1. Research on the Derivative Effect Created by NEDO Projects Sayaka Shishido, Kazuo Fukui, Masaru Yamashita, Mitsuru Takeshita NEDO, Evaluation Department Research on the Derivative Effect Created by NEDO Projects Sayaka Shishido, Kazuo Fukui, Masaru Yamashita, Mitsuru Takeshita NEDO, Evaluation Department

2. Before ProjectDuring ProjectAfter Project Public Contractor （ Company, university, etc. ） Project Formation Project Management （ Budget portfolio, codes and standards, adjustments for situation changes, etc. ） Scheme of NEDO’s Projects and Position of Derivative Effects Activities for commercialization Commercialization completed! Derivative effect Social Task Solve Task R&D Project Planning （ Setting goals and milestones ） ： NEDO Project ： Flow of Main purpose of Project ： Flow of Derivative Effect Activities for commercialization of derivatives Commer- cialization of derivatives Use knowledge for other R&D （ start to develop of derivative technology ） Main Theme Derivatives 2 Spread of technical Knowledge

3. During NEDO Project After Project Public Contractor （ Company, University, etc. ） Business improvement Reduce ＣＯ ２ Technology for amorphous silicon devices Approach for commercialization For example … Commercialization Of low cost PV system Popularization of PV systems Commercialization of large TFT panel Energy security Large TFT panel manufacturing equipment Popularization of large TFT panel Design, evaluation, analysis technology Output of NEDO Project In-line large area film-forming equipment Use as design guide R&D Main theme Derivatives 3

4. Follow-up Research Research was started in FY2004. Target: All entrusted companies (projects completed after FY2001) Scope: Up to 5 years after project completion (years 1, 2, 4 and 6) Questionnaires and interviews were used. Derivatives In the questionnaire, we asked about derivative technologies: ・ Were there such technologies? ・ What type of technologies are they, where are they used, and by who? ・ Etc. Project completion Number of companies FY200183 FY2002142 FY2003166 FY200466 FY2005343 FY2006205 FY2007119 1,124 Methodology for Follow-up Monitoring 4

5. Objective We asked questions regarding the presence of derivative technology from NEDO projects as part of our follow-up research. To understand the overall context of derivative technology and revalidate our survey technique, we conducted a study on the following: ・ A general review of all follow-up research results starting from FY2004 ・ The results of new questions to focus on issues related to derivative technology added in FY2009. In addition, we prepared a case study on derivative effects, especially technology transfer related to supercritical fluid. 5

6. All Energy companies Industrial companies Total1,124 326798 Technology370 115255 No Technology 754 211543 Technology32.9% 35.3%32.0% No Technology67.1% 64.7%68.0% Companies With Derivative Technology Are there any derivative technologies? (FY2001 - FY2007) Are there any derivative technologies? (FY2001 - FY2007) 6

7. Years 246 Technology80140162 No Technology 311251229 Total 391 Development Period for Derived Technology Relationship between number of years after project completion and percentage of companies having derivative technology （ Companies completing projects from FY2001 to FY2003) 7

8. All TerminatedResearch Developmen t Practical application Commercial Technology370181261553932 No Technology754642922736956 Total11248241842810888 R&D Progress and Derivative Technology Developed During Projects Development stage of derivative technologies in the year following project completion （ Projects completed from FY2001 to FY2007 ） Development stage of derivative technologies in the year following project completion （ Projects completed from FY2001 to FY2007 ） 8 ■ No Technology ■ Technology

9. 9 Technology25 No Technology 39 Total64 Terminate d Research Devel- opment Practical applicatio n Commerci al Total Yes010131125 No22076439 Total230207564 Project completion Number of companie s FY20010 FY200211 FY20030 FY20041 FY200532 FY20060 FY200720 Total64 Example: Robot Technologies 5 projects, 64 companies Are there any derivative technologies? ■ No Technology ■ Technology

10. CompletionCompanies FY2003102 FY200439 FY2005286 FY2006187 FY2007118 FY200851 Total783 Type and Use of Derivative Technologies (FY2009, FY2010 ） What type of technologies were derived? What type of technologies were derived? Where are derivative technologies used? 10 ■ Own department ■ Other department ■ Other companies ■ Other ■Other ………………… ■Product ……………… ■Testing tech. ………… ■Scientific data………… ■Manufacturing tech. …

11. Number of responses Contents of Derivative Technologies （ Data for FY2010 ） Utilization of derivative technologies （ closed, multiple selection ） 11 0.4% 4.3% 6.1% 8.2% 8.6% 10.0 % 14.3 % 24.4 % Other Improvement of process used in existing products Understanding phenomena and mechanisms Improvement of standard products R&D tools and technical standards Know-how derived through HR cultivation Setting of new theme New product development Year Companie s FY200441 FY2006187 FY200851 Total279

12. Survey Techniques for Derivative Technologies Merits of Questionnaires Easy to clarify technology transfer in a company. Facts are collected through a bottom-up process, overestimates are fewer than in numerical analysis. Weak Points of Questionnaires Facts for compilation are limited to only those provided by a respondent. It is therefore possible to underestimate. -It is difficult to identify derivative effects that occur due to implicit knowledge and spillover effects through research papers. -Amount of available data is reduced over time. 12

13. Case Study on Supercritical Fluid We prepared a case study on derivative effects, especially technology transfer related to supercritical fluid. Fundamental technology development （ Property database, mechanism analysis, measurement theory, codes and standards, etc. ） Pure science （ Public domain, science without commercial use ） Application development (Formulation as a system, manufacturing technologies, etc.) Products/services （ Direct effect ） Fundamental development 全体設計 Elemental development Application development Elemental development for other fields Application development for other fields Products/services Technology transfer Design policy System design PR action for sales/ capital investment for mass productions 産業応用 Ideas for industrial application Elemental development （ Core technologies for materials or members ） Products/services Application for Application Application for Application

14. Coal liquefaction Alcohol concentration Extraction of food ingredients (essence, fat acid, caffeine, etc. ） Environmental regulations Technology seeds of other fields Dry cleaning Painting Micronized medicine Hybridization and making nano- particles for electronic materials (hydrothermal synthesis ） Analyze reactions and phenomena Gain fundamental data Property simulation Make database Washing and drying for semi- conductors and micromachines Cracking of woody biomass Chemical recycling of plastics Supercritical fluid chromatography Reuse of chemical filters Microreactor “Trial and error” phaseFundamental project External factors “Tool utilization” phase Example of chemical recycling equipment Supercritical Fluid R&D History Supercritical Fluid R&D History

15. Triggers for Technology Transfer Triggers Caused by Fundamental NEDO Project ① Solutions to technical problems Examples: Information collection and development of a database for fundamental property data, visualization of phenomena, understanding reaction mechanisms, valid material selection, trials for low cost methods (especially a continual process), etc.  Focusing on a valid target is necessary. ② No diffusion after completion of a fundamental project Example: Key person with knowledge of functional maintenance of database, laboratory equipment, etc.  A project leader for a fundamental project may be an academic. External Triggers ① New needs Environmental regulations (volatile organic compound emissions, chlorofluorcarbon gas, etc.) More sophisticated and diversified specifications ② Technology seeds from other fields Examples: ・ Highly molecular medicine derived from biotechnology ・ Semiconductor and micromachine microfabrication ・ Fine chemicals, etc.  Timing of project planning is important as it serves as a bridge between needs/seeds.

16. 16 Summary １． 33% of surveyed companies responded that they have developed derivative technology. (FY2001 - FY2007) ２． 24% of surveyed companies responded that derivative technology is mainly used for new products and new R&D tasks. ３． Technology transfer after a fundamental technology project is derived from project and external triggers. → It is thought that NEDO projects produce an effect from mainstream R&D, and that they also add further value through new products and R&D themes that result from technology transfer.

17. Thank you! NEDO,Sayaka Shishido E-mail: shishidosyk@nedo.go.jp 17