Journal of Asian Public Policy

ISSN: 1751-6234 (Print) 1751-6242 (Online) Journal homepage: https://www.tandfonline.com/loi/rapp20

Technological innovation and building a ‘super

smart’ society: Japan’s vision of society 5.0

Carin Holroyd

To cite this article: Carin Holroyd (2020): Technological innovation and building a
‘super smart’ society: Japan’s vision of society 5.0, Journal of Asian Public Policy, DOI:
10.1080/17516234.2020.1749340

To link to this article: https://doi.org/10.1080/17516234.2020.1749340

Published online: 29 Apr 2020.

Submit your article to this journal

View related articles

View Crossmark data

Full Terms & Conditions of access and use can be found at

https://www.tandfonline.com/action/journalInformation?journalCode=rapp20
JOURNAL OF ASIAN PUBLIC POLICY
https://doi.org/10.1080/17516234.2020.1749340

RESEARCH ARTICLE

Technological innovation and building a ‘super smart’

society: Japan’s vision of society 5.0
Carin Holroyd
Department of Political Studies, University of Saskatchewan, Saskatoon, Canada

ABSTRACT ARTICLE HISTORY

The Government of Japan is pursuing an ambitious policy pro- Received 12 November 2019
gramme, Society 5.0, designed to respond to the formidable eco- Accepted 27 March 2020
nomic and social challenges facing Japan and the world, capitalize KEYWORDS
on Japanese technological sophistication and commercialization Japan; society 5.0;
abilities, and provide a coordinated, forward-looking strategy that innovation policy; ‘super-
could ensure Japan’s leadership in the technological revolution. smart society; ’ Science and
Society 5.0 is the label attached to a vision of ‘whole of government, Technology Basic Plan
business and academia’ plan to integrate new technological sys-
tems across various fields to the benefit of humanity. This paper
explores the conceptual background, rationale, policies and pro-
grammes Japan has enacted in pursuit of this vision.

We aim at creating a society where we can resolve various social challenges by incorporating
the innovations of the fourth industrial revolution (e.g., IoT, big data, artificial intelligence (AI),
robot, and the sharing economy) into every industry and social life. By doing so the society of
the future will be one in which new values and services are created continuously, making
people’s lives more conformable (sic) and sustainable.

This is Society 5.0, a super-smart society. Japan will take the lead to realize this ahead of the
rest of the world. (Government of Japan, 2018)cations to cancer clinical trials us

Introduction
In the 21st century, many countries are seeking the best means of capitalizing on the
scientific and technological opportunities of the 21st century. Japan is no exception.
Indeed, the country’s long-standing interest in practical technologies and its ability to
mobilize government and industry in pursuit of national economic objectives has made
Japan famous for its ability to commercialize technology. The age of artificial intelligence,
robotics, and mass digitization creates new opportunities and, for aggressive govern-
ments, the possibility of technological re-invention. At the G7 Summit in 2016, Japan
announced Society 5.0, its broad whole of government plan to address global and
domestic economic and social challenges by integrating new technologies (artificial
intelligence, robotics, internet of things) together to create future industries through
developing and promoting disruptive innovation. This paper explores the vision and

CONTACT Carin Holroyd carinholroyd@gmail.com; carin.holroyd@usask.ca

© 2020 Informa UK Limited, trading as Taylor & Francis Group
2 C. HOLROYD

policy evolution of Japan’s Society 5.0 program thus far and evaluates the Government of
Japan’s strategy for developing the bold plan.
For the past 30 years, national governments have developed and implemented a vari-
ety of strategies designed to commercialize scientific discoveries and technological
innovations. National innovation systems (NIS) – the study of how to support innovation
by looking at technology, information flows and relationships among government,
industry and academia – was an attempt to discover which structures, systems, programs
and policies support effective innovation (Etzkowitz & Leydesdorff, 1997; Freeman, 1995;
Lundvall, 2010). The evolving innovation policies focused on three key areas: developing
new businesses, generating additional wealth, and creating new jobs. Governments spent
billions of dollars on strategic investments in post-secondary education, basic research
and commercialization. Investments focused on scientifically dynamic areas, like robotics
and artificial intelligence, biotechnology, digital technologies, and nanotechnology,
which held the most economic promise (often unrealized).
Japan, one of the world’s first “innovation nations’, implemented national innovation
strategies through five year science and technology plans and building globally compe-
titive expertise in semi-conductors, mobile Internet, consumer electronics, videogames,
smart energy, LED lighting systems and many other commercially viable areas. Other
countries – South Korea, Taiwan, the United States, Israel Finland among them – also
adopted aggressive national innovation policies and experimented with a variety of
investments, policy initiatives and business-government collaborations. Some major
innovation initiatives fell well short of expectations. Major investments in biotechnology
by Singapore, Taiwan and South Korea, for example, produced little commercial activity,
despite billions of dollars in government support. (Wong, 2011) Within a generation,
innovation had become integral to national economic planning, leading to the emer-
gence of new economic sectors, a reorientation of post-secondary education towards
science and technology, and ongoing discussions between government and business
about the wealth-producing elements of the innovation economy.
Many observers have noted that the modern economy, while proficient at producing
wealth, also resulted in increasing income inequality, maldistribution of employment
opportunities, the loss of jobs in transitional sectors, and fundamental changes in national
and international economies. There were numerous attempts to take this into considera-
tion, including through a broadly-based social entrepreneurship movement and the
‘Triple Bottom Line’ (social, environmental and financial) approach to business operations.
The focus, however, remained largely on wealth generation – represented by such
companies as Amazon, Google, Cisco, Microsoft and Facebook – with the societal benefits
emerging substantially from the philanthropic efforts of the leading entrepreneurs.
Society 5.0 represents Japan’s primary and nation-wide effort to combine social and
ecological imperatives with the wealth and employment generating capabilities of the
innovation economy. The initiative does not abandon the profit motive, for the engage-
ment of Japanese business is integral to Society 5.0. For several decades, the Government
of Japan understood and supported, albeit sporadically, the social and environmental
benefits of emerging technologies. But the capacity of Japanese innovations to address
the primary challenges of an ageing population, energy shortages, environmental degra-
dation, the changing nature of work, and many others remained substantially unrealized.
 JOURNAL OF ASIAN PUBLIC POLICY 3

Society 5.0 seeks to refocus the innovation effort in Japan by placing societal needs at the
centre of an integrated approach to scientific and technological transformation.
The comprehensive nature of Japan’s Society 5.0 vision, which calls for a ‘whole of
government, business and academia’ approach represents a major departure from the
traditional national innovation system policies. Government programs have long been
inherently incremental and path dependent. The complex literature on national innova-
tion policies outlines the difficult political and implementation challenges associated with
rapid technological challenges. Governments can be compared to ocean-going vessels,
slow moving, ponderous and far from flexible or nimble. National innovation strategies
sought to modernize and even revolutionize economic systems, carrying the implicit
hope and expectation that government and society would follow the lead set by govern-
ment-funded research and private sector commercialization efforts. This occurred in the
case of digital/social media and is underway with artificial intelligence. This meant that
societal priorities, save for those with short-term commercial potential, attracted much
less attention.
Transformation within a nation’s innovation system requires the involvement of
numerous institutions: major companies, numerous government agencies, business asso-
ciations, research institutes, universities, regional governments and others. A policy initia-
tive of the scale and diversity of Society 5.0 requires engagement with, and the support of,
literately thousands of individuals, hundreds of companies, dozens of organizations and
agencies and hundreds of political leaders. The amorphous nature of Society 5.0, with its
absence of programmatic precise and clear policy direction, produces many uncertainties
but has the significant value in signalling government intentions while potentially
unleashing a wave of innovation across a broad range of fields.

Creating the concept of society 5.0

The Japanese government began outlining its ideas and strategy around Society 5.0,
creating a ‘Super Smart Society’, in its 2016 5th Science and Technology Basic Plan. In the
years prior to the launch of each five-year science and technology plan, the government
and the Keidanren (the Japan Business Federation) led by the Council for Science,
Technology and Innovation (CSTI) meet to discuss the next plan. The CSTI Council is
made up of the Prime Minister, relevant Ministers and a handful of science and technol-
ogy experts. Dr. Yuko Harayama, a member of the executive of the Council for Science,
Technology and Innovation during the 5th Science and Technology Basic Plan discussions,
wrote that the preparation for the Fifth Basic Plan consisted of ‘brainstorming discussions
among CSTI’s executive members, with a view to identifying shared guiding principles
upon which the Fifth Basic Plan will be founded. This runs in parallel to a formal assess-
ment of 20 years’ worth of experiences of Basic Plans and benchmarking exercises of STI
policies around the world’.(Carraz & Harayama, 2019) CSTI discussions centred on how
quickly the world was changing and how difficult it was to know how best to prepare the
economy for the future.(Harayama, 2020) In 2015, the year during which the 5th Basic Plan
was being completed, what would become an enormous digital transformation was just
beginning. Discussions about the super smart society concept were outlined in a white
paper. (MEXT, 2016) Gradually, the idea shifted from a society changed by super smart
technology to the Society 5.0 idea of using technology to transform and improve society.
4 C. HOLROYD

The difference is highly significant in that the primary focus changed to meeting societal
needs rather than following technological advances.
The CSTI executive settled on ‘preparedness’ for an increasingly unpredictable future
as the most important challenge that the Fifth Basic Plan should address. This became one
of the Fifth Basic Plan’s four pillars and the one that underlies Society 5.0.(Carraz &
Harayama, 2019) The CSTI looked at Germany’s Industry 4.0, a strategy to digitize and
thereby customize industrial manufacturing, and the program initiatives of other coun-
tries. Underlying these plans, CSTI observed, was the belief that future economies will be
structured in a fundamentally different way as data is fully integrated into the provision of
goods and services. This should allow for policy design which is less technology-driven
and more focused on what is good for society. The idea of Society 5.0, to use digitalization
and connectivity across platforms and throughout society to positively transform society,
quickly attracted interest around the world. (Al Faruqi, 2019; Ferreira & Serpa, 2018;
Harayama, 2020; Skobelev & Borovik, 2017; Záklasník & Putnová, 2019)
The 5th Science and Technology Basic Plan states Japan’s aim to become ‘the most
innovation-friendly country in the world’ (The Fifth Science and Technology Basic Plan,
p. 8) and outlines Japan’s four policy pillar approaches. The first policy pillar, ‘acting to
create new value for the development of future industry and social transformation’, lays
out the broad contours of the Society 5.0 plan. It describes strategies for keeping Japan
competitive, having a vision to create future industries, leading change and promoting
disruptive innovation. The framework for this is the ‘Super Smart Society’ within which
‘ICT is expected to further evolve so that “things”, which have so far functioned separately,
will be connected into “systems” using cyberspace’. (The FIfth Science and Technology
Basic Plan, p. 13) The eventual goal is to create a world in which the cyber world and the
real world interact seamlessly by connecting separate systems (internet of things, big
data, artificial intelligence) in various fields (manufacturing, logistics, transportation,
energy, finance, public services) so that they are able to coordinate and collaborate.
Data from smart food chain systems, smart production, new manufacturing systems,
infrastructure, intelligent transportation and energy value chains can be assembled and
analysed and hopefully used to produce or enhance products and services. Efforts will be
made to standardize the format of data and to improve the means to transfer it and to
keep it secure. CSTI envisages a common platform, ‘Society 5.0 Service Platform’, to enable
the necessary collaboration (Carraz & Harayama, 2019). To lead the creation and imple-
mentation of a super smart society, the plan argues, Japanese technological strengths,
such as robotics, sensor technology, actuator technology, and materials nanotechnology,
must be emphasized while expertise in the technologies fundamental to a super smart
society, including cybersecurity, Internet of Things, big data analytics, artificial technology
and network technologies must be strengthened.
Past approaches to science and technology policy, including in Japan’s Science and
Technology Basic Plans, has focused on support for the development of certain technol-
ogies. While that is the focus of particular programs within Society 5.0, ‘the essence of the
Fifth Basic Plan is rather to prepare the Japanese STI system for an unforeseeable
technological future’.(Ibid, p. 41) The objective is to improve the innovation environment
rather than to identify specific technologies with promise. To operationalize Society 5.0
requires collaboration and integration across systems and across and among industry,
 JOURNAL OF ASIAN PUBLIC POLICY 5

government, academia and the general public. As the Keidanren wrote, ‘Society 5.0 is not
something to come, but something to co-create’. (Keidanren, 2018)
According to a former Counsellor for Science, Technology and Innovation at the
Japanese Cabinet office, the Keidanren played a major role in the development of
Society 5.0. The Keidanren believes that it is the government’s role to do ‘game changing’
innovation, to push beyond the status quo. (Atsushi Sunami, 2020) The Keidanren remains
a key player in Society 5.0, recognizing that expertise in these technologies will give Japan
both an economic edge and the ability to address some of its greatest challenges
including those of an ageing society and a vulnerability to natural disasters. Two of the
executive members of CSTI were from the private sector: Hiroaki Nakanishi (then
President, and now Chairman and CEO, of Hitachi) and Takeshi Uchiyamada (Chairman
of the Board, Toyota Motor Corporation). They were able to be a liaison between the CSTI
and the Keidanren, discussing how to create an innovation eco-system that contributes to
solving social problem while creating business opportunities. (Shiroishi, 2020, Odoi,
2020a).
This level of business engagement in an initiative that is not explicitly economic was
unprecedented, even in Japan. Within months of the launch of the 5th Basic Plan, the
Keidanren released a policy proposal that described in general terms its future initiatives
in support of Society 5.0. (Keidanren, 2016) In 2017, the Keidanren completely revised its
charter stating in the preamble to its new Charter of Corporate Behaviour that the

Keidanren will revise its Charter of Corporate Behavior with the primary aim of proactively
delivering on the SDGs through the realization of Society 5.0. Member corporations should
fully recognize that their development is founded on the realization of a sustainable society,
and they should exercise their social responsibilities by creating new added value and
generating employment that will be beneficial to society at large and by conducting their
business in a manner that takes the environment, society, and governance (ESG) into con-
sideration.(Keidanren, 2017a)

The same year, the Keidanren released an action plan – Revitalizing Japan by Realizing
Society 5.0: Action Plan for Creating the Society of the Future – which outlines its plans for
‘promoting public-private projects in areas that will serve as a foundation for enabling
Society 5.0 as part of Japan’s new growth strategy’. (Keidanren, 2017b) The Action Plan
emphasizes the need for public-private collaboration to resolve complex issues, provide
a foundation for a new society and enhance industrial competitiveness. The emphasis is
on the creation of the infrastructure and the connections between systems and technol-
ogies that will allow Society 5.0 to occur.
The Keidanren selected five priority areas: cities, regions, infrastructure, cyberspace and
goods, products and services. For each area, the plan lists three objectives and three core
initiatives. The cities section, for example, lists such objectives as overcoming financial
pressures through public-private partnerships; resolving traffic jams, distribution effi-
ciency and problems during disasters; and improving international competitiveness
through increasing the participation of women and seniors in society and bringing
more investment into Japan. The three core activities planned to reach these objectives
are developing a sensor network to allow the visualization of urban activities; putting
a data analysis infrastructure in place to improve urban management in areas like
6 C. HOLROYD

mobility, disaster management, resource recycling; and then establishing the systems and
structures to ensure that the urban management system operates effectively.
Individual companies including Panasonic, NEC, Toyota, Fujitsu and Hitachi have also
begun integrating Society 5.0 into their corporate strategies. Hitachi, for example, parti-
cipated in high risk high reward research projects under Society 5.0 (see Impact and SIP
below). Hitachi launched its Lumada platform which is designed to create value from data.
As can be seen from the description below, Lumada can be one of the foundations of the
super smart society envisioned in Society 5.0.
Lumada is a general term for the solutions, services and technologies that utilize
Hitachi’s advanced digital technologies to create value from customer data and accelerate
digital innovation. It is derived from the words ‘illuminate’ and ‘data’ and was created
based on the idea of combining the strengths of the operational technology (OT), IT and
products cultivated within Hitachi. Along with the development of information technol-
ogy (IT) and the Internet of things (IoT), social and business activities continue to generate
data at an increasing rate of speed. Hitachi has focused on these data as a new source of
value in future society and launched the Lumada business in 2016 with the goal of using
large volumes of data to create innovation for the world. With Lumada as a common
platform, we will create new value and establish an advanced cyber-physical system that
links digital and real spaces (actual physical things) in real time. (Hitachi, 2019)
Different government ministries have launched a variety of policies and plans in
support of Society 5.0. The Ministry of Economy, Trade and Industry (METI) is one of the
main ministries working to implement Society 5.0. METI’s New Industrial Structure Vision
describes how to leverage Japan’s strengths including an ability to gather and use data,
to create innovative products with technology and a desire to solve social problems
common to a mature economy with an ageing population, to realize Society 5.0. METI
specifically describes how these strengths can be marshalled to problem solve in the
areas of mobility, supply chains, healthcare and lifestyle. (METI, 2015) Looking at the
field of mobility, METI points to related social problems including the shortage of
commercial drivers in Japan and the increase in traffic accidents caused by elderly
drivers. The planning roadmap calls for an expansion of the autonomous vehicle market,
the commercialization of highway platooning (linking autonomous trucks in a convoy
led by human operators) and the use of drones to deliver goods ‘beyond visual line of
sight’.
Success in these endeavours (and those in the other fields mentioned above) would
not only create solutions for social challenges but would create sectors of economic
growth. METI has also been promoting the policy concept of Connected Industries, a ‘new
vision for the future of Japanese industries’ that connect the strengths within Japan’s
manufacturing industries ‘but also across various industries, companies and technologies’.
The goal is to add value and create solutions to pressing societal problems through these
connections of data, technologies like artificial intelligence, robotics and internet of
things, and people. Five priority fields (automated driving and mobility; manufacturing
and robotics; plant/infrastructure management; biotechnologies and materials and Smart
Life) in which the sharing of and utilization of data can be most effective have been
identified. (METI, 2014)
The Ministry of Education, Culture, Sports, Science and Technology (MEXT) in partner-
ship with the Japan Science and Technology Agency created the Centre of Innovation
 JOURNAL OF ASIAN PUBLIC POLICY 7

(COI) program to jump-start industry-academia collaboration and the creation of an

innovation platform that would help the development of radical innovations that would
not be possible for industry or academia to undertake on their own. (Japan Science and
Technology Agency, 2019) Although COI started prior to the 5th Science and Technology
Basic Plan, its similar objectives now tie it into Society 5.0.

Policy and program manifestations of society 5.0

Society 5.0’s objective is to improve the innovation environment in Japan and, in the
process, respond to the most pressing societal needs in Japan and beyond. As an articula-
tion of a dramatic national vision more than a detailed list of programs and investments, the
Society 5.0 initiative cannot be described in traditional policy terms. It is more a call to arms,
akin to Japan’s response to the 3/11 earthquakes and tsunami, than a standard, compart-
mentalized government innovation strategy. As such the full articulation and evaluation of
the program will take years, if not decades, as the Society 5.0 vision unfolds in practice. It is,
in sum, a government initiative with ambitious reach and transformative potential but
without the precision, clear budget lines, and specialized objectives typically associated
with national innovation policies and government economic development strategies.
This is not to suggest that Society 5.0 is without purpose and practicality, however.
Indeed, the initiative calls on all public and private sector participants to adjust their
direction, from a primary emphasis on commercializing technology to a more inclusive,
society-first orientation. The following is an overview of some of the major policy
responses to the Society 5.0 strategy.

Funding

To accomplish what is laid out in the 5th Science and Technology Basic Plan and the
follow up document, Comprehensive Strategy on Science, Technology and Innovation for
2017 (“Comprehensive Strategy,” 2017), requires massive investments in research and
development. In June 2015, the Cabinet committed to a target of R&D intensity (public
and private research and development spending as a percentage of GDP) of 4% of
a projected national GDP of 600 trillion yen by 2020. The government’s goal is to invest
1% of GDP in science and technology, or 6 trillion yen, a significant increase from the 3.5
trillion yen spent in 2017. The private sector is expected to invest 18 trillion yen.
To put this in context, Israel tops the list of country commitments to R&D at 4.9% while
South Korea is second at slightly more than 4.5%. In 2018, Japan’s investment in 2018 was
2.4% of GDP so below the Society 5.0 target.

Sharing big data

The Ministry of Economy, Trade and Industry (METI) released new guidelines for sharing
big data in May 2017. METI’s goal is to ensure that big data can be traded securely and to
encourage public and private companies to share their data and use it to cooperate on
the development of better products and services. The Ministry of General Affairs and METI
are still in discussions about the most appropriate rules around data sharing. Current METI
guidelines call on companies
8 C. HOLROYD

to clarify who has the rights to which data when buying business equipment from or entering
into partnerships with others. They will be encouraged to share all collected data other than
trade secrets, so that parts makers, which have been hesitant to use big data, and other
companies can use the information to develop future products. The guidelines will also
recommend that companies decide beforehand how they share the proceeds from big
data. (Fuyuno, 2017)

Jesper Koll, one of Japan’s top economic advisors and commentators, argues that Japan
needs to go even further and use its credibility and expertise to develop global standards.
He points out that ‘much of the current hype around the coming golden age depends on
the free flow of data across countries and around the globe. No trust in data means no
fourth industrial revolution, no Society 5.0, no big AI, no machine learning and no
singularity’. (Koll, 2019)

Public-private collaboration
For much of the post-World War II period, intense government-industry cooperation has been
the hallmark of Japan’s economic planning. PRISM (the Public Private R&D Investment
Strategic Expansion Program) is designed to support industry- academic research and devel-
opment cooperation in established research areas. Program priorities match those described
in the Basic Plan as Japanese strengths and as being fundamental to a Super Smart Society,
such as artificial intelligence, the Internet of Things, big data, sensors, actuators, robotics and
resilient infrastructure. A fund of 200 billion yen (approximately 1 USD.8 billion) has been
allocated to this area. To encourage investments and partnerships with foreign companies,
a further commitment has been made to lighten commercial and technical regulations and
administrative procedures around foreign direct investment. (Fuyuno, 2017)

Cross-ministerial cooperation
Japan 5.0 is built around a ‘whole of government’ approach to both planning and
execution. Led by CSTI, the Cross -Ministerial Strategic Innovation Promotion Program
(SIP) was implemented to break through ministerial silos and facilitate cooperation across
ministries, agencies, departments on particular research areas. The goal was to accelerate
government research and development projects by bringing together all the projects on
a certain topic that are being worked on through different ministry programs. This is to
better understand the possibilities for collaboration and eliminate duplication.
Government officials familiar with the program indicated that while there was pushback
from different ministries, the program has been somewhat successful.
For the first round (2015–19), eleven programs which focused on critical social issues
that could also contribute to the Japanese economy were selected. Five of the projects
were in energy, including innovative combustion technology and renewable energy such
as hydrogen, and four in next generation infrastructure, including automated driving
systems. The projects have program directors who are tasked with ‘guiding their projects
from basic research to practical application and commercialization, and ultimately to
a clear exit strategy’.(‘What is the Cross Ministerial, “, n.d. 2019) The program directors
are to manage the projects from a cross-ministerial multi-disciplinary perspective.
A second phase of the project started in 2018 (before the first phase was finished as
 JOURNAL OF ASIAN PUBLIC POLICY 9

some extra funding became available) on twelve different research themes. A full evalua-
tion of the first phase of the SIP program has not yet taken place.

Risky innovation suppor

Capitalizing on the potential of rapid technological change requires calculated risk-taking
and a willingness to fail constructively. Another program under the Council for Science,
Technology and Innovation (CSTI) was Impulsing Paradigm through Disruptive
Technologies (ImPACT). ImPACT’s goal was to encourage high-risk, high-impact research
and development. As the program’s mandate explains, ‘under the conventional R&D regime
in which each institution uses the resources at its disposal, high-risk and high-impact
initiatives are difficult’. (Impulsing Paradigm Change Through Disruptive Technologies,
2019) Shareholder considerations and financial constraints limit the corporate sector’s
ability to invest heavily in technologies where the probability of success is low. However,
successful investment in a disruptive technology that improves industry or society can have
extensive benefits. ImPACT designated five themes, such as minimizing damage and impact
from natural disasters, and chose project managers to oversee funded research on these
themes. There were sixteen projects supported over the 2014–19 time period. Some were
led by academics and others by business people. One of the ImPACT projects focused on
developing ultra-thin and flexible tough polymers. The goal is to use these new materials to
improve automotive parts and transportation equipment. In October 2018, the University of
Tokyo professor in charge of the project unveiled a new concept car made from different
kinds of plastic. As one report explains, ‘Use of plastic in automotive production was
previously considered impossible due to insufficient solidity. The Japanese scientists man-
aged to solve the problem by combining different types of plastic’.(““Japan presents first
car”,” 2018) This ItoP car (Iron to Polymer) is forty percent lighter than a regular car and
therefore significantly more energy efficient while retaining a level of strength and solidity
that is comparable to aluminium and other materials used in manufacturing vehicles.
Evaluation of the success of the various ImPACT projects is currently underway.
A new program called the Moonshot Research Development System replaced ImPACT.
Under Moonshot, numerous researchers will be working on related projects and will be
encouraged to compete to achieve improved results. (““Japan plans funding” 2018)
Foreign companies can participate in Moonshot projects with a Japanese partner if they
have a base in Japan. As with ImPACT, the government, in consultation with experts,
chose the themes and promoted participation among national research institutes, uni-
versities and corporations and selected program managers to lead the research teams.
Moonshot opened for research applications under six bold Moonshot Goals, in early 2020.
The Moonshot goals are hugely ambitious. Moonshot Goal #3, for example, is ‘Realization
of AI robots that autonomously learn, adapt to their environment, evolve in intelligence
and act alongside human beings, by 2050’. Each research goal will have a project director
who will oversee project managers for five or six research programs on aspects of the
Moonshot goal. Moonshot’s total budget is 100 billion yen (around 900 million
U.S. dollars) divided among the six projects over five years. The research programs will
be reviewed after three or four years. At this stage, some projects may be terminated will
others will be extended to ten years. (Odoi, 2020b)
10 C. HOLROYD

University reform
Improving the role of universities in the innovation eco-system is another element in
developing Society 5.0. The government, which has instituted major reforms of the post-
secondary sector in recent decades, wants universities to be both more financially
sustainable and more responsive to society. National universities are strongly encouraged
to attract investment from the private sector. While some universities are to continue to
strive to be among the best in the world, others, especially those in more rural areas, are
encouraged to train students to work for local small and medium-sized companies which
are struggling to find enough staff. Regional universities can also help SMEs with research
and development. (Atsushi. Sunami, 2017)
In 2015, all Japan’s national universities were asked to decide if they were either
globally competitive research universities, universities with a focus on unique areas of
teaching or research, or institutions focused on contributing to the local economy.
Funding would then be based on specific standards related to each category. (Ibid.)
Universities have greeted these reforms with considerable scepticism. Many believe that
funding has already been cut so severely that universities no longer have the capacity to
reform themselves.

National security strategy and research fund

National security research, pursuing research and development on technologies to coun-
ter terrorism and risks including in space, cyberspace and the ocean, is also included in the
5th Science and Technology Basic Plan. (The Minister of Defence met with the Council for
Science, Technology and Innovation for the first time in September 2016) (Atsushi
Sunami, 2018). Better systems of cooperation related to research and development
around security have been established across government and with universities and
industry. A National Security Technology Research Fund was established to fund research
into multi-function technologies that could have both civilian and military applications,
adopting a model that has long been successful in the United States. (Tanaka, 2017)
Examples of multi-function technologies could include unmanned technology, smart
networked technology and high-power energy technology such as lasers and microwave
systems.

Science and innovation integration council

In July 2017, the State Minister for Science and Technology Policy established the Science
and Innovation Integration Council. The Council’s work is to create an active and coop-
erative community of people and organizations from various levels of government and
industry and to provide opportunities for them to interact and share information to
promote collaboration, make policy recommendations and exchange personnel.

Progress to date
The Society 5.0 initiative is comparatively new; it is unrealistic to expect a rapid transfor-
mation, although speed and effectiveness in innovation programs is a cornerstone of the
 JOURNAL OF ASIAN PUBLIC POLICY 11

government’s effort. The objectives of Society 5.0 are broad and ambitious as are many of
the different elements of the strategy outlined above. In fact, as Society 5.0 itself is a high-
risk high reward plan, it is evident that some of what is sought is unlikely to be achieved.
Many of the components of the strategy will, in time, be criticized for being flawed or
ineffective. However, there is an audacity to the breadth of the vision of the Government
of Japan, which is fuelled at least in part by the urgent need to solve some of the nation
and the globe’s most pressing problems.
There are promising signs that Society 5.0 has been moving forward. Society 5.0 will be
the cornerstone of the 6th Science and Technology Basic Plan which will begin in 2022.
The Keidanren has incorporated Society 5.0 into its Charter and many of Japan’s large
corporations have embraced the Society 5.0 vision. Small and medium sized companies
and the general public are less aware of Society 5.0 and therefore are less engaged.
A recent review of the Science and Technology Basic Plan recommends working to
increase the degree of recognition of Society 5.0 among those groups.
It is important to recognize that Japan 5.0 is not about a single product or service, but
rather about the interaction of many products, technologies and services, some of which are
in operation, few of which currently interact with each other, and many which are still to be
invented. The concept creates the possibility for truly integrated health care system, using
sample-collecting devices like urinalysis toilets and handheld medical systems with AI-
controlled medical evaluations and pharmaceutical dispensing systems which also connect
to government medical statistics and hospital planning. It will support the development of
complex domestic energy systems, starting with Net-Zero homes that deliver surplus
energy into the local electricity grid, power electric vehicles overnight, utilize an integrated
energy system designed to maximize the use of renewables and minimize the use of fossil
fuels, as well as smart-grid technologies that optimize energy use on a city-wide basis and
that are connected directly to high-technology weather forecasting systems.
Overall, the Society 5.0 projects are focused on dealing with social and economic issues
by using multiple sources of data and connecting the cyber, physical and human worlds.
Relatively familiar examples of Japanese efforts include the use of robots for healthcare
and various forms of labour, primarily to offset the increased need for care for seniors and,
in Japan’s case, a declining labour force. There is considerable attention to automated
driving, designed to decrease accidents and deal with Japan’s serious shortage of delivery
drivers, drone delivery systems and artificial intelligence-enabled appliances.
Building on current technological accomplishments, particularly in an era of accelerat-
ing innovation, will require dramatic commitments. The government understands that
a societal transformation of the kind envisaged in Society 5.0 requires a rethinking of the
fundamentals of education and training, extending well-beyond the repositioning and
adjustments of the post-secondary system. The government’s innovation promotion
council led by the Chief Cabinet Secretary in its 2019 deliberations on an Artificial
Intelligence strategy called for

having all university and technical college students take beginner-level programs on math,
data science and AI, and letting half acquire the skills to apply AI to their own fields of study. It
also asked the government to provide working adults with opportunities to learn such AI
skills. (“Education on AI,” 2019)
12 C. HOLROYD

As a unitary state, with a strong national government and a historical pattern of accepting
government control of a centralized education system, Japan has the capacity to connect
education to national priorities. In this case, the courses are intended to ensure that young
people are adequately prepared for the scientifically intense requirements of Society 5.0.
Japan’s super smart society is at an early stage of development. Some of the foundational
elements are in place, including ubiquitous high-speed Internet and wireless connectivity,
advanced digital research capabilities, extensive commitments to the collection and use of
big data, and a nation-wide track record for the commercialization of emerging technolo-
gies. Where Japan stands apart from the crowd is in the depth of its commitment, from
restructuring education to reinventing core government services, and its willingness to
experiment on long-term implementations that could address the country’s serious con-
cerns about energy supplies, disaster resilience and environmental sustainability. Digital
management systems, like the Smart Cities movement (which imagines Society 5.0 con-
nectivity on a more manageable urban level), e-commerce initiatives, and e-health strate-
gies have shown considerable promise. Continuing innovation, uneven success and failure
in implementation, and the complex interaction of Japanese citizens, government agencies
and the private sector will produce an evolving range of services, products and high
technology innovations. In launching Society 5.0, the Government of Japan established
a general direction, backed by sizable financial investments, letting the country and its
citizens become part of a nation-wide social experiment and economic incubator.
As journalist Mark Minevich wrote in 2019,

Boldly identified as “Society 5.0,” Japan describes its initiative as a purposeful effort to create
a new social contract and economic model by fully incorporating the technological innova-
tions of the fourth industrial revolution. It envisions embedding these innovations into every
corner of its ageing society. Underpinning this effort is a mandate for sustainability, bound
tightly to the new United Nations global goals, the SDGs. Japan wants to create, in its own
words, a “super-smart” society, and one that will serve as a road map for the rest of the world.
(Minevich, 2019)

Society 5.0 represents a significant challenge to the traditional approach to national

innovation policy. Globally, innovation policies have played a significant role in economic
development strategies in recent decades, sparking a major expansion in university and
college enrolment, billions of investments in basic research, and sustained commerciali-
zation efforts. Japan’s approach reverses the emphasis on laboratory science and com-
pany-centric commercialization to a collective challenge to universities, companies and
government agencies to collaborate in the best interests of society at large. The emphasis
on government-supported integrative initiatives highlights the fundamental importance
of government funding for risky, non-commercial elements that might nonetheless have
substantial societal and/or economic benefits. The society-first vision that is foundational
to Society 5.0 holds considerable innovation potential, but requires a new approach to
innovation investments, planning and implementation. Thirty years ago, the attention of
the world was drawn to Japan’s revolutionary innovations in consumer electronics.
Society 5.0 has the potential to refocus national innovation planning by shifting the
focus from company-level commercial success to the opportunity to produce transforma-
tional benefits – including profits and employment – for nations and the world as a whole.
Japan, in the process, has the potential to re-emerge as a world leading innovation nation.
 JOURNAL OF ASIAN PUBLIC POLICY 13

Acknowledgments
The author wishes to acknowledge with much thanks the support of the Japan Foundation through its
short-term research fellowship and the Social Sciences and Humanities Research Council of Canada.

Disclosure statement
No potential conflict of interest was reported by the author.

Funding
This work was supported by the Japan Foundation, Tokyo; Social Science and Humanities Research
Council, Canada.

Notes on contributor
Carin Holroyd is Professor, Department of Political Studies, University of Saskatchewan and
President of the Japan Studies Association of Canada. She has published widely on Japan and
East Asia. He more recent work is Green Japan: Environmental Technologies, Innovation Policy and
the Pursuit of GreennGrowth (University of Toronto Press, 2019).

ReferencesReferences
Al Faruqi, U. (2019). Survey paper: Future service in industry 5.0. Jurnal Sistem C Erdas, 2 (1), 67–79.
2622-8254H al
Carraz, R., & Harayama, Y. (2019). Japan’s innovation system at a crossroads: Society 5.0. In Christian
Echle, (Ed.), Digital Asia (Panorama: Insights into European and Asian Affairs) (pp. 39–40). Konrad-
Adenauer-Stiftung Ltd.
Comprehensive strategy on science, technology and innovation (Government of Japan, 2017). https://
www8.cao.go.jp/cstp/english/doc/2017stistrategy_main.pdf
Education on AI proposal for all university and technical college students in Japan. 2019 March 30. The
Japan Times. https://www.japantimes.co.jp/news/2019/03/30/national/social-issues/education-ai
-proposed-university-technical-college-students-japan/#.XK5JP-tKjOQ.
Etzkowitz, H., & Leydesdorff, L., eds., (1997) Universities in the global knowledge economy: A Triple
Helix of University-Industry-govenment relations. (Pinter, 1997.
Ferreira, C. M., & Serpa, S. (2018, November). Society 5.0 and human society. working paper. https://
pdfs.semanticscholar.org/0f79/28aa4bb874e6c229a12d146790dabb221ae4.pdf
Fifth science and technology basic plan. (Council for Science, Technology and Innovation,
Government of Japan)13. https://www8.cao.go.jp/cstp/english/basic/5thbasicplan.pdf
Freeman, C. (1995). National innovation systems in historical perspective. Cambridge Journal of
Economics, 19 (1), 5–24. https://doi.org/10.1093/oxfordjournals.cje.a035309
Fuyuno, I. (2017, August 15). Japan’s Strategy for growth highlights innovation. Nature Index.
Government of Japan (2018), “Realizing Society 5.0”. Government of Japan. - https://www.japan.go.
jp/abenomics/_userdata/abenomics/pdf/society_5.0.pdf
Harayama, D. (2020). interview on, 1 March.
Hitachi, (2019).Hitachi Integrated Report 2019. Hitachi Corporation, p. 48.
Impulsing Paradigm Change Through Disruptive Technologies. (2019) Japan Science and
Technology Agency. https://www.jst.go.jp/impact/en/intro.html
Japan plans funding for ‘moon-shot’ technology. (2018). The Nation, September 11. Reiko Sakurai,
“Japan takes a shot at moonshots”, NHK World – Japan, January 30, 2019. https://www3.nhk.or.jp/
nhkworld/nhknewsline/backstories/shotmoonshots/NHK World/Japan Broadcasting Corporation
14 C. HOLROYD

Japan presents first car made by 90% by plastic, reports. (2018). Sputnik, September 28. Sputnick
International. https://sputniknews.com/asia/201809281068410389-japan-plastic-car/
Japan Science and Technology Agency, (2019) Center of Innovation Program. Japan Science and
Technology Agency https://www.jst.go.jp/tt/EN/platform/coi.html
Japan to urge businesses to share big data. (2017). Nikkei Asian Review, April 3.
Keidanren. (2016, March). Toward realization of the new economy and society. Keidanren (Japan
Business Federation) https://www.keidanren.or.jp/en/policy/2016/029_outline.pdf
Keidanren. (2017a, November). Revision of the Charter of Corporate Behavior. Keidanren (Japan
Business Federation) Policy Proposals, 8, 2017. Keidanren http://www.keidanren.or.jp/en/policy/
csr/charter2017.html
Keidanren. (2017b). Revitalizing Japan by realizing society 5.0: Action plan for creating the society of the
future – Feb. 14, 2017 Keidanren http://www.keidanren.or.jp/en/policy/2017/010_overview.pdf
Keidanren. (2018). Society 5.0: C-o-creating the future Keidanren. https://www.keidanren.or.jp/en/
policy/2018/095_outline.pdf
Koll, J. (2019, April 1). An economic policy agenda for the Reiwa era”, The Japan Times. https://www.
japantimes.co.jp/opinion/2019/04/01/commentary/japan-commentary/economic-policy-agenda
-reiwa-era/#.XK5l-qR7mUk
Lundvall, B.-Å. (editor). (2010). National Systems of Innovation: Toward a Theory of Innovation and
Interactive Learning. Anthem Press.
METI (2014), “Connected Industries” -Ministry of Economy, Trade and Industry. https://www.meti.go.
jp/english/policy/mono_info_service/connected_industries/index.html
METI. (2015), “New Industrial Structure Vision” Ministry of Economy, Trade and Industry. - https://
www.meti.go.jp/english/publications/pdf/vision_171222.pdf
MEXT. (2016). White Paper on Science and Technology: Challenges in Realizing a Super Smart Society
supported by the IoT, Big Data and Artificial Intelligence-Japan as a Global Front Runner.
Minevich, M. (2019, February 2). “Japan’s ‘society 5.0ʹ initiative is a road map for today’s entrepre-
neurs,” Techcrunch. (https://techcrunch.com/2019/02/02/japans-society-5-0-initiative-is-a-road
map-for-todays-entrepreneurs/
Odoi, S. (2020a, February 26). Interview with Chief strategist, technology strategy office, Hitachi Ltd.
Research and development group
Odoi, S. (2020b, March 17). Interview, Chief strategist, email communications, technology strategy
office, Hitachi Ltd. Research and Development Group, information.
Shiroishi, Y. (2020). Chief architect and technology advisor, Hitachi Ltd. Research and Development
Group.
Skobelev, P. O., & Borovik, S. (2017). On the way from Industry 4.0 to Industry 5.0: From digital
manufacturing to digital society. International Science Journal Industry 4.0, Year, 11(6),
307–331. https://stumejournals.com/journals/i4/2017/6/307
Sunami, A. (2017, April 7). Japanese University Reform ‘Unrealistic’ without Proper Funding. Nature.
https://www.natureindex.com/news-blog/japan-university-reform-unrealistic-without-proper-
funding
Sunami, A. (2018, April 25), “Creating Japan’s Super Smart Society – Abenomics 2018”, Presentation
at the Creating Digital Opportunities Conference, Vancouver
Sunami, A. (2020, January 29). interview, Former Counsellor for STI policy, Japan cabinet office,
Government ofo Japan.
Tanaka, M. (2017, July 20). Defense Ministry’s push to fund research into dual-use technologies
sparks ethics debate among scientists”, The Japan Times.
“What is the cross ministerial strategic innovation promotion program?,” Council of Science and
Technology Policy, Government of Japan. https://www8.cao.go.jp/cstp/panhu/sip_english/4-6.
pdf, n.d.
Wong, J. (2011). Betting on Biotechnology: Innovation and the Limits of Asia’s Development State.
Cornell University Press.
Záklasník, M., & Putnová, A. (2019). Digital society – opportunity or threat? Case studies of Japan and
the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 67(4),
1085–1095. https://doi.org/10.11118/actaun201967041085