Towards Innovation and Productivity Improvement in Service Industries April 2007 Ministry of Economy, Trade and Industry Commerce and Information Bureau, Japan

……”(6) Initiative to improve investment efficiency, productivity and competitiveness through the effective use of software (initiative by the government) Japanese companies, including those in service industries, generally tend to develop their own software, spending unnecessary costs for IT investment that does not lead to either differentiation or the creation of value added. They tend not to make “aggressive IT investment” that lead to an increase in value added or an expansion of the market. In order to improve investment efficiency of IT and link it to productivity growth and greater competitiveness, it is critical to start sharing software and to share the successful cases for strategic use.”