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Masaru Yarime

In this chapter, I examine the processes of developing smart cities in Japan by focusing on the roles of the key actors in the private and public sectors and the influences of the institutional conditions including regulations and public policies. The key actors in developing smart cities in Japan are mainly large, well-established companies in the electric (power generation and distribution) and electronics (appliance and equipment) industries, with knowledge and technological domains concerning renewable energy, energy storage, community energy management, and applications for home appliances and electric vehicles. Policies and regulations influencing the innovation system of smart cities include economic incentives to promote renewable energy technologies, liberalisation of energy markets for new entrants, participatory processes of road mapping on key technologies, localisation of demonstration projects reflecting specificities, standard setting for component technologies, and platform creation for stakeholder partnerships including academia, industry, government, and civil society. A key implication for public policy is to facilitate communication and engagement with end-users in jointly creating innovation for smart cities.