Japan

Italian culture is highly appreciated by the Japanese, who often visit Italy for study, work, tourism and scientific purposes. Economic relations and trade between Italy and Japan are constantly and gradually growing, thanks also to the many common elements that facilitate bilateral cooperation between the two economies at both institutional and commercial levels. The social challenges posed by an ageing population, growing energy needs and the ensuing need for clean and alternative energy sources, and manufacturing excellence with high value-added production characterise the economic systems of the two countries.

With regard to research and technological development, there are several areas of common interest, in particular in the fields of renewable energy, the development of smart cities, biotechnology and nanotechnology, pharmaceuticals, robotics and home automation. The largest investments in Italy by Japanese private investors and the main collaborations between the two countries are in the energy, engineering and transport sectors.

Japan is a strategic market for Italy thanks to its position on the Asian continent, but also because of a number of factors: a system of distribution and logistics infrastructures of exceptional quality (intermediaries, transport and telecommunications); the presence of a large middle class with a high income; a market characterised by constant innovation in processes and products; and growing trade flows with Europe, which are expected to intensify further thanks to the Economic Partnership Agreement (EPA) that came into force on 1 February 2019.

The benefits of the EPA, which eliminated duties on around 90% of European exports to Japan, were immediately tangible for the agri-food sector. In fact, with its low food self-sufficiency, Japan is the world’s fourth largest importer. The agri-food sector is one of the main components of Italian exports to Japan, which have fully benefited from the advantages of the Partnership Agreement. The leading sectors of Italian exports to Japan also include textiles-fashion (clothing, leather goods and accessories), chemicals, pharmaceuticals, machinery and transport equipment. On the other hand, the driving sectors for imports from Japan are transport equipment, machinery and appliances, chemicals, pharmaceuticals and medical products.

In terms of trade, Italy is a key partner for Japan. In 2021 it remained the second largest EU supplier after Germany, with a market share of 1.7%.

The Emilia-Romagna Region has had relations with the Ibaraki Prefecture, especially in the cultural sphere, since 1987. The Prefecture is also home to the Tsukuba Science City, which consists of 60 national research institutes and two universities, grouped into five thematic areas: higher education and training, building research, physical sciences and engineering research, biological research and agricultural research. The Tsukuba Science City was built to relieve congestion in Tokyo and to conduct high-level research and education by gradually moving national R&D and educational institutions there. Today, the City is the largest science technology centre in the country, home to around 150 public and private institutions and companies.

IURC project

Cooperation project for innovation between Regions of the EU and Japan. Under the EU programme for International Urban and Regional Cooperation (IURC), six EU Regions and five Japanese Prefectures have been selected to participate in the EU-Japan Region-to-Region Innovation Cooperation project. The Regions of the European Union are: Auvergne-Rhône-Alpes (France), Basque Country (Spain), Catalonia (Spain), Emilia-Romagna, Ljubljana Urban Region (Slovenia), Val d’Oise (Paris Region) (France). The Japanese Prefectures are: Aichi Prefecture, Kyoto Prefecture, Osaka Prefecture Hiroshima Prefecture and Oita Prefecture.

The objective of the project is to support European Regions and Japanese Prefectures in exchanging best practices and knowledge to improve and internationalise their respective regional innovation strategies while promoting international value chains. The cooperation will be based on the smart specialisation strategies of the EU Regions and the regional innovation and competitiveness policies of the Japanese Prefectures. They will focus on common policy priorities in the EU and Japan, such as green transition, industrial transformation, digitalisation and social innovation.