Ｔｒｅｎｄｓ ｏｆ Ｓｃｉｅｎｃｅ ＆ Ｔｅｃｈｎｏｌｏｇｙ Ｐｏｔｅｎｔｉａｌ ａｎｄ Ｒｅｓｏｕｒｃｅ ｉｎ Ｊａｐａｎ

1. Ｔｒｅｎｄｓ　ｏｆ　Ｓｃｉｅｎｃｅ　＆　Ｔｅｃｈｎｏｌｏｇｙ　Ｐｏｔｅｎｔｉａｌ　ａｎｄ　Ｒｅｓｏｕｒｃｅ　ｉｎ　ＪａｐａｎＴｒｅｎｄｓ　ｏｆ　Ｓｃｉｅｎｃｅ　＆　Ｔｅｃｈｎｏｌｏｇｙ　Ｐｏｔｅｎｔｉａｌ　ａｎｄ　Ｒｅｓｏｕｒｃｅ　ｉｎ　Ｊａｐａｎ Yuko NAGANO National Institute of Science and Technology Policy JAPAN Feb. 21th 2010

2. R&D Investment by Government and Private Enterprises

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

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

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. 1.17x 1.19 x 1.10x 1.12x Science Paper Productivity in Natural Science & Engineering (except Clinical Medicine) of HE • The growth in the number of papers in Japan showed the largest increase (1.19%) of the countries. • 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 theUK. Number of papers Productivity per expenditure (100 M $) Productivity per 1000 researchers Source: NISTEP REPORT No.118 (2009)

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

8. World Share of Papers and Top 10% Papers by Field Germany Japan USA UK Korea China 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

9. R&D Activities and Innovationin Industry

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

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

13. R&D Contribution to TFP Growth (Estimate) • 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)

14. Industry-Academia Collaboration

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

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

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

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

20. Thank you for your attention!