To accelerate the export of smart communities and other infrastructure systems in the field of information and communications, the Ministry of Economy, Trade and Industry (METI) will carry out feasibility studies for agreement on specific projects in Saudi Arabia, China and so on.

Recently, the global social infrastructure market has experienced rapid change. With demand sharply increasing mainly in developing and emerging countries, the market is drawing global attention as a high-growth field

In Japan, the government clearly focuses on "infrastructure-related/system exports" which are entire systems containing design, construction, maintenance and control in addition to delivery of individual equipment and facilities, as well as "green innovation" by which the provision of solutions to the global environment and energy problems should be linked with Japan's economic growth, as the most important measures in New Growth Strategy (cabinet decision) and Industrial Structure Vision 2010 (released by METI) formulated in June last year. The government is making united approaches for these measures with designating important issues including the concept of the "Smart Community".

"Smart community" is a concept of new town planning based on the use of Information Technology (IT) that deeply integrates environmental and system technologies such as Smart Grids, renewable energy, urban transportation, water treatment and recycling, where Japan has an advantage. This concept matches the solution to problems related to social infrastructure that arise in emerging countries, and many countries including India highly expect Japan's contribution. METI considers this concept as one of the 11 important fields of infrastructure-related/system exports in the Industrial Structure Vision, and considers the "Smart information system" aiming at solving problems taking advantage of IT as another.

One example is an agreement made between Japan and India when Prime Minister Hatoyama visited India in December 2009. In the "Delhi-Mumbai Industrial Corridor" (DMIC), which is a Japan-India joint project, these two countries agreed to promote the "Smart community" which is comprehensive urban development with consideration for the environment taking advantage of Japan's environmental and system technologies. A consortium of Japanese enterprises is implementing a feasibility study.

Enhanced promotion of overseas development for smart communities under government-industry collaboration will enable Japan's contribution to improve environmental problems in rapidly developing emerging countries in Asia and all over the world. At the same time, considering that Japan can enjoy the results of the growth, this is an extremely important measure for Japan's economic and industrial policies.

This project is to support feasibility studies carried out by Japanese enterprises in emerging countries for infrastructure-related/system exports such as those in the smart community and smart information system fields with a prospect for larger demand in the future. In specific countries or cities, Japanese enterprises will make investigations and study business models as required for developing their business (market analysis and business planning).

In the FY 2010 supplementary budget, in addition to the DMIC project promoted in India, Japan adopted and is supporting 15 projects mainly in East Asia in accordance with the "Smart Community Initiative" proposed by Japan at the "Japan-ASEAN Summit Meeting" in October last year.

As the projects in FY 2011, METI will adopt five projects below and study their business models.

Saudi Arabia

Development of a smart environment improvement system for industrial complexes by visualizing air and water pollution using IT and providing energy-saving solutions (Fujitsu Consortium)

Saudi Arabia, South America, Australia etc.

Information solution development using super computers in the fields of manufacture, biotechnology, resource survey, etc. (Fujitsu)

China (Tianjin eco-city)

Development of a community energy management system (CEMS) to optimize the supply-demand balance of energy in the region (Japan Research Institute Consortium (including Hitachi and Mitsubishi Heavy Industries (MHI))

Indonesia (Jakarta), etc.

Development of a smart road traffic management system to realize a traffic control and toll system etc. (MHI consortium)

Thailand (Bangkok)

Development of a three-dimensional smart geospatial information system serving as basic data of urban development (Pasco Consortium)

With advancing study of business models for the projects, METI will accelerate successful agreements on specific projects through inter-governmental dialogue and use of financial support schemes.

October 11, 2011

Information Economy Division, Commerce and Information Policy Bureau