Japan and Cleantech Innovation Index: Why not Better ?

Cleantech Group  LLC and WWF have just released a joint report, Coming Clean: The Global Cleantech Innovation Index 2012, that investigated 38 countries. This analysis focuses on a specific category of actors: cleantech start-up companies. In the authors’ own words:

“We are currently faced with a range of climate, energy and economic challenges. Technology start-ups provide one of the most important vehicles for developing and commercializing innovation to meet these challenges, while generating value for investors” (Report, 3).

The given assumption here is that the main drive for innovation in our current economy is not found within mega-corporations but in young entrepreneurs working all around the clock to develop the next breakthrough in solar or wind energy.

Unsurprisingly, they found out that four of the five countries at the top of that list are small-sized industrialized countries, with Denmark surpassing with flying colors its fellow competitors. Israel, Sweden and Finland are right behind and the US shows up at the fifth place. Denmark does it right in all criteria used by the authors, with

“an unique combination of a supportive environment for innovative cleantech start-ups, evidence of those start-ups emerging as well as a strong track-record of companies commercialising their cleantech innovations and scaling them up to widespread market adoption” (Report, 3).

South Korea is in 8th position, India and China at the 12th and 13th place respectively.

And where is Japan ? At the 20th, just behind France and before Spain (that could end up much more below in the future given the recent drastic public cuts in cleantech support).

As the authors explain, this relatively low position for Japan is not caused by a lack of innovative capacity: in 2008, the country ranked first in term of filling environmental technology patents. It is rather the lack of entrepreneurial start-up culture that is the culprit:

“informality, vigour, and risk-taking required to build a strong, Silicon Valley-esque start-up culture”

are simply not found in Japan. This is not to say that Japan does not matter on the global cleantech innovation scale, only that it could matter even more if not only mega-corps could play that game. Japan’s leaders should be highly concerned that according to the report, the country “scored below average on all factors except emerging cleantech innovation” (Report 36).

The lack of start-up culture and venture capitalism is not something new nor surprising to anyone who knows Japan. However, the country today is in a dire need to find new micro and macro-economic solutions not only to restart its aging economy that relies too much on exports, but also to quickly find an alternative to nuclear energy in order to reduce its renewed dependency for imported energy resources. In 2011, the government had already set forth a target where 20% of energy should come from alternative sources by the 2020s.

However, beyond the issue of financial resources and investment, Japan does not have the regulatory and economic framework that would actually bring positive results for its domestic economy. With very few cleantech focused investors, there is simply no private funding available for supporting early-stage, cleantech start-ups (Report, 23 and 36). The fact that Japan is seen as an “extreme example” of a country “too risk averse for a strong culture of making financial gambles on start-ups with radical ideas” (Report, 27) is not good news in view of its challenges in its post-3/11 economy.

Cleantech Group and WFF point out a direct relation between economic productivity and the existence of a strong start-up-friendly environment.

Overall the index shows countries that put significant resources into supporting cleantech innovation are rewarded with more emerging and commercialised cleantech companies, validating the approach many governments have taken to actively promote cleantech innovation nationally.

While mega-corps like Mitsubishi invest in breakthrough R&D in flexible Organic Photovoltaic Cells that should be commercialized in 2013 already, analysis show that this is not enough to give a whole industry the strength and ability to make a strong and general impact on domestic growth.

The fact that Japan is at the very end of the chart ranking countries based on “Evidence of Commercialised Cleantech Innovation”, just after Slovenia and before Greece, Russia and Saudi Arabia (Report, 24) should be forwarded to political and economical leaders right away.

The networks and actors that have built Japan in the 20th Century may not be the options for finding the necessary solutions to give its domestic economy the radical transformations that it needs.

New Brand of Swiss Watches in Japan

ITIP SA is proud to present 121TIME, a brand of Swiss watches now available to Japanese customers through a dedicated online shop: http://swisswatches.ocnk.biz

With free shipping directly from Switzerland to all over Japan and ex-factory prices, this online shop makes high-quality and high-end “Swiss Made” watches easily available to everyone in Japan. More than 100 models are already available with more to come. Corporate Branding with fully customizable watches is also available throughout Japan. Check it out!

21st International Photovoltaic Science and Engineering Conference held in Fukuoka

From Nov. 28th to Dec. 2nd, 2011, the 21st International Photovoltaic Science and Engineering Conference is being held in Fukuoka. A large panel of professional and academic guests attend this high-level venue that includes an exhibition space for international and Japanese companies.

Among them, the study results of a project led by Belgium-based IMEC International and Osaka-based KANEKA Hybrid PV were presented on Nov. 28th. The study focused on silver-free heterojunction silicon solar cells.

This is an exciting and interesting example of European-Japanese industry cooperation in one of the most rewarding yet competitive sectors today where Chinese companies seem to have taken the upper hand and where European companies struggle to win (or even keep) market shares.

The event itself also highlights Fukuoka’s attractiveness for international venues in Japan, especially in the wake of March 11, 2011. As a matter of fact, the Conference was relocated to Fukuoka in May. At the same time, Fukuoka is also a logical choice for such a conference given the research and industrial hub focused on silicon that makes Fukuoka “the Silicon valley” of Eastern Asia.

Tsukasa Electric Build in Fukuoka to better expand to China

Tsukasa Electric, based in Tokyo and manufacturing machine parts, is currently developing its business operations in China. Because of the close proximity of Fukuoka City to China, a R&D center will be built there and about 20 persons should be hired during the next two years. Another deciding factor has been the high level of qualified workforce in the Fukuoka area.

Kitakyushu city: A Green Leader

Kitakyushu city steadily implements eco-friendly and sustainable solutions that help lowers its carbon impact as well as its power consumption. The latest move was taken a few days ago by local government: over the next 15 years, all public road lightning managed by the city will be converted to LED. Power consumption will be cut down by 45%.

This strongly supports the recent decision made by OCDE to select Kitakyushu city as a Green City: the first in Asia, the fourth in the world.

 

Retail Store Strong in Kyushu

According to Kyushu METI, thanks notably to the new JR Hakata Station as well as energy-saving products, retail stores in Kyushu and Okinawa prefectures saw a 2.8% sales rise from the year-before period.

Barney’s, H&M come to Fukuoka and push competition

Japanese clothing brands, high-end department stores and boutiques must face renewed competition in Fukuoka-Hakata-Tenjin areas with the opening of Barney’s NYC and H&M retail stores in September. Both retailers are well aware of the opportunities brought by tourists from neighboring China and South Korea. Along with the high attractiveness of Hakata Station, this also calls for redesign and major upgrading from already established department stores, such as Hakata Daimaru, PARCO and TENJIN CORE, all located in trendy Tenjin.