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Home , Hyogo Prefecture, Kansai region, Kansai Science City, Kyoto Prefecture, Nara (city), Osaka

Introduction of KANSAI,

KYOTO

OSAKA HYOGO

WAKAYAMA

SHIGA

INVEST KANSAI Introduction Profile of KANSAI, JAPAN

Kansai area

Fukui

Tokyo Kansai Shiga Hyogo

Osaka Mie

Osaka Kyoto Nara

Tokushima

©Osaka Convention & Tourism Bureau

With a population exceeding 20 million and an economy of $800 billion, the plays a leading role in western Japan. Osaka is center of the region, a vast second only to in scale.

Three , located close to one another 30 minutes by train from Osaka to Kyoto, and to Kobe.

Domestic Comparison International Comparison Compare to Capital economic zone (Tokyo) Comparison of economic scale ( Pacific Region) Kansai Tokyo (as percentage of Japan) (as percentage of Japan) Area (km2) 27,095 7.2% 13,370 3.5% Population (1,000) 20,845 16.3% 35,704 28.0% Kansai Gross Product of 879 15.6% 1,823 32.3% region (GPR) (US$billion) Indonesia

(Comparison of Manufacturing) Taiwan Kansai Tokyo (as percentage of Japan) (as percentage of Japan) Thailand Manufacturing output (US$billion) 568 15.9% 621 17.4% Employment in manufacturing (1,000) 1,196 16.1% 1,231 16.6% New Zealand Number of new factory setup (*) 181 14.8% 87 7.1% 0 500 1000 1500 (Unit: US$ billion)

Number of manufacturers in Kansai is equivalent to Tokyo which is its economic size. Economy scale of Kansai is comparable to economies in Asia Pacific Region.

Source: Institute of Geographical Survey, Ministry of Internal Affair “Population Projection” “World Statistics 2012”, “Country Economic Statistics”, IMF WORLD Economic Outlook Database Apr 2012, Ministry of Economy Trade and Industry “Industrial Survey” “Factory Site Selection Trend Survey” *) Number of new factory setup: company that acquire more than 1,000m2 of land for the purpose of setup new factory or research institute Note) Definition of region: Kansai (Osaka, Kyoto, Hyogo, Nara, Shiga, Wakayama), Capital zone (Tokyo, Kanagawa, , ) Year of comparison: Area: 2013, Population: 2012, Economy scale: 2010, Manufacturing output and Employment: 2012, New factory setup: 2012, International Comparison: Kansai 2010 Gross regional products(GRP), economy zone 2010 Gross domestic products (GDP) Exchange rate: 2010: US$1=87.78Yen, 2012:US$1=80.82Yen

INVEST KANSAI Kansai's Unique Growth Strategies KANSAI Insight & Foresight Will Generate Premium Value

Kansai's economy has an influence extending beyond the region’s borders, and its trends are felt throughout Japan and the rest of Asia. What is its potential for future growth? What predictions can foreign investors make based on existing analyses and indicators? We asked Dr. Yoshihisa Inada, Director of Research at Asia Pacific Institute of Research (APIR). (February 2014)

Kansai’s Economy Today and medical equipment. At APIR we monitor movement of the Japanese and world economies, and ana- Benefits Offered by Kansai lyze and report trends on a weekly basis. Each prefecture in Kansai offers distinct For Kansai’s economy we use high freq- advantages: Osaka is an economic power uency model forecast to reveal economic that accounts for half of the Kansai region’s trends and issue very short-range to economic activity; Kyoto is a premium Yoshihisa INADA medium- and long-range forecasts based tourist destination; Hyogo boasts thriving Ph.D. in Economics on Japan’s quarterly GDP data. Kansai’s metalworking and machinery industries; Director for Research economy currently accounts for 16% of and Nara, Shiga and Wakayama are strong Japan’s GDP, but it has become less in other areas. Given that Kansai is home to competitive in areas where it was tradition- so many highly developed urban centers, ally strong, such as in exports of audiovisual naturally it is well connected by an efficient equipment, and the focus is now on transport network. innovative growth strategies and industries But Kansai is not only a rich hub of industry, with the potential to stimulate future growth. academia and research. It is also blessed with countless cultural treasures, a rich Kansai’s Future Growth Strategies natural environment, and delicious cuisine. There are four aspects to Kansai’s growth Little wonder, then, that Kansai is a popular strategies: (1) branding to achieve high posting for international businesspeople added value; (2) leveraging ICT to speed up and their families. the decision-making process; (3) investing in capital to build a workforce that Kansai’s Strategic Advantages can spearhead corporate expansion over- Kansai is a region of great diversity where seas; and (4) finding ways to ride the Asian collaboration among industry, government, growth wave. As far as human capital, I and academia are broadly encouraged, and believe that foreign students studying in there is a distinctly organic connection Kansai are potentially a core source of the between its unique cities. Kansai boasts the people we need. A poll of foreign students flexibility and hospitality to satisfy the varied studying in Kansai revealed that 73% like interests and needs of people from around our region and want to work here. There is, the world. in fact, an initiative in place that seeks to The Great Earthquake of 1995 match foreign students with Kansai busi- devastated a large swath of Kansai, but the nesses through internships. lessons learned have led to many innovatio- Asia Pacific Institute of Research Efforts to strengthen the Kansai brand inc- ns in disaster readiness. Business continuity (APIR) lude establishment of the Kansai Innovation plans are now much more common among Grand Front Osaka Knowledge Capital International Strategic Comprehensive Spe- local businesses, and Kansai businesses are Tower C7, 3-1 Ofuka-cho, Kita-ku cial Zone. This zone provides a solid foun- much more aware of the need to protect Osaka 530-0011, Japan dation for pursuing sustainable innovation supply chains against such risks. These TEL +81-6-6485-7690 in the lifestyle and green sectors. In part- behind-the-scenes aspects also help give icular, Kansai is emerging as a global leader the region true premium value, making E-MAIL in drug discovery, regenerative medicine, Kansai a highly attractive proposition. [email protected]

INVEST KANSAI Concentration of Solar Cell and Li-ion Battery Manufacturing Sites in Kansai KANSAI Success in Green Technologies NO.1 Share in Japan

Kansai’s Overwhelming Battery Share Photovoltaic modules Lithium-ion Battery

No.1 Other Than Kansai in Japan 9 No.1 Other Than Kansai in Japan 5.57 Million pcs 0.8 Billion AH 40% Kansai 39% Kansai 8.23 Million pcs 9 1.3 Billion AH in 2012 60% in 2012 61% 6 7 5 Total Production in Japan: 6 Total Production in Japan: Million pcs Billion AH 13.8 3 8 4 2.1 5 8 Source: Kansai Bureau of Economy, Trade and Industry, Ministry of Economy, Trade and Industry

4 Corporation 2 30km AIS Company 1 Katsuragi Plant 2 Plant 1 Sankyo Energy Nandan 2 Plant 3 1 60km 7 Panasonic Corporation 3 Kasai Plant 4 Suminoe Plant Eco Solutions Company 1 3 Nishikinohama Plant 4 Shiga Plant 100km Hitachi , Ltd. 5 Kyoto Plant Corporation 2 5 Shiga Youkaichi Plant Lithium Energy Japan 6 Shiga Yasu Plant 7 Mie Ise Plant 6 Ritto Plant 7 Kusatsu Plant 8 Kyoto Plant Mitsubishi Electric Corporation Blue Energy Co., Ltd 8 Kyoto Plant 9 Fukuchiyama Plant

Kaneka Solartech Corporation Company websites, DiamondWeekly 9 Toyooka Plant

Effort / Activity to Enhance Industrial Competitiveness

Creation of world’s leading Battery Cluster New Generation Energy System / Laboratory Zone Knowledge Capital area ,Yumeshima and Kansai Science (Keihanna) City Osaka Station area (Grand Front Osaka) Sakishima Experimental Projects - Battery Strategy Research Center - A community entirely covered by PV power generation - Smart Community projects for Photo: The Kansai Electric Power Co., Inc - Biogas/Waste power generation standardization and overseas business - Modal shift ,etc. - Invite environmental and energy Yumeshima Future projects industries - Next generation energy - Projects in development (Mega solar Sakishima system of Community power plants, Waste power generation, Energy Management and Superconducting power System KNOWLEDGE CAPITAL transmission, etc.) Open Innovation Center - Urban open innovation center for - Promotion of New business networking industry-academia and - Facility: Salon, Lab and Theater international exchanges Photo: Urban Renaissance Agency - Innovation - Spreading culture Objective - International exchange More than 110 research, university, and cultural facilities - Nurturing talent

Special Zones in Kansai Region Future Outlook of Solar Cell and Life science Green-Tech Li-ion Battery Industry Output by 2025 F A Harima Science Garden City (SPring8) (Total Production in Japan) A C B Kobe Biomedical Innovation Cluster Solar Cell Lithium-ion battery G B D C Northern Osaka area 2025 2025 Hanshin E D Osaka Station area 1,130 3,850 Kansai International E Osaka Bay area, Yumeshima and Sakishima Billion yen Billion yen Airport F Kyoto area 4.5 times 16.7 times 2010 2010 G 250 230 Billion yen Billion yen World’s leading research institutions and enterprises are located within 1 hour travel distance. (Membership ) 204 organizations including universities, research institutions, companies, economic groups, local governments, etc.. (As of March 2014 ) Source: Application for The Kansai Innovation International Strategic Comprehensive Special Zone

INVEST KANSAI Aiming to become the world’s top battery R&D and manufacturing base Battery Strategic Research Center (Department of Commerce, Industry and Labor, Osaka Prefectural Government)

Battery Strategic Research Center (hereinafter referred to as BSRC) was established in in July 2012, as part of efforts of “Kansai Innovation International Strategic Comprehensive Special Zone”. The purpose of BSRC is to take advantage of the concentration of battery related manufacturers and research institutions to support the development of industry concerned and to strengthen its international competitiveness. We interviewed Head of BSRC, a former Sony Corporation engineer, Mr. Masayuki TOHDA regarding policies and future outlook of BSRC. (April 2013)

The Role of BSRC "Kansai Innovation International Strategic Comprehensive Special Zone” is targeted at the field of life sciences and new energy. This organization is particularly committed to the development and industrial cooperation among those involved in three types of batteries (storage battery, fuel cells, and solar cells) as well as smart community. In particular, we believe there will be huge market for electric vehicles (EV) and fixed storage batteries in the future.

Our Activities There are three important activities at BSRC. First is to "create new demands”. Take electric vehicle as an example, EV use much more batteries compared to electrical gadgets such as personal computers, the increase in demand of electric vehicles will have direct impact on the level of industrial activity within the Kansai region. Combining different technologies to create new application is also important, such as combining storage battery and medical devices. We believe there is demand for batteries in medical application such as Masayuki TOHDA dialysis equipment which should maintain functionality even Head of BSRC in emergency situations. (Assistant Director General Department of Commerce, Second is to "promote certification". Although quality of Industry and Labor, Osaka Prefectural Japanese battery is superb, it is hard to be recognized Government) internationally without third-party certification and assessment of its performance. In addition, energy equipment cannot avoid PL (Product Liability). Therefore, we work together with the certification body to promote awareness of certification as well as provide advices on certifying the batteries.

Third is “coordination” in the new energy field, which involves companies, universities, and research institutions located in the Kansai region. It is our task to provide business matching and consulting services as well as promote concentration of Case of Activities battery related industry to the Special Zone. (Electric Vehicle Structure Research Society) Can you give us details about BSRCs activity? In order to attract more companies to join EV related industries, we held a seminar on battery related components in March 2013, where we decomposed an actual EV. In other cases, field trials have begun based on our business matching efforts. I will use my experience as a researcher, and organize more projects that are beneficial to business community.

Message to companies interested in Special Zone Battery Strategic Research Center Special Zone in Osaka has unique policy of “zero local tax” (BSRC) which is unmatched by any local governments in Japan. Osaka is part of the Kansai region with huge market and is also an 1-14-16, Nankokita, Suminoe-ku, Osaka attractive business location with sophisticated transportation JAPAN 559-8555 network, good logistics infrastructure such as Port of Osaka, FL 25, Sakishima Hall, Osaka Prefecture Kansai International Airport. Our task is to support bridging TEL +81-6-6210-9269 your company and the central government as well as with other relevant agencies, match your business with other E-MAIL business entities in Kansai. We look forward to your [email protected] investment and business activities in Osaka.

INVEST KANSAI Excellence of Life Science Industries KANSAI The Kansai-based life science industry supporting high level of longevity NO.1 Share in Japan

Kansai's Share of Medicinal Drug and Medical Device Medical–drug-related-production Medical–device-related-production in 2010 in 2010 Kansai Others Others 1,887 Billion Yen 254 Billion Yen 1,853 Billion Yen 17% Tokyo Area 28% 29% Kyusyu 123 Billion Yen 8% 729 Billion Yen No.1 47% Tokai in Japan Tokai 151 Billion Yen 10% 1,193 Billion Yen Tokyo Area Kansai 18% 1,669 Billion Yen 6 280 Billion Yen 25% 18% 6 Trillion 600 Billion Yen 1 Trillion 500 Billion Yen 1 In Japan 3 In Japan 2 Source: Ministry of Economy, Trade and Industry 7 4 Biotechnology-related 5 30km Leading pharmaceutical companies projects in Kansai 60km 1 Kyoto BioCity Conception (Kyoto)

2 Osaka Bio Strategy (Northern Osaka) 100km Creation of Biotechnology Industries 3 Based on Photo Science Technology (Harima) 4 Kobe Biomedical Innovation Cluster (Kobe)

5 Health and Preventive Care Industry Promotion Project (Osaka)

6 A Biotechnology Industry Creation Project Based on the Biotechnology of the Nagahama Science Park (Shiga) Over 200 universities/research institutes 7 Photo-Medical Valley Project (Keihanna) About 100 bio ventures Source: Kansai Bureau of Economy, Trade and Industry, Japan Bioindustry Association

Effort / Activity to Enhance Industrial Competitiveness

Speed-up of R&D-to-product process Combination of Companies and Institutions technologies Fundamentals for boosting innovation

Establishment of the Project target Osaka Station area screening system - R&D for medicine and medical devices Alliance with overseas - Use of clinical study - Accelerated establishment of advanced medical technologies organizations data as clinical trial and preemptive medical care - Bio Business Alliance of data Projects Minnesota (BBAM), - since 2010 Integrated screening - Promotion of R&D activities for innovative medicines management Medical Innovation Center (Kyoto area) regardless of Kansai International Airport clinical study or - World's leading cold chains clinical trial Universities - Inauguration of Mega cargo carrier hub in Kansai KIX Medica: Constant - Development of Robots and Devices for KYOTO, Establishment of specialized organizations OSAKA, temperature storage surgical, diagnostic, nursing KOBE... PMDA*-WEST Cerebral and Cardiovascular (Investigation/Consulting desk) Center (Northern Osaka area) - Robotech- Clinical Trial Center Innovative R&D of medical devices for digestion bed (Panosonic) (Virtual network) treatment (Kobe Biomedical Innovation Cluster ) *PMDA: Pharmaceuticals and Medical Devices Agency Photo: New Kansai International Airport Company ,Ltd

Special Zones in Kansai Region Future Outlook of Medical Industries Life science Green-Tech Output by 2025 F A Harima Science Garden City (SPring8) Export of medical Export of medical A C B Kobe Biomedical Innovation Cluster drugs devices G B D C Northern Osaka area 2025 2025 Hanshin Port E D Osaka Station area 780 280 Kansai International E Osaka Bay area, Yumeshima and Sakishima Billion yen Billion yen Airport F Kyoto area Approx. 4 times Approx. 4 times 2010 2010 G Kansai Science City 189 66 Billion yen Billion yen World’s leading research institutions and enterprises are located within 1 hour travel distance. (Membership ) 204 organizations including universities, research institutions, companies, economic groups, local governments, etc.. (As of April 2014 ) Source: Application for The Kansai Innovation International Strategic Comprehensive Special Zone

INVEST KANSAI Devotion to Pharmaceutical Development Meeting the Needs of the Japanese Market and Cultivation of International Talents Nippon Boehringer Ingelheim Co., Ltd. Kobe Pharma Research Institute

In 2008, Nippon Boehringer Ingelheim Co., Ltd. has set up a new research and development base – The Kobe Pharma Research Institute, within the Kobe Biomedical Innovation Cluster (hereinafter referred to as KBIC). Since its establishment, Kobe Pharma Research Institute has been conducting research and development activities in collaboration with number of nearby research institutes and taking advantage of the infrastructure. We interviewed Head of the Institute, Mr. Koichi WADA to better understand the advantages of KBIC as The Kansai Innovation International Strategic Comprehensive Special Zone. (May 2013)

Role of the Kobe Pharma Research Institute Boehringer Ingelheim GmbH has set up research institutes in five countries around the world including Germany and Kobe, and is working in cooperation with each other in carrying out international research and development activities. Among our institutes, Kobe is focused not only on non-clinical research and development but also contribute to enhance customer satisfaction by adapting to specific needs of the Japanese market. Furthermore, it is our important task to enhance collaboration between our international research and development activity with extraordinary advanced technologies of Japanese academia.

Reasons for Selecting Kobe Japanese universities and research institutes have remarkable research and development capabilities. KBIC seemed suitable for us as a place where we can establish relationship with the brightest researchers and medical experts in the Kansai region, which will lead us to perform high level research and development through joint projects and sharing know- hows. KBIC is a cluster of enterprises and research institutes which makes us easy to socialize with other researchers and carry out joint research projects. You can make use of infrastructures such as laboratory facilities and conference rooms within KBIC. Close proximity to Station (Shin-Kobe) and Airports (Kobe, Itami, Kansai international) makes it convenient for us to collaborate with Headquarter in Tokyo and overseas laboratories, and invite personnel for joint projects involving academia, government, and the industry concerned. I also think the living environment in Kobe is favorable for foreign Koichi WADA, Ph.D. in Pharmaceuticals researchers. Operating Officer Head of Kobe Pharma Research Institute What are your thoughts about taking hold in Kobe after five years? It has been stimulating experience for our researchers to be involved with cutting edge research themes, know-how and technology of the RIKEN Center for Life Science Technologies (CLST). Actually, we carry out joint research project with CLST. We also receive technical proposals from neighboring ventures and enjoy the privilege of utilizing the world’s largest synchrotron radiation facility “SPring-8”. In addition, the simplified import-export procedure for pharmaceuticals that we use for research is of great help in speeding up the procurement of necessary materials. It is important for us, not only to contribute to international pharma- ceutical research and development but also to develop pharmaceuticals that are suited to Japanese market. In order to achieve such objectives, we have to take a long-term perspective and nurture our researchers to be able to lead our research and development activities with understanding of the Japanese market, while accumulating practical experience on a global basis. Kobe is the Nippon Boehringer Ingelheim Co., Ltd. right place to nurture such researcher who can act both globally and Kobe Pharma Research Institute locally. 6-7-5, Minatojima-Minamimachi,Chuo-ku,Kobe Messages for future entrant to KBIC Hyogo, JAPAN 650-0047 There are many universities, research institutes, and enterprises in KBIC focused on iPS cell and other advanced life science research. One can TEL +81-3-6417-2200 (main switchboard) expect collaboration such as joint research among cluster members. E-MAIL For a global company, I think Kobe is the best place where you can [email protected] understand the Japanese market as well as maximize R&D results.

INVEST KANSAI Special Zones in Kansai Region F - Matrix of Projects - A C G B D Hanshin Port E Life science Green-Tech Kansai International A Harima Science Garden City (SPring8) E Osaka Bay area, Yumeshima and Sakishima Airport B Kobe Biomedical Innovation Cluster F Kyoto area C Northern Osaka area G Kansai Science City D Osaka Station area Guide to the symbols: = Main district for project = Collaborating district for project

Project sites Projects in Kansai Kansai Hanshin Int'l A B C D E F G port Airport Establishment of the screening system and clinical trial function utilizing 1 regional institutions Establishment of a screening and evaluation committee of advanced and 2 preemptive medical technologies Innovative drug discovery and development utilizing synchrotron 3 radiation and simulation technologies Speed-up of Improvement of efficiency in drug discovery utilizing MRI, PET and CT R&D-to-product 4 technologies process Use of Hyogo beamline in SPring-8 develop and evaluate next 5 generation energy saving raw material 6 Establishment of Battery Strategy Research Center

7 Establishment of Smart Community Open Innovation Center

1 Promotion of R&D activities for innovative medicines

2 Development of Robots and Devices for surgical, diagnostic, nursing

3 Accelerate establishment of regenerative medicine, cell therapy, etc.

4 R&D and promotion for establishment of preemptive medicine

5 Innovation creation project in Osaka Station area

6 Training programs for foreign medical experts in Northern Osaka area

Exchange programs for international medical experts in Osaka Station Combination of 7 area Companies and Training programs for foreign medical experts in Kobe Biomedical Institutions 8 Innovation Cluster technologies 9 Battery Strategy Research Center for industrial promotion

10 Smart Community for standardization and promoting in Osaka Bay area.

11 Establishment of next generation energy system experimental projects

12 Accelerate current new energy test projects to practical application

Smart Community for standardization and promoting in Northern 13 Osaka area

14 Support R&D activities through establishment of high speed ICT network

15 Utilization of MICE functions in Osaka Bay area

1 Developing human resources through innovative R&D projects

2 Promote consolidation and commercialization of medical devices

Promotion of manufacturing SMEs' entry into the medical devices and 3 new energy market Digitalization and simplification of import and export procedures for 4 medicines and devices 5 Enhance cold chain services Fundamentals Enhance Asian hub function by inauguration of international for boosting 6 Mega cargo carrier hub innovation 7 Establish dryports to enhance domestic container-cargo network

8 Reduction of port and costs

9 Privatization of port services

10 Increase Cargo demand through promoting Hanshin port

Source: Application for The Kansai Innovation International Strategic Comprehensive Special Zone (, Osaka Prefecture, Hyogo Prefecture, City of Kyoto, City of Osaka, City of Kobe) Website of Kansai Economic Federation, Brochure :The Kansai Innovation International Strategic Comprehensive Special Zone

For further information, please visit the website of The Kansai Innovation International Strategic Comprehensive Special Zone Council at: http://kansai-tokku.jp/

INVEST KANSAI Pioneering Research into Basic Technologies and Giving Birth to Promising Partnerships Advanced Telecommunications Research Institute International

Advanced Telecommunications Research Institute International (ATR) was established in 1986 and opened in 1989 in Kansai Science City, one of the Kansai Innovation International Strategic Comprehensive Special Zones. ATR was Kansai Science City’s first major tenant and played a central role in getting the zone concept off the ground. Since then, ATR has followed a philosophy of contributing to the international community by offering a forum for basic technology research and research partnerships among industry, government and academia, with many promising results that have made it one of the world’s premier research institutes. We asked President Yasuo Hirata about the present and future of this pioneering research facility in Kansai. (March 2014)

ATR’s Areas of Strength At ATR we seek to make a genuine contribution to the inter- national community through advanced, creative research. Speci- fically, we foster high-quality basic research and nurture a large pool of talented researchers by providing a forum for industry- government-academia research partnerships. We also actively explore practical applications of research outcomes by deve- loping them into products and business ventures. One example is research into auditory and visual perception, one of our initial areas of focus. Today we are doing some of the world’s most advanced research into decoding and transmitting neural activity, earning us the attention of medical institutions and businesses worldwide. Our goal is to parlay such breakthroughs into research and innovations of practical use to society in a wide range of fields.

Examples of Successful Commercialization Our research into smart communication systems before the widespread advent of mobile phones has evolved into research into 3D and other “tele-immersion” technologies. One of our most celebrated founding projects was automated translation, Yasuo HIRATA now offered as a translation application service in partnership Doctor of Engineering with a mobile phone carrier. In the future we expect our President of Advanced Telecommunications research into neuroinformatics and robotics to lead to Research Institute innovations that improve people’s lives, such as in the area of International assisted living.

Advantages of Pursuing Research at Kansai Science City Kansai Science City provides a spacious environment with natural greenery. It is a setting that researchers from overseas are always pleased to work in. What’s more, the fact that we are located in Kyoto Prefecture ensures that ATR constantly attracts the interest of VIPs from abroad. This place is home to a vast array of partnerships involving various universities and research institutions, making it attractive to research and development type businesses. ATR develops robot-based Discovery research at Kansai Science City continues to spark services aimed at assisting many offshoot joint research projects in a variety of fields, those in need. including agriculture and healthcare. These are very much future- oriented undertakings and have yet to reach maturity, but they serve as clear illustrations of Kansai Science City’s solid growth as a center for innovation.

Future Prospects There is a palpable feeling that the long years of groundwork at Kansai Science City are beginning to bear fruit. Many ATR alumni are making great strides around the world and are expanding ATR’s network across the globe. Significantly, all ATR subsidiaries established to commercialize research outcomes have reached or exceeded the financial break-even point. Moreover, the opening of Grand Front Osaka in the heart of the city has greatly increased opportunities to spread the word Advanced Telecommunications Research Institute about ATR’s research achievements among the general public. International (ATR) Looking to the future, our goal is to achieve innovations that can change society. To that end, we will further pursue local and 2-2-2 Hikaridai, Seika-cho, Soraku-gun, Kyoto 619-0288, Japan global partnerships with universities, research institutions, and TEL +81-774-95-1111 E-MAIL [email protected] businesses that will cross-stimulate participants.

INVEST KANSAI Kansai’s Advantage: Investment by Global Companies

Kansai becomes one of the most attractive places as to its economic fundamentals, therefore a number of foreign companies has set up operations in Kansai region.

Medical Industry Chemical Industry

AstraZeneca K.K. Air Liquide Japan Ltd. Japan Air Gases Eli Lilly Japan K.K. Major Determining Factors Procter & Gamble Japan K.K. Hospira Japan K.K. Beauty & Health Innovation Co., Ltd. Nippon Boehringer Ingelheim Co., Ltd. ・The size of the Kansai market Bayer Yakuhin,Ltd. ・Well-developed rail and flight networks Manufacturing Industry Service Industry ・Good transportation access to major cities ALSTOM K.K. Emirates Airline, Japan Branch ・Concentration of related RECARO Japan Co., Ltd. Hilton Osaka HBC-radiomatic Japan K. K. USJ. Co., Ltd. businesses and R&D institutes Tata Consultancy Services Japan Limited Corning Japan Inc. Presence of business partners ・ Samsung Japan Corp. ・Availability of well-qualified Retail Industry human resources Haier Japan Holdings Co., Ltd. EVATECH Co.,Ltd IKEA Japn K.K. ・Cheaper office rent compared to the Tokyo area Chelsea Japan Co., Ltd. Foods Industry Costco Wholesale Japan ・Favorable living environment (educational institutions, Nestle´ Japan Ltd. natural environment) Distribution / Transportation Industry Finance and Insurance Industry ProLogis Eurocopter Japan Co., Ltd. AIG Fuji Insurance Services KK

Source: “Welcome to Kansai” issued by Kansai Bureau of Economy, Trade and Industry The Foreign Investor CD-ROM 2012, Toyo keizai Inc. Note: Listed are companies that have head offices, sales offices or research institutes in Kansai. Major determining factors are based on interview surveys of some companies listed above. DATA

Countries’ share of foreign companies in Kansai Industries’ share of foreign companies in Kansai

2012 2012 Machinery and Chemical Electric Asia other Equipments Products Appliances 5.7% Other Information 9.8% 7.6% 3.6% 3.1% Korea & Software Pharmaceuticals 6.7% Other Sevices 4.0% 4.0% Non-manufacturing 8.9% U.S. 21.3% Other 31.6% Other Europe other Wholesale Related with Manufacturing 10.3% Manufacturing Machinery 14.1% Switzerland Wholesale 3.1% U.K. Germany 10.7% 4.0% France 14.2% 10.7% Italy Canada Precision 6.7% Machine Chemical Electric Appliances 5.3% 0.4% Wholesale Other Wholesale Wholesale 6.2% 3.1% 4.0% 4.0%

Asia Other 21.3% North America 25.3% Manufacturing 32.0% 39.1% Wholesale Europe Related with 43.6% Manufacturing 35.6% Manufacturing Total number: Total number: related 225 225 companies’ share Source: The Foreign Investor 2012, Toyo Keizai Inc. Source: The Foreign Investor 2012, Toyo Keizai Inc. 74.7% Firms* Foreign-affiliated firms: With foreign capital of 20% or over (including branch offices) Firms* Foreign-affiliated firms: With foreign capital of 20% or over (including branch offices)

INVEST KANSAI Kansai’s Advantage: Excellence of business and living environment

Lower business costs than Tokyo Osaka/Kansai’s Cost Advantages

Preferential policies for [Rental Fee] 2012 Osaka Tokyo: 100 setup business in Kansai Office 4) 68 32 Subsidies - No limit on the upper limit 1) House 5) 65 35 - Subsidy for foreign affiliated company 2) etc. Warehouse 4) 75 25 Taxation and Loan - Additional preferential treatment Osaka Tokyo: 100 in Special Zones 3) [Land Price] 2012

Commercial 6) 31 69

Residential 6) 48 52

Industrial 6) 38 62

[Labor cost] 2012 OsakaTokyo: 100

Average 83 17 Salary 7)

Comparative indicators Cost advantage ratio (Tokyo used as the base score of 100) Note: Data of Osaka is used as a representative of Kansai region. Sources: 1) Hyogo-Kobe investment Support Center 2) Osaka Prefectural Government 3) each local government website 4) CBRE in JAPAN 5) Ministry of Internal Affairs and Communications “Annual report on rental price survey” 6) Ministry of Internal Affairs and Communications “ Statistical Handbook of Japan 7) Ministry of Health, Labor and Welfare “ Monthly Labor Survey 2012”

Safe and comfortable housing area with expatriates from 170 countries 8)

Hospital/Clinics correspondence Osaka : Asia’s No1 livable city 9) to foreign languages 14) Kobe : Asia’s No1 Eco-City 10) Kyoto : Asia’s most famous tourist destination 11)

Japan: the most peaceful country in Asia, and the third in the world 12)

International business communities, Clubs and Associates for expatriates 15) 5 World Heritage sites in Kansai 18)

18 Consulates 16)

Birthplace of various Restaurants serving cuisines of traditional cultures 19) Excellent educational facilities over 30 countries 17) - plays - Tea ceremony for expatriates (Osaka, Kobe, Kyoto) 13) - theater - Flower Arrangement

Sources:8) Immigration Bureau, Ministry of Justice 9) Economist Intelligence Unit, 2009 10) Mercer Quality of Living Survey, 2010 11) Wanderlust, TripAdvisor, 2009 12) Economist Intelligence Unit, 2010 Global Peace Index 13) Local governments in Kansai ,Osaka International House Foundation 14) Local governments in Kansai 15)19) The Foundation for Kansai Region Promotion (Kansai Window) 16) Ministry of Foreign Affairs 17) Survey by Kobe Shinbun Jigyosha 18) National Federation of UNESCO Association in Japan (Buddhist Monuments in the Horyu-ji Area, -jo [caslte] , Historic Monuments of Ancient Kyoto, Historic Monuments of Ancient Nara,and Sacred Sites and Pilgrimage Routes in the Kii Mountains Range)

INVEST KANSAI Current Trade Scale in Kansai Kansai’s Advantages: Gateway to Asia

20% Electronic equipment including semiconductors and general machinery accounts for more than 50%. Export of Japan's Also, export rate to Asia countries is high. Trade base that targets for Asia countries holds important position. total scale

Value of Exports by Commodity (Kansai) Value of Exports by Country (Kansai)

Nonferrous metal Other Electric 1.9% 17.9% appliances EU Metal products 27.5% 10.0% China 1.9% 23.5% U.S. Machinery Scientific and Chemical 11.6% optical instruments products 23.0% 4.6% 12.6% Transportation equipment Asia Other 4.9% Total value of exports 44.3% 10.6% Steel 5.8% $168 billion

Value of Exports by Commodity (Japan) Value of Exports by Country (Japan)

Nonferrous metal Electric 2.0% Other appliances 16.1% 17.9% Metal products EU 1.6% Machinery 10.2% China 18.1% U.S. Scientific and Transportation 20.1% 17.6% optical instruments equipment Chemical 3.3% 23.5% products 10.0% Asia Steel 36.6% Other 5.5% Total value of exports 17.6% $788 billion

20% Reflects the status of manufacturing industry cluster, high proportion of mineral fuels and electronic appliances. Import of Japan's total scale Import from Asia countries (including China) accounts for more than 50% of all imported commodities.

Value of Imports by Commodity (Kansai) Value of Imports by Country (Kansai)

Mineral fuels Other 23.6% EU 25.9% 10.1% China Foodstuffs Electric appliances 31.7% U.S. 9.2% Chemical13.8% 6.7% Machinery products Clothing and accessories 7.6% 12.3% Asia 7.6% 23.9% Other Total value of imports 27.6% $167 billion

Value of Imports by Commodity (Japan) Value of Imports by Country (Japan)

Other Mineral fuels 26.5% 34.1% EU 9.4% China Foodstuffs 21.3% U.S. Electric appliances 8.6% Clothing and 8.3% Chemical 11.9% accessories products Asia 3.8% 8.4% 23.0% Other Machinery Total value of imports 37.7% 7.1% $867 billion

Source: Asia Pacific Institute of Research “Whitepaper of Kansai Economy 2013”, Japan Customs, Osaka Customs “Trade Statistics” (US$1=80.82yen) INVEST KANSAI Kansai’s Advantage: Sophisticated Traffic and Logistic Infrastructure

Access to the world Sophisticated International seaway infrastructure Port Sophisticated air route network - Serving as North Gate of Kansai from Kansai to the world with regular service to China, , . Osaka International Airport - The port can accept 50,000-ton container ships. ITAMI/ITM Hanshin Port Kansai International Airport (Port of Osaka, etc) KOBE/UKB - Kansai International Airport is - Japan's deepest earthquake-resistant the only 24-hour Operating container berth (with a water depth International Logistics Hub in of 16m) allows the harbor to accept Japan. KOBE PORT OSAKA PORT 100,000-ton class container ships. - Vast network to and from China - Hanshin Port was designated as - Rapidly emerging as major LCC KANSAI/KIX SAKAI-SEMBOKU international strategic in network hub. PORT Japan(Aug. 2010). Flight Schedule Improving the cargo integrating Airline companies 62 functions by reinforcing the distribution network incorporating Flight to overseas cities 73 the coastal shipping feeder,railroads The weekly number of flights and trucks 850 The comparative volume of domestic cargo Reducing port costs by privatizing 2011 the port management company Service improvement for shippers by promoting 24-hour operation of 57 Hanshin terminal gates 131 Securing a large-scale terminal with Source:Kansai Bureau of Economy, Trade and Industry depth of 18 m, etc. New Kansai International Airport Co., Ltd, Tokyo area(*) Ministry of Land, Infrastructure, Transport and Tourism 165

(Unit: million Freight-ton) (*)Tokyo area (Tokyo, , Kawasaki, Chiba)

Domestic Access Kansai has a well-developed transportation network in terms of flight, train and motorway systems.

Air Shinkansen Highway

1hr50min

1hr 4hr 2hr30min Tokyo Nagoya Nagoya Tokyo Osaka Osaka Tokyo Osaka Fukuoka 2hr 1hr 50min Fukuoka 6hr 2hr30min 7hr30min

INVEST KANSAI INVEST Promotion Activities in Kansai

Japan External Trade Organization (JETRO) provides comprehensive consulting services and direct assistance for foreign companies seeking to invest in the Kansai region

Service Menu Foreign

- Free of charge (up to 50 business days) companies Consulting - Convenient location

Temporary - Provision of concierge support by experts Office Space INVEST KANSAI

JETRO Osaka/Kobe Office (KANSAI ONE WINDOW) Properties

- Recruiting assistance service Human - Assistance in finding appropriate Resources Networking office property

JETRO IBSC Support *IBSC: Invest Japan Business Support Center Consulting Facilities Free individual consultation for your company Temporary office space offered free of charge A vast network of experienced experts in both public/private Office space (Free for 50 business days) sectors can provide a wide range of support including advice Desk, chair, telephone, fax and internet connection available. on entering markets, analyses of startup costs, assistance on Ideally located for business in the center of metropolitan Osaka. procedures for new businesses, finding office space and Meeting room (Free) staffing. The conference rooms can be used for business meetings, negotiations, etc. JETRO can also put you in contact with public authorities Business library in Osaka (Free) (Invest Japan office) and local governments for matters The adjoining business library can be used to view information concerning laws on market entry, regulations or permit on investing in Japan or to collect information on business in the procedures. online database.

Wide-range of Network

Kansai Bureau of Kansai Economic Chambers of Local Governments METI Federation Commerce and Industry - Incentive information - Regulation related matters - Network with local companies, - Local Network with small and - Industrial area information universities, and related medium companies, schools research institutions and related research institutions members

(Osaka, Kyoto, Nara, Shiga, Wakayama) (Hyogo)

Invest Japan Business Support Center (IBSC) Invest Japan Business Support Center (IBSC) For 29F Osaka Kokusai BLDG., 3-13 Azuchimachi 2-Chome, Kobe C.I.T. Center Bldg. 4F, 5-1-14 Hamabe-dori, Inquiries Chuo-ku, Osaka 541-0052 Japan Chuo-ku, Kobe, Hyogo 651-6591 Japan TEL: +81-6-4705-8660 TEL: +81-78-252-7505 FAX: +81-6-4705-8650 E-Mail: [email protected] FAX: +81-78-232-3439 E-Mail: [email protected] Website: http://www.jetro.go.jp/jetro/japan/osaka/ Website: http://www.jetro.go.jp/jetro/japan/kobe/

INVEST KANSAI Success Stories of JETRO, in supporting foreign companies to setup business in Kansai

Successful Story

Tata Consultancy Services Japan Limited, Osaka Office YIN JAPAN Co.,LTD (current AGMS Corporation)

A core organization of 's largest conglomerate, the Tata Group Fast growing Chinese automated cutting machine manufacturer, One of the largest IT consulting companies in Asia set-up production base in Japan for global penetration Profile Profile Established in: June, 2010 Established in: Factory (current Technical Center), May, 2012 Business in Japan: IT consulting, systems-development and maintenance Business in Japan: Manufacturing automated cutting machine, sales to domestic and international market Why Kansai? Why Kansai? 1.Presence of numerous manufacturing and pharmaceutical companies 1. Potential customers 2.Accumulation of globally operating enterprises 2. Excellent environment for production (current Technical Center) 3. Pool of experienced human resources JETRO Support JETRO Support - Free temporary office space - Information on office spaces and - Information on real estate (factory and office) lifestyles in Kansai cooperating with local government agency - Assistance in holding press - Business consulting for conference developing oversea business - Information on subsidies in Kansai from local governments Nara factory (current Technical Center)

David Austin Roses K.K. BBK Worldwide - Osaka, G.K.

Sells approximately 200 varieties of English roses Global leader in patient recruitment for clinical trials in over 45 countries Profile Profile Established in: November, 2007 Established in: February, 2009 Business in Japan: Import and distribution of English roses Business in Japan: Marketing consultancy in patient recruitment for clinical trials Why Kansai? Why Kansai? 1. Had distribution channel in Kansai via former agent 2. Strong support by the local government 1.Active industry-university joint research in pharmaceutical development 2.Most suitable base for business in Asia-Pacific region JETRO Support 3.Accumulation of head offices of medical device manufacturers - Consultation on registration, tax, JETRO Support and visa preparation - Cooperation on English-style - Free temporary office space garden establishment plan along - Assistance with company with Osaka Prefectural registration and visa preparation Government - Arrangement of business meetings - Help with press releases

HBC-radiomatic Japan K.K. KP JAPAN Co.,LTD A developer and manufacturer of radio control systems for industrial Large Korean renewable energy companies, cranes with products available in more than 60 countries worldwide. from manufacturing to business development Profile Profile Established in: February , 2009 Established in : Jan, 2013 Business in Japan: Sales of radio control systems for industrial Business in Japan: Solar power and other related business cranes Why Kansai? Why Kansai? 1. Headquarter in West Japan where is well fit for solar power generation 1. Attracted to the Kansai market as it provides large-scale potential customers 2. Potential customers 2. Lower costs compared with those in Tokyo JETRO Support JETRO Support - Company registration supported by - Free temporary office space an introduced specialist - Company registration supported by - Information on real estate (office an introduced specialist location) and on-site guidance - Support for establishing an office, such as - Help open bank account introduction to a human resources consulting - Accompany to handle various firm and help with finding office space Consulate General issues

INVEST KANSAI

Tottori

Kyoto Shiga Hyogo

Mie Osaka

Nara

Tokushima Wakayama