Introduction of KANSAI, JAPAN KYOTO OSAKA HYOGO WAKAYAMA NARA SHIGA INVEST KANSAI Introduction Profile of KANSAI, JAPAN Kansai area Fukui Kobe Tokyo Tottori Kansai Kyoto Shiga Hyogo Osaka Mie Osaka Kyoto Nara Tokushima Wakayama ©Osaka Convention & Tourism Bureau With a population exceeding 20 million and an economy of $800 billion, the Kansai region plays a leading role in western Japan. Osaka is center of the region, a vast metropolitan area second only to Tokyo in scale. Three metropolises, located close to one another 30 minutes by train from Osaka to Kyoto, and to Kobe. Domestic Comparison International Comparison Compare to Capital economic zone (Tokyo) Comparison of economic scale (Asia Pacific Region) Kansai Tokyo (as percentage of Japan) (as percentage of Japan) Australia Area (km2) 27,095 7.2% 13,370 3.5% Korea Population (1,000) 20,845 16.3% 35,704 28.0% Kansai Gross Product of 879 15.6% 1,823 32.3% region (GPR) (US$billion) Indonesia (Comparison of Manufacturing) Taiwan Kansai Tokyo (as percentage of Japan) (as percentage of Japan) Thailand Manufacturing Singapore output (US$billion) 568 15.9% 621 17.4% Hong Kong Employment in manufacturing (1,000) 1,196 16.1% 1,231 16.6% New Zealand Number of new factory setup (*) 181 14.8% 87 7.1% 0 500 1000 1500 (Unit: US$ billion) Number of manufacturers in Kansai is equivalent to Tokyo which is twice 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”, Cabinet Office“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, Chiba, Saitama) 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 human 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 Hanshin 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 Panasonic Corporation Sharp Corporation 2 30km AIS Company 1 Katsuragi Plant 2 Sakai Plant 1 Sankyo Energy Nandan 2 Tokushima 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 Maxell, Ltd. 5 Kyoto Plant KYOCERA 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 <Leading Projects> Creation of world’s leading Battery Cluster New Generation Energy System / Laboratory Zone Knowledge Capital Osaka Bay 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 Port 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 Kansai Science City 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 Osaka Prefecture 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.