2.

1: Country/Economy Profiles

Japan
Key indicators, 2010

GDP (PPP) per capita (int’l $), 1985–2010

Population (millions)...............................................127.0
GDP (US$ billions)................................................5,458.9
GDP per capita (US$) ...........................................42,820
GDP (PPP) as share (%) of world total..................5.82

Japan

40,000

Advanced economies

30,000
20,000
10,000
0

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Global Competitiveness Index
Rank
(out of 142)

Stage of development

Score
(1–7)

GCI 2011–2012 .......................................................... 9......5.4

Factor
driven

Basic requirements (20.0%)...............................................28........ 5.4
Institutions.............................................................................24........ 5.2
Infrastructure........................................................................15........ 5.7
Macroeconomic environment .........................................113........ 4.2
Health and primary education.............................................9........ 6.5

218

Transition
1–2

1

GCI 2010–2011 (out of 139)....................................................6........ 5.4
GCI 2009–2010 (out of 133)....................................................8........ 5.4

Transition
2–3

2

3

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

5

Business
sophistication

Efficiency enhancers (50.0%)............................................11........ 5.2
Higher education and training...........................................19........ 5.3
Goods market efficiency.....................................................18........ 5.0
Labor market efficiency......................................................12........ 5.0
Financial market development ..........................................32........ 4.6
Technological readiness.....................................................25........ 5.1
Market size .............................................................................4........ 6.1

Infrastructure

6

Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors (30.0%) ................3........ 5.7
Business sophistication .......................................................1........ 5.9
Innovation................................................................................4........ 5.6

Financial market
development

Goods market
efficiency
Labor market efficiency

Japan

Innovation-driven economies

The most problematic factors for doing business
Policy instability ...................................................................24.3
Tax rates ................................................................................20.2
Government instability/coups............................................17.6
Inefficient government bureaucracy................................13.9
Tax regulations .......................................................................8.7
Restrictive labor regulations................................................7.4
Inadequate supply of infrastructure...................................2.4
Access to financing...............................................................2.0
Inadequately educated workforce .....................................1.1
Poor work ethic in national labor force.............................1.0
Poor public health..................................................................0.7
Foreign currency regulations ..............................................0.3
Inflation....................................................................................0.3
Corruption................................................................................0.1
Crime and theft.......................................................................0.0
0

5

10
15
Percent of responses

20

25

Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum

30

.... 5.03 3.3 .........04 1........08 1.1 .............3 Nature of competitive advantage .....01 11..5 ........1 University-industry collaboration in R&D.............32 Transparency of government policymaking.................................... 4........04 11.........01 2.... 5...06 11. 2............ 19 Primary education enrollment.......02 11.08 4......8 .......9 ............ 5.......0 ..............7 .9 ........2 ..... 1–7 (best)*.........2 ....78 No...........52 Tuberculosis incidence/100....... 4..............................05 3.............06 Government budget balance...0 .02 9...........9 .. 6....... 0–10 (best)* ........... 5...... -0............. 74 Interest rate spread..................... 5..02 6....36 HIV prevalence......9 ... 0–100 (best)* .......06 6...................8 ...........................................9 ....02 7. 5.1 Quality of scientific research institutions ............04 2........835........ 4.............................3 ....................18 1..............................................78 Burden of government regulation ...7 ... 0–100 (worst)* ............1 Production process sophistication ......................8 .. 1–7 (best)* ........... For further details and explanation.........1: Country/Economy Profiles Japan 7th pillar: Labor market efficiency 8th pillar: Financial market development 9th pillar: Technological readiness 10th pillar: Market size 10...01 4........38 Business costs of terrorism ......05 8......The Global Competitiveness Index in detail INDICATOR VALUE RANK/142 INDICATOR 1st pillar: Institutions VALUE RANK/142 6th pillar: Goods market efficiency 1.................. 6.......1 5.36 Imports as a percentage of GDP* .....................1 .. 12 Extent of staff training ...........9 ...4 .........24 Protection of minority shareholders’ interests.........4 10.............. 5.................. 5.1 Business impact of tuberculosis ........ 5. 16 Quality of railroad infrastructure.....01 Domestic market size index...01 12......36 Quality of math and science education ......49 Inflation......... 5..........................1 Buyer sophistication...........................22 Tertiary education enrollment.... 6...... 13 Quality of roads......84 Business costs of crime and violence ...7 .06 1..000 pop.1 .........2 .....8 ..............47 Soundness of banks........29 Financing through local equity market ......4 Extent of market dominance........... 4....................57 Internet access in schools..............06 5.............07 7....................3 ..................02 5... 6.... 5.... 5.......01 8...01 5.3 ........9 .......* ............0 .............................000 live births*..4 .37 Affordability of financial services ........... 5.. 4......9 Judicial independence.....08 11. 5......... millions* ...... 4.9 .........5 ..... gross %*....7 ......................8 .38 Hiring and firing practices ......1 Malaria cases/100.................05 4..09 1.......................4 ............12 6......................07 6... 16 2.....15 6.................02 4....................2 ............ 11 Company spending on R&D.03 1. 3..........36 Organized crime ...............................05 6..........0 ..2 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*).........5 ..................................36 Legal rights index...................10 6. 6...........3 ....5 .........11 6.........35 Quality of the educational system ..................................................4 .........73 Efficiency of legal framework in settling disputes 4...8 .........09 Local supplier quantity .........6 .... 5.07 5........................ 133 Redundancy costs...... % GDP* ......*..* ...............08 2..........06 Availability of latest technologies ............. 5...............72 Regulation of securities exchanges. 4.................... %* ......... -9...7 ................ 5.......6 ...01 9. annual % change*.....................3 ..... 5.....35 Efficacy of corporate boards .............9 Extent and effect of taxation.16 Intensity of local competition...6 ...........5 .........4 ......08 6.................... % duty*....13 1............ 2.......0 .........28 Efficiency of legal framework in challenging regs.... 4.. 6.. 4................7 . 352...........1 ..............3 ...8 .07 11..........33 Quality of air transport infrastructure .................... 16...... 4 ...04 6. 4..........94 Business impact of rules on FDI...5 ................. 82..... 6.......2 Utility patents granted/million pop...03 5.....* ....87 Burden of customs procedures ............................1 Quality of primary education..................0 ...................................1 Infant mortality........................................5 ........... 16 Gov’t procurement of advanced tech products............50 Available airline seat kms/week.............7 11th pillar: Business sophistication 11.....04 7.......... 5. 3...............01 7.....06 8.......3 .................. 5..09 4...07 1...............65 Internet users/100 pop......... 17 Internet bandwidth........07 8...9 ..........0 ..6 Flexibility of wage determination ................. 4............... ........ 58...08 Secondary education enrollment...4 .................. 3.................... 6............03 8....................................... 4..8 ....10 Business impact of malaria ..................................3 ......4 Quality of electricity supply..4 ....... N/Appl..5 ..............14 6.................. 23 .................. 5..09 Quality of overall infrastructure ........05 12...2 ....................<0.... 100............... 5....... % profits*..07 2...7............. 85..2 ...... 5........................05 7........ 23...... 138 Prevalence of trade barriers ........46 Venture capital availability .03 9..... 2.........................1 Value chain breadth ............. 4.........* ...000 pop...9 .........3 ... procedures to start a business*.........1 ....* ..36 Prevalence of foreign ownership.......01 3.... 4.......11 1.....03 6........ 5................0 ..............23 Ethical behavior of firms .....5 ..05 1...............03 4... 18 Favoritism in decisions of government officials .2 Quality of port infrastructure. deaths/1... 6.... 5........... 15 Broadband Internet subscriptions/100 pop........ The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum 219 ......10 Wastefulness of government spending ..... 3............. 12.................8 ..8 ...8 .................... 19 12..............01 6.............16 1.................08 Availability of financial services...........9 ... 5.......8 . % adult pop...6 2nd pillar: Infrastructure 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6............... % GDP*........2 Effectiveness of anti-monopoly policy........................3 State of cluster development..... 2..........* ...02 3.. 16 Strength of auditing and reporting standards ..................24 Women in labor force...8 ............................05 2.. weeks of salary* .........................8 ....22 Diversion of public funds ....02 Foreign market size index..........5 ...............06 7... 95.2 ...... 5.... 4...07 4...............................07 Capacity for innovation..5 ...........3 General government debt......... years*........ please refer to the section “How to Read the Country/Economy Profiles” on page 89.. 48...................22 Strength of investor protection.....32 Availability of scientists and engineers .................................................... 5.................................... 6. net %* ............0 ..................* ...4 ......87 Agricultural policy costs ..........1 Local supplier quality.3 ........43 2... 5.1..... 5......9 ..............05 9.......8 ................... 18 4.........1 ..9 ..............10 1................39 Availability of research and training services .......03 11...........1 Extent of marketing..... kb/s/capita*........................ 5..3 FDI and technology transfer......... 100........................... 5.................................... 4.....43 Business impact of HIV/AIDS .......... 11 Reliance on professional management .......... 80... 16 Rigidity of employment index...........05 5...36 Mobile telephone subscriptions/100 pop.......... 5..........2 ....06 4...... 5....... 6.......... 135 Gross national savings....................... 6........................31......84 8.. 142 Country credit rating.39 9..........1 7........ 15..................................04 8.........21 Property rights............03 7...... 0............. 4.............. 141 Degree of customer orientation.......17 1..3 ........06 12...........15 1.....0 .......8 ...14 1.....51 Reliability of police services..... 5........7.73 ............ 5............ 17 Fixed telephone lines/100 pop. ratio to men*..06 2........04 12...............19 1.........05 11..... 5....... 8 ....................... 15 Brain drain ...24 Quality of management schools ..................5 ....7 Life expectancy.......................20 1.0 ......................................20 Intellectual property protection ........................2 .....................24 Public trust of politicians ..77 3............ 4...........9 .......04 5... 220......9 .......................... 102 Total tax rate.. 13 Ease of access to loans . 6.......02 8...........04 3................ 15 Firm-level technology absorption ..................1 .........7 .13 6...........04 4........... 3.....02 12........1 ............02 2.. % GDP* ........... 26...............04 9.....1 ..21......6 Pay and productivity .12 1........ (NE) .09 6..............09 Cooperation in labor-employer relations.............................................. gross %* ............. 4............... 102 No.1 ..... 6...........03 2......... 100 Trade tariffs....9 Willingness to delegate authority ..................................... 0–10 (best)* .........1 ........... 2.....55 Irregular payments and bribes ..........03 12.. 4....08 7.............7 . days to start a business* .............1 Control of international distribution..01 1...02 1...................

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