![]() ![]() In 2018, the shortage of ICT personnel in Japan totalled approximately 220,000. There are supply and demand-side explanators of why digital transformation has not taken off in Japan.Ī survey of Japanese companies conducted for a 2021 white paper by the Ministry of Internal Affairs and Communication (MIC) highlighted personnel shortages in the information and communication technology (ICT) sector as a key factor behind the lag in digital transformation advancement. The delay in digital transformation has been felt acutely during COVID-19 because much of Japan’s public health administration still relies on outdated record keeping methods that could not keep up with cases. But among wealthy countries it ranks below average in digital competitiveness, e-government and e-learning. ![]() Japan also has a rich human capital base with high literacy rates. Japan still maintains technological competitiveness in certain areas such as robotics, batteries and some high value-added intermediate inputs and machinery. Once known as a technological powerhouse, Japan has lagged in the global wave of digital transformation. Incidents like that are reminders of the state of digital disfunction in Japan. Such a mishap may be understandable had it occurred in the 1980s, when personal computers and memory devices were just popping up. Instead of 463 residents receiving their payments, one resident alone receives a lump sum payment for 463 residents. But somewhere between the clerk’s instructions and the bank’s processing of the transaction, there is a miscommunication. He has every intention of transferring payments to the residents. ![]() Economics, Politics and Public Policy in East Asia and the PacificĪuthor: Hiroshi Ono, Hitotsubashi UniversityĪ city clerk in the western prefecture of Yamaguchi carries a floppy disk containing account information for 463 residents to a local bank. ![]()
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