia-industry Cooperation Promotion Division,
Industrial Science and Technology and Environment Bureau, METI)
2005/12/05 A challenge to global warming-The Kyoto mechanisms
2005/11/24 Patent policy in the knowledge-based economy: Trends and issues in OECD countries
Makoto KATAGIRI (President & CEO, Natsource Japan Co., Ltd.)
Dominique GUELLEC (Chief Economist, European Patent Office [EPO])
2005/11/17 India and a resurgent Asia
Aftab SETH (Former Ambassador of India to Japan/Professor and Director of Global Security Research
Institute, Keio University)
2005/11/15 East Asia community-building and Japan-U.S. alliance
Takashi SHIRAISHI (FF, RIETI/Vice President and Professor, National Graduate Institute for Policy Studies
[GRIPS])
2005/11/14 Recent activities of ESCO industry in Japan
2005/11/07 Corporate governance in Japan: The role of independent directors
2005/11/01 Public diplomacy in Japan
2005/10/26 Hong Kong ministerial-Entering dangerous waters at the WTO
2005/10/24 Future perspective on EAFTA and China's strategy
2005/10/20 Global management and innovation of Japanese companies
Hidetoshi NAKAGAMI (President, Jyukankyo Research Institute Inc.)
Chiharu MURAKOSHI (Director, Jyukankyo Research Institute Inc.)
Yuzaburo MOGI (Chairman and CEO, Kikkoman Corporation)
Hatsuhisa TAKASHIMA (Special Assistant to the Minister for Foreign Affairs)
Jeremy HOBBS (Executive Director, Oxfam International)
Yunling ZHANG (Director, Institute of Asia-Pacific Studies, Chinese Academy of Social Sciences)
Susumu SANBONMATSU (CF, RIETI/Researcher, Organization for Small & Medium Enterprises and
Regional Innovation, JAPAN/Visiting Professor, Hitotsubashi University)
2005/10/18 Aging society and its consequences
2005/10/17 AMU: Toward coordinated exchange rate policies in East Asia
2005/10/13 Russian energy politics: Focusing on new markets in Asia
2005/10/06 The issue of foreign labor in Japan
2005/10/05 Outlook for the world oil market
2005/09/28
White Paper on the labour economy 2005-Labour policy issues in a society with a declining population
Hans VIJLBRIEF (Director-General Economic Policy, the Ministry of Economic Affairs in the Netherlands)
Eiji OGAWA (FF, RIETI/Professor, Hitotsubashi University, Graduate School of Commerce and Management)
Vladimir IVANOV (Director of Research Institute for Northeast Asia [ERINA])
Yoshihide EZAKI (Director, Policy Planning and Coordination Division, Minisuter's Secretariat, METI)
Ken KOYAMA (Senior Research Fellow and Unit Chief, Energy Strategy Unit, The Institute of Energy
Economics, Japan)
Yoshio ISHIMIZU (CF, RIETI/Principal Labour Economist, Ministry of Health, Labour and Welfare [MHLW])

2005/09/22 Demographic challenge to Japanese economy and society
Kousuke MOTANI (Senior Adviser, Planning Department for Regional Development,
Development Bank of Japan)
2005/09/15
2005/09/07
Revolution in the Japanese corporation-What is the "Japan Cool" model for HR & organizational management?
Shifts in corporate finance and industrial financing
Keizo TANNAWA (Representative Director and President, Watson Wyatt K.K.)
Masakazu ICHIKAWA (Director, Industrial Finance Division, Economic and Industrial
Policy Bureau, METI)
2005/09/06 U.S. tax reform and pension reform
2005/09/05 Institutional investors and corporate governance in Japan
2005/09/01 China's transition from socialism to capitalism: The last lap
2005/08/31
Policy recommendations on “East Asia's role in resolving the new global imbalances”
2005/08/25 The White Paper of MONODZUKURI 2005
Shigeki MORINOBU (President, Policy Research Institute, Ministry of Finance)
Tomomi YANO (Executive Managing Director, Pension Fund Association)
Chi Hung KWAN (Senior Fellow, Nomura Institute of Capital Markets Research)
Masaru YOSHITOMI (President & CRO, RIETI)
2005/08/24
2005/08/23
On the annual report of the Japanese economy and public finance 2004-2005
The political and economic situation in Korea and its implications for Japan
Yasuhiro MAEDA (Director, MONODZUKURI Policy Planning, Manufacturing
Industries Bureau, METI)
Kenji UMETANI (Director for Macroeconomic Analysis, Director-General for
Economic Research, Cabinet Office)
Jaeho YEOM (Professor, Department of Public Administration, College of Political
Science and Economics, Korea University)
Commentator: Masahiko FUJIWARA (Director, Public Relations Office, Minister's
Secretariat, METI)
2005/08/09
U.S.-Japan relationship: Looking through the glasses of the embassy of
Japan and academia
Naoyuki AGAWA (Professor, Keio University/Professor [specially appointed], University of Tokyo)
2005/08/03 Intellectual asset based management and corporate
2005/08/02 The road to the WTO Hong Kong ministerial-A view from Europe
2005/07/28
Is the poison pill good for Japan?-A preliminary analysis of the new takeover guidelines
Takayuki SUMITA (Director, Intellectual Property Policy Office, Economic and Industrial
Policy Bureau, METI)
Tim ABRAHAM (Director International Trade Policy, Department of Trade and Industry, UK)
Curtis MILHAUPT (Professor of Law, Columbia Law School)
2005/07/27
2005/07/21
Japan, East Asia, and the limits to financial regionalism
A new look at American trade politics
William GRIMES (Associate Professor of International Relations, Boston University/Visiting
Scholar, Policy Research Institute, Ministry of Finance)
Commentator: Shigeki KIMURA (Director, Research Division, International Bureau,
Ministry of Finance)
I. M. DESTLER (Professor, School of Public Affairs, University of Maryland)
Commentator: Keisuke SADAMORI (Director, Americas Division, Trade Policy Bureau, METI)
2005/07/19
The trade structure in East Asia: Spiral pattern of development and triangular trade structure (TTS) as a regional manufacturing platform-From White Paper on international economy and trade 2005
2005/07/15
The China challenge-The consequences and opportunities of an emerging China
2005/07/11 Global risk management in a world out of balance
2005/07/04
The political economy of the JapanーMexico EPA:
How does a crossーregional initiative affect the future of Japan's regional integration efforts?
Susumu OKAMOTO (Former Deputy Director, Research and Analysis Division, Trade Policy
Bureau, METI)
Randy SCHRIVER (Partner, Armitage International LLC/Senior Associate, the Center for Strategic and International Studies [CSIS])
Paul LAUDICINA (Managing Director, Global Business Policy Council, A.T. Kearney)
Mireya SOLIS (Assistant Professor, American University)
Commentator: Shujiro URATA (FF, RIETI/Professor of Graduate School of Asia-Pacific
Studies, Waseda University)
2005/06/29 On foreign bond investments as a recycling channel for Japan's current account surplus
2005/06/21
M&A rules in Japan-Proposal toward the establishment of rules for a fair corporate world
Shigeki KIMURA (Director, Office of the Vice Minister of Finance for International Affairs,
Ministry of Finance)
Satoshi KUSAKABE (Director, Industrial Organization Division, Economic and Industrial
Policy Bureau, METI)
2005/06/16 The dilemma of capacity-building at overseas R&D centers
2005/06/08
Governance and development assistance strategy: From the grass-roots reality of South Asia
2005/06/07 On resource circulation in the East Asian region
2005/05/30 The advent of public-private partnerships era in Japan and Asia
2005/05/23
Issues and trends in the enforcement and utilization of patent and IP rights pools by universities, foundations, and other nonーprofit institutions
Yasuo SUGIYAMA (Associate Professor, Graduate School of Economics, Kyoto University)
Commentator: Kazuhiro ASAKAWA (FF, RIETI/Professor, Graduate School of Business
Administration, Keio University)
2005/06/15 The second phase of Asian monetary cooperation and China-Japan relations Tatsuo YAMASAKI (Director, Research Division, International Bureau, Ministry of Finance)
2005/06/14 The challenges of Japanese diplomacy in Asia Hitoshi TANAKA (Deputy Minister for Foreign Affairs, Ministry of Foreign Affairs)
2005/06/10 European integration: What future prospects?
Richard G. WHITMAN (Head, European Programme, Chatham House)
Commentator: Takashi HATTORI (Deputy Director, Europe, Middle East and Africa Division,
Trade Policy Bureau, METI)
Mieko NISHIMIZU (CF, RIETI)
Eiji HOSODA (Professor, Faculty of Economics, Keio University)
Sadahiro SUGITA (Director, Trade Finance and Economic Cooperation Division, METI)
Edward G. POPLAWSKI (Partner, Los Angeles Office, Sidley Austin Brown & Wood LLP)
2005/05/20 Innovation policy: Efficiency of public funding
Toshihiko NOMI (Director General for EXPO General Affairs Department, New Energy and
Industrial Technology Development Organization [NEDO])
2005/05/13 Ten years of the WTO appellate body: An insider's view
Werner ZDOUC (Counsellor, the Appellate Body Secretariat, World Trade Organization)
Commentator: Ichiro ARAKI (Professor of Law, International Graduate School of Social Sciences,
Yokohama National University)
2005/05/12 New trends in development assistance and challenges to the Japan's ODA policy Takehiko NAKAO (Director, Coordination Division, International Bureau, Ministry of Finance)
2005/05/11
Analytical differences in the economics of geography:
The case of the multinational firm
Ram MUDAMBI (Associate Professor and Washburn Research Fellow, The Fox School of Business
& Management, Temple University)
Commentator: Kazuhiro ASAKAWA (FF, RIETI/Professor, Graduate School of Business
Administration, Keio University)
2005/04/27
A Japanese government failure: The law and economics of regulating market failure
Hideo FUKUI (Professor, National Graduate Institute for Policy Studies [GRIPS])
2005/04/21
The competitiveness of Japanese manufacturers in modular products: Limits of combination capabilities of Chinese manufacturers in the digital appliances industry
Kentaro NOBEOKA (FF, RIETI/Professor, Research Institute for Economics & Business
Administration of Kobe University)
2005/04/20 Problems with the government's newly published "basic agricultural policy plan" Kazuhito YAMASHITA (SF, RIETI)
2005/04/15 The international oil market: Impact of China and Russia Antoine HALFF (Director, Global Energy, Eurasia Group)
2005/04/08 Proliferation of FTAs in East Asia
2005/04/04 Risk of offshoring: How to revitalize service industry-Challenge to the OECD ministers
Shujiro URATA (FF, RIETI/Professor, Graduate School of Asia-Pacific Studies, Waseda University)
Nobuo TANAKA (Director for Science, Technology and Industry, OECD)

PUBLIC RELATIONS ACTIVITIES ⑥ METI JOURNAL Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
Note: Titles and affiliations of authors are current as of the publication of the Journal.
METI Journal
METI Journal is a monthly public relations magazine published by the Ministry of Economy, Trade and Industry. RIETI has two regular columns: “Research & Review”, written by our researchers about policy issues from professional perspectives, and “Leading Edge of
Brainstorming”, a wrap-up of one of the BBL seminars.
28 29
Mar.06
Leading Edge of
Brainstorming
Research & Review
Feb.06
Leading Edge of
Brainstorming
Research & Review
Jan.06
Leading Edge of
Brainstorming
Research & Review
Dec.05
Leading Edge of
Brainstorming
Research & Review
Research & Review
Jun.05
Leading Edge of
Brainstorming
Research & Review
May.05
Leading Edge of
Brainstorming
Research & Review
Apr.05
Leading Edge of
Brainstorming
Research & Review
Nov.05
Leading Edge of
Brainstorming
Research & Review
Oct.05
Leading Edge of
Brainstorming
Research & Review
Sep.05
Leading Edge of
Brainstorming
Research & Review
Aug.05
Leading Edge of
Brainstorming
Research & Review
Special Report
Jul.05
Leading Edge of
Brainstorming
New perspective of digital contents industry
Principles and challenges of the public pension system toward reform in 2009
Future perspective on EAFTA and China's strategy
Test of the efficiency structure hypothesis with an application to major
Japanese banks
Outlook for the world oil market
SME financing in Japan: What we have found
Institutional investors and corporate governance in Japan
East Asia's role in resolving the new global imbalances
China's transition from socialism to capitalism: The last lap
Business cycle accounting analysis of the Japanese economy
A new look at American trade politics
Business succession of SMEs
European integration: What future prospects?
The implementation issue under the WTO dispute settlement procedure
Governance and development assistance strategy: From the grass-roots reality of South Asia
The impact of financial services trade liberalization on China
China as an engine of development in Asia and Japan's future
Competitiveness of Japanese companies in products with modular architecture:
Limitation of Chinese digital appliance manufacturers with capabilities to assemble
Innovation and organizational/management reform-The case of the electrical industries
Japan's economic stagnation and policy options: The supply-side view
A general perspective on multi-sided software platforms and the Japanese computer and consumer electronics industries
Shinsei Bank's management reforms
A comparative analysis of job entry methods in Japan, the U.S. and Europe
-Suggestions for Japan
Yoichi WADA (President, SQUARE ENIX CO., LTD)
Daigo NAKATA (F, RIETI)
Yunling ZHANG (Director, Institute of Asia-Pacific Studies,
Chinese Academy of Social Sciences)
Yoshiro TSUTSUI (FF, RIETI/Professor, Osaka University),
Mitsuhiko SATAKE (Professor, Ryukoku University),
Hirofumi UCHIDA (Assistant Professor, Wakayama University)
Ken KOYAMA (Senior Research Fellow and Unit Chief, Institute of
Energy Economics, Japan)
Iichiro UESUGI (F, RIETI)
Tomomi YANO (Executive Managing Director, Pension Fund Association)
Masaru YOSHITOMI (President & CRO, RIETI)
Li-Gang LIU（SF, RIETI）
Willem THORBECKE（SF, RIETI）
Chi Hung KWAN (Senior Fellow, Nomura Institute of Capital Markets Research)
Keiichiro KOBAYASHI (F, RIETI)
I. M. DESTLER (Professor, School of Public Affairs, University of Maryland)
Takehiko YASUDA (FF, RIETI/Professor, Toyo University)
Richard G. WHITMAN (Head, European Programme, Chatham House)
Tsuyoshi KAWASE (FF, RIETI/Assistant Professor, Osaka University）
Mieko NISHIMIZU (CF, RIETI)
Li-Gang LIU（RIETI SF）
Tsutomu MIYAGAWA (FF, RIETI/Professor, Gakushuin University)
Kentaro NOBEOKA (FF, RIETI/Professor, Kobe University)
Susumu SANBONMATSU （SF, RIETI）
Kyoji FUKAO (FF, RIETI/Professor, Institute of Economic Research,
Hitotsubashi University)
Andrei HAGIU（F, RIETI）
Masamoto YASHIRO (Chairman, President and CEO, Shinsei Bank, Ltd.)
Toshihiro KODAMA (SF, RIETI)
Yoshio HIGUCHI (FF, RIETI/Professor, Keio University)
A historical analysis of international agricultural negotiations: Suggestions for
Japanese strategies on trade and development assistance
In what areas of technology is knowledge transfer by means of patent effective?
Yasuo ENDO (Director, Liaison Office in Japan, Food and Agriculture
Organization of the United Nations)
Schumpeter TAMADA (F, RIETI)

FINANCIAL STATEMENTS
Review of Financial Reporting for Fiscal 2005
Assets
(1) Depreciation of tangible and intangible fixed assets
is computed by using the straight-line method.
Estimated useful life of major assets is as follows:
･Building:　　　　　 15years
･Equipment:　　　　4-8 years
･Software:　　　　　5 years
(2)With regard to software, an amount equivalent to
the cost of software acquisition for corporate use is
reported as part of intangible fixed assets.
Liabilities
(1)In accordance with the Incorporated Administrative
Agency Accounting Standards, grants from the
government are recognized as "reserved
grants for operational expenditure" in the Current
Liabilities section upon receipt, which are then
recognized as revenue in accordance with the
progress of specific projects or operations for which
the grants are designated. The amount reported in
the financial statements represents the remaining
outstanding balance-with the amount recognized
as revenue deducted-as of term end.
However, there is no remaining outstanding balance
as of fiscal 2005 term end due to it being the last year
of the first 5-year midterm plan.
With respect to grant revenue recognition, a
percentage-of-completion method based on results
accomplished is adopted except for personnel
expenses and general administration expenses
which adopt a percentage-of-completion method
based on term.
(2)Employee retirement bonuses are to be covered by
grants for operating expenditures and therefore, in
accordance with the Incorporated Administrative
Agency Accounting Standards, provisions for
employee retirement bonuses are not separately
reported. Estimated outstanding obligations for
employee retirement bonuses as of the end of the
reporting term stand at ￥358,135,067.
Equity
Retained earnings as of the end of fiscal 2005, including ￥61,503,396 in total earnings for the year, totaled ￥83,060,642.
Notes for Incorporated Administrative
Agency Accounting Standards
Liabilities
The liabilities section includes two items that represent distinct features of the Incorporated
Administrative Agency Standards. The first of these is "reserved grants for operating expenditure" in current liabilities. This item consists of the amount equivalent to the grants for operating expenditure total at the time it was received, less the amount recognized as income reflecting the current state of operations.
The second of these is "liabilities invested in capital assets" posted in the long-term liabilities section which represents depreciable assets purchased by grants for operating expenditure in line with the assumptions in the midterm business plan.
Equity
According to the Incorporated Administrative
Agency Accounting Standard, the balance between current-term earnings and the carryforward loss can be utilized for the purposes of surplus funds predetermined in the midterm plan with approval from the competent minister. If there is surplus after utilizing for such purposes, the surplus must be treated as reserve.
(March 31, 2005 and 2006)
Assets
Ⅰ Current Assets
Cash and Bank Deposits
Unrealized Income from Research Activities
Inventories
Prepayment
Consumption Tax Refund Unreceivable
Others
Current Assets Total
Ⅱ Fixed Assets
1. Tangible Fixed Assets
Building
Accumulated Allowance for Depreciation
Tools, Appliance, and Equipment
Accumulated Allowance for Depreciation
Tangible Fixed Assets Total
2. Intangible Fixed Assets
Software
Intangible Fixed Assets Total
Fixed Assets Total
Total Assets
Liabilities
Ⅰ Current Liabilities
Reserved Grants for Operating Expenditure
Deposits Received
Account Payable
Accrued Consumption Tax
Accrued Expenses Payable
Current Liabilities Total
Ⅱ Long-term Liabilities
Liabilities Invested in Capital Assets
Reserved Grants
Value of Donated Goods Put in Reserve
Long-term Liabilities Total
Total Liabilities
Equity
Ⅰ Retained Earnings
Reserve
Unappropriated Retained Earnings
(Of which, total current-term earnings)
Retained Earnings Total
Total Equity
Total Liabilities / Equity
FY2004
1,055,715,799
2,033,356
411,054
608,770
943,500
439,174
1,060,151,653
15,101,822
（1,434,672）
18,321,420
（7,744,462）
24,244,108
7,604,890
7,604,890
31,848,998
1,092,000,651
705,599,423
7,653,899
318,613,465
―
6,727,620
1,038,594,407
28,437,464
3,411,534
31,848,998
1,070,443,405
11,489,058
10,068,188
10,068,188
21,557,246
21,557,246
1,092,000,651
FY2005
580,173,941
951,634
320,788
420,620
―
148,318
582,015,301
16,693,328
（2,348,739）
18,321,420
（10,662,593）
22,003,416
10,219,427
10,219,427
32,222,843
614,238,144
―
11,284,619
482,649,149
8,300
5,012,591
498,954,659
30,122,363
2,100,480
32,222,843
531,177,502
21,557,246
61,503,396
61,503,396
83,060,642
83,060,642
614,238,144
(￥)

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
30 31
Review of Financial Reporting for Fiscal 2005
Ordinary Income
(1)In fiscal 2005, ￥2,013,706,037 out of the budgeted
￥2,019,983,000 was recognized as revenue.
(2)During fiscal 2005, RIETI undertook a commissioned
project: "Research project on supply-demand regime of
the international oil market in fiscal 2005 (Research on
the energy policy trends in Greek)" commissioned by
the Institute of Energy Economics, Japan.
Net Income and Total Earnings
Net income and total earnings for fiscal 2005 totaled
￥61,503,396 each as compared to ￥2,020,807,494 in total ordinary income which includes ￥2,013,706,037 in grants for operating expenditures and ￥951,634 in commissions.
Notes for Incorporated Administrative
Agency Accounting Standards
Earnings Statement
Expenses are listed at the top, followed by income. Ordinary expenses include operating expenses and general administrative expenses.
Ordinary income includes, in addition to grant for operating expenditure, commissions and financial revenues.
(Years Ended March 31, 2005 and 2006)
FY2004
Ⅰ Ordinary Expenses
1. Research Expenses
519,725,419 (1)Operating Expenses
(2)Personnel Expenses
(3)Depreciation Expenses
(4)Others
Total
2. General Administrative Expenses
(1)Personnel Expenses
(2)Depreciation Expenses
(3)Others
Total
3. Miscellaneous Loss
Ordinary Expenses Total
366,789,174
247,814
487,054,250
1,373,816,657
137,679,492
3,570,512
289,939,636
431,189,640
119,999
1,805,126,296
Ⅱ Ordinary Income
1. Grant for Operating Expenditure
2. Income from Dissemination of Material
(1)Editing Fees
(2)Document Sales
Total
3. Commissioned Research
4. Offsetting Revenues from Reserved Grants
5. Offsetting Amount Corresponding
to Depreciation of Donated Goods
6. Financial Revenue
Interest Received
7. Miscellaneous Income
Ordinary Income Total
Ⅲ Net Ordinary Income
1,808,851,012
429,209
23,700
452,909
2,033,356
2,507,272
1,311,054
13,055
25,826
1,815,194,484
10,068,188
Ⅳ Net Income
Ⅴ Total Earnings
10,068,188
10,068,188
FY2005
(￥)
655,545,413
352,664,249
734,165
532,286,364
1,541,230,191
134,861,534
5,026,376
278,177,644
418,065,554
8,353
1,959,304,098
2,013,706,037
298,725
38,700
337,425
951,634
4,449,487
1,311,054
796
51,061
2,020,807,494
61,503,396
61,503,396
61,503,396

Notes for Incorporated Administrative Agency
Accounting Standards
Cash Flows
Cash flow statements for incorporated administrative agencies constitutes a part of the financial statements, and as is the case with private-sector companies, these statements are divided into three areas of cash flows such as operational activities (referred to as operating activities in case of private-sector companies), investing activities and financial activities.
Review of Financial Reporting for Fiscal 2005
Costs of Providing Administrative Services
(1) " Expected Retirement Bonus Increases Not Covered
by Reserves" is reported in an amount increased
during each reporting year in the pro forma
employee retirement bonus obligations based on
voluntary retirement.
(2) An amount listed as "Opportunity Costs for
Gratuitous Use of Government Assets,” which
primarily arises from the use of government building
facilities, has been calculated based on rents charged
for the use of nearby buildings.
Notes for Incorporated Administrative
Agency Accounting Standards
Costs of Providing Administrative Services
The Statement of Costs of Providing Administrative
Services is a financial statement required under
Incorporated Administrative Agency Accounting
Standards. Its purpose is to combine in one statement the costs (grant for operating expenditure, etc.) borne by taxpayers for the operation of an incorporated administrative agency for thorough information disclosure, and thus to contribute to the appraisal of the service provided to taxpayers. The specific contents of the costs are as follows:
(1) Expenses listed on the incorporated administra-
tive agency's income statement, less income
other than that based on grant for operating
expenditure
(2) Depreciation amount of depreciable assets that
has been calculated in accordance with
"depreciation accounting procedures for specific
depreciable assets"
(3) Estimated increases in retirement bonuses when
reserves are not recorded, in accordance with
"accounting procedures for retirement benefits"
(4) Opportunity costs arising from use of govern-
ment assets
(Years Ended March 31, 2005 and 2006)
FY2004
Ⅰ Cash Flows from Operational Activities
Expenditures for Purchases of Products
and Services
Personnel Expenses
FY2005
（566,836,867） （588,767,382）
（557,452,156） （543,878,255）
(￥)
Other Operational Expenses （612,807,469） （649,377,382）
Grant for Operating Expenditure
Income from Dissemination of Material
Income from Commissioned Research
Miscellaneous Income
Ⅲ Cash Flows from Financial Activities
1,630,952,000
452,909
84,770,000
25,826
Subtotal
Interest Reserved
（20,895,757） （465,360,177）
12,323 1,528
Net Cash Provided by Operational Activities （20,883,434） （465,358,649）
Ⅱ Cash Flows from Investing Activities
Expenditures for Acquisition
of Tangible Fixed Assets
Net Cash Used in Investing Activities
（2,714,250）
（2,714,250）
（10,183,209）
（10,183,209）
0
1,314,241,000
337,425
2,033,356
51,061
0
Ⅳ Increases in Cash and Cash Equivalents
Ⅴ Cash and Cash Equivalents
at the Beginning of the Year
Ⅵ Cash and Cash Equivalents
at the End of the Year
（23,597,684） （475,541,858）
1,079,313,483
1,055,715,799
1,055,715,799
580,173,941
Statements of Costs of Providing Administrative Services
(Years Ended March 31, 2005 and 2006)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 (￥)
FY2004 FY2005
Ⅰ Operating Expenses 1,802,601,150 1,957,963,182
Expenses Listed on Income Statement
Research Expenses
General Administrative Expenses
Miscellaneous Loss
1,373,816,657
431,189,640
119,999
1,541,230,191
418,065,554
8,353
1,959,304,098 Total
(Deductions)
Income from Dissemination Activities
Income from Commissioned Research
Income from Financial Activities
1,805,126,296
（452,909）
（2,033,356）
（13,055）
Miscellaneous Income （25,826）
Total
Ⅱ Expected Retirement Bonus Increases
Not Covered by Reserves
Ⅲ Opportunity Costs
（2,525,146）
20,755,598
Opportunity Costs for Gratuitous Use
of Government Assets
143,098,200
Ⅳ Total Cost of Providing Administrative Services 1,966,454,948
（337,425）
（951,634）
（796）
（51,061）
（1,340,916）
23,415,406
123,639,600
2,105,018,188
(March 31, 2005 and 2006) (￥)
FY2004 FY2005
Ⅰ Unappropriated Retained Earnings 10,068,188 61,503,396
10,068,188 61,503,396 Total Earnings
Ⅱ Total Appropriations
Reserve 10,068,188 61,503,396

PERFORMANCE EVALUATION FOR FISCAL YEAR 2005 Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
32 33
As an incorporated administrative agency (IAA), RIETI is required to undergo an evaluation of its achievements by a third-party organization (as stipulated by Article 12 of the law concerning the General Rules of Incorporated Administrative Agencies). The
IAAs Evaluation Committee, being set up in the Ministry of Economy, Trade and Industry (METI) to evaluate the activities of IAAs affiliated with the METI, assessed RIETI’s performance for fiscal 2005 as well as for the five-year midterm period, i.e. fiscal 2001-2005.
RIETI was rated A on a scale from AA to D for fiscal 2005. This high grade was given for “having achieved satisfactory in results policy-related research and research dissemination activities by fully taking advantage of the institutional foundation consolidated during previous years, and fulfilling its mission efficiently and energetically in both quality and quantity”.
As for the five-year midterm period (fiscal 2001-2005), RIETI received a very high overall evaluation grade of A+ in the same AA to D scale. The Evaluation Committee noted that “RIETI’s achievements, measured through various outcome/output indicators, have been rated by different stakeholders much higher than anticipated at the early stage in both quality and quantity. RIETI has also delivered good results in the area of economic and industrial policy research by securing and managing human resources in ways that were not possible for the traditional policymaking authorities. RIETI has also been engaged in interdisciplinary policy research that takes into consideration the entire economic system, and has been making policy recommendations on the basis of its policy research”.
Excerpts from the documents of the IAAs Evaluation Committee
Evaluation Item 1
Improvement in the quality of service ［ A +］
RIETI received a very high mark for its appropriate research themesetting which places emphasis on foresight and pays sufficient attention to reflect the needs of policy formulation, and for the high level of its output measured by the number of published discussion papers and publications which exceeded the target, and by the high scores given by outside reviewers for the academic levels of research results and the contents of policy recommendations
Evaluation Item 3
Finance ［ A －］
RIETI has conducted its budget management in an appropriate manner, with no great discrepancies between the budget and account settlement, establishing a system that ensures transparency in the use of funds. Its process of verifying the appropriateness of fund use is also functioning satisfactorily. Recognition of reserved grants for operational expenditure has been efficiently executed according to the plan, largely in line with the budget within an acceptable range.
Evaluation Item 2
Improvement of operational efficiency ［ A －］
RIETI has achieved greater efficiency in the exchange of opinions through the use of electronic bulletin boards, mailing lists, making the most of information systems.
Evaluation Item 4
Other operational management and personnel planning ［ A －］
RIETI has maintained a highly proportion of mobile employment contracts among its employees, while it has put measures in place to foster young recruits, and to secure and revitalize human resources.
Evaluation Item 1
Improvement in the quality of service ［ A +］
RIETI has carried out interdisciplinary policy research taking into consideration the entire economic system, and offered policy recommendations on the basis of such policy research. RIETI’s research quality has continuously improved and has provided theoretical and analytical foundations for a number of policy research areas.
Evaluation Item 3
Finance ［ A －］
Although a discrepancy between the budget and actual expenditure was seen in the early stage of the midterm objectives period, this discrepancy resolved at present. RIETI also maintains the soundness of funds.
Evaluation Item 2
Improvement of operational efficiency ［ A ］
RIETI has created a flexible organizational structure with highly mobile employment contracts by flexibly securing and managing human resources with strong qualifications for immedaite serviceability. It has also made good use of private-sector specialists and broadly recruited diverse human resources in the research support division.
Evaluation Item 4
Improvement in the quality of service ［ A －］
RIETI has achieved the midterm objectives in maintaining a high ratio of personnel hired under mobile employment contracts. It has also appropriately secured human resources necessary for its operations.

LIST OF FELLOWS
Name/Title/
Concurrent post Research Areas
President/Chief Research Officer
Masaru YOSHITOMI
International macroeconomics, International finance,
Regional integration, Currency adjustment
Research Projects at RIETI
< >means the fellow is a leader of the project, ( ) means the fellow is a participant in the project
－
（April 2005-March 2006）
Research Counselor
Hiroshi YOSHIKAWA Macroeconomics, Japanese economy
Tatsuo HATTA Microeconomics, Public economics, Urban economics
Toshiaki TACHIBANAKI Labor economics, Public economics
Akihiko TANAKA
Theoretical and empirical analysis of the global system,
International political relation in modern-day East Asia
－
<A scholarly consideration of institutional design in electricity market reform>
<East Asian economic integration and urban agglomeration in Japan>
<The optimum national tax-and-social-insurance burden>
(Developmental life stages of SMEs and venture businesses)
－
Vice President
Yasuo TANABE
Senior Fellow
Energy policy, Environment policy, Trade policy 　　　　　　　　　　　　　－
Shuichi UEMURA
Yutaka KIYOKAWA
Satoshi KUWABARA
Kotaro TSURU
Masato HISATAKE
Kazunari KAINOU
Hidemi KIMURA
Macroeconomic policy, Financial system, Aging society and decreasing birth rate, Regional economics, Real estate market
Recent trends in intellectual property rights: pro-patent and innovation
East Asian economy, International trade
Corporate governance, Financial system (e.g. banking), Employment system, Political economics
Trade policy, Urban and industrial agglomerations, Securitization
(A study of regional finance)
(A study of corporate governance)
(Corporate reorganization and revitalization in Japan)
<Evaluation of developments in intellectual property rights in Japan>
＜Empirical analysis of the trading structure changes in East Asia under the modularization of product architecture＞
<Governance of banks: From a perspective of depositor discipline>
(A study of liquidity and liquidation/securitization)
(East Asian economic integration and urban agglomeration in Japan)
(Global management and innovation of Japanese companies)
(Governance of Japanese coroporations: Opening its black box)
<Trade and agriculture (food safety)>
<Trade and the environment>
<Liberalization of trade in financial services and the effectiveness of capital regulation in China>
<Quantitative analaysis of the impact of currency revaluation for East Asian economies>
Kazuhito YAMASHITA Agricultural policy
Li-Gang LIU
Willem Hendrik
THORBECKE
International trade, International finance, Decentralization of finance, East Asian economy
Monetary economics, Public finance economics, International economics
Fellow
Iichiro UESUGI
Keiichiro KOBAYASHI
Hirokazu TAKIZAWA
Daigo NAKATA
Monetary policy, Financial market, Macroeconomics, Corporate finance
Econometrics, Institutional design engineering, Sustainable development issues (climate change, energy, food supply, etc.)
Development policy, Development economics, Equal participation of men and women in society, Low fertility issues
Endogenous growth theory, the General equilibrium, Business cycles,
Bad debt problem, Debt-control policy, Macro-political economy
Comparative institutional analysis, Game theory (especially with boundedly rational agents), Experimental game theory
Macroeconomics, Endogenous economic growth, Social security,
Numerical simulation, Sustainable pay-as-you-go pension system,
Gender-equal society
(A study of corporate finance)
(A study of corporate governance)
(Corporate reorganization and revitalization in Japan)
<Research on development of regional energy statistics and dynamic factor analysis>
(A scholarly consideration of institutional design in electricity market reform)
＜Economics of development assistance: Theory and empirical research＞
<The connection between the dynamics of public debt, prices, and exchange rates and the real economy>
(Empirical analysis of the sustainability of public debt and government bond management policies)
(An experimental economic approach to institutional design)
(A theoretical and empirical study of the industrial economics of product and process architecture)
(Study on social security)
(Research on employment of the elderly)
Faculty Fellow
Nobuo AKAI
Kazuhiro ASAKAWA
Yasuhiro ARIKAWA
Jota ISHIKAWA
Hidehiko ICHIMURA
Takatoshi ITO
Shujiro URATA
Public economics, Public finance, Local public finance, Urban economics
International business, Business organization, Innovation, Business alliances, Global R&D management
Theoretical and empirical analysis of corporate finance and corporate governance
International trade theory
Econometrics
Monetary policy, Japanese economy, International finance
International economics, Development economics, Industrial organizational theory
Eiji OGAWA
Masahiro OKUNO
Toshiji KAWAGOE
Inernational currency, International finance
Yoshitsugu KANEMOTO Urban economics, Public economics, Transportation economics
Takeaki KARIYA
Applied microeconomics, Microeconomic theory, Game theory
Financial engineering
Empirical economics, Bounded rationality, Game theory,
Comparative institutional analysis, Mechanism design theory
<Division of roles between the public and private sectors under a decentralized regime:
Empirical studies on the actual state and roles of local governments' special account budgets and government-affiliated organizations and on the relevant governance mechanism>
(Global management and innovation of Japanese companies)
(A study of corporate governance)
(Trade and the environment)
(Current status of and prospects for the multilateral trade system)
<Improvements of the reduced form approach to policy effect measurement and their applications>
(Toward a comprehensive resolution of social security problems: A new economics of aging)
(Development of a RIETI manufacturing database and study of productivity by industry)
<The optimum exchange rate regime for East Asia>
<Study group on the internationalization of Japanese business>
<Evaluation of the quality of FTAs and EPAs>
(The optimum exchange rate regime for East Asia)
(A theoretical and empirical study of the industrial economics of product and process architecture)
<Micro-model for policy evaluation>
<A study on the relationships between intangible assets and corporations' value-creating potential>
<An experimental economic approach to institutional design>

Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
34 35
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 2005-March 2006）
Faculty Fellow
Tsuyoshi KAWASE
Kozo KIYOTA
Akiko KUROSAWA
Toshihiro KODAMA
Fumio KODAMA
International economic law, Trade policy
Applied general equilibrium model and its application,
Effects of bilateral and multilateral FTA,
Intra-firm trade and direct investment & productivity growth,
Spillover of R&D and productivity growth
Laobr economics, Applied econometrics
Industrial clusters focusing on "TAMA" (Technology Advanced
Metropolitan Area) , Labor movement, Japanese industrial policy
Innovation studies, Technology management,
Science and technology policy
<Legal approaches to regional economic integration>
(Current status of and prospects for the multilateral trade system)
(Trade and the environment)(Trade and agriculture [food safety])
(Development of a RIETI manufacturing database and study of productivity by industry)
(Study group on the internationalization of Japanese business)
(Evaluation of the quality of FTAs and EPAs)
(Research on employment of the elderly)
<Study on industrial clusters focusing on TAMA>
(A study of labor mobility)
<Study on the S-T-I network>
Akira KOTERA
Takahiro FUJIMOTO
Tsutomu MIYAGAWA
Hideaki MIYAJIMA
Kazuyuki MOTOHASHI
Takehiko YASUDA
Noriyuki YANAGAWA
International law, International economic law, WTO system
<Current status of and prospects for the multilateral trade system>
(Trade and the environment)
(Evaluation of the quality of FTAs and EPAs)
Akira GOTO
Takao KOBAYASHI
Satoshi SHIMIZUTANI
Peng XU
Takashi SHIRAISHI
Satoru TAIRA
Government and politics in East Asia, International relations
International economic law
Shumpei TAKEMORI International economics
Toshiaki TACHIBANAKI
Kazuhiro TANAKA
Makoto TANAKA
Schumpeter TAMADA
Hiroyuki CHUMA
Yoshiro TSUTSUI
Takero DOI
Takashi TORII
Haruko NOGUCHI
Kentaro NOBEOKA
Tatsuo HATTA
Yoshio HIGUCHI
Kyoji FUKAO
Mitsuhiro FUKAO
Economic analysis of technology innovation and competition policy
Monetary economics
Japanese economy, Macroeconomics, Health economics
Corporate finance, Corporate governance, Law and economics
Labor economics, Public economics
Corporate governance, Leadership
(Study on the S-T-I network)
<A study of liquidity and liquidation/securitization>
<Toward a comprehensive resolution of social security problems: A new economics of aging>
(Development of a RIETI manufacturing database and study of productivity by industry)
<Corporate reorganization and revitalization in Japan>
<Corporate reorganization and revitalization in Asia>
（A study of corporate finance）
(A study of corporate governance)
<Technocracy in the ASEAN democracies>
(Trade and the environment)
<The mechanism for exit from deflation in the late 19th century>
<The optimum national tax-and-social-insurance burden>
(Developmental life stages of SMEs and venture businesses)
<Governance of Japanese corporations: Opening its black box>
Competition & regulation policies in power industry, Industrial organization theory
Science and technology policy, Science linkage of Japanese patents,
University-industry relationships
Labor economics, Theoretical economics, Role of skilled production workers in innovation processes, Sources of international competitiveness in manufacturing industries
Financial & behavioral economics
Public economics, Political economy
Comparative politics in Southeast Asian countries, Political party and electoral system, Islamic politics, Center-local relations
(A scholarly consideration of institutional design in electricity market reform)
(Study on the S-T-I network)
<Survey and analysis of determinants in the international competitiveness of Japan's semiconductor industry>
<A study of regional finance>
<Empirical analysis of the sustainability of public debt and government bond management policies>
<Technocracy in the ASEAN democracies>
Health economics, Applied microeconometrics
Evaluation for new industry, Product development, Corporate strategy, Organization management
Microeconomics, Public economics, Urban economics
Econometrics, Labor economics
(Toward a comprehensive resolution of social security problems: A new economics of aging)
(A theoretical and empirical study of the industrial economics of product and process architecture)
<A scholarly consideration of institutional design in electricity market reform>
<East Asian economic integration and urban agglomeration in Japan>
<Research on employment of the elderly>
<A study of labor mobility>
(Study on social security)
International economics, Macroeconomics, Economic analysis of direct investment
<Development of a RIETI manufacturing database and study of productivity by industry>
(A study of corporate governance)
（Study group on the internationalization of Japanese business）
International finance theory, Finance theory, Corporate governance <Study on social security>
Technology and production management, Evolution of manufacturing system, Humanization of assembly operations,
Dynamics and inter-industrial comparison
<A theoretical and empirical study of the industrial economics of product and process architecture>
Analysis of corporate behavior and industry structure,
Asian economy
(Development of a RIETI manufacturing database and study of productivity by industry)
Economic history of Japan, Corporate finance, Corporate governance <A study of corporate governance>
Applied microeconomics, Economic statistics, Econometrics,
International comparison of productivity, Economic analysis of information technology, Innovation and growth of economy,
Innovation system theory, Industrial input-output analysis
<Regulation of the retail sector, market competition, and productivity>
<An international comparison of productivity in East Asia>
<Innovation and external partnerships in research and development>
(Study on the S-T-I network)
Analysis of decisive factors for firm-creation and results in the SME sector
Contract theory, Financial contract, Economic analysis of laws,
Economics of liquidity, Game industry
<Developmental life stages of SMEs and venture businesses>
(A study of corporate governance)
(Corporate reorganization and revitalization in Japan)
(A study of liquidity and liquidation/securitization)
(The connection between the dynamics of public debt, prices, and exchange rates and the real economy)(A study of corporate governance)
(Corporate reorganization and revitalization in Japan)
（A theoretical and empirical study of the industrial economics of product and process architecture)
Fujio YAMAGUCHI
Research on intangible assets and format for performance evaluation and its disclosure for corporations, Performance evaluation of NPOs
(A study on the relationships between intangible assets and corporations' valuecreating potential)

Name/Title/
Concurrent post
Faculty Fellow
Tsutomu WATANABE
Colin MaCKENZIE
Research Areas
Monetary policy under low inflation, Liquidity trap,
Currency composition of foreign debts, Impacts of fiscal policy
Econometric modelling, Finance
Research Projects at RIETI
< >means the fellow is a leader of the project, ( ) means the fellow is a participant in the project （April 2005-March 2006）
<A study of corporate finance>
（The connection between the dynamics of public debt, prices, and exchange rates and the real economy）
(The mechanism for exit from deflation in the late 19th century)
Consulting Fellow
Yoshiaki ISHII
SME and venture business policy, Industrial organization,
Innovation policy
(Developmental life stages of SMEs and venture businesses)
Hironori ISHIZAKA
Yoshio ISHIMIZU
Gakuji ITO
Koji ITO
Hiroo IWANARI
Junji UEDA
Asako UENO
Yoshihiro KANEKO
Shinji KINJO
Akira KAWAMOTO
Non-performing loan problems, Insolvency law, Restructuring,
Risk management, Law and economics, Legal philosophy
Social policy, Population theory
(Corporate reorganization and revitalization in Japan)
(Corporate reorganization and revitalization in Asia)
(Study on social security)
New technology innovation system for reinforcing competitiveness (Study on the S-T-I network)
International finance, Trade (FTA), Econometrics
(Quantitative analaysis of the impact of currency revaluation for East Asian economies)
(The optimum exchange rate regime for East Asia)
Airline industry, Bidding system
Fiscal science, Public debt, Macro economic policy
Trade policy (Regional economic integration)
Pension system, Corporate pension, Medical economics
Application of econometrics to policy evaluation
Social insurance, Fianancial Issues, Structural reform
China's economic reform, Regional integration in Asia, Yen bloc
(An experimental economic approach to institutional design)
(The connection between the dynamics of public debt, prices, and exchange rates and the real economy)
(The implementation issue in the WTO dispute settlement mechanism)
(Study on social security)
(Improvements of the reduced form approach to policy effect measurement and their applications)
(A scholarly consideration of institutional design in electricity market reform)
(Study on the S-T-I network)
－ C.H. KWAN
Takashi KIHARA
Development assistance, International organization, Development economics, International financing, International economics
(The connection between the dynamics of public debt, prices, and exchange rates and the real economy)
Atsuo KURODA
Kazuhiko ODAKI
Hirokazu KOBAYASHI
Ichiro SAKATA
Industries and Economies of China and Asia, Strategy for Asia for Japanese Corporates 　　　　　　　　　　　　　－
Human resource, Labor market, Cporporate Governance (A study of corporate governance)
Trade policy (WTO, FTA), Regional integration
Regional cluster, Innovation policy, Tax system, Regional economics
(Current status of and prospects for the multilateral trade system)
(Study on industrial clusters focusing on TAMA)
(Innovation and external partnerships in research and development)
Susumu SANBONMATSU
Shigeaki SHIRAISHI
Shuichi SUGAHISA
Asian economy, Corporate management
International economics, Energy, Public policy
Japanese corporate governance
<Global management and innovation of Japanese companies>
(A study of corporate governance)
(Study group on the internationalization of Japanese business)
(A study of corporate governance)
Rusuke TAKASHIMA
Soft infrastructure of Chinese economy (e.g. legal system, financial system, logistics, energy supply), Chinese economic strategy for East
Asia
－
Yasushi TAGUCHI
Shigeaki TANAKA
Akihiko TAMURA
Regional innovation systems
Japan-China relations, Security issues
International political economy, Global governance, International economic law, Regional integration (especially, EU and East Asian region), Corporate social responsibility
(Study on industrial clusters focusing on TAMA)
－
(Legal approaches to regional economic integration)
Yasuhisa NAKAO
Takashi NISHIOKA
Mieko NISHIMIZU
Michio HASHIMOTO
US politics and economics
Social insurance
Gross national happiness, World economy
Energy policy (Energy security and market liberalization, International energy policy trends and Asia wide energy cooperation)
－
(Study on social security)
－
(A scholarly consideration of institutional design in electricity market reform)
Takashi HATTORI
Ryozo HAYASHI
International relations, Environment, Trade
Japan-US relations, Economic structural reform
(Trade and the environment)
－
Toshihiko FUJII
Eiichi HONMA
Shuji MIYAZAKI
Masayuki MORIKAWA
Corporate social responsibility, Product-related environment regulations
International tax policy, Outward foreign direct investment
International politics and economics
Economic policy, Industrial organization, Labor economics
(A study on the relationships between intangible assets and corporations' value-creating potential)
(Study group on the internationalization of Japanese business)
(Evaluation of the quality of FTAs and EPAs)
(Toward a comprehensive resolution of social security problems: A new economics of aging)
(Study on social security)
(Research on employment of the elderly)
Kiyoshi MORI
Yuuko YASUNAGA
Nobuhiko YAMAZAKI
Political, economic, and energy situation analysis in Europe,
Middle East, Africa, and former Soviet Union
Determinants of the competitiveness of the semiconductor industry;
Innovation creation through the promotion of cross-domain fusion;
Technological structure; Industrial structure; Policies that promote innovation creation through an integrated market structure; Using the technological roadmap for radical innovation
Public pension scheme and private pension scheme in Japan and abroad, Future prospects of pension program
－
(Survey and analysis of determinants in the international competitiveness of Japan's semiconductor industry)
(Study on social security)
Visiting Fellow
Kazuo YAMAGUCHI
Andrei HAGIU
Gregory JACKSON
Methods and models for quantitative data analysis (event history analysis, categorical data analysis), Models of purposive social action
Industrial organization and applied theory; Behavioral economics; Law and economics; International trade and finance; Corporate finance
Corporate governance, Economic sociology, Industrial relations
＜Research on the lowering of fertility rate-Women's employment and their career formation＞
<Innovation and regulation in multisided markets>
<China and hi-tech industries: Economic strategies and their implications>
(A study of corporate governance)

ORGANIZATION Research Institute of Economy, Trade and Industry, IAA ANNUAL REPORT 2006
Director
Auditor
Director of Administration
Deputy Director of Administration
Administration Group
General Administration / Information Disclosure
General Affairs
Financial / Accounting
Information System
Data Administration
Research Institute of Economy, Trade and Industry, IAA
Chairman
President and CRO
Research Counselor
Vice-President
Director of Research
Deputy Director of Research
Research Group
Research Management
Research Program Support
Public Relations and Planning
Online Editorial
Conference Management,
International Program
・Resident Fellow
(Senior Fellow, Fellow)
・Faculty Fellow
・Consulting Fellow
・Visiting Fellow
Quantitative Analysis & Databases
36 37
(As of March 2006)
To respond to the expansion of the field of research, the promotion of interdisciplinary approach, and the internationalization of activities, the positions of Research Counselor was created to strengthen the guidance capacity of the President to each fellow. During fiscal 2005, the 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.
Research Counselor
Hiroshi YOSHIKAWA
Tatsuo HATTA
Toshiaki TACHIBANAKI
Akihiko TANAKA
Professor, Faculty of Economics, University of Tokyo
Professor, Division of International Studies,
International Christian University
Professor, Graduate School of Economics/Faculty of
Economics, Kyoto University
Director, Institute of Oriental Culture, University of Tokyo
Field of Expertise
Macroeconomics
Microeconomics
Labor economics,
Public economics
International relations,
International politics
(As of March 2006)
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
Paul SHEARD, Chief Economist for Asia, Lehman Brothers Japan
Yuko FUJIGAKI, Associate Professor, Graduate School of Arts and Sciences, University of Tokyo
(As of July 2006)

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