Contents

Messages from the Chairman and the President 01

Overview of Fiscal 2014 Activities 02

Research Activities/ Research Programs 07

List of Research Projects 08 Discussion Papers & About RIETI Policy Discussion Papers 45 The Research Institute of Economy, Trade and Industry (RIETI), an Public Relations Activities 53 incorporated administrative agency, was established on April 1, 2001 to conduct extensive policy research and formulate policy Publications 54 recommendations. Levering its location in Kasumigaseki, RIETI Website 57 takes full advantage of the synergy among policymakers, researchers, industry leaders, and other stakeholders. RIETI has Publicity Materials 58 developed an excellent reputation both in Japan and abroad for its Symposiums 59 evidence-based theoretical and empirical research, working in synergy with policy authorities. Workshops & Seminars 63

BBL Seminars 71 RIETI has set up an overall framework of research themes to respond to policymaking needs. Within this overall framework, fellows List of Fellows 74 undertake their own research in a free atmosphere, building organic linkages with other current research. Furthermore, RIETI Organization & Others 81 incorporates the knowledge and insights of outside experts into its research through symposiums and other forums. RIETI thus contributes to policy debates and formulation through the built-in Abbreviations synergy in its research and its proactive dissemination of its research,

RIETI：Research Institute of Economy, Trade and Industry, IAA leading to policy recommendations. For the realization of a flexible and interdisciplinary research environment, a diverse group of METI：Ministry of Economy, Trade and Industry fellows are engaged in research at RIETI. In addition to full-time CRO：Chief Research Officer fellows, RIETI also appoints part-time fellows consisting of Faculty SRA：Senior Research Advisor Fellows who concurrently hold positions at universities and PD Program Director ： Consulting Fellows who concurrently hold positions at METI, other SF：Senior Fellow ministries, government agencies and organizations.

F：Fellow

FF：Faculty Fellow The world is changing at a blistering pace. To deal with these changes and build a Japanese society that is mature as well as CF：Consulting Fellow energetic, Japan needs to craft policy backed by research that breaks VF：Visiting Fellow out of conventional frameworks. RIETI will continue to provide VS：Visiting Scholar theoretical backing and knowledge networks efficiently and RC Research Coordinator ： effectively to authorities in their work to formulate policy. We will RAs：Research Associate continue to work toward our mission of strengthening and improving the quality of policymaking capacities and helping to invigorate policy discussions. Messages from the Chairman and the President

The Japanese economy in fiscal 2014 started on a sluggish tone following the consumption tax rate hike in April, but the decline subsequently began showing signs of bottoming out as a weak yen and low crude oil prices helped boost corporate earnings. In fiscal 2015, the upward wage trend is continuing, and the economy is on a solid recovery path. However, despite the upturn in economic performance, the Japanese economy remains fraught with many challenges. Weighted by mounting deficits, Japan’s fiscal health is in a serious condition. Many structural problems, including demographic challenges of low fertility and an aging population, remain largely unaddressed. The vitality of businesses has improved in tandem with the economic recovery. However, in order to further invigorate the business sector, the government needs to lift unnecessary restrictions to reduce constraints on business activities. It is also crucial for companies to pursue organizational reform and address other management issues. In fiscal 2014, we continued to conduct research in a wide range of policy areas including the economy and finance, social security, human capital, energy and the environment, and international trade, which resulted in a large number of research papers. Also, as part of our efforts to disseminate our research findings, we hosted or co-hosted symposiums and seminars on topical economic subjects as well as other themes such as productivity, human capital, and energy. We are also placing a significant emphasis on our collaboration with overseas research institutes as well as on the development of databases for areas relevant to our research such as the economy, industry, and livelihood, and those databases are made available to researchers including those outside RIETI. In fiscal 2014, we updated and expanded the existing databases. We also hosted an international symposium that presented research findings based on data collected in the Japanese Study of Aging and Retirement (JSTAR) survey, a large-scale panel survey of Japanese elderly people, which has been carried out four times so far. In fiscal 2015, we continue to focus on key economic issues both within and outside Japan, conducting research that contributes to economic and industrial policy making — the very mission of RIETI — and delivering research findings in a timely manner.

Lastly, on behalf of RIETI, I would like to thank all who have supported us and ask for your continued support and encouragement. May 2015 NAKAJIMA Atsushi Chairman

Under the third medium-term plan covering the five-year period starting in April 2011, RIETI has established its mission to undertake theoretical and empirical research to create a grand design of putting the Japanese economy on a growth path and solidifying sustainable growth in the future. In fiscal 2015, which is the end of the five-year period, we will conduct research activities by invariably keeping in mind our three Priority Viewpoints: (1) incorporating the growth of the world economy, (2) developing new growth areas, and (3) responding to changes in society and creating new economic and social systems for sustainable growth. The first viewpoint reflects the importance of incorporating the growth of the world economy—particularly emerging Asia that has achieved remarkable development in recent years—to promote trade, investment, and business activities by leveraging Japan's scientific and technological capabilities. The second viewpoint represents the importance of theoretically and empirically analyzing research and development (R&D) policy and productivity improvement as a way to help develop new growth industries, particularly in areas related to green innovation and life innovation, by taking advantage of Japan's strength and social conditions. Finally, the third viewpoint exhibits the importance of overcoming a range of constraints we face today, such as low birthrate and an aging population, deteriorating fiscal health, the need to protect the environment, as well as building sound economic and social systems able to meet the changing needs of society in an effort to support the sustainable growth of our country. Cognizant of these three Priority Viewpoints, we have been comprehensively conducting research that is conducive to ensuring our country's sustainable growth this century in close collaboration with researchers from outside RIETI, policymakers in Japan, as well as with overseas researchers including those from other Asian countries, the United States, and Europe. Amid the rapid development of globalization and technological innovation, RIETI will dedicate itself to advancing research from the mid- and long-term points of view on the grounds that Japan will be able to strive for a new goal of economic development accompanied by recovery from damage due to the Great East Japan Earthquake. May 2015 FUJITA Masahisa President

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 01 Overview of

Fiscal 2014 Activities Three Priority Viewpoints on economic and industrial policies to be kept in mind when carrying out research activities: The five years from fiscal 2011 to fiscal 2015 (1) Incorporating growth of the world economy; (2) Developing new growth areas; and constitute the period of RIETI's 3rd medium-term (3) Responding to changes in society and creating new plan, in which RIETI's primary mission is to provide economic and social systems for sustainable growth theoretical support for a grand design to put the Research Programs No. of Research Projects Program Director Japanese economy firmly on a growth track. To in Fiscal 2014 under the Program International Trade and WAKASUGI Ryuhei, FF 8 accomplish this mission, RIETI has established a I investment International ITO Takatoshi, FF 5 research framework of nine research programs, II Macroeconomics under each of which multiple research projects are III Regional Economies HAMAGUCHI Nobuaki, FF 5 conducted. IV Technology and Innovation NAGAOKA Sadao, FF 7 V Raising Industrial and FUKAO Kyoji, FF 7 In fiscal 2014, the fourth year of the 3rd medium-term Firm Productivity VI New Industrial Policy OHASHI Hiroshi, FF 7 plan, RIETI’s previously commenced research went Human Capital TSURU Kotaro, FF 7 even deeper. Additionally, while keeping an eye on VII Social Security, Taxation, developments in the economy in Japan and abroad, we VIII and Public Finance FUKAO Mitsuhiro, FF 7 Policy History and actively conducted research and disseminated IX Policy Assessment TAKEDA Haruhito, FF 3 research fiinnddiinnggs concerning a wiidde range of policy SP Special Projects 6 Total number of 62 fields, including tradead policyy,, financnan ing, corporate Research Projects prp oductivity, energy, huh man capital,ta and social secus rity. 1.2 Research papers The following are the rresearchh andand publicc rerelalations A total of 163 research papers (discussion papers [DP] and policy activities RIETI introduced inn fiscalsc 2001144 discussion papers [PDP]) were published. (titleit s and affiliations are as of the day of the events). DPs are compilations of theoretical, analytical, and empirical research findings written in the form of academic journals. More DPs were written in English than in Japanese (93 in English 2014 versus 48 in Japanese), reflecting our intention to disseminate them globally. On the other hand, there were more PDPs written Research Activities in Japanese than in English (two in English versus 20 in 1. Japanese), as they are designed to contribute to policy discussions in a timely manner. These papers go through an internal review 1.1 Deepening of the research framework process before being released in principle. In the 3rd medium-term plan, RIETI put in place nine research All DPs are accompanied by non-technical summaries that briefly programs covering a broad range of policy areas, including trade encapsulate the policy implications derived from analysis. For policy, industrial policy, and economic policy, bearing in mind at some DPs, a “Research Digest” is prepared utilizing interviews all times of the three priority viewpoints on the economic and with the authors to condense in a readily comprehensible manner industrial policies indicated below that the government has the perspectives adopted in undertaking the research, the key recommended to be reflected in research. Leading experts in points of the research, and the policy implications. An article of respective research fields serve as program directors and Research Digest is used as a vehicle for disseminating high- supervise multiple research projects conducted by fellows under quality research results in academic fields. the program. They also take steps through opportunities such as a brainstorming workshop at the launch of each project and interim report meetings to ensure that the plans and contents of research projects are mutually and organically interacted. Fifteen new projects were launched in fiscal 2014, adding to the 47 projects carried forward from fiscal 2013 (see “Research Activities” on p.7).

02 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 1.3 Research cooperation RIETI has been an active participant in research exchanges since Public Relations Activities 2007, a prime example of which is its organization of 2. international workshops with the Centre for Economic Policy Research (CEPR), a leading European research network. Since 2.1 Symposiums, workshops, and seminars 2012, articles by researchers from the two organizations have RIETI held 30 symposiums, workshops, and seminars in fiscal been published on a reciprocal basis on RIETI’s website and 2014 (excluding BBL seminars). These provided excellent CEPR’s policy portal VoxEU.org, and a total of 21 articles were opportunities for reporting research findings and policy shared in fiscal 2014. Furthermore, in fiscal 2014, RIETI and recommendations and generally sharing ideas and other CEPR exchanged memorandums of understanding on research information. They were led by notable researchers and leading cooperation. figures in a variety of fields, including Professor James J. HECKMAN of the University of Chicago, a Nobel laureate in Visiting scholars from the United States’ Council on Foreign economics. The events hosted by RIETI include Third World Relations (CFR) were hosted by RIETI under a memorandum of KLEMS Conference / RIETI World KLEMS Symposium, which understanding on cooperation between the two organizations. An was held on May 19-20, 2014. A number of topics were intern from Harvard University also was hosted. addressed at those events, including productivity, social security, strategies for economic growth, corporate governance, Joint research with China’s Development Research Center (DRC) innovation, international trade, and energy. In addition, 64 has continued. As well as this, RIETI held workshops with a lunchtime BBL seminars were held, providing a vehicle for active variety of other research institutes as part of its research discussion transcending the boundaries between business, collaboration activities. academia, and government. Highlights of these events are described below (Also see “Symposiums, Workshops, and Seminars” on p. 59).

January 16, 2015 CEPR-RIETI Workshop Labour Market Policy for Economic Growth James J. HECKMAN (Henry Schultz Distinguished Service Professor of Economics, The University of Chicago) delivers a lecture at the seminar. October 8, 2014 RIETI Special Seminar "Creating Capabilities" by Nobel Prize-winning economist Professor James J. HECKMAN

RIETI-JSTAR Symposium Japan's Future as a Super Aging Society: International comparison of JSTAR datasets (December 12, 2014)

RIETI has been conducting a comprehensive survey of elderly people based on an international standard—the Japanese Study of Aging and Retirement (JSTAR)—since 2007. This panel data survey is designed to ensure comparability with preceding large-scale panel data surveys conducted in the United States and Europe. It is also part of an international project continuously A column written by KAWASE Tsuyoshi, FF on VoxEU.org researching the diverse information available on the economic, health, family, and social conditions of Japanese elderly from an interdisciplinary perspective.

This policy symposium brought together RIETI’s JSTAR

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 03 research team as well as researchers from around the world who have led companion studies in various countries, including the Highlight Seminars United States, United Kingdom, continental Europe, and China. The Highlight Seminars series was started in fiscal 2012 to These experts presented the status of the elderly in each country, disseminate timely research results on policy issues of great as based on their data, along with presentations of research public interest and discuss them in great detail. RIETI held four findings. Moreover, speakers introduced the kinds of policies that such seminars in fiscal 2014, and Chairman NAKAJIMA Atsushi are being written, according to their findings. Participants took charge as the moderator in all seminars. discussed the true picture of the elderly in Japan as revealed by earlier JSTAR studies and the resulting implications for social The 11th Highlight Seminar, January 30, 2015 security reform in Japan in the future. “What is the New Direction of the Japanese Economy and Industry?” http://www.rieti.go.jp/en/events/14121201/info.html From left to right, OHASHI Hiroshi (PD and FF), KOBAYASHI Keiichiro (FF)

The 10th Highlight Seminar, November 10, 2014 “Japan-China Economic Relations: Challenges and future directions” From left to right, KAWAI Masahiro (SRA), WAKASUGI Ryuhei (SRA, PD and FF)

RIETI World KLEMS Symposium Growth Strategy after the World Financial Crisis (May 20, 2014)

In this symposium, discussions on the theme of a growth strategy after the world financial crisis were made from a broad The 9th Highlight Seminar, September 5, 2014 perspective. In the first session, Professor Dale W. JORGENSON “New Growth Strategy: Rural economy vitalization of Harvard University discussed the World KLEMS Initiative, and aggressive agriculture” and RIETI President FUJITA Masahisa addressed the evolving From left to right, HAMAGUCHI Nobuaki (PD and FF), YAMASHITA Kazuhito (SF) spatial economy of the Asia-Pacific and the growth strategy. The second half of the program was a panel discussion, in which leading economists from Japan, Asia, Europe, and the United States exchanged their views and ideas on topics such as sustainable productivity, structural change to enhance growth, and risk factors for sustainable growth. http://www.rieti.go.jp/en/events/14052001/info.html

The 8th Highlight Seminar, July 2, 2014 “Prices and Economic Performance in Japan after the Consumption Tax Hike” From left to right, FUKAO Mitsuhiro (PD and FF), WATANABE Tsutomu (Professor, Graduate School of Economics, Faculty of Economics, The University of Tokyo)

From left to right, Dale W. JORGENSON (Samuel W. Morris University Professor, Harvard University), FUJITA Masahisa (President and CRO, RIETI / Professor, Konan University / Adjunct Professor, Institute of Economic Research, Kyoto University)

04 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Brown Bag Lunch Seminars (BBL Seminars) 2.2 Publications RIETI invited intellectuals from Japan and overseas to serve as Four books compiling RIETI's research results were published in lecturers during these lunchtime seminars that offer a venue for fiscal 2014 (see the list of publications on p. 54) discussions with policy officials, academics, journalists, . diplomats, and others on various policy issues. BBL seminars covered a wide range of subjects such as small and medium enterprises (SMEs) and ventures, international trade policies, industrial policies, the Chinese economy, international development and investments, innovation, intellectual properties and patents, the global economy, finance, energy and Intangibles, Market Failure environment, and so forth (see “BBL Seminars” on p.71). and Innovation Performance Edited by Ahmed BOUNFOUR, MIYAGAWA Tsutomu（ FF） December 19, 2014 KONISHI Yoko (SF, RIETI) “Overview of Measuring Productivity: Accurate evaluation of technology”

Macro-performance of Small and Medium Enterprises July 2, 2014 Written by GOTO Yasuo (SF) TAMAKI Rintaro (Deputy Secretary-General and Chief Economist, OECD) “Shifting Gear: Policy challenges for the next 50 years”

International Economics of June 19, 2014 SEKIYAMA Kazuhide (Director and Representative Executive Officer, Spiber Inc.) Outsourcing: Changing global trade patterns and a microdata “Creation of Innovation through University Ventures” analysis of Japanese firms

Written by TOMIURA Eiichi（FF）

April 4, 2014 Elhanan HELPMAN (Galen L. Stone Professor of International Trade, Harvard University) “Globalization and Inequality” Economic Analysis of Working Hours: Prospects for a working style in a super-aging society Written by YAMAMOTO Isamu (FF), KURODA Sachiko

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 05 2.3 RIETI Highlight PR magazine 2.4. Website RIETI Highlight, a PR magazine introducing RIETI’s major The RIETI website is operated in three languages: Japanese, activities, is published on a quarterly basis, together with a English and Chinese. It offers a steady stream of the latest special English-language edition. Each issue presents topics of a information on RIETI activities—notices of symposiums and timely nature in a “special feature,” and the topics covered in the seminars, newly released research papers and non-technical fiscal 2014 quarterly editions included corporate governance, summaries, columns by fellows, columns by renowned creating and displaying capabilities, raising productivity, and researchers worldwide entitled “Perspectives from Around the economics under globalization. The special edition gave English- World,” etc.—and it is seeing an increasing number of visitors. language descriptions of RIETI’s activities in fiscal 2014, especially on its key projects and research results, and Among the topics that particularly interested site visitors in fiscal symposiums and seminars in which eminent researchers 2014 were the Chinese economy, women’s participation in the participated. Although RIETI conducts academically advanced workforce, low birthrate and depopulation, and issues in research projects, RIETI Highlight publishes articles on the Abenomics. We are also taking advantage of the growing variety projects and their research findings in a manner that is easily of tools to publicize our research findings. For example, we post understood even without expert knowledge. The magazine also contents on our Facebook page, and in July 2014, we began adopts an editorial design that is easy to view in order to draw the posting videos of RIETI events on our channel “rietichannel” on readers’ attention. (see “Publicity Materials” on p. 58). YouTube (See “Website” on p. 57).

Website (http://www.rieti.go.jp/en/)

Quarterly issue

Facebook (https://www.facebook.com/en.RIETI)

Special issue

06 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Research Activities

Programs

I International Trade and investment

II International Macroeconomics

III Regional Economies

IV Technology and Innovation

V Raising Industrial and Firm Productivity

VI New Industrial Policy

VII Human Capital

VIII Social Security, Taxation, and Public Finance

IX Policy History and Policy Assessment

SP Special Projects

独立行政法人 経済産業研究所 年次報告書 2013/4–2014/3 07 List of Research Projects

Program I International Trade and Investment Project Title Project Leader Page I-1 Global Markets and Japan's Industrial Growth WAKASUGI Ryuhei FF 10 I-2 Empirical Analysis of Trade Policy Preferences at the Individual Level in Japan TOMIURA Eiichi FF 10 I-3 Trade and Industrial Policies in a Complex World Economy ISHIKAWA Jota FF 11 I-4 Empirical Analysis on Determinants and Impacts of the Formation of Firm Networks TODO Yasuyuki FF 11 I-5 Economic Impacts of Free Trade Agreements: The case of Japan URATA Shujiro FF 12 I-6 Comprehensive Research on the Current International Trade/Investment System (pt.II) KAWASE Tsuyoshi FF 12 I-7 A Study on Trade/FDI and the Environment/Energy JINJI Naoto FF 13 The Structural Analysis of Global Governance over International Economic Law: Study on correlative MAMIYA Isamu FF / I 8 13 - relationship in conflicts between policies, soft laws, and non-governmental entities KOMETANI Kazumochi CF

Program VII International Macroeconomics Project Title Project Leader Page II -1 Research on Exchange Rate Pass-Through ITO Takatoshi FF 14 II -2 Exports and the Japanese Economy: Experiences in the 2000s and the lessons for the future IWAISAKO Tokuo FF 14 II -3 Research on Currency Baskets OGAWA Eiji FF 15 II -4 Macroeconomic Analysis on the Public Debt, Deflation, and Other Related Issues KOBAYASHI Keiichiro FF 15 II -5 East Asian Production Networks, Trade, Exchange Rates, and Global Imbalances Willem THORBECKE SF 16

Program III Regional Economies Project Title Project Leader Page III -1 Restoration from Earthquake Damage and Growth Strategies of the Japanese Regional Economy HAMAGUCHI Nobuaki FF 17 III -2 Spatial Economic Analysis on Regional Growth TABUCHI Takatoshi FF 17 III -3 Seeking Sustainable Regional Economies in the Economic Globalization Age NAKAMURA Ryohei FF 18 III -4 Formation of Economic Regions and its Mechanism: Theory and evidence MORI Tomoya FF 18 III -5 Geospatial Networks and Spillover Effects in Inter-organizational Economic Activities SAITO Yukiko SF 18

Program VIV Technology and Innovation Project Title Project Leader Page IV -1 Research on Innovation Process and its Institutional Infrastructure NAGAOKA Sadao FF 20 IV -2 Empirical Studies on "Japanese-style" Open Innovation MOTOHASHI Kazuyuki FF 20 IV -3 The Role of Public Research Institutions in the Japanese National Innovation System GOTO Akira FF 21 IV -4 Innovation, Incentives, and Organizations ITOH Hideshi FF 21 IV -5 Standards and Intellectual Property AOKI Reiko FF 21 IV -6 Health Policy and Innovation IIZUKA Toshiaki FF 22 Study on Technology Know-how and its Protection via Questionnaire Survey on the Japanese WATANABE Toshiya FF IV -7 Manufacturing Industry 22

Program V Raising Industrial and Firm Productivity Project Title Project Leader Page V-1 East Asian Industrial Productivity FUKAO Kyoji FF 23 V-2 Study on Intangible Assets in Japan MIYAGAWA Tsutomu FF 24 V-3 Regional-Level Japan Industrial Productivity Database: Database Refinement and Its Analysis TOKUI Joji FF 24 KWON Hyeog Ug FF / 4 Analysis on Service Industries: Productivity, Economic Welfare, and Policy Evaluation 25 V- INUI Tomohiko FF V-5 Competitiveness of Japanese Firms: Causes and Effects of the Productivity Dynamics KIYOTA Kozo FF 25 V-6 Decomposition of Economic Fluctuations for Supply and Demand Shocks KONISHI Yoko SF 26 V-7 Evaluating International Competitiveness NOMURA Koji FF 26

08 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Program VI New Industrial Policy Project Title Project Leader Page VI -1 Basic Research for a New Industrial Policy OHASHI Hiroshi FF 27 Issues Faced by Japan's Economy and Economic Policy Part III: YOSHIKAWA Hiroshi FF VI -2 Heterogeneity among economic agents 27 VI -3 Study on Corporate Finance and Firm Dynamics UESUGI Iichiro FF 28 VI -4 Energy and Industrial Structural Change after the Fukushima Nuclear Accident MANAGI Shunsuke FF 28 KAWAHAMA Noboru FF / 5 Globalization, Innovation, and Competition Policy 29 VI - OHASHI Hiroshi FF Agricultural Policy Reform Aimed at Competitive Agriculture in the Age of Globalization and Decreasing YAMASHITA Kazuhito SF VI -6 Population 29 VI -7 Price Network and Dynamics of Small and Medium Enterprises AOYAMA Hideaki FF 29

Program VIIV Human Capital Project Title Project Leader Page VII -1 Reform of Labor Market Institutions TSURU Kotaro FF 30 Economic Analysis of Human Resource Allocation Mechanisms within the Firm: Insider econometrics OWAN Hideo FF VII -2 using HR data 30 VII -3 Fundamental Research for the Revival of a Vibrant Economy and Society in Japan NISHIMURA Kazuo FF 31 VII -4 The Changing Japanese Labor Market: A perspective and desirable policy responses KAWAGUCHI Daiji FF 31 VII -5 Research Project on Mental Health from the Perspective of Human Capital 2 SEKIZAWA Yoichi SF 31 VII -6 Labor Market Analysis Using Matched Employer-Employee Panel Data YAMAMOTO Isamu FF 31 HIGUCHI Yoshio FF / 7 The Effect of Diversity on Economic Growth and Business Competitiveness 32 VII - KODAMA Naomi CF

Program VIII Social Security, Taxation, and Public Finance Project Title Project Leader Page VIII -1 A Cost-Benefit Analysis of Fiscal Consolidation Measures FUKAO Mitsuhiro FF 33 ICHIMURA Hidehiko FF / 2 Toward a Comprehensive Resolution of the Social Security Problem: A new economics of aging 33 VIII - SHIMIZUTANI Satoshi CF VIII -3 Optimal Immigration Policy for Japan NAKAJIMA Takanobu FF 34 VIII -4 Social Security System to Revive Economic Vitality and Improve the Quality of Life NAKATA Daigo SF 34 VIII -5 Theoretical and Empirical Analyses on Incidences of Corporate Income Taxation DOI Takero FF 34 VIII -6 On Monetary and Fiscal Policy under Structural Changes and Societal Aging FUJIWARA Ippei FF 35 A Socioeconomic Analysis of Households in Environments Characterized by Aging Population and Low YIN Ting F VIII -7 Birth Rates 35

Program IX Policy History and Policy Assessment Project Title Project Leader Page IX -1 Historical Study on Japan's Trade and Industrial Policy: From an international perspective TAKEDA Haruhito FF 36 IX -2 History of the Policies of the Nuclear and Industrial Safety Agency KIKKAWA Takeo FF 36 IX -3 Historical Evaluation of Industrial Policies OKAZAKI Tetsuji FF 36

Special Projects SP Special Projects Project Title Project Leader Page SP-1 Frontiers of Analysis on Corporate Governance: Growth, value creation and corporate governance MIYAJIMA Hideaki FF 38 SP-2 RIETI Data Management Project ODA Keiichiro SF 39 Research on the Liberalist Reforms of the Public-Private Relationship and the Establishment of the 3 USHIRO Fusao FF SP- Third Sector in Japan 40 Survey of International Trends and Discussions in Greenhouse Gas Emission Reduction Projects 4 KAINOU Kazunari F SP- under the UN Framework Convention on Climate Change 40 SP-5 Economic Analysis of Entrepreneurship MATSUDA Naoko F 41 SP-6 An Empirical Study on Economic Resilience and Maintenance of Economic Strength Against Disasters SAWADA Yasuyuki FF 41

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 09 Program International Trade and Investment

I I ： International Investment Trade and Program Director investment (FDI) influence domestic employment, innovation, and WAKASUGI Ryuhei industrial growth still remain as research subjects, while studies on the stylized facts of the internationalization of Japanese firms (i.e. export, outward FDI, and offshore outsourcing) and the factors to The growth of Japan's economy is inseparable from accelerate it have been aggregated so far. In addition, there are few studies that investigate the effect of the entry of foreign firms into the changes in the global economy. This program, Japanese market through the transaction of goods, services, and focusing on the relationship between the globalization technology and the effect of inward FDI on Japanese industries. This project focuses on the following subjects: (1) the entry of foreign of firms (i.e., exports and overseas production) and firms, the Japanese market environment, and industrial growth in Japan; (2) the effects of firms' networks and offshoring, tax systems, growth of the Japanese economy, will study R&D and and research and development (R&D) on the internationalization and innovation of globalizing firms, international growth of Japanese firms; and (3) the effect of the growing production level of Japanese firms in China on economic growth in technology transfer, employment, and industrial both China and Japan. The research results in this project are expected to contribute insightful knowledge for industrial clusters from theoretical and empirical perspectives, policymaking. together with studying international trade and

investment rules (i.e., the WTO and regional trade Major Research Results agreements) empirically and from both legal and institutional perspectives. Furthermore, it also will Discussion Papers ▶Impact of Extensive and Intensive Margins of FDI on study the impacts on firms and industries of the Corporate Domestic Performance: Evidence from Japanese automobile parts suppliers (MATSUURA Toshiyuki) (DP external shock resulting from the Great East Japan 15-E-032) Earthquake, changes in production networks and the ▶Impacts of the World Trade Organization on Chinese structure of trade following recovery, and the effects Exports (WAKASUGI Ryuhei and ZHANG Hongyong) (DP 15-E-021) of restrictive energy and material supply on structural ▶Industrial Agglomeration and Dispersion in China: Spatial changes in the Japanese economy. reformation of the "workshop of the world" (ITO Asei) (DP 14-E-068)

▶What Types of Science and Technology Policies Stimulate Innovation? Evidence from Chinese firm-level data (ITO Asei, Zhuoran LI and Min WANG) (DP 14-E-056)

▶How Does Agglomeration Promote the Product Innovation of Chinese Firms? (ZHANG Hongyong) (DP 14-E-022)

▶The Effect of Moving to a Territorial Tax System on Profit Repatriations: Evidence from Japan (HASEGAWA Makoto and KIYOTA Kozo) (DP 15-J-008) Introduction of Research Projects I I-2 I-1 Empirical Analysis of Trade Policy Preferences at Global Markets and Japan's Industrial Growth Project Leader: WAKASUGI Ryuhei FF the Individual Level in Japan Project Leader: TOMIURA Eiichi FF   ＜Overview＞ The integration of the Japanese economy with global markets is the ＜Overview＞ most important aspect for industrial growth in Japan where potential Trade policy becomes increasingly critical for Japan in the domestic demand is not expanding. The issues on how the interdependent world with uncertainty in global trade liberalization. internationalization of Japanese firms via exports and foreign direct In spite of the gains from trade supported unanimously by

10 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 economists, opinions on trade policy widely vary among individuals, ▶The Quality of Distance: Quality sorting, Alchian-Allen effect, I ： International Investment Trade and depending on income, skill, industry, and many other background and geography (TAKECHI Kazutaka) (DP 15-E-018) factors. This research project empirically explores how various ▶The Price of Distance: Pricing to market, producer individual characteristics are related with trade policy preferences. heterogeneity, and geographic barriers (KANO Kazuko, Findings from our survey on 10,000 individuals will reveal KANO Takashi and TAKECHI Kazutaka) (DP 15-E-017) regularities that will be informative for policy planners not only in Japan but also in many other developed economies. ▶Trade Liberalization and Aftermarket Services for Imports (ISHIKAWA Jota, MORITA Hodaka and MUKUNOKI Hiroshi) (DP 14-E-065) Major Research Results Workshop “One-day Trade Workshop” (December 23, 2014) Discussion Papers ▶Trade Policy Preferences and Cross-Regional Differences: Evidence from individual-level data of Japan (ITO Banri, MUKUNOKI Hiroshi, TOMIURA Eiichi and WAKASUGI I-4 Ryuhei) (DP 15-E-003) Empirical Analysis on Determinants and Impacts of the Formation of Firm Networks ▶Reciprocal Versus Unilateral Trade Liberalization: Project Leader: TODO Yasuyuki FF Comparing individual characteristics of supporters (TOMIURA Eiichi, ITO Banri, MUKUNOKI Hiroshi and WAKASUGI Ryuhei) (DP 14-E-067) ＜Overview＞ ▶Trade Policy Preferences and Cross-Regional Differences: This project empirically examines how the networks of firms, such as Evidence from individual-level data of Japan (ITO Banri, supply chain networks and industrial-academic-government MUKUNOKI Hiroshi, TOMIURA Eiichi and WAKASUGI collaboration, are formulated and how they affect the economy, using Ryuhei) (DP 14-J-052) firm-level data, such as that for firms affected by the Great East Japan Earthquake and the 2011 Thailand floods and for small and micro enterprises in less developed countries. From these analyses, this project aims at providing new academic findings on firm I-3 networks that can promote economic growth and improve social Trade and Industrial Policies in a Complex World welfare as well as policy implications based on these findings. Economy Project Leader: ISHIKAWA Jota FF Major Research Results

＜Overview＞ As globalization proceeds, the world economy is becoming more Discussion Papers complex. While multilateral negotiations under the World Trade ▶The Strength of Long Ties and the Weakness of Strong Organization (WTO) are stagnating, bilateral negotiations such as Ties: Knowledge diffusion through supply chain networks regional trade agreements and bilateral investment treaties remain (TODO Yasuyuki, Petr MATOUS and INOUE Hiroyasu) (DP dominant. Although tariffs were reduced, other trade costs have not 15-E-034) necessarily fallen. Trade liberalization in services is slow relative to ▶ The Effects of Endogenous Interdependencies on Trade that in goods. Firms now engage in various cross-border transactions. Network Formation across Space among Major Japanese In particular, we see various hybrid forms of organization and Firms (Petr MATOUS and TODO Yasuyuki ) (DP 14-E-020) competition in which domestic and foreign firms cooperate in some phases of production and then compete in product markets. The objective of this research project is to explore trade and industrial policies in this complex world economy and obtain useful implications for economic growth.

主な研究成果Major Research Results

Discussion Papers ▶Aid for Trade and Global Growth (NAITO Takumi) (DP 15-E-025)

▶Comparative Advantage, Monopolistic Competition, and Heterogeneous Firms in a Ricardian Model with a Continuum of Sectors (ARA Tomohiro) (DP 15-E-023)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 11 I ： International Investment Trade and I-5 I-6 Economic Impacts of Free Trade Agreements: Comprehensive Research on the Current The case of Japan International Trade/Investment System (pt.II) Project Leader: URATA Shujiro FF Project Leader: KAWASE Tsuyoshi FF

＜Overview＞ ＜Overview＞ The objective of this research is to investigate the impacts of Japan's The main subject of this research project for this period is free trade agreements (FTAs) on the Japanese economy, in order to international economic law on state capitalism. Due to the recent rise provide the Japanese government with useful information in of state-owned enterprises (SOE) and sovereign wealth funds (SWF) formulating trade policy. The analyses will take ex-ante and ex-post mainly by emerging economies, a new set of international regulatory forms. The ex-ante analysis is to examine the possible impacts of frameworks that differs from the conventional one for a market FTAs, which are still in negotiation or under study, by conducting economy is urgently in need. Currently, however, the World Trade simulation analyses using the computable general equilibrium Organization (WTO) Agreement, economic partnership agreements models. Specifically, we intend to analyze the impacts of various (EPAs), and investment treaties do not provide effective trade, FTAs including the Trans-Pacific Strategic Economic Partnership investment, and competition rules on this new phenomena, and Agreement (TPP) and the Regional Comprehensive Economic philosophical discrepancies between developed countries and Partnership (RCEP). emerging economies render this issue as one of the least possible to reach a conclusion for in the ongoing Trans-Pacific Strategic The ex-post analysis is conducted by using the observed data after the Economic Partnership Agreement (TPP) negotiations. This project FTAs are enacted. This analysis is implemented in two steps. First, aims first to survey the status quo of laws on state capitalism, bearing we investigate the impacts of FTAs on the level of liberalization in in mind the precedent achievements in the International Monetary goods and service trade. Second, we examine the impacts of the Fund (IMF) and the Organisation for Economic Co-operation and change in the level of trade liberalization—the result of the first Development (OECD) and recent debates in the TPP or the stage—on trade flows in goods and services. Transatlantic Trade and Investment Partnership (TTIP) negotiations, and to propose possible regulatory frameworks or interpretation and application of relevant domestic/international law in force in order for optimal regulation. Major Research Results

This project also covers the studies on WTO case law and the legal Discussion Papers and economic analysis of international trade in cultural media Trade in Services and Japan's Bilateral FTAs: Empirics on ▶ products and relevant cross-border investment activities, both of their impacts (ISHIDO Hikari) (DP 15-E-012) which are continuing from the preceding period (2011-13). ▶Do People Support Compensation for Trade Liberalization? Evidence from a survey experiment in Japan (KUNO Arata) Major Research Results (DP 15-J-002)

Discussion Paper ADBI & RIETI Special Seminar ▶Clarification of Evolution of the Principle of Non- “Asia and Japan: Trading into the future” (2014/4/18) Discrimination under the WTO Agreement: Recent developments in case law and their implications for Members' policy space (KAWASE Tsuyoshi) (DP 15-J-004)

Policy Discussion Paper ▶[WTO Case Review Series No. 9] United States—Certain Country of Origin Labelling Requirements (DS384, 386): The impacts of country of origin labelling on international trade (NAIKI Yoshiko) (PDP 14-P-022)

From left to right, URATA Shujiro FF, NAKATOMI Michitaka CF

12 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 I ： International I-7 Investment Trade and A Study on Trade/FDI and the Environment/Energy Other research results in Program I Project Leader: JINJI Naoto FF ＜ Research results independent from any research  project ＞ ＜Overview＞ RIETI Seminar on International Economy This project mainly conducts empirical analyses on the relationship between international trade/foreign direct investment (FDI) and the “Portrait of Factory Asia: Production Network in Asia and its environment/energy at the firm-level and product-level. It is implication for growth - the smile curve” (December 11, 2014) motivated by the fact that Japanese firms have a competitive advantage in energy-saving technologies and environmentally friendly products whereas constraints from domestic energy supply and environmental regulations could affect their location choice and globalization strategy. The main issues in this project include: (1) globalization of firms and their energy efficiency/emissions; (2) the environmental impact of Japanese FDI and the environmental spillovers to local firms in the host countries; (3) international comparison of the environmental and energy consciousness of consumers and the analysis of standards and labeling, and; (4) the environmental effects of durable goods with addressing the issue of From left to right, TOMIURA Eiichi FF, WAKASUGI Ryuhei SRA PD FF, Professor trade in second-hand goods. / / Richard E. BALDWIN

I-8 ＜ Research results belonging to research projects The Structural Analysis of Global Governance over prior to Fiscal 2013 ＞ International Economic Law: Study on correlative relationship in conflicts between policies, soft laws, Project: Economic Analysis on Trade Agreements and non-governmental entities Project Leader: SATO Hitoshi CF Project Leader: MAMIYA Isamu FF

Sub-Leader: KOMETANI Kazumochi CF Discussion Paper  ▶How the Movement of Natural Persons Agreement Could Fuel FTAs (KOMORIYA Yoshimasa) (DP 14-E-041) ＜ Overview ＞ International rules, which have been developed in policy areas including international trade and investment protection, have recently set limitations on government measures in different Project: Pressing Problems of International Investment policy areas, including environmental and consumer protection, Law and consequently, concern has arisen over norms between Project Leader: KOTERA Akira FF international and domestic laws, or among international laws, conflicting with each other. Also, further diversification has Policy Discussion Paper been witnessed in subject matters, participating entities, binding authorities, and implementation measures. On the basis of ▶Services Negotiation and Plurilateral Agreements: TISA and progress in these international laws, we intend to conduct sectoral approach (NAKATOMI Michitaka) (PDP 14-P-023) research on individual policy fields with an aim to analyze the whole picture of international laws and global governance. It is expected that such analysis not only offers a perspective for capturing the whole structure of international laws, but also provides a solid basis for analyzing previous cases. Examples of those include the background of the long-stalled negotiations in the Doha Development Agenda (DDA) and post Kyoto Protocol as well as World Trade Organization (WTO) and investment agreements.

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 13 Program II International Macroeconomics Program Director risk employed by multinational firms, the objective of this project is ITO Takatoshi to elucidate the following: (i) clarify the impacts of commodity-level and corporate-level factors on pass-through on a macroeconomic level, and (ii) reassess the effects of deregulation of Japanese capital

II Amid rapidly advancing globalization, there is a need control in the 1990s on yen-denominated transactions and forecast ： International

Macroeconomics the effects of easing capital control in emerging countries on the to consider how the Japanese economy should take on international currency system. growth in emerging markets and realize balanced, sustainable growth within Asia. In addition to Major Research Results studying institutional infrastructures such as the role Discussion Papers of a currency basket in the Asia region, this program ▶Automobile Exports: Export price and retail price (YOSHIDA also will analyze various issues related to exchange- Yushi and SASAKI Yuri) (DP 15-E-024) Abenomics, Yen Depreciation, Trade Deficit, and Export rate pass-through and the choice of invoice currencies ▶ Competitiveness (SHIMIZU Junko and SATO Kiyotaka) (DP from both macroeconomic and corporate-level 15-E-020)

perspectives. Furthermore, it also will advance ▶Abenomics, Yen Depreciation, Trade Deficit and Export Competitiveness (SHIMIZU Junko and SATO Kiyotaka) (DP research spanning fields such as international trade 14-J-022) and macroeconomics, international finance, macro finance, corporate foreign-exchange risk II-2 management, and corporate finance. We will Exports and the Japanese Economy: Experiences in endeavor to propose ideal macroeconomic policies for the 2000s and the lessons for the future fiscal reconstruction, particularly their influence on Project Leader: IWAISAKO Tokuo FF exchange rates, as well as analyze the long-term ＜Overview＞ deflationary mechanism and explore ways of Following the Lehman Brothers collapse in fall 2008, the world overcoming it. economy fell into a severe recession along with a large contraction in international trade, known as the Great Trade Collapse. Although the Japanese economy was relatively unharmed from the global financial crisis, it subsequently experienced a large drop in output prompted by a decline in the exports demand from late 2008 to 2009. Our project investigates the propagation mechanism of the negative demand shock and the adjustment process of Japanese firms/industries during this period, utilizing detailed micro data. We also analyze why the Japanese economy's dependence on its exports largely increased during the period of mild recovery preceding the Lehman Brothers collapse, paying particular attention to the structural change of the Introduction of Research Projects Japanese industries and the effects of sharp appreciation of energy II prices in the 2000s. II-1 Research on Exchange Rate Pass-Through Major Research Results Project Leader: ITO Takatoshi FF

 Discussion Papers ▶Impact of Exchange Rate Shocks on Japanese Exports: ＜Overview＞ Quantitative assessment using a structural VAR model Through theoretical and empirical analysis of the microeconomic (IWAISAKO Tokuo and NAKATA Hayato) (DP 15-E-029) (corporate) behaviors that determine pass-through (i.e., export/import pricing, choice of invoice currency, and foreign exchange risk ▶Oil Price, Exchange Rate Shock, and the Japanese management) under the existence of a rational strategy on currency Economy (IWAISAKO Tokuo and NAKATA Hayato) (DP

14 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 15-E-028) RIETI-IWEP-CESSA Joint Workshop ▶Financial Shocks and Japan's Export Collapse during the “Industry-specific REER and Pass-Through Effect in Economic Global Financial Crisis: Evidence from bank-firm matched Integration between China and Japan” (December 13-14, data (UCHINO Taisuke) (DP 14-J-053) 2014)

▶Impact of Exchange Rate Shocks on Japanese Exports:

Related URLs II Quantitative assessment using the structural VAR model ： International Asian Monetary Unit (AMU) and AMU Deviation Indicators Macroeconomics (IWAISAKO Tokuo and NAKATA Hayato) (DP 14-J-051) ▶ http://www.rieti.go.jp/users/amu/en/index.html ▶Oil Price, Exchange Rate Shock, and the Japanese Economy (IWAISAKO Tokuo and NAKATA Hayato) (DP 14-J- 050)

II-3 Research on Currency Baskets Project Leader: OGAWA Eiji FF

＜Overview＞ Multiple currency swap agreements (CMIM) were created in Asia, and a surveillance unit (ASEAN Macro-Economic Research Office: AMRO) has started in Singapore. Under these circumstances, the Asian Monetary Unit (AMU), proposed by RIETI, will be expected to play an important role as a surveillance unit in the near future. The ▶Industry-Specific Nominal and Real Effective Exchange first purpose of this project is to hold meetings to discuss and bring a Rates in Asia concrete proposal on regional monetary cooperation with researchers http://www.rieti.go.jp/users/eeri/en/index.html from Japan, China, and Korea. In addition, a database containing the industry-specific nominal effective exchange rates and the industry- specific real effective exchange rates of Japan, China, and Korea has been published consistently since May 2011, and it has recently attracted increasing attention from policymakers.

The purpose of the research is not only to create a new standard on exchange rates in order to propose it as either an economic surveillance indicator or a policy indicator, but also to bring policy implications to future currency regimes in Asia by applying these indicators on macroeconomic analyses.

Industry-Specific Real Effective Exchange Rate Major Research Results

Discussion Papers II-4 ▶Assessing Asian Equilibrium Exchange Rates as Policy Instruments (MASUJIMA Yuki) (DP 15-E-038) Macroeconomic Analysis on the Public Debt, Deflation, and Other Related Issues ▶Effects of a Quantitative Easing Monetary Policy Exit Strategy on East Asian Currencies (OGAWA Eiji and WANG Project Leader: KOBAYASHI Keiichiro FF Zhiqian) (DP 15-E-037)

Overview ▶Industry-specific Real Effective Exchange Rates in Asia ＜ ＞ (SATO Kiyotaka, SHIMIZU Junko, Nagendra SHRESTHA As stock prices are booming and the yen is depreciating due to the and Shajuan ZHANG) (DP 15-E-036) monetary easing in the Abenomics policy, interest in the mechanism of persistent deflation is now renewed. On the other hand, fiscal expansion is now further accelerating the accumulation of public FY 2014 The Third Hitotsubashi University Policy debt. Economic and policy analysis on public debt accumulation and persistent deflation in Japan in the long-run are very challenging Forum topics as they are not easily accounted for by the existing economic “Trends in Trade and Current Account, and the Future of the theory. We first analyze the relation between the expansion of public Japanese Economy” (March 5, 2015) debt and the decrease in economic growth. Analysis is done using

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 15 political economic models in the form of Acemoglu et al. and Exports (THORBECKE, Willem) (DP 14-E-049) macroeconomic models with credit constraint, in which the Ricardian ▶China-U.S. Trade: A global outlier (THORBECKE, Willem) equivalence is violated and capital accumulation is affected by the (DP 14-E-039) public debt. Based on these theoretical analyses, we argue for the interaction of public debt, economic growth, and deflation, and ▶Export Sophistication and Exchange Rate Elasticities: The derive some policy implications. Case of Switzerland (THORBECKE, Willem and KATO II ： Atsuyuki) (DP 14-E-031) International Macroeconomics

Major Research Results

Discussion Papers ▶Public Debt Overhang in the Heterogeneous Agent Model (KOBAYASHI Keiichiro) (DP 14-E-044)

▶There is No Natural Debt Limit with Consumption Tax (KOBAYASHI Keiichiro) (DP 14-E-043)

II-5 East Asian Production Networks, Trade, Exchange Rates, and Global Imbalances Project Leader: Willem THORBECKE, SF

＜Overview＞ East Asia is characterized by intricate production and distribution networks. Skilled workers in Japan, Taiwan, South Korea, and other places produce sophisticated, technology-intensive parts and components, ship them to China and countries in the Association of Southeast Asian Nations (ASEAN) for assembly by lower wage workers, and then re-export them largely outside of Asia. Exports from East Asia have been accompanied by large imbalances with the West. This project investigates how exchange rates affect trading patterns in East Asia and elsewhere, and how exports and production networks in the region are evolving. Exchange rates throughout the supply chain, in principle, should affect exports. This project thus examines how exchange rates in China, South Korea, Taiwan, Japan, and ASEAN member states affect East Asian exports. It also investigates how the appreciating yen between 2007 and 2012 and the weakening yen after November 2012 affected Japanese exports and imports and the profitability of Japanese firms. In addition, it culls lessons from the exchange rate policies of other countries such as Switzerland. The research further examines the product sophistication of East Asian exports. Is Japan close to the technological frontier? How far away are South Korea and Taiwan from Japan? How are ASEAN countries progressing at moving up the ladder of comparative advantage? To what extent are Asian economies comrades, and to what extent are they competitors, in their exports to the world? Finally, the project draws policy implications.

Major Research Results

Discussion Papers

▶Enjoying the Fruits of their Labor: Redirecting exports to Asian consumers (THORBECKE, Willem) (DP 15-E-016)

▶Measuring the Competitiveness of China's Processed

16 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Program III Regional Economies Program Director study: (1) whether the "group subsidy," introduced to assist the HAMAGUCHI Nobuaki restoration of damaged productive assets by the Great East Japan Earthquake (2011), has been able to choose beneficiaries appropriately through targeting and (2) the impact of a large natural This program will study urban, rural, and industrial disaster on the exit and entry of firms, which eventually transformed industrial agglomeration and the local economy in general in the growth viewing the regions of Japan in the context of affected area from the experience of the Great Hanshin-Awaji the global economy, and using this to develop policy Earthquake (1995). As for the regional growth strategy, we investigate: (3) the recent correlation between increasing recommendations and other outputs. Specifically, it demographic concentration and declining patent application and

explore the viability of the growth strategy through a geographic III will analyze, both theoretically and empirically, ： Economies dispersion of research and development, and (4) the transformation of Regional matters such as formation of domestic and supply chains and production distribution between overseas and within the country, with the latter being further divided between international regional systems through market metropolitan and peripheral areas, and discuss what policy measures should be taken in each area. mechanisms, the mechanisms of enterprise clustering, and the relationship between economic growth and Major Research Results urbanization. It will also consider regional policies that would be desirable from the perspectives of Discussion Papers ▶Natural Disasters, Industrial Clusters and Manufacturing national economic growth and maximizing policy Plant Survival (Matthew A. COLE, Robert J R ELLIOTT, effects, and also research the optimal sizes of regional OKUBO Toshihiro and Eric STROBL) (DP 15-E-008) ▶Supply Chain Internationalization in East Asia: Inclusiveness blocs and communities. Additional study will look at and risks (FUJITA Masahisa and HAMAGUCHI Nobuaki) (DP the ideal forms of the supply chains of Japanese firms 14-E-066) and the recovery of areas affected by the Great East Japan Earthquake. Furthermore, the ideal III-2 management strategies for outstanding small and Spatial Economic Analysis on Regional Growth medium-sized enterprises utilizing regional resources Project Leader: TABUCHI Takatoshi FF

and other advantages will be studied as well.  ＜Overview＞ While the world economy is rapidly globalizing and the service sector is steadily growing, the population in Japan has been declining due to aging demographics combined with a low birthrate. The purpose of this project is to clarify the driving forces of economic development in cities and regions under these economic environments. Because the systems of cities and regions are closely linked, we approach the urban economy from the perspective of Introduction of Research Projects globalization. Based upon new economic geography, search theory, III dynamic general equilibrium, tax competition, and spatial competition, we analyze spatial economy both theoretically and III-1 empirically, and propose socially desirable spatial policies. Restoration from Earthquake Damage and Growth Strategies of the Japanese Regional Economy Major Research Results Project Leader: HAMAGUCHI Nobuaki FF

 Discussion Papers ▶Endogenous Labor Supply and International Trade (AGO ＜Overview＞ Takanori, MORITA Tadashi, TABUCHI Takatoshi and This research aims at presenting evidence for policy discussions regarding two important issues for the current Japanese regional economy. Related to the restoration from earthquake damage, we

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 17 YAMAMOTO Kazuhiro) (DP 14-E-062) III-5 ▶Competitive Search with Moving Costs (KAWATA Keisuke, Geospatial Networks and Spillover Effects in Inter- NAKAJIMA Kentaro and SATO Yasuhiro) (DP 14-E-052) organizational Economic Activities Economic Geography, Endogenous Fertility, and ▶ Project Leader: SAITO Yukiko SF Agglomeration (MORITA Tadashi and YAMAMOTO Kazuhiro) (DP 14-E-045)  ＜Overview＞ After the experiences of the collapse of Lehman Brothers and natural III-3 mega-disasters, it is recognized that regional idiosyncratic shocks can Seeking Sustainable Regional Economies in the be propagated to the whole economy and cause macro-economic

III fluctuations. This means that economic activities of organizations are Economic Globalization Age ： strongly interconnected in a geospatially spread network. Strong Economies Regional Project Leader: NAKAMURA Ryohei FF connections between organizations are realized in the propagation of negative shocks on the one hand while causing competitiveness on  the other. Policy makers have pointed out the application of the ＜Overview＞ "power of connections." In the midst of economic globalization, international, inter-industry transactions as well as intra-country, inter-regional transactions and In this project, we focus on inter-organizational connections such as resulting location behaviors are gradually having important meanings inter-firm transactions and knowledge spillovers. We will empirically for regional economies. Individual regional economies have their analyze network dynamics and spillovers in order to clarify the own roles according to their economic size and locational properties. mechanism of propagation of negative shocks and the causes of We investigate the successful inter-industrial relationships within a competitiveness. region to attain sustainable regional economies by applying the urban hierarchical model.

Based on regional properties, we conduct input-output/social Other research results in Program III accounting matrix (IO/SAM) analysis, computable general equilibrium (CGE) modeling, the new economic geography (NEG) Research results belonging to research projects approach, and the multiple equilibrium approach while trying new ＜ prior to Fiscal 2013 ＞ developments in methodology. Finally, we look for regional policies using several simulations of changing regional economic structures. Project: Studies on the Structure of Japanese Economic Space and Japanese Supply Chains Sustaining Growth Under Globalization and Disaster Risks III-4 Project Leader: HAMAGUCHI Nobuaki FF Formation of Economic Regions and its Mechanism: Theory and evidence Discussion Papers ▶Industrial Agglomeration in China: Case studies of the Project Leader: MORI Tomoya FF Chinese Silicon Valley and the coastal SEZ (KURITA  Kyosuke) (DP 14-J-035) ＜Overview＞ ▶Enhancing Enterprise Power through Exporting: Verification In this project, using data from Europe, the United States, and Asia, of the learning effect by exporting (KURITA Kyosuke) (DP we will show that city systems are characterized by a spatial fractal 14-J-034) structure in terms of city size distributions, industrial location patterns, as well as the transport network structure. In particular, among the hierarchical economic regions to be identified by the Project: Inter-organizational and Inter-inventors commodity flow surveys, we will show that city size distributions Geographical Proximity and Networks exhibit the common power law. These empirically identified Project Leader: SAITO Yukiko SF endogenous regularities in turn are reproduced theoretically by spatial economic models. Finally, policy simulations will be conducted to investigate how these regularities restrict the regional Discussion Papers industrial and transport policies. ▶Roles of Wholesalers in Transaction Networks (OKUBO Toshihiro, ONO Yukako and SAITO Yukiko) (DP 14-E-059)

▶Localization of Knowledge-creating Establishments (INOUE Hiroyasu, NAKAJIMA Kentaro and SAITO Yukiko) (DP 14-E-053)

18 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 ▶Supply Chain Disruptions: Evidence from the Great East Japan Earthquake (Vasco M. CARVALHO, NIREI Makoto and SAITO Yukiko) (DP 14-E-035)

▶Geography and Firm Performance in the Japanese Production Network (Andrew B. BERNARD, Andreas MOXNES and SAITO Yukiko) (DP 14-E-034) III ： Economies Regional

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 19 Program IV Technology and Innovation Program Director analysis serving evidence-based innovation policy making, exploiting NAGAOKA Sadao the two rounds of large scale surveys of inventors as well as complementary statistics. The study focuses on the design of the intellectual property system for innovation (institutional sources of The sources of innovation are the creation of new the variation of patent values in the United States and Japan, employee inventor rights, disclosure as knowledge source, and the knowledge and its exploitation to solve real-world patent system as seen by startups and foreign firms), research and problems. This program will develop original data on development (R&D) productivity (inventor life-cycle productivity, patents as a cluster, standard-based innovation), and university- innovation processes with a view toward improving industry collaborations (effects of the acquisition of legal person status by national universities, matching between industrial our understanding of such processes, including innovation and higher education). The project pursues international surveys of inventors in Japan, North America, and research collaborations with leading scholars abroad. Europe. Furthermore, it will conduct analysis from a global perspective so as to contribute to evidence- Major Research Results IV ： Technology and Innovation based policy formation conducive to technology Discussion Papers development and innovation. Specifically, the ▶Incentive Design for Inventors: Theory and empirical evidence (NAGAOKA Sadao, OWAN Hideo and ONISHI program will analyze a broad range of issues, Koichiro) (DP 14-J-044)

including an assessment of intellectual property ▶Scientific Sources of Corporate Inventions in Japan: Evidence from an inventor survey (KINUKAWA Shinya) (DP systems such as patent systems, knowledge transfer 14-J-038) and mobility of people across organizations, university-industry cooperation, technical standards IV-2 for innovation, collaboration in innovation, corporate Empirical Studies on "Japanese-style" Open Innovation organization and industrial organization to promote Project Leader: MOTOHASHI Kazuyuki FF

innovation, and international comparison of  entrepreneurship. ＜Overview＞ Although the innovation system in Japan has been said to be characterized by the "not invented here" (NIH) attitude primarily taken by large companies, a shift to open innovation involving external collaboration is becoming increasingly important given technological progress and more intense global competition. According to RIETI's new product development process survey, active research and development (R&D) collaborations with business partners, such as suppliers and customers, are found for Japanese firms. This pattern might be different from the concept of open innovation by Henry Chesbrough, which refers to technology Introduction of Research Projects transactions taking place in the open market. In this project, we IV conduct empirical research on "Japanese-style open innovation," and IV-1 draw some policy implications for science, technology and innovation policy in Japan. Research on Innovation Process and its Institutional

Infrastructure Major Research Results Project Leader: NAGAOKA Sadao FF

 Discussion Paper ▶Open Innovation Effects of Patent Applications: An empirical ＜Overview＞ study of inkjet technology patents (KINUKAWA Shinya) (DP This project aims at deepening our understanding of the innovation 14-J-039) process in Japan from an international perspective and at providing

20 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 METI-RIETI Symposium IV-4 “A New Paradigm of Manufacturing Evolving from 3D Printing Technology” (April 21, 2014) Innovation, Incentives, and Organizations Project Leader: ITOH Hideshi FF

 ＜Overview＞ The main purpose of this project is to understand how parties' incentives to engage in innovation activities are affected by various institutional features. We apply theories of incentives under asymmetric information and imperfect enforcement to incentive problems characterized by risk taking, limited performance measurement and verifiability, dynamic learning, trade-off between exploration and exploitation, and the importance of information generation and communication. We then examine implications and applications for legal rules, institutions, social norms, regulations, corporate governance, organizational structures, and compensation systems in Japan. IV ： Technology and Innovation

IV-3 IV-5 The Role of Public Research Institutions in the Standards and Intellectual Property Japanese National Innovation System Project Leader: AOKI Reiko FF Project Leader: GOTO Akira FF   ＜Overview＞ We study the role of standards and intellectual property as part of ＜Overview＞ global innovation and marketing strategies using a law and The aim of this project is to investigate the role of public research economics framework. The project includes case studies of product institutions (PRI) within Japan's national innovation system (NIS) in and technology standardization strategies, including platforms, and an era after that of the catch-up development model. There are many essential and patent litigation, from both economic and legal interesting studies on the role of universities in NIS, but those on perspectives. In addition, we conduct empirical analysis of patent and PRIs are rather limited. standard document data and theoretical analysis to derive a general framework. Through our study of past and present strategies, the The research intends to use three approaches: first, statistical analysis framework will allow us to derive policy implication covering both to understand the role of PRIs using patent and bibliometric data; existing and new technologies and products. second, a questionnaire survey of PRIs and researchers thereof; and third, an international comparison on the role of PRIs in a national innovation system. Major Research Results

Policy Discussion Paper Major Research Results ▶Age of De Jure Standard and its Determinants: Dataset linking standard technology areas to economic survey data Discussion Paper (TAMURA Suguru) (PDP 14-P-020) ▶Innovation and Public Research Institutes: Cases of AIST, RIKEN, and JAXA (SUZUKI Jun, TSUKADA Naotoshi and GOTO Akira) (DP 14-E-021)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 21 IV-6 Health Policy and Innovation Project Leader: IIZUKA Toshiaki FF

 ＜Overview＞ In recent years, healthcare markets such as pharmaceuticals, medical devices, and regenerative medicines have experienced various technological breakthroughs, and these innovations are expected to establish a new market in the near future. In these markets, government regulations, research and development (R&D) incentives, and price regulations play a major role in promoting innovations. The objective of this project is to understand the impact of health-related policies on innovations. For example, we study pharmaceutical R&D on rare diseases in Japan by empirically examining the impact of health policies on innovation activities. A comparison to similar policies in foreign countries will also be made. IV ： Technology and Innovation

IV-7 Study on Technology Know-how and its Protection via Questionnaire Survey on the Japanese Manufacturing Industry Project Leader: WATANABE Toshiya FF

 ＜Overview＞ The purpose of this study is a quantitative evaluation on technology know-how based on research and development by the Japanese manufacturing industry. Via a questionnaire survey, the economic magnitude and variation of the technology know-how in each industrial field is studied. Based on this study, we quantitatively estimate unintended technology know-how leakage. Furthermore, the effective management to protect technology know-how leakage is shown by clarifying the effect of the level of trade secret protection and detailed management methods conducted by industry on the technology know-how leakage.

Other research results in Program IV

＜ Research results independent from any research project ＞

Innovation Seminar “Conflict Resolution, Public Goods and Patent Thickets” (November 5, 2014)

22 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Program V Raising Industrial and Firm Productivity Program Director Project "Research Unit for Statistical and Empirical Analysis in FUKAO Kyoji Social Sciences" (G-COE Hi-Stat), seeks to update annually the Japan Industrial Productivity (JIP) Database and conduct analyses of Japan's industrial structure and productivity trends. Moreover, it aims The aim of this program is to measure industry- and to update and revise the China Industrial Productivity (CIP) Database firm-level productivity and its determinants for Japan for analyses of the Chinese economy, for which—even though it is a driving force of global economic growth—sufficient official statistics and various East Asian countries and to conduct are unavailable. Furthermore, by continuing the Asia KLEMS project research on policies aimed at raising productivity. At with the Asian Development Bank Institute (ADBI), Bank of Korea, the industry level, in addition to updating and etc. and linking up with Harvard University's World KLEMS project, the East Asian Industrial Productivity Project will make it possible to expanding the Japan Industrial Productivity (JIP) and conduct comparisons of productivity trends for countries around the China Industrial Productivity (CIP) databases in world, including Japan and China. collaboration with Hitotsubashi University, the program will construct an industrial productivity database by prefecture for Japan and examine the Major Research Results impact of the recent earthquake on regional economies Discussion Papers and policies for reconstruction. At the firm or ▶Globalization and Domestic Operations: Applying the JC/JD establishment level, employing micro-data from method to Japanese manufacturing firms (ANDO Mitsuyo government statistics and corporate financial data in and KIMURA Fukunari) (DP 15-E-010)

Japan and abroad, the program will research the ▶Constructing China's Net Capital and Measuring Capital V ： Raising Industrial following: productivity differentials between firms, the Services in China, 1980-2010 (Harry X. WU) (DP 15-E-006) Productivity and Firm impact of globalization, how changes in demand affect ▶Constructing Annual Employment and Compensation corporate performance, policies for raising Matrices and Measuring Labor Input in China (Harry X. WU, Ximing YUE and George G. ZHANG) (DP 15-E-005) productivity in the service sector, and productivity dynamics from an international perspective—including ▶Reconstructing China's Supply-Use and Input-Output Tables in Time Series (Harry X. WU and ITO Keiko) (DP 15-E-004) productivity differentials between Japanese, Chinese, and Korean firms—as well as other related issues. Workshop At the industry and firm level, the program will “The 2nd Asia KLEMS Database Management Workshop” (October 17, 2014) measure investment in intangible assets such as research and development, software, in-house RIETI World KLEMS Symposium training, and organizational structure—all of which “Growth Strategy after the World Financial Crisis” (May 20, are important sources of innovation and productivity 2014) growth—and will examine the economic effects of such investments. Third World KLEMS Conference (May 19-20, 2014) Introduction V of Research Projects V-1 East Asian Industrial Productivity Project Leader: FUKAO Kyoji FF

 ＜Overview＞ Increases in productivity provide a key source of economic growth, especially for countries like Japan, where the labor force is shrinking. The East Asian Industrial Productivity Project, in cooperation with Hitotsubashi University's Global Centers of Excellence (COE)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 23 V-3 Related URLs Regional-Level Japan Industrial Productivity ▶Japan Industrial Productivity Database 2014 (JIP 2014) http://www.rieti.go.jp/en/database/JIP2014/index.html Database: Database Refinement and Its Analysis Project Leader: TOKUI Joji FF ▶China Industrial Productivity Database 2011 (CIP 2011) http://www.rieti.go.jp/en/database/CIP2011/index.html  ＜Overview＞ The purpose of this research project is to update and refine our newly compiled Regional-Level Japan Industrial Productivity Database V-2 (R-JIP) and to carry out some analyses using this database. One Study on Intangible Assets in Japan refinement is to estimate the regional price level differences and Project Leader: MIYAGAWA Tsutomu FF reflect them in our output estimation. This is especially important for our productivity analysis of the service industries. The other refinement is to extend our database retroactively to the period before  1970. This period includes Japan's high economic growth era when ＜Overview＞ its economy experienced dynamic structural change. We can analyze Since 2007, we have measured intangible investment in Japan at the the regional economic convergence based on the longer period aggregate and firm levels. In 2012, we released our estimates of covering this interesting period. Other research being planned are intangible investment by industry on the RIETI website. Other analyses of the regional propagation of the severe economic decline research projects on intangibles such as INTAN-Invest and after the collapse of Lehman Brothers in 2008, regional income Conference Board link to this website. In fiscal 2013 and fiscal 2014 differences taking into account regional income transfers, transitions using our data on intangibles, we will focus on the following three of the regional industrial structure, reconstruction process following issues: (1) international comparison of the economic effects of V the 2011 Great East Japan Earthquake, and micro data analysis of ： intangibles; (2) effects of each intangible component on productivity Raising Industrial Productivity and Firm regional productivity differences. growth; and (3) economic effects of intangible investment in the public sector. Major Research Results

Discussion Papers Major Research Results ▶Aging, Interregional Income Inequality, and Industrial Structure: An empirical analysis based on the R-JIP Discussion Papers Database and the R-LTES Database (FUKAO Kyoji and ▶Intangible Investments and their Consequences: New MAKINO Tatsuji) (DP 15-E-022) evidence from unlisted Japanese companies (HARADA Nobuyuki) (DP 14-E-058) Related URLs ▶Regional-Level Japan Industrial Productivity (R-JIP) ▶How Does the Market Value Organizational Management Database 2012 Practices of Japanese Firms? Using interview survey data http://www.rieti.go.jp/jp/database/R-JIP2012/index.html (KAWAKAMI Atsushi and ASABA Shigeru) (DP 14-E-050) (in Japanese) ▶Is Productivity Growth Correlated with Improvements in Management Quality? An empirical study using interview surveys in Korea and Japan (MIYAGAWA Tsutomu, Keun LEE, EDAMURA Kazuma, YoungGak KIM and Hosung JUNG) (DP 14-E-048)

Publication Intangibles, Market Failure and Innovation Performance Edited by Ahmed BOUNFOUR, MIYAGAWA Tsutomu Springer, December 2014

24 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 V-4 Through these studies, we expect that this project will provide us with new findings to help gain a deeper understanding of the Analysis on Service Industries: Productivity, competitiveness of Japanese firms and to provide policy implications Economic Welfare, and Policy Evaluation to enhance the competitiveness of Japanese firms. Project Leader: KWON Hyeog Ug FF Sub-Leader: INUI Tomohiko FF Major Research Results  ＜Overview＞ Discussion Papers Productivity in the Japanese service industry has been stagnating for ▶Misallocation and Establishment Dynamics (HOSONO Kaoru over 40 years since the 1970s. The share of the service industry's and TAKIZAWA Miho) (DP 15-E-011) value added in the total Japanese economy has reached around 70% ▶The Impact of Foreign Firms on Industrial Productivity: A in recent years, and the recovery of productivity growth in this Bayesian-model averaging approach (TANAKA Kiyoyasu) industry is the key to sustaining higher economic growth and higher (DP 15-E-009) productivity improvement. ▶The Impact of Globalization on Establishment-Level In order to shape the policy agenda toward the recovery of Employment Dynamics in Japan (KODAMA Naomi and INUI productivity growth in the service industry in Japan, we will conduct Tomohiko) (DP 15-E-002) a study on the determinants of productivity growth and ▶Disemployment Caused by Foreign Direct Investment? competitiveness in both the education and healthcare industries, Multinationals and Japanese employment (KIYOTA Kozo and which have not been covered much in previous literature. In addition, KAMBAYASHI Ryo) (DP 14-E-051) we will also analyze the effects of investments in information and communications technology (ICT) and human capital on productivity ▶Price, Quality, and Productivity: Reconsidering the V growth in the Japanese service industry, and examine the effects of determinants of exporting behavior (MATSUURA Toshiyuki) ： Raising Industrial deregulation which leads to more efficient resource allocation and (DP 15-J-010) Productivity and Firm higher productivity growth in the service industry.

Policy Discussion Papers Major Research Results ▶Trends and Characteristics of Foreign Direct Investment in Japan (TANAKA Kiyoyasu) (PDP 14-P-021) Discussion Paper ▶Foreign Direct Investment in Japan: A review of the empirical ▶Fertility and Maternal Labor Supply in Japan: Conflicting literature (KIYOTA Kozo) (PDP 14-P-007) policy goals? (Andrew S. GRIFFEN, NAKAMURO Makiko and INUI Tomohiko) (DP 14-E-016) METI-RIETI Symposium “Impact of Inward FDI and its Promotion for Japan's Economic V-5 Growth” (March 10, 2015) Competitiveness of Japanese Firms: Causes and Effects of the Productivity Dynamics Project Leader: KIYOTA Kozo FF

 ＜Overview＞ With the growth of firms in emerging economies, how to enhance the competitiveness of firms is becoming one of the most important concerns for policy makers and business leaders in Japan. This project attempts to address this issue, using large-scale firm- and plant-level data in Japan. The project consists of the following three main studies:

1) Study on the resource misallocation and productivity distribution of Japanese firms; 2) Study on the production and cost structure of Japanese firms; RIETI-KEO Workshop 3) Study on the relationship between productivity and firms' entry “Productivity of Japanese Firms: Current status and into the export market. challenges” (October 3, 2014)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 25 V-6 Decomposition of Economic Fluctuations for Supply and Demand Shocks Project Leader: KONISHI Yoko SF

 ＜Overview＞ Since the burst of the bubble economy in the early 1990s, the growth rate of the Japanese economy has remained stagnant, and productivity is continuing to decline. A number of researchers recently investigated what occurred during the period. The government is also attempting to answer the question in the quest for an effective policy to increase gross domestic product (GDP) growth. In empirical works, total factor productivity (TFP) is commonly used as a measure of productivity. Specifically, we apply the Cobb- Douglas/Translog production function and the ordinary least squares (OLS) method. However, some researchers have pointed out that endogeneity problems can only exist in OLS and have also estimated that TFP includes the demand shock through the price of products. These problems may lead to incorrect implications when attempting to find the reason(s) for fluctuations in the economy using the estimated TFP. In this project, we look to decompose the effects of

V productivity and demand shock on economic growth. We proposed a ： Raising Industrial Productivity and Firm method to decompose TFP-type quantity into demand, supply, and other shocks in our previous project. In the project this time, we will focus on measuring the productivity of the service industries.

V-7 Evaluating International Competitiveness Project Leader: NOMURA Koji FF

＜Overview＞ The goal of this project is to provide new benchmark estimates of industry-level price differentials between Japan and the United States. These will be based on the U.S.-Japan bilateral input-output table to be published in 2013 by METI and will make it possible to measure industry-level productivity gaps and price competitiveness between the U.S. and Japan. The system of purchasing power parities to be constructed in this project will cover not only the products for final demands, but also the products for intermediate demands, using a detailed classification of 170 products. The study will also include capital service by type of asset, including land, and labor services by type of worker. In considering policy challenges Japan confronts at present, our measurement will focus, in particular, on the wholesale and retail trade sectors and the reconstruction of the energy supply structure after the Fukushima Daiichi nuclear disaster. These are key opportunities for closing the productivity gap between Japan and the U.S.

26 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Program VI New Industrial Policy Program Director overseas rivals. Forthcoming changes in the nation's energy policy OHASHI Hiroshi and other challenges will bring about a harsher business environment going forward. Against this backdrop, concerns have been raised over the acceleration in offshoring of operations from Japan to lower cost Leading nations appear to have ventured into the economies, particularly among manufacturers. As the Japanese economy undergoes structural changes, shifting weight from the formulation of strategies and policies that promote manufacturing sector to the service sector, it is necessary to create both their own domestic industries and companies in new industrial sectors to generate jobs. In this project, we will conduct basic research to explore new industrial policy by taking the global markets. This program will conduct theoretical and empirical approaches based on the observations described above. research on formulating industrial policies in the aftermath of the Great East Japan Earthquake with a VI-2 view toward resolving issues being faced by the Issues Faced by Japan's Economy and Economic Japanese economy. It will take into consideration the Policy Part III: Heterogeneity among economic roles played by product innovations while also looking agents into the perspectives of, for example, environmental, Project Leader: YOSHIKAWA Hiroshi FF

energy, and resource policies, competition policy, as well as agricultural policy. ＜Overview＞ By focusing on heterogeneity among economic agents, this project will clearly identify the issues faced by Japan's economy, separating them into those concerning demand and those concerning supply. In addition, policies that can address the issues will be proposed by combining fundamental research based on econophysics with

empirical research on the Japanese economy. In the theoretical VI ： New Industrial aspects, distributions of firm size and firm-level productivity are of Policy central interest, while the consumption tax increase, recovery from the Great East Japan Earthquake, and the Trans-Pacific Partnership (TPP) are topics for empirical studies.

Major Research Results

Discussion Papers ▶Representative Agent in a Form of Probability Distribution (INOSE Junya) (DP 14-E-038)

▶Firm Growth Dynamics: The importance of large jumps (ARATA Yoshiyuki) (DP 14-E-033)

▶Product Innovation and Economic Growth Part IV: Demand changes in an aging society (YOSHIKAWA Hiroshi and Introduction of Research Projects ANDO Koichi) (DP 15-J-012) VI ▶Rice Tariffs and Their Impact on the Japanese Market (KEIDA VI-1 Masayuki) (DP 14-J-043) Basic Research for a New Industrial Policy Project Leader: OHASHI Hiroshi FF

＜Overview＞ The Japanese economy has been burdened with a set of various problems that have long existed in Japan. The high effective corporate tax rate, among others, has been cited as a factor putting Japanese companies at a disadvantage in competing with their

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 27 The Going-Public Decision and Post-IPO Performance: VI-3 ▶ Evidence from Japan (HOSONO Kaoru and TAKIZAWA Study on Corporate Finance and Firm Dynamics Miho) (DP 15-J-005) Project Leader: UESUGI Iichiro FF ▶Effects of Lending Relationships with Government Banks on Firm Performance: Evidence from a Japanese government bank for small businesses (UESUGI Iichiro, UCHIDA ＜Overview＞ This project conducts policy-oriented empirical analyses of corporate Hirofumi and MIZUSUGI Yuta) (DP 14-J-045) finance, financial intermediation, and firm dynamics. Specifically, the research agenda that are in line with current policy concerns include Workshop the status of small and medium enterprises' (SMEs) fund “Hitotsubashi-RIETI International Workshop on Real Estate procurement after the abolishment of the SME Finance Facilitation Market and the Macro Economy” (December 15, 2014) Act, effectiveness of loans by government-affiliated financial institutions, and firm dynamics after the Great East Japan Earthquake. Other research topics such as the role of real estate markets in bank lending channels and the effectiveness of equity finance for economic growth are expected to bear a number of policy implications.

Major Research Results

Discussion Papers ▶Productivity, Firm Size, Financial Factors, and Exporting Decisions: The case of Japanese SMEs (OGAWA Kazuo and TOKUTSU Ichiro) (DP 15-E-031)

▶Lender Banks' Provision of Overseas Market Information: Evidence from Japanese small and medium-sized enterprises' export dynamics (INUI Tomohiko, ITO Keiko and

VI MIYAKAWA Daisuke) (DP 14-E-064) VI-4 ： New Industrial Policy ▶Does the Policy Lending of the Government Financial Energy and Industrial Structural Change after the Institution Substitute for the Private Lending during the Fukushima Nuclear Accident Period of the Credit Crunch? Evidence from loan level data in Japan (SEKINO Masahiro and WATANABE Wako) (DP 14-E- Project Leader: MANAGI Shunsuke FF 063) ▶Natural Disaster and Natural Selection (UCHIDA Hirofumi, ＜Overview＞ MIYAKAWA Daisuke, HOSONO Kaoru, ONO Arito, UCHINO Since the Great East Japan Earthquake, Japan has faced increasingly Taisuke and UESUGI Iichiro) (DP 14-E-055) insecure energy demand and supply, energy policy, and climate change policy conditions. It is now essential to have an integrated ▶Transaction Partners and Firm Relocation Choice: Evidence energy portfolio considering economic strategy, climate change from the Tohoku Earthquake (ONO Arito, MIYAKAWA policy, and energy security. This project studies the impact of recent Daisuke, HOSONO Kaoru, UCHIDA Hirofumi, UCHINO economic changes in energy demand and supply, and it builds an Taisuke and UESUGI Iichiro) (DP 14-E-054) economic model after taking into account the changes in industrial ▶Information Asymmetry in SME Credit Guarantee Schemes: and market structures which are caused by business establishments' Evidence from Japan (SAITO Kuniyoshi and TSURUTA closures, entries, movements, productivity decreases, and other Daisuke) (DP 14-E-042) factors. Based on this economic model, a direction for energy policy, global warming policy, economic policy, and reconstruction policy ▶ Impact of Supply Chain Network Structure on FDI: Theory hereafter will be proposed. and evidence (ITOH Ryo and NAKAJIMA Kentaro) (DP 14-E- 027)

▶Business Cycles, Monetary Policy, and Bank Lending: Major Research Results Identifying the bank balance sheet channel with firm-bank match-level loan data (HOSONO Kaoru and MIYAKAWA Discussion Paper Daisuke) (DP 14-E-026) ▶Nuclear Power Plants Shutdown and Alternative Power ▶Exploring the Patterns of Venture Capital Syndication: Plants Installation: A nine-region spatial equilibrium analysis Evidence from investment-round data (TAKIZAWA Miho and of the electric power market in Japan (HOSOE Nobuhiro) MIYAKAWA Daisuke) (DP 15-J-009) (DP 14-E-069)

28 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 (DP 14-E-069) VI-5 VI-7 Globalization, Innovation, and Competition Policy Price Network and Dynamics of Small and Medium Enterprises Project Leader: KAWAHAMA Noboru FF Sub-Leader: OHASHI Hiroshi FF Project Leader: AOYAMA Hideaki FF

＜Overview＞ ＜Overview＞ The globalized economy has entered into a new phase in which This project aims to reveal the dynamics and correlation of economic growth remains sluggish for a long time, particularly in the performances of small, medium, and large firms and prices of goods, developed countries. Against this backdrop, it has become a in relation to the growth of Japanese economy. Small and medium worldwide trend to pay more attention to competition policy and its firms are key to the diversity of economics activities, which is crucial underlying theories. Competition policy in Japan is also expected to for sustained growth. An important management task for such firms have an important role in maintaining vigorous competition in the is converting from being price takers to price leaders. This project marketplace and thus spurring market-oriented innovations. Such will utilize various data, including goods and consumer prices, innovations are considered essential in order to foster economic financial data of firms, and trading information between firms, to vitality in Japan. In this research project, we examine what direction reveal the fundamental mechanism of price determination and firm competition policy should take where the impact of globalization and dynamics from a network point of view, with the goal of finding a the importance of innovation have become immense. Comparative new growth strategy for small and medium enterprises. studies are conducted, and the knowledge and insights gained from legal studies, economic analysis, and practice are complementarily used in the research process. Major Research Results

Discussion Paper ▶Deflation/Inflation Dynamics: Analysis based on micro prices VI-6 (YOSHIKAWA Hiroshi, AOYAMA Hideaki, IYETOMI Hiroshi and FUJIWARA Yoshi) (DP 15-E-026) Agricultural Policy Reform Aimed at Competitive Agriculture in the Age of Globalization and

Decreasing Population VI ： New Industrial Other research results in Program VI Policy Project Leader: YAMASHITA Kazuhito SF

＜Overview＞ ＜ Research results belonging to research projects Although the elimination of or substantial reduction in tariffs on prior to Fiscal 2013 ＞ agricultural products is required in the World Trade Organization (WTO) and free trade agreement (FTA) negotiations (including the Trans-Pacific Strategic Economic Partnership Agreement (TPP) Project: Issues Faced by Japan's Economy and negotiations), the Japanese agricultural community is strongly Economic Policy Part II: Population decrease, resisting it and insists on exempting as many agricultural products as sustained growth, economic welfare possible. On the other hand, the domestic market for edible Project Leader: YOSHIKAWA Hiroshi FF agricultural products, which has been protected by high tariffs, is Sub-Leader: UNAYAMA Takashi CF declining due to an aging and decreasing population. Measures limited to protecting the domestic markets will clearly lead to a Discussion Paper decline in Japanese agriculture, and securing overseas markets is now ▶ Female Labor Market, Intra-household Allocation, and required for agriculture as well. Abenomics heavily emphasizes Marriage (UNAYAMA Takashi) (DP 14-J-048) agricultural policy reform. With an awareness of these problems, this project outlines the necessary policy reform recommendations, following the analysis of the obstacles of agricultural structural reform and the recent agricultural policy directions of the United States and the European Union.

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 29 Program V II Human Capital Program Director market institutions as a whole, we will also look into the TSURU Kotaro interrelationships of each constituent part, and in particular will make suggestions regarding a comprehensive system of labor laws and policies from a standpoint that transcends vertical segmentation and Amid the rapid aging of Japanese society, intensifying boundaries. When conducting our analysis, we will fully embrace international viewpoints and methods of analysis, including global competition, and recovery from the Great East experiences from Europe and elsewhere, and will attempt to elucidate Japan Earthquake, utilizing its human resources will the relationships between labor laws and institutions and the labor market and employment systems, and in turn the relationship with be critical for Japan, a nation relatively lacking in economic performance. natural resources, to maintain and strengthen its

economic dynamism and increase its growth potential. Major Research Results This program will carry out multifaceted, Discussion Paper comprehensive research on measures for ▶The Impact of a Demand Shock on the Employment of Temporary Agency Workers: Evidence from Japan during the strengthening human capital and human resources global financial crisis (HOSONO Kaoru, TAKIZAWA Miho and capabilities, from a full life-cycle perspective TSURU Kotaro) (DP 14-E-046) including ideal labor market systems to increase worker incentive and ability, early childhood VII-2 education through higher education, human resources Economic Analysis of Human Resource Allocation Mechanisms within the Firm: Insider econometrics development in employment years, and utilization of using HR data elderly human resources. Project Leader: OWAN Hideo FF

 ＜Overview＞ The internal labor market of the firm generally plays broad roles including: (1) evaluating worker ability through actual work output;

VII (2) investing in human capital through on-the-job training; (3) ： reallocating workers in accordance with human capital accumulation; Human Capital and (4) motivating workers through both short-term and long-term incentives. Therefore, whether or not a certain personnel system is efficient depends on the firm's employment of rational mechanisms to serve the above multiple roles.

In this project, using personnel records from several Japanese firms, we attempt to answer a number of questions such as: whether the patterns we observe in their internal labor markets are consistent with the theory based on rational firm behavior; whether internal labor Introduction of Research Projects markets in Japanese firms, which do not face active external labor V II markets in general, are any different in their functions from those of VII-1 their counterparts in Western economies; how institutional factors affect human capital allocation and its pricing; and how changes in Reform of Labor Market Institutions worker assignment policy and organizational structure affect Project Leader: TSURU Kotaro FF innovation activities.

 Major Research Results ＜Overview＞ In order to study a new "form" for Japan's labor market institutions Discussion Papers and types of reform, we will organize a study group that will conduct ▶University Prestige, Performance Evaluation, and Promotion: theoretical and empirical research from various perspectives such as Estimating the employer learning model using personnel law, economics and management. While looking broadly at labor

30 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 datasets (ARAKI Shota, KAWAGUCHI Daiji and ONOZUKA regional VII-5 employment. Yuki) (DP 15-E-027) Research Project on Mental Health from the ▶Wages, Promotions, and Gender Workplace Segregation (HASHIMOTO Yuki and SATO Kaori) (DP 14-J-036) Perspective of Human Capital 2 Project Leader: SEKIZAWA Yoichi SF

 VII-3 ＜Overview＞ Fundamental Research for the Revival of a Vibrant In this research project, we aim at realizing economic growth through Economy and Society in Japan the improvement of mental health. With this aim in mind, we evaluate the effectiveness of interventions intended for alleviating Project Leader: NISHIMURA Kazuo FF depression and/or anxiety and which are available for a wide range of people with ease. These interventions include computerized cognitive behavioral therapy (CCBT) using personal computers or ＜Overview＞ If Japan's economy and society are construed as complex systems, smartphones. We also examine whether consumer confidence, social hidden essential data behind the phenomena may be recognized. capital, and/or non-cognitive ability, which are thought of as related Changing such essential data should improve the dynamic to economic growth, would improve by the above mentioned movements generated by those systems and enable economic growth. interventions. Through an integrated theoretical study based on a behavioral economic analysis of different individuals and a dynamical analysis of an economy composed of different economic agents, this project VII-6 aims to reveal the elements contributing to economic growth by Labor Market Analysis Using Matched Employer- viewing the economy as a complex system. Our microeconomic analysis is based on questionnaires, experiments, brain Employee Panel Data measurements, and their analyses. Our macroeconomic analysis uses Project Leader: YAMAMOTO Isamu FF approaches from nonlinear dynamics and will proceed through discussions with researchers abroad. Both forms of analysis utilize  interdisciplinary approaches. ＜Overview＞ Considering growing social concern about the desirable labor market design in a super-aged society, it is important to explore the behavior VII-4 of firms and workers and their interaction when examining firms' competitive power and workers' work-life balance in Japan. This The Changing Japanese Labor Market: project constructs matched employer-employee panel data, which A perspective and desirable policy responses collect numerous information such as employment, wage, work Project Leader: KAWAGUCHI Daiji FF hours, human resource management, and work-life balance. Using VII the matched panel data, this project carries out empirical research to ：  examine various issues in the Japanese labor market including Human Capital ＜Overview＞ work-life balance and labor market mobility. The Japanese labor market has gone through rapid changes represented by the declining significance of Japanese employment practices and shrinking employment in the manufacturing sector. Notwithstanding its importance, the driving factors for the observed changes, their welfare implications, and desirable policy responses have not been fully discussed yet. This project aims at finding explanations for the changes, offering a future perspective, and deriving policy implications from three different angles: structural changes, changes caused by temporary macroeconomic shocks, and regional employment.

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 31 Workers' Mental Health, Long Work Hours, and Workplace regional VII-7 employment. ▶ Management: Evidence from workers' longitudinal data in The Effect of Diversity on Economic Growth and Japan (KURODA Sachiko and YAMAMOTO Isamu) (DP Business Competitiveness 14-J-020) Project Leader: HIGUCHI Yoshio FF Sub-Leader: KODAMA Naomi CF Project: Research Project on Mental Health from the  Perspective of Human Capital ＜Overview＞ Project Leader: SEKIZAWA Yoichi SF From the mid- and long-term perspective, the biggest constraint on Japanese economic growth is the contraction of the labor force and Discussion Papers domestic demand. Minimizing the demographic constraint is a major ▶Does the Three Good Things Exercise Really Make People premise to return the Japanese economy back on a sustainable More Positive and Less Depressed? A study in Japan development track. To address this problem, we need to create and (SEKIZAWA Yoichi and YOSHITAKE Naomi) (DP15-E-001) sustain a society in which females can fully exert their potential.

The project aims to perform empirical research on the impact of women's participation and leadership on economic growth and Project: Impact of Diversity and Work-life Balance business competitiveness, and find methods on how to accomplish Project Leader: HIGUCHI Yoshio FF this specifically. We also seek to obtain more information to capture a better picture of highly skilled foreign professionals as a potential workforce and the actual state of female entrepreneurs. We aim to Discussion Papers examine the effects of diversity on economic growth and contribute ▶Does Board Diversity Influence Firms' Innovative Activity? to sustainable economic growth. Evidence from the firm-level micro data in Japan (INUI Tomohiko, NAKAMURO Makiko, EDAMURA Kazuma and OZAWA Junko) (DP 14-J-055) Corporate Disclosure of Non-financial Information and Other research results in Program VII ▶ Ownership by Foreign Shareholders (KODAMA Naomi and TAKAMURA Shizuka) (DP 14-J-054)

＜Research results belonging to research projects ▶Increasing Organizational Performance through Diversity prior to Fiscal 2013＞ and Organizational Climate Initiatives: What works, what doesn't (TANIGUCHI Mami) (DP 14-J-042)

Project: Reform of Labor Market Institutions ▶The Potential for Women's Career Development through

VII Project Leader: TSURU Kotaro FF Overseas Employment and Accumulation of Management ：

Human Capital Know-How (USHIO Naomi and SHIMURA Kotaro) (DP 14-J-032) Discussion Papers ▶Does Initial Job Status Affect Midlife Outcomes and Mental ▶Organizational Informatization and Promoting the Active Health? Evidence from a survey in Japan (OSHIO Takashi Participation of Women in the Workplace (USHIO Naomi and and INAGAKI Seiichi) (DP 14-E-025) SHIMURA Kotaro) (DP 14-J-031)

▶The Hidden Curriculum and Social Preferences (ITO ▶An Introduction to Affirmative Action Policies in Korea: Takahiro, KUBOTA Kohei and OHTAKE Fumio) (DP 14-E- Consequences and implications for Japan (OSAWA Machiko 024) and KIM Myoung Jung) (DP 14-J-030)

▶ The Effects of Personality Traits and Behavioral ▶Does Gender Diversity in Management Contribute to Characteristics on Schooling, Earnings, and Career Profitability, Productivity, and the AA system in China and Promotion (LEE SunYoun and OHTAKE Fumio) (DP 14-E- Korea? (ISHIZUKA Hiromi) (DP 14-J-029) 023)

▶Winning the Race against Technology (KAWAGUCHI Daiji and MORI Yuko) (DP 14-E-017)

▶The Impact of Student Loan Reform on College Enrollment (SANO Shinpei and KAWAMOTO Takaaki) (DP 14-J-037)

▶Workers' Mental Health and Firm Performance: Evidence from firms' longitudinal data in Japan (KURODA Sachiko and YAMAMOTO Isamu) (DP 14-J-021)

32 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Program VIII Social Security, Taxation, and Public Finance Program Director sheet. The Bank of Japan (BOJ) buys a large amount of long-term FUKAO Mitsuhiro government bonds at very low interest rates so as to raise the inflation rate. Successful implementation of this policy is likely to raise long-term interest rates, and the BOJ will lose money due to a Japan has to maintain its economic dynamism in the fall in government bond prices. Commercial banks and insurance companies also will suffer from lower bond prices. Furthermore, face of its rapid aging population and low fertility households will suffer from lower returns on deposits and insurance rate. This program will carry out multifaceted, policies. The government has to pay higher interest rates on its debt, and it may have to use public funds to protect depositors and integrated research on Japan's social security system, insurance policy holders of weakened financial institutions.

taxation, and public finance. The research subjects Although the BOJ can absorb large losses due to profit earned from include (1) an analysis of comprehensive panel data on bank note issuance, there is a certain limit. If the losses are too large for the BOJ to absorb, it will have a serious problem in conducting the elderly, (2) possible reforms to the social security monetary policy to stabilize the inflation rate. For example, the BOJ will have to stop fiscal transfer of its profit to the government. The and taxation systems, (3) a proposal for combining BOJ also may have to raise reserve requirements or raise general carbon taxes and investment subsidies in energy prices to increase the demand for the monetary base to increase its profit. conservation, (4) optimal fiscal policy measures for Our second problem is the welfare cost of fiscal consolidation. The reconstruction from the recent earthquake, economic Japanese government must raise various taxes on a large scale to cut recovery, and fiscal consolidation, and (5) new forms budget deficits and to finance the social security system. However, higher tax rates will impair efficient allocation of resources. We will of public services, including the "third sector." compare the welfare cost and income distribution effects of fiscal consolidation measures under different taxation methods including higher income and social security taxes and an inflation tax on government debt. We also will evaluate the effects of changes in immigration policy on the potential growth rate.

Major Research Results

Discussion Paper ▶The Effect of Corporate Tax Rate Reduction: A simulation analysis with a small open economy DSGE model for Japan (HASUMI Ryo) (DP 14-J-040)

VIII-2 VIII ： Social Security, Toward a Comprehensive Resolution of the Social Public Finance Taxation, and Security Problem: A new economics of aging Project Leader: ICHIMURA Hidehiko FF Introduction of Research Projects VIII Sub-Leader: SHIMIZUTANI Satoshi CF VIII-1  A Cost-Benefit Analysis of Fiscal Consolidation ＜Overview＞ As the aging of society around the world continues at an Measures unprecedented pace, there is a need to develop sustainable social Project Leader: FUKAO Mitsuhiro FF security systems that do not lower the quality of life of the elderly. This project will conduct the "global-standard" panel study of  middle-aged and elderly subjects, fully incorporating results from ＜Overview＞ past studies and similar surveys of the elderly (i.e., the Health and We evaluate and estimate the effectiveness and the cost of monetary Retirement Study, the English Longitudinal Study of Ageing, and the policy involving a massive expansion of the central bank's balance Survey of Health, Ageing and Retirement in Europe) to realize a new

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 33 microeconomic and comprehensively market-oriented approach numbers show that Japan will face the danger of a serious labor force premised on the diversity of the elderly. In doing so, it will overcome shortage. To address this situation, a rise in the fertility rate no longer the limitations of past approaches that focused individually on seems effective, and Japan will have to rely on immigration. In this specific fields such as health care, long-term care, and pensions, as project, we investigate immigration policies of foreign countries and well as that of simulation analysis using macro models. Through the their effectiveness, and survey academic research on this field. As a collection of data that enables a multifaceted international result, a proposal of an optimal immigration policy for Japan in the comparison of health condition, economic situation, family future is expected. relationships, employment status, and social participation, the project will establish in the Japanese social security policy field evidence- based policymaking based on a wealth of microeconomic data and VIII-4 will contribute to policymaking in other countries based on Japan's Social Security System to Revive Economic Vitality experience. and Improve the Quality of Life Project Leader: NAKATA Daigo SF Major Research Results  RIETI-JER Workshop ＜Overview＞ “Economics of Aging in Japan and Other Societies” (December First, we estimate the impact of the social security burden on 13, 2014) corporate behavior. Especially, using micro data, the impact of employers' contributions for social insurance on employment, wages, RIETI-JSTAR Symposium and investment activities are analyzed. With this research, we can “Japan's Future as a Super Aging Society: International provide useful analysis for policy discussion to strive toward comparison of JSTAR datasets” (December 12, 2014) establishing a social security system that is consistent with economic activities and growth. Second, using macroeconomic simulation, we study the effect of the social security sector on economic welfare, growth, and tax revenue. In those studies, we can understand the optimal size of the social security sector in the Japanese economy. Finally, we evaluate the efficiency of long-term care (LTC) providers and the turnover factor in the LTC labor market, toward a sustainable LTC system in the super-aged Japanese society.

Major Research Results

Discussion Paper ▶Wage Structure of Japanese Care Worker: College Premium Panel discussion and Qualification Premium" (YIN Ting, KAWATA Keisuke and XU Zhaoyuan) (DP 14-J-033) RIETI Seminar “Trends in Disability in a Super-Aging Society: Adapting the

VIII Future Elderly Model to Japan” (September 5, 2014) VIII-5 ： Social Security, Public Finance Taxation, and Theoretical and Empirical Analyses on Incidences of Related URL Corporate Income Taxation ▶The Japanese Study of Aging and Retirement (JSTAR) Project Leader: DOI Takero FF http://www.rieti.go.jp/en/projects/jstar/index.html  VIII-3 ＜Overview＞ This project analyzes quantitatively who actually bears the burden of Optimal Immigration Policy for Japan the corporate income tax and how much of this burden is borne by Project Leader: NAKAJIMA Takanobu FF the people by building a theoretical model and implementing econometric analyses. This project seeks to find facts that benefits  resulting from the reduction of the corporate income tax rate go ＜Overview＞ beyond corporations, and to derive policy implications on the reform The National Institute of Population and Social Security Research of corporate income taxation. In theoretical analysis, the focus is to estimates the population of Japan to be 80 million in 2060 and 30 build a dynamic macroeconomic model with equipment investment million in 2110 and the working-age population (15 to 64) to and corporate finance in order to investigate incidences of corporate comprise 49% and 45% of that population, respectively. These income tax. In econometric analyses using corporate financial

34 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 statements, we will seek to describe realistic firm behaviors based on and fiscal policies by conducting policy simulations based on the the theoretical model. From these results, we will identify results of the above analyses. The novelty of the research is its quantitatively the degree to which such incidences of corporate comparison of the causes and solutions to the aging population and income tax affect labor and capital incomes. the diminishing number of children in both countries.

Major Research Results VIII-6 On Monetary and Fiscal Policy under Structural Discussion Paper ▶Decline in Consumption Expenditures after Retirement Using Changes and Societal Aging Japanese Micro Data (JSTAR) (KUREISHI Wataru and YIN Project Leader: FUJIWARA Ippei FF Ting) (DP 15-J-001)

 ＜Overview＞ Other research results in Program VIII The Japanese economy has been experiencing such structural changes as societal aging, industrial transition, and deepening of globalization. On the other hand, although the causation with such structural changes is not very clear, deflation has been persistent and ＜Research results belonging to research projects monetary policy has been restricted by the zero lower bound on prior to Fiscal 2013＞ nominal interest rates. Given a very large debt-to-GDP ratio, room for further fiscal easing also has decreased. Consequently, to stimulate the economy over the business cycle, the economy needs to rely on Project: Policy Mix for Fiscal Consolidation Without the commitment to future accommodative monetary policy. Harming Japan's Economic Recovery

In this project, we first clarify the implications that such structural Project Leader: FUKAO Mitsuhiro FF changes as societal aging have on the Japanese economy and monetary as well as fiscal policies. Then, we seek how monetary and Discussion Paper fiscal policy should be designed in facing such structural changes. ▶Fiscal Consolidation in Japan (FUKAO Mitsuhiro) (DP 14-E- 015)

Major Research Results

Discussion Paper ▶The Optimal Degree of Monetary-Discretion in a New Keynesian Model with Private Information (WAKI Yuichiro, Richard DENNIS and FUJIWARA Ippei) (DP 15-E-007)

VIII-7 A Socioeconomic Analysis of Households in Environments Characterized by Aging Population VIII ： Social Security, and Low Birth Rates Public Finance Taxation, and

Project Leader: YIN Ting F

 ＜Overview＞ Japan and its largest trading partner, China, have shared the dual problems of rapid aging and very low birth rates. By analyzing micro data from both nations, this research presents several empirical analyses with the objective of devising possible solutions to these concerns. First, the research reveals the causes of the trend toward delayed marriage, which leads to low birth rates. Second, it explains how population aging affects people's behavior toward consumption, savings, work, family caregiving, and out-of-home care service, and how these factors impact the national economy. We then compare the cases of Japan and China and present implications for social security

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 35 Program IX Policy History and Policy Assessment Program Director covering the period 1945-1979, and the second one covering 1980- TAKEDA Haruhito 2000. First, since the previous research did not cover this topic sufficiently, we evaluate Japan's economic policy after the 1990s. Second, we compare Japan's rapid economic growth with that of The objective of this program's research is to review Korea, Taiwan, and China, and clarify the commonalities and differences in the growth mechanism. Third, as well as working and assess trade and industrial policy, chiefly over the toward an English version of the second phase of trade and industrial period from 1980 through 2000, as it looks at Japan's policy history, this research studies the economic policy history of a specific field (standards policy). economy, society, and trade and industrial policies at the end of the 20th century. IX-2 History of the Policies of the Nuclear and Industrial At the same time, the final two decades of the 20th Safety Agency century were a time of significant changes in Japan's Project Leader: KIKKAWA Takeo FF economy and society; they also were a time of very  major real and organizational changes in trade and ＜Overview＞ industrial policy. This research will attempt to make This project examines the 11-year history of the Nuclear and Industrial Safety Agency (NISA) from its foundation in 2001 until clear how changes in trade and industrial policy at the 2012 when the entirety of its tasks were transferred to the Nuclear Regulation Authority (NRA), a new organization affiliated with the turn of the century were effected, based on activities Ministry of the Environment, with an aim to make use of the lessons including assessment of the recognition of policy issues learned from its experience in nuclear safety administration in the future. We will not only record objective facts regarding the NISA— over the preceding quarter-century, choice of policy its policies as well as its role and nature as an administrative organ— but also attempt to account for the facts by incorporating analytical means in response, and their results. and evaluative perspectives and examining how the NISA policies have changed over the years.

IX-3 Historical Evaluation of Industrial Policies Project Leader: OKAZAKI Tetsuji FF

 ＜Overview＞ The industrial policies that the Ministry of International Trade and Industry (MITI) and the Ministry of Economy, Trade and Industry (METI) implemented after World War II are attracting the keen interest of policy makers in developing countries, who are making efforts to promote industries in their own countries. However, economists and economic historians are sharply divided on the Introduction of Research Projects evaluation of the effects of Japanese industrial policy. The basic

IX reason for the mixed evaluation is that we still do not have a ： IX Policy History Assessment and Policy IX-1 sufficient accumulation of research that analyzes the positive and Historical Study on Japan's Trade and Industrial negative effects of industrial policy, based on micro-data as well as appropriate economic and econometric frameworks. In this project, Policy: From an international perspective we aim at evaluating Japanese industrial policy quantitatively, Project Leader: TAKEDA Haruhito FF through collecting and analyzing original documents and detailed micro-data, and thereby providing a solid basis for policy discussion.  ＜Overview＞ The objective of this research is to develop policy history, based on the achievements of first phase of trade and industrial policy studies

36 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 ▶Abstract of History of Japan's Trade and Industry Policy: Other research results in Program IX Abstract of Nobuhiro Nakayama, History of Japan's Trade and Industry Policy (11) Intellectual Property Policy (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P- Research results independent from any research ＜ 018) project ＞ ▶Abstract of History of Japan's Trade and Industry Policy: Abstract of Takeo Kikkawa, History of Japan's Trade and Related URL Industry Policy (10) Natural Resources and Energy Policy ▶Information related to the History of Japan’s Trade and (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P- Industry Policy 017) http://www.rieti.go.jp/jp/projects/hjtip/index.html (in Japanese) ▶Abstract of History of Japan's Trade and Industry Policy: Abstract of Minoru Sawai, History of Japan's Trade and Industry Policy (9) Industrial Technology Policy (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P-016)

▶Abstract of History of Japan's Trade and Industry Policy: Abstract of Shigeru Matsushima, History of Japan's Trade and Industry Policy (8) Consumer Goods Industries (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P- 015)

▶Abstract of History of Japan's Trade and Industry Policy: Abstract of Shin Hasegawa (ed.), History of Japan's Trade and Industry Policy (7) Machinery and Information Industries (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P- 014)

▶Abstract of History of Japan's Trade and Industry Policy: Abstract of Shiro Yamazaki (ed.), History of Japan's Trade and Industry Policy (6) Basic Industries Policy (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P-013)

▶Abstract of History of Japan's Trade and Industry Policy: ＜ Research results belonging to research projects Abstract of Haruhito Takeda, History of Japan's Trade and prior to Fiscal 2013 ＞ Industry Policy (5) Location, Environment and Safety Policy (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P- 012) Project:Historical Research on the Major Topics of Japan's Trade and Industrial Policy ▶Abstract of History of Japan's Trade and Industry Policy: Abstract of Takemasa Ishihara (ed.), History of Japan's Trade Project Leader: TAKEDA Haruhito FF and Industry Policy (4) Commerce and Distribution Policy (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P- 011)

Discussion Papers ▶Abstract of History of Japan's Trade and Industry Policy: ▶Informing SMEs Better about Available Support Measures: Abstract of Tetsuji Okazaki (ed.), History of Japan's Trade Consideration of the case of micro businesses (YASUDA and Industry Policy (3) Industry Policy (KAWAMURA Satoshi Takehiko) (DP 14-J-049) and TAKEDA Haruhito) (PDP 14-P-010)

▶Japanese Industrial Policy and the Enhancement of Nuclear ▶Abstract of History of Japan's Trade and Industry Policy: IX Power Plants Efficiency: Promotion of domestic production Abstract of Takeshi Abe (ed.), History of Japan's Trade and ： Policy History and the “Improvement & Standardization Plan” (ISHII Industry Policy (2) International Trade Policy (KAWAMURA Assessment and Policy Susumu) (DP 14-J-026) Satoshi and TAKEDA Haruhito) (PDP 14-P-009)

▶Abstract of History of Japan's Trade and Industry Policy: Policy Discussion Papers Abstract of Konosuke Odaka, History of Japan's Trade and ▶Abstract of History of Japan's Trade and Industry Policy: Industry Policy (1) General Overview (KAWAMURA Satoshi Abstract of Tetsuo Nakata (ed.), History of Japan's Trade and and TAKEDA Haruhito) (PDP 14-P-008) Industry Policy (12) Small- and Medium-sized Enterprises (KAWAMURA Satoshi and TAKEDA Haruhito) (PDP 14-P-019)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 37

SP Special Projects

normal agency problems between investors and managers, but also on the problem of governance of the holding companies (headquarters of multi-division firms) over their subsidiaries (business units). Further, we continue to consider the diversified corporate governance Special Projects are independent from the prior nine arrangement in Japanese firms that has been emphasized through our previous works. The comparative approach with the United States, Research Programs. the United Kingdom as well as continental European and Asian business groups is also introduced into the analysis. In designing the new governance arrangement, we consider the right balance between the shareholders' and other stakeholders' interest. From these aspects, we address (1) the corporate restructuring process including the initiatives of the main bank, private equity firms, and mergers and acquisitions (M&As), (2) the financial system and governance arrangement that enable firms to take high risks, (3) the adequate ownership and board structure that uphold the right balance between shareholders and other stakeholders, and (4) the two-tiered governance structure among the business groups and the functions of their internal capital markets.

Major Research Results

Discussion Papers ▶Uncertainty Avoiding Behavior and Cross-border Acquisitions (Marc BREMER, HOSHI Akio, INOUE Kotaro and SUZUKI Kazunori) (DP 15-E-033)

▶Diversification, Organization, and Value of the Firm (USHIJIMA Tatsuo) (DP 15-E-019)

METI-RIETI Symposium “Corporate Governance Reform in Japan: Lessons from the United Kingdom” (October 16, 2014)

IntroductionSP of Research Projects SP-1 Frontiers of Analysis on Corporate Governance: Growth, value creation and corporate governance

Project Leader: MIYAJIMA Hideaki FF From left to right, Colin MAYER (Peter Moores Professor of Management Studies, Saïd Business School, University of Oxford), MIYAJIMA Hideaki FF  SP ： ＜Overview＞ Special Projects This project aims at examining new corporate governance arrangements that could encourage the further growth of Japanese firms. We focus on the managerial autonomy (discretion) that supports risk taking and active innovation. We focus not only on

38 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Related URL The following data developed in or obtained for RIETI Frontiers of Analysis on Corporate Governance: Toward the ▶ research projects are data that are made open and recovery of Japanese companies’ competitiveness http://www.rieti.go.jp/jp/projects/fcga2011/index.html available to the public: (in Japanese) i) Japan Industrial Productivity Database 2014 (JIP 2014) http://www.rieti.go.jp/en/database/JIP2014/index.html

ii) China Industrial Productivity Database 2011 (CIP 2011) http://www.rieti.go.jp/en/database/CIP2011/index.html

iii) Asian Monetary Unit (AMU) and AMU Deviation Indicators http://www.rieti.go.jp/users/amu/en/index.html

iv) Industry-Specific Nominal and Real Effective Exchange Rates in Asia http://www.rieti.go.jp/users/eeri/en/index.html

v) Japanese Study of Aging and Retirement (JSTAR) http://www.rieti.go.jp/en/projects/jstar/index.html

vi) RIETI Trade Industry Database (RIETI-TID) http://www.rieti.go.jp/en/projects/rieti-tid/index.html

vii) RIETI Foreign Direct Investment Database SP-2 (RIETI FDI Database2010) RIETI Data Management Project http://www.rieti.go.jp/en/database/FDI2010/index.html

Project Leader: ODA Keiichiro SF viii) International Comparison of Productivity among Asian  Countries (ICPA) Project http://www.rieti.go.jp/en/database/d03.html ＜Overview＞ The data in RIETI's possession can be categorized as follows: data Note: The RIETI Data Management Project has been involved available at relatively low cost, which research institutions would in the development and maintenance of the datasets listed as ordinarily be expected to have on hand; large-scale datasets i), iii), and vi), supporting data collection and system purchased by individual research projects for use in their research; architecture as well as periodically updating the databases. and data generated by these research projects (including the results of questionnaire surveys). The purpose of this project is to develop infrastructure for facilitating more efficient utilization of these datasets by users. An additional purpose of this project is to serve as a forum for active discussion of related topics within RIETI, with an eye to considering the possibility as well as methods to make these datasets available to both researchers and the public at large as a source of new knowledge.

Having accumulated considerable expertise in handling microdata being in the possession of RIETI, we will also try to create convertors for statistics data matching that enable researchers to quickly access and analyze microdata. By enhancing our handling of data, we will be better equipped to deal with the new Statistics Act and improve the existing value and uniqueness of RIETI.

http://www.rieti.go.jp/en/database/index.html SP ： Special Projects

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 39 SP-3 SP-4 Research on the Liberalist Reforms of the Public- Survey of International Trends and Discussions in Private Relationship and the Establishment of the Greenhouse Gas Emission Reduction Projects Third Sector in Japan under the UN Framework Convention on Climate Project Leader: USHIRO Fusao FF Change  Project Leader: KAINOU Kazunari F ＜Overview＞  This research project aims to offer a specific plan for the liberalist ＜Overview＞ reforms of the relationship between the public and private sectors and Under the United Nations Framework Convention on Climate to identify the challenges and the direction to be taken to restructure Change (UNFCCC), parties to the Kyoto Protocol, including Japan the third sector through the reforms. This is to be done by researching and the European Union, are allowed to use the Kyoto and studying the real picture of the public-private relationship as seen Mechanisms—emissions trading, Joint Implementation (JI), Clean in regulations, commissioning, and subsidiaries between government Development Mechanism (CDM), etc.—in the first commitment agencies and the third sector organizations concerned, as well as the period from 2008 to 2012 in addition to their domestic activities to business status of the third sector organizations therein, in each policy achieve their respective greenhouse gas (GHG) emission reduction area such as elderly care, welfare services for the disabled, childcare, commitments. Specifically regarding CDM and JI, under which education, and medical care or in a cross-sectoral manner. Here, the investments in emission reduction projects in third countries can be process is referred to as a liberalist reform as we think that taken as emission credits, various problems have been pointed out introducing drastic reforms in the existing public-private relationship, and, accordingly, discussions are now underway to make changes to toward encouraging free and transparent competition among diverse the mechanisms. providers and offering choice to users, is indispensable in order to ensure efficient and high-quality public services in our country. In the 16th Conference of Parties (COP-16) to the UNFCCC held in Cancun, Mexico in 2010, a new framework differing from that of the Kyoto Protocol and involving the participation of the United States, Major Research Results China, and other developing countries was set up as part of the Cancun Agreement. Under the new framework, participating RIETI Policy Symposium countries or regions would voluntarily set GHG emission reduction “Introduction of Selection and Competition to Childcare targets, and the achievement of the targets would be made subject to Centers and Kindergartens: Reconstruction of quasi-markets multilateral review. It was also agreed that a new set of flexible and the third sector” (February 19, 2015) mechanisms, similar to the Kyoto Mechanisms, be institutionalized under the new framework. However, the specifics of such flexible mechanisms have yet to be worked out.

This survey seeks to investigate, analyze, and evaluate the progress going forward in reforming the Kyoto Mechanisms under the Kyoto Protocol, and it moves toward that in developing a new mechanism with an aim to put forward international policy proposals for efficient and effective GHG emission reductions in the future.

USHIRO Fusao FF SP ： Special Projects

40 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 SP-5 SP-6 Economic Analysis of Entrepreneurship An Empirical Study on Economic Resilience and Project Leader: MATSUDA Naoko F Maintenance of Economic Strength Against  Disasters ＜Overview＞ Project Leader: SAWADA Yasuyuki FF This project aims to reveal insight into the co-founders with whom entrepreneurs cooperate in their newly started ventures. Although  various research on nascent entrepreneurs have been accumulated, ＜Overview＞ those on persistently successful entrepreneurs have not yet been We investigate empirically the factors that are effective in improving conducted. Specifically, social capital of entrepreneurs is thought to and/or maintaining economic resilience and strength against be one of the critical factors of successful entrepreneurship; however, disasters. First, we review the Ministry of Economy, Trade and it needs further empirical analysis. Industry's pilot projects on the Business Continuity Management System (BCMS) and provide impact assessments of policies on Among the issues, we focus on the relationships of co-founders and BCMS formation. Second, we conduct a questionnaire survey on entrepreneurs during the launch period. Research questions to be disaster risk financing in the corporate sector—we quantitatively asked are as follows: Does choosing an ex-colleague as a co-founder analyze the status quo and determinants of the corporate sector's accelerate the exit process or does it lead to earning extra profits? demand for disaster risk financing and insurance. In particular, we How about selecting a former venture capitalist or an experienced aim at identifying the causes of the low disaster insurance manager who had worked for a rival enterprise in the same sector? subscription rate and finding the factors that are necessary to improve the subscription rate. Third, we review the cases in various countries In this research, with newly released data resources including that we have been investigating through RIETI projects (including CrunchBase, these topics will be eagerly examined. but not limited to Japan) so as to distinguish between aspects that are generic and those that are case-specific regarding measures against disasters.

Major Research Results Other research results in Special Projects Discussion Papers Governing Board Interlocks and Probability of an IPO ▶ Research results belonging to research projects (MATSUDA Naoko and MATSUO Yutaka) (DP 14-E-040) ＜ prior to Fiscal 2013＞ ▶Relationship between Governing Board Interlocks and Initial Public Offerings (MATSUDA Naoko and MATSUO Yutaka) (DP 14-J-023) Project: Establishment of Credit Risk Database in Selected Asian Countries and Improvement of SME Database to Promote the Efficient Allocation of Loans to the Growing SME Sector Project Leader: YOSHINO Naoyuki FF

Policy Discussion Paper ▶The Credit Guarantee System and Policy-based Finance for Small- and Medium-sized Enterprises and a Database of Small- and Medium-sized Enterprises (YOSHINO Naoyuki) (PDP 15-P-003)

Project: Economic Analysis of Networks via Social Network Services (SNS) Project Leader: MATSUDA Naoko F

Discussion Paper ▶Empirical Analysis on Factors Behind Successful

Entrepreneurs (MATSUDA Naoko and MATSUO Yutaka) (DP SP ：

14-E-018) Special Projects

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 41 Project: Post-disaster Recovery Policies and Insurance ▶A Comparison of the Wage Structure between the Public and Mechanisms against Disasters: Case studies on Private Sectors in Japan (MORIKAWA Masayuki) (DP earthquakes in Japan and floods in Thailand 14-E-060) Project Leader: SAWADA Yasuyuki FF ▶The Economics of Attribute-Based Regulation: Theory and evidence from fuel-economy standards (ITO Koichiro and Discussion Papers James M. SALLEE) (DP 14-E-057) ▶The Long-Run Socio-Economic Consequences of a Large Disaster: The 1995 earthquake in Kobe (William DUPONT IV, ▶Japan's Exorbitant Privilege (Kenneth S. ROGOFF and Ilan NOY, OKUYAMA Yoko and SAWADA Yasuyuki) (DP TASHIRO Takeshi) (DP 14-E-047) 15-E-035) ▶Does Export Yield Productivity and Markup Premiums? Evidence from the Japanese manufacturing industry (KATO ▶Natural Disasters, Land Price, and Location of Firms: Evidence from Thailand (SAWADA Yasuyuki, NAKATA Atsuyuki) (DP 14-E-037) Hiroyuki and SEKIGUCHI Kunio) (DP 14-E-029) ▶Are Large Headquarters Unproductive? Evidence from a panel of Japanese companies (MORIKAWA Masayuki) ▶Disasters and Risk Perception: Evidence from Thailand Floods (NAKATA Hiroyuki, SAWADA Yasuyuki and (14-E-036) SEKIGUCHI Kunio) (DP 14-E-028) ▶What Types of Company Have Female and Foreign Directors? (MORIKAWA Masayuki) (DP 14-E-032) Project: Basic Research on the Resilient Economy ▶Innovation in the Service Sector and the Role of Patents and Project Leader: FUJII Satoshi FF Trade Secrets (MORIKAWA Masayuki) (DP 14-E-030)

Discussion Paper ▶Policy Regime Change against Chronic Deflation? Policy ▶Empirical Analysis on the Relevance of the Resilience of option under a long-term liquidity trap (FUJIWARA Ippei, National Economies and Industry, Fiscal, and Monetary NAKAZONO Yoshiyuki and UEDA Kozo) (DP 14-E-019) Policies (MAEOKA Kenichiro, KANDA Yusuke, NAKANO ▶Migration Response to High Unemployment Rates: Spatial Takeshi, KUME Koichi and FUJII Satoshi) (DP 14-J-027) econometric analysis using Japanese municipal data (KONDO Keisuke) (DP 15-J-011) Policy Discussion Paper ▶Economic Resilience and Growth: Concept and applications ▶Development of Statistical Accuracy Improvement (FUJII Satoshi, KUME Koichi and KOBAYASHI Yohei) (PDP Methodology for Oil Refinery Sector's Energy and Carbon 14-P-006) Balance and Statistical Accuracy on Japanese General Energy Statistics (KAINOU Kazunari) (DP 15-J-007)

▶Development of the FY2013 Version of "General Energy Statistics of Japan" (KAINOU Kazunari) (DP 15-J-006) Multidisciplinary research results ▶Service Trade and Productivity (MORIKAWA Masayuki) (DP15-J-003) ＜Research results independent from any research ▶Recommendation of Draft Revised Standard Calorific Value project＞ and Carbon Emission Factor for Fossil Fuel Energy Sources in Japan: 2013 FY revised standard calorific value and Discussion Papers carbon emission factor (KAINOU Kazunari) (DP 14-J-047) ▶Service Trade and Productivity: Firm-level evidence from Japan (MORIKAWA Masayuki) (DP 15-E-030) ▶Gender Income Gap among White-Collar Regular Workers: A clarification of the determinants that explain an 80% of the Sequential Markets, Market Power and Arbitrage (ITO ▶ gap, and its mechanism (YAMAGUCHI Kazuo) (DP 14-J- Koichiro and Mar REGUANT) (DP 15-E-015) 046) ▶The Persistence of Moral Suasion and Economic Incentives: ▶Demographic Changes in China's Three Major Field experimental evidence from energy demand (ITO Megalopolises (MENG Jianjun) (DP 14-J-041) Koichiro, IDA Takanori and TANAKA Makoto) (DP 15-E-014) ▶Are Large Headquarters Unproductive? Evidence from a Fiscal Cost of Demographic Transition in Japan (KITAO ▶ Panel of Japanese Companies (MORIKAWA Masayuki) (DP Sagiri) (DP 15-E-013) 14-J-028)

SP ▶Decomposition of Gender or Racial Inequality with ▶What Types of Company Have Female and Foreign ： Endogenous Intervening Covariates: An extension of the Special Projects Directors? An analysis using survey data (MORIKAWA DiNardo-Fortin-Lemieux method (YAMAGUCHI Kazuo) (DP Masayuki) (DP 14-J-025) 14-E-061) ▶Innovation in the Service Sector and the Role of Patents and Trade Secrets (MORIKAWA Masayuki) (DP 14-J-024)

42 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Policy Discussion Papers KIET-TIER-RIETI Workshop ▶A New Monthly Index of Real Economic Activity, 1960-2013 “Future of Manufacturing Industry” (October 23, 2014) (ITO Arata) (PDP 15-P-004)

▶Implications for the Development of Local Economies and RIETI Special Seminar SMEs in Japan: Perspective from a field survey conducted “Creating Capabilities” by Nobel Prize-winning economist on Germany, the EU's strongest economy (IWAMOTO Professor James J. Heckman (October 8, 2014) Koichi) (15-P-002)

▶Quantitative Effects of Growth Policies: An overview (MORIKAWA Masayuki) (PDP 15-P-001)

Highlight Seminar series ▶The 11th Highlight Seminar “What is the New Direction of the Japanese Economy and Industry?” (January 30, 2015)

▶The 10th Highlight Seminar “Japan-China Economic Relations: Challenges and future directions” (November 10, 2014)

▶The 9th Highlight Seminar “New Growth Strategy: Rural James J. HECKMAN (Henry Schultz Distinguished Service Professor of Economics, The economy vitalization and aggressive agriculture” (September University of Chicago) 5, 2014)

▶The 8th Highlight Seminar “Prices and Economic Performance in Japan after the Consumption Tax Hike” (July RIETI Seminar on the U.S. Production Network 2, 2014) “Vertical Integration and Input Flows” (August 18, 2014)

CEPR-RIETI Workshop “Labour Market Policy for Economic Growth” (January 16, 2015)

Ali HORTAÇSU (Professor, University of Chicago)

RIETI International Seminar “Matching and Sorting in the Global Economy” (April 4, 2014)

Hitotsubashi-RIETI Energy Policy Salon ▶The Fourth Energy Policy Salon “World Record-breaking Photovoltaic Research in Japan, and the Next Steps toward Hydrogen Society” (January 7, 2015)

▶The Third Energy Policy Salon “Unveiling the Next Generation Fuel Cell Vehicle: The ultimate eco-car's status quo and perspective” (July 22, 2014)

▶The Second Energy Policy Salon “Genesis of the World- leading ‘ENE-FARM’ Residential Fuel Cell System: Its SP modular strategy and the ‘esprit’ of Japan's samurai ： engineers honored with the receipt of the Prime Minister's Special Projects

Award” (May 15, 2014) Elhanan HELPMAN (Galen L. Stone Professor of International Trade, Harvard University)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 43 Publications

Macro-performance of Small and Medium Enterprises

Written by GOTO Yasuo Nikkei Publishing Inc., October 2014

International Economics of Outsourcing: Changing global trade patterns and a microdata analysis of Japanese firms

Written by TOMIURA Eiichi Nippon Hyoronsha Co., Ltd., September 2014



Economic Analysis of Working Hours: Prospects for a working style in a super-aging society

Written by YAMAMOTO Isamu, KURODA Sachiko Nikkei Publishing Inc., April 2014 SP ： Special Projects

44 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Note: Discussion Papers listed below were published DP Discussion Papers from April 2014 to March 2015.

Discussion Papers are research results formed in the shape of treatises, which principally have been through an internal review process. To stimulate active debates, they are posted on our website. (http://www.rieti.go.jp/en/publications/act_dp.html)

DP No. Date Title Author（s） Project No.

Assessing Asian Equilibrium Exchange Rates as Policy MASUJIMA Yuki (Japan Center for 15-E-038 March 2015 II-3 Instruments Economic Research)

Effects of a Quantitative Easing Monetary Policy Exit Strategy OGAWA Eiji (RIETI) 15-E-037 March 2015 II-3 on East Asian Currencies WANG Zhiqian (Hitotsubashi University)

SATO Kiyotaka (Yokohama National University) SHIMIZU Junko (Gakushuin University) 15-E-036 March 2015 Industry-specific Real Effective Exchange Rates in Asia Nagendra SHRESTHA (Yokohama National II-3 University) Shajuan ZHANG (Yokohama National University)

William DUPONT IV (Colby College) The Long-Run Socio-Economic Consequences of a Large Ilan NOY (Victoria University of Wellington) 15-E-035 March 2015 SP-Others Disaster: The 1995 earthquake in Kobe OKUYAMA Yoko (Yale University) SAWADA Yasuyuki (RIETI)

TODO Yasuyuki (RIETI) The Strength of Long Ties and the Weakness of Strong Ties: 15-E-034 March 2015 Petr MATOUS (University of Tokyo) I-4 Knowledge diffusion through supply chain networks INOUE Hiroyasu (Osaka Sangyo University)

Marc BREMER (Nanzan University) HOSHI Akio (Gakushuin University) 15-E-033 March 2015 Uncertainty Avoiding Behavior and Cross-border Acquisitions INOUE Kotaro (Tokyo Institute of SP-1 Technology) SUZUKI Kazunori (Waseda University)

Impact of Extensive and Intensive Margins of FDI on MATSUURA Toshiyuki (Keio Economic 15-E-032 March 2015 Corporate Domestic Performance: Evidence from Japanese I-1 Observatory, Keio University) automobile parts suppliers

OGAWA Kazuo (Institute of Social and Productivity, Firm Size, Financial Factors, and Exporting Economic Research, Osaka University) 15-E-031 March 2015 VI-3 Decisions: The case of Japanese SMEs TOKUTSU Ichiro (Graduate School of Business Administration, Kobe University)

Service Trade and Productivity: Firm-level evidence from 15-E-030 March 2015 MORIKAWA Masayuki (RIETI) Multidisciplinary Japan

Impact of Exchange Rate Shocks on Japanese Exports: IWAISAKO Tokuo (Hitotsubashi University) 15-E-029 March 2015 II-2 Quantitative assessment using a structural VAR model NAKATA Hayato (Meisei University)

IWAISAKO Tokuo (Hitotsubashi University) 15-E-028 March 2015 Oil Price, Exchange Rate Shock, and the Japanese Economy II-2 NAKATA Hayato (Meisei University)

ARAKI Shota (RIETI) University Prestige, Performance Evaluation, and Promotion: KAWAGUCHI Daiji (RIETI) 15-E-027 March 2015 Estimating the employer learning model using personnel VII-2 ONOZUKA Yuki (Hitotsubashi University / datasets University of Western Ontario)

YOSHIKAWA Hiroshi (RIETI) AOYAMA Hideaki (RIETI) 15-E-026 March 2015 Deflation/Inflation Dynamics: Analysis based on micro prices VI-7 IYETOMI Hiroshi (University of Tokyo) FUJIWARA Yoshi (University of Hyogo)

15-E-025 March 2015 Aid for Trade and Global Growth NAITO Takumi (Waseda University) I-3

YOSHIDA Yushi (Shiga University) 15-E-024 February 2015 Automobile Exports: Export price and retail price II-1 SASAKI Yuri (Meiji Gakuin University)

Comparative Advantage, Monopolistic Competition, and 15-E-023 February 2015 Heterogeneous Firms in a Ricardian Model with a Continuum ARA Tomohiro (Fukushima University) I-3 of Sectors

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 45 DP No. Date Title Author（s） Project No.

Aging, Interregional Income Inequality, and Industrial FUKAO Kyoji (RIETI) 15-E-022 February 2015 Structure: An empirical analysis based on the R-JIP Database V-3 MAKINO Tatsuji (Hitotsubashi University) and the R-LTES Database

WAKASUGI Ryuhei (RIETI) 15-E-021 February 2015 Impacts of the World Trade Organization on Chinese Exports I-1 ZHANG Hongyong (RIETI)

SHIMIZU Junko (Gakushuin University) Abenomics, Yen Depreciation, Trade Deficit, and Export 15-E-020 February 2015 SATO Kiyotaka (Yokohama National II-1 Competitiveness University)

USHIJIMA Tatsuo (Aoyama Gakuin 15-E-019 February 2015 Diversification, Organization, and Value of the Firm SP-1 University)

The Quality of Distance: Quality sorting, Alchian-Allen effect, 15-E-018 February 2015 TAKECHI Kazutaka (Hosei University) I-3 and geography

KANO Kazuko (Musashino University) The Price of Distance: Pricing to market, producer 15-E-017 February 2015 KANO Takashi (Hitotsubashi University) I-3 heterogeneity, and geographic barriers TAKECHI Kazutaka (Hosei University)

Enjoying the Fruits of their Labor: Redirecting exports to 15-E-016 February 2015 THORBECKE, Willem (RIETI) II-5 Asian consumers

ITO Koichiro (RIETI) 15-E-015 February 2015 Sequential Markets, Market Power and Arbitrage Multidisciplinary Mar REGUANT (Stanford GSB / NBER)

ITO Koichiro (RIETI) The Persistence of Moral Suasion and Economic Incentives: 15-E-014 February 2015 IDA Takanori (Kyoto University) Multidisciplinary Field experimental evidence from energy demand TANAKA Makoto (GRIPS)

15-E-013 February 2015 Fiscal Cost of Demographic Transition in Japan KITAO Sagiri (RIETI) Multidisciplinary

Trade in Services and Japan's Bilateral FTAs: Empirics on their 15-E-012 January 2015 ISHIDO Hikari (Chiba University) I-5 impacts

HOSONO Kaoru (Gakushuin University) 15-E-011 January 2015 Misallocation and Establishment Dynamics V-5 TAKIZAWA Miho (Toyo University)

Globalization and Domestic Operations: Applying the JC/JD ANDO Mitsuyo (Keio University) 15-E-010 January 2015 V-1 method to Japanese manufacturing firms KIMURA Fukunari (Keio University / ERIA)

The Impact of Foreign Firms on Industrial Productivity: A TANAKA Kiyoyasu (Institute of Developing 15-E-009 January 2015 V-5 Bayesian-model averaging approach Economies, JETRO)

Matthew A. COLE (University of Birmingham) Natural Disasters, Industrial Clusters and Manufacturing Robert J R ELLIOTT (University of 15-E-008 January 2015 III-1 Plant Survival Birmingham) OKUBO Toshihiro (Keio University) Eric STROBL (Ecole Polytechnique)

WAKI Yuichiro (University of Queensland) The Optimal Degree of Monetary-Discretion in a New 15-E-007 January 2015 Richard DENNIS (University of Glasgow) VIII-6 Keynesian Model with Private Information FUJIWARA Ippei (RIETI)

Constructing China's Net Capital and Measuring Capital 15-E-006 January 2015 Harry X. WU (Hitotsubashi University) V-1 Services in China, 1980-2010

Harry X. WU (Hitotsubashi University) Constructing Annual Employment and Compensation Ximing YUE (Renmin University of China) 15-E-005 January 2015 V-1 Matrices and Measuring Labor Input in China George G. ZHANG (University of Wisconsin, Madison)

Reconstructing China's Supply-Use and Input-Output Tables Harry X. WU (Hitotsubashi University) 15-E-004 January 2015 V-1 in Time Series ITO Keiko (Senshu University)

ITO Banri (Harvard University / Senshu University) Trade Policy Preferences and Cross-Regional Differences: 15-E-003 January 2015 MUKUNOKI Hiroshi (Gakushuin University) I-2 Evidence from individual-level data of Japan TOMIURA Eiichi (RIETI) WAKASUGI Ryuhei (RIETI)

The Impact of Globalization on Establishment-Level KODAMA Naomi (RIETI) 15-E-002 January 2015 V-5 Employment Dynamics in Japan INUI Tomohiko (RIETI)

46 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 DP No. Date Title Author（s） Project No.

SEKIZAWA Yoichi (RIETI) Does the Three Good Things Exercise Really Make People 15-E-001 January 2015 YOSHITAKE Naomi (Ochanomizu VII-Others More Positive and Less Depressed? A study in Japan University)

Nuclear Power Plants Shutdown and Alternative Power HOSOE Nobuhiro (National Graduate 14-E-069 December 2014 Plants Installation: A nine-region spatial equilibrium analysis VI-4 Institute for Policy Studies (GRIPS)) of the electric power market in Japan

Industrial Agglomeration and Dispersion in China: Spatial 14-E-068 November 2014 ITO Asei (University of Tokyo) I-1 reformation of the "workshop of the world"

TOMIURA Eiichi (RIETI) ITO Banri (Harvard University / Senshu Reciprocal Versus Unilateral Trade Liberalization: Comparing 14-E-067 November 2014 University) I-2 individual characteristics of supporters MUKUNOKI Hiroshi (Gakushuin University) WAKASUGI Ryuhei (RIETI)

Supply Chain Internationalization in East Asia: Inclusiveness FUJITA Masahisa (RIETI) 14-E-066 November 2014 III-1 and risks HAMAGUCHI Nobuaki (RIETI)

ISHIKAWA Jota (RIETI) MORITA Hodaka (University of New South 14-E-065 November 2014 Trade Liberalization and Aftermarket Services for Imports I-3 Wales) MUKUNOKI Hiroshi (Gakushuin University)

Lender Banks' Provision of Overseas Market Information: INUI Tomohiko (RIETI) 14-E-064 October 2014 Evidence from Japanese small and medium-sized enterprises' ITO Keiko (Senshu University) VI-3 export dynamics MIYAKAWA Daisuke (Nihon University)

Does the Policy Lending of the Government Financial Institution Substitute for the Private Lending during the SEKINO Masahiro (ISI Software Co., Ltd) 14-E-063 October 2014 VI-3 Period of the Credit Crunch? Evidence from loan level data in WATANABE Wako (Keio University) Japan

AGO Takanori (Senshu University) MORITA Tadashi (Kindai University) 14-E-062 October 2014 Endogenous Labor Supply and International Trade III-2 TABUCHI Takatoshi (RIETI) YAMAMOTO Kazuhiro (Osaka University)

Decomposition of Gender or Racial Inequality with 14-E-061 October 2014 Endogenous Intervening Covariates: An extension of the YAMAGUCHI Kazuo (RIETI) Multidisciplinary DiNardo-Fortin-Lemieux method

A Comparison of the Wage Structure between the Public and 14-E-060 October 2014 MORIKAWA Masayuki (RIETI) Multidisciplinary Private Sectors in Japan

OKUBO Toshihiro (Keio University) 14-E-059 October 2014 Roles of Wholesalers in Transaction Networks ONO Yukako (Keio University) III-Others SAITO Yukiko (RIETI)

Intangible Investments and their Consequences: New 14-E-058 October 2014 HARADA Nobuyuki (University of Tsukuba) V-2 evidence from unlisted Japanese companies

The Economics of Attribute-Based Regulation: Theory and ITO Koichiro (RIETI) 14-E-057 September 2014 Multidisciplinary evidence from fuel-economy standards James M. SALLEE (University of Chicago)

ITO Asei (University of Tokyo) What Types of Science and Technology Policies Stimulate Zhuoran LI (University of Tokyo) 14-E-056 September 2014 I-1 Innovation? Evidence from Chinese firm-level data Min WANG (University of Electronic Science and Technology of China)

UCHIDA Hirofumi (Kobe University) MIYAKAWA Daisuke (Nihon University) HOSONO Kaoru (Gakushuin University) 14-E-055 August 2014 Natural Disaster and Natural Selection VI-3 ONO Arito (Mizuho Research Institute) UCHINO Taisuke (RIETI) UESUGI Iichiro (RIETI)

ONO Arito (Mizuho Research Institute) MIYAKAWA Daisuke (Nihon University) Transaction Partners and Firm Relocation Choice: Evidence HOSONO Kaoru (Gakushuin University) 14-E-054 August 2014 VI-3 from the Tohoku Earthquake UCHIDA Hirofumi (Kobe University) UCHINO Taisuke (RIETI) UESUGI Iichiro (RIETI)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 47 DP No. Date Title Author（s） Project No.

INOUE Hiroyasu (Osaka Sangyo University) 14-E-053 August 2014 Localization of Knowledge-creating Establishments NAKAJIMA Kentaro (Tohoku University) III-Others SAITO Yukiko (RIETI)

KAWATA Keisuke (Hiroshima University) 14-E-052 August 2014 Competitive Search with Moving Costs NAKAJIMA Kentaro (Tohoku University) III-2 SATO Yasuhiro (Osaka University)

KIYOTA Kozo (RIETI) Disemployment Caused by Foreign Direct Investment? 14-E-051 August 2014 KAMBAYASHI Ryo (Hitotsubashi V-5 Multinationals and Japanese employment University)

How Does the Market Value Organizational Management KAWAKAMI Atsushi (Teikyo University) 14-E-050 August 2014 V-2 Practices of Japanese Firms? Using interview survey data ASABA Shigeru (Waseda University)

14-E-049 August 2014 Measuring the Competitiveness of China's Processed Exports THORBECKE, Willem (RIETI) II-5

MIYAGAWA Tsutomu (RIETI) Keun LEE (Seoul National University) Is Productivity Growth Correlated with Improvements in EDAMURA Kazuma (National Institute of 14-E-048 August 2014 Management Quality? An empirical study using interview Science and Technology Policy) V-2 surveys in Korea and Japan YoungGak KIM (Senshu University) Hosung JUNG (Samsung Economic Research Institute)

Kenneth S. ROGOFF (Harvard University) 14-E-047 August 2014 Japan's Exorbitant Privilege Multidisciplinary TASHIRO Takeshi (RIETI)

The Impact of a Demand Shock on the Employment of HOSONO Kaoru (Gakushuin University) 14-E-046 August 2014 Temporary Agency Workers: Evidence from Japan during the TAKIZAWA Miho (Toyo University) VII-1 global financial crisis TSURU Kotaro (RIETI)

Economic Geography, Endogenous Fertility, and MORITA Tadashi (Kindai University) 14-E-045 July 2014 III-2 Agglomeration YAMAMOTO Kazuhiro (Osaka University)

14-E-044 July 2014 Public Debt Overhang in the Heterogeneous Agent Model KOBAYASHI Keiichiro (RIETI) II-4

14-E-043 July 2014 There is No Natural Debt Limit with Consumption Tax KOBAYASHI Keiichiro (RIETI) II-4

Information Asymmetry in SME Credit Guarantee Schemes: SAITO Kuniyoshi (Meiji Gakuin University) 14-E-042 July 2014 VI-3 Evidence from Japan TSURUTA Daisuke (Nihon University)

How the Movement of Natural Persons Agreement Could 14-E-041 July 2014 KOMORIYA Yoshimasa (Chuo University) I-Others Fuel FTAs

MATSUDA Naoko (RIETI) 14-E-040 July 2014 Governing Board Interlocks and Probability of an IPO SP-5 MATSUO Yutaka (University of Tokyo)

14-E-039 July 2014 China-U.S. Trade: A global outlier THORBECKE, Willem (RIETI) II-5

14-E-038 July 2014 Representative Agent in a Form of Probability Distribution INOSE Junya (University of Tokyo) VI-2

Does Export Yield Productivity and Markup Premiums? 14-E-037 July 2014 KATO Atsuyuki (RIETI) Multidisciplinary Evidence from the Japanese manufacturing industry

Are Large Headquarters Unproductive? Evidence from a 14-E-036 July 2014 MORIKAWA Masayuki (RIETI) Multidisciplinary panel of Japanese companies

Vasco M. CARVALHO (University of Supply Chain Disruptions: Evidence from the Great East Cambridge, CREi, and Barcelona GES) 14-E-035 June 2014 III-Others Japan Earthquake NIREI Makoto (Hitotsubashi University) SAITO Yukiko (RIETI)

Andrew B. BERNARD (Tuck School of Business at Dartmouth, CEPR & NBER) Geography and Firm Performance in the Japanese Production 14-E-034 June 2014 Andreas MOXNES (Dartmouth III-Others Network C o l l e g e , C E P R & N B E R ) SAITO Yukiko (RIETI)

14-E-033 June 2014 Firm Growth Dynamics: The importance of large jumps ARATA Yoshiyuki (University of Tokyo) VI-2

14-E-032 June 2014 What Types of Company Have Female and Foreign Directors? MORIKAWA Masayuki (RIETI) Multidisciplinary

Export Sophistication and Exchange Rate Elasticities: The THORBECKE, Willem (RIETI) 14-E-031 June 2014 II-5 Case of Switzerland KATO Atsuyuki (RIETI)

48 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 DP No. Date Title Author（s） Project No.

Innovation in the Service Sector and the Role of Patents and 14-E-030 June 2014 MORIKAWA Masayuki (RIETI) Multidisciplinary Trade Secrets

SAWADA Yasuyuki (RIETI) Natural Disasters, Land Price, and Location of Firms: Evidence 14-E-029 June 2014 NAKATA Hiroyuki (RIETI) SP-Others from Thailand SEKIGUCHI Kunio (RIETI)

NAKATA Hiroyuki (RIETI) 14-E-028 June 2014 Disasters and Risk Perception: Evidence from Thailand Floods SAWADA Yasuyuki (RIETI) SP-Others SEKIGUCHI Kunio (RIETI)

Impact of Supply Chain Network Structure on FDI: Theory ITOH Ryo (Nagoya City University) 14-E-027 May 2014 VI-3 and evidence NAKAJIMA Kentaro (Tohoku University)

Business Cycles, Monetary Policy, and Bank Lending: HOSONO Kaoru (Gakushuin University) 14-E-026 May 2014 Identifying the bank balance sheet channel with firm-bank VI-3 MIYAKAWA Daisuke (Nihon University) match-level loan data

OSHIO Takashi (Hitotsubashi University) Does Initial Job Status Affect Midlife Outcomes and Mental 14-E-025 May 2014 INAGAKI Seiichi (Tokyo Institute of VII-Others Health? Evidence from a survey in Japan Technology)

ITO Takahiro (Kobe University) 14-E-024 May 2014 The Hidden Curriculum and Social Preferences KUBOTA Kohei (Yamagata University) VII-Others OHTAKE Fumio (Osaka University)

The Effects of Personality Traits and Behavioral Characteristics LEE SunYoun (Meiji Gakuin University) 14-E-023 May 2014 VII-Others on Schooling, Earnings, and Career Promotion OHTAKE Fumio (Osaka University)

How Does Agglomeration Promote the Product Innovation 14-E-022 May 2014 ZHANG Hongyong (RIETI) I-1 of Chinese Firms?

SUZUKI Jun (National Graduate Institute Innovation and Public Research Institutes: Cases of AIST, for Policy Studies (GRIPS)) 14-E-021 May 2014 IV-3 RIKEN, and JAXA TSUKADA Naotoshi (RIETI) GOTO Akira (RIETI)

The Effects of Endogenous Interdependencies on Trade Petr MATOUS (University of Tokyo) 14-E-020 April 2014 Network Formation across Space among Major Japanese I-4 TODO Yasuyuki (RIETI) Firms

FUJIWARA Ippei (RIETI) Policy Regime Change against Chronic Deflation? Policy NAKAZONO Yoshiyuki (Yokohama City 14-E-019 April 2014 Multidisciplinary option under a long-term liquidity trap University) UEDA Kozo (Waseda University)

Empirical Analysis on Factors Behind Successful MATSUDA Naoko (RIETI) 14-E-018 April 2014 SP-Others Entrepreneurs MATSUO Yutaka (University of Tokyo)

KAWAGUCHI Daiji (RIETI) 14-E-017 April 2014 Winning the Race against Technology MORI Yuko (Japan Society for the VII-Others Promotion of Science (JSPS))

Andrew S. GRIFFEN (University of Tokyo) Fertility and Maternal Labor Supply in Japan: Conflicting 14-E-016 April 2014 NAKAMURO Makiko (Keio University) V-4 policy goals? INUI Tomohiko (RIETI)

14-E-015 April 2014 Fiscal Consolidation in Japan FUKAO Mitsuhiro (RIETI) VIII-Others

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 49 DP No. Date Title Author（s） Project No.

Discussion Papers written in Japanese

Product Innovation and Economic Growth Part IV: Demand YOSHIKAWA Hiroshi (RIETI) 15-J-012 March 2015 VI-2 changes in an aging society ANDO Koichi (Chuo University)

Migration Response to High Unemployment Rates: Spatial 15-J-011 March 2015 KONDO Keisuke (RIETI) Multidisciplinary econometric analysis using Japanese municipal data

Price, Quality, and Productivity: Reconsidering the MATSUURA Toshiyuki (Keio Economic 15-J-010 March 2015 V-5 determinants of exporting behavior Observatory, Keio University)

Exploring the Patterns of Venture Capital Syndication: TAKIZAWA Miho (Toyo University) 15-J-009 March 2015 VI-3 Evidence from investment-round data MIYAKAWA Daisuke (Nihon University)

HASEGAWA Makoto (National Graduate The Effect of Moving to a Territorial Tax System on Profit 15-J-008 March 2015 Institute for Policy Studies (GRIPS)) I-1 Repatriations: Evidence from Japan KIYOTA Kozo (RIETI)

Development of Statistical Accuracy Improvement Methodology for Oil Refinery Sector's Energy and Carbon 15-J-007 March 2015 KAINOU Kazunari (RIETI) Multidisciplinary Balance and Statistical Accuracy on Japanese General Energy Statistics

Development of the FY2013 Version of "General Energy 15-J-006 March 2015 KAINOU Kazunari (RIETI) Multidisciplinary Statistics of Japan"

The Going-Public Decision and Post-IPO Performance: HOSONO Kaoru (Gakushuin University) 15-J-005 March 2015 VI-3 Evidence from Japan TAKIZAWA Miho (Toyo University)

Clarification of Evolution of the Principle of Non- Discrimination under the WTO Agreement: Recent 15-J-004 February 2015 KAWASE Tsuyoshi (RIETI) I-6 developments in case law and their implications for Members' policy space

15-J-003 February 2015 Service Trade and Productivity MORIKAWA Masayuki (RIETI) Multidisciplinary

Do People Support Compensation for Trade Liberalization? 15-J-002 January 2015 KUNO Arata (Kyorin University) I-5 Evidence from a survey experiment in Japan

KUREISHI Wataru (National Institute of Decline in Consumption Expenditures after Retirement Using 15-J-001 January 2015 Population and Social Security Research) VIII-7 Japanese Micro Data (JSTAR) YIN Ting (RIETI)

INUI Tomohiko (RIETI) Does Board Diversity Influence Firms' Innovative Activity? NAKAMURO Makiko (Keio University) 14-J-055 December 2014 VII-Others Evidence from the firm-level micro data in Japan EDAMURA Kazuma (NISTEP) OZAWA Junko (Cabinet Office)

Corporate Disclosure of Non-financial Information and KODAMA Naomi (RIETI) 14-J-054 December 2014 VII-Others Ownership by Foreign Shareholders TAKAMURA Shizuka (RIETI)

Financial Shocks and Japan's Export Collapse during the 14-J-053 November 2014 Global Financial Crisis: Evidence from bank-firm matched UCHINO Taisuke (RIETI) II-2 data

ITO Banri (Harvard University / Senshu University) Trade Policy Preferences and Cross-Regional Differences: 14-J-052 November 2014 MUKUNOKI Hiroshi (Gakushuin University) I-2 Evidence from individual-level data of Japan TOMIURA Eiichi (RIETI) WAKASUGI Ryuhei (RIETI)

Impact of Exchange Rate Shocks on Japanese Exports: IWAISAKO Tokuo (RIETI) 14-J-051 November 2014 II-2 Quantitative assessment using the structural VAR model NAKATA Hayato (Meisei University)

IWAISAKO Tokuo (RIETI) 14-J-050 November 2014 II-2 Oil Price, Exchange Rate Shock, and the Japanese Economy NAKATA Hayato (Meisei University)

Informing SMEs Better about Available Support Measures: 14-J-049 November 2014 YASUDA Takehiko (Toyo University) IX-Others Consideration of the case of micro businesses

Female Labor Market, Intra-household Allocation, and 14-J-048 October 2014 UNAYAMA Takashi (RIETI) VI-Others Marriage

Recommendation of Draft Revised Standard Calorific Value and Carbon Emission Factor for Fossil Fuel Energy Sources in 14-J-047 October 2014 KAINOU Kazunari (RIETI) Multidisciplinary Japan: 2013 FY revised standard calorific value and carbon emission factor

Gender Income Gap among White-Collar Regular Workers: A 14-J-046 September 2014 clarification of the determinants that explain an 80% of the YAMAGUCHI Kazuo (RIETI) Multidisciplinary gap, and its mechanism

Effects of Lending Relationships with Government Banks on UESUGI Iichiro (RIETI) 14-J-045 September 2014 Firm Performance: Evidence from a Japanese government UCHIDA Hirofumi (Kobe University) VI-3 bank for small businesses MIZUSUGI Yuta (SHIFT Incorporated)

50 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 DP No. Date Title Author（s） Project No.

NAGAOKA Sadao (RIETI) Incentive Design for Inventors: Theory and empirical OWAN Hideo (RIETI) 14-J-044 September 2014 IV-1 evidence ONISHI Koichiro (Osaka University of Technology)

14-J-043 August 2014 Rice Tariffs and Their Impact on the Japanese Market KEIDA Masayuki (Rissho University) VI-2

Increasing Organizational Performance through Diversity TANIGUCHI Mami (Waseda University / 14-J-042 August 2014 VII-Others and Organizational Climate Initiatives: What works, what Massachusetts Institute of Technology) doesn't

14-J-041 August 2014 Demographic Changes in China's Three Major Megalopolises MENG Jianjun (RIETI) Multidisciplinary

The Effect of Corporate Tax Rate Reduction: A simulation HASUMI Ryo (Japan Center for Economic 14-J-040 August 2014 VIII-1 analysis with a small open economy DSGE model for Japan Research)

Open Innovation Effects of Patent Applications: An empirical 14-J-039 August 2014 KINUKAWA Shinya (Komazawa University) IV-2 study of inkjet technology patents

Scientific Sources of Corporate Inventions in Japan: Evidence NAGAOKA Sadao (RIETI) 14-J-038 August 2014 IV-1 from an inventor survey YAMAUCHI Isamu (RIETI)

SANO Shinpei (Chiba University) 14-J-037 July 2014 VII-Others The Impact of Student Loan Reform on College Enrollment KAWAMOTO Takaaki (Hyakugo Bank)

HASHIMOTO Yuki (Kyushu University) 13-J-036 June 2014 VII-2 Wages, Promotions, and Gender Workplace Segregation SATO Kaori (University of Tokyo)

Industrial Agglomeration in China: Case studies of the KURITA Kyosuke (Kwansei Gakuin 14-J-035 May 2014 III-Others Chinese Silicon Valley and the coastal SEZ University)

Enhancing Enterprise Power through Exporting: Verification KURITA Kyosuke (Kwansei Gakuin 14-J-034 May 2014 III-Others of the learning effect by exporting University)

YIN Ting (RIETI) KAWATA Keisuke (Hiroshima University) Wage Structure of Japanese Care Worker: College Premium 14-J-033 May 2014 XU Zhaoyuan (Enterprise Research VIII-4 and Qualification Premium Institute, Development Research Center of the State Council)

The Potential for Women's Career Development through USHIO Naomi (Meiji University) 14-J-032 May 2014 VII-Others Overseas Employment and Accumulation of Management SHIMURA Kotaro (Humanage, Inc.) Know-How

Organizational Informatization and Promoting the Active USHIO Naomi (Meiji University) 14-J-031 May 2014 VII-Others Participation of Women in the Workplace SHIMURA Kotaro (Humanage, Inc.)

OSAWA Machiko (Japan Women's An Introduction to Affirmative Action Policies in Korea: 14-J-030 May 2014 University) VII-Others Consequences and implications for Japan KIM Myoung Jung (NLI Research Institute)

Does Gender Diversity in Management Contribute to 14-J-029 May 2014 Profitability, Productivity, and the AA system in China and ISHIZUKA Hiromi (Sanno University) VII-Others Korea?

Are Large Headquarters Unproductive? Evidence from a 14-J-028 May 2014 MORIKAWA Masayuki (RIETI) Multidisciplinary Panel of Japanese Companies

MAEOKA Kenichiro (Ministry of Defense) Empirical Analysis on the Relevance of the Resilience of KANDA Yusuke (Kyoto University) 14-J-027 May 2014 National Economies and Industry, Fiscal, and Monetary NAKANO Takeshi (RIETI) SP-Others Policies KUME Koichi (Recruit Works Institute) FUJII Satoshi (RIETI)

Japanese Industrial Policy and the Enhancement of Nuclear 14-J-026 May 2014 Power Plants Efficiency: Promotion of domestic production ISHII Susumu (Gakushuin University) IX-Others and the "Improvement & Standardization Plan"

What Types of Company Have Female and Foreign Directors? 14-J-025 May 2014 MORIKAWA Masayuki (RIETI) Multidisciplinary An analysis using survey data

Innovation in the Service Sector and the Role of Patents and 14-J-024 April 2014 MORIKAWA Masayuki (RIETI) Multidisciplinary Trade Secrets

Relationship between Governing Board Interlocks and Initial MATSUDA Naoko (RIETI) 14-J-023 April 2014 SP-5 Public Offerings MATSUO Yutaka (University of Tokyo)

SHIMIZU Junko (Gakushuin University) Abenomics, Yen Depreciation, Trade Deficit and Export 14-J-022 April 2014 SATO Kiyotaka (Yokohama National II-1 Competitiveness University)

Workers' Mental Health and Firm Performance: Evidence KURODA Sachiko (Waseda University) 14-J-021 April 2014 VII-Others from firms' longitudinal data in Japan YAMAMOTO Isamu (Keio University)

Workers' Mental Health, Long Work Hours, and Workplace KURODA Sachiko (Waseda University) 14-J-020 April 2014 VII-Others Management: Evidence from workers' longitudinal data in YAMAMOTO Isamu (Keio University) Japan

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 51 Note: Policy Discussion Papers listed below were published PDP Policy Discussion Papers from April 2014 to March 2015.

Policy Discussion Papers have a strong link to timely policy issues facing Japan. They are available only in Japanese unless otherwise stated. (http://www.rieti.go.jp/en/publications/act_pdp.html)

PDP No. Date Title Author（s） Project No.

15-P-004 March 2015 A New Monthly Index of Real Economic Activity, 1960-2013 ITO Arata (RIETI) Multidisciplinary

The Credit Guarantee System and Policy-based Finance for 15-P-003 March 2015 Small- and Medium-sized Enterprises and a Database of YOSHINO Naoyuki (RIETI) SP-Others Small- and Medium-sized Enterprises

Implications for the Development of Local Economies and 15-P-002 March 2015 SMEs in Japan: Perspective from a field survey conducted on IWAMOTO Koichi (RIETI) Multidisciplinary Germany, the EU's strongest economy

15-P-001 February 2015 Quantitative Effects of Growth Policies: An overview MORIKAWA Masayuki (RIETI) Multidisciplinary

1 4 - P - 0 2 3 Services Negotiation and Plurilateral Agreements: TISA and September 2014 NAKATOMI Michitaka (RIETI) I-Others (in English) sectoral approach

[WTO Case Review Series No. 9] United States—Certain 14-P-022 September 2014 Country of Origin Labelling Requirements (DS384, 386): The NAIKI Yoshiko (Osaka University) I-6 impacts of country of origin labelling on international trade

Trends and Characteristics of Foreign Direct Investment in TANAKA Kiyoyasu (Institute of Developing 14-P-021 August 2014 V-5 Japan Economies, JETRO)

1 4 - P - 0 2 0 Age of De Jure Standard and its Determinants: Dataset August 2014 TAMURA Suguru (RIETI) IV-5 (in English) linking standard technology areas to economic survey data

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-019 August 2014 IX-Others Abstract of Tetsuo Nakata (ed.), History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (12) Small- and Medium-sized Enterprises

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-018 August 2014 IX-Others Abstract of Nobuhiro Nakayama, History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (11) Intellectual Property Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-017 August 2014 IX-Others Abstract of Takeo Kikkawa, History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (10) Natural Resources and Energy Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-016 August 2014 IX-Others Abstract of Minoru Sawai, History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (9) Industrial Technology Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-015 August 2014 IX-Others Abstract of Shigeru Matsushima, History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (8) Consumer Goods Industries

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-014 August 2014 IX-Others Abstract of Shin Hasegawa (ed.), History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (7) Machinery and Information Industries

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-013 August 2014 IX-Others Abstract of Shiro Yamazaki (ed.), History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (6) Basic Industries Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-012 August 2014 IX-Others Abstract of Haruhito Takeda, History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (5) Location, Environment and Safety Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-011 August 2014 IX-Others Abstract of Takemasa Ishihara (ed.), History of Japan's Trade TAKEDA Haruhito (RIETI) and Industry Policy (4) Commerce and Distribution Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-010 August 2014 IX-Others Abstract of Tetsuji Okazaki (ed.), History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (3) Industry Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-009 August 2014 IX-Others Abstract of Takeshi Abe (ed.), History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (2) International Trade Policy

Abstract of History of Japan's Trade and Industry Policy: KAWAMURA Satoshi (RIETI) 14-P-008 August 2014 IX-Others Abstract of Konosuke Odaka, History of Japan's Trade and TAKEDA Haruhito (RIETI) Industry Policy (1) General Overview

Foreign Direct Investment in Japan: A review of the empirical 14-P-007 June 2014 KIYOTA Kozo (RIETI) V-5 literature

FUJII Satoshi (RIETI) 14-P-006 May 2014 Economic Resilience and Growth: Concept and applications KUME Koichi (Recruit Works Institute) SP-Others KOBAYASHI Yohei (RIETI)

52 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Public Relations Activities

Dissemination of Research Results

The role of policy research institutes does not end with the completion of research. They have an obligation to stimulate policy debates by broadly disseminating the results of their research. RIETl actively circulates its research results via its website, issues publications and publicity materials, and holds symposiums and seminars.

Publications

Website

Publicity Materials

Symposium, Workshops, and Seminars

00 独立行政法人 経済産業研究所アニュアルレポート2014 Public Relations Activities Publications

RIETI's publications cover a diverse array of themes and appear under the imprint of various publishers. The contents Publications in the first and second medium-term periods (2001-2005/2006-2010) are seen on: range from studies of a high academic standard that have undergone peer review in their respective disciplines to timely http://www.rieti.go.jp/en/publications/act_rb.html policy study topics for a wider audience. (http://www.rieti.go.jp/en/publications/act_rb.html)

Publications in the third medium-term period (2011–2015)

Intangibles, Market Macro-performance of International Economics Economic Analysis of Japan's Economy and Theories of the Enterprise Optimum Disclosure Internationalization of Failure and Innovation Small and Medium of Outsourcing: Working Hours: Prospects the Two Lost Decades Law Reformation: System in the Era of Modern Japanese Performance Enterprises Changing global trade for a working style in a March 2012 Institutional designs of International Financial Firms: Analyses of December 2014 October 2014 patterns and a microdata super-aging society Written by FUKAO Kyoji the incentive system Reporting Standards panel data Nikkei Publishing Inc. Edited by Ahmed BOUNFOUR, Written by GOTO Yasuo analysis of Japanese firms April 2014 October 2011 (IFRS) October 2011 MIYAGAWA Tsutomu Nikkei Publishing Inc. September 2014 Written by YAMAMOTO Isamu, Written and edited by October 2011 Edited by WAKASUGI Ryuhei Springer Written by TOMIURA Eiichi KURODA Sachiko SHISHIDO Zenichi Written and edited by KOGA Iwanami Shoten, Publishers Nippon Hyoronsha Co., Ltd. Nikkei Publishing Inc. Nikkei Publishing Inc. Chitoshi Chikura Publishing Co., Ltd.

Internationalization of Global Niche Top Productivity in Service Environment, Energy, True Potential of the Corporate Governance Non-regular Japanese Firms: Enterprises Industries: Empirical and Resource Japanese Economy: in Japan: Toward a Employment System Evidence from March 2014 analyses using Strategies: Exploring When the lying dragon redesign and Reform in Japan: Firm-level Data Written by HOSOYA Yuji microdata new growth areas awakes restoration of Changing the way March 2014 Hakuto-Shobo Publishing February 2014 September 2013 August 2011 competitiveness people work Written and edited by Company Written by MORIKAWA Written and edited by MANAGI Written by TODO Yasuyuki June 2011 June 2011 WAKASUGI Ryuhei Masayuki Shunsuke Chuokoron-Shinsha,Inc. Written and edited by Written and edited by TSURU Nippon Hyoronsha Co., Ltd. Nippon Hyoronsha Co., Ltd. MIYAJIMA Hideaki Kotaro, HIGUCHI Yoshio, Toyo Keizai Inc. MIZUMACHI Yuichiro Nippon Hyoronsha Co., Ltd.

Minimum Wage Reform Economic Resilience Work-Life Balance in High-tech Industry and July 2013 June 2013 Japan as Seen from a Regional Eco-system Written and edited by OHTAKE Written and edited by FUJII Perspective of April 2012 Fumio, KAWAGUCHI Daiji, Satoshi International Comparison Written by NISHIZAWA Akio, TSURU Kotaro Nippon Hyoronsha Co., Ltd. June 2012 KUTSUNA Kenji, HIBARA Nippon Hyoronsha Co., Ltd. Written and edited by Nobuhiko, SABURI Masataka, WAKABAYASHI Naoki and TAKEISHI Emiko KANAI Kazuyori Minerva Shobo Yuhikaku Publishing Co., Ltd.

54 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Public Relations Activities Publications

RIETI's publications cover a diverse array of themes and appear under the imprint of various publishers. The contents Publications in the first and second medium-term periods (2001-2005/2006-2010) are seen on: range from studies of a high academic standard that have undergone peer review in their respective disciplines to timely http://www.rieti.go.jp/en/publications/act_rb.html policy study topics for a wider audience. (http://www.rieti.go.jp/en/publications/act_rb.html)

Publications in the third medium-term period (2011–2015)

Intangibles, Market Macro-performance of International Economics Economic Analysis of Japan's Economy and Theories of the Enterprise Optimum Disclosure Internationalization of Failure and Innovation Small and Medium of Outsourcing: Working Hours: Prospects the Two Lost Decades Law Reformation: System in the Era of Modern Japanese Performance Enterprises Changing global trade for a working style in a March 2012 Institutional designs of International Financial Firms: Analyses of December 2014 October 2014 patterns and a microdata super-aging society Written by FUKAO Kyoji the incentive system Reporting Standards panel data Nikkei Publishing Inc. Edited by Ahmed BOUNFOUR, Written by GOTO Yasuo analysis of Japanese firms April 2014 October 2011 (IFRS) October 2011 MIYAGAWA Tsutomu Nikkei Publishing Inc. September 2014 Written by YAMAMOTO Isamu, Written and edited by October 2011 Edited by WAKASUGI Ryuhei Springer Written by TOMIURA Eiichi KURODA Sachiko SHISHIDO Zenichi Written and edited by KOGA Iwanami Shoten, Publishers Nippon Hyoronsha Co., Ltd. Nikkei Publishing Inc. Nikkei Publishing Inc. Chitoshi Chikura Publishing Co., Ltd.

Internationalization of Global Niche Top Productivity in Service Environment, Energy, True Potential of the Corporate Governance Non-regular Japanese Firms: Enterprises Industries: Empirical and Resource Japanese Economy: in Japan: Toward a Employment System Evidence from March 2014 analyses using Strategies: Exploring When the lying dragon redesign and Reform in Japan: Firm-level Data Written by HOSOYA Yuji microdata new growth areas awakes restoration of Changing the way March 2014 Hakuto-Shobo Publishing February 2014 September 2013 August 2011 competitiveness people work Written and edited by Company Written by MORIKAWA Written and edited by MANAGI Written by TODO Yasuyuki June 2011 June 2011 WAKASUGI Ryuhei Masayuki Shunsuke Chuokoron-Shinsha,Inc. Written and edited by Written and edited by TSURU Nippon Hyoronsha Co., Ltd. Nippon Hyoronsha Co., Ltd. MIYAJIMA Hideaki Kotaro, HIGUCHI Yoshio, Toyo Keizai Inc. MIZUMACHI Yuichiro Nippon Hyoronsha Co., Ltd.

Minimum Wage Reform Economic Resilience Work-Life Balance in High-tech Industry and July 2013 June 2013 Japan as Seen from a Regional Eco-system Written and edited by OHTAKE Written and edited by FUJII Perspective of April 2012 Fumio, KAWAGUCHI Daiji, Satoshi International Comparison Written by NISHIZAWA Akio, TSURU Kotaro Nippon Hyoronsha Co., Ltd. June 2012 KUTSUNA Kenji, HIBARA Nippon Hyoronsha Co., Ltd. Written and edited by Nobuhiko, SABURI Masataka, WAKABAYASHI Naoki and TAKEISHI Emiko KANAI Kazuyori Minerva Shobo Yuhikaku Publishing Co., Ltd.

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 55 Introduction of History of Japan's Trade and Industry Policy Series in 12 Volumes

History of Japan's Trade and History of Japan's Trade and History of Japan's Trade and History of Japan's Trade and Industry Policy (1): General Industry Policy (2): Industry Policy (3): Industrial Industry Policy (4): Commerce Overview International Trade Policy Policy and Distribution Policy January 2013 January 2013 April 2012 March 2011 Written by ODAKA Konosuke Written and edited by ABE Takeshi Written and edited by OKAZAKI Tetsuji Written and edited by ISHIHARA Keizai Sangyo Chosakai Keizai Sangyo Chosakai Keizai Sangyo Chosakai Takemasa Keizai Sangyo Chosakai

History of Japan's Trade and History of Japan's Trade and History of Japan's Trade and History of Japan's Trade and Industry Policy (5): Location, Industry Policy (6): Basic Industry Policy (7): Machinery Industry Policy (8): Consumer Environment and Safety Policy Industry Policy and Information Industries Goods Industries June 2011 July 2011 March 2013 June 2012 Written by TAKEDA Haruhito Written and edited by YAMAZAKI Shiro Written and edited by HASEGAWA Shin Written by MATSUSHIMA Shigeru Keizai Sangyo Chosakai Keizai Sangyo Chosakai Keizai Sangyo Chosakai Keizai Sangyo Chosakai

History of Japan's Trade and History of Japan's Trade and History of Japan's Trade and History of Japan's Trade and Industry Policy (9): Industrial Industry Policy (10): Natural Industry Policy (11): Industry Policy (12): Small- and Technology Policy Resources and Energy Policy Intellectual Property Policy Medium-sized Enterprises March 2011 July 2011 October 2011 March 2013 Written by SAWAI Minoru Written by KIKKAWA Takeo Written and edited by NAKAYAMA Written and edited by NAKATA Tetsuo Keizai Sangyo Chosakai Keizai Sangyo Chosakai Nobuhiro Keizai Sangyo Chosakai Keizai Sangyo Chosakai

56 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Public Relations Activities Website（http://www.rieti.go.jp/en/)

Operated in three languages―Japanese, English and Chinese―the RIETI website is a key element in our public relations activities. The number of page views for each language has been growing steadily (see table below). The website makes available to the public a wide range of materials offering in-depth analyses on individual policy issues such as Discussion Papers written by fellows and handout materials of policy symposiums.

Special efforts have been made to enrich the content of the RIETI website by providing access to the work of individual Research Fellows and study groups. These are quite unique and exclusive to RIETI.

Some examples are:

As part of the “East Asian Industrial Productivity” project’ s results, the Japan Industrial Productivity Database 2014 (JIP 2014) is published to serve as a basic resource for the analysis of Japan’ s economic growth and changes in its industrial structure. http://www.rieti.go.jp/en/database/JIP2014/index.html

The “International Macroeconomics” program started publishing the novel dataset of the industry-specific nominal effective exchange rate (I-NEER) and the industry-specific real effective exchange rate (I-REER) in May 2011. From March 2015, the program began releasing the daily and monthly series of I-NEER and I-REER for nine Asian economies. http://www.rieti.go.jp/users/eeri/en/index.html Japan Industrial Productivity Database 2014 (JIP Database 2014) On Japanese Study of Aging and Retirement (JSTAR), information about a panel survey of middle-aged and elderly citizens aged 50 or higher conducted jointly by RIETI, Hitotsubashi University, and the University of Tokyo is posted. Not only does the data include diverse information on the economic, social, and health aspects of the middle-aged and the elderly, it is also designed to maintain maximum comparability with other surveys conducted in developed countries such as the Health and Retirement Study (HRS) in the United States, the Survey of Health, Aging and Retirement (SHARE) in Europe, and the English Longitudinal Study of Aging (ELSA) in the United Kingdom. Therefore, it is possible by analyzing the data to identify the unique and universal aspects of middle-aged and elderly citizens in Japan as compared to the world. http://www.rieti.go.jp/en/projects/jstar/index.html Industry-Specific Real Effective Exchange Rate

In the non-technical summary that briefly summarizes the policy implications based on an analysis of Website traffic discussion papers, we actively make policy proposals (in Japanese). Approx. 13 years Fiscal 2014 http://www.rieti.go.jp/jp/topics.html (January 2002 ( April 2014 ‒March 2015) ‒March 2015) RIETI is partnering with CEPR, a leading European research network, to make its research findings more

Japanese 9,210,603 1,220,635 accessible to an international audience, and articles by RIETI fellows now appear on CEPR’ s policy portal, VoxEU.org. Vice versa, VoxEU.org articles are published on RIETI’ s site to raise awareness of key developments English 2,719,003 398,459 in policy discourse overseas. Chinese 766,746 82,753 The RIETI Columns section, which features articles written by researchers on policy matters and proposals, invites comments and feedback from readers for online discussion. The Perspectives from Around the World section introduces the views of some of the world’ s leading researchers regarding various issues including economic policy, security, and environmental problems. http://www.rieti.go.jp/en/papers/index.html

Other popular contents include “China in Transition” by Consulting Fellow KWAN Chi Hung, who shines the spotlight on five areas̶economic reform in China, Chinese economics, Chinese industries and enterprises, China in the world, and Sino-Japanese relations̶and “Research Notes on Spatial Economies” by Fellow KONDO Keisuke, who explains issues in spatial economies in plain and simple language and introduces recent academic knowledge and policy implications. Another example is “Frontiers of Analysis on Corporate Governance: Toward the recovery of Japanese companies’ competitiveness,” which summarizes case studies of corporate governance analysis research. A number of past popular serial articles by our researchers, including “China in Transition,” have been published in book form.

In enhancing the English and Chinese websites, custom-made content is created and added for issues of special interest for overseas readers, and electronic newsletters such as RIETI Report (in English) and Dianzixinxi (in Chinese) are published to circulate Japanese policy information to RIETI’ s broad international audience.

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 57 Public Relations Activities Publicity Materials

To promote wide dissemination of research results and subsequent contributions that invigorate policy debate, a variety of publicity materials are available in print and downloadable from our website.

Materials for dissemination of research results Materials about RIETI

RIETI Highlight Brochure

RIETI Highlight is a quarterly public relations magazine that keeps Brochures introduce general information on RIETI such as RIETI’ s readers up to date on the activities of RIETI. Each issue includes brief mission, research themes and process, an access map, and reports on symposiums, workshops and seminars, reviews of new organization charts.

publications, and columns written by our fellows. A column titled Languages: Japanese, English, Chinese "Research Digest," which introduces recently published discussion papers through interviews with their authors, explores the motivation underlying their research in an easy-to-understand manner that has been well-received by readers.

Volume: 50 pages Languages: Quarterly issue in Japanese / Special issue in English

Annual Report

The Annual Report is a concise summary of RIETI’ s entire activities in each fiscal year. It reports on topics such as research projects, fellows’ activities, and PR activities.

Volume: 80 pages Languages: Japanese, English, Chinese

Quarterly issue

Special issue (English)

58 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Public Note: Titles and affiliations of participants are current as of the day of the Relations events. Lists of Speakers/Panelists/Moderators are in order of appearance. Activities Symposiums

METI-RIETI Symposium FY2014 The Third Hitotsubashi University Policy Forum

Impact of Inward FDI and its Promotion for Japan's Trends in Trade and Current Account, and the Future of Economic Growth the Japanese Economy http://www.rieti.go.jp/en/events/15031001/info.html http://www.rieti.go.jp/en/events/15030501/info.html

Date March 10, 2015 Date March 5, 2015

Venue Iino Hall and Conference Center Venue Hitotsubashi Hall

Hosts METI; RIETI Host Hitotsubashi Univershity

Participants 114 Co-host RIETI

Program Participants 105

Opening Remarks Program

Introduction Opening Remarks

Presentations Presentations

Panel Discussion Panel Discussion “Impact of Inward FDI and Challenges and Measures for its Promotion” Q&A Speakers/Panelists/Moderator Closing Remarks MUNAKATA Naoko (Director-General, Trade and Economic Cooperation Bureau, METI) Speakers/Panelists/Moderator

FUJITA Masahisa (President and CRO, RIETI / Professor, Konan OGAWA Eiji (FF, RIETI / Professor, Graduate School of Commerce and University / Adjunct Professor, Institute of Economic Research, Kyoto Management, Hitotsubashi University) University) IWAISAKO Tokuo (FF, RIETI / Professor, Institute of Economic Research, KIYOTA Kozo (FF, RIETI / Professor, Keio Economic Observatory, Keio Hitotsubashi University) University) KOMINE Takao (Professor, Hosei Graduate School of Regional Policy TANAKA Kiyoyasu (Research Fellow, Institute of Developing Design) Economies, Japan External Trade Organization (IDE-JETRO)) SATO Kiyotaka (Professor, Faculty of International Social Sciences, MAEDA Shigeki (Director-General, Invest Japan Department, JETRO) Yokohama National University) SHIMIZU Junko (Professor, Faculty of Economics, Gakushuin University) IIDA Hirobumi (Director, Trade and Investment Facilitation Division, Trade and Economic Cooperation Bureau, METI) SHIMIZU Mikiharu (Director, Policy Planning and Research Office, Trade Policy Bureau, METI) FUKAO Kyoji (PD and FF, RIETI / Director, Institute of Economic Research, Hitotsubashi University)

OGASAWARA Takahiro (Executive Officer, AXA Life Insurance Co., Ltd.)

Danny RISBERG (CEO, Philips Electronics Japan)

NAKAJIMA Atsushi (Chairman, RIETI)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 59 RIETI Policy Symposium RIETI-JSTAR Symposium

Introduction of Selection and Competition to Japan's Future as a Super Aging Society: International Childcare Centers and Kindergartens: Reconstruction comparison of JSTAR datasets of quasi-markets and the third sector http://www.rieti.go.jp/en/events/14121201/info.html

http://www.rieti.go.jp/en/events/15021901/info.html Date December 12, 2014

Date February 19, 2015 Venue Toranomon Hills Forum Hall B

Venue Iino Hall and Conference Center Host RIETI

Host RIETI Participants 145

Support Japan Association of Chief Executives of Voluntary Program Organizations (JACEVO); Japan Association of Opening Remarks Charitable Organizations (JACO) Special Greeting Participants 89 Keynote Speech Program “Recent Research Development of JSTAR and its Implication for Social Opening Remarks Security Policy”

Keynote Speech Presentation: International Comparison of Social Security Issues SHARE Panel Discussion “Research findings from international comparisons with ” “The Lifetime Risk of Nursing Home Use and Out-of-pocket Spending” Speakers/Panelists/Moderator “Research Findings Using HRS-typed Datasets: The case of Asia” NAKAJIMA Atsushi (Chairman, RIETI) “Policy Effectiveness: The case of the United States” “Policy Effectiveness and Usage: The case of the United Kingdom” USHIRO Fusao (FF, RIETI / Professor, Graduate School of Law, Nagoya University) Panel Discussion: Evidence from Social Security Policy - Implications for Japan's social security policy ASAKAWA Tomoaki (Director, Day Care Division, Equal Employment, Children and Families Bureau, Ministry of Health, Labour and Welfare) Speakers/Panelists/Moderator

FUJIOKA Kimiko (Member of the Board, JACEVO / Member of the NAKAJIMA Atsushi (Chairman, RIETI) Board, Child Foundation) YOSHITOMI Masaru (Special Adviser, RIETI)

IKEMOTO Mika (Senior Researcher, Japan Research Institute, Ltd.) ICHIMURA Hidehiko (FF, RIETI / Professor of Economics, Graduate YOSHIDA Masayuki (Chief Executive Officer, Research Institute for School of Public Policy, The University of Tokyo) System on Childcare and Early Childhood Education) Axel BÖRSCH-SUPAN (Director, Munich Center for the Economics of Aging (MEA) at the Max-Planck-Institute for Social Law and Social Policy)

Michael HURD (Director, Rand Center for the Study of Aging)

Albert PARK (Professor, The Hong Kong University of Science and Technology)

Robin LUMSDAINE (Professor, American University)

James BANKS (Professor, The University of Manchester)

FUKAO Mitsuhiro (PD, RIETI / Professor, Faculty of Business and Commerce, Keio University / President, Japan Center for Economic Research)

SAWADA Yasuyuki (FF, RIETI / Professor, Graduate School of Economics, The University of Tokyo)

60 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 METI-RIETI Symposium RIETI World KLEMS Symposium

Corporate Governance Reform in Japan: Lessons from Growth Strategy after the World Financial Crisis the United Kingdom http://www.rieti.go.jp/en/events/14052001/info.html http://www.rieti.go.jp/en/events/14101601/info.html Date May 20, 2014

Date October 16, 2014 Venue JP Tower Hall & Conference

Venue RIETI's seminar room Host RIETI

Hosts METI; RIETI Support Japan Productivity Center (JPC)

Participants 90 Participants 191

Program Program

Opening Remarks Opening Remarks

Keynote Speech Keynote Speech 1 “Corporate Governance Reform in Japan: Lessons from the UK and “The World KLEMS Initiative” Elsewhere” Keynote Speech 2 Panel Discussion “Evolving Spatial Economy of Asia-Pacific and Growth Strategy”

Speakers/Panelists/Moderator Panel Discussion

MIYAJIMA Hideaki (FF, RIETI / Professor, Faculty of Commerce, Waseda Speakers/Panelists/Moderator University / Director, Waseda Institute for Advanced Study) NAKAJIMA Atsushi (Chairman, RIETI) Colin MAYER (Peter Moores Professor of Management Studies, Saïd Business School, University of Oxford) Dale W. JORGENSON (Samuel W. Morris University Professor, Harvard University) ITO Akihiro (CFO, Member of the Board of Kirin Holdings Company, Limited) FUJITA Masahisa (President and CRO, RIETI / Professor, Konan University / Adjunct Professor, Institute of Economic Research, Kyoto OBA Akiyoshi (President & CEO, Tokio Marine Asset Management Co., University) Ltd. / A member of the Corporate Governance System Study Group at METI) FUKAO Kyoji (PD and FF, RIETI / Director, Institute of Economic Research, Hitotsubashi University) SHISHIDO Zenichi (Professor, Graduate School of International Corporate Strategy, Hitotsubashi University) KIYOTAKI Nobuhiro (Professor of Economics, Princeton University) Lawrence J. LAU (Ralph and Claire Landau Professor of Economics, The Chinese University of Hong Kong)

Marcel TIMMER (Professor of Economic Growth and Development, University of Groningen)

Bart van ARK (Executive Vice President and Chief Economist, The Conference Board)

MIYAGAWA Tsutomu (FF, RIETI / Professor, Faculty of Economics, Gakushuin University)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 61 METI-RIETI Symposium

A New Paradigm of Manufacturing Evolving from 3D Printing Technology

http://www.rieti.go.jp/en/events/14042101/info.html

Date April 21, 2014

Venue Zennittsu Kasumigaseki Building Conference Room

Hosts METI; RIETI Paticipants 179

Program

Opening Remarks

Keynote Speech

Panel Discussion

Speakers/Panelists/Moderator

MIYAGAWA Tadashi (Director-General, Manufacturing Industries Bureau, METI)

SHINTAKU Junjiro (Professor, Graduate School of Economics, The University of Tokyo)

KOIWAI Toyomi (President, Koiwai Co. Ltd.)

IWASA Takuma (President, CEO, Cerevo Inc.)

MOTOHASHI Kazuyuki (FF, RIETI / Professor, Department of Technology Management for Innovation (TMI) School of Engineering, The University of Tokyo)

NAKAJIMA Atsushi (Chairman, RIETI)

62 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Public Note: Titles and affiliations of participants are current as of the day of the Relations events. Lists of Speakers/Panelists/Moderators are in order of appearance. Activities Workshops and Seminars

The 11th RIETI Highlight Seminar The Fourth Hitotsubashi-RIETI Energy Policy Salon

What is the New Direction of the Japanese Economy World Record-breaking Photovoltaic Research in Japan, and Industry? and the Next Steps toward "Hydrogen Society" http://www.rieti.go.jp/en/events/15013001/info.html http://www.rieti.go.jp/en/events/15010701/info.html

Date January 30, 2015 Date January 7, 2015

Venue RIETI's seminar room Venue Hibiya Convention Hall

Host RIETI Hosts Hitotsubashi University; RIETI Participants 78 Support SEI Group CSR Foundation Grant to Hitotsubashi Panelists/Moderator University's course on environmental laws and policies

OHASHI Hiroshi (PD and FF, RIETI / Professor, Faculty of Economics, The Participants 167 University of Tokyo) Speaker/Moderator KOBAYASHI Keiichiro (FF, RIETI / Professor, Faculty of Economics, Keio University) NAKANO Yoshiaki (Professor of Electronic Engineering Department and Research Center for Advanced Science and Technology, The University of NAKAJIMA Atsushi (Chairman, RIETI) Tokyo)

ANDOH Haruhiko (CF, RIETI / Visiting Professor, School of International and Public Policy, Hitotsubashi University / Visiting Professor, University of CEPR-RIETI Workshop Electro-Communications) Labour Market Policy for Economic Growth http://www.rieti.go.jp/en/events/15011601/info.html

Date January 16, 2015 Workshop Venue National Institute of Economic and Social Research (NIESR) One-day Trade Workshop

Hosts Centre for Economic Policy Research (CEPR); RIETI; http://www.rieti.go.jp/en/events/14122301/info.html NIESR Date December 23, 2014 Program Venue Room #3302, 3rd floor Mercury Tower, Hitotsubashi Opening Remarks University Session 1 Hosts RIETI; JSPS Grants-in-Aid for Scientific Research (S); “The Impact of a Demand Shock on the Employment of Temporary Center for Research on Contemporary Economic Agency Workers: Evidence from Japan during the Global Financial Systems; Hitotsubashi Institute for Advanced Studies Crisis” Program Session 2 “Three Obstacles for Women's Advancement in Japan” Session 3 “Consumer Confidence and Psychological Variables” Presentations “Parallel Imports and Repair Services” Session 4 Panel Discussion “Aid for Trade and Global Growth” Concluding Remarks “Relationship Specificity, Market Thickness and International Trade” “Trade Liberalisation, Transboundary Pollution and Market Size” Speakers/Moderators NAKAJIMA Atsushi（Chairman, RIETI） Speakers / Organizer Richard E.BALDWIN（Director, CEPR / Professor, Graduate Institute, MUKUNOKI Hiroshi (Gakushuin University) Geneva） NAITO Takumi (Waseda University)

TSURU Kotaro（FF, RIETI / Professor, Keio University） ARA Tomohiro (Fukushima University) Marco FRANCESCONI（Research Fellow, CEPR / Professor, University of OKUBO Toshihiro (Keio University) Essex） ISHIKAWA Jota (FF, RIETI / Hitotsubashi University) OWAN Hideo（FF, RIETI / Professor, the University of Tokyo） Ghazala AZMAT（Research Affiliate, CEPR / Associate Professor, Queen Mary University） SEKIZAWA Yoichi（SF, RIETI） Francesco FASANI（Lecturer, Queen Mary University） Jonathan PORTES（Director, NIESR）

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 63 Workshop RIETI-IWEP-CESSA Joint Workshop

Hitotsubashi-RIETI International Workshop on Real Industry-specific REER and Pass-Through Effect in Estate Market and the Macro Economy Economic Integration between China and Japan http://www.rieti.go.jp/en/events/14121302/info.html http://www.rieti.go.jp/en/events/14121501/info.html Dates December 13-14, 2014 Date December 15, 2014 Venue Chinese Academy of Social Sciences (CASS) Venue RIETI's seminar room Hosts RIETI; Institute of World Economics and Politics (CASS/ IWEP); Center for Economic and Social Studies in Asia, Hitotsubashi University; RIETI Hosts Yokohama National University (CESSA) Program Program Opening Remarks Opening Remarks

Session 1 Paper 1: OGAWA Eiji and WANG Zhiqian: Effects of Exit Strategy of the Keynote Speech: “Real Estate Price Indices & Price Dynamics: An Quantitative Easy Monetary Policy on East Asian Currencies Overview from an investments perspective” Paper 2: YANG Lu: China's Shift from the Demographic Dividend to Presentation: “Sticky Rent and Housing Prices” the Reform Dividend Session 2 Paper 3: YANG Panpan, LI Xiaoqin, XU Qiyuan: Value-Added Exchange Presentation: “Collateral Value and Financial Constraint: Analysis using Rates for China: Facts and Implications corporate data after the Tohoku Earthquake” Paper 4: ZHANG Shajuan: Industry-specific Exchange Rate Fluctuations, Session 3 Japanese Exports and Financial Constraints: Evidence from Panel VAR Presentation: “Residential Property and Household Stock Holdings: Analysis Evidence from Japanese micro data” Paper 5: SATO Kiyotaka and Thi-Ngoc Anh NGUYEN: Asymmetric Presentation: “Bank Lending Channel of Real Estate Prices” Exchange Rate Pass-Through in Japanese Exports: Application of the Threshold Vector Autoregressive Model Closing Remarks Paper 6: DAI Mi, WANG Yaqi and XU Jianwei: Exchange Rate and Speakers/Moderators Export Prices: Quality Matters FUJITA Masahisa（RIETI） Paper 7: HAYAKAWA Kazunobu, Han-Sung KIM and YOSHIMI Taiyo: FTA in International Finance: Impacts of Exchange Rates on FTA UESUGI Iichiro（RIETI / Hitotsubashi University） Utilization MIYAKAWA Daisuke（Nihon University） Paper 8: SHIMIZU Junko and SATO Kiyotaka: Abenomics, Yen Depreciation, Trade Deficit and Export Competitiveness David GELTNER（Massachusetts Institute of Technology） Paper 9: XIAO Lisheng: RMB Internationalization: A Playfield for SHIMIZU Chihiro（Reitaku University / University of British Columbia） Speculators or a Platform for Real Economy Yongheng DENG（National University of Singapore） Closing

IWAISAKO Tokuo（Hitotsubashi University） Speakers/Moderators WANG Zhiqian (Hitotsubashi University) UCHIDA Hirofumi（Kobe University） SUN Jie (CASS/IWEP) ONO Arito（Mizuho Research Institute） DING Jianping (Shanghai University of Finance and Economics) WATANABE Wako（Keio University） YANG Lu (CASS) ODA Keiichiro（RIETI） ZHANG Shajuan (CESSA, Yokohama National University) HIRAKATA Naohisa（Bank of Japan） SATO Kiyotaka (CESSA, Yokohama National University)

Peng XU（Hosei University） YANG Panpan (CASS) LI Xiaoqin (China Center for Economics and Business) SHIMIZU Junko (Gakushuin University) Thi-Ngoc Anh NGUYEN (CESSA, Yokohama National University) DAI Mi (Beijing Normal University) XU Jianwei (Beijing Normal University) OGAWA Eiji (RIETI / Hitotsubashi University) YOSHIMI Taiyo (Nanzan University) XIE Jianguo (Nanjing University Business School) CHEN Sichong (Zhongnan University of Economics and Law) ZHANG Jie (Renmin University of China) XIAO Lisheng (CASS)

64 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 RIETI-JER Workshop RIETI Seminar on International Economy

Economics of Aging in Japan and Other Societies Portrait of Factory Asia: Production Network in Asia http://www.rieti.go.jp/en/events/14121301/info.html and its implication for growth - the smile curve Date December 13, 2014 http://www.rieti.go.jp/en/events/14121101/info.html Venue Hall A-3+4, Toranomon Hills Forum Date December 11, 2014 Hosts RIETI ; Japanese Economic Review (JER) Venue RIETI's seminar room Program Program Opening Remarks Opening Remarks Introduction by Editors Presentations Presentations “Portrait of Factory Asia: Production Network in Asia and its “Health Expectancy of the Chinese Elderly: Current trends and future implication for growth - the smile curve” projection” “Reciprocal versus Unilateral Trade Liberalization: Comparing “How Informal Caregivers' Health Affects Recipients” individual characteristics of supporters” “Does Retirement Change Life Style Habits?” “Work Capacity of Older Adults in Japan” Closing Remarks “The Well-Being of Elderly Survivors after Natural Disasters: Measuring Speakers/Moderator the impact of the Great East Japan Earthquake” WAKASUGI Ryuhei (SRA, PD and FF, RIETI / Professor, Gakushuin “Does Taking Care of Grandchildren Affect Grandparents' Cognition?” University / Professor Emeritus, Kyoto University) “What Can We Learn from JSTAR about the Relationship between Socioeconomic Status and Depression?” Richard E. BALDWIN (Professor, International Economics, Graduate “Who are Protected in the Public Assistance Act? Evidence from Institute of International and Development Studies, Geneva / Director, JSTAR” Centre for Economic Policy Research (CEPR) ) “Does Retirement Make you Happy? A simultaneous equations TOMIURA Eiichi (FF, RIETI / Professor, Yokohama National University) approach” “Japanese Long-term Care Insurance: Equal services for equal needs?” “Health Consequences of Transitioning to Retirement and Social Participation: Evidence from JSTAR panel data” Discussions and Wrap up by Editors The 10th RIETI Highlight Seminar Speakers/Moderators Japan-China Economic Relations: Challenges and NAKAJIMA Atsushi（Chairman, RIETI） future directions ICHIMURA Hidehiko（FF, RIETI / Professor of Economics, Graduate School of Public Policy, The University of Tokyo） http://www.rieti.go.jp/en/events/14111001/info.html SAWADA Yasuyuki（FF, RIETI / Professor, Graduate School of Date November 10, 2014 Economics, The University of Tokyo） Venue RIETI's seminar room SHIMIZUTANI Satoshi（CF, RIETI / Research Fellow, Gender Equality Host RIETI Bureau, Cabinet Office, Government of Japan） Participants 98 ZHENG Jie（Junior Fellow, Network for Studies on Pensions, Aging, and Retirement（Netspar）） Panelists/Moderator YUDA Michio（Associate Professor, School of Economics, Chukyo KAWAI Masahiro (SRA, RIETI /Project Professor, Graduate School of University） Public Policy, the University of Tokyo / Councilor, Bank of Japan) TERADA Kazuyuki（Graduate School of Economics, The University of WAKASUGI Ryuhei (SRA, PD and FF, RIETI / Professor, Gakushuin Tokyo） University / Professor Emeritus, Kyoto University) USUI Emiko（Associate Professor, Institute of Economic Research, NAKAJIMA Atsushi (Chairman, RIETI) Hitotsubashi University） SUGANO Saki（Postdoctoral Associate, Department of Economics, University of Southern California（visiting） / Graduate School of RIETI Innovation Seminar Economics, The University of Tokyo） MAO Shangyi（Postdoctoral Research Fellow, National School of Conflict Resolution, Public Goods and Patent Thickets Development, Peking University） http://www.rieti.go.jp/en/events/14110501/info.html SEKIZAWA Yoichi（SF, RIETI） Date November 5, 2014 NAKATA Daigo（SF, RIETI） Venue RIETI's seminar room LEE Jinkook（Professor, University of Southern California / RAND Corporation） Speaker/Moderator ISHII Karine（Ph.D candidate in economics, PSL, Université Paris- Stefan WAGNER (Associate Professor, ESMT European School of Dauphine） Management and Technology) HASHIMOTO Hideki（RAs, RIETI / Professor, School of Public Health, NAGAOKA Sadao ( PD and FF, RIETI / Director and Professor, Institute of The University of Tokyo） Innovation Research, Hitotsubashi University)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 65 KIET-TIER-RIETI Workshop Workshop

Future of Manufacturing Industry The 2nd Asia KLEMS Database Management Workshop

http://www.rieti.go.jp/en/events/14102301/info.html http://www.rieti.go.jp/en/events/14101701/info.html

Date October 23, 2014 Date October 17, 2014 Venue Hyatt Regency Jeju Venue RIETI's seminar room Program Hosts RIETI; Gakushuin University (Empirical Research on Intangible Investment in Japan (ERII) [JSPS Grants-in- Opening Remarks Aid for Scientific Research (S), No. 22223004]); Korea Session 1 RIETI Productivity Center; Institute of Economic Research, Hitotsubashi University 1st Presentation: “Technical Standard and its Formation in Japan” 2nd Presentation: “Overseas Expansion and Technology Protection: Program Issues facing local subsidiaries in ASEAN” Welcoming Remarks

Session 2 TIER Session 1：On the current issues of KLEMS Database 3rd Presentation: “Global Value Chain and the FTA: The trade creation 1st Presentation: “On the Next Revisions of the JIP Database” and diversion effects in China among the East Asia 2nd Presentation: “The Revision of KIP Database and the Industrial countries” Sources of Growth in Korea” 4th Presentation: “Inspiration from Regional Economic Integration 3rd Presentation: “US Growth and Productivity using New National （TPP/RCEP）: Transformation and development for Accounts with Intellectual Property” Taiwan manufacturing industries” Session 2 ：Progress Report on China KLEMS and Republic of China Session 3 KIET KLEMS 5th Presentation: “Re-industrialization of the Korean Economy: Facts, 1st Presentation: “Introduction to CIP/China KLEMS Database” causes, and implications” 2nd Presentation: “China KLEMS Database” 6th Presentation: “The Revolution in Mobility and its Impact on the 3rd Presentation: “On Republic of China KLEMS” Manufacturing Industry” Session 3：Progress Report on India and South East Asia KLEMS Closing Remarks 1st Presentation: “India KLEMS Project” Speakers/Moderators 2nd Presentation: “On Malaysia KLEMS: Productivity Performance” 3rd Presentation: “KLEMS Data Status and Availability in Thailand” DoHoon KIM（President, KIET） Closing Remarks David S. HONG（President, TIER） NAKAJIMA Atsushi（Chairman, RIETI） Speakers/Moderators MORIKAWA Masayuki (Vice Chairman and Vice President, RIETI) TAMURA Suguru（SF, RIETI） Chi-yuan LIANG (Institute of Economics, Academia Sinica) Du-Yong KANG（Senior Fellow, KIET） FUKAO Kyoji (FF, RIETI / Hitotsubashi University) YAMAUCHI Isamu（F, RIETI） INUI Tomohiko (FF, RIETI / Gakushuin University) Ke-Shaw LIAN（Associate Fellow, TIER） MIYAGAWA Tsutomu (FF, RIETI / Gakushuin University) Ping-Han FAN（Associate Fellow, TIER） Hyumbae CHUN (Sogang University) Dongsoo KIM（Fellow, KIET） Hak Kil PYO (Seoul National University) UENO Toru（SF, RIETI） Keun Hee RHEE (Korea Productivity Center) Hang Koo LEE（Senior Fellow, KIET） Mun HO (Harvard University)

Harry WU (Hitotsubashi University)

Linlin SUN (Beihang University)

Yih-ming LIN (National Chiayi University)

Deb Kusum DAS (University of Delhi)

Mazlina SHAFI’I (Malaysia Productivity Corporation)

Wan Fazlin Nadia Wan OSMAN (Malaysia Productivity Corporation)

Surapol SRIHUANG (National Economic and Social Development Board)

66 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 RIETI Special Seminar RIETI-KEO Workshop

"Creating Capabilities" by Nobel Prize-winning Productivity of Japanese Firms: Current status and economist Professor James J. Heckman challenges http://www.rieti.go.jp/en/events/14100801/info.html http://www.rieti.go.jp/en/events/14100301/info.html

Date October 8, 2014 Date October 3, 2014

Venue Shin-Kasumigaseki Bldg Lobby Floor Venue RIETI's seminar room

Host RIETI Hosts RIETI; Keio Economic Observatory (KEO)

Participants 347 Program

Program Introductory session Opening remarks Opening Remarks Introduction of participants Presentation “Creating Capabilities” First session Presentation 1 “Does Export Enhance Price, Product Quality and Comments Markup?: Evidence from Japanese plant-product- level data” Q&A Session Presentation 2 “Export-Platform Foreign Direct Investment: The Speakers/Panelists/Moderators Impact of Japan-Mexico economic partnership agreement” NAKAJIMA Atsushi (Chairman, RIETI) Second session James J. HECKMAN (Henry Schultz Distinguished Service Professor of Presentation 3 “The Impact of Foreign Firms on Industrial Productivity: Economics, The University of Chicago) A Bayesian model averaging approach” TACHIBANAKI Toshiaki (Adviser, RIETI / Professor Emeritus, Kyoto Presentation 4 “Misallocation and Establishment Dynamics” University / Visiting Professor, Kyoto Women's University) Third Session YAMAGUCHI Kazuo (VF, RIETI / Ralph Lewis Professor of Sociology, The Presentation 5 “Access to Export Markets and Firm Performance: Do University of Chicago) transaction partners matter?” Presentation 6 “Export Duration: How to foster always exporters?” ICHIMURA Hidehiko (FF, RIETI / Professor of Economics, Graduate Closing comments School of Public Policy, The University of Tokyo) Speakers/Moderators AKABAYASHI Hideo (Professor of Economics, Keio University) KIYOTA Kozo (FF, RIETI / Keio University)

NAKAJIMA Takanobu (Director, KEO)

YAMASHITA Naoki (RMIT University)

MATSUURA Toshiyuki (Keio University)

KONDO Keisuke (F, RIETI)

OYAMA Atsushi (Hokkaido University)

TANAKA Kiyoyasu (Institute of Developing Economies, JETRO)

HOSONO Kaoru (Gakushuin University)

TAKIZAWA Miho (Toyo University)

HONDA Keiichiro (Prefectural University of Kumamoto)

MIYAKAWA Daisuke (Nihon University)

INUI Tomohiko (FF, RIETI / Gakushuin University)

ITO Keiko (Senshu University)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 67 RIETI Seminar The Third Hitotsubashi-RIETI Energy Policy Salon

Trends in Disability in a Super-Aging Society: Unveiling the Next Generation Fuel Cell Vehicle: Adapting the Future Elderly Model to Japan The ultimate eco-car's status quo and perspective

http://www.rieti.go.jp/en/events/14090502/info.html http://www.rieti.go.jp/en/events/14072201/info.html

Date September 5, 2014 Date July 22, 2014

Venue RIETI's seminar room (Daidoseimei Kasumigaseki Venue Hibiya Convention Hall Building 6th floor) Hosts Hitotsubashi University; RIETI Speaker/Moderator Support SEI Group CSR Foundation Grant to Hitotsubashi Jay BHATTACHARYA (Professor, Center for Health Policy/ Center for University's course on environmental laws and policies Primary Care and Outcomes Research, Stanford University) Participants 179 HASHIMOTO Hideki (Professor, University of Tokyo) Speaker/Moderator

KOJIMA Koichi (General Manager, Fuel Cell System Development Div., R&D Group, Toyota Motor Corporation) The 9th RIETI Highlight Seminar ANDOH Haruhiko (CF, RIETI / Visiting Professor, University of Electro- New Growth Strategy: Rural economy vitalization and Communications) aggressive agriculture

http://www.rieti.go.jp/en/events/14090501/info.html The 8th RIETI Highlight Seminar Date September 5, 2014 Prices and Economic Performance in Japan after the Venue RIETI's seminar room Consumption Tax Hike Host RIETI

Participants 109 http://www.rieti.go.jp/en/events/14070201/info.html July 2, 2014 Panelists/Moderator Date

HAMAGUCHI Nobuaki (PD and FF, RIETI / Professor, Research Institute Venue RIETI's seminar room for Economics and Business Administration (RIEB), Kobe University) Host RIETI

YAMASHITA Kazuhito (SF, RIETI / Research Director, Canon Institute for Participants 87 Global Studies) Panelists/Moderator NAKAJIMA Atsushi (Chairman, RIETI) FUKAO Mitsuhiro (PD and FF, RIETI / Professor, Faculty of Business and Commerce, Keio University / President, Japan Center for Economic Research) RIETI Seminar on the U.S. Production Network WATANABE Tsutomu (Professor, Graduate School of Economics, Vertical Integration and Input Flows Faculty of Economics, The University of Tokyo) NAKAJIMA Atsushi (Chairman, RIETI) http://www.rieti.go.jp/en/events/14081801/info.html

Date August 18, 2014

Venue RIETI's seminar room

Speaker/Moderator

Ali HORTAÇSU (Professor, University of Chicago)

FUJII Daisuke (VS, RIETI)

68 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Cecilia JONA-LASINIO（Italian Statistical Institute） MIYAGAWA Tsutomu（RIETI / Gakushuin University） Third World KLEMS Conference Brian MOYER（U.S. Bureau of Economic Analysis（BEA）） http://www.rieti.go.jp/jp/events/14051901/info.html Mun HO（Harvard University） Dates May 19-20, 2014 NOMURA Koji（RIETI / Keio University） Venue JP Tower Hall & Conference Erich STRASSNER（BEA） Host RIETI Lawrence J. LAU（The Chinese University of Hong Kong） Co-hosts Hitotsubashi University; Gakushuin University's Empirical David KUPFER（Federal University of Rio de Janeiro） Research on Intangible Investment in Japan (ERII) Zaffrullah HUSSEIN（Malaysia Productivity Corporation） Program Ilya VOSKOBOYNIKOV（National Research University Higher School of Growth and Stagnation Economics / GGDC） Session One: Europe Francisco GUILLEN（National Institute of Statistics and Geography （INEGI）） Session Two: Asia KIYOTAKI Nobuhiro（Princeton University） Session Three: Measurement Issues Gaaitzen de VRIES（University of Groningen） Session Four: Human Capital Zhi WANG（United States International Trade Commission） Session Five: Intangibles NAKAZAWA Eiichi（Meikai University） Session Six: United States and Japan MORIKAWA Masayuki（RIETI） Session Seven: Country Studies Khuong VU（National University of Singapore） Session Eight: Global Value Chains Robert INKLAAR（University of Groningen） Plenary Session: The World Economy Marcel TIMMER（University of Groningen） Speakers/Moderators FUJITA Masahisa（RIETI / Konan University / Kyoto University） Bart van ARK（The Conference Board） FUKAO Kyoji（RIETI / Hitotsubashi University） The Second Hitotsubashi-RIETI Energy Policy Salon

Matilde MAS（University of Valencia & Ivie） Genesis of the World-leading "ENE-FARM" Residential Colin WEBB（OECD） Fuel Cell System: Its modular strategy and the "esprit" Axel WERWATZ（Technical University Berlin） of Japan's samurai engineers honored with the receipt of the Prime Minister's Award Carlo MILANA（Birkbeck College, University of London）

HAYASHI Fumio（Hitotsubashi University） http://www.rieti.go.jp/en/events/14051501/info.html

TOKUI Joji（RIETI / Shinshu University） Date May 15, 2014 Deb Kusum DAS（Ramjas College, University of Delhi） Venue Hibiya Convention Hall Yih-Ming LIN（National Chiayi University） Hosts Hitotsubashi University; RIETI Harry X. WU（Hitotsubashi University） Support SEI Group CSR Foundation Grant to Hitotsubashi Chi-Yuan LIANG（Chung-Hua Institution for Economic Research） University's course on environmental laws and policies Bishwanath GOLDAR（Institute of Economic Growth） Participants 127 Taehyoung CHO（Bank of Korea） Speaker/Moderator Hak K. PYO（Seoul National University） NAGATA Yuji (Director, Chief Technology Executive, Toshiba Fuel Cell Barbara FRAUMENI（University of Southern Maine） Power Systems Corp.)

Haizheng LI（Georgia Institute of Technology） ANDOH Haruhiko (CF, RIETI / Professor, Graduate School of Law / Haripriya GUNDIMEDA（Indian Institute of Technology Bombay） Director, Resources & Energy Policy Project, Hitotsubashi University / Visiting Professor, University of Electro-Communications) Gang LIU（Statistics Norway） KURODA Masahiro（Japan Science and Technology Agency / Keio University）

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 69 ADBI & RIETI Special Seminar RIETI International Seminar

Asia and Japan: Trading into the future Matching and Sorting in the Global Economy

http://www.rieti.go.jp/en/events/14041801/info.html http://www.rieti.go.jp/en/events/14040401/info.html

Date April 18, 2014 Date April 4, 2014

Venue Asian Development Bank Institute (ADBI), Tokyo Venue RIETI's seminar room

Hosts ADBI; RIETI Host RIETI

Participants 100 Program

Program Introduction Opening remarks / Introduction of the speaker Opening Remarks Distinguished Lecture Presentations by panelists “Matching and Sorting in the Global Economy” “TPP and CJK” “RCEP and Development” Q&A and Discussion “Global Value Chains and the International Trade System” Speakers/Moderator “Japan's Trade Policy in the 21st Century” “EU's Trade Policy” WAKASUGI Ryuhei（SRA, PD and FF, RIETI / Professor, Gakushuin “A Stakeholder's View: The importance of free trade agreements and University / Adjunct Professor, Yokohama National University / of the WTO for the Japanese industry” Professor Emeritus, Kyoto University）

Panel Discussion and Q&A FUJITA Masahisa（President, CRO, RIETI / Professor, Konan University）

Closing Remarks Elhanan HELPMAN（Galen L. Stone Professor of International Trade, Harvard University） Panelists/Moderator

YOSHINO Naoyuki (Dean of ADBI)

URATA Shujiro (FF, RIETI / Professor of Economics, Graduate School of Asia-Pacific Studies, Waseda University)

Ganeshan WIGNARAJA (Research Director, ADBI, Tokyo)

NAKATOMI Michitaka (CF, RIETI / Special advisor to JETRO)

KANEKO Tomohiro (Principal Director, Multilateral Trade System Department, METI)

Timo HAMMAREN (European Commission, Tokyo Delegation, Head of the Trade Section)

KINBARA Kazuyuki (Director, International Economic Affairs Bureau, Japan Business Federation (Nippon Keidanren))

70 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Public *BBL seminars listed below were held from April 2014 to March 2015. Relations *Titles and affiliations of speakers / commentators are current as of the day Activities BBL Seminars of the 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. During fiscal 2014, 64 BBL seminars were held, bringing the total number to 944 as of March 31, 2015. （http://www.rieti.go.jp/en/events/bbl/index.html）

Speaker: Harald HOHMANN (Attorney (Partner), Hohmann Export of Defense Items, the German Experience March 30, 2015 Rechtsanwaelte) (compared with Japan): Controversial issues Commentator: WATAI Rikako (Professor, Keio University Law School) On the Promotion of Women's Economic Activities: What are Speaker: YAMAGUCHI Kazuo (VF, RIETI / Ralph Lewis Professor of March 27, 2015 the major social obstacles to the elimination of gender wage Sociology, The University of Chicago) gap? Speaker: KIMURA Toshiaki (Professor, Department of Business, Economics What Sets Apart Invigorated Regions? ― Prescription for March 26, 2015 and Regional Development, Faculty of Bio-Industry, Tokyo reviving local communities― University of Agriculture) Speaker: NAKAO Takehiko (President and Chairperson, Board of Directors, March 25, 2015 Asian Economic Outlook and Roles of ADB Asian Development Bank (ADB)) New Challenges for Security Service Industry in Response to the Speaker: AOYAMA Yukiyasu (President, SOHGO SECURITY SERVICES CO., March 20, 2015 Changes in Japan and Abroad LTD.) Speaker: MENG Jianjun (VF, RIETI / Senior Fellow, Center for Industry Development and Environment Governance (CIDEG), Tsinghua March 19, 2015 Chinese Economy under the New Normal University) Commentator: KWAN Chi Hung (CF, RIETI / Senior Fellow, Nomura Institute of Capital Markets Research) [Venture Series] Speaker: EBATA Tomohiro (Director, Global Business Development March 12, 2015 Is Genuine Collaboration between Big Companies and Startups Department, Advanced Business Development Division, KDDI Possible? — Challenges of KDDI Mugen Labo — CORPORATION) Speaker: IKEUCHI Satoshi (Associate Professor, Research Center for February 27, 2015 The Rise of Global Jihad: Ideology and movement Advanced Science and Technology, the University of Tokyo) Prospects for the Japanese and the Global Economy — Speaker: YUMOTO Kenji (Vice Chairman of the Institute, The Japan February 20, 2015 Reviewing challenges for Abenomics — Research Institute, Limited) Speaker: Nicolas VERON (Visiting Fellow, Peterson Institute for February 18, 2015 Europe's Ongoing Crisis: It's not mostly fiscal International Economics / Senior Fellow, Bruegel ) Speaker: TOMIURA Eiichi (FF, RIETI / Professor, Department of Economics, February 6, 2015 International Economics of Outsourcing Yokohama National University) Speaker： SADAYASU Hideya (President and General Manager, Imperial January 28, 2015 The Imperial Hotel's Corporate Philosophy and Hospitality Hotel, Ltd.) Speaker: Claude BARFIELD (Resident Scholar, The American Enterprise January 27, 2015 The Strategic and Economic Implications of the TPP Institute) Speaker: GOTO Yasuo (SF, RIETI / Chief Economist, Mitsubishi Research Institute, Inc.) January 23, 2015 Presence of SMEs in the Japanese Economy and SMEs Policies Commentator: YONEMURA Takeshi (Director for Policy Coordination, Commissioner's Secretariat, The Small and Medium Enterprise Agency, METI)

January 8, 2015 IFRS — Better understanding for the basics of IFRS Speaker: YAMADA Tatsumi (Partner, KPMG AZSA LLC)

Speaker: HONDA Keiko (Executive Vice President and CEO of the Multilateral Investment Guarantee Agency (MIGA), World Bank January 7, 2015 Japanese Investment in Africa — MIGA's view Group) Commentator: OKADA Kohei (Director, Middle East and Africa Division, Trade Policy Bureau, METI ) Speaker: KONISHI Yoko (SF, RIETI) Overview of Measuring Productivity: Accurate evaluation of December 19, 2014 Commentator: NISHIYAMA Yoshihiko (Professor, Institute of Economic Research, technology Kyoto University) Speaker: Jacob SCHLESINGER (Senior Asia Economics Correspondent and December 18, 2014 The Abenomics Referendum and Its Aftermath Central Banks Editor, Asia, The Wall Street Journal) Inter-firm Network and Spillover Effect: Empirical analysis using December 10, 2014 Speaker: SAITO Yukiko (SF, RIETI) big data

Launch of OECD Economic Outlook 2014: Macroeconomic Speaker: Randall S. JONES (Head of Japan/Korea Desk, Economics November 26, 2014 analysis and policy recommendations for Japan Department, OECD)

OECD's Green Growth Strategy: Southeast Asian case and November 25, 2014 Speaker: TAMAKI Rintaro (Deputy Secretary-General, OECD) beyond Global Economy and Financial Markets: Outlook and Policy Speaker: KINOSHITA Yuko (CF, RIETI / Deputy Head of Office, IMF's November 14, 2014 Challenges Regional Office for Asia and the Pacific (OAP))

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 71 Urban Planning in Japan's Future: Rapidly growing issue of November 12, 2014 Speaker: MAKINO Tomohiro (President and CEO, ORAGA HSC Inc.) empty homes Speaker: UTAGAWA Takashi (Managing Director and Vice President, Fukui November 7, 2014 The Mission of Local Universities in Innovating Local Areas Prefectural University) Reconsideration of Public Pension Reform: Problems to be October 31, 2014 Speaker: NAKATA Daigo (SF, RIETI) solved The Potential Impact of the Chinese Anti-monopoly Law and Speaker: Adrian EMCH (Partner, Hogan Lovells, Beijing) October 24, 2014 Practice on the Japanese Business and Government Commentator: KAWASHIMA Fujio (Professor, Graduate School of International Communities Development, Nagoya University) Speaker: John P. WALSH (Professor, School of Public Policy, Georgia The Acquisition and Commercialization of Invention in Institute of Technology) October 15, 2014 American Manufacturing: Incidence and impact Commentator: GOTO Akira (FF, RIETI / Professor, National Graduate Institute for Policy Studies) Speaker: YAMADA Takumo (Advocacy Manager, Oxfam Japan) Breaking the Barriers: How multi-stakeholder dialogues can October 9, 2014 Commentator: USHIJIMA Keiichi (Principal Fellow, Ernst & Young Institute Co., promote Japan's global leadership beyond 2015 Ltd.) Speakers: Didier HOUSSIN (Director, Sustainable Energy Policy and Key Elements of an Energy Sector Transformation: Launch of Technology, International Energy Agency (IEA)) October 7, 2014 IEA's new annual publication Energy, Climate Change and HATTORI Takashi (Head of Unit, Environment and Climate Environment: 2014 Insights Change Energy Efficiency and Environment Division, Directorate of Sustainable Energy Policy and Technology, IEA) [Venture Series] Speaker: GOJI Tomotaka (Managing Partner, Representative Director and October 2, 2014 Foundation of the University of Tokyo Edge Capital (UTEC) and President, The University of Tokyo Edge Capital Co., Ltd.(UTEC)) Its Efforts over the Past Decade Faith and Skepticism: Conflicting global views of trade and Speaker: Bruce STOKES (Director, Global Economic Attitudes, Pew September 24, 2014 foreign investment Research Center) Speaker: UCHIYAMA Takashi (Director for IP Exploitation Policy Planning Coordination, Policy Planning and Research Division, Policy Recent Trends in Intellectual Property: From the Japan Patent Planning and Coordination Department, Japan Patent Office, September 18, 2014 Office Annual Report 2014 and the Report on Technological METI) Trends in Patent Application Commentator: GOTO Akira (FF, RIETI / Professor, National Graduate Institute for Policy Studies) Developing an Alliance Agenda for an Era of Geostrategic Speaker: Sheila A. SMITH (Senior Fellow for Japan Studies, Council on September 12, 2014 Change Foreign Relations (CFR))

September 4, 2014 A World with eBooks Speaker: FUJII Taiyo (Writer)

Speaker: KURODA Toru (Head of Science & Technology Research August 29, 2014 8K Televisions Opening the Door to the New Era Laboratories / Deputy Director-General of Engineering, JAPAN BROADCASTING CORPORATION) Speaker: KIRIYAMA Takeshi (General Manager, Economic & Industrial August 28, 2014 June 2014 Survey of Capital Investment Plans Research Department, Development Bank of Japan Inc.)

August 27, 2014 Product Development from the Perspectives of Consumers Speaker: OHYAMA Kentaro (Chairman, IRIS GROUP)

[Venture Series] Speakers: AKIYOSHI Yosuke (President & CEO, LANCERS, INC.) August 6, 2014 Examples of Crowdsourcing in Japan and Future Challenges YUDA Kenichiro (Manager, Pasona Tech, inc.) Speaker: MASUJIMA Minoru (Deputy Director-General for Economic Annual Report of the Japanese Economy and Public Finance Research, Cabinet Office) July 31, 2014 2014: Enhancing Growth Potential of the Japanese Economy Commentator: KATAOKA Ryuichi (CF, RIETI / Counselor for the Budget Bureau, Minister's Secretariat, Ministry of Finance) Speaker: Richard J. GILBERT (Emeritus Professor of Economics and July 25, 2014 The Search For Reasonable in Patent Licensing Professor of the Graduate School, University of California, Berkeley) Speaker: HIRATA Takeo (Special Advisor to the Cabinet / Director-General, The Promotion of the Tokyo 2020 Olympic and Paralympic Office for the Promotion of the Tokyo 2020 Olympic and July 24, 2014 Games Paralympic Games / Professor, Faculty of Sports Sciences, Waseda University) Speaker: HIRATSUKA Nobuyuki (Director, Tariff and Market Access Negotiations, Multilateral Trade System Department, Trade Policy White Paper on Manufacturing Industries (Monodzukuri) 2014: Bureau, METI) July 18, 2014 Current status and future direction Commentator: MIYAJIMA Hideaki (FF, RIETI / Professor, Faculty of Commerce, Waseda University / Director, Waseda Institute for Advanced Study)

72 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Speaker: HAJI Koichi (Executive Research Fellow, NLI Research Institute / The Japanese Economy after the Consumption Tax Hike: Issues July 11, 2014 Visiting Professor, Graduate School of Decision Science and concerning assets Technology, Tokyo Institute of Technology) Speaker: SHIMIZU Mikiharu (Director, Policy Planning and Research Office, July 10, 2014 White Paper on International Economy and Trade 2014 Trade Policy Bureau, METI) Commentator: ITO Koji (SF, RIETI) Speaker: TAMAKI Rintaro (Deputy Secretary-General and Chief Economist, July 2, 2014 Shifting Gear: Policy challenges for the next 50 years OECD)

July 1, 2014 Future for the Payment and Settlement System in Japan Speaker: KINOSHITA Nobuyuki (Executive Director, Bank of Japan)

Speaker: Christopher K. JOHNSON (Senior Adviser and Freeman Chair in Decoding "A New Style of Great Power Relations" in U.S.-China June 27, 2014 China Studies, Center for Strategic and International Studies Ties: Implications for economics and security in East Asia (CSIS)) Factors and Outcomes of Gender Equality in Family and Speaker: HONDA Yuki (Professor, Graduate School of Education, the June 25, 2014 Workplace University of Tokyo) Recent Energy Situation in Japan and Outline of the New Speaker: GOTO Osamu (Director-General for Energy and Environment June 20, 2014 Strategic Energy Plan Policy, Agency for Natural Resources and Energy, METI) [Venture Series] Speaker: SEKIYAMA Kazuhide (Director and Representative Executive June 19, 2014 Creation of Innovation through University Ventures Officer, Spiber Inc.) Speaker: KUSHIDA Kenji E. (Takahashi Research Associate in Japanese "Leading without Followers": The puzzle of Japan's "Galapagos" June 17, 2014 Studies, Shorenstein Asia-Pacific Research Center, Stanford ICT industry, a political economy explanation University) New Trends of Internal Control at the Core of Governance Speaker: HATTA Shinji (Auditor, RIETI / Professor, Graduate School of June 12, 2014 Reform Professional Accountancy, Aoyama Gakuin University) Risk Management in the U.S. — My personal experiences Speaker: KADOYA Tetsuo (Former Toshiba General Manager of June 11, 2014 coping with the sanctions by U.S. Congress Washington Office) Global Economy and Financial Markets: Recovery strengthens, Speaker: KINOSHITA Yuko (CF, RIETI / Deputy Head of Office, IMF's June 4, 2014 remains uneven Regional Office for Asia and the Pacific (OAP)) Speaker: TAKEUCHI Kei (Professor Emeritus, The University of Tokyo / June 2, 2014 Statistics for Evidence Based Policy Professor Emeritus, Meiji Gakuin University / Member of the Japan Academy) [Venture Series] Speakers: MATSUMOTO Yasukane (CEO, Raksul, Inc) May 30, 2014 Ventures that Change the World SAMATA Anri (General Partner, The Anri fund) Speaker: HOSOYA Yuji (CF, RIETI / Senior Analyst for Regional Policy, Regional Economic and Industrial Policy Group, Economic and May 29, 2014 Invitation to a Study on Global Niche-top Enterprises in Japan Industrial Policy Bureau, METI) Commentator: INOUE Tatsuhiko (Professor, School of Commerce, Waseda University) Speaker: KIYOTAKI Nobuhiro (Professor of Economics, Princeton May 21, 2014 Financial Crisis and Economic Policy University) Speaker: SODA Takeshi (Director, Research Office, Business Environment Department, Small and Medium Enterprise Agency, METI) May 14, 2014 2014 White Paper on Small and Medium Enterprises in Japan Commentator: UESUGI Iichiro (FF, RIETI / Associate Professor, Institute of Economic Research, Hitotsubashi University) Speaker: KUDO Toshihiro (Director-General, Inter-disciplinary Studies Myanmar's Reforms in the Post-Military Era: A mid-term review April 17, 2014 Center, Institute of Developing Economies, Japan External Trade of Thein Sein Government Organization (IDE-JETRO)) Speaker: MOTOHASHI Kazuyuki (FF, RIETI / Professor, Department of Reforming Japan's Innovation System for Regaining Industrial April 11, 2014 Technology Management for Innovation (TMI) School of Competitiveness Engineering, the University of Tokyo) Speaker: GOTO Akira (FF, RIETI / Professor, National Graduate Institute for April 10, 2014 Globalization, Innovation and Anti-monopoly Act Policy Studies) Commentator: MORIKAWA Masayuki (Vice Chairman & Vice President, RIETI) [Venture Series] April 8, 2014 Speaker: TOKUSHIGE Toru (Founder & CEO, Terra Motors Corporation) Terra Motors' Challenges in the World Market Speaker: Elhanan HELPMAN (Galen L. Stone Professor of International April 4, 2014 Globalization and Inequality Trade, Harvard University)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 73 List of Fellows (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

President / CRO FUJITA Masahisa Urban Economics, Regional Economics, Spatial Economics －

Senior Research Advisor（SRA) (Price Network and concurrent Faculty Fellow Dynamics of Small and Medium Enterprises)

WAKASUGI Ryuhei International Trade, Economics of Technological Innovation, Law and (Empirical Analysis concurrent Faculty Fellow Economics of Trade Policy Preferences at the Individual Level in Japan)

Science and Technology, Information Technology, Industrial － NEZU Rizaburo Policy, Trade Policy

KAWAI Masahiro International Economics, International Monetary Theory, Finance －

Program Director（PD) WAKASUGI Ryuhei International Trade, Economics of Technological Innovation, Law and (Empirical Analysis concurrent Faculty Fellow Economics of Trade Policy Preferences at the Individual Level in Japan)

Microstructure of the Foreign Exchange Market, Economic Analysis ITO Takatoshi of Foreign Exchange Interventions, Inflation Targeting in Advanced (Research on Currency concurrent Faculty Fellow and Emerging Market Economies, Policy Questions on the Japanese Baskets) Economy (How to get Japan out of Deflation), Financial Crises

(Innovation, Incentives, and Organizations) (Standards and NAGAOKA Sadao Policy and Institutions for Innovation concurrent Faculty Fellow Intellectual Property) (Globalization, Innovation, and Competition Policy)

International Economics, Macroeconomics, International Trade and Direct Investment in Asia, Innovation and Total Factor Productivity: (Study on Intangible Assets in FUKAO Kyoji Empirical Analysis Based on Industry and Firm-Level Data, Japan) (Regional-Level Japan Industrial Productivity Database: concurrent Faculty Fellow International Comparison of Total Factor Productivity, Purchasing Database Refinement and Its Analysis) (Evaluating International Power Parity in the 1930s, Gross Prefectural Product in Japan: 1874- Competitiveness) 2004

Comparative Institutional Analysis, Organizational Economics, Labor TSURU Kotaro concurrent Faculty Fellow Market Institutions

FUKAO Mitsuhiro International Finance, Monetary Theory, Corporate Governance concurrent Faculty Fellow

(History of the Policies of the Nuclear and concurrent Faculty Fellow Industrial Safety Agency)

Vice President（VP) (RIETI Data Management Project) (Analysis on Service Industries: Economic Policy, Industrial Structure, Productivity, Labor Market MORIKAWA Masayuki Productivity, Economic Welfare, and Policy Evaluation)

Senior Fellow（SF) Japanese Macroeconomics, Financial Economics, Industrial － GOTO Yasuo Economics, Small Business Economics

(RIETI Data Management Project)

Macroeconomics, Endogenous Economic Growth, Social Security, (Toward a Comprehensive Resolution of the Social Equal Society Security Problem: A new economics of aging)

(Empirical Analysis on Determinants and Impacts of the Formation of NAKATA Hiroyuki Microeconomic Theory, Financial Economics Firm Networks) (An Empirical Study on Economic Resilience and Maintenance of Economic Strength Against Disasters)

ODA Keiichiro (Innovation, Incentives, and concurrent Research The Theory of Banking Organizations) Coordinator (Research)

ODAKI Kazuhiko － －

74 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

OZAKI Masahiko Global Warming Issues, Environmental Education, Finance, Innovation (Study on Intangible Assets in Japan)

(Analysis on Service Industries: Productivity, Economic Welfare, and Policy Evaluation)

SEKIZAWA Yoichi concurrent Research History)

International Political Economy, Global Governance, International TAMURA Akihiko Economic Law, Regional Integration (Especially, EU and East Asian － Region), Corporate Social Responsibility, China

TAMURA Suguru Science and Technology, Innovation Policy (Standards and Intellectual Property)

＜East Asian Production Networks, Trade, Exchange Rates, and Monetary Economics, Financial Economics, International Economics Willem THORBECKE Global Imbalances＞ (Research on Exchange Rate Pass-Through)

TOMITA Hideaki Empirical Analysis for R&D, Patents and Innovation (Evaluating International Competitiveness)

UENO Toru SMEs & Regional Economic Policies, Entrepreneurship Education －

Food and Agricultural Policy, Issues for Intermediate and Mountainous and Food Safety

Fellow（F) (Economic Analysis of Human Resource Allocation Mechanisms ARAKI Shota Labor Economics, Applied Microeconometrics within the Firm: Insider econometrics using HR data) (RIETI Data Management Project)

International Trade, Firm Dynamics and Macroeconomics, Supply (Geospatial Networks and Spillover Effects in Inter-organizational FUJII Daisuke Chain and Firm Networks, Urban Economics Economic Activities)

ITO Arata Macroeconomics, Statistics for Economics －

Environmental and Energy Economics, Industrial Organization, Public － ITO Koichiro Economics

(Evaluating International Competitiveness)

(Historical Study on Japan's Trade and Industrial Policy: From an Economic History of Japan, History of Transportation Industry, international perspective) (History of the Policies of the Nuclear and KAWAMURA Satoshi Industrial Safety Administration Industrial Safety Agency)

Spatial Economics, Development Economics, Labor Economics, (Restoration from Earthquake Damage and Growth Strategies of the Applied Econometrics (Microeconometrics, Spatial Econometrics, KONDO Keisuke Japanese Regional Economy) (RIETI Data Management Project) Bayesian Econometrics)

(The Effect of Diversity on Economic Growth and Business Labor Economics, Migration, Wage, Human Capital, Labor Market LIU Yang Competitiveness) (RIETI Data Management Project)

Economic Policy, Innovation Management, Network Analysis, Social MATSUDA Naoko Network Service

(Research on Innovation Process and its Institutional Infrastructure) (The Role of Public Research Institutions in the Japanese National Innovation, Research and Development (R&D) Management, Innovation System) (Study on Technology Know-how and its YAMAUCHI Isamu Intellectual Property Protection via Questionnaire Survey on the Japanese Manufacturing Industry)

(Social YIN Ting Economies Security System to Revive Economic Vitality and Improve the Quality of Life)

International Economics, Spatial Economics, Development Economics, (Global Markets and Japan's Industrial Growth) (East Asian Industrial ZHANG Hongyong Chinese Economy Productivity)

Research Associate (RAs) Behavioral Science, Communication between Patients and Doctors, (Toward a Comprehensive Resolution of the Social Security Problem: HASHIMOTO Hideki Medical Insurance Policy A new economics of aging)

(East Asian Production Networks, Trade, Exchange Rates, and Global Economic Growth, Productivity Analysis, Trade and Development KATO Atsuyuki Imbalances）

(Global Markets and Japan's Industrial Growth) (Comprehensive TANAKA Ayumu International Trade, Cultural Economics Research on the Current International Trade/Investment System (pt. II))

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 75 (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

TOMOHARA Akinori International Economics, Labor Economics, Public Economics －

(Research on Innovation Process and its Institutional Infrastructur) TSUKADA Naotoshi Economics of Innovation, Industrial Organization (The Role of Public Research Institutions in the Japanese National Innovation System) (Standards and Intellectual Property)

(Research on Exchange Rate Pass-Through) (Exports and the Japanese Economy: Experiences in the 2000s and the lessons for the Banking, Corporate Finance, Applied Econometrics UCHINO Taisuke future) (Study on Corporate Finance and Firm Dynamics) (RIETI Data Management Project)

YOKOO Hidefumi Environmental and Resource Economics －

Faculty Fellow（FF) Standard, Intellectual Property and Innovation, Japanese Science and (Basic Research for a New AOKI Reiko Technology Policy Industrial Policy) (Globalization, Innovation, and Competition Policy)

AOYAMA Hideaki Theoretical Physics, Econophysics

(A Cost-Benefit Analysis of Fiscal Consolidation Measures)

Economics of Innovation, Economics of Competition Policy including Industry Cooperation, Nexus of Innovation and Competition Policy

(Reform of Labor Market Institutions)

IIZUKA Toshiaki Health Economics, Empirical Industrial Organization

(Global Markets and Japan's Industrial Growth) (East Asian Industrial Productivity) (Competitiveness of Japanese Productivity Analysis, International Economics, Health Economics, Firms: Causes and Effects of the Productivity Dynamics) (Evaluating INUI Tomohiko Educational Economics, Chinese Economy International Competitiveness) (The Effect of Diversity on Economic Growth and Business Competitiveness) (Energy and Industrial Structural Change after the Fukushima Nuclear Accident)

ISHIKAWA Jota International Trade Theory

ITOH Hideshi Organizational Economics, Contract Theory

International Economics, Environmental and Natural Resource (Comprehensive Research on the Current International Trade/ JINJI Naoto Economics, Industrial Organization Investment System (pt.II))

(Reform of Labor Market Institutions) (Economic Labor Economics, Applied Econometrics KAWAGUCHI Daiji Analysis of Human Resource Allocation Mechanisms within the Firm: Insider econometrics using HR data)

KAWAHAMA Noboru Antitrust Law, Competition Policy

(A Study on Trade/FDI and the Environment/Energy)

KIKKAWA Takeo Japanese Business History, Energy Industry

(Global Markets and Japan's Industrial KIYOTA Kozo Organization Growth) (East Asian Industrial Productivity)

Endogenous Growth Theory, General Equilibrium, Business Cycles, Bad

(East Asian Industrial Productivity) (Study on Industrial Organization, Productivity Analysis, International Economics KWON Hyeog Ug Intangible Assets in Japan) (Regional-Level Japan Industrial Productivity Database: Database Refinement and Its Analysis)

76 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

Environmental Economics, Resource Economics, Applied Micro

(East Asian Industrial Productivity) (Regional-Level Japan Industrial Productivity Database: Macroeconomics, Japanese Economics, Asian Economic Trends MIYAGAWA Tsutomu Database Refinement and Its Analysis) (Competitiveness of Japanese Firms: Causes and Effects of the Productivity Dynamics)

The Japanese Economy, Economic History of Japan, Corporate

Applied Micro Economics, Economic Statistics, Econometrics, (Study on International Comparison of Productivity, Economic Analysis of Technology Know-how and its Protection via Questionnaire Survey MOTOHASHI Kazuyuki Information Technology, Technological Innovation and Economic on the Japanese Manufacturing Industry) Growth, Innovation System, Input-Output Analysis

NAKAJIMA Takanobu Productivity Analysis

Nonlinear Economic Dynamics, Educational Economics,

Economic Measurement, Productivity Analysis, Energy and NOMURA Koji Environment Economics

OGAWA Eiji International Currency, International Finance

Economic History, Development Economics, Comparative Institutional OKAZAKI Tetsuji Analysis

(Research on Innovation Process and its Institutional Infrastructure) (Innovation, Organizational Economics, Labor Economics, Industrial Organization OWAN Hideo Incentives, and Organizations) (Reform of Labor Market Institutions) (Frontiers of Analysis on Corporate Governance: Growth, value creation and corporate governance)

(Empirical Analysis on SAWADA Yasuyuki Development Economics, Applied Micro-Econometrics, Field Survey Determinants and Impacts of the Formation of Firm Networks) (Toward a Comprehensive Resolution of the Social Security Problem: A new economics of aging)

Analysis of Urban Agglomeration Economies, Spatial Equilibrium, Interregional Differentials, Social Welfare in the Context of Urban TABUCHI Takatoshi Economics, New Economic Geography, International Economics, Spatial Competition Theory

International Economics, Development Economics, Applied

Quality of Labor Input, Embodied Technological Progress, Vintage of (East Asian Industrial Productivity)

(Global Markets and Japan's Industrial Growth)

Corporate Finance, Small and Medium Enterprises, Japanese UESUGI Iichiro Economy, Money Market

URATA Shujiro International Economics, Development Economics

Intellectual Property Management, Technology Transfer, Science and

(Reform of Labor Market Institutions) (The Effect of Diversity on Economic Growth and Business Competitiveness)

Consulting Fellow（CF) (The Structural Analysis of Global Governance over International Industrial Organization, Competition Policy, Innovation, Labor Economic Law: Study on correlative relationship in conflicts between AMBASHI Masahito Economics, Applied Econometrics policies, soft laws, and non-governmental entities)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 77 (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

ANDOH Haruhiko Innovation, 3R/Clean Technology, Modularization, SMEs & Venture －

International Economics, International Development, International － AOYAGI Chie Finance

(East Asian Industrial Productivity) (Regional-Level Japan Industrial － ARAI Sonoe Productivity Database: Database Refinement and Its Analysis)

Fluctuations in the Exchange Rate and Industrial Competitiveness, － ENOMOTO Shunichi International Corporation, Development of Human Resources

ETO Manabu Technology Transfer, Management of Technology, Standardization (Standards and Intellectual Property)

Corporate Social Responsibility, Global Rule Making, Corporate － FUJII Toshihiko Lobbying

FUKANO Hiroyuki － (History of the Policies of the Nuclear and Industrial Safety Agency)

International Economic Law, Intellectual Property Law, International FUKUNAGA Yoshifumi Political Economy, Regional Economic Integration of ASEAN and East － Asia

Globalization, East Asian Economic Integration, Comparative Political FUKUYAMA Mitsuhiro Economy, Japanese Political and Economic Model, History and － Philosophy of Public Policy

Giovanni GANELLI International Economics, Fiscal Policy, Structural Reforms in Japan －

HASHIMOTO Masahiro Policy and Institutions for Innovation, Intellectual Property Rights －

HATA Shigenori Innovation Policy, R&D Evaluation (Research on Innovation Process and its Institutional Infrastructure)

HATA Yumiko － －

HATTORI Takashi International Relations, Environment, Trade －

Trade and Related Policies, Trade Regimes, Economic History, － HAYAFUJI Masahiro Environmental Economics

(Energy and Industrial Structural Change after the Fukushima U.S.-Japan Relations, Economic Structural Reform HAYASHI Ryozo Nuclear Accident)

Industrial Agglomerations and Innovation, Small & Medium-sized － HOSOYA Yuji Enterprises, Regional Industrial Policy

ISHIGE Hiroyuki International Economics, Industry, Small and Medium Enterprises －

SME and Venture Business Policy, Industrial Organization, Innovation － ISHII Yoshiaki Policy

Development of Human Resources, Education, Aging in East Asia, － ISOZUMI Koji Management of Nonprofit Sector

ITO Koji International Trade (Global Markets and Japan's Industrial Growth)

Renewable Energy, Smart Factory, Regional Economy, German － IWAMOTO Koichi Economy, Chinese Economy

KATAOKA Ryuichi Macroeconomics in Japan, International Trade and Trade Investment －

Energy and Environment Policy, Domestic and International Climate － KAWAGISHI Shunsuke and Energy Policy, Policy Impact Assessment, Financial Analysis

Computable General Equilibrium Model, Macro-Econometric Model Trade and Investment Liberalization and Facilitation, Regulatory (Economic Impacts of Free Trade Agreements: The case of Japan) KAWASAKI Kenichi Reform, Macroeconomic Policy, Business Cycles, Economic Outlook, Household Saving Behavior, Determination of Wages and Prices

KAWAZU Tsukasa Distribution Economics, Productivity of Distribution Industry －

KIHARA Takashi International Cooperation, Development Assistance －

Foreign Direct Investment, Technology Spillovers, Economic Growth (Global Markets and Japan's Industrial Growth) KINOSHITA Yuko and Innovation

(Research on the Liberalist Reforms of the Public-Private Relationship Studies in the Governance of the Local Governments in Japan KITAMI Tomitaro and the Establishment of the Third Sector in Japan)

Learning Organization, Intangible Assets, Innovation, Public － KOBAYASHI Hirokazu Management

Public Economics, Urban Economics, Economic Analysis of the (Social Security System to Revive Economic Vitality and Improve the KOBAYASHI Yohei Nonprofit Sector Quality of Life)

78 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

(East Asian Industrial Productivity) (Study on Intangible Assets in Japan) (Regional-Level Japan Industrial Productivity Database: Database Refinement and Its Analysis) Applied Microeconomics, Labor Economics KODAMA Naomi (Analysis on Service Industries: Productivity, Economic Welfare, and Policy Evaluation) (Competitiveness of Japanese Firms: Causes and Effects of the Productivity Dynamics) (Energy and Industrial Structural Change after the Fukushima Nuclear Accident)

Public Key Infrastructure, Social and Psychological Aspects of － KOMATSU Ayako Information Security

KURATA Kenji Technology Policy, Technology Governance in Society －

Chi Hung KWAN China's Economic Reform, Regional Integration in Asia, Yen Bloc －

Economic Integration in East Asia, International Trade Law, － MATSUMOTO Kayo International Investment Law

(Fundamental Research for the Revival of a Vibrant Economy and － MATSUNAGA Akira Society in Japan)

Empirical Research on Financial Markets Using Econometrics and － MIYAZAKI Takashi Time Series Analysis

Regional Economic Integration, Asian Economies, International Trade － MUNAKATA Naoko System

NAKAHARA Hirohiko － (Reform of Labor Market Institutions)

NAKANO Takeshi － －

NAKATOMI Michitaka Trade Law, Trade Policy, International Economy (Economic Impacts of Free Trade Agreements: The case of Japan)

Asian Economics, International Relations, Economic Thought, Market － NAKAZAWA Norio Analysis

Labor Economics and Law, Company Act and Corporate Governance, － NASUNO Futoshi Nuclear Liability Law, Intellectual Property Law

Government Organization, Competition Policy, Measures against Low － NISHIGAKI Atsuko Birthrate

(Social Security System to Revive Economic Vitality and Improve the Social Insurance NISHIOKA Takashi Quality of Life)

(Competitiveness of Japanese Firms: Causes and Effects of the International Economics, Transport Economics, Japanese Economy NISHITATENO Shuhei Productivity Dynamics)

Economic & Industrial Research with Government Statistics, － NOGUCHI Satoshi Information Policy, IT Strategy in the Healthcare Field

Innovation Policy, Management of Technology, Public-Private － NOMI Toshihiko Partnership

Labor Economics, Human Resources Development, Manufacturing, － OGAWA Makoto Industrial Promotion Policy

OGURO Kazumasa Public Economics －

(Social Security System to Revive Economic Vitality and Improve the Macroeconomics, Public Economics, Public Finance OIKAWA Keita Quality of Life)

SABURI Masataka Innovation Policy, Social Medicine (How to solve social problems) －

SAITO Jun Partnership Taxation as a Prerequisite for Innovation －

SAKATA Ichiro Regional Economics, Regional Cluster, Innovation Policy, Tax System －

SATO Hitoshi International Trade, Economic Growth (Global Markets and Japan's Industrial Growth)

(An Empirical Study on Economic Resilience and Maintenance of Countermeasures against Risks SEKIGUCHI Kunio Economic Strength Against Disasters)

SHIMIZU Haruhiko Bayesian Statistics, Econometrics －

SHIRAISHI Shigeaki Public Policy, International Economics, Service Economy, Energy －

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 79 (April 2014-March 2015, alphabetical order)

Name Research areas Research Projects at RIETI < >=project leader ( )=project participants

Mechanism of Innovation, Intellectual Asset Based Management, － SUMITA Takayuki Energy Security

TAKAGI Hiroyasu Statistics －

Intellectual Property Law, Patents, Patent Litigation, Client Consulting, － TAKAKURA Shigeo Opinions, Licensing

Human Resource Management, Organizational Behavior, Work-Life (The Effect of Diversity on Economic Growth and Business TAKAMURA Shizuka Balance Practices Competitiveness)

Industry-University Cooperation, Industry-Medical Cooperation, － TAKEGAMI Shiro Regional Industrial Development, Security Export Control

TANI Midori Consumer Policy, Environment Policy －

Competitiveness of Industries and Firms, Environmental, Energy & TANIKAWA Hiroya Safety Policy, Politics & Economy in East Asia and the Middle East, － Regional Economic Integration, Developmental and Industrial Policy

TASHIRO Takeshi Economic Growth, International Finance, Financial Crisis －

Competitive Intelligence, Risk Management, Crisis Management, － TSUCHIMOTO Ichiro Innovation Policy

(Issues Faced by Japan's Economy and Economic Policy Part III: Household Behavior, Applied Econometrics, Index Theory UNAYAMA Takashi Heterogeneity among economic agents)

U.S. Trade Policy, American Politics, U.S.-China Relations, FDI, World － WASHIO Tomoharu Trade, American Corporate Strategy

YAMADA Masato Work-Life Balance, Intellectual property policy －

YAMASHIRO Munehisa Innovation, IT －

International Trade, Innovation, International Macro Economy, － YASHIRO Naomitsu Chinese Economy

Trade Policy, Trade Control, Infrastructure Export, Small Businesses, － YOSHIDA Yasuhiko Manufacturing Industry, Industrial Development Policy

Visiting Fellow（VF) (On Monetary and Fiscal Policy under Structural Changes and Macroeconomics, Fiscal Policy KITAO Sagiri Societal Aging)

Development Economics, Industry Development, Environmental (A Socioeconomic Analysis of Households in Environments MENG Jianjun Policy Characterized by Aging Population and Low Birth Rates)

Quantitative Methodology (Event-History Models and Models for Categorical Data), Work and Family, Work-Life Balance, Models of Rational/Purposive Social Action, Life Course and Occupational (The Effect of Diversity on Economic Growth and Business Career, Social Stratification and Social Inequality, Contemporary YAMAGUCHI Kazuo Competitiveness) Japanese Society, Social Network, Social Exchange, Social Diffusion, Epidemiology of Drug Abuse, Longitudinal Analysis of Drug-Use History

Visiting Scholar（VS) International Trade, Firm Dynamics and Macroeconomics, Supply (Geospatial Networks and Spillover Effects in Inter-organizational FUJII Daisuke Chain and Firm Networks, Urban Economics Economic Activities)

Development and Implementation of Regulations and Regulatory － Andrei GREENAWALT Policy

International Political Economy, Foreign Direct Investment (FDI) and CHIOU Yi-hung (Eric) International Conflict, Regional Economic Integration in the Asia- － Pacific, Political Economy of Southeast Asia

Financial Econometrics, Empirical Finance, Applied Macroeconomics, (Exports and the Japanese Economy: Experiences in the 2000s and OKIMOTO Tatsuyoshi Econometrics the lessons for the future)

80 Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 Evaluation Committee

Research Institute of Economy, Trade and Industry, IAA

(As of the end of March 2015) Special Advisor/ Chairman Advisor President and CRO Auditor Vice Chairman Senior Research Advisors

Program Directors Vice-President

International Program / Administration Group Research Group Public Relations Group Director of Research Director of International Coordination / Director of Administration Research Coordinator (Research) Public Relations Research Coordinator (Policy History) Deputy Director of Research Deputy Director of Administration Deputy Director of International (Research, General Administration) (General Affairs, General Administration) Coordination / Public Relations General Administration / Information Disclosure Research Support (Research Distribution, International Program) and Internal Control Research Administration Research Distribution General Affairs Quantitative Analysis and Database Pollcy History Group Conference Section / International Program Financial / Accounting - Full-time Fellows (Senior Fellows, Fellows) Information System - Facullty Fellows Public Relations - Consullting Fellows Human Resources / Labor - Visiting Fellows Online Editorial

Program Directors Evaluation Subcommittee for RIETI Program Directors (PDs) are assigned to each of the nine research An incorporated administrative agency sets definite targets and plans programs to conduct efficient and substantive research activities as a for its activities. It is evaluated by a third-party organization to ensure the whole via comprehensive research guidance, contributions to policy adequacy of these plans and the transparency of its performance. This formation, and cooperation among research programs. third-party organization is called the Incorporated Administrative Agency Evaluation Committee. A subcommittee established for each institution Program Directors Research Programs undertakes an objective evaluation of the effectiveness and adequacy of Professor, Gakushuin University the institution’s operations. WAKASUGI Adjunct Professor, Yokohama National International Trade Ryuhei University and Investment Subcommittee Head: ONO Toshihiko (Former Corporate Executive, Nisshin Professor Emeritus, Kyoto University Steel Co., Ltd.) Professor, School of International and Subcommittee Members: KOJO Yoshiko (Professor, Graduate School of Arts ITO Public Affairs, Columbia University International and Sciences, The University of Tokyo) Takatoshi Professor, National Graduate Institute for Macroeconomics Policy Studies OGASAWARA Naoshi (Representative Partner, Professor, Research Institute for Avantia GP) HAMAGUCHI (Subcommittee members in alphabetical order, Nobuaki Economics and Business Administration Regional Economies (RIEB), Kobe University honorifics omitted, as of the end of March 2014) NAGAOKA Professor, Institute of Innovation Technology and Sadao Research, Hitotsubashi University Innovation Note: Japan revised its independent administrative institution system in fiscal 2014. As Director, Institute of Economic Research, Raising Industrial and of fiscal 2015, evaluations will no longer be performed by the Evaluation Committee for FUKAO Kyoji Hitotsubashi University Firm Productivity Independent Administrative Institutions and the Research Institute of Economy, Trade and Industry Subcommittee. OHASHI Professor, Faculty of Economics, New Industrial Hiroshi The University of Tokyo Policy TSURU Professor, the Graduate School of Kotaro Business and Commerce, Keio University Human Capital External Advisory Committee Social Security, The External Advisory Committee, which consists of external experts at FUKAO Professor, Faculty of Business and Taxation, and Public universities and research institutes, etc., verifies research progress and Mitsuhiro Commerce, Keio University Finance efficiency and considers measures to enhance RIETI’s research activities. Professor, Faculty of Economics and TAKEDA Policy History and ASHIDA Akimitsu (Representative Director [Chairman of the Board], Mitsui Haruhito Graduate School of Economics, Policy Assessment The University of Tokyo O.S.K. Lines, Ltd.) (Honorifics omitted, as of the end of March 2015) Richard E. BALDWIN (Professor, The Graduate Institute of International and Development Studies, Geneva) Senior Research Advisors FUKUI Toshihiko (President, The Canon Institute for Global Studies) Senior Research Advisors (SRAs) give cross-sectional, comprehensive Dale W. JORGENSON (Professor, Harvard University) advice on RIETI’s research activities and operations. KURODA Masahiro (Professor Emeritus, Keio University) KAWAI Masahiro (Project Professor, Graduate School of Public Policy, the TACHIBANAKI Toshiaki (Professor Emeritus, Kyoto University / Visiting University of Tokyo / Counsellor, Bank of Japan) Professor, Kyoto Women’s University) NEZU Rizaburo (Former Executive Fellow, Fujitsu Research Institute) YOSHINO Naoyuki (Dean, Asian Development Bank Institute / Professor Emeritus, Keio University) WAKASUGI Ryuhei (Professor, Gakushuin University/Adjunct Professor, Yokohama National University/Professor Emeritus, (In alphabetical order, honorifics omitted, as of the end of March 2015) Kyoto University) YOSHIKAWA Hiroshi (Professor, Faculty of Economics, The University of Tokyo) (In alphabetical order, honorifics omitted, as of the end of March 2015)

Research Institute of Economy, Trade and Industry, IAA, ANNUAL REPORT April 2014 - March 2015 81