Investing in Japan
Why Japan?
10 Advantages to Investing in Japan
3. World-class companies and SMEs with unique technologies
Japanese companies of all sizes (from small ventures to major multinationals) produce unique and innovative products and services. Japan's strong technology-based industries offer a multitude of opportunities for foreign companies looking to partner with Japanese firms at all stages.
Number of vehicles sold by Japanese automotive manufacturers (total worldwide) and share of world market
Note: Japanese automotive manufacturers include Toyota, Daihatsu, Hino, Nissan, Nissan Diesel, Honda, Suzuki, Subaru, Isuzu, Mazda, Mitsubishi
Source: Formulated by JETRO based on data from FOURIN's Global Automobile Manufacturers Yearbook 2005
Ratio of overseas sales for major Japanese manufacturers of electronic and precision high-tech equipment (2005)
Note: Canon: Fiscal year ending at the end of December; All other companies: Fiscal year ending at the end of March
Source: Corporate accounting documents
Many Japanese companies have established subsidiaries, branches and production bases throughout the world, and are continuing to expand their networks in all areas, from procurement of materials to production and marketing.
Trends of Japan's outward foreign direct investment
Source: "International Investment Position of Japan," Ministry of Finance and Bank of Japan; JETRO
Many small and medium-sized enterprises (SMEs) are the major suppliers of the equipment, parts and materials requiring high precision and microfabrication that are vital to the international competitiveness of major corporations. Some SMEs own niche technologies in areas in which larger corporations are not involved.
The sensors fitted in the engine housing of a hybrid vehicle
Tamagawa Seiki Co., Ltd.: Manufacturer of Parts for Hybrid Vehicle Motors (Nagano Prefecture)
Hybrid vehicles are more fuel-efficient and environmentally friendly than gasoline vehicles, and their popularity is therefore growing. However, it is necessary to monitor the rotational position of the motor and apply precise control to increase fuel efficiency in these vehicles.
This company produces a sensor that is able to accurately detect the angle of rotation of the motor in the oily, high-temperature and high-vibration environment of the engine housing, and holds a 100% share of the world market.
Ultraweak Light Detection System
Tohoku Electronic Industrial Co., Ltd.: Manufacturer of High-sensitivity Light Detection Equipment (Miyagi Prefecture)
To open up the future of photonic and electronic technology, this manufacturer has developed, and is manufacturing and marketing, an ultra-sensitive light detecting chemiluminescence analyzer. This is one of the most sensitive light detectors in the world, able to detect the luminescence produced by changes in chemical substances, reactions to test reagents and thermal decomposition, and the fluorescence produced by light irradiation.
The high-sensitivity measurement of luminescence and spectroanalysis made possible by the device enables evaluation of oxidation degradation, anti-oxidation and levels of active oxygen and fluorescent substances, and has applications in medical research. The device is being used in the food industry and in a variety of other fields, including biochemistry, medicine, and chemical and high-molecular products.
Champion in RoboCup 2006
Vstone Co., Ltd.: Manufacturer of Bipedal Walking Robots (Osaka Prefecture)
Using omnidirectional sensors and image processing technology, this company manufactures small, highperformance, bipedal walking robots. Robots developed by this company won three straight victories in RoboCup, a robot soccer competition, in 2004, 2005 and 2006.
The strength of this company is the fact that every component is manufactured in-house, and every aspect of the robots, from sensors and software to electrical systems, is overseen by the company.
Optical disk recovery equipment
ELM, Inc.: Commissioned Development of Electronic Equipment, and Design and Manufacturer of Laborsaving Devices for Industry (Kagoshima Prefecture)
This company developed and markets the world's first automatic optical disk recovery system, which polishes the surfaces of scratched and dirty CDs and DVDs that have become unreadable to enable them to be reused.
The system can correct 0.01 mm deep scratches, which require more than 30 minutes using conventional systems, in only 4-5 minutes.
Through global alliances, the company now sells this system in 23 countries worldwide, and holds more than 85% of the world market share in automatic optical disk polishing equipment.
IC chip allowing direct interaction of copper wire and end terminal
Left: Ultra-small IC tag (5 mm diameter)
Right: Rice grain
Star Engineering Co., Ltd.: Manufacturer of Non-contact Type (RFID) IC Cards and Tags (Ibaraki Prefecture)
IC tags have potential uses in every area of daily life, from commuter passes and electronic money to distribution management and security functions.
This company has been successful in developing small, high-accuracy and low-cost IC cards, which are planned for future use in tagging small items, which have been difficult to tag with conventional-use IC tags (medicine vials, jewelry, cosmetics, etc.), and to tag products with complex shapes.
Ultra-small CCD camera (WAT-230 VIVID)
Ultra-small CCD camera (WAT-240 VIVID)
Watec Co., Ltd.: Manufacturer of Ultra-small CCD Camera (Yamagata Prefecture)
Combining proprietary electrical circuit designs and sensitivity-boosting circuit technology, this company has been successful in reducing the size of charge-coupled device (CCD) cameras to one-quarter that of conventional models.
The new cameras are also 1/8 the weight and 1/20 the cost of previous models. The reliability of this unique technology is attested by its use in 60 countries worldwide, in applications including the Space Shuttle, the Louvre, FINA World Championships and the National Astronomical Observatory of Japan. The company is a global brand that has high world market share of mini surveillance cameras.
Source: "300 Creative SMEs in Japan," Ministry of Economy, Trade and Industry
- The world's second-largest market
- Sophisticated consumers with high purchasing power
- World-class companies and SMEs with unique technologies
- Loyalty and commitment to long-term partnerships
- World's center for technological innovation and product development
- Access to new Asian markets
- Favorable business climate
- Rapidly growing broadband society
- Expanding environmental market
- Booming business in silver care and retirees
