Developing Japanese Space Competitiveness: Perspectives from Futron s 2009 Space Competitiveness Index (SCI)

Transcription

1 Developing Japanese Space Competitiveness: Perspectives from Futron s 2009 Space Competitiveness Index (SCI) Keynote Address to Japan s Institute for Unmanned Space Experiment Free Flyer (USEF) Seventh Space Industry Symposium December 9, 2009 Futron Corporation 7315 Wisconsin Avenue, Suite 900W Bethesda, Maryland Phone Fax Better Decisions Better Future

2 Agenda Introduction to Futron Space Competitiveness Index (SCI): genesis and concept Summary of 2009 results Strengths-Weaknesses-Opportunities-Threats (SWOT): Selected Country Examples Japan SCI Snapshot Further Enhancing Japanese Competitiveness Conclusions and Questions Better Decisions Better Future 2

3 The name Futron is the union of two words: future and -tron (the Greek suffix for instrument ) making us literally an instrument of the future Better Decisions Better Future 3

4 Futron Corporation Overview CORPORATE BACKGROUND DECISION MANAGEMENT SOLUTIONS Serving both government & industry since 1986 Aerospace Decision Management Consultants ISO 9001:2000 Registered since 2003 Best Place To Work Award Recipient Headquartered in Bethesda, Maryland, in the United States near Washington, DC Between where you are and every worthwhile destination lie many critical decisions. CORPORATE CAPABILITIES CUSTOMER NEEDS Business Technical Challenging Issues and Opportunities Effective Decision-Making Management Optimal Performance and Results Better Decisions Better Future 4

5 Sample Clientele Government Industry Non-Profit and Association Better Decisions Better Future 5

6 Space Competitiveness Index (SCI) Introduction Better Decisions Better Future 6

7 We Live in a World Transformed By Space Every day, around the world, people experience the benefits of human engagement in space Barely a half-century since the launch of the first satellite, space activities have become central to the way we live, work and play Weather Forecasting Global Positioning System Mapping and Imagery Satellite TV, Radio, and Communications Applications and benefits of space activity have multiplied and so has their economic value Space industry employs hundreds of thousands of people in countries around the globe Worldwide revenues from direct space activity are valued in the hundreds of billions of dollars per year And space remains An object of wonder and aspiration An inspirational and symbolic touchstone An arena of competition An opportunity for cooperation The next frontier: the place where we will explore our long-term future Better Decisions Better Future 7

8 Space trends are key to critical industries and infrastructure Space as indispensable to global communications and information The internet, wireless communications, voice telephony, and e-commerce, are now global phenomena and all have linkages to space assets Space-enabled products such as GPS equipment and imaging services are also generating new markets Space as critical to military power projection Space assets, including satellite communications, reconnaissance, and tracking systems, are key to command and control Militaries use space assets for a host of functions, including force tracking, coordination, and situational awareness Space as essential to preserving and protecting the planet Earth observation and remote sensing activities have migrated from purely military functions to the civilian and commercial spheres Nations are increasingly sharing Earth observation resources Remote sensing is key to monitoring global warming and climate change Space as a global commons enabling global utilities Space is a shared resource used, and traversed through, by all Debris mitigation shows how use of space by one country can affect all others Better Decisions Better Future 8

9 Both traditional companies and new startups are at the vanguard of technology Traditional Leaders Space industry continues to push the envelope Established space companies launch vehicle manufacturers, launch providers, satellite manufacturers, satellite operators, and providers of related services continue to explore emerging technologies: Less expensive and more rapidly deployable boosters Small satellites (smallsats) Standardized plug-and-play platforms Miniaturization of components Economies of scale in production Emerging Entrepreneurial Players Alongside established players, entrepreneurial space ventures play a growing role Space tourism New launch vehicles New business models Capital investment and perspective originating from outside the space industry Better Decisions Better Future 9

10 And space activity is now a worldwide phenomenon Advancement of Asian competitors An exclusive club becomes less exclusive as the Asian space powers Japan, China, India, and South Korea compete among themselves Asian space leaders are increasingly technological peers of the US, Europe, and Russia The center of gravity in world space activity continues to shift eastward Maturity of European space integration Coalescing of European actors and assets, and a renewed focus on military space Passage and refinement of the European Space Policy marks a significant accord that sets the stage for new collaborative European space initiatives Globalization of space participation At least 50 nations now have some degree of space involvement whether a national satellite, an astronaut flown aboard the vehicle of a partner nation, membership in a space organization, or participation in the development of an international space science project From Malaysia s RazakSAT to Vietnam s Vinasat 1, from Australia s Hyshot 2 to Saudi Arabia s Riyadh Space Research Institute, countries from all six populated continents now participate in space Better Decisions Better Future 10

11 Space Competitiveness Index: The Concept Questions of national space competitiveness naturally present themselves in any discussion of the strategic space environment Yet to our knowledge, there had never been a structured framework for comparing space competitiveness across countries In 2008, Futron decided to undertake its own analysis Create an original framework for evaluating national space competitiveness in all its nuance Look at both quantitative and qualitative measures Provide a point-in-time ranking of national space competitiveness that can be tracked year-on-year going forward Stimulate industry, government, media, and civil society discourse Serve as a tool for leaders to make strategic decisions Better Decisions Better Future 11

12 Ten Countries Analyzed Brazil Canada China Europe India Israel Japan Russia South Korea USA Better Decisions Better Future 12

13 Three Dimensions: Government, Human Capital and Industry Space Competitiveness Index Category Weights 40% Gov t 40% Industry 20% Human Capital Space Competitiveness Index Government Categories Space Competitiveness Index Human Capital Categories Space Competitiveness Index Industry Categories 40% Gov t Space Policy & Innovation Support Civilian & Military Spend 25% 15% 20% Human Capital Human Resources Pool 10% Usage/Reliance 8% Manufacturing Capabilities Launch Capabilities Corporate & Financial Strength 12% 13% 15% 40% Industry Civil Society Interest 2% Better Decisions Better Future 13

14 Government Human Capital Industry Category Target Measurement Structure Metric Ability of Government to Provide Structure, Guidance, and Funding Government Space Policy & Innovation Support International Space Cooperation Government Spend on Civilian and Military Space (US$PPP) Weight 40% 20% National Civil Space Policy 3% Civil space program budget as percentage of national budget National Military Space Doctrine Military Space Command Structure Remote Sensing Policy, Laws & Regulations National Commercial Space Policy Positioning, Navigation, and Timing (PNT) Strategy Information, Communications and Telecommunications (ICT) Policy International Cooperation International Coordination - ISS Participant International Coordination - Cooperative Agreements Civilian Space Spending (US$PPP) Military Space Spending (US$PPP) 3% 3% 2% 3% 2% 2% 2% 5% 3% 2% 15% 7.5% 7.5% Category Target Measurement Structure Metric Ability for People to Develop and Willingness to Use Applications and Technology Human Resources Pool Weight 20% 10% Number of Astronauts 2% Number of Relevant University Programs Number of Space Law Programs Number of Civilian Research Institutes Number of Spacecraft built during last 20 years 3% 1% 2% 2% Usage/Reliance 8% Civil Society Interest and Support Number of Active Spacecraft 6% Science & Exploration 1% Communications 1% Earth Observation 1% PNT 1% Military Satellites 2% Number of End Users (DTH, Internet, Sat Radio) Number of "Spaceoriented" organizations and/or NGOs 2% 2% 2% Category Target Measurement Structure Metric Industry Ability to Finance and Deliver Space Products and Services Manufacturing Capabilities Launch Capabilities Corporate & Financial Strength 50+ Metrics Spacecrafts Built during Year (Total Mass & #) Backlog of Spacecraft to be Produced (Number) VSAT Manufacturing (Market Share) Better Decisions Better Future Weight 40% 12% 4% 4% 2% # of Subcomponent Manufacturers 2% 13% Number of Active Spaceports 5% Total Mass of Launches (Military + Commercial) During Past Year (Kg) Number of launches During Past Year 1 yr. Backlog of Orbital Launches to Be Conducted (Number) 2% 2% 2% Number of Planned Spaceports 2% Space Revenue for Top 75 Companies (US$M) Revenue for Leading GPS Companies (US$M) 15% 4% 1% Top 20 Teleport Rankings 1% Private Sector Investment (US$M VC and PE) 4% Ranking by Investment Source 2% Ranking by Investment Destination 2% Number of Support Companies, e.g., Finance, Information, et al Number of Test & Development Satellites Launched 3% 2% 14

15 Five Segments (or Verticals) SCI Drivers Who What How Military Exploration Government Policies & Leadership Civilian Government Communications Human Capital and Experience Commercial Enterprise SCI Segmentation Analysis Remote Sensing Special Focus: Five Segments 1. Global Space Exploration Index 2. Global Military Space Index 3. Global Positioning, Navigation, and Timing (PNT) Index 4. Global Remote Sensing Index 5. Global Space Technology Base Index Corporate Structure and Operations Non-profit Organizations Positioning, Navigation & Timing Space Technology Base Individuals Manufacturing Investment & Spending Launch Space Services Better Decisions Better Future 15

16 Results featured in International Publications Better Decisions Better Future 16

17 2009 Space Competitiveness Index Results Better Decisions Better Future 17

18 SCI government metrics measure the ability for government to provide structure, guidance, and funding to the space industry Space Competitiveness Index - Government Metrics U.S. Europe Russia Japan Canada China India South Korea Israel Brazil The U.S. has a robust government policymaking structure with detailed strategies for military, civilian, and commercial applications but the complexity of the system, a lack of a unifying executive structure for decision-making, and the ongoing issue of export controls reduce overall competitiveness The U.S. spends more money than any other nation on space. Its substantial military investment offers technology advantages, but may also obscure narrowing technological advantages in the civil space arena European governments, through the European Union (EU) and the European Space Agency (ESA), have integrated their policymaking structures and are increasing civilian and commercial spending Japan s recent updates to its space law and policy signal a renewed government focus on the strategic, economic and social benefits of space activity. This renewed focus on the country s space ambitions also highlights the country s advanced technological capabilities Better Decisions Better Future 18

19 U.S. Europe Canada Russia China Japan India South Korea Israel Brazil SCI human capital metrics focus on the ability for people to develop and use space-enabled applications and technology Space Competitiveness Index - Human Capital Metrics Human Capital Significant concern persists globally within industry and government regarding the development of adequate human resources, particularly technically skilled personnel such as engineers This is especially felt among current space leaders, such as the U.S. where an estimated 60 percent of noncitizen engineers return to their home countries after earning degrees Data regarding human resources within the space industry is sparse, and lacks consistency across countries, but the 2009 SCI has added a metric for space law training capacity Usage of, and reliance on, space-enabled services is skewed towards larger, advanced economies, particularly with the introduction of new satellite services such as navigation and end-user Internet access Civil society interest and support is widespread throughout Asia, Canada, Europe, and the U.S. Japan benefits from a skilled workforce and a solid university sector. Greater investment in research institutes and development of human spaceflight component would increase its human capital base Better Decisions Better Future 19

20 U.S. Europe Russia China Japan South Korea Canada Israel India Brazil SCI industry metrics calculate the ability for the private sector to finance and deliver space products and services Space Competitiveness Index - Industry Metrics Industry Satellite communications is one market segment predominantly in the hands of the private sector Significant commercial interest persists regarding remote sensing and informatics applications, as well as a rapidly growing downstream market based on the U.S.-operated Global Positioning (GPS) constellation Despite its export control constraints, the U.S. commercial space industry remains the leader, with continued very high revenues and financial activity European commercial competitiveness remained largely unchanged between 2008 and 2009, providing a statistical counterpoint to perceptions that the European market has gained dramatically from efforts to develop alternatives to satellites and equipment controlled by U.S. export regulations Japan and China are ranked very closely in industrial base, highlighting the Asian Space Race perception Japan s strengths include high technology, large numbers of subcomponent manufacturers, and private capital China s strengths include high volumes of launch vehicles and hardware produced in recent years Better Decisions Better Future 20

21 The breakout by category provides additional value to understand national strengths and weaknesses 2009 Space Competitiveness Index Space Competitiveness Index - Total Category View U.S Europe Russia Japan China Canada India South Korea Israel Brazil Government Human Capital Industry Better Decisions Better Future 21

22 Industry Based on 50+ indicators, Futron s Space Competitiveness Index (SCI) ranks leading space powers and measures their relative positions 2009 Space Competitiveness Index Global View 50 U.S. 25 Europe 0 China South Korea Canada India Israel Brazil Japan Bubble size represents Russia Human Capital Japan Government Better Decisions Better Future 22

23 2009 versus 2008 SCI Overall SCI Results Rank Country Government Human Capital Industry 2009 Score 2008 Score (Rank) 1 U.S (1) 2 Europe (2) 3 Russia (3) 4 Japan (7) 5 China (4) 6 Canada (6) 7 India (5) 8 South Korea (8) 9 Israel (9) 10 Brazil (10) Due in large part to its substantial new Space Law, which sets out specific space goals, creates new structures, and provides for the possibility of Japanese military activity in space, Japan saw the single biggest gain of any country between Futron s 2008 and 2009 Space Competitiveness Index Japan leapfrogged over Canada, India, and China to become this year s fourth-ranked country in terms of overall space competitiveness Better Decisions Better Future 23

24 Strengths-Weaknesses Opportunities-Threats: Major Countries Compared Better Decisions Better Future 24

25 External Origin Internal Origin United States 2009 Rank: 1 STRENGTH Helpful WEAKNESS Harmful Very strong aerospace and space sector Highest global space spending across all three main sectors: civilian, military and commercial History and significant experience base across most technology segments Strong commercial space segment and support industries, allowing for production lines that produce large volumes at low unit costs Strong public-private sector cooperation High levels of consumer use of space services ranging from GPS to telecommunications, satellite radio, internet broadband, etc. OPPORTUNITY NewSpace sector activities such as commercial space tourism and rocket racing, stimulate technical innovation, new revenue streams, and business models NASA can leverage ISS leadership and other partnerships to build further collaboration with leading space agencies Develop new space services markets such as mobile video and imagery products Lunar missions could spur economic activity ORS paradigm could spark innovation Recent economic and domestic employment crises may reduce relative priority of space activity in the minds of policymakers and the public Significant industry concern regarding the long-term sustainability of human resources and human capital development Lack of cabinet-level government position focused on space industry despite a large stakeholder community ITAR export controls hinder commercial export activity, especially for smaller, innovative companies with limited financial resources or legal expertise THREAT Gap between Shuttle and Constellation programs offers strategic opening for competing systems Resurgent provides competitive alternative in launch segment Global manufacturers responding to export controls with products marketed as ITAR-Free Chinese demand for satellite communications based on proprietary standards create substantial market for manufacturing and launch opportunities outside US Retaining lead position in an increasingly competitive environment will likely become more difficult Better Decisions Better Future 25

26 External Origin Internal Origin Europe 2009 Rank: 2 STRENGTH Helpful WEAKNESS Harmful Very strong aerospace sector Significant government program support Multi-year budgetary commitments Extensive experience in international cooperation Home of major players in global satellite communications (SES and Eutelsat) Reliable and commercially successful access to space (Ariane), soon complemented by smaller launchers (Vega, Soyuz 2) Strong participation in international programs Essential role in ISS The European Space policy first adopted in 2007 has enhanced s ability to integrate national space policies and implement common European space policies OPPORTUNITY Europe s ITAR-free satellite and space industry is gaining market traction, benefiting its overall competitive position especially in relation to the Strong relationships with Middle Eastern and African markets provide a regional competitive edge in regions that are expected to increase in commercial, political, and economic influence Europe s Galileo satellite navigation positions itself as a partner and a competitor of GPS Increasing integration of licensing and regulatory processes across the EU, making it the largest developed consumer market in the world for space-related products and services Fragmented (from a pan-european point of view) military space policies and budgets lead to inefficiency and overlap between assets and expenses, inhibiting transfer of technologies originally developed for the military to the commercial sector Coexistence of national and ESA programs sometimes results in overlap, redundancy, and inefficient use of resources Coordination of 19 member states interests entails a complex and sometimes lengthy decision making process in ESA Coordination between ESA and the European Council (EC) is complicated by different nature of both organizations THREAT Complex decision-making process within ESA and between ESA and EC may result in slow reactivity to challenges and opportunities. Projected shortage of future workforce in space engineering. Slow international process to conceive and prepare for future human spaceflight/exploration (beyond ISS) endangers continuity of human spaceflight activities that would affect also. Minor role in some satellite-related fields such as VSAT Excessive reliance on ITAR-free commercial offerings may result in less-than-optimal cost structures Better Decisions Better Future 26

27 External Origin Internal Origin Russia 2009 Rank: 3 STRENGTH Helpful WEAKNESS Harmful Strong space legacy based on U.S.S.R, technology, assets, and organization Industry-leading launch platforms and capacity National reinvestment of Russian military, and refocus within the country s centralized military space organization ISS participation and other partnerships with Europe and the provide access to leading-edge technology Continued development of wholly-owned and operated Vostochny launch facility, as opposed to partially owned Baikonur facility in Kazakhstan Some strategic formerly U.S.S.R. assets located in newly-independent states (NIS) Military space activities are not cascaded through all branches of Russian military Although space industrial base is world-class, commercial aerospace sector has only moderate international presence Quality of post-secondary engineering education varies widely Loss of significant human capital due to competition with the private sector inside Russia and also to emigration largely to Canada, Europe, Israel, and the US OPPORTUNITY Cooperation with newly independent states of former USSR creates leadership and export opportunities can provide increased expertise and exports to emerging Asian actors Reemphasis on Asian markets and partners can create market niche Russian enterprises can support new product development surrounding operation of GLONASS THREAT NIS, particularly Ukraine and Kazakhstan, create access risks to launch and spaceport facilities Economic volatility has affected more severely than other leaders over the past decade, leading to doubts about the long-term viability of and Vostochny projects Failure of efforts to commercialize GLONASS would result in limited return on a substantial investment Better Decisions Better Future 27

28 External Origin Internal Origin China 2009 Rank: 5 STRENGTH Helpful WEAKNESS Harmful Track record of incremental space advancements interspersed with rapid substantial achievements Bold strategy and objectives, supported by strong government focus and resources Strategic launch platforms with consistent success Concerted investment in technical institutes will, over time, build a strong human resource base Cost and pricing competitiveness supported by government subsidies Diverse range of programs covering all major segments OPPORTUNITY Emerging domestic aerospace sector, if commercialized, could increase space-related exports Leverage the successful launch record and competitive launch price of the Long March vehicle to expand presence in international commercial launch market Develop international partnerships in lunar, manned, and Marsfocused space programs Leverage commercial space resources of Hong Kong, including the headquarters of important satellite communications providers Lack of transparency within the civilian and military space organization Closed environment represents a barrier to entry for international commercial segments and investment, such as satellite communications Limited role and experience of private-sector actors Limited role of civil society in space activity Lack of international agreements with leading space players minimizes scale and global reach Lack of NewSpace activity such as space tourism and entrepreneurship Limited involvement from financial sector and other support industries THREAT Trying to do too much too fast may result in broad but thin technology base The more increases its international commercial presence, the more it may encounter issues of intellectual property rights Increasingly global commercial operations by other leading countries have competitive edge over nascent Chinese industry Political or military posturing could inhibit the benefits of commercialization and international partnerships Better Decisions Better Future 28

29 External Origin Internal Origin India 2009 Rank: 7 STRENGTH Helpful WEAKNESS Harmful Cabinet-level focus on civil space sector Year-on-year funding increases and indirect investment via government ownership of space services Highly skilled and motivated human resource base and a government policy to support education Increasingly world-class technology base and positive track record Strongly articulated linkage between national space goals and economic development Immense domestic market, particularly for satellite services though contingent on continued economic development Strategy of international collaboration and partnership with leading space powers OPPORTUNITY Extensive ties to other major space programs provide opportunities for collaboration Potential to improve US-Indian space ties government and commercial as is perceived by policymakers to be an important ally Recently signed political accords between India and Association of Southeast Asian Nations (ASEAN) nations could lead to regional commercial or intergovernmental agreements English-heritage legal and property rights regimes ease partnering with the West Ability to leverage IT and software development capabilities Low-cost of production could stimulate exports Few proven cutting-edge space applications or technologies Telecommunications policy that inhibits innovation and development of space-based services, such as satellite radio, consumer broadband via satellite and spectrum issues Commercial marketplace remains immature and highly dependent on domestic government programs Government ownership of key infrastructure distorts the commercial marketplace In absolute terms, ISRO funding is significantly smaller than leading space powers Weak, but improving, military space program, organization, and assets THREAT Strong regional and global competitors in the launch and manufacturing arena could limit market share US and European firms will likely continue to dominate high-end technology and payload markets in near term Space relations with US and could sour if there is a resurgence of tension in India-Pakistan relations Better Decisions Better Future 29

30 External Origin Internal Origin South Korea 2009 Rank: 8 Helpful Harmful STRENGTH Recent ramp-up of space activities provide a foundation for future activity Moderate aerospace sector, and strong subcomponent sector Some limited experience building satellites Strong space vision and increased budget Deepening international partnerships with leading space powers OPPORTUNITY Leverage international partnerships with, US, and including the ISS program Increase exports of space electronics and components tied to hybrid services such as telecommunications equipment, GPS devices, etc. Leverage strengths in information, communications, and telecommunications (ICT) products and services WEAKNESS Limited military space assets and organization Lack of commercial space policy, as well as a deliberate strategy for commercialization Relatively weak private-sector space business, with limited finance and support services THREAT Geopolitical tensions between North and could negatively impact South Korean commercial development Lack of industry scale could limit South Korean emergence in the international launch market South Korea s export-driven economy may experience a longer-term economic recession, impacting short and long-term budgets Better Decisions Better Future 30

31 Japan Snapshot Better Decisions Better Future 31

32 External Origin Internal Origin Japan 2009 Rank: 4 STRENGTH Helpful WEAKNESS Harmful Passage of Basic Space Law creates a clear policy-making framework and impetus for government-wide space focus, planning and investment Merger of three organizations into JAXA, combined with JAXA Vision 2025, has helped strengthen the space agency Established history of space activities, exploration programs, and launch programs Major ISS participant with new Kibo module and HTV Very strong, world-class industrial and technological foundation Comparatively low prioritization of civil space spending as a proportion of national budget Modest aerospace industry overall, with lack of global reach among Japanese space manufacturers Limited civil society focus on space Advantages of strong individual institutions and universities offset by somewhat limited academic network of space programs and activities OPPORTUNITIES Potential for new Basic Space Law to have cascading effects throughout government and commercial sectors Improved leverage and benefits from strategic relationship with US Possible increased role in ISS, for instance to fill spaceflight gaps linked to Space Shuttle retirement Increasing investment in defense and homeland security could include space systems Focus on disaster management could leverage regional leadership position Increasing internal and external discussion/collaboration can promote knowledge-sharing and innovative new approaches THREATS Lack of financial and support industry limits overall availability of financing, especially in a recessionary environment Japan is yet perceived as a leader in entrepreneurial space or space commerce, limiting its ability to forge dynamic business relationships with external partners Japan in not yet viewed internationally as a consistently advancing space contender which may reduce the confidence of international governmental partners in Japan s ability to sustain multi-decadal space goals Major redirection of US human spaceflight program could have implications for Japanese astronauts Better Decisions Better Future 32

33 Further Enhancing Japanese Space Competitiveness Better Decisions Better Future 33

34 Perfect Timing Japan s Basic Space Law, JAXA renewal, and creation of the Strategic Headquarters for Space Policy (SHSP) all point to new prioritization and focus Japan s re-consideration of its national and commercial space objectives comes at the right time Worldwide economic restructuring: risks, but also opportunities Major changes in leadership: In Japan, the United States, Europe, and elsewhere Many space agencies currently engaged in top-to-bottom policy reviews Renewed international focus on big goals Human spaceflight The Moon Mars Understanding the Origins of the Universe Mitigating Global Warming and Climate Change Many avenues for cooperation: business-to-business, government-to-government, and public-private partnerships Cooperation is the new competition. Better Decisions Better Future 34

35 Viewed as an excellent space collaborator Japan Starts With Many Advantages Strong partnerships with US and Europe US has flown more missions with Japan than any other country Internationally acknowledged leadership World-class in some cases world-leading quality of technology US contacts have called Japanese ISS equipment exquisite Precision manufacturing Some of the most advanced instruments, mechanisms, and hardware in the world Potential to emerge, in global perception, as regional space leader Futron s 2009 SCI identifies Japan as current top-ranked nation in Asia Plenty of successful experience going global Japan has pioneered many new technologies on the world stage Japanese business history offers myriad examples of how to transform an initial strength into a worldwide presence and brand Better Decisions Better Future 35

36 How to get from here to there? A bold vision and a roadmap are needed Challenging and coherent goals many pathways for getting there Identify incremental actions needed, and assess progress along the way Here and Now Then and There Where Japan Is Milestones Where Japan Wants to Be Plan Implement Execute Monitor Act (and React) Re-Assess Better Decisions Better Future

37 Main Strategic Issue Japan can leverage its current government, industry, and human capital strengths into More efficient and cost-effective supply chains More productive innovation spirals Greater global commercial presence To do so, Japan should ask where it could, and should Lead Compete Cooperate Invest Better Decisions Better Future 37

38 Uniquely Japanese Strengths Success begins with building on qualities that are uniquely your own. These first 50 years of space activity are not the end; This is only the beginning. Better Decisions Better Future 38