Innovation, Agricultural Productivity and Sustainability in Japan

Foreword
Acknowledgements
Acronyms
Executive Summary
Chapter 1.  Assessment and recommendations
	1.1. Enhancing innovation, productivity and sustainability is a key challenge in the food and agriculture sector globally and in Japan
	1.2. Japan’s agriculture is at a turning point
		After three decades of contraction, Japan’s agriculture show some signs of growth
		Structural change has driven agricultural productivity growth in Japan
		Sustainability performance of agriculture has significant room for improvement
		Demographic trends pose one of the biggest challenges
		Policymakers face new policy challenges
	1.3. Developing policy and market environments more conducive to innovation and entrepreneurship in agriculture
		A more demand-oriented approach would expand overseas markets for Japanese agro-food products
		Commercial banks should play a greater role in agricultural finance
		Farm management policy should have a greater link with small and medium-sized enterprise policy
		More competitive input and output markets strengthen the sector
		More diverse formats of land consolidation would contribute to productivity growth in land-intensive farming
		Infrastructure development policy should adapt to the emerging technology environment
		Agricultural support policy can be more targeted to innovation, productivity growth and sustainability
		Despite progress, policies to support rice prices continue to be a major part of agricultural policy
		Policy programmes cover a large part of the risk
	1.4. Sustainability policy objectives should be integrated in agricultural policy framework
		Japan should develop an integrated framework of agri-environmental policy
		Sustainable use of water resource requires more effective management of irrigation infrastructure
	1.5. More collaboration between public and private actors, and across sectors would strengthen Japan’s agricultural innovation system
		Innovation in agriculture needs a more systemic approach beyond R&D
		More engagement of producers, agro-food and other industries in agricultural R&D is key to enhancing demand-driven and open innovation
			The collaboration in agricultural R&D among AIS actors could be further strengthened
		More international collaboration in agricultural research would allow Japan’s AIS to benefit from cross-border technology spill-overs
	1.6. Enhancing farmers’ skills to innovate is a fundamental part of innovation policy in agriculture
		Innovation in agriculture needs wider skills to adapt emerging technologies
		Professional education in agriculture should correspond better to needed skills
		Public agricultural extension systems should evolve to increase the role of private technical service providers
	References
Chapter 2.  Overview of the food and agriculture situation in Japan
	2.1. General economic context
		Agriculture in the Japanese economy
		Demographic change
	2.2. Characteristics of the agricultural and agro-food sectors in Japan
		Production
		Consumption
		Trade
		Farm structure
		Farm income
	2.3. Productivity performance of agriculture in Japan
	2.4. Sustainability performance of agriculture in Japan
		Nutrient balance
		Pesticides
			Water
		Energy use and GHG emissions
			Climate change
	2.5. Summary
	Notes
	References
Chapter 3.  General policy environment for food and agriculture in Japan
	3.1. Macroeconomic policy environment
	3.2. Public governance
	3.3. Trade and investment policy
		Trade policy
		Foreign Direct Investment (FDI) policy
	3.4. Policy environment for entrepreneurship
	3.5. Financial market policy
	3.6. Infrastructure development policy
		Information and Communication Technology (ICT) infrastructure
	3.7. Natural resource management policy
		General environmental policy
		Main environmental regulations
		Specific regulation on farm inputs and emissions
			Fertiliser
			Pesticides
			Livestock manure management
		Climate change policy
		Water resource management
		Land use policy
	3.8. Key points
	Notes
	References
Chapter 4.  Agricultural policy environment in Japan
	4.1. Agricultural policy objectives
	4.2. Overview of agricultural policy
	4.3. Agricultural trade policy
		Promotion of bilateral and regional Economic Partnership Agreements
		Export promotion policy
	4.4. Domestic agricultural policy
		Domestic price support programmes
			Rice
			Milk
		Programmes to support farm income or reduce costs
		Programmes to support farm risk management
			Price and income stabilisation payments
			Agricultural insurance programmes
			Preferential tax treatment
	4.5. Agri-environmental policy
	4.6. Key points
	Notes
	References
Chapter 5.  Agricultural innovation systems in Japan
	5.1. General characteristics of innovation systems in Japan
		National innovation policy framework
	5.2. Main actors and governance of the agricultural innovation system
		The role of AIS actors in Japan
			Government
			National agricultural research organisations (NARO)
			Prefectural agricultural research organisations
			Prefectural extension services
			Universities
			Private companies, associations and producers
		Governance of AIS in Japan
			Policy framework and funding mechanisms
			Monitoring and evaluation
	5.3. Investment and outcomes in agriculture and food R&D
		Trends in public and private R&D investment
		R&D outcomes
	5.4. Creating knowledge markets and networks
		Public-private collaboration in agricultural R&D
		Intellectual property protection
		Preferential taxation and R&D
	5.5. International R&D collaboration
		Promoting international joint research
		Technology in developing countries and responses to global issues
		Participation in international frameworks for agricultural research
	5.6. Key points
	Notes
	References
Chapter 6.  Human capital development in Japan’s agriculture
	6.1. Changing skill needs for agriculture in Japan
	6.2. Agricultural education
	6.3. Policies to support new entrants and farm succession
		Policies to support new entrants to farming
		Measures to facilitate a smooth farm succession
	6.4. Extension and advisory service
	6.5. Labour market policy
	6.6.  Key points
	References
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