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Reasons include the declining population and slow total factor productivity (TFP) growth, as has been widely highlighted. Additional reasons include the decline in investment in tangible assets since the late 2000s, as well as the decline in labor quality observed for the first time since the late 2010s due to the increase in part-time employment and the retirement of many skilled workers, the lack of improvement in the sluggish investment in intangible assets (where investment in economic competencies such as in-house training of workers and organizational structure is particularly low), and the narrowing of the gap with other East Asian countries such as China. Moreover, the rapid advances in the use of digital technology as a result of the COVID-19 pandemic and changes in the international division of labor due to the confrontation between the U.S. and China may have a significant impact on the future growth path of the Japanese economy. This project aims to carefully examine structural changes in the Japanese and East Asian economies and contribute to the design of growth strategies based on evidence through the following: (1) Analyses of changes in labor and capital inputs (including intangible assets) as well as TFP growth at the detailed industry level using the Japan Industrial Productivity (JIP) Database. (2) Analyses of the slowdown of the Chinese economy using the China Industrial Productivity (CIP) Database. (3) International productivity comparisons and analyses in collaboration with the World KLEMS, EU KLEMS, and Asia KLEMS projects, and the OECD. (4) Analyses of the impact of the technological developments referred to as the fourth industrial revolution, the internationalization of firms, and natural disasters such as the COVID-19 pandemic on productivity dynamics, using official firm and establishment data, and analyses of the effects of productivity dynamics on the Japanese economy. (5) Analyses of the causes of regional productivity differences in Japan and the impact of regional development and other policies through collaboration with the Regional-Level Japan Industrial Productivity (R-JIP) project and construction of a detailed productivity database by industry and commuting area. (6) Extension of data on listed firms in Japan, China, and Korea included in the East Asian Listed Companies (EALC) database to most recent years using firm-level data from the Development Bank of Japan's Corporate Financial Databank. Comparison of the impact of R&D on productivity using these data. July 1, 2021 - December 31, 2023 (During the research project period, the research activity period is set from July 1, 2021 to June 30, 2023, and the data usage reporting period is set from July 1, 2023 to December 31, 2023.) Major Research Results 2023 RIETI Discussion Papers 23-E-049"Till Death Do Us Part: Relationship shocks, supply chain organization and firm performance" (Timothy DESTEFANO, ITO Keiko, Richard KNELLER and Jonathan TIMMIS) 23-E-048"Which Employers Share Rents? A firm-level analysis for Japan" (IKEUCHI Kenta, FUKAO Kyoji, Cristiano PERUGINI and Fabrizio POMPEI) 23-E-046"The Impacts of Bilateral Value Chains between Japan and Korea on Value-added Creation of Manufacturing Firms" (HUR Jung, KWON Hyeog Ug and SONG Hangeul) 23-E-045"Product Dynamics and Macroeconomic Shocks: Insights from a DSGE model and Japanese data" (HAMANO Masashige and OKUBO Toshihiro) 23-E-043"Servicification of Japanese Manufacturing Firms and Its Impact on Corporate Performance in the Export Market" (MATSUURA Toshiyuki) 23-J-038"An Analysis of the Impact of Minimum Wages on Firm Dynamics" (FUKAO Kyoji, KIM YoungGak and KWON Hyeog Ug) 23-J-036"An Empirical Analysis of the Impact of Employee Aging on Innovation and Productivity" (FUKAO Kyoji, KIM YoungGak and KWON Hyeog Ug) 23-J-034"AI Adoption and Productivity of Japanese Firms: Spillover and innovation effects" (IKEUCHI Kenta, INUI Tomohiko and KIM YoungGak) 23-J-026"The Impact of Digital Transformation on Productivity and Resource Reallocation within Firms" (FUKAO Kyoji, INUI Tomohiko, KIM YoungGak, KWON Hyeog Ug and IKEUCHI Kenta) 23-J-023"The Effect of Resource Reallocation within Business Groups on Macroeconomic Total Factor Productivity" (FUKAO Kyoji and KIM YoungGak) 23-J-022"Comparison of TFP Growth Rates and Dynamics between China, Korea and Japan Using the East Asian Listed Companies (EALC) Database" (FUKAO Kyoji, INUI Tomohiko, KIM Young Gak, KWON Hyeog Ug and ZHANG Hongyong) 23-J-021"Econometric Analysis on the Impact of China Shock on Employment in Japan" (HANEDA Sho and KWON Hyeog Ug) 23-J-020"The Impact of Robot Imports on the Performance of Chinese Firms" (YANG Qizhong, INUI Tomohiko and KIM Young Gak) 23-J-016"Resource Reallocation across Firms during the COVID-19 Pandemic: Analysis of productivity dynamics using firm-level micro data" (IKEUCHI Kenta, KIM Young Gak, KWON Hyeog Ug and FUKAO Kyoji) RIETI Policy Discussion Papers 23-P-007"Progress of Digitalization and Industrial Revitalization: Employment and productivity dynamics of firms in Japan" (IKEUCHI Kenta, ITO Keiko, KIM Younggak and KWON Hyeog Ug) 2022 RIETI Discussion Papers 22-E-106"What Do R&D Spillovers from Universities and Firms Contribute to Productivity? Plant level productivity and technological and geographic proximity in Japan" (René BELDERBOS, IKEUCHI Kenta, FUKAO Kyoji, KIM Young Gak and KWON Hyeog Ug) 22-E-105"Does Industry Agglomeration Attract Productive Firms? The role of product markets in adverse selection" (René BELDERBOS, FUKAO Kyoji, IKEUCHI Kenta, KIM Young Gak and KWON Hyeog Ug) 22-E-056"Technical Barriers to Trade, Product Quality and Trade Margins: Firm-level evidence" (DOAN Thi Thanh Ha and ZHANG Hongyong) Research Areas Research Programs (FY2024-2028) Research Programs (FY2020-2023) Macroeconomy and Low Birthrate/Aging Population International Trade and Investment Regional Economies Innovation Industry Frontiers Raising Industrial and Firm Productivity Human Capital Integrated Research Policy Assessment Special Projects Research Programs (FY2016-2019) Research Programs (FY2011-2015) Policy Research Domains (FY2006-2010) Major Common Themes: 2005 Major Common Themes: 2004 Projects Survey Communications Newsletter RSS Feed Facebook X YouTube Research Areas Research Programs (FY2024-2028) Research Programs (FY2020-2023) Research Programs (FY2016-2019) Research Programs (FY2011-2015) Policy Research Domains (FY2006-2010) Projects Survey Fellows Research/Policy Papers Discussion Papers (English) Discussion Papers (Japanese) Policy Discussion Papers (English) Policy Discussion Papers (Japanese) Technical Papers (English) Technical Papers (Japanese) Non Technical Summaries List of Articles in Journals Research Digest Discussion Papers Search Publications RIETI Books (English) RIETI Books (Japanese) History of Japan's Trade and Industry Policy Authors' Words Other Publications (English) Other Publications (Japanese) Events Symposiums Workshops BBL Seminars Archived Seminar Series Data JIP Database R-JIP Database CIP Database Industry-Specific Nominal and Real Effective Exchange Rates AMU and AMU Deviation Indicators JSTAR RIETI-TID RIETI FDI Database ICPA Project Links Articles Column Special Series Newspapers & Magazines Fellows' Works VoxEU Column From IZA Perspectives from Around the World Other Contents RIETI Report Policy Update Keizai Sangyo Journal (METI Journal) About RIETI Privacy Policy Site Policy Site Map Help Contact METI Web Site Research Institute of Economy, Trade and Industry, IAA (JCN 6010005005426)JCN: Japan Corporate Number Opinions expressed or implied on this website are solely those of the author, and do not necessarily represent the views of the Research Institute of Economy, Trade and Industry (RIETI).Titles, numbers, specific names, etc. on this website are as of the date of publication. 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