Japan Education Technology
Japan sets numerical targets for digital talent development and offers potential opportunities for U.S. digital upskilling solution providers.
In September 2021, the Government of Japan (GOJ) prioritized the digital transformation process by launching the “Basic Act on Forming a Digital Society.” Beyond just IT companies, demand is growing rapidly for digital talent in other industries. COVID-19 accelerated digital transformation efforts due to the urgent need to develop newer work environments. However, a shortage of digital talent is making this process more challenging. According to Japan’s Ministry of Economy, Trade, and Industry, there will be a human resource shortage of up to 8 million IT professionals by 2030. With these estimates, the GOJ is aiming to train 4.5 million people in the digital space annually by 2025.
To address this need for more talented human capital, Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT) budgeted $74 million in fiscal year 2022 (April 1, 2022 – March 31, 2023) for lifelong learning in digital reskilling and upskilling. In addition, MEXT budgeted $26 million to enhance education in mathematics, data science, and artificial intelligence (AI) at universities and technical colleges. MEXT is promoting students to register for introductory certification courses and e-learning programs to strengthen IT literacy (approx. 500,000 students per year); develop basic skills to apply mathematics, data science, and AI to one’s field of expertise (approx. 250,000 students per year); and develop expert-level digital talent by 2025 (approx. 2,000 students and 100 top class students per year).
There is a good market opportunity for U.S. companies and educational institutions to partner with Japanese institutions to offer coding bootcamps, short-term digital upskill courses in blockchain technology, augmented/virtual reality, AI, cybersecurity, etc. It is essential to customize training programs to the Japanese market, such as by tailoring scenario-based exercises to Japanese culture and business practices.
For more information about this market opportunity in Japan, please contact the U.S. Commercial Service at Office.Tokyo@trade.gov.