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Fukuoka Growth 12 R & D as Source of Value Added

Information & Strategy Office
In severe financial conditions, many municipalities are attempting to focus on policies for the efficient and effective financial operation. What is the necessary policy for the social and economic development? Municipalities are also expected to engage in marketing.
‘Information & Strategy Office’ was set up in URC as an advisory team serving for Fukuoka City with a mission to contribute to the economic growth of Fukuoka City.
In daily operation, it collects and analyzes data and information, consults to city bureaus and the general public, builds up policy options and recommends priorities to support Mayor’s decision making.
Every city is unique and has its own characterBifocal Eyes to Look at a City
– It is ideal to have bifocal eyes like a zoom lens to comprehend a city.
– Macro eyes would help understand the position of Fukuoka on the world map from a comprehensive point of view.
– Micro eyes would help capture the charms of Fukuoka from an ordinary resident’s point of view.
– These are often described as “bird’s-eye view, fish’s-eye view, worm’s-eye view”. Because a city continues to change day by day like a living creature, it is necessary to look at a city from diversified points of view.Competition for Uniqueness
– Every city looks in similar colors from the universe.
– However, when visiting a city, each city has its own charms and characteristics.
– Examples would include an old townscape in Europe, a modern business street in the United States, a chaotic large city in Asia, and a traditional colony in Arab.
– The era pursuing the quantity and scale by mass production has shifted to the era focusing on the quality.
– As a result of globalization, urban planning to enhance unique charm and context of a city has become popular.

Uniqueness of Fukuoka
– What is the uniqueness of Fukuoka?
– “Fukuoka Growth” provided the data mainly from the macro-eye view from the first issue to the previous one.
– From this issue, switching to the micro-eye view, the unique “Quality” of Fukuoka is going to be thoroughly introduced.
– The theme of this issue is Fukuoka’s world-class “Quality of Life”.

September 5, 2013
Taichi GOTO
Head of Information and Strategy Office
Fukuoka Asian Urban Research Center

Fukuoka Growth [Growth Potential of Fukuoka City]
12 R & D as Source of Value Added (3/2/2014 Version1.0)
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A variety of research & development in science and technology fields have not only the academic importance but also the economic importance in business activities.
The trend of world economy can be overlooked by the quantity of distribution and the flow of funds as visible indicators, but “value added” is also added up on the value of indicators during the process of generating ingredients, producing and selling products while a variety of countries and regions are relating to its process.
As for corporations, “value added” is the essential factor for differentiating themselves from other competitive corporations and securing high profitability. In order to improve the competitive power, investments to “Research & Development” that generate “value added” are continuously made. Especially, globally developing corporations are starting to enforce the collaborations with external groups such as a specialized research institute as Open Innovation*1 in order to win the worldwide competitive race because it is not easy for a corporation only with its own human resources to speed up producing the result of research & development in the science and technology fields where changes are made every day.
Through collaborations, corporations can turn the research results into the actual products development in return for providing opportunities of study or equipment by consigning or funding to universities or research institutes, while universities and research institutes can not only accumulate the newest equipment, technological development and know how, but also invest the earned fund in next research project. These collaborations between corporations and universities or research institutes can build a win-win relationship for both parties.
Since this virtuous cycle was recognized to bring an impact on local economic growth and cultivation and accumulation of human resources, many nations and regions have been focusing on industry-academia collaborations in research & development. In Japan, initiatives to prompt industry accumulation through collaborations between local corporations and universities have been done, but it is required to have a point of view to positively utilize the newest research result to boost the local economy or academic field by having research institutes strengthen the relationships with the world, especially when global corporations are on the lookout for the most advanced technologies and information throughout the world like today.
Fukuoka City also has the potential to generate larger “value added” by utilizing the results of “research & development” under the environment where many corporations, universities and research institutes are accumulating, and constant communication among them is available. It is important to speedily use the individual resources that Fukuoka City’s corporations and universities have and to develop initiatives promoting industries to generate high value added from a global perspective. In addition to utilizing the local resources and boosting industries with business-academia collaborations, it is extremely important to develop relationships between Fukuoka City and outside of the city such as to increase the collaborations between local universities or research institutes and outer corporations developing business in and out of Japan, and to develop the most advanced products or service by enforcing the collaborations between local corporations and outer universities or research institutes, especially when globalization is increasing around the world. It is expected that the needs for industry-academia collaboration would grow by individual research project. Fukuoka City needs to make the best use of its strength that accumulates research institutes of new technology field, and increase “value added” that the local community generates by diversified industry-academia collaborations that leads to the economic growth. As a factor for development of collaborations in the world industry-academia collaboration hubs, the importance of face-to-face communication is recognized*2, and the potential of Fukuoka City where a variety of corporations and advanced human resources in research field such as in Kyushu University are accumulating can be considered extremely high.

December 5, 2013

Naohisa HATAKEYAMA

Information and Strategy Office

Fukuoka Asian Urban Research Center

*1 Open Innovation: to create new innovative products or business model by not only the internal technology but also the collaboration with external technology or ideas.
*2 Source: Tokyo Institute of Technology. “欧州大学における産学連携拠点における調査研究報告書(Study Report on Industry-Academia Collaboration in European Universities)” (March 2012).

Figure 1. Trends in Number of International Patent Applications in Fukuoka Prefecture (2008-2012) Figure 2. Trends in Number of Fukuoka City ISIT Industry-Academic Collaborative Research Projects, Amount of Received External Funds (2007-2011 F.Y.)
figure121_en figure122_en
*Click on the figures to enlarge.
Fukuoka Growth [Growth Potential of Fukuoka City]
Data is the basis for planning.
No hypothesis or forecast can be established without logical grounds based on data analysis.
Data is related to various fields. To collect and analyze data is an important task.
In natural science, accumulated experimental data leads to new discoveries and evolution.
In business or policy making, a variety of data supports to build next strategies.
Data indicates “fact” at a certain point in time from a certain point of view.
In order to plan for the future of Fukuoka, it is important to analyze data from a variety of points of view and to prepare a more certain path for growth.
There is a variety set of data indicating the growth potential of Fukuoka city.
A series of reports “Fukuoka Growth” is going to be released twice a month.
In each issue it will diagnose and discuss the future of Fukuoka city and people by analyzing data relevant to a selected theme.
We hope this series of reports will be informative for those who are considering to live, study, work, invest, and start a business in Fukuoka.
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