Vol.8 No.2 2015

Research paper : Study of the top 70 NEDO Inside Products (M. YAMASHITA et al.)−75−Synthesiology - English edition Vol.8 No.2 (2015) products intended for large-scale manufacturing facilities are particularly susceptible to general economic trends. Once these products are introduced, only the operational cost could be added to the sales figures; which is possibly a trend specific to the sector. In general, the products with large sales figures see a decline in unit price due to commoditization; however, their sales could be secured or even increased to certain degree by increasing sales volumes in/outside the country. We also find many of the products having marginal sales figures but contributed greatly to gross social benefit or industrial competitiveness (e.g., a significant CO2 reduction and substantial international market share as a core product) under the categories addressing social issues (e.g., environmental issues, safety and security, and quality of living).3.2 Evaluation of NEDO Inside Products’ net salesTable 2 shows estimated NEDO’s investment, cumulative sales for the past five years, most recent sales, and sales forecasts for the next ten years of Top 70 NEDO Inside Products. In respect to these products’ cumulative R&D expense, 640.9 billion yen, the most recent sales can be estimated 4.08 trillion yen; the cumulative sales for the last five years 14.28 trillion yen; and the 2011-2020 sales forecast 69.1 trillion yen. Because it is often problematic to disclose a product’s sales recorded by a single company, the figures were aggregated when several companies deal in the same NEDO Inside Product. The proprietary products are placed in “Others” category.[19] Since NEDO projects are funded by taxes, we also estimated future tax revenue and potential job opportunities Top 70 NEDO Inside Products would offer. To this date, 640.9 billion yen was invested in the projects associated with Top 70 NEDO Inside Products. The total amount of investment over the next ten years is, in turn, expected to be 69.1 trillion yen, and according to Eq. (1) below, the expected tax revenue will be 1.291 trillion yen. It is now clear that the tax revenue from the products’ sales for the next ten years is likely to exceed the amount invested in NEDO projects.Cumulative national expenditure for Top 70 Inside Products: Approx. 640.9 billion yen• Corporate income tax (approx. 69.1 trillion yen) × 3.66 % (pre-tax profit rateTerm 1) × 40.69 % (effective corporate tax rate) = approx. 1.291 trillion yen … Eq.(1)NEDO have invested approximately 3 trillion yen in R&D projects over the past 30 years, and from the results above, 640.9 billion yen has contributed to sales. Nonetheless, it is still unknown how the remaining 2.36 trillion yen investment has contributed to the sale although this certainly has brought about vocational training opportunities and technological ripple effects. At this point, we have concluded that the sales of 69.1 trillion yen could be expected in the next ten years from the 3 trillion yen investment. Further investigation is needed in order to see to what extent the investment of 2.36 trillion yen that seemingly has no effect on the sales might be related to other economic impacts and gross social benefit.3.3 Job creation (for 2010, and cumulative total for 2011-2020)The impact of created job opportunities was calculated from the rate of labor cost against the product sales in domestic manufacturing sectors and the average income (FY 2004-2008 performance) based on the most recent sales and the Table 2. Sales performance of Top 70 NEDO Inside Products and their sales forecast“Others” includes: Robots, large displays, waste power generation, vacuum insulators, chlorofluorocarbon decomposition, HD drives, semiconductor manufacturing technology, CNG vehicles, eco-cement, MEMS, body fat scales, semiconductor bonding technology, nano-ion products, x-ray CT diagnostic equipment, energy-saving construction machines, insulators for electronic materials, industrial heat pumps, standby power digital copiers , ice thermal storage systems, sulfur-free light oil, rapid sensitive analyzing systems for oligosaccharides, high-performance high-reliability servers, superconducting materials, stoker furnaces, photocatalysts, etc.Agent for realizing safe, secure, and comfortable livingContributor to solving environment and energy issuesTechnological stimuli to a wide range of fieldsBoosters of Japanese industry’s international competitivenessPioneers of new marketSolar power generationFine ceramicsMEMSSemiconductor productsBlue-ray productsResidential fuel cellsResidential HP hot water supply systemsGas turbinesWind power generationTotalOthersBio microscopesWater treatment (membrane separation, etc.)Waste power generationHigh-performance industrial furnacesFuture sales forecast (cumulative for 2011~2020)Sales performanceNEDO budget outlay(Unit: 100 million yen)Most recent sales per year (2010)Cumulative R&D costAverage R&D cost per fiscal yearCumulative sales for past five years691,200142,80040,8006,4095843512491235185111019201,735855321548806128025012380100118981,9139,46040,100196,00015,8002,6002,6003,4001205,1005004001002020040010046,4007,30011,90016,00030014,5001,7001,2001104001,5001,30090219,40041,10040,10038,50011,60051,50065,0006,70010,5001,1002,5006,0001,200


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