Ministry of Economy, Trade and Industry
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Announcement of the Report Compiled by the Study Group on Creating a Higher Value-added Service Industry-Achieving innovation in the service industries to revitalize Japan-

In January 2014, the Ministry of Economy, Trade and Industry (METI) established a Study Group on Creating a Higher Value-added Service Industry, a private workshop organized by Director-General of Commerce and Information Policy Bureau, chaired by Mr. Kyoji Fukao, Director, Institute of Economic Research, Hitotsubashi University, aiming to provide an opportunity to discuss new, specific measures for improving productivity in the service industries and for increasing added value in the industries. The study group held seven meetings to discuss such measures and compiled a report.

1. Background

In Japan, the service industry accounts for about 70% of GDP, carrying a significant weight in terms of both the economy and employment. The economic significance of the service industries in Japan as a whole has recently been increasing. To revitalize the Japanese economy and overcome deflation, it is necessary for Japan to enhance productivity in the service industries and increase added value in the industries.

This approach is also seen in policy in the Japan Revitalization Strategy: “Create high value-added service industries,” which was approved by the Cabinet in June 2013.

2. Major points of the discussion

The study group discussed approaches to improving productivity in the service industries and increasing added value in the industries, focusing on viewpoints 1) to 3) below, and formulated specific policies as follows:

1) Promoting innovation by enterprises

[i] Fostering human resources in the management field: Developing and popularizing management programs targeting graduate and other students, exclusively focusing on the service industries and organized through collaboration with industry and academia

[ii] Promoting the proactively utilization of IT by entities: Establishing assessment indices for proactive utilization of IT, and formulating guidance for proactive utilization of IT

[iii] Encouraging entities to use business support services: Creating a system for certifying entities that support service industries through rating their quality of services

[iv] Enhancing marketing efforts: Encouraging entities to facilitate the utilization of big data by sharing data between group companies

2) Facilitating renovation of the service industries

Creating service ventures: Creating a body whose purpose is supporting new start-ups, in which successful entrepreneurs will foster new entrepreneurs who wish to embark on new business ventures

3) Addressing the issues of population decline, low birth rate, and aging society in regional areas

Creating profitable new service businesses based on the current state of the region by encouraging entities to make use of the System to Remove Gray Zone Areas, etc.

For further details, see the Japanese language press release.

3. Dates of the meetings

Seven meetings in total were held on the following dates:
January 20, February 24, March 18, March 31, April 21, May 13, and May 30.

Release Date

June 9, 2014

Division in Charge

Service Affairs Policy Division, Commerce and Information Policy Bureau

Related Information

Service Industries Policy
Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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