Current State History Forecast Top News 5 Page  1    Overall Condition of the Economy and Industries Forecast Three Key Points towards the Future Point 1 Aim to Become the Global Leader in Nanotechnology    The Government of Japan and the Nippon Keidanren and other economic organizations have identified leading-edge industries, especially nanotechnology, as priority fields that major investment should be made in. Nanotechnology is thought to lead to "dream-like inventions" such as medication that zeros in on cancer cells, portable fuel cells or resin that will not tear despite its thinness. The Japanese government estimates that the domestic market for nanotech products will reach 20 to 30 trillion yen by 2010. Japan is currently a global leader in the research and development of nanomaterials.    In the 1980s, the U.S. Government shifted to a pro-patent (pro-intellectual property) policy, and high federal budget priority was placed on fundamental fields. A similar move by Japan did not come until about 20 years later. For this and other reasons, Japan has been repeatedly suffering bitter experiences in the cutting-edge field research and development race. Genomes (genetic codes) are a prime example. In the decoding of the human genome sequence, completed in 2000, the U.S. contributed roughly 70 percent of the basic map and Great Britain about 20 percent, while Japan accounted for a mere 6 to 7 percent. Japan will draw on this experience as it tackles the nanotechnology development race. Point 2 Information Appliances Show Potential to Become a Major Hit    There is a big surge in sales of information appliances such as flat-screen TVs, DVD recorder/players, and mobile phones equipped with digital cameras. The information appliance market is expected to surpass 1 trillion yen in 2006, and it looks like the market will become even bigger as products that completely integrate consumer electronics, computers and networks are launched in the future. The Japanese Ministry of Internal Affairs and Communications announced in February 2004 that it will begin drafting communications standards for the connection of all information appliances used in homes. Screen board of a securities firm in the town which compares Japan-U.S. stock price This would enable, for example, the operation of washing machines and air conditions with a television remote controller regardless of the manufacturer of the product. It seems that products which can be used anywhere outside of the home, such as at hotels and in cars, may be developed as well. Japanese consumer product manufacturers are doing their utmost in this race for research and development. Point 3 The Falling Birthrate and Growth of the Elderly Industry    It is estimated that that the elderly 65 and older will comprise 35.7 percent of the Japanese population by 2050. As of 2004, home-based services that utilize Japan's Long-term Care Insurance System as well as nursing homes and other facility services are beginning to mark sharp growth. Services for the elderly will, without doubt, become a major industry in Japan.    On the reverse side of the coin in the long-term, Japan's falling birthrate will become the Achilles' heel of Japanese industry. Fewer and fewer children are being born in Japan, and its birthrate in 2003 was a mere 1.29 per woman. This is, of course, not only below the birthrate of the United States but also of northern European countries. The proportion of the working-age population (between 15 and 64) has already been declining since 1996. While the working-age population declines sharply, there is a big surge in pension, healthcare and nursing care expenditures. It is certain that the economy and industry will weaken as a result. One solution is to accept more foreign workers, something that Japan has shown reluctance in up to now. According to one UN estimate, Japan will need to accept an average 160 thousand immigrants per year in order to maintain its working-age population once a full-fledged era of low-birthrates hits. Another solution is to increase the number of women in the workforce. Measures such as enhancing child-care services and providing support for part-time work styles are under consideration.