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This study examines the reasons for research and development (R&D) inactivity in Japan’s construction industry. Specifically, it considers the structure of the construction industry in Japan and identifies contractors’ patterns of behaviour regarding R&D. This study examines the relations among the structure of the construction industry, contractors’ behaviour patterns and contractors’ performance. The theoretical background of analysis is based on the structure conduct performance model. This study examines the impact of the public works system in Japan on contractors’ R&D investments, using a regression analysis based on actual data. This study finds that only contractors with a high Keiei Jikou Sinsa score, which is an examination of subjective matters during the bidding process for public works projects, actively conduct R&D activity. This implies that R&D investment can enhance future profits; thus, Japanese Government’s bidding system impacts contractors’ R&D investments.

While most studies of the creative city focus on the policy of government or local government, we study the creative city framework led by a private company. Concretely, we study the creative city planning framework by Tokyu Corporation on the Futako-Tamagawa area in Setagaya Ward in Tokyo. Based on the three “T’s” framework, which was advocated by Florida, we examine how the private company develops a creative city. Moreover, we address how the government and local government support it. Thereby, we reveal the actual conditions of the private company work on the creative city and suggest a private company strategy and a governmental measure of urban development.

The current standardized approach for assessing credit risk under Basel III depends on ratings assigned by credit rating agencies (CRAs). However, this approach presents three problems. First, the definitions of ratings used by CRAs to assess the likelihood of default and recovery rates are not uniform. Second, because CRAs assign ratings according to through-the-cycle ratings, their ratings are less accurate in predicting near-term defaults and react slowly to credit events. Third, CRAs have assigned ratings to few Japanese companies. To improve the standardized approach under Basel III, we propose a new method for the evaluation of credit risk without CRAs. We analyse the influence of companies’ financial and non-financial attributes on default and how a default probability model is constructed using annual reports of companies listed on the Tokyo Stock Exchange spanning fiscal 2003–2009. Results indicate that our model predicts default as accurately as CRAs.