Reason1. Fertile and Trusted Free Market

Reason1. Fertile and Trusted Free Market

World’s 3rd largest economy and trusted investment destination

GDP

World No.3

Current GDP (USD billion, 2021)
No. Country Current GDP
1 US 22,996
2 China 17,734
3 Japan 4,937
4 Germany 4,223
5 UK 3,187
  1. Source :

    ”Gross Domestic Product 2021” (World Bank, July 2022)

FDI
Confidence Index

World No.4

No. Country
1 US
2 Germany
3 Canada
4 Japan
5 UK
  1. Source :

    “The 2022 FDI Confidence Index” (Kearney)

Developed and free market that provides ample opportunities for new entrants

Japan’s Market Size is the Biggest Attraction for Foreign-affiliated Companies

63% *

  1. *

    63% of the survey respondents cited the Japanese market size as the most attractive feature of doing business in Japan.

  1. Source:

    ”FY2021 Survey on Business Operations of Foreign-affiliated Companies in Japan” (JETRO)

Domestic Competition

World No.5

No. Country / Region
1 Hong Kong
2 Singapore
3 Switzerland
4 Netherlands
5 Japan
6 UAE
7 US
  1. Source:

    “The Global Competitiveness Report 2019”  (World Economic Forum)

Japan leverages FTAs to develop preferential access to global markets

FTA Coverage by Major Trading Economies:

Four pie charts. Country, percentage in force or signed, percentage under negotiation, trave value in 2021, in sequence. Japan 78.8% 21.2% 1.5714 trillion US dollars (converted at 106.82 yen to the US dollar), China48.4%51.6%6.0471 trillion US dollars, South Korea78.8%21.2%1.2595 trillion US dollars, US43.4%56.7%5.892 trillion US dollars, EU45.2%54.8% 4.599 trillion US dollars.
  1. Source:

    ”White Paper on International Economy and Trade 2022” (METI)

World’s leading industrial competitiveness creating various high value-added products

Industry Competitiveness

World No.4

No. Country / Region
1 Germany
2 China
3 Ireland
4 Japan
5 South Korea
6 US
7 Switzerland
8 Taiwan
9 Singapore
10 Netherlands
  1. Source:

    UNIDO (2021), CIP Competitive Industrial Performance Index. Vienna.
    Available from http://stat.unido.org.

Economic Complexity

(A rank of countries based on how diversified and complex their export basket is)

World No.1

No. Country / Region
1 Japan
2 Switzerland
3 Germany
4 South Korea
5 Singapore
6 Czech Republic
7 Austria
  1. Source:

    “The Atlas of Economic Complexity 2019” (Growth Lab at Harvard University)

Reason2. Innovation Ecosystem Open to the World

R&D Capabilities

1st in the world

Reason2. Innovation Ecosystem Open to the World

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