Tokyo, alarmed by the global dominance of Google and other foreign internet services, is spearheading a project to try to seize the lead in new search technologies for electronic devices.
The push has been sparked by concerns in Japan that the country's pre-eminence in consumer electronics has faded and value in the technology industry is moving away from hardware.
As South Korean and Taiwanese electronics companies churn out products nearly identical to those of the Japanese majors there are fears in Tokyo that the country's manufacturers are falling behind in innovation.
"The question is how Japanese companies like Sharp and Matsushita can be encouraged to provide services. They clearly have the know-how to build things," says Toshihide Yahiro, director of the information service industry division at the ministry of trade. "The key to Japan's competitiveness has been our core technology, but we need to create a new value-added service that is personalised."
The shift of focus away from hardware echoes attempts by some of the biggest personal technology companies to become stronger in software and services. In one of the most prominent examples, Nokia last week outlined plans for an online music store and other services. - ( Financial Times Service )
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