Japan Startup Development & Digital Transformation 5-Year Plan & Manifesto (Version 1.0)
TL;DR? Can’t bear Second Degree writing style. I get it. Start by reading the “Case Context” section at the end of this article. Spoiler Alert:…
TL;DR? Can’t bear Second Degree writing style. I get it. Start by reading the “Case Context” section at the end of this article. Spoiler Alert:…
TL;DR? Can’t bear Second Degree writing style. I get it. Start by reading the “Case Context” section at the end of this article. Spoiler Alert: It’ll kill the surprise.
中村内閣総理大臣の下で新たに日本の最高デジタル責任者に任命されたモリヤ マコサト閣下
His Excellency Mr Makosato Morya, newly appointed Chief Digital Officer for Japan under Prime Minister Nakamura
中村明首相、田中栄二官房長官、岩本智也財務大臣、三井里香外務大臣、佐樹博防衛大臣)、経済産業大臣 中村晴香、文部科学大臣 小野真、厚生労働大臣 木村英樹環境省 山田正樹、国土交通大臣 鈴木健二
Dear Prime Minister Akira Nakamura (中村明), Chief Cabinet Secretary Eiji Tanaka (田中栄二), Minister of Finance Tomoya Iwamoto (岩本智也), Minister of Foreign Affairs Rika Mitsui (三井里香), Minister of Defense Hiroki Sato (佐藤博樹), Minister of Economy, Trade, and Industry Haruka Nakamura (中村晴香), Minister of Education, Culture, Sports, Science and Technology Makoto Ono (小野真), Minister of Health, Labour and Welfare Hideki Kimura (木村英樹), Minister of Environment Masaki Yamada (山田正樹), Minister of Land, Infrastructure, Transport and Tourism Kenji Suzuki (鈴木健二)
Dear esteemed colleagues and members of the government,
As the Chief Digital Officer for Japan, I am honored to accept the heavy burden of making the “Japan startup manifesto” a reality as quickly as possible. I understand the critical times we are facing, and the importance of digital transformation and startup development for the national security of our country.
I hereby pledge to devote my mandate and my life to building a strong digital Japan, and to work tirelessly to achieve the objectives outlined in the manifesto.
Prior to fulfilling our mission, the Chief Digital Office Department first conducted a comprehensive analysis of the current state of digital transformation and startup ecosystem in Japan. This included:
Based on this analysis, we developed a detailed action plan with specific objectives and milestones to achieve the goals outlined in the manifesto. The plan will cover all aspects of digital transformation, including, but not limited to, infrastructure, regulation, education, skills, funding, and market access.
To ensure effective implementation of the plan, we established a dedicated task force of experts from various fields, including technology, business, law, and policy. The task force was responsible for coordinating and monitoring the progress of the plan, and worked closely with relevant government agencies, the private sector, and international organizations.
We also establish regular communication channels with stakeholders to ensure transparency and accountability. This included regular updates on the progress of the plan, and opportunities for feedback and input.
Furthermore, to ensure the sustainability and long-term success of the digital transformation and startup ecosystem in Japan, we worked to initiate a culture of continuous improvement and learning. This includes regularly reviewing and updating the plan, adapting to changing market conditions, and learning from best practices and success stories from other countries.
I am committed to reinforcing this comprehensive and holistic plan to achieve the goals outlined in the “Japan Startup Development & Digital Transformation 5-Year Plan & Manifesto.”
I will work closely with all stakeholders and reinforce our already successful task force in producing this list of detailed, heavy and invigorating tasks to perform; and to ensure effective implementation of the plan while promoting sustainable and long-term growth of the digital ecosystems for a the brightest Japan future.
Thank you for entrusting me with this important task.
Sincerely,
まこ佐藤モリヤ
Chief Digital Officer, Japan
Japan Startup Development & Digital Transformation 5-Year Plan & Manifesto
(一月 . 令和 5-10)
Japan’s economic prospects remain difficult, with the Japanese government anticipating that GDP would contract in the following years. However, the increasing relevance of internet-driven economic development has the potential to change this image by improving the lives of millions of people by providing them with new employment, new skills, and fresh hope for a brighter future.
In Japan, the Internet economy is expected to develop much faster than all conventional sectors combined. These rates substantially exceed those of established economic sectors. Digital technologies are no longer limited to high-tech firms; they are reimagining every sector, with the potential to produce new employment and income.
This rising tide may help Japan safeguard its future prospects, allowing it to emerge stronger, more nimble, and affluent. However, more effort is needed to overcome a number of hurdles that threaten to stymie growth and weaken the potential of this growing industry. We must guarantee that we have the policies, operational modes, and desire to succeed. We must address the reality that Japan does not now generate as many new enterprises destined for growth as other regions of the world or develop entrepreneurs who are as confident in the environment their own nation offers for startups.
The days of depending on major corporations or the government to provide jobs are over. Many of the employment lost in recent years will never be replaced in their current form. Entrepreneurship, which has been the engine of prosperity in other nations, has not been fostered in Japan in a systematic or successful manner. More enterprises and startups require more than a regulatory shift. It requires a mindset shift.
The development of startup and digital transformation policies is critical not only for economic growth, but also for Japan’s national security and survival in a globally competitive economy. It is critical for Japan to take the initiative and establish an atmosphere that encourages entrepreneurs and digital innovation.
Objective: Create a favorable regulatory environment for startups
Tasks:
Funds allocated:
Objective: Make teachers digitally confident and competent to rise to the challenge.
Tasks:
Educate children on the principles, processes, and passion for entrepreneurship from a young age.
Tasks:
Funds:
Encourage university students to start a business before they graduate.
Tasks:
Funds:
Prepare graduates for a radically different marketplace (digital skills + vocational training).
Objective: Provide digital skills + vocational training
Tasks:
Funds:
Encourage large companies to provide training for the general public (for management, leadership, and communication skills).
Objective: Develop management, leadership and communication skills
Tasks:
Funds:
Objective: Turn Japan into the easiest place for highly skilled talent to start a company and get a job by rolling out a Japan startup Visa.
Tasks:
Funds:
Objective: Make it easy for companies to hire outside their home countries Japan.
Tasks:
Funds:
Objective: Make it easier for smaller companies to let employees go (special flexibility in human resources management for small companies).
Tasks:
Funds:
Bring the best brains back home (Japan must launch targeted campaigns aimed at bringing their talent back home, through research grants, logistical support and public recognition).
Tasks:
Funds:
Objective: Increase private and institutional investment in startups.
Tasks:
Funds:
Objective: Make it easier for high-growth companies to raise capital through public markets.
Tasks:
Funds:
Objective: Buy more from smaller businesses.
Tasks:
Funds:
Objective: Tax share options as capital gains, not income, to attract talent to startups (special tax regime for startups).
Tasks:
Funds:
Objective: Revise and normalize data protection laws (unified data protection law).
Tasks:
Funds:
Objective: Remove the requirement for data providers to store information in any given Japan.
Tasks:
Funds:
Objective: Make government data public.
Tasks:
Funds:
Objective: Make governments think digitally (unified technological platform).
Tasks:
Funds:
Objective: Initiate a mentality shift across Japan in terms of how we define success – promoting entrepreneurship.
Tasks:
Funds:
Objective: Appoint a Chief Digital Officer for Japan.
Tasks:
Funds:
Objective: Create a ‘best practices’ repository.
Tasks:
Funds:
Objective: Establish a Digital Japan Forum.
Tasks:
Funds:
Note: The amount of funds allocated for each task is specified in the Annex documentation, but it would be determined during the new 2023 budgeting process.
These objectives (although still in a free listing form) shall be launched through our accountability cross ministries team.
A roadmap and a Gantt chart will be shared across the ministry departments which are the main digital transformation program stakeholders.
This objective listing will be restructured in a 1, 2, or 3 prioritization level.
The “Cross Ministry Accountability Team” shall be headed by the honorable Mr. Makosato Morya.
Following our first round of 3 intensive Cross Ministries Accountability Team meetings, here are the main policy measures that will be undertaken as soon as Q1 2023 and will extend to Q1 2024.
A monitoring dashboard will be developed and data statistics will be monitored and corrective actions undertaken after proper data analysis.
Mizuni Consulting will be held nationally accountable for the implementation of the dashboard system in best practice ways for maximum cybersecurity status with Fuji Analytics [富士アナリティクス] and Nihon Data Intelligence [日本データインテリジェンス] in charge of the data science at the national level.
These companies have been approved for policies deployment support among the 47 prefectures:
Analytics:
Cybersecurity:
They are in charge of open data, 5-year plan objectives, and local prefecture dashboard information dissemination. All 47 local prefecture Chief Digital Officers will be in charge of the Ecosystems Builder Stakeholders Committee and will have direct access to national and regional data.
A new series of meetings will be held Q2, Q3, Q4 2024 for policies results assessment.
Annual conference National Diet official results will be presented to the National Diet for account, budget, and annual plan revision approvals.
General regulatory environment for startups
Make teachers digitally confident and competent to rise to the challenge.
Teach our children the principles, processes, and passion for entrepreneurship from a young age.
Encourage university students to start a business before they graduate.
Prepare graduates for a radically different marketplace (digital skills plus vocational training).
Encourage large companies to provide training for the general public (for management, leadership, and communication skills).
Turn your prefecture into the easiest place for highly skilled talent to start a company and get a job by rolling out a local Japan startup Visa.
Make it easy for companies to hire outside the prefecture.
Make it easier for smaller companies to let employees go (special flexibility in human resources management for small companies).
Bring the best brains back home (Japan must launch targeted campaigns aimed at bringing their talent back home, through research grants, logistical support and public recognition).
Increase private and institutional investment in startups.
Make it easier for high-growth companies to raise capital through public markets.
Buy more from smaller businesses.
Tax share options as capital gains, not income, to attract talent to startups (special tax regime for startups).
Revise and normalize data protection laws (unified data protection law).
Remove the requirement for data providers to store information in any given Japan.
Make government data public.
Make local governments think digitally (unified technological platform).
Initiate a mentality shift across Japan in terms of how we define success—by promoting entrepreneurship.
Appoint a Chief Digital Champion at the Prefecture Level.
Create a “best practices” repository.
Establish a local chapter of the Digital Japan Forum.
Imagine you’re playing a game where you can make copies of yourself and make them do different things on different boards in different environments very far away at cosmic scale. It’s like having multiple versions of yourself in totally different worlds.
This concept is called parallel universes. It’s like having multiple versions of Earth, the solar system, the “Milky Way” and multiple versions of yourself on each one of those specific Earth-s, in different universes with, however, completely different end results, again, all things being equal.
So now, imagine there are many current parallel (maybe infinite) universes, just like ours. In this parallel universe, there is a solar system in a “milky way” galaxy, and a planet that is just like Earth, and a country called Japan. And yes, in this parallel universe the government of Japan has a different cabinet with a different government and a different chief digital officer.
We, the “local universe” Chief of Digital Officer of (this particular Japan country) and I, are free to build whatever we think fit to make (this particular Japan a winning Digital First country in this parallel universe) want in this parallel universe, and since it’s different from our world, you can create something that doesn’t exist here. You could work together to create a new type of technology or a new way of communicating. You could help build a new city with advanced transportation systems. You could also help to develop a 5 year development plan that focuses on a Digital Transformation and startup ecosystem. The possibilities are endless.
The concepts of a “multiverse” and “parallel universe” are often used interchangeably, but they can have slightly different meanings depending on the context.
A “multiverse” is a theoretical concept that suggests that our universe is just one of many possible universes that make up a larger “multiverse”. The idea of a multiverse is based on theories of cosmology, quantum mechanics, and string theory. Some scientists believe that the multiverse is infinite and contains an infinite number of parallel universes, each with different physical laws, constants and initial conditions.
On the other hand, “parallel universe” is a subset of the “multiverse” concept. It suggests that there are other universes that exist alongside our own and may resemble it in some ways, but with some key differences. The idea of parallel universe is based on the possibility that there could be other versions of reality, similar to our own, where different choices and events played out.
It’s important to note that the concepts of multiverse and parallel universe are purely theoretical and currently no scientific evidence for it.
But, let’s assume is has and let’s plan a full and as complete as possible “Japan 5-Year Plan Digital Transformation and Startup Development”.
On this “Japan”, His Excellency Mr Makosato Morya, Japan Startup Development & Digital Transformation 5-Year Plan & Manifesto.
The name, Makosato Morya is an anagram of “Sakamoto Ryoma sama” that any Japanese history enthusiast knows pretty well, even in these countless “far far away”universes. Surely all Japanese citizens know their hero pretty well.
Ryoma sama meets the profile as the high-profile reformer figure I’m looking for to help me construct my outrageous Digital 5-Year Plan.
As you might figure out, I cannot bear any responsibility for this “far far away” Adrien Beaulieu divagation, wandering, and prolific mind.
Foreign assessment models, startup manifesto-s, AI, personal research.
I believe that a lot can be done to ensure digital success if we focus at the very local level (and only then scale at the prefectural and regional level) from a small prefecture area, rather than expecting too much from a national set of policies (which are necessary, but only a top down model).
The issue of concrete local policies and successful local policies enforcement will always be a challenge. That will require identifying stakeholders (members of an accountability project team) that have been previously carefully selected; training and support for their appropriate digital ecosystem readiness preparation; and getting feedback, data from appropriate KPIs, then corrective actions, rinse, and repeat.
Later on, I’ll work more in depth on a real case in an ecosystem building initiative that will make more sense when implemented in a very narrowed-down, humanely manageable area.
Everything is possible only in a parallel universe.