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Hello, everyone. How are you?

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My name is Ataka.

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I was asked to come here today[br]to speak about Japan's current situation,

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and our prospects for the future.

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My talk is titled "Japan Resurgence."

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(Laughter)

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Soon you will see why I chose this title.

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Let me recap our current situation.

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I think the biggest change in the world[br]over the past 30 years

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is that people carry portable computers.

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30 years ago, the fastest supercomputer[br]of the time was built by Cray.

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Now, you carry something[br]over 10 times faster in your pocket.

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iPhone 6 is 20 times faster.

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iPhone 7 and over is even faster.

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Everyone is carrying around [br]an unbelievably fast computer.

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Bandwidth is also increasing[br]at a tremendous rate,

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over 1,000-fold during the last decade.

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In the 20 years since[br]the start of "Yahoo! Japan,"

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it has become over 10,000 times faster.

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And with the arrival of 5G,

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the speed is set to be[br]another 1,000 times faster.

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OK?

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Recently, the biggest packet plan[br]increased from 15GB to 50GB.

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In 5 to 10 years, a 1-month plan[br]will be something like 5 terabytes.

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The age of the 5TB plan is coming!

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(Laughter)

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What an amazing era!

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This is called "big data".

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A tremendous amount of data is emerging.

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Fortunately, computers are evolving[br]at an incredible speed.

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The number of chips is increasing[br]with remarkable momentum,

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so processing capability increases, too.

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Here is another lucky thing,

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which is mostly thanks to[br]the computers and data.

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We can now visualize data[br]which was previously impossible to see.

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We are running neural networks,[br]which couldn't be done before,

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and deep learning is up and running.

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So, all kinds of abnormal patterns[br]which were invisible before,

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hidden in a huge amount of data,

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these patterns are now becoming visibile.

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As a result, we live in a unique time,[br]close to an industrial revolution.

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The industrial revolution occurred[br]over the course of a few hundred years.

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Around the turn of the 19th century,

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over 90% of Japanese, Americans[br]and people in other areas

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were engaged in primary industry.

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96% in the U.S. at that time.

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But now, only a small percentage does.

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In spite of that, our current productivity[br]is much higher.

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Similarly, we now use most of our time [br]for information processing,

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but with the next industrial revolution,[br]we will be released from that burden.

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I think we live in an extremely important,[br]and interesting time.

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We need to embrace living in this time.

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It is ridiculously lucky,[br]and super interesting.

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It's like living in a bonus round.

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(Laughter)

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Yes, it is.

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A professor at Berkeley claims[br]to have researched human productivity

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for the past 2,000 years, and actually[br]as far back as a million years.

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I don't know if he is correct,[br]but according to him,

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from the Roman Empire[br]to the industrial revolution,

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in those 2,000 years,[br]human productivity only doubled

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However, during the 150 years after that,

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the productivity skyrocketed[br]by nearly 100 times.

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But looking carefully,

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we are reaching saturation now,[br]from a macroeconomic perspective.

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The way things are right now,[br]we may soon see another big leap.

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Here is a very interesting sign.

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Let's look at market[br]capitalization rankings.

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Top ranks go to ICT companies

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from the information and communications[br]technology industry.

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Alibaba and Amazon are above Toyota,[br]one of the world's top automobile makers.

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As for GDP, measured[br]through gross value added,

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Japan has had no ICT sector[br]for the past 20 years,

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and we have had a shrinking economy.

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Actually, the tendency is similar[br]across the world:

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the ICT sector is the driver for growth.

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The interesting thing is,

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it is not so much the profit,[br]but the market cap that is really big.

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It seems a sense of "changing the world"[br]leads to success.

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In other words, this is an astonishing era[br]in which dreaming creates wealth.

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It is not hard work, but imagination[br]that generates national wealth.

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Keeping that in mind,[br]how should we move forward?

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I think the following three things are[br]very important.

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First, use a massive amount[br]of big data in various fields.

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Second, process the data[br]with tremendous power at affordable costs.

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Third, of course we need[br]world-class scientists and engineers

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to work very hard.

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Here we will need to face an inconvenient[br]truth that is rarely mentioned in Japan.

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The first data is...

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To tell the truth,

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it's really no competition.

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We aren't even close, in any field,[br]when it comes to using data.

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Of course there are autonomous cars[br]and other advanced technologies,

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but in terms of room sharing, car sharing,[br]and other industries that use data,

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personal information protection laws[br]make them impossible.

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In Japan, anyways.

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With autonomous cars, for example,[br]there are other problems.

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There is a high possibility[br]that Japan could make

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the world's top autonomous car.

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But look at Japanese roads -

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impossible!

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(Laughter)

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It is impossible!

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(Laughter)

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An old lady comes driving the other way

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yelling at you to get out of the way,

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so you have to pull into a driveway,[br]or back up 10 meters to pass each other.

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Automatic cars can't do that,[br]they completely stop.

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Some say to solve it with technology.

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Sure, we could make flying cars[br]or cars with legs.

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But the car would cost 30 million yen,[br]so it's impossible.

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Even if we try flying drones,[br]look at this.

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See?

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This is Minato-ku, Tokyo.

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It is a mixture of one-story[br]and 50-story buildings.

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Most of buildings in Paris are flat,[br]except for the Eiffel Tower.

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So they can use drone zones[br]to fly, but we can't.

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As for data processing,

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Basically, the only expense[br]for data processing should be electricity.

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But we pay a lot.

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Data processing costs are huge[br]in Japan for some reason.

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And how about data processing solutions?

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These are only a few of the options,[br]but there is no Japanese presence.

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So, Japan is far behind[br]on data processing.

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In fact, the situation is terrible.

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One of the core technologies,[br]deep learning, has a few key centers,

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and experts of ITC industry[br]gather in these areas,

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they are famous.

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They all live abroad,[br]mostly in the U.S. and U.K.

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This is the situation.

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You may think[br]there are engineers in Japan.

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Yes, there are many.

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But only 1/3 as many as the U.S.

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Notice the hidden area in the middle?

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We may think subconsciously[br]that Japan ranks second, after the U.S.

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That is not true.

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We are losing to China and India.

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This is our reality.

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Even fewer people are using big data,

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so we might actually[br]rank around 7th or 8th.

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There is a shortage[br]of people who work with numbers.

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Japan has 100,000 less yearly graduates[br]in science and technology than Korea,

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which has a population[br]of only 50 million.

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Korea and Germany consider themselves[br]to be tech-oriented nations;

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over 60% of their[br]college students major in science

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but only 20% in Japan.

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People like me who study[br]to get PhDs are considered strange,

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like some freak of nature.

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So what caused this situation?

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The number of the people[br]with analytical training is very small,

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1/3 of the number in the U.S.[br]per 100 people.

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Compared to Poland,[br]a math-oriented nation,

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we are one digit column lower.

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We lack not only people,[br]but programs as well.

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The U.S. didn't have any[br]data science programs either,

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but in just one year[br]they started over 500.

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In Japan, Shiga University will finally[br]open a program in spring, 2017.

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We have none at all.

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It is a complete shortage of personnel.

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Not only are people difficult to find,

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they don't have much enterprising spirit.

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We live in an era where anyone[br]could be the next Edison,

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and yet people lack motivation.

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We don't need otaku, we need people[br]who want to change the world.

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Of course we need hackers and geeks;

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we don't have enough of them,[br]and that is why we can't compete globally.

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(Laughter)

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We have had such an era before.

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We have had very difficult times.

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Once again, we have[br]almost nothing to offer.

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Do we have no hope in Japan?

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Looking back to the Industrial Revolution,

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it actually had three phases.

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New technologies were invented[br]in the late 1750's,

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and then they were put to practical use.

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Finally they came together even further,

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forming a kind of intricate ecosystem.

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What was Japan doing at that time?

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During Phase 1,[br]samurai were tying up their hair.

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Over 90% of people worked in rice fields.

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That continued for over 100 years,[br]so Japan didn't participate in Phase 1.

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Then Japan suddenly adopted new technology

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and made tremendous progress.

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We made bullet trains and super computers,

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and Japan became a high-tech nation.

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Once again,[br]we have obviously missed Phase 1,

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but let's not worry about that.

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(Laughter)

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We should focus on preparing[br]for the upcoming Phase 2 and 3.

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This is my proposal.

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(Laughter)

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We still have potential.

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Japan didn't experience[br]Phase 1 in the past, either.

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So it's not a problem.

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(Laughter)

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The other big waves,[br]Phase 2 and 3, are coming!

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We should prepare to ride those waves.

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We are full of great concepts in Japan.

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We have Ghost in the Shell, Doraemon...

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there are so many excellent ideas.

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Wouldn't these would be perfect[br]for Phase 2 and Phase 3?

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(Laughter)

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We have material.

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We have ideas.

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We can win again!

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(Laughter)

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Here is an emotional line[br]from a recent film.

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"Japan rose up through scrap and build,

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and we will rise again."

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These are lines[br]from "Godzilla Resurgence."

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We are faced with extreme circumstances,

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and we are almost scrapped.

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But let's try again!

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Let's start fresh,[br]and enjoy the competition.

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That's all I have to say.

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Thank you.

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(Applause)