TOKYO, July 27:
Japan should ensure economic growth despite the aging of society and low birthrates by pursuing technical innovations, a government report said today, suggesting support for entrepreneurs to play leading roles to that end.
The white paper on the economy and finances said the introduction of new technologies and products are a key to improving the productivity of Japanese industries, and that it will help address various problems faced by the country, including chronic deflation and the fallout from last year’s earthquake and tsunami.
The annual report, approved by the Cabinet, highlighted an environment in which the Japanese face difficulties starting a business.
The ratio of people aged 18 to 64 who have ever been involved in founding a company to the total population stood at only 5.2 per cent in Japan in 2011, much lower than 12.3 per cent in the United States, according to the report by the Cabinet Office.
To improve the situation, the report said, the government must solve such problems as relatively low social appraisal of entrepreneurship and lack of real knowledge.
It also said the government could prompt innovations in the face of competition from other countries in international trade, expressing Tokyo’s intention to seek more free trade agreements.
On recovery from the earthquake and tsunami, the office assessed that production and employment have almost recovered to the levels seen before the disaster, although a gap remains in the pace of recovery between areas struck by tsunami and those that were not.
More residents have been leaving the seriously affected Iwate, Miyagi and Fukushima prefectures, it said, warning of a possible decline in the local economies due to the outflow of the younger generation.
The report also said it is necessary to seek a higher quality of economic growth, suggesting building an environmentally sustainable society. (agencies)
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