iU vs. Minerva Schools

 ■iU vs. Minerva Schools

Hideki Yamamoto is the author of “Minerva Schools at KGI: The Most Desired Destination for the Global Elite.”

This is the oft-discussed punk university that students enroll in instead of universities like Harvard and Stanford.

I am observing it as a benchmark for iU, which aims to open in 2020.

Although it shares a lot of similarities with iU, there are also points where the two differ.

Let’s look at the similarities first

1. All classes are conducted online at Minerva. Lectures are prohibited, as the model involves flipped classrooms and completely active learning. There are few students in each class.

I also want to do this for iU. Knowledge can be attained through the smartphone. Real classes involve debate and creation. It will be completely different from conventional universities.

2. Students attain skills sought by companies and society.

iU will be the same way. The needs of the market will be reflected in what the university teaches in order to avoid any discrepancies with what companies seek.

3. There is no tenure (lifelong employment).

iU will do the same. Tenure removes competitiveness and incentives for growth for faculty.

Instead, I will emphasize a design that encourages proactively entering a competitive environment.

4. There is cooperation with companies and an emphasis on internships.

iU will take this a step further and become a university “that is created with companies” and requires internships. Its concept itself is being designed with tens of companies, and cooperation with companies serves as the axis for education.

Initially, the ideas of Ben Nelson, the founder of Minerva Schools, were rejected by investors. Following that, his ideas began to materialize through approval from Peter Thiel, Larry Summers, and other major players. iU has been supported by numerous companies since its inception, and I believe that it matches the needs of companies.

5. The tuition is inexpensive.

Tuition for iU will be at a similar level (roughly 1.5 million yen each year) as Minerva Schools. It is a fraction of the tuition for Ivy League schools in the United States. Moreover, iU will adopt a framework that allows students to earn their school expenses and strive to enable an actual burden of 0 or even opportunities to earn income that is higher than the school expenses

Next, I would like to list the differences between Minerva Schools and iU

1. Minerva professes to be a “top elite university.” Faculty members also come from top-level academic institutions

Instead of having iU aim for this, I would like to produce professionals and innovators who thrive in the industrial world. Therefore, a majority of faculty members will be professionals from the industrial world.

2. By also setting up the “Minerva Institute,” there is also an effort put into research. They carry out education and research.

Although iU will carry out many experimental studies connecting industry and academia, it is not a research institute. Instead, I will also set up “i Co., Ltd.,” which supports entrepreneurship by students, as all faculty members and students develop businesses.

3. Minerva does not have a campus.

This is good. Based on regulations in Japan, iU will have campuses. Therefore, I will utilize the campuses to their fullest extent. The main campus will be in Sumida, while there will also be a campus for entrepreneurship in Takeshiba, Minato. This will be an educational district where various experiments and demonstrations will take place. I will build a rich space for connecting industry and academia

The idea that Minerva allows students to learn in 7 cities across the world is appealing. There are facilities in Seoul and Taipei in Asia. All students reside in residence halls. I would like to take on the challenge of accomplishing this goal for iU also. I would like to prepare a Global Campus Passport that allows students to come and go by cooperating with foreign universities

Meanwhile, iU will offer all students the opportunity to become an entrepreneur. I will prepare an environment in which students will take on challenges without the fear of failure, including social entrepreneurship. This does not exist in Minerva, and I would like to produce results that make sense.

I would also like to try out numerous systems that do not exist anywhere else in the world.

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“The Internet and Freedom for Us” Revisited

 ■“The Internet and Freedom for Us” Revisited

I wrote a book called “The Internet and Freedom for Us” around 1996.

At the time, the old order was firmly in place. A triangular hierarchy existed in each of the fields of government, major corporations, mass media, and universities.

Japan still had the strength to be considered one of the 3 powers, along with the United States and Europe. National borders were also unyielding.

I tried to capture the internet, which appeared as something that could upend this situation, in its proper scale.

It appeared as a dazzling light.

Individuals gain power. Expressions and comments can be made freely, forming mobile TV stations for a hundred million people. Businesses would also flourish. The order of everything would be turned on its head. It is punk.

I want “myself” to be free.

However, it is too destructive. It failed to measure the distance between countries. For this reason, there were strong opinions seeking for control of the internet, although there were opinions in support of the internet. With that said, it is futile to oppose the inevitability of technology.

I want the “internet” to be free

I wrote about these 2 points

20 years later, there are both things I was able to anticipate and things I could not anticipate.

Matters (generally) progressed as I imagined.

In ’99, i-mode and broadband appeared, giving individuals and organizations more power through mobile devices and videos. The iPhone was introduced in 2008 and social networking services became popular, giving more power.

Negroponte from MIT advocated from the “union of bits and atoms,” and advancement to atoms (real space) and bits (virtual space) had been completed.

Business became digital-driven.

3/4 of music sales in the United States have become streaming, and IT companies (Apple, Amazon, Microsoft, Alibaba, and Google) make up the top 5 for aggregate market value. Banks have transitioned to financial technology, and the digital world is the key battlefield for military affairs.

Individuals have been given power, mass media has become relative, and hierarchies have collapsed.

The Mubarak regime was toppled by the united masses, Mr. Trump is opposing the mass media on Twitter, China controls its internet, and the IS recruits young foreigners on the internet.

GAFA has obtained global power that surpasses that of an ordinary nation.

The status of modern nations and companies has become relative.

The firewall in China is not a special case, as freedom on the internet is starting to become regulated.

The EU seeks to tax GAFA and has brought in GDPR (protection of personal information) and the link tax (copyrights).

Regarding piracy, Japan is troubled by how to secure freedom regarding both the protection of intellectual property and secrecy of communication.

I had generally envisioned matters to this point.

Although things were hazy, well-informed people at the time felt that the internet was a wave with this much ability to destroy.

There were 2 points that I could not envision.

First is that the evolution of technology would accelerate

When I participated in the MIT Media Lab in ’98, it felt as if AI and IoT were on the verge of being introduced, but the steps of popularizing the internet and smartization were needed before dissemination, requiring 20 years.

However, the transition from the internet to AI/IoT was rapid once true dissemination became viable

There is time until the singularity, which will divide the history of humankind into before and after the singularity, but it is surprising that big data would become a theme with utmost importance and data-driven society would be achieved with such speed.

As the land and natural resources are the driving force for agricultural and industrial society, it was believed that this would transition to “knowledge” for information society.

This would transition to “data” for the fourth industrial revolution and Society 5.0. There would be a struggle for these resources

Blockchain is a product of IT, but it will inevitably absorb its producer.

As ultra-dispersion advances, there is a possibility that all service organizations that stand between people, including shops, banks, schools, and nations, may lose their power. I feel a similar force of destruction as I did regarding the internet around ‘98.

I had not imagined the introduction of technology like this

The other is the significance of the impact that the internet has had on capitalism

The internet revitalizes industry and enhances capitalism.

I had the optimistic view that the two ideologies, together with democracy, that have been nurtured in the modern age could be matured.

However, there is a possibility that the internet will dispel “capitalism.”

This is not because the internet will widen disparities and rebel against the uniform pressure of democracy

The internet reduces the cost of goods and services, offers many services for free, improves convenience for people, and enriches life. The sharing economy enriches lifestyles even more. Economic activity that cannot be counted monetarily as production or supply is increasing.

There is a chance that GDP will decline rather than simply stagnate. However, utility for users increases satisfaction.

The economy cannot be portrayed using GDP, which is calculated using producer surplus, and consumer surplus has become an important index. There can be happiness without economic growth.

Capitalism is facing a need for revision.

It is still not clear where it is headed, but I believe that it is unlikely for capitalism to die, as I envision the birth of a new type of capitalism, in which digital information is the source for value creation.

I will return to the topic at hand.

Has the internet made us free?

“I” have become quite free. However, others have absorbed my data, I am being monitored by IoT, and as I gain more freedom for transmission, I become managed more. Will it reach a happy equilibrium at some point?

While the “internet” advances continuously and increases in flexibility, as AI and blockchain have also come on board, it is no longer a free paradise, as nations and regions have strengthened their control over it.

As capitalism and democracy loosen, and the pressure for nationalism intensifies, the internet cannot be uninvolved.

The internet is still in its dawn, as it has only been disseminated for roughly 20 years.

We cannot say that it has matured.

Moreover, humankind, the users of the internet, has just entered digital society and has yet to establish its manners.

Perhaps a conclusion may just come insight once the generation has completely shifted after another 20 or so years.

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“The Internet and Freedom” Q&A

 ■“The Internet and Freedom” Q&A

I did an interview about “The Internet and Freedom for Us,” the book that I wrote 24 years ago. I would like to list my responses.

○During the dawn of the internet, what kind of issues occurred and what kind of regulations were in place?

Around the time that I wrote this book, which was the mid ’90s when the internet was starting to become popularized, I became the first person in charge of the internet in the Japanese government and made it clear that my role was to promote the internet, while focusing on the fact that it will empower individuals.

However, as the awareness that the internet will make life convenient and enrich people had not been solidified yet, the government did not have a clear stance yet, given that there was a possibility that the communication industry, with a focus on telephones, could receive a major blow

Because the government was concerned with how to prepare the foundation for these communication networks (such as optical fiber) without any disparities and how to deal with the hegemony of the United States regarding the internet, there was not much discussion about theories for regulating the internet, information, and content

○What are symbolic events relating to “The Internet and Freedom?

・Expression: Everybody nurtured Hatsune Miku online, as she grew into a global star. Being a YouTuber became an admired occupation.

・Politics: In 2011, the Mubarak regime was toppled by the united masses, and Mr. Trump is opposing the mass media on Twitter.

・Nations: GAFA has obtained global power that surpasses that of an ordinary nation. On the other hand, China has set up a firewall, and the EU has brought in GDPR and the link tax.

・Regarding piracy, Japan is troubled by how to secure freedom regarding both the protection of intellectual property and secrecy of communication.

○Regulation of piracy, crackdowns on the dark web, and monopolies by GAFA and other major corporations are taking place. How do you feel about these regulations and monopolies?

Piracy, illegal information, and unfair competition by major companies are issues from real society that are also appearing in the virtual space on the internet.

Rather, I believe that issues that were somewhat under control in real society have become radicalized and more difficult to resolve through the popularization of the internet. Either way, the period during which the internet was a special, free paradise has come to an end as a result of popularization.

○What are some incidents that symbolize the current issues of freedom and regulations on the internet?

I believe this would be pirated sites above all.

While piracy infringes upon “property rights” related to intellectual property and copyrights, the ides of blocking, which is being discussed by the Japanese government through a countermeasure council, infringes upon “secrecy of communication.” They oppose each other on both sides of the freedom guaranteed by the Law of Japan.

Intellectual property and IT, which are 2 fields that Japan depends on as we face information society, must be contrasted for adjustments to be made. The question is how Japan, which is the home of manga and anime, will build out a model to resolve pirated sites, which are the unexpected product of IT.

However, it could be that this situation cannot be solved properly through a plan to “adjust” both sides. Perhaps the approach is to “build up” an area where intellectual property and IT can coexist, each developing their freedom.

This is a troublesome issue that appeared 20 years into the history of the internet, and issues like this will continue to pop up. I believe that a stance to bring together the wisdom to confront these issues is being sought.

○In what direction will the freedom and restriction of the internet advance from here on out

Following the 10 years of its first phase with computers, mobile phones, and content and the 10 years of its second phase with smartphones and social networking services, the internet is entering its third phase with AI, IoT, and blockchain. There have been big waves every 10 years, and issues have grown.

Not only have we reached our goals, big waves will likely continue to come repeatedly. Nations, companies, and individuals are all internet users, and efforts by users to build information society have just begun.

It took 3 centuries from the invention of the printing press by Gutenberg for people to become enlightened; go through religious, civic, and industrial revolutions; and enter the modern age. The IT revolution may also require this much time to change the world. I believe that we must be ready to take the time for users to build up society.

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What Is “Digital Capitalism?” - Part 2

 ■What Is “Digital Capitalism?” - Part 2

The first point was

1. The significance of consumer surplus and total surplus

Now I would like to touch on

2. Capitalism will be modified to become a data-driven, knowledge-producing society

2. The Modification of Capitalism

This book explains that the sharing economy can advance the conversion of goods into services, reduce producer surplus, and shrink the economy and that it tends to inhibit employment and investment.

I agree with this sentiment. It would be dangerous to capture the sharing economy within the context of growth strategies, and I believe that it should be promoted from the perspective of enhancing welfare and consumer surplus.

All activities in the economies represented by the sharing economy are online- and data-driven.

This means that society based on “labor productivity,” in which the input for added value is labor, will turn into a society based on “knowledge productivity,” in which the input for added value is data.

This book envisions this form of “digital capitalism.”

Currently, there are 8 billion IoT devices working together, but this number will increase by 50 billion by 2020, and the amount of information being produced in 1 year will be produced in 1 hour.

Naturally, this will change the state of socioeconomics fundamentally.

The socioeconomics with AI tied in will most likely be drastically modified also.

This book imagines that this technology-driven future will have various forms depending on the country and region.

This is a view in which the economy, society, and history are local.

I have no doubt that Japan will consume technology and construct society in its own way. It has been this way in the past.

What concerns me is the explanation that the reasons behind the current long-term stagnation across the globe can be traced to the lack of innovation.

The reasoning is that innovation in the 21st century is relatively small compared to inventions in the 20th century, such as electricity, airplanes, automobiles, and household electronics, and there is less low-hanging fruit compared to the past when there was uncolonized land and uneducated children.

I believe that opinion will be divided depending on how substantial the impact of IT and AI is assessed to be.

I believe that innovation in the 21st century has just gotten started, and its effects will begin to be seen as it is consumed. Moving forward, humankind will change its make-up and reach digital capitalism as covered in this book

This book presents 3 future outcomes, which are 1. capitalism will end, 2. industrial capitalism will reach a higher level (industry 4.0), and 3. a new type of capitalism, in which digital information is the source of value creation, will be born, and supports hypothesis 3.

I feel the same way, or rather that it would be interesting for that to happen. I am not certain of this.

However, I thought that the analysis that the “forced marriage” between capitalism, for which disparity is an essential quality, and democracy, which is based on equality, will be dissolved is rough. The fact that globalization, which is the frame for capitalism in the United States and the United Kingdom, has been denied by democracy points to the fact that we have entered a situation that requires a new agreement between capitalism and politics.

This book suggests that digital factors can serve as the mediator that finds balance between capitalism and democracy.

Digital technologies that modify capitalism will also modify the relationship between politics and the public, starting with socialization. It would be beneficial for this to lead to harmony between all parties.

However, this cannot be seen tangibly at the moment and is nothing more than a desire.

While analyzing the economy, this book indicates that humankind has yet to fully grasp the effect of the advancement and maturation of digitalization, which has a historically significant impact.

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What Is “Digital Capitalism?” - Part 1

 ■What Is “Digital Capitalism?” - Part 1

I read a book called “Digital Capitalism” put forth by Nomura Research Institute (NRI).

The directionality is off for policies because conventional economic indices have become outdated due to changes in long-term structures caused by digitalization.

This book takes what has been in my mind without being able to be expressed successfully for over 10 years and profoundly describes it in a straightforward manner based on theories and data.

The book explains the following 2 points.

1. The significance of consumer surplus and total surplus

2. Capitalism will be modified to become a data-driven, knowledge-producing society

1. Consumer Surplus

This book presents findings that consumers have been feeling that their living standards have improved from around 2010. While convenience on the internet has improved, prices of objects, distribution margins, and costs of goods and services have decreased. This is a subjective observation that the quality of life has improved despite the fact that GDP has stagnated, and wages are trending down.

Consumer surplus is increasing, and producer surplus is declining.

Consumer surplus is the feeling of consumers that they are getting a good deal, and producer surplus is the comparison of price and cost.

This book explains that “total surplus” GDS, which is the sum of these values, is true added value and should become a new index.

Search costs and costs to reproduce content become 0. Free digital services only produce consumer surplus. This oppresses producer surplus.

Then, producer surplus is calculated as an objective value and is reflected in GDP, while consumer surplus is subjective and not reflected in GDP. Thus, GDP has reached its limit as an index.

This book estimates that Spotify has a consumer surplus of 2 trillion yen and a producer surplus of 60 billion yen, yielding a consumer/producer ratio of 33 times. This is an incredible figure, because the ratio is less than 1 for conventional companies. Professor Brynjolfsson at MIT Sloan estimates consumer surplus in the United States as 78 trillion yen, and NRI applies this to Japan to yield 42 trillion yen.

Regarding this topic, Professor Brynjolfsson discusses the “limits of GDP” in his book, “The Second Machine Age.”

He raises the following 4 points.

1) Online music sales fell by 40% in 4 years and have disappeared from economic statistics, but quality has increased, and people now listen to a lot of high-quality music. How can the consumer surplus produced by goods and services be measured?

2) Produced value is 0 if the price is 0, but that does not equate to a lack of value. The contentment in life resulting in being able to make searches and transactions on the internet for free, as well as the benefit of a shared economy, are not reflected in GDP. The information industry only comprises 4% of GDP. This has not changed from the late ’80s. “The value produced by IT is not reflected.”

3) How should the resource of time be measured? The amount of time people in the United States spend on the internet doubled in 10 years. The value of time is applied toward the internet. In 2012, the time spent on Facebook was 10 times the man-hours needed to build the Panama Canal. This is not counted toward total GDP.

4) Future production depends on the 4 intangible capital goods of intellectual property, organizational capital, UGC, and human capital. However, these are ignored in total GDP. Therefore, new indices are being considered, such as the Human Development Index by the United Nations Development Programme and the OECD project.

10 years ago, I made objections to the fact that the Japanese government set the purpose of content policy as the “expansion of industry scale.” I believed the purpose should be the expansion of the production and consumption of content. Subsequently, the scale of the content industry in Japan has shrunk, while the amount of content shared by everybody has increased by a factor of dozens. However, this index has not been utilized.

On this subject, the white paper on telecommunications by the Ministry of Public Management, Home Affairs, Posts, and Telecommunications has attempted to analyze the consumer surplus in ICT.

The white paper stated that “although the value of ICT is granted to both companies and consumers, this value is ultimately calculated using existing statistics, such as increased GDP, for companies, while there is a (non-monetary) value for customers that is not captured in existing statistics” and analyzed the topics of ①consumer surplus, ②the economy of time, and ③information assets (reviews, etc.). 

①The total annual consumer surplus, using services providing music and video as an example, can be estimated at roughly 109.7 billion yen.

②In terms of the economy of time, online shopping saves roughly 40 minutes to 1 hour each time.

③Over 80% of users have experience making decisions for online purchases based on reviews.

Although I feel that consumer surplus is even greater, I acknowledge that this attempt was made. I believe that deepening this research and improving precision would be a global contribution. I strongly recommended this attempt as a member of the editorial board for the white paper.

The opinion that consumer surplus and total surplus should be emphasized instead of GDP and economic growth is only presented in very rare instances, and I believe that epochal for it to be presented openly by an influential sector as it was in this book.

Therefore, I look forward to thorough research to be advanced internationally.

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15 Years for the Intellectual Property Strategy Headquarters

 ■15 Years for the Intellectual Property Strategy Headquarters

I would like to share notes from the talk I gave as part of a project by “Jurist” magazine.

○Recent Developments for the Intellectual Property Strategy Headquarters

・The Ministry of Economy, Trade, and Industry; the Agency for Cultural Affairs; and the Ministry of Public Management, Home Affairs, Posts, and Telecommunications had been central for the content and Cool Japan policies, and there had been a rather passive stance being shown, but nearly 10 ministries and agencies, including the Ministry of Land, Infrastructure, Transport, and Tourism; the Ministry of Foreign Affairs; and the Ministry of Agriculture, Forestry, and Fisheries, are now part of the discussions, and each takes action proactively and progressively.

・The fields of content and industry had been separated, but there is a discussion to consolidate the fields, as the handling of data is the key battlefield during the Fourth Industrial Revolution involving AI.

・Measures to combat piracy and computerize education are representative actions, but the connection between intellectual property policy and IT policy is gaining importance.

○Results and Evaluation of Intellectual Property Strategies

・In the past few years, systematic adaptation has also been advanced in the field of content, such as through the revision of the Copyright Act and systematic implementation of digital textbooks.

・Support measures, such as the Cool Japan system, have been enhanced, and policy tools have been prepared. Results of overseas expansion of content are being demonstrated through statistics.

・Especially in the field of content, the main task was to adapt to significant changes to the environment as a result of “digitalization” through computers and the internet since roughly 20 years ago, “smartization” through smartphones and social media since 10 years ago, and recent “super-smartization” through AI and IoT.

・The last few decades involved catching up with the United States, which was the front-runner, but the environment has become more difficult, with China also emerging as a leader.

○Intellectual Property Strategies for Companies

・Intellectual property strategies serve as the core of management strategy for companies, such as those in the content industry, for whom intellectual property is the foundation of their corporate resources. However, it is doubtful whether intellectual property strategies are put first at general companies.

・It is thought that the perception depends on how much management values intellectual property strategies compared to other elements such as manufacturing, sales, finance, and human resources.

・This also applies to politics and the government. It cannot be said that intellectual property is treated with as much significance as agriculture and manufacturing, such as during TPP negotiations. Perhaps the priorities and awareness of how Japan will continue to eat in the future have not been shared with the entire country.

○Recent Changes to the Intellectual Property Environment

・Interest in intellectual property has risen, and recognition of its importance has been solidified. People are also aware that Japan has been stagnant due to the handling of patents and copyrights. Therefore, the importance of all professionals acquiring skills related to intellectual property, rather than producing specialists, is gaining importance.

・Discussions focused on the domestic market have shifted their focus to overseas development. Considering economic stagnation in the recent past and the decreasing birth rate and aging population moving forward, intellectual property strategies aimed at the foreign market has become a central issue. The field of content has gone through another cycle, and inbound strategies linked to tourism and food have become the main focus.

○Content Strategies

・The Intellectual Property Strategy Headquarters has promoted the systematic implementation of digital textbooks and the computerization of education as content policies. It is a positive development that the systematic implementation of digital textbooks and the establishment of related copyright laws were realized by the previous Diet.

・This points to the fact that content is being viewed from a wider perspective that includes cultural and social policy including education, in addition to industrial policy. In addition, this project is carried out in conjunction with the establishment of IT infrastructure at schools and requires coordination between intellectual property policy and IT policy.

・Countermeasures against pirated sites have been a recent point of focus, and the appropriateness of a method called blocking is attracting attention from society. In this instance, the intellectual property policy related to copyrights is clashing with the IT policy related to the secrecy of communication, and intellectual property policy cannot produce a solution on its own. Instances that require cooperation and adjustment with IT policy and other policy fields are increasing.

○Tasks for the Intellectual Property Strategy Headquarters

・3 tasks can be envisioned.

・As illustrated by countermeasures against piracy, the linkage and merger of intellectual property policy and IT policy are important. This also suggests the need to reorganize ministries and agencies.

・In 2020, 50 years would have passed since the establishment of the Copyright Act. It has somehow gotten by to this point, but it is too difficult to handle, considering that it is a system that even elementary school students should know. This may be an opportunity to re-examine it fundamentally.

・Through the above, it is important to increase the priority of intellectual property policy. By all means, I would like to move forward with the intellectual property based nation that Mr. Arai advocated for.

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Will Esports Become Serious?

 ■Will Esports Become Serious?

Esports were a demonstration sport at the Asian Games in Jakarta.

Because Japan won the Gold Medal for “Pro Evolution Soccer,” the Japanese flag was raised at the center while the Japanese national anthem was played.

It will become an official sport at the 2022 Asian Games in Hangzhou.

I took the podium at the “Gekito Esports!” symposium.

First, I would like to share some notes on what I spoke about.

Previously, I had stated that Japan is a developing country in terms of esports and that it faces 2 major issues.

1. Regulation. The Act Against Unjustifiable Premiums and Misleading Information by the Consumer Affairs Agency restricts the prize money for tournaments to a maximum of 100,000 yen. This restriction must be removed.

2. Professionalization. The 3 related organizations must be unified to blaze a trail for international advancement.

In February 2018, these 3 organizations disbanded and unified to form the JeSU, the Japanese Esports Union.

The issue with the regulation was arranged to be cleared up with the Consumer Affairs Agency, making it possible for major tournaments to also be held in Japan. This resulted in an environment in which the industrial world can invest capital and human resources with assurance.

In this instance, I stated that I would like to make 2018 the first year for esports in Japan, and this materialized.

Many companies started to host major tournaments, and the Soccer J.League and Nippon Professional Baseball (NPB) also started their own leagues. Many different industries have gotten involved, exemplified by the serious involvement of Yoshimoto Kogyo.

However, there is a big gap with the advanced nations like the United States.

Looking at efforts at universities alone, over 80 universities in the United States and Canada have esports programs according to the National Association of Collegiate Esports.

The University of Utah offers full scholarships to their LoL team.

The University of California Irvine has set up a 325 m2 gaming arena.

The efforts in South Korea are amazing.

CJ Corporation has set up the largest esports stadium in Seoul Digital Media City (DMC), which the South Korean government and the city of Seoul built together with the industry.

There are games in the 650-seat venue every day, and these games are broadcast on cable TV and through the internet.

This work is handled by the local government operated by the city of Seoul.

The Korea Creative Content Agency (KOCCA), the South Korean government agency for cultural content, created a 1,552 m2 esports pavilion in this building.

It has archives and hands-on experience areas.

Japan has recently listed popularizing esports as an item in the Japanese government’s “Intellectual Property Promotion Plan 2018,” which I was involved in under the guidance of Secretary-General Sumita, but in South Korea, the government is directly involved in the business.

Future tasks are preparing the environment and nurturing human resources.

First is to prepare the environment that will serve as the foundation of the industry.

There is a need to build opportunities by working with the Japan Sports Agency to gain recognition from the JOC to help esports participate in the Olympics as an official sport.

Next is nurturing human resources. People pin their hopes on Keio University, but it would be faster to establish a school.

Therefore, we will start a new university. We will open a university called “iU” specializing in IT business in Tokyo and set up a satellite campus in Takeshiba CiP, and I will serve as the president.

Since iU will be an IT university, I would like it to focus its efforts on esports from the beginning.

I would like to set up a quota for esports admissions, offer scholarships, and nurture professionals and Olympians.

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Launch of the World Otaku Institute!

 ■Launch of the World Otaku Institute!

“The Current State of Research on Otaku Culture and the Necessity for an International Research Institute” was the kickoff event for the World Otaku Institute.

The idea is to create a headquarters for otaku researchers around the world.

It will be established as a hub in the Pop & Tech Special Zone CiP.

It aims to be a city that can only exist in Japan by combining Silicon Valley and Hollywood while being a poppy, fun place where creators, users, gamers, otaku, YouTubers, and cosplayers all gather.

It started off as an idea put forth by Takamasa Sakurai. Mr. Sakurai, who carried out a role equivalent to that of tens of diplomats through his activity to spread pop culture, passed away in an accident on December 4, 2015. The day before that, we agreed on a plan to strengthen global cooperation by nurturing the international otaku community and shook hands. This project carries on this idea.

It will work together with the International Otaku Expo Association (IOEA), which Mr. Sakurai served as the Executive Director for. Through the collaboration between IOEA, which 43 countries and regions and 114 events are members of, and CiP, connections to overseas universities and researchers will be expanded. This will serve as a hub for researchers around the world. Global otaku research should be invigorated.

I explained, “We decided to build a network of leading experts in otaku research and establish a research institute in Takeshiba’s new facility that will be completed in 2020. As I would like it to grow as a research institute that various researchers and fans from the 5 continents enjoy, I ask that all of you please expand this network by all means.”

“I have been involved in the Japanese government’s strategic discussions, and although the importance of this field has started to become recognized over the last 10 years, it has yet to be firmly established and is in a precarious position from which it can be regulated immediately because it is a popular culture that has risen from the bottom. Since each country has its own stance, I would like to aim for the coexistence of various cultures by deepening international comparison and cooperation.”

“Regarding this point, it would be wonderful to build an academic axis in the genre of otaku research and establish an “exit” from an industrial policy perspective. At the same time, pop culture has a close relationship with technology. Digital and smart technologies have greatly impacted culture, which in turn affects technology.”

“At the moment, a great wave of technology is approaching. How will the series of technology including AI, IoT, and blockchain interact with pop culture? 2020 Tokyo will serve as the showcase for this, but how will otaku research be involved with this? 2020 is a pivotal time for cultural research. It is worth keeping an eye on.”

“The World Otaku Institute would like to become a sandbox for researchers around the world, who would be able to play freely, make mountains, and dig in. At the same time, we would like to be creative in attracting research funds and money for business.” Having stated this, I declared without getting approval from anybody, “We will allow researchers to use Takeshiba’s CiP site for free.”

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I hope to trace out a national strategy for AI in education

 ■ I hope to trace out a national strategy for AI in education

The Learning for Tomorrow association held an open working group on AI in Education. The meeting began with general agreement that the world does not yet have anyone who has a birds-eye grasp of AI in education. There was discussion of examples, such as the development of a joint curriculum by Recruit Holdings, Tokyo University, and Tokyo Gakugei University as well as the use of IBM’s Watson Chatbot in classes.

One thing that surprised me was discussion of the fact that China’s State Council has decided that the use of AI in education is a national strategic priority. The Japanese Government’s intellectual property plan promotes the use of AI and harnessing information in education, but this is entirely different from China. Debate on AI in education in Japan is paltry. There is a huge gap in awareness between Japan and China, the latter of which sees this as a national strategic priority.

One opinion raised was that AI will not only change schools, but it will change learning itself, including in the home and the community. This is what the Learning for Tomorrow association is aiming for. I hope to sketch out this vision for the near future. However, some feel that we will be unable to use the information that is required for the foundations of the educational system. While demonstration of blockchain technology is progressing, collecting information remains difficult. This is the first problem to tackle.

Other opinions were

● It is easy to imagine how VR/AR can be used, but there are questions about the need for robots in the classroom.

● It is OK as an interface.

● Japan, which is at the apex of world robotics, should lead the way as a model case. 

● AIBO is a robot, or a buddy, that doesn’t speak. There are robots that stay by one’s side.

● The use of AI and robots in education is already progressing.

● There is no proof that robots should be anthropomorphic. We should collaborate with academia to come to a conclusion on this  point.

There was also debate on the meaning of introducing AI. Comments aired include:

● AI strives for uniform answers, but ensuring human diversity is important. AI should support society and help children become who they wish to become.

● We need to progress beyond efficiency.

● AI is more suited to music, art, domestic science, physical education and after-school club activities than to Japanese language, mathematics, social science and science. 

Japan, which is behind in harnessing information in education, has finally started work on this area now that the Diet has passed a system for digital textbooks. However, the world is far ahead of us. My desire is to improve debate and have these matters seen as part of a national strategy. I hope to sketch out an image of the future that can be put to the public, conduct concrete demonstration tests using data and put things into practice.

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Blockchain and Education should start cross-pollinating

■ Blockchain and Education should start cross-pollinating

The Learning of Tomorrow association held a talk event entitled “Blockchain and Education.” This association, which promotes the use of technology in education, has established working groups in AI, programming and blockchain.

At the opening of this talk event, the Learning of Tomorrow association announced that it is working on:

1. Research into blockchain technology applications in education

2. Fostering human resources in blockchain technology

3. Increasing the technical functionality of blockchain technology

I made a presentation about two examples of encrypted currencies and P2P being used to provide musicians with a source of income, and highlighted that this could be used in the education sector. The first example is the use of blockchain technology to sell music tracks on NEO. The other is Berlin-based imusify, which is a music crowdfunding service.

My suggestions regarding imusify are:

1) Managing grades: secure access to graduation certificates and prevention of misrepresentation of academic records

2) Sales of notes between students

3) Crowdfunding: fundraising for school activities 

4) Smart employment contracts in education: reducing personnel costs in administration 

1) One often hears of the use of blockchain technology to manage grades and issue certificates, but my interest was piqued by the sale of notes and crowdfunding for schools. There may be a large demand not just for notes, but for distributing, sharing and managing materials made by teachers. The need for donations to schools may also be significant.

O3 (from the Netherlands) offers wallets that handle 50 currencies, and Switchio (from Singapore) has opened a P2P exchange that does not have an encrypted currency management body. I stressed that these structures could be used between a range of schools. 

These are all interesting in that each of these applications crosses the bounds of schools and breaks down barriers. Crossing the bounds of schools and breaking barriers are just the things that the Learning for Tomorrow association is aiming for. How exciting! However, these will give rise to a distributed structure that disbands the school institution and may even change management and educational structures themselves. Once they begin to spread, there is sure to be pushback. Just as there was criticism saying that digital technologies will make teachers obsolete.

I hope to keep investigating technologies, demonstrating them and putting them to use while ensuring that educators see benefits. The Japan Electronics School, which I set up, can act as a test bed. I hope it proves useful to the Learning for Tomorrow association.

 

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The overseas content market has doubled in 10 years

 ■ The overseas content market has doubled in 10 years

HUMANMEDIA has published a database of the Japanese and global content market. Let’s take a look.

The overseas market for Japanese content has doubled in ten years to exceed ¥2 trillion in 2020. In 2011 this figure was ¥865.3 billion, but ballooned to ¥1.4124 trillion in 2016. By 2020, this figure is expected to reach ¥2.208 trillion. The so-called Cool Japan Policy aims to expand this market.

The anime sector represents the largest share of this overseas market. The sector accounted for ¥266.9 billion in 2011, but with the expansion of overseas streaming, this figure reached ¥767.6 billion in 2016. It is predicted to reach ¥1.702 trillion in 2020. The next fastest growing sector is online gaming apps for smartphones, followed by manga publication and distribution, which accounts for 80% of the overall publishing sector.

Despite a decline in the Japanese population and market size, these sectors have experienced an ongoing and slight increase to reach a scale of ¥13 trillion in 2020. In 2016 the sector reached ¥12.4898 trillion, representing an increase of ¥309 billion, or 2.5% from the previous year. In 2011, online media accounted for 13.9% of the overall market, reaching a scale of ¥1.6343 trillion. By 2020, it is expected that this will have grown by 34.2% to reach ¥4.4502 trillion. While there is great consternation at the decline of the domestic market, online content may be bucking the trend.

The largest global market sizes in 2016 were the United States, China, Japan, the United Kingdom, Germany and France, in that order. In 2016, the market size of 16 countries was ¥101.9 trillion, with the United States representing around 45%, China around 13.5% and Japan around 11%. The United States market was around ¥45 trillion, or about three times the size of China in second place. The United States and China dominate the market, with China experiencing growth.

The domestic media content market and its affiliated industries amount to ¥53 trillion, or 10% or GDP. This is almost as much as the amount invested in construction. The true value of HUMANMEDIA is its analyses that encompass these related industries. The content industry itself may not have such a large volume, but the size of its affiliated industries and the knock-on external effects that it has highlights the value of promoting this industry.

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The risks of cryptocurrencies and blockchain technology

 ■ The risks of cryptocurrencies and blockchain technology

The Digital Risk Association, of which I act as Chair, held the 2018 Cryptocurrency and Blockchain Forum. Discussions centered on extremely dry topics, such as the risks surrounding cryptocurrencies, blockchain technology and initial coin offerings (ICO). Nevertheless, the venue was instantly packed with 700 attendees, despite the fact we had not actively publicized the event. This illustrates the level of interest in this field. 

Let’s turn to cryptocurrencies first. Bitcoin has grown strongly, with ¥10 trillion traded in 2017. A regulatory system is now in place with the passing of the revised Financial Settlements Act. The closure of Mt. Gox spurred on discussion both of cryptocurrencies and exchanges that trade in them. This led to the establishment of a legal framework and a system for registering cryptocurrency exchanges. 

Japan is the only country to have such a system. Media coverage of the establishment of this legal framework led to much public interest and an increase in the number of accounts opened to trade in cryptocurrencies. This caused a concomitant rise in risks surrounding price volatility and fraud. The Financial Services Agency set up a monitoring team of 30 specialists in the field.

There is also a risk of losses at exchanges. With an increase in wallet applications, there is a tendency for people to have a sense of security once the money is inside their app. However, just as there is a big difference in putting one’s money into a bank (exchange) or putting it under one’s mattress, there is a debate about the security benefits and drawbacks of this method.

Japan is currently having a debate on initial coin offerings (ICO). These are initial public offerings of cryptocurrency (tokens) when establishing a business. This massive and rapid influx of high-risk investments has received much attention, reaching ¥450 billion globally.

However, the position of ICOs is still unclear in Japan and is up for debate. Rights are unclear and there is a high risk that investments will become worthless. It has also been pointed out that it entails risks around money laundering and fraud. Nevertheless, the number of ICOs has been increasing and more of them are good opportunities. Everyone agrees that continuing in this positive direction will require the establishment of clear rules and agreement on best practice.

There is much hope and scope for growth, but many issues remain. There are many things that businesspeople, lenders and borrowers need to be careful of. The Government is putting in effort and public-private collaboration will be vital. I was able to share this reality by participating in the debate.

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Taking broadcasting reform from debate to action

 ■ Taking broadcasting reform from debate to action

The Regulatory Reform Council submitted 120 recommendations in 7 fields to Prime Minister Abe, including in the field of reform of the broadcasting system. The central pillars of these recommendations are constructing a new platform, encouraging the entry of new players and laying the foundations for local bureau operations. Subsequently, the MIC compiled reports from the Broadcasting Issues Investigatory Panel and the Future of Broadcasting Subcommittee. These engaged in a deeper consideration of matters alongside the Regulatory Reform Council. I was involved in both bodies, and submitted my opinions mainly on the outlook for and policies related to the convergence of broadcasting and telecommunications. I believe the debate moved in a positive direction as a result.

This was the first time in 14 years that I have been engaged with broadcasting policy, since my previous involvement with DTTV issues and in a MIC conference that debated fundamental revisions to the legal framework underpinning the telecommunications and broadcasting sector. However there hasn’t been a great change in policy themes since then. That is a problem.

The MIC report lists the following policies:

1. Technological measures for the effective utilization of bandwidth.

2. Network reform

3. Diversification and enhancement of services, net connectedness

　・ Revitalization of the content industry (fostering human resources, systemic support, support for overseas expansion, streamlining of rights processing)

　・ Promoting combined services (using viewer data, realizing new video streaming)

4. Setting up a framework for providing information

　・ Investigating how to strengthen the foundations of local bureau operations, etc.

On the whole, these are appropriate points.

I made three comments on the compiled reports.

1) The two priority areas going forward are the full-scale roll-out of combined telecommunications and broadcasting services as well as the expansion of content overseas.

　　These are developments in services and businesses, so are issues for private enterprise. I believe that the role of policy is to put pressure on business to proactively pursue these matters.

2) In terms of promoting combined services, I agree with viewer data and video delivery being raised.

　　Data is becoming the key difference between telecommunications and broadcasting. With telecommunications, the accumulation of AI learning through use of data will affect competitiveness. On the other hand, while the whole country uses broadcasting, data is not harnessed. As the structure of all industries shifts toward centering upon data, the use of data within broadcasting will become a key theme.

3) KDDI and Netflix have recently announced cooperation on a package price

　　However, this did not involve the introduction of unlimited data plans in the way that T-Mobile has done in the United States. It is said that the President of KDDI believes this is because net neutrality in Japan is a gray zone. If this is the case, and President Trump’s abolition of net neutrality has knock-on effects in Japan, then this may lead to massive advances in video streaming by the telecommunications system. Telecommunications policy will largely determine the shape of broadcasting.

　　When thinking of the convergence of telecommunications and broadcasting, it will be very important to consider broadcasting policy and telecommunications policy in a unified manner. The same goes for content policy and ICT policy.

　　I hope Government thinking is along these lines.

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Learning of Tomorrow has begun

 ■ Learning of Tomorrow has begun

A symposium was held at Keio University on the establishment of the “Learning of Tomorrow” association.

While teaching digital education and programming is now part of the curriculum at elementary school, there is a growing and serious shortage of human resources in IT and AI. This is an effort to construct a private collaborative framework that combines education and technology to provide recurrent training for preschool aged children to adults and those who wish to brush up their skills. 

Its purpose is to create next-generation education by conducting research, testing, awareness raising and policy proposals on IT and technology in education — be it through policies to foster IT human resources, or policies on introducing education on AI, big data and blockchain technology. 

All staff come from over 30 peak bodies in the digital sector, including IT, software and content production. There are 8,000 member companies under its umbrella. The Keidanren, the Intellectual Property Strategy Headquarters at the Prime Ministers Office and the Cabinet Secretariat IT Strategy Office participate as observers.

Now that the School Education Act and the Copyright  Act have been amended, we have seen great progress on matters such as the creation of a system for digital textbooks and other areas that we have been working on and making recommendations about. Now is the time to move toward 2020, such as by setting up the new framework of the Japan Electronics College and establishing the Digital National Strategic Special Zone CiP. This impetus will feed into the association. 

The symposium was a place for leaders of industry and academia to make commitments to progressing technology-centered and private-enterprise-led educational reforms. The Main Hall at Keio was full to overflowing (for the first time since its opening according to the caretaker.) This very motivated sector is forging a path forward. 

The business of the the association

1　Proposals

　◯ Policy proposals, collaboration with the cross-party Diet Members’ League for ICT in Education

2 Establishing a new environment for learning and fostering human resources 

　◯ Designing and testing future learning environments that surpass the bounds of the school

3 Promoting the use of cutting-edge technology in education

　◯ Introducing cutting-edge technology, such as AI, IoT, big data and blockchain technology, into education.

4　Promoting ICT education in ICT

　◯ Advancing education in programming, embedding information into education, and literacy education.

5　Supporting EdTech businesses

6 Fostering and securing ICT, AI and IoT professionals.

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Yoshimoto Kogyo announces its vision for an Asian Entertainment Platform

 ■ Yoshimoto Kogyo announces its vision for an Asian Entertainment Platform

Yoshimoto Kogyo used the Okinawa International Movie Festival as a stage to announce the establishment of its vision for the Okinawa Asian Entertainment Platform.

In the preamble of the concept paper, it announced that “This Japan-made platform will allow expansion into Asia. It will introduce Asia to what Japan’s regions have to offer, and vice-versa. We aim to construct a platform to connect Asia with Okinawa, Japan through entertainment content.” 

This will become a source of creators and performers across Asia. It will be a place to unearth, foster and provide a workspace for a whole range of creators, including game creators, gamers, manga artists, animators, illustrators, composers, performers, trend creators and secondary creators. Being based in Okinawa, they are aiming to create a local entertainment industry as well as employment opportunities.

With its 108-year history, Yoshimoto Kogyo is pinning its next 100 years on a future that is regional, Asian and digital. The Okinawa International Movie Festival, which has reached its 10th anniversary, has been working consistently to ensure that Okinawa, Japan and Asia as a whole all become a content hub. They are doing this through running events, live concerts and workshops across Okinawa, including on outlying islands throughout the year. 

This press conference also launched the “Laugh and Peace Entertainment School Okinawa,” which is a school that aims to train entertainers. They hope to foster creators and performers to create local Okinawan content that can take on the world. 

They also established the “Yunus Yoshimoto Social Action Co. Ltd.” in collaboration with Nobel Peace Prize winner Dr Muhammad Yunus. They have begun by dispatching comedians to live embedded in local communities in all of Japan’s 47 prefectures, where they can experience social issues for themselves, and try to solve them by encouraging collaboration between the technological power of start-ups and the power of entertainment.

The concept for this platform is an extension of their larger business strategy. Their slogan is “Everything is entertainment. Everyone makes it entertaining.” Their expressive tools are film, manga, anime, AR/VR, games, social media and live concerts. Equally, they are dealing with issues that include education, the regions, tourism, local issues, health and sport. This all seems very compatible with the schools and social action.

I was sitting in the section set aside for reporters during the press conference when a microphone was thrust in my direction. I commented that the Okinawa International Movie Festival has both films and laughs. It is a unique event that is difficult to pin down and can be enjoyed in cities and towns across Okinawa. This school and the platform are both outcomes of the festival having continued for ten years. It provides both an entry point to train people as well as a way for output to be shared overseas. Two of the main themes of Government content policy are fostering human resources and overseas expansion. It really should be the Government that is doing this work. But it is a single company, Yoshimoto Kogyo, that is trying to pull this off. It is really quite impressive. 

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Yunus Yoshimoto Social Action gets underway

 ■ Yunus Yoshimoto Social Action gets underway

Yoshimoto Kogyo and Nobel Peace Prize winner Professor Muhammad Yunus have together established Yunus Yoshimoto Social Action Co., Ltd.

This is an attempt to solve social issues by means of business using the ‘social business’ model, of which Professor Yunus is a great proponent. They hope to solve issues and create employment by starting businesses which can solve social issues such as poverty, unemployment and environmental destruction.

Yunus’ Grameen Bank provides small loans on trust alone, without any collateral. This brings out the entrepreneurial potential of poor borrowers. $2.5 billion is loaned to 9 million poor women each year, with a repayment rate of 99%. While the rate of profit for social businesses is all but zero, the social return is significant and allows people to become economically independent.

This is not just a system for developing nations. Grameen America has lent 86,000 people $590 million and boasts a repayment rate in excess of 99%.

Japan is a developed nation with a plethora of social issues, including aging, a lack of workers, depopulation, disparities and nuclear power plant problems. Now Yoshimoto Kogyo, a 108 year-old company that employs 6000 comedians has decided to put its shoulder to the wheel. This is a singularly unexpected development.

Yoshimoto Kogyo has dispatched “live-in comedians” to each of Japan’s 47 prefectures. These community-based comedians throw light on their local issues and try to find solutions through laughter. Social issues are often thought of as something to be discussed earnestly and seriously, but perhaps they can be tackled in an enjoyable way. Perhaps comedians will be able to get to the root of these problems in a way that politicians, public servants and academics cannot. IT professionals, entrepreneurs, creators and students can come together to tackle the problem and create a business. One of Yoshimoto Kogyo’s strengths is its ability to bring people together in a relaxed manner.

The whole thing was launched at the Tokyo Peninsula Hotel at a “Yunus Family Conference.” I was the compere. The project aims to bring social businesses to fruition by taking actions that include functionality as a fund.

These activities are directly related to the 17 SDGs adopted by the UN, which aim to reduce poverty and promote general health and welfare. Yoshimoto Kogyo is taking steps to highlight the SDGs, including through promoting them on the red carpet at the Okinawa International Movie Festival. These are but targets and goals, but according to Dr Yunus, this project represents real action and is a “path to lead us to our goals.”

These comedians act as issue-detectors, smoking them out through humor. I wonder what results we will see from matching IT professions and others to the task at hand. It’s very serious yet very fun. What an ambitious project! 

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A strategic vision and plan for intellectual property

 ■ A strategic vision and plan for intellectual property

The Prime Minister’s office has an Intellectual Property Strategy Headquarters, whose members are the Prime Minister and his ministers. This body, in which I participated as chair, set out both a strategic vision and a concrete plan for intellectual property.

The main thrust is as follows:

1. Fostering human resources

Fostering human resources for intellectual property and Cool Japan

2. Promoting prospective creation

A content-creation ecosystem.

Strengthening anti-piracy measures

3. Design of new fields

Strengthening the strategy for new information materials such as data and AI

Constructing a copyright system

The four points that I think need to be reviewed are as follows:

1) The use of the Professional University System was raised as part of “Fostering human resources for intellectual property and Cool Japan.”

The Professional University System, which places importance on collaboration with the private sector, is about to begin. The Japan Electronics College, which I set up, is part of this. Let’s make use of these institutions.

2) Creating an environment for the development of E-sports was raised as part of  establishing “a content-creation ecosystem.”

The Government has recognized the meaning of E-sports, just as the sector is finally reaching lift-off velocity in Japan. It is significant that it has situated the sector as a target for development. 

3) A clear statement of policy to prevent pirating sites

We are considering anti-piracy measures in a comprehensive manner. The Government decided upon emergency measures for blocking sites as part of anti-piracy measures, but this has stirred up a debate into the pros and cons. The situation has moved on significantly in that there have been advances in preventing ad revenues as a result of problematic sites not being visible any more. As such, blocking of the problem has not proceeded. This has led to a situation where things have advanced to the next stage of countermeasures.

4) It was noted that there would be consideration of how to construct a framework for the management of copyright and the allocation of profits through the use of blockchain technology. Policy on the distribution and use of copyright materials has been overly reliant on the Copyright Act, but there may be a shift to a technology-led stance. This is an important milestone.

I made three comments at the meeting.

1) There have been moves to put the intellectual property plan into action now that this Diet has passed partial amendments to the Copyright Act (to bring it into line with the internet age) and the School Education Act (to create a system for digital textbooks). There have also been results in the global expansion of content.

2) After the decision on emergency measures against piracy websites in April, we have seen such problematic sites disappear and a commensurate increase in general awareness of  the problem. I think we should quickly set up a task force and work towards additional countermeasures.

3) However, new issues such as Society 5.0 and the SDGs call for changes to the intellectual property strategy. Coordination between intellectual property policy and IT policy is also becoming more important. I look forward to these policies being refined based upon the vision we have set out on this occasion.

Attending ministers made some important points about creating a data distribution environment, strengthening anti-piracy measures and implementation of the new legal framework for copyright. Data distribution and anti-piracy measures are amongst the many intellectual property issues that must be tackled across the boundaries of Government departments. I look forward to seeing concerted efforts by the cabinet.

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Cool Japan: Ships and Cats

 ■ Cool Japan: Ships and Cats

The “Ships” episode of NHK’s Cool Japan

Japan has relied upon the sea and its rivers. Our lifestyle and economy has been supported by ships. Tokyo is an unusual capital city in that it faces the sea. Looking at this fact through a cultural lens from the perspective of an outsider leads to many new discoveries.

The mysterious world of swan boats, barges and boat racing

The United Kingdom, another maritime nation, is said to mainly think of its waterways as a source of power and has actually hindered the passage of ships. Japan did not develop markets like Europe; it focused upon water. Japanese people sang, danced and ate near the water or on ships. This led to the development of a culture of ships.

The artisanal expertise of creating wooden ships accurate to the millimeter 

The expertise of shrine carpenters underpinned the manufacturing of ships that were made without any nails, and whose complex structure required wooden parts to be assembled together with accuracy measured in millimeters. 

The joined-block construction technique was employed in the Heian Period to manufacture large numbers of statues of Buddha. The head, torso, legs and arms were carved simultaneously, then assembled together at the end of the process. This block technique has long been a specialty of Japan. 

Busy luxury cruises

In the West, doing nothing — sitting by oneself beside the pool reading a book or gazing out over an azure sea — is the ultimate indulgence. That's the last thing we would do. We are a culture of making do with what we have — we came all this way, it would be a waste to do nothing. It is a philosophy of taking advantage of an opportunity. It may take a little longer for Japanese people to enjoy the indulgence of doing nothing.

Ships are tools for work and life. The development of ships, their design and culture and their use for entertainment is fascinating. Their status as the acme of artisanal expertise is very Japanese. I hope people come from overseas to attend the Tokyo Olympics on Japanese ships.

The “Cat “ episode

Japan has world famous cats, including a certain blue robot cat and that other cat character with a white face and a red ribbon. Perhaps no other country loves cats in as many unique ways as Japan.

The Cat Boom

This may have something to do with the aging society and a culture that is friendly to people acting alone. Cats are at the top of the list for people who like animals but are unable to walk a pet every day by themselves. There have been booms in the popularity of cats, but they occur at times of recession. When the future is uncertain, perhaps we turn to cats for the relief and comfort they provide.

Cat books and magazines

The progenitor of popular literature, “I am a cat” by Natsume Soseki, plays with the perspective of its feline protagonist. Cats are so popular that a bookstore at Jinbocho in Kanda dragged itself out of trading difficulties by shifting to become a store that only stocks cat books. Some data shows that cats are worth ¥2 trillion to the economy per annum, illustrating the strength of our love for felines.

Cat Island

The most outstanding example of ‘catonomics’ is Cat Island. Revitalizing the local economy is fine, but this sleepy island has experienced much consternation as a result of the sudden influx of tourists after they were thrust into the limelight. I ask cat-lovers to be considerate.

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Cool Japan: Ninja and Blades

 ■ Cool Japan: Ninja and Blades

The “Ninja” episode from NHK’s Cool Japan

I have taken a friend from overseas to the Ninja Restaurant in Akasaka. Ninja have been revisited as something cool that can be used to attract international tourists. They are strong, cool and mysterious. This is a theme that I have proposed. 

Ninja Events

The Japan Ninja Council was formed in 2015 in an attempt to raise the profile of ninja, bringing together a group that originally viewed each other as rivals. Five prefectures with links to ninja joined forces with the cities of Iga and Koka to publicize themselves around the world. I have also been involved.

Ninja training

The number of international visitors to the Ninja Museum of Igaryu in Iga City has increased five-fold in ten years. Tourism strategies that go beyond offering beautiful sites to see and delicious food to eat, and offer experiences — such as hard-core ninja training — are becoming more important.

Ninja manga

Ninja are more than mere fictional heroes. They are a historical fact. This is why manga about ninja are not just about fighting, but have a depth that derives from their historical context and their humanity. It is a broad genre. There are serious works, such as The Legend of Kamui, and more enjoyable works, such as Nintama Rantaro. Make sure you read them!

The “Blades” episode 

When I go overseas dressed in Japanese clothing I am often asked by immigration officials if I am carrying a sword. I often wonder how they thought I had managed to board a plane with a sword, but it illustrates how the image of Japan is intimately linked to swords. Recently, Japanese blades — ranging from chef’s knives to nail clippers — have become a mainstay of the souvenir trade. I wonder why this is the case?

The diversity of Japanese chef’s knives

These knives cut beautifully. Japanese cuisine values beauty, but not just in terms of appearance. Sashimi that is sliced beautifully has not had its cell structure crushed, making the food more delicious. There are many ways to cut vegetables and fillet fish, and a whole range of knives have evolved that can cut beautifully in line with materials and the dish involved. 

The mysterious religious rites for chef’s knives

There is a unique way of thinking in Japan that objects have a spirit. This is especially the case for objects such as knives, which are worn in with use over many years, to the extent they almost feel like an extension of the body.

The genius of leading scissor artisans

Surgeons rely upon the skills of artisans who spend fifteen years patiently perfecting their technique. These artisans do not ask for public recognition, but are content to be valued by doctors. Nevertheless, becoming an artisan is one of the most popular professions children want to become when they grow up. The value of making something with one’s hands has been recognized.

A German blade company manufacturing in Japan

Smelting, smithing and sharpening metal to create a blade that is almost a work of art is a profession underpinned by Japanese stoicism. With international collaboration on marketing and sales, this could be harnessed to create things beyond just blades. 

While blades themselves may be lifeless, they are recognized internationally for their overall connection to a range of things, such as food culture, the artisan spirit and technical prowess. We should value this.

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Cool Japan: Umami and cleaning

 ■ Cool Japan: Umami and cleaning

The “Umami” episode from NHK’s Cool Japan

It was only with the discovery of umami receptors on the tongue in the year 2000 that it was scientifically proved that “umami” was a distinct flavor. Now that Japanese cuisine has been registered as intangible cultural heritage by UNESCO, there are probably more people overseas who are interested in knowing more about the secret to creating Japanese flavors. 

The umami of dashi stock and ramen

It is thought that bonito and other fish have been used for dashi stock since the Jomon Period, 16,000 years ago. This transformed into the use of ingredients such as dried bonito flakes. Japanese people to this day are very particular about umami from fish, and will add it to ramen broth, even if it can be made from pork bones or a chicken carcass alone.  

Dried bonito flakes and kelp

In French cuisine, it takes over ten hours of simmering to create fond de veau. However, creating stock with kelp or dried bonito flakes takes at most tens of seconds, or perhaps even instantly. Japanese water is soft, making it easy to create a dashi stock. However, it takes time to create the basis for this stock. Kelp takes several years, while dried bonito flakes take months.

Umami and hospital food

There is a hospital in Osaka which provides salt-reduced food through using umami. The Kansai Region has the richest umami culture. It has deep roots to this day. One doesn’t want to sacrifice flavor even if reducing the amount of salt in food has health benefits. Umami, however, provides a way to widen one’s culinary horizons while remaining healthy. This is something that could be trumpeted to the world.

The delightful theme of this episode is that flavor — which is a culture that has been fostered for over 10,000 years — is something that has not only been recognized around the world, but is also healthy and quite remarkable. 

The “Cleaning” episode

The fact that Japanese people value cleanliness is another part of Cool Japan that has been recognized around the world. Visitors from overseas in the Edo Period invariably commented on Japan’s cleanliness. It is a part of Japan’s living culture. 

Spring cleaning

Spring cleaning at the end of the year is as important a part of preparations to welcome the gods of the new year as decorating the house with pine branches and rice cakes. Perhaps this is a remnant of the idea that it would be rude not to clean everything considering one is welcoming the gods. 

Japanese brooms

Brooms are intimately linked in folklore to gathering in the spirit and dispelling evil.  Even today, cleaning is the first thing done in the morning as part of ascetic practice. Brooms appear in the Kojiki and were used as tools for religious ceremonies in the Nara Period.

Cleaning every day is perhaps influenced by our way of living, whereby we use the same room to do everything — from removing shoes to eating and sleeping. Moreover, perhaps the earthquake has sparked a rethink of our use of energy, with many trying to be more environmentally friendly and conserve electricity. 

Automatic train-wash machines

Combining culture and technology is one characteristic of Japan. The machine that maintains the pristine white livery of the shinkansen bullet train is a result of Japan’s culture of cleanliness and perfectionism combined with cutting-edge technical expertise. This was no doubt something that was refined as a result of Japan having a harsh environment — both in the mountains and at sea — and its humid climate.

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Cool Japan: Cafeterias and home cooking

 ■ Cool Japan: Cafeterias and home cooking

The “Cafeteria” episode from NHK’s Cool Japan

There is no other country in the world with as many international restaurants as Japan. No country has as many French and Italian flags fluttering in the streets. Tokyo has three times the number of Michelin-starred restaurants than Paris. There are many reasons for this.

Communication

Japanese restaurants place importance on entertainment and communication with the customer. The benches at sushi restaurants are calculated to be of a width that makes communication with the chef as easy as possible. 

Showing the cooking process

The three pinnacles of Japanese cuisine are sushi, tempura and soba. They all trace their roots to standing-only roadside stalls where food is prepared right in front of customers. This has the effect of building trust with the customer about what ingredients are used and how they are prepared. Japanese outlets of an American fried chicken chain were the subject of much chatter as they are the only ones where the cooking process is made visible.

Chain restaurants

Japanese diners expect that the flavor at a chain restaurant will be the same no matter at which restaurant they eat. The flavor of the food is rigorously standardized in the central kitchen. There are chain restaurants in most countries, but a characteristic of Japan is our effort and innovation, which makes it possible to make not just fast food but also cuisine such as Japanese and Italian, which have many complicated dishes.

Restaurant magazines

There have been guidebooks on cafeterias ever since the time of pilgrimages to Ise Shrine in the Edo Period. We have long believed the information written in these guidebooks. Comments, which can be left online by anyone, are of course useful. But information derived from professional research is trustworthy and worth the price tag. This has ensured the popularity of guidebooks.

The ‘Home Cooking’ episode

Perhaps it is due to the negative business conditions, but eating at home is experiencing something of a boom. This is something that has developed with a long history. Japanese cuisine prepared at restaurants is popular around the world. Despite my doubts about whether home cooking can really be ‘cool,’ this is a theme I would like to suggest. 

Overflowing supermarkets

Since the Kamakura Period, Japanese home cooking consisted of one soup and three vegetables. From its very origins it was extremely varied. It also incorporated things from around the world. The evolution of the distribution system brought in new ingredients which were used in cooking. Moreover, everyone cooks. This is all supported by careful service provision at supermarkets. This is certainly ‘Cool Japan.’ 

Websites for posting recipes

Only in Japan could these websites be so popular. There must be no other country in the world where housewives are so concerned about what to make for dinner. What’s more, Japan has one of the highest rates of internet usage, with the world’s largest per-capita amount of posted information. Everyone shares information, improves upon it, and creates their own food. This is very Japanese. 

School cooking classes

Cooking involved a lot of tasks — selecting ingredients, cutting them, putting them together, serving and cleaning up afterwards. It is quite tough. It is a way to come to an understanding of how one’s country’s culture and ingredients are made and how hard parents have to work to provide what students feel comes as a matter of course. Learning in this way allows for the discovery of things that children wouldn't normally notice.

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