Asian Science and Technology Forum Arlington, Virginia May 25, 2006

1. National Strategies to Foster Innovation in Japan:Achievements and Shortcomings of the Basic PlansWilliam A. BlanpiedGeorge Mason University Asian Science and Technology Forum Arlington, Virginia May 25, 2006

2. Outline of Presentation • Japanese Government Reform and Reorganization since 2001 • The First and Second Science and Technology Basic Plans (1996-2006) • Achievements • Shortcomings • The Third Science and Technology Basic Plan (2006-2011)

3. Critical Events (I) • November 1995: S&T Basic Law • Unusual for Diet to take initiative in drafting legislation • June 1996: 1st S&T Basic Plan • Emphasis on improving research infrastructure, particularly in universities • April 2001: 2nd S&T Basic Plan • Emphasis on reorientation or “reform” of research system • April 2006: 3rd S&T Basic Plan • Further reform of the research system; continuity with the 2nd Plan • Additional emphasis on creative younger people

4. Critical Events (II) • January 6, 2001: government reorganization • Creation of MEXT • MITI becomes METI • Cabinet Office created, with CSTP created within Cabinet Office • March 31, 2001: adoption of 2nd Basic Plan by CSTP • April 1, 2001: government laboratories became Independent Administrative Institutions • Example of AIST and “new” AIST • Autonomy from METI; radical reorganization of research facilities • Facilitation of cooperation with industry • April 1, 2004: national universities granted “corporation” status • National University Corporation Law (July 16, 2003) refers to “management autonomy and independence”

5. Critical Events (III) • 1998: Law to permit creation of Technology Licensing Organizations (TLOs) • 2000: Law granting Intellectual Property (IP) Rights to university professors • “Japanese Bayh-Dole Act” • NB: US Bayh-Dole Act gives rights to universities, not professors; similar to provision for AIST in Japan

6. Key Provisions of the 1st Basic Plan • Government to invest 17 trillion yen for research over five-year plan period • Introduction of system of limited-term appointments for researchers in national research institutes; • Creation of 10,000 post-doctoral research positions by the year 2000; • Measures to facilitate university-industry research cooperation; • An increase in the proportion of research support awarded on a competitive basis as opposed to more traditional formula-based funding; • Promotion of public understanding of science and the “establishment of a national consensus on science and technology.”

7. Principal Objectives of 2nd Basic Plan • Government to invest 24 trillion yen in research over five year plan period, or .86 percent of GDP growth over that period • Adopting a strategic approach to government research investments (i.e., establishing research priorities) • Building a competitive research environment • Enhancing the independence and mobility of young researchers • Improving the research evaluation system • Utilizing research outcomes by promoting cooperation among the academic, industrial and government research sectors • Promoting Regional Innovation • Enhancing communications with society

8. Adopting a strategic approach to government research investments • Priority areas • Life Sciences • Information Technology • Environment • Nanotechnology/Materials • Promotional Areas • Energy • Manufacturing Technologies • Social Infrastructure • Frontiers.

9. Commonalities and Distinctions • Commonalities and continuities • Limited term appointments/mobility • Emphasis on competitive research • Academic-industry cooperation • 1st Plan aimed to expand university research system • 2nd Plan also aimed at reorientation • Significance of the CSTP • 3rd Plan continues to aim at reform, particularly of personnel system • Emphasizes innovation • Emphasizes cooperation with other Asian nations

10. Significance of 2nd Plan for Japanese Science Policy • Prior to January 2001, no possibility for Japanese Government to formulate a coherent, effective science policy • Science policies formulated by separate ministries and agencies • Creation of CSTP within Cabinet Office has provided tools to formulate and implement such a policy • CSTP has exerted budgetary discipline • CSTP has used 2nd Basic Plan to help set its agenda • Significant MEXT and METI initiatives intended to help implement 2nd Basic Plan • 3rd Plan emphasizes role of, and primacy of, CSTP

11. Achievements of the 1st and 2nd Plans: Budgetary goals • 17.6 trillion yen for research during five year period of 1st Plan • 21.65 trillion yen for research during five year period of 2nd Plan • .86 percent of actual GDP growth

12. Govt. R&D Budgets as Percentage of Total R&D Budgets

13. Most Significant Issues: a Biased Selection • Increasing the competitiveness of the research system • Utilizing research results through better links among academic, industrial, and government research facilities • Establishing an effective and fair research evaluation system • Increasing the independence and mobility of young researchers

14. Trend in Competitive Research Funding

15. Sample Achievements: Technology Transfer • Between 1998 and May 2004, 37 Technology Licensing Offices were established to facilitate the commercialization of university research results. The number of patent applications filed by TLOs in Japan and abroad increased from 310 in 1999 to 1,619 in 2002. • The number of joint research projects among universities and private firms almost doubled in 5 years, from 2,362 in 1997 to 5,264 in 2001. • The number of start-up companies created to commercialize university research results increased from 315 in 2000 to 800 in 2003. • New university-based centers: • Tohoku University New Industry Creation Hatchery Center • Kyoto University International Innovation Center

16. Number of University-Industry Research Centers

17. Number of University-Industry Research Projects

18. Trends in University-initiated Start ups

19. Mobility and Independence of Young Researchers • Least impressive achievement of either 1st or 2nd Plans • Many rewarding short term (five year) postdoc positions created • What happens (happened) then? • Dead weight of university seniority system • “How can I energize my young bears and tigers?” (Arima) • Reformation of university human resources system assigned a high priority in 3rd Plan • But details lacking

20. Firms Hiring PhDs and Postdocs

21. Intersectoral Mobility

22. 3rd Basic Plan • Chapter 1 – Basic Ideas • Chapter 2 – Strategic Priority Setting in S&T • Chapter 3 – Reforming the S&T System • Chapter 4 – S&T to Be Supported by Society and the Public • Chapter 5 – Role of the Council for Science and Technology Policy

23. Chapter 2 – Strategic Priority Setting in S&T • Reiterates four priority areas and four promotional areas of 2nd Plan • More active steps to increase competitiveness of system

24. Chapter 3 – Reforming the S&T System (I) • Workforce policies • More opportunities created for young people • 25 percent women in S&T workforce by 2011 • Utilize talents of retired researchers • Welcome qualified foreign researchers • Including Chinese? Koreans? • Create 30 new Centers of Excellence • 93 such centers were created between 2002 and 2004 • Carrot/stick to shake up university academic seniority system?

25. Chapter 3 – Reforming the S&T System: International Cooperation • “As well as continuing to improve the prior international frameworks . . The government will strengthen ties of S&T with Asian nations to fulfill the role that is expected of Japan from both within and outside the country, in view of international situations, i.e., the geographical and environmental accessibility, the rapid improvement of the S&T standards, and the increasing closeness of economic relations.”

26. Chapter 3 – Reforming the S&T System: International Cooperation (cont.) • To this end, “the government will implement a policy dialogue called ‘Asian Region S&T Ministerial Summit’ (tentative name) at a high level including ministers involved in S&T nations based on the existing government-to-government dialogue and interaction by researchers.”

27. Chapter 5 – Role of the Council for Science and Technology Policy • CSTP asserts its primacy over the government – and to some extent the non-government S&T system in Japan • Limitations to the authority of the CSTP – and the government ministries • Public research facilities gained a large degree of autonomy on April 1, 2001 • National universities gained analogous autonomy on April 1, 2004

28. Issues for Further Exploration • Models of Technology Transfer in Japan • Efficacy of Evaluation – personal and institutional • Government Laboratories as Independent Administrative Institutions • Positive and negative factors after three years • AIST as a model for national universities? • National Universities as largely autonomous organizations • Relationship to implementation of Basic Plan • Positive and negative factors • Efficacy of the CSTP and government ministries in view of the autonomy of government laboratories and national universities • Desirability of periodic evaluation of achievements and shortcomings of Basic Plan, such as 2004 NISTEP analysis

29. Acknowledgements • Japan Society for the Promotion of Science • Six week senior postdoc, autumn 1997 • Six week senior postdoc, spring 2003 • NSF • Appointment as Tokyo Office Director, July 1999-August 2002 • NISTEP • Host during spring 2003 postdoc • Participation in helping to plan and to attend September 2004 international workshop on assessment of Basic Plans