The Japan Revitalization Strategy 2016 calls for the development of key technologies related to the fourth industrial revolution (Industry 4.0), including IoT, robot and artificial intelligence (AI) technologies and also aims to push Japan's GDP to reach JPY600 trillion (US$5.992 trillion) by 2021 by focusing on a number of emerging industries such as self-driving, medicare and smart factories. However, to accelerate the development of Industry 4.0 and new emerging industries, the government is expected to inject a significant amount of capital and human resources to develop related AI technologies in the next 10 years, according to Digitimes Research.
The revitalization strategy also calls for joint efforts by the government and private sector in a total of 10 segments, including Industry 4.0, health, green energy, sports, real estate, services, agriculture, tourism, revolution of small and medium enterprises, and igniting domestic demand. Additionally, the development of Industry 4.0 products will cover revolution in industrial systems, application of Big Data, industrial innovation and talent cultivation. The development of Industry 4.0 aims to create added value of up to JPY30 trillion by 2020.
For the development of Industry 4.0 applications, the government will encourage innovation in the IoT industry by offering cooperation initiatives, capital support, adjustment of relevant regulations, and strategy implementation.
According to Japan's Ministry of Economy, Trade and Industry (METI), the development of Industry 4.0 is expected to cause losses of 7.35 million jobs by 2030, and therefore it calls for concrete efforts to switch these jobs to new segments. The government will earmark JPY10 billion to cultivate talent needed for the AI industry, Digitimes Research noted.
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