Investing in Japan

Regional Information

Shimane

Shimane is aiming to establish a creative industrial base with a comprehensive supporting scheme including top-class preferential systems in Japan.

Your Regional Guide: Yukio Otani

Shimane Pref. Concierge

Inquiry form

Industrial Promotion Division, Industry and Labor Department
1 Tonomachi, Matsue-city, Shimane Prefecture 690-8501
TEL: +81-852-22-6086 FAX: +81-852-22-6080

Basic Information
Regional Profile
Services for investment in Japan
Available incentives
Links to Related Websites

Basic Information

Population	0.74 million (Male: 0.35 million, Female: 0.39 million) (2005)
Labor force	0.39 million (Male: 0.22 million, Female: 0.17 million) (2005)
Area	6,708km² (2003)
GDP	2,729 billion yen (2003)
Major industries	Information and telecommunications equipment, iron and steel, general machinery, electronic components and devices, food ceramic/sand and stones
Developing industries	Environment/energy, IT, health/welfare/safety, and industrial sawn timber (materials, parts and manufacturing technology)
Offices in Japan	Tokyo/Osaka/Nagoya/Hiroshima
JETRO office	JETRO Matsue Shimane-kenritsu Sangyo Koryu Kaikan 3F, 1-2-1, Gakuen-minami, Matsue-city, Shimane Prefecture 690-0826 TEL: +81-852-27-3121 FAX: +81-852-22-4196 E-mail: mat@jetro.go.jp

Regional Profile

Strength of the region's industries and economy

Shimane Research Business Park Tertiary industry contributes the largest share to aggregate production. Shimane Prefecture is rich in water resources and land prices are also relatively low relative to Japan as a whole. Consequently, a large percentage of manufacturing is in processing and assembly industries such as electrical equipment and general machinery manufacturing.

Strength of the region's education/research institutes

Institutions of higher education, which are sources of supply for human resources, are advanced in their development. The region is therefore rich in the highly qualified personnel that support corporate development. The serious character of the prefecture's people combines with the relative ease in locating jobs and residences close together to form an environment for living that nurtures creative workers. The Shimane Institute for Industrial Technology is an agency that provides technical support to enterprises in the prefecture that engage in advanced research and development for the creation of new industry and work to increase industrial competitiveness. It is acting in combination with corporations to support the improvement of technological capabilities and product development by means of technical consultation with corporations, the conduct of contract research, commissioned testing and analysis, technician training, and other such activities. It also seeks to create new industrial groupings by research and development of advanced technologies and materials in cooperation with industry and academia. Its aim is to transfer technology to corporations in the prefecture.

Strength of the region's infrastructure

Shimane Prefecture has been affectionately known as "the homeland of the Japanese gods" since ancient times, and it has developed a unique culture. Geographically it is situated on the southern coast of the Japan Sea, where the prefecture forms a long, narrow domain stretching east and west some 200 km. More recently, the prefecture has been actively engaged in improving its industrial infrastructure with airports, expressways, ports and harbors, as well as its information and telecommunications infrastructure and its human resource infrastructure with institutions of higher education and so on.

<Land>

In the spring of 2001, the new section of the San-in Expressway between Yonago and Shinji was opened to traffic. This highway, which will form a major artery along this part of the country's Japan Sea coast, now links the eastern part of the prefecture directly to the nationwide expressway network.Construction is also proceeding on the Chugoku Odan Expressway, which connects the Sanin region on the Japan Sea side with the Sanyo region along the Inland Sea.

<Air>

Shimane Prefecture has three airports at Izumo, Hagi-Iwami, and Oki. Including the adjoining Yonago Airport in Tottori Prefecture, there is access to four airports. Travel from the prefectural capital of Matsue to Izumo Airport takes only 25 minutes.

<Sea>

The major port of Hamada is located in Hamada City, which is approximately in the center of the Iwami district in western Shimane Prefecture. Hamada Port is growing as the largest physical distribution center in Shimane. It has been taking on an increasingly important role as a gateway for international trade with the Japan Sea Rim region.

<Railway>

With the introduction of new model super-express rolling stock and improvement of property and facilities on the JR San-in Line, Matsue and Masuda have been linked by a train ride of approximately two hours since the summer of 2001. The Hakubi Line is aiming to introduce "free gauge trains" as part of a phased improvement toward Shinkansen status.

Foreign company(s) operating in the industry

Company name	Crestron Japan, Inc.
Industry sector	Distributive trade of control machinery of videos and audios
Date of entry	May 2002
Motivation for selecting region	The infrastructure available at Shimane Research Business Park and the support system provided by the local government. The time and distance to Tokyo from Matsue is little different to that from other medium-sized cities in Japan. The company president greatly values the lifestyle advantages of not having to commute, and chose to locate an office in the south building of Techno ARC Shimane because of the attractive conditions, prompt service and courteous follow up provided by the Prefectural government. This office became the foundation of a business that now markets to major corporations across Japan. The company currently maintains its head office showroom in Matsue City, and from this location develops the marketing activities for the whole of Japan.
Support provided by local government or JETRO	Human network (fund raising in particular)

Company name	MC SECURITY Co.,Ltd.
Industry sector	Manufacture, marketing, maintenance of electronic equipment
Date of entry	November 2007
Motivation for selecting region	Established in Matsue City in February 2006 as a joint venture of the MIC Limited, which has its head office in Matsue City, Shimane Prefecture, and C&S defense Co.,Ltd., a South Korean corporation. Following its establishment, the decision was made to move the joint venture into Shimane Research Business Park. There it will build a new base for development, manufacturing, and marketing of an intrusion prevention system (IPS). This system is to prevent unauthorized access to computer networks, which has become a problem in society. The company began operation in November 2007.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Consulting by external experts and advisers	No	Market development advisors and other experts commissioned by the Shimane Industrial Promotion Foundation provide advice on business development and market entry.
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Incubation rooms and rental offices are available in Shimane Research Business Park. With low usage fees and a free Internet connection, these are optimal facilities.
Arranging the meetings needed to establish a base (real estate, manpower services)	No	Real estate information is provided on properties for establishing a base. Support is provided for hiring human resources, and the necessary interviews are arranged.
Introduction of available properties and advice on hiring personnel	No	Same as above
Providing information on permits and licensing procedures	No	Information is provided on procedures for obtaining the permits and licenses needed to become established and develop a business.
Providing information on subsidy programs	No	Information is provided on subsidies offered by local and national public organizations and other sources.

Available incentives

Mounting of strategic responses to the needs of individual corporations with studies of "order-made support menus."

<Subsidies and funding programs>
Subsidy systems are available to help cover land acquisition costs, rent, telecommunications fees, etc.

In case of acquisition of over a certain area of a land, 15 to 50 percent of acquisition charges for the land are subsidized.
A lease system for land can be used if certain requirements are met.
50 percent of charges for high-speed information and communication are subsidized if certain requirements are met.

<Incentive Program>
Financing systems are available to help cover land, building and machinery and equipment acquisition costs.
Low-interest and long-term loans can be used if certain requirements are met.
<Other>
Location Plan Subsidy systems are available for approved companies (up to 2 billion yen).