GBMC (Global Business & Management Corporation)

Competent, Quality Europe-Japan Business and Management Consulting

INTERVIEW #2: JEITA

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“It is of importance to be aware and to follow the new developments in industrial regulations and standardisation in Europe in order to avoid “Galapagos Effects” characteristic of the Japanese Consumer Market.  For example, Japanese consumer electronics have many market specific advanced functions not suitable for other Market, so they often needs to be adjusted and adapted to other standards.” 

“Manufacture in the EU what has been designed or developed in the EU”. 

GBMC Interview (2015) with:
Mr Kenji Mikami, Representative of JEITA Brussels Office, Brussels, Belgium
JEITA (Japan Electronics and Information Technology Industries Association),www. jeita.or.jp.

Interview conducted by E. Motoko Inuyi & Philippe Huysveld and written by E. Motoko Inuyi.

JEITA

According to Mr Mikami, there are 200 Japanese ICT companies spread over 22 EU countries, accounting for as much as 100,000 employees in this sector alone. In the world, Japanese major production sites are located in China (No.1) and in other parts of Asia (No.2), EU and US following with approximately the same production level.   

He also adds: “It is of importance to be aware and to follow the new developments in industrial regulations and standardisation in Europe in order to avoid “Galapagos Effects” characteristic of the Japanese Consumer Market.  For example, Japanese consumer electronics have many market specific advanced functions not suitable for other Market, so they often needs to be adjusted and adapted to other standards”.   

Major operations of ICT companies in EU are often based in UK (HQ) and Western Europe. UK was mentioned as being regarded as the “IT country within the EU”. Factories (for example TV factories) are often located in Eastern Europe.  R&D centres and factories are ideally close to each other:  investments are usually made where the market needs them. 

“Manufacture in the EU what has been designed or developed in the EU”.  

One of the EU sectors with high potential mentioned by Mr Mikami was the Smart Energy sector (EMS, batteries, power semiconductor applications, smart community projects).  According to him, there are opportunities for collaboration here due to the fact that the EMS technology is not at the commercial level yet.  Other sectors mentioned were Industrial Cyber Security System, Big Data, Silver IT (including robotics and telemedicine) and Bio-Electronics.      

Other potential investment locations mentioned by him, although usually not well known from Japanese companies, would be “Silicon Valley”- type areas or technological research parks in the EU, like Sophia Antipolis in Nice, France.  According to him, a greater presence of Japanese R&D centres in Europe may increase the probability of participation in EU funded projects. Single Patent process in the EU Single Market was welcomed as a great improvement.  

As to the new EU Member States, each JEITA member has different decision criteria and, therefore, no particular trend can be seen. However, Eastern European countries are often regarded as gateways to the Russian and Turkish markets. 

In regards to FP7 projects, the total number of projects in which Japanese companies have participated amounts to around 25.   According to Mr Mikami, JEITA Representative, there are already many domestic R&D projects within Japan to cooperate with.  It all depends upon the subjects of the projects, that is, if they are of interest or not to the JEITA members.     Cooperative relationships especially in R&D projects with EU companies or technological Joint Ventures hold interest as far as it is of mutual benefit for the participants. ere are various.

About JEITA (Japan Electronics and Information Technology Industries Association)

It consists of Japanese ICT companies as its members, making up one of the largest industry associations in Japan. Their member companies, operating in the Electronics and IT industries, account for about ¥ 40 Trillion globally.   The EU Office is located in Brussels, Belgium, and headed by Mr Mikami. 

JEITA primary activities include the following ones:
1.    Promoting International Cooperation
2.    Working on Environmental Preservation and Safety Measures
3.    Advancing Technical Standardization and Technological Development
4.    Implementing Surveys and Analysing Statistics
5.    Reinforcing the Industry’s Operating Environment
6.    Development of New Fields
7.    Maintaining Effective Public Relations and Staging Exhibitions 

Other activities include:

1.    Global Warming Countermeasures
2.    Protecting Intellectual Property
3.    Promoting Research and statistics Gathering
4.    Promote Free Trade Agreement / Economic Partnership Agreement and Information Technology Agreement, and cooperate with government-level negotiations under the World Trade Organization (WTO).
5.    Promoting smart innovation.
6.    Promote product safety
7.    Promote recycling to develop a recycle-oriented society.

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