Keynote by Prof Chihiro Watanabe at the 12th International Symposium to be held in Finland

Keynote by Prof Chihiro Watanabe at the 12th International Symposium to be held in Finland

Start. Good afternoon ladies and gentlemen. The my presentation this afternoon is generative AIdriven innovation lead the way to the co-evolution between Japan, India and the global south towards decarbonization. I propose to build a co-evolutionary dynamism between Japan, India and the global south by fusing Japan’s manufacturing technology with the India’s DX capabilities to support the decarbonization of India the world’s third the largest CO2 emitter accelerate Japan’s DX improvement and decorization and the promote the global standardization of India’s traditional innovation system jugard and transfer it to the global south to this end we conducted a comparative analysis of 39 countries including 11 developed countries and 28 emerging countries to see how they are responding to the advancement of digitalization in five eras the pre internet era internet, smartphones, AI machine learning and generative AI era. This figure demonstrates the correlation between the economic growth and the rate of the internet penetration and suggest that the internet is spreading rapidly in emerging countries in rhyme with growth. is 0.58 in emerging and 0.55 in developed countries. That means the 1% GDP per capita increase the induces 0.58% and 0.55% internet usage the ratio increase respectively. Similarly, this figure looks at the correlation between the spread of the internet and smartphone usage rates and it clearly demonstrates that in response to the spread of the internet. Smartphone usage is rapidly increasing in emerging countries at the same pace as in developed countries. This is 0.90 and 0.89. This figure looks at the correlation between the rapid increase in smartphone usage and GDP per capita. And what is noteworthy is high elasticity across both emerging and developed countries particularly in developed countries as 1.54. This suggests a rifle effect in emerging countries and its contribution to growth in developed countries. These analysis demonstrate that digitalization has driven the reap frogging and formed a virtual cycle with accelerating growth. This can be attributed to a core evolution of rapid diffusion of advanced digital products in emerging countries comparable to that of developed countries as demonstrated in figure 4 which accelerates the further digitalization in developed countries. comparing the error stages correspond to the advancement of digitalization that demonstrate sharp increase corresponding to the advancement of digitalization suggests that the breakthroughs in AI machine learning that drive post smartphone digitalization may lead to expanded use of AI machine learning in emerging countries. This expansion translates into higher elasticity of smartphone ownership to growth as 1.54 in developed countries. This cooperational dynamism suggests the possibility of contribution to the expansion and sophistication of innovation in the creation of new function. This dynamism remains as of the co-evolution dynamism initiated by Amazon. Amazon the darling of the internet as the place R&D at the core of the is the management and development the crowd service Amazon web service in 2006. Amazon web service is a crystallization of R&D and while it creates the brand value it also the embodies a co-evolutionary structure that induces R&D as demonstrated in figure six and table three. This is a co-evolutionary model has enabled Amazon to pioneer the AI machine learningdriven innovation that are driving the digital transformation beyond the smartphone through the collaboration the Amazon web service the machine learning has been the accumulated and new function brand value have been created in a self-prop propagating way as demonstrated in figure 7 and table five. This new function will be distributed to the partra farms and contribute to their growth. By running from these growth web service will continue to the develop and expand by accumulating AI machine learning experiences as illustrated in figure 8. In this way, Amazon rapidly expanded the it R&D as illustrated in figure 9. Thus, the Amazon grew into the world top R&D firm as demonstrated in figure 10 by running and assimulating the growth of its partner firms. Amazon web service and generative AI GI that both pursue improved operational efficiency, enforced decision making, accelerated innovation, supply chain optimization and the data architecture construction. So in this context there are fundamental the commonalities between Amazon web service and GI at the same time both are in a co evolutional relationship as evolution of Amazon web service the cloud service stimulate the evolution of the GI which in turn induces further evolation of cloud services. Thus the AI machine learningdriven co-evolutional dynamism that encompasses the growth of the partner initiated by Amazon suggests a global theore evolutionary dynamism as contrasted in figure below running from the contrast as a role model the dynamics of the collaboration between Japan and India and subsequently Japan India and the global south as demonstrated in figure one can be envisaged. India of which has the world’s the largest the population of 1.4 4 billion people and is striving to promote manufacturing and digitalization under the banner of making India 2014 and digital India 2015 policies under the body administration is a center of attention of Japanese farms. Consequently, we have seen in the various expansion of Japanese farms, but the way the progress of AI machine learning driven innovation, the conventional pursuit of market and labor has shifted to brand body creation oriented collaboration such as those shown in table six. Recognizing the above trends, Dyking Dyking Industries Limited, a major air conditioner manufacturer, it moved it the core base for overseas expansion from Europe to India and strives to fuse the strength of its own manufacturing technology with the strength of the India’s DX capabilities. As shown in figure 12, DIY has been transferring Japan’s strength in on site the capabilities such as high quality control, precise technology capab capabilities and efficient production system to the India counterparts through active participation in making India thorough localization partnership with India institute of technology IIT the cooperation with local suppliers and job creation and technical education in this way dying is contributing to the global standardization of the India’s traditional innovation system jug that seeks flexible and inclusive solution in the face of adverse environments at the same time the king has successfully to assimulate India strength in DX capabilities through the collaboration with the technology partnership, adoption of digital tools and technology, building the smart factories, digitalization of customer experiences and running internal the innovation the culture through the continuous innovation and pursuit of sustainability. Dyking is a poised to meet the evolving demands of the Indian market and contribute to environmental protection. This dynamism has been successful in both in absorption of India’s DX excellence by Japanese farms and running of Japan’s manufacturing excellency technology by Indian firms. As a result, the onsite the capability of Japan manufacturing industry are being transferred to the wide range of production base in India as demonstrated in figure 13 through such effort as regional marketing strategies local the human resources development, expansion of production bases and provision of energy efficient products. Those that transport the on-site capabilities leverage it to improve the global standardization of the India’s traditional innovation system JAD in such way as the regionally tailored product lineups infrastructure development the regional marketing strategies and local base the human resources development such the global standard can be expected to lead to the product exports and technology transfer to Asian countries, Africa and Middle East. Thus the construction of a co-evolutionary relationship with a global s can be expected or can be attributed to commonality and co-evolutionality of Amazon web service the crowd services and the generative the GI consequently the collaboration dynamism between Japan India and the global south is expected to be constructed as illustrated in the very heading figure one. Thus the I conclude the generative AIdriven innovation lead a way to collaboration between Japan, India and the global south towards decarbonization. Thank you. Thank you professor. I really appreciate this is amazing vision that you are putting forward for the Indian jugar systems and and as well as and as well as making it making it a kind of a streamlined approach. Uh thank you. Thank you very much. Yes sir. Can we take a couple of questions? Yes. Yeah. Uh you have you have recommended uh some of the pathways on how we can be able to make the decarbonization through this entire jug systems. Uh do you have any other recommendations for the either way for the government of India or to the skill India project that needs to be taken care while making this effort? That’s the learning the not the direct hard technology but the soft technology the concept the way and manner that that should be either incorporated in the making India particularly it to attempt to strengthen the manufacturing technology and that is the fun for that that the collaboration between Japan’s the leading manufacturing firms with in India’s the firms with very significant the DX the capability it seem to be the very good the matching yes yes excellent yeah you are right actually so so I think I think I think this is a very very good takeaway that the soft soft power is is is evident in this entire process of skill building and we need to make use of that. It’s a it’s a it’s a very very valid valid proposition. Uh my second question would be around u right now India is facing a major challenge in the skill development sector uh and and you are you are giving a pathway for the digital transformation with the help of the very localized jugard and that’s will give the power to the next skill improvements within India. Do you see that skill uh transformation which happened in the developing countries during 1960s, 1970s versus now in India? Can you see some correlation between skill transformations? The coordation skill transformation the coordination between fat and fat uh skill transformation happened between developing countries in 1960s 1970s almost in last last century versus skill transformation happening in the developing countries versus developed countries. So that that’s the as I demonstrated in the uh earlier part of my presentation that the deep flocking the effect and the contribution of of the advancement of the digitalization could the transfer the skill transport transformation the in developed countries to the developing countries. Thereby making best the effective the utilization of the advancement of the digitalization that the emerging countries that could the bridge was the skill the uh transformation the uh experiences in developed countries into the their own. Right. Thank you. I think this is really amazing. Thank you for putting forward this future vision of leadership for this conference. I really appreciate on behalf of the council for creative education and laparanta university of technology I would like to thank you for the sharing your real powerful thoughts and also giving a direction for the future uh decarbonization in India and as well as global world as well how the global south will work. Thank you very much. Thank you very much, German. [Music]

Keynote by Prof. Chihiro Watanabe
Title: Generative AI-Driven Innovation and Co-Evolutionary Development for Decarbonization: A Japan–India–Global South Model
Event: 12th International Symposium on Creative Education
Date: May 2025
Venue: LUT University, Lahti, Finland

🧠 About the Presentation
In his keynote address, Professor Chihiro Watanabe presents a groundbreaking vision for global decarbonization and sustainable innovation using a generative AI-driven co-evolutionary model. His presentation explores the fusion of Japan’s advanced manufacturing capabilities with India’s rapidly expanding digital transformation ecosystem (DX), proposing a trilateral model that includes the Global South—particularly regions in Africa and Asia.

Using real-world examples like Daikin’s manufacturing partnership in India and Amazon Web Services’ AI/ML model, Prof. Watanabe demonstrates how mutual learning and innovation across borders can accelerate both economic development and climate action. A core theme is the transformation of “Jugaad”, India’s traditional frugal innovation system, into a global standard—showcasing how developing economies can offer scalable solutions to complex global challenges.

🌍 Why This Presentation is Important
Addresses the Climate Crisis: By aligning industrial collaboration with decarbonization goals, the model offers a path to mitigate climate risks across vulnerable regions.

Promotes Equitable Innovation: The focus on the Global South brings attention to how digital transformation can unlock dormant resources and talent in emerging economies.

Connects Policy with Practice: Through case studies and economic data, the talk provides practical insights for governments, corporations, and educators.

Highlights Leapfrogging Potential: The analysis of 39 countries reveals how smartphone and internet adoption can fast-track growth in underdeveloped areas.

Supports Skill Development: Emphasizing software and AI skills, Prof. Watanabe advocates for bridging skill gaps through Indo-Japan collaborations and education policy reforms.

📊 Key Themes and Topics Covered
Co-evolutionary innovation using AI and cloud-based systems (AWS model)

Japan-India technology partnerships (e.g., Daikin and TCS)

Jugaad as a universal innovation model

Economic leapfrogging through digitalization

Production Linked Incentive (PLI) scheme insights

Policy recommendations for Skill India and climate action

Data analytics on GDP growth and digital adoption across 39 countries

Role of education and skill-building in Industry 5.0

👨‍🏫 About Prof. Chihiro Watanabe
Chihiro Watanabe is Professor Emeritus at Tokyo Institute of Technology and a Guest Senior Research Scholar at the International Institute for Applied Systems Analysis (IIASA), Austria. He also serves as Director of the Forum of X-Center Japan (FoXc-J). A globally recognized expert in innovation systems, digital economy, and technology policy, Prof. Watanabe’s work focuses on the intersection of technology management, industrial transformation, and sustainable development. His research has shaped global understanding of AI-driven innovation and coevolution across national and sectoral boundaries.