1. Ｔｒｅｎｄｓ ｏｆ Ｓｃｉｅｎｃｅ ＆ Ｔｅｃｈｎ ｏｌｏｇｙ Ｐｏｔｅｎｔｉａｌ ａｎｄ Ｒ ｅｓｏｕｒｃｅ ｉｎ Ｊａｐａｎ Yuko NAGANO National Institute of Science and Technology Policy JAPAN Feb. 21 th 2010

2. 2 R&D Investment by Government and Private Enterprises

3. 3 Japan’s ratio of total R&D Investment/GDP is relatively high, mainly due to enthusiastic investment in R&D by private enterprises. However, government investment remains low (0.65 ％ ). R&D Investment/GDP Comparison Source: OECD Science, Technology and Industry Outlook (2008)

4. 4 Japan’s target ratio for R&D of “4% per GDP by 2020” requires more government investment. Target-setting for Ratio of R&D Investment/GDP Source: OECD Science, Technology and Industry Outlook (2008), etc. ( )

5. 5 Excellence in Academia - Science Paper Productivity Data shown in first two pages NOTE 1:The input data for the UK (No. of researchers, R&D expenditures) do not include university hospitals; however, hospitals are included in outputs. NOTE 2:R&D expenditures are adjusted by the GDP deflator (1996 base). Sources:(No. of published papers) Compiled by NISTEP based on Elsevier SCOPUS custom data. (R&D expenditures) Compiled by NISTEP based on the R&D statistics and education statistics of each country. (No. of researchers) Compiled by NISTEP based on the education statistics of each country.

6. 6 Science Paper Productivity in Natural Science & Engineering (except Clinical Medicine) of HE Productivity per expenditure (100 M $) Productivity per 1000 researchersNumber of papers 1.19 x 1.17x 1.10x 1.12x The growth in the number of papers in Japan showed the largest increase (1.19%) of the countries. Source: NISTEP REPORT No.118 (2009) Paper productivity in Japan per R&D expenditures is higher than in Germany and the US. Paper productivity per researcher is higher than in Germany and the UK.

7. 7 Science Paper Productivity in Clinical Medicine of Higher Education Productivity per expenditure (100 M$) Productivity per 1000 researchers Number of papers The number of papers in Japan has decreased slightly, while that in other countries has recorded large increases. Source: NISTEP REPORT No.118 (2009) Paper productivity in Japan is lower than that in other countries. It is also low compared to other natural science and engineering areas.

8. 8 World Share of Papers and Top 10% Papers by Field Source: Science and Technology Indicators 2009, NISTEP Note: Data above shown as a percentage, compiled by NISTEP based on Thomson Reuters Scientific “ Web of Science ” 2005-2007 Germany Korea UK China Japan USA USA

9. 9 R&D Activities and Innovation in Industry

10. 10 Net Sales, R&D Expenses, and Product Innovation in Business Sectors Net sales change vs. In-house R&D expenses changes Source: Survey Research Activities of Private Corporations (2009) NISTEP  Net sales increase is correlated with R&D expenses increase in business sectors. In-house R&D expenses change vs. Product innovation  R&D expenses increase is also correlated with product innovations achieved.

11. 11 Why Do Enterprises Increase Internal R&D Expenses?  Enterprises increase in internal R&D expenses mainly due to “expenses for specific R&D field increase”, besides “personnel expenses increase”. (%) Source: Survey Research Activities of Private Corporations (2009) NISTEP

12. 12 R&D Contribution to Economic Outcomes of Innovation Labor Capital (equipment investment) Companies Profit Goods and services Labor productivity R&D IT infrastructure Business model reform Capital productivity Total Factor Productivity (TFP) + Labor contribution Capital contribution + (the rest) TFP Growth = Economic Growth  TFP can be considered as an indicator of the economic outcomes of innovation. Active R&D contributes to TFP growth.

13. 13  According to a NISTEP’s report, the contribution of R&D investment increase is 0.67% in TFP growth ratio of 2.4%, in manufacturing companies which conduct R&D. (R&D activity’s contribution equivalent to 28% of TFP growth) Sales growth rate: 5.46% (annual average, 2003-2006) TFP growth rate: 2.40% (annual average, 2003-2006) R&D Contribution to TFP Growth (Estimate)

14. 14 Industry-Academia Collaboration

15. 15 Industry Investment in R&D by External Institutes Foreign Institutes Universities in Japan ( one hundred M yen) (FY)  Business enterprises in Japan enthusiastically invest in foreign institutes besides universities in Japan.

16. 16 Why Do Business Enterprises Collaborate with Universities? Enterprises collaborate with universities to “enhance R&D/technical capability” and “access to technical knowledge /ideas”. (%) Source: Survey Research Activities of Private Corporations (2009) NISTEP

17. 17  Researchers in academia recognize the significance of collaboration other than contribution to the society. (Objectives of collaboration) (Effect on researchers themselves) Researcher Incentives for Industry-Academia Collaboration Source: NISTEP REPORT No.127 (2009)  Many researchers recognize “outcome-driven research” and “lively laboratories” as effects to themselves.

18. 18 Matters for Researchers in Industry- Academia Collaboration Many researchers recognize their problems on balance between collaborative research and their own academic research. Source: NISTEP REPORT No.127 (2009) Researchers recognize the need to “improve the organizational support system for evaluating collaborative activities”, and “build up continuing partnerships with companies”.

19. 19 The Next Challenges for Explosive and Persistent Innovation Collaboration Universities Education Research Contribution to the society Creating Knowledge Encouraging talents Business enterprises Carrying out business Supplying new products and services Universities external/internal Educational effects Access to knowledge/idea Expanding new research areas Enhancing R&D capability Win-win partnerships Synergetic effects

20. 20 Thank you for your attention!