Japan’s Economic Growth in the Last 50 Years

1. University Research Performance Forum 2013 University Entrepreneurship for Innovation EcosystemApril 10, 2013Dr. Shigeo KagamiProfessorGeneral Manager – Innovation and EntrepreneurshipDivision of University Corporate Relations (DUCR)The University of Tokyo

2. Japan’s Economic Growth in the Last 50 Years 1956-73 Ave. 9.1% 1974-90 Ave. 4.2% 1991-2009 Ave. 0.8% Source: Cabinet Office, Government of Japan

3. “Incorporation” of Japan’s National Universities(April 1, 2004) • A dramatic reform of university since the era of Meiji • Incorporation respectively of each national university • Deregulation of budget and personnel will lead to a competitive environment by ensuring university's autonomy • “Autonomy” at the expense of continuous deduction of operational grants from the government • Greater importance in gaining external funding • Before April 1, 2004, a national university had no corporate status, thus it was not able to be a patent owner • Now, intellectual properties (patents, etc.) are a university’s asset • Greater importance in commercializing university technologies

4. Distribution of Royalties from Licensing University Technologies • Royalties are distributed to the inventor(s) in accordance with the University’s internal rules. • The rules call for a distribution, after deduction of administration fees and any patent expenses, of (in case of the University of Tokyo) • 30% to the University, • 30% to the Institute(s) or Laboratory(s) with which the inventor(s) is (are) affiliated, and • 40% to the inventor(s).

5. Organizations for Innovation President Graduate Schools(15), Research Institutes(11), University-wide Research Centers(13), Todai Institutes for Advanced Study(1) The University of Tokyo Executive Vice President Division of University Corporate Relations Director General （General Manager） Deputy Director General Office of Intellectual Property Office of Innovation and Entrepreneurship University Corporate Relations Group The University of Tokyo Edge Capital (UTEC) Venture Capital University Corporate Relations Network Tech Transfer Office (TODAI TLO,Itd.) Foundation for the Promotion of Industrial Science Society and industry Nippon Keidanren (Japan Business Federation)

6. Development of Research Collaboration Projects with the Industry • Create new model of mutual reliable collaboration program between industries and the University of Tokyo. • Support activities of all faculties for multi cross-departmental or non-departmental program • Carry out the “Proprius*21” program • Make plans for better and more strategic relationship with society *Proprius (Latin): one's own, permanent, special, peculiar

7. Collaborative Research Projects at the University of Tokyo (primarily with the private sector) Source: THE UNIVERSITY OF TOKYO 2011 (Data Book)

8. Proprius21: Innovative Research Planning Scheme A Program for Value-Creation Oriented University-Industry Collaboration • Proprius21 is a research planning program organized by DUCR before a full-scale collaborative research project starts between the industry and the University of Tokyo • To share the vision, objectives and approach • For better partnership, collaboration, and output • For more effective collaborative research projects with the private sector.

9. 10 9 8 7 6 5 4 3 2 1 Three Phases of the Proprius21 Program Traditional Project, Start-ups ③SLOT Phase University Flagship Project Traditional Research Project Project Planning and Review ②Grouping Phase Open Discussion ①Plaza Phase

10. UCR Proposal • Research proposals from Professors • Covering various areas, from Biotech to Sociology • English contents launched in Mar 2009, gradually increasing • Associative searching available • Number of Proposals • 130+ in English • 1,800+ in Japanese URL: http://proposal.ducr.u-tokyo.ac.jp/

11. Promotion of University Entrepreneurship • Consultation • Offer one-stop advisory services to the university’s researchers, students and spin-off entrepreneurs • Mentoring • The University of Tokyo “Mentors (UT Mentors)” • External network of professionals (VCs, Attorneys, Accountants, Bankers, Analysts, ….) • UT Venture Squares • Network with the entrepreneurs who are UT graduates • Education • Offer seminars and educational programs for science and student entrepreneurship • “UT Entrepreneurship Education Program and Business Plan Competition” • Venture Capital • Offer seed money to spin-off ventures • The University of Tokyo Edge Capital (UTEC) • Offer hands-on assistance for university-spin-offs in developing businesses • Incubation • Offer facilities and assistance to university start-ups • The UT Entrepreneur Plaza

12. University Entrepreneurship Ecosystem in the University of Tokyo Invention Disclosure Information The University of Tokyo Edge Capital (UTEC) Return from Investment Success The University of Tokyo Risk Money Hands-on Assistance Capital Gain TLO (CASTI) Licensing (Patents etc.) Royalties *The University takes equity in partial lieu of royalties University start-ups and entrepreneurial ventures

13. Profile of Enrolled Students: 2005~2012 Total UT Entrepreneurship Education Program & Business Plan Competition

14. Issues facing University Entrepreneurship in Japan • Sources of “patient (long-term)” risk money • Pension, endowments, ….. • Funds for “Proof of Concept (Prototype)” before investment gets ready (before VCs are involved) • Gap funding • Mentality of big corporations • “Not Invented Here” syndrome • Few deals of acquiring technology ventures • Notion of “Innovation” • Many people still believe that innovation comes from big manufacturing firms like Toyota, Canon, ….. • Big Company “Primacy”? • Lack of clear “role models” of Japanese young entrepreneurship • Entrepreneurs should be more celebrated! • Lack of global perspectives • VCs • Start-ups, universities, and Tech Transfer Offices (TLOs) • Intellectual property strategy (especially for Biotechnology)

15. “Paradigm Shift” in Innovation System Linear Model Open Innovation Basic Research Basic Research (University) Applied Research Product Development (Industry) Product Development University Start-ups Partnership& Acquisition Time

16. Thank You for Your Attention! Dr. Shigeo Kagami Professor The University of Tokyo kagami.shigeo@mail.u-tokyo.ac.jp

17. DR. SHIGEO KAGAMI Professor, General Manager – Office of Innovation and Entrepreneurship Science Entrepreneurship, Division of University Corporate Relations (DUCR), The University of Tokyo Dr. Kagami is a graduate of Hitotsubashi University (BA in Commerce, 1982), and gained his MBA from IMD (Lausanne Switzerland, 1989), and completed his doctoral work in corporate governance at Weatherhead School of Management, Case Western Reserve University (2000). Before he joined The University of Tokyo, Dr. Kagami was a consultant at Boston Consulting Group (1982-1986), a founding partner of Corporate Directions Inc. (CDI, 1986-1997), and Partner of Heidrick & Struggles International (2000-2002). At the University of Tokyo, he became Associate Professor, Pharmaco-Business Innovation Course at Graduate School of Pharmaceutical Sciences, and he had been Professor and General Manager – Science Entrepreneurship and Enterprise Development (SEED), Division of University Corporate Relations (DUCR) from 2004 until the end of March 2013. Professor Kagami has become General Manger of the Office of Innovation and Entrepreneurship, a newly created organization as a merger of two offices at DUCR; Office of Development of Collaborative Research and Office of SEED. Professor Kagami’s responsibilities include 1) Development of large scale research collaboration projects with the industry for innovation, 2) Entrepreneurship education program and student business plan competition for the University, 3) Management of incubation facilities for university start-ups, 4) Relationship management with The University of Tokyo Edge Capital (UTEC) as a board member, and 5) Consulting and mentoring for the University researchers and students for their start-up initiatives.