japan

J apan’s Science and Technology Basic Policy Report

























Council for Science and Technology Policy
(December 24, 2010)

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Table of Contents

I. Basic understanding 1
1. A tumultuous world and crisis in Japan 1
2. Position of Science and Technology Basic Plan 1
3. Results and issues of the 3rd Science and Technology Basic Plan 2
4. Principles of the 4th Science and Technology Basic Plan 3
(1) Visions of the country 3
(2) Basic concepts of future S&T policies 4
II. Promotion of the two major innovations as a pillar of growth 6
1. Basic concept 6
2. Promotion of Green Innovation 6
(1) Growth vision of the country 6
(2) Promotion of measures for achieving essential issues 6
(3) System reform for promoting Green Innovation 8
3. Promotion of Life Innovation 8
(1) Growth vision of the country 8
(2) Promotion of measures for achieving essential issues 9
(3) System reform for promoting Life Innovation 10
4. System reform for promoting STI 11
(1) Strengthening of the strategic promotion system for STI 11
(2) Construction of new systems for STI 13
III. Response to the essential issues facing Japan 17
1. Basic concept 17
2. Promotion of measures for achieving success in essential issues 18
(1) Realizing an affluent and high-quality life for the public 18
(2) Strengthening the industrial competitiveness of J apan 18
(3) Contribution to the solution of global issues 20
(4) Maintaining the basis of national existence 20
(5) Improvement and reinforcement of common infrastructure for S&T 21
3. System reform to achieve success with essential issues 21
(1) System reform for promoting task-achieving type of R&D 21
(2) Establishment of promotion system for R&D requiring governmental initiative 22
4. Strategic development of globally integrated activities 22
(1) Promotion of R&D for solving common issues in Asia 22
(2) New development of S&T diplomacy 22
IV. Enhancement of basic research and human resource development 25
1. Basic concept 25
2. Drastic enhancement of basic research 25
(1) Enhancement of creative and diverse basic research 25
(2) Enhancement of globally top-level basic research 26
3. Development of human resources to lead S&T 27
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(1) Development of human resources capable of working actively in diverse scenes 27
(2) Training for creative quality researchers 29
(3) Development of human resources who can lead the next generation 30
4. Establishment of international-level research environment and infrastructure 31
(1) Improvement of R&D environments at universities and public research institutions 31
(2) Development of intellectual infrastructure 33
(3) Development of research information infrastructure 33
V. Development of policies to be created and promoted together with society 35
1. Basic concept 35
2. Deepening the relations between society and STI 35
(1) Promotion of STI policies from the public viewpoint 35
(2) Promotion of S&T communication activities 37
3. Promotion of effective STI policies 37
(1) Enhancement of policy planning, making and promotional functions 37
(2) Enhancement of the assessment and allocation functions in the research fund systems
38
(3) Enhancement of R&D implementation systems 39
(4) Establishment of PDCA cycle in STI policy 41
4. Expansion of R&D investment 42


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I. Basic understanding

1. A changing world and crisis in Japan
The world, including J apan, is undergoing drastic changes in politics, society, and economics. In
order to address such changes promptly, many countries are using all possible policy instruments.
Under such circumstances, roles expected for policies concerning science and technology ("S&T") are
also changing considerably. Major changes in the recent situation of S&T are as follows.

<Changes around the world>
Global-scale issues to be addressed in cooperation with many countries, including environmental
problems, are becoming increasingly more serious. Meanwhile, international competition to acquire
resources, energy, foods, etc. is expected to intensify, which could lead to distortions in the world's
economic growth on a mid- and long-term basis, as well as instability in the world economy and
politics. In addition, with the economic rise of newly emerging countries that have great market
potential, including China and India, the distribution of wealth and force is rapidly changing on global
and local levels.
Moreover, as a result of further progress in economic globalization, intensifying competition in
emerging markets, and diversification of consumer needs, accelerated realization of innovation is
becoming more important, innovation systems are greatly shifting to more open, global, and flat
platforms, and the commercialization of research and development ("R&D") of S&T is also
progressing. Also, as brain circulation is becoming prevalent around the world, international
competition to acquire excellent human resources who play key functions in S&T and innovation
("STI") is increasingly more fierce.

<Crisis in Japan>
In addition to the foregoing drastic changes around the world, J apan is also facing issues that might
lead to a decline in socio-economic vitality, such as the issue of an aging and decreasing population
with a declining birthrate. J apan's gross domestic product (GDP) has mostly leveled off in recent
years, and its per capita GDP has also fallen in international ranking. Given the issue of aging and
decreasing population with a declining birthrate, a fall in the labor force and shrinkage of the domestic
market cannot be avoided in the long run.
Meanwhile, despite the fact that S&T and human resources are important resources for J apan, which is
poor in natural resources, a trend is increasing among students to avoid S&T departments at colleges /
universities, while many excellent researchers and engineers in J apan are reaching the retirement age.
Accordingly, there is concern that the presence of J apan in S&T fields may also decline. In addition,
the response of J apanese enterprises to changes in innovation systems is still on the way, which is
contributing to the continuation of the long-term slowdown in J apan's industrial competitiveness.

2. Position of Science and Technology Basic Plan
In accordance with the Science and Technology Basic Law established in 1995, the Science and
Technology Basic Plan ("Basic Plan"), consisting of 3 5-year terms (15 years total), was formulated to
ensure steady promotion of S&T in J apan. However, it cannot be denied that the S&T policies have
been implemented mainly to promote S&T independently, not in organic coordination with essential
policies on industry, economy, diplomacy, etc. On the other hand, many foreign countries position
S&T policy as a basis of national strategies and develop S&T policy actively in organic / integrated
coordination with other policies on industry, economy, diplomacy, etc. In view of what other
countries are doing, as seen in the first acknowledgement of "Creation of innovation" by law, i.e., the
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2008 Research and Development Enhancement Law
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, there is increasing need in J apan for the
government to make an all-out effort to strongly and strategically promote S&T policies by integrating
innovation policies, and tying S&T policies closely to other key policies on industry, economy,
education, diplomacy, etc.
In light of these circumstances, the 4th Basic Plan aims to provide basic policies for comprehensive
and systematic promotion of J apan's S&T policies by widely recognizing the "New Growth Strategy --
Blueprint for Revitalizing Japan," formulated in J une 2010 as a 5-year national strategy on S&T with
an eye to the coming decade, deepening and embodying the policies provided by this Policy, and
ensuring further coordination with other important policies.

3. Results and issues of the 3rd Science and Technology Basic Plan
In J apan, many research findings and results have been reported since the 1st Basic Plan as the result
of an increase in governmental spending in R&D, development of R&D infrastructure, reform of S&T
systems, etc. On the other hand, some issues remain unsolved, including the contribution of S&T to
solutions to various issues, human resource development, and development of research environments.
The following describes the main results and issues of the 3rd Basic Plan.

<R&D investment and strategic priority setting>
Under the 3rd Basic Plan, area-focused R&D was promoted in the eight areas
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designated in the four
primary priority areas and four secondary priority areas, leading to the creation of many innovative
technologies. However, since it has been indicated that individual achievements did not necessarily
lead to the solution of social issues, the government should identify essential issues to address, and
then formulate responsive strategies and facilitate effective R&D.
In the field of basic research, performance has been steadily achieved, as seen by a researcher whose
research paper has the world's top class citation, while the total share of J apanese research papers is
slightly declining and the country’s citation index is low compared to other advanced countries. In
order to build infrastructure for the development of J apan's S&T, basic research should be dramatically
strengthened to generate originality and diversity that can lead to the creation of new concepts and
knowledge assets for mankind.
In addition, due in part to the severe financial situation throughout the 3rd Basic Plan, governmental
R&D investment has almost leveled off with only a slight increase and is anticipated to fall short of the
targeted amount of 25 trillion yen. If such situation lingers on, the level of S&T in J apan might
decline, so R&D investment should be further strengthened.

<Reforming the S&T system>
The 3rd Basic Plan, specifying "from 'hard' to 'soft' such as human resources" as one of the basic
concepts, focused on investment in human resources, improvement in the mobility of personnel, and
reform to promote competition. However, while graduate school students have rapidly increased due
to the effect of the policy’s focus on graduate schools, researchers tend to be late in establishing their
career path. Accordingly, it has been pointed out in recent years that many young researchers have
difficulty in planning their careers and tend to avoid working abroad. Since human resources play
the leading role in STI, it is necessary to actively develop and secure human resources including
women and foreigners, facilitate their activities, dispatch and invite them, and further promote the
development of their environment.
In J apan, many excellent technologies were born from breakthrough ideas that were produced through

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Law on Enhancement of Research and Development Capacity and Efficient Promotion, etc. of Research and Development,
etc. by Advancement of Research and Development System Reform (Act No. 63 of 2008)
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"Four primary priority areas": Life science, information and telecommunications, environmental sciences, and
nanotechnology/materials; "Four secondary priority areas": Energy, manufacturing technology, infrastructure, and frontier
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basic and fundamental researches. Meanwhile, industrial systems are changing sharply and open
innovation has become a mainstream, e.g., a key to innovation is networking "knowledge" even in the
phase of basic research through collaboration between researcher communities and outsiders. Hence,
construction of a new and open STI system is urgently required.
Also, universities (including Inter-University Research Institute Corporation; hereinafter the same),
R&D corporations, and the private sector, are playing very significant roles in promoting J apan's S&T.
However, the recent decrease in operating expense subsidies granted to such institutions is causing
problems in their research activities, educational activities, maintenance and operation of their
facilities and equipment, etc.

<S&T to be supported by the public>
The people greatly expect S&T to play a significant role in improving the global competitiveness of
J apan and solving social issues. On the other hand, there is an indication that the people do not
necessarily acknowledge the idea that investment in S&T is "investment in the future." Needless to
say, R&D activities should steadily achieve results in order to further respond to public expectations.
However, in addition to this, it is necessary to develop activities to grasp social needs accurately and
promote efforts for S&T communication activities so as to foment public understanding and support
for S&T.

4. Principles of the 4th Science and Technology Basic Plan

(1) Visions of the country
S&T not only serves as a means for exploiting knowledge frontiers and helping to solve issues facing
humankind but also constitutes a basis for J apan's wealth and power. In this sense, S&T policies
should not aim to promote only S&T but should aim at organic coordination with key policies on
economy, education, diplomacy, security, etc. as one of major policies for society and the public,
which is expected to realize a vision or identity that Japan should aim for, i.e., how J apan should
coexist with other countries or how Japan should exist.
From such a viewpoint and in order to respond to public expectations and demands for S&T, Japan
should provide a clear vision for which it should aim through S&T policies on a mid- and long-term
basis. To this end, the 4th Basic Plan provides the following five visions for a future J apan as major
goals J apan should aim for on a mid- and long-term basis in promoting its policies.

(i) A country that achieves sustainable growth for years to come
Such problems as restricted use of resources / energy and aging are expected to become serious and
material global issues in the mid- to long-term. To avoid this, J apan aims to overcome these issues
ahead of other countries so that new industries and employment may be created, and thereby achieve
sustainable growth for years to come.

(ii) A country that realizes an affluent high-quality life for the people
As social structures are rapidly changing, J apan aims to realize a safe, affluent, and high-quality life
that the people can be proud of for years to come.

(iii) A country that possesses S&T as the foundation for national survival
J apan aims to possess core S&T that enables the nation to exist, ensures national security, and
develops unknown / unexploited knowledge frontiers.

(iv) A country that takes the initiative in solving global issues
J apan aims to take the initiative in solving serious and material global issues including climate change
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via its unique knowledge assets, creativity and international cooperation.

(v) A country that continues to create " knowledge" assets and fosters S&T as a
culture
J apan aims to become a country that continues to create various, unique and advanced "knowledge"
assets, and fosters S&T as a culture that encompasses research activities to that end, concerned persons
and research institutions, research infrastructure and environments, etc.

(2) Basic concepts of future S&T policies
In order to realize the five visions of the country mentioned in (1) above, it is necessary to consistently
produce excellent intellectual assets of the world's highest level and to drive S&T policies
comprehensively and systematically in directions that promote innovation by clearly identifying the
issues for J apan to address. Also, to steadily promote such policies, the roles of excellent human
resources cannot be overemphasized. Moreover, to realize "policies for society and the public,"
involvement of the people in crafting those policies should be further deepened.
Given these viewpoints and considering the results and issues of the 3rd Basic Plan, the 4th Basic Plan
adopts the following three points as basic concepts for future S&T policies.

(i) Integrated development of " STI policies"
The importance of innovation was also described in the 3rd Basic Plan. However, the undertaking to
relate results of S&T to new value creation through innovation is still on the way. J apan should,
therefore, in order to create new values, identify issues facing the country and the world, utilize S&T
strategically to solve the identified issues, further promote the return of results of such activities to
society, and thereby promote S&T steadily so that it may serve as a source of innovation.

For that purpose, it is essential to have viewpoints of not only natural science but also human and
social sciences, include widely related innovation policies in addition to S&T policies, and ultimately
promote them in an integrated manner. Accordingly, such policy is positioned as "STI Policy"
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in
the 4th Basic Plan in order to develop it with particular focus.
There are two approaches to promoting STI policy; one is to identify issues for J apan to address in
advance and promote related S&T comprehensively to solve such issues, and the other is to produce
creative research findings and develop them for new value creation. In response, the 4th Basic Plan
describes, for the former approach, actions for environment / energy and medical / nursing care and
health as urgent issues for the country to address in Chapter II and various critical issues facing J apan
in Chapter III, and, for the latter approach, strengthening of basic research in Chapter IV, including
specific undertakings.

(ii) Further focus on the " roles of human resources and the organizations"
In order for Japan, where natural resources are limited and a continuous decrease in population is
expected, to drive STI policies powerfully, it is indispensable to constantly foster and secure the
human resources for supporting such policies. Activities concerning such human resources should be
particularly and cross-sectionally undertaken by the government. To this end, with further focus on
the "roles of human resources and the organizations," activities should be strengthened so that
personnel who bear the future of J apan may actively enter the world of STI with dreams and hopes, by
constructively developing efforts to foster and secure human resources who are able to demonstrate
their capabilities at home and abroad, who can lead the world in their specialties, and who bear the

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"Science, Technology and innovation (STI)" is defined as the "creation of intellectual / cultural values based on new
knowledge obtained from scientific discovery, invention, etc., and the innovation to develop such knowledge into
economic, social, or public value."
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next generation, as well as by improving their career paths. Additionally, in order for such human
resources to be able to demonstrate their capabilities sufficiently, organizational support that can assist
them should be improved and networks among researchers, organizations, etc. should be strengthened
at universities, public research institutions, etc.,

(iii) Realization of a " Policy to be created and promoted together with society"
Since the "Declaration on Science and the Use of Scientific Knowledge" was adopted at the World
Conference on Science held in Budapest, Hungary, in J uly 1999, and the concept of "Science in
society, science for society" was proposed there more than 10 years ago, the relationship between S&T
and society has become increasingly closer, and public expectations and demands for STI have also
been rising. Under such circumstances, it is becoming increasingly important for the government to
grasp such public expectations and social demands accurately so as to utilize them in planning and
promoting policies and to show results and effects of policies widely to the people and return those
results and effects to society. Accordingly, the government will advance activities to deepen the
relationship between society and STI in order to realize a "policy to be created and promoted together
with society," and will strive to gain an understanding and trust in the people by clarifying responsible
organizations, performance goals, results, etc. concerning S&T policies, and further promoting
dialogue and information services for the people.

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II. Promotion of the two major innovations as a pillar of growth

1. Basic concept
In order for J apan to continue growing and developing in ways that will secure a pivotal position in the
world and realize affluent people’s lives, the most important thing is to become "(i) A country that
achieves sustainable growth for years to come" as stated in the five visions of Japan mentioned in
Chapter I. This is because that the realization of this goal is prerequisite to achieving the other four
goals and solving issues to that end will lead to the establishment of foundations for new growth and
consequently improve the quality of people’s lives.
The urgent important issues J apan should undertake to achieve this goal include response to climate
changes, realization of a low-carbon society, and response to the issue of aging. Particularly, the
realization of a low-carbon society is expected not only to contribute to reduced emissions of
greenhouse gas but also to lead to the emergence of new markets on a global scale as a result of a
prevalence / increase in recyclable energy etc., development of social infrastructure, etc., which would
consequently solve the issue of the restricted use of resources and energy and create new industries
and employment in J apan. In addition, the increase in senior citizens and the decrease in overall
population will cause a sharp rise in social welfare costs and lead to a reduced work force, and could
seriously interrupt the growth of J apan in the future. On the other hand, however, a progressively
advancing aged society is expected to expand demand for medical care, nursing care, and health
services, and activities to eliminate such factors of social interruption can also serve as a driving force
for spurring new growth in the mid- to long-term.
From such viewpoints, the 4th Basic Plan positions "Green Innovation" for environment and energy
and "Life Innovation" for medical care / nursing care / health as two major pillars of growth, and aims
to develop STI policies in those regards strategically. In addition to the issues mentioned in this
Chapter, J apan is faced with many serious and diverse issues, and Chapter III provides specific
policies for activities to address such issues.
Moreover, in line with the sophistication and complication of S&T and the urgent globalization of its
market, the government should establish an innovation system having strong linkage among industry,
academia and government and strong cooperation with society. Hence, in order to promote
S&T-based innovation with full respect for the diversity, originality, etc. of each entity of industry,
academia and government, system reforms including the establishment of new systems will be
undertaken.

2. Promotion of Green Innovation

(1) Growth vision of the country
The government will promote Green Innovation with particular focus, with the aim to solve the
climate change issues facing J apan and the world, which should be addressed urgently, and realize the
world's most advanced low-carbon society by identifying trends in de-fossil fuel that many countries
are developing competitively as a key to future growth. Such promotion is expected to facilitate
further innovation of environmental / energy technologies, in which Japan has strengths, and promote
the reform of social systems and institutions. With such prevalence and development of Green
Innovation at home and abroad, J apan will achieve sustainable growth. Also, through such efforts,
the government will aim to realize a country leading the world in advanced environment / energy
technologies, and achieve a sustainable recycling society that exists in harmony with nature, and bring
affluent people’s lives.

(2) Promotion of measures for achieving essential issues
As specific measures for achieving the goals of Green Innovation described in section (1), the
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following essential issues are to be determined. The government will promote relevant measures
with particular focus, including R&D responding to these issues, in cooperation with universities,
public research institutions, and industrial sectors.

(i) Low carbon energy supply
The government will strategically promote R&D of renewable energy technologies, such as solar
power, biomass utilization, wind power, small scale hydropower, geothermal power, tidal power, and
wave power, and facilitate the utilization of such technologies. In so doing, the aim is to disseminate
and develop such technologies according to their characteristics and the features of local communities
by utilizing the potential of such technologies for reducing greenhouse gas emissions to the maximum
extent. For solar power generation and biomass utilization, efforts will be promoted to develop
innovative technologies that can serve as a new breakthrough, as well as achieve remarkable
improvement in existing technologies.
R&D will also be promoted for hydrogen supply systems including storage batteries, fuel cells,
recharging infrastructure, superconducting power transmission, manufacturing, transport and storage
with the aim to innovate distributed energy supply systems and, furthermore, R&D for energy
management, including smart grids that comprehensively provide optimal control of supply systems
for both basic and distributed energies, as well as energy demand systems, and then promote overseas
development of results of such R&D activities.
Moreover, efforts will be promoted for extended use of nuclear power generation with the prerequisite
of ensuring safety, with the aim of ensuring higher efficiency and low-carbon generation in basic
energy supply sources, including R&D for the realization of a zero-emission thermal power generation
system where an integrated gasification combined cycle and collection and storage of carbon dioxide
are combined, in addition to high efficiency thermal power generation and petroleum refining, and
R&D for the commercialization of the next-generation of light water reactors.

(ii) Highly efficient and smart use of energy
In order to ensure more efficient use of fossil resources in manufacturing sectors, R&D will be
promoted to innovate manufacturing process in steel production, functionally improve the materials
used there, and, furthermore, develop green sustainable chemistry and bio-refineries.
With the aim to ensure lower carbon generation in consumer sectors (household and commercial) and
transport sectors, which collectively account for about a half of the final energy consumption of J apan,
efforts will also be promoted for the development and dissemination of (i) energy-saving technologies,
including higher grade insulation systems for houses and buildings, stationary fuel cells, more efficient
lighting, power semiconductors, and (ii) power control via storage batteries, fuel cells, and power
electronics used for next-generation automobiles. Moreover, R&D will be advanced into highly
efficient transport equipment (trains, ships and airplanes).
Furthermore, since information and telecommunication technologies are basic technologies in
promoting energy supply, energy use, and low carbon generation from social infrastructure, R&D will
be advanced with regard to next-generation information and telecommunication networks, further
energy-savings for information and telecommunication equipment and system components, and
technical development for optimized control of entire network systems.

(iii) Greening of social infrastructure
For the realization of environmentally advanced cities, the government will advance R&D for highly
efficient traffic and transport systems. R&D will also be promoted into mega network systems where
existing consumer networks are connected to all electric-powered equipment at home, each of which
works as a communication entity, hence forming networks with social infrastructure including electric
power, gas, water, traffic services, etc. In addition, the government will drive R&D for simulations
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for constructing a comprehensive water resource management system built with advanced water
processing technologies. At the same time, the government will promote overseas development of
those results as integrated systems, as part of efforts to disseminate and expand R&D results.
The government will also promote efforts for innovating resource recycling technologies, creating
alternate materials for rare metals, etc.
Furthermore, since information obtained from earth observation, forecasts, and integration analysis is
significant social / public asset for driving Green Innovation, the government will markedly enhance
technologies related to that and promote the utilization of such information obtained from earth
observations, etc. in various fields. Besides these efforts, the government will promote efforts to
develop cities and local communities for climate changes, conserve the natural environment and
biodiversity, maintain the natural cycle of forests, reduce natural disasters, realize sustainable
recycling-based food production systems, etc.

(3) System reform for promoting Green Innovation
In promoting Green Innovation, it is necessary, in addition to the promotion of actions for achieving
the essential issues mentioned in (2), to promote efforts that promote innovation in ways that promptly
and effectively lead to the creation of industries and jobs, and consequently to the sustainable growth
of J apan and solutions to global issues. From such viewpoints, the government will actively advance
system reforms, including regulatory and institutional reforms for accelerating innovation, and
promoting the development of innovation results including technologies to overseas countries.
<Promotion measures>
- In order to promote the R&D and other activities of businesses that aim at innovation, the
government will consider how to establish new regulations and systems based on technical /
economic reasonableness taking into account international competitiveness, such as the setting of
sustainability criteria, including criteria for reducing greenhouse gas emissions by using biofuels,
and revision of standards for automotive fuel consumption.
- In order to promote the commercialization / dissemination of next-generation vehicles, supply
infrastructure facilities such as hydrogen stations, recyclable energy equipment, etc., the
government will promote the review and reform of relevant laws that may interfere with such
efforts.
- In collaboration with local governments, universities, public research institutions, and industrial
sectors, the government will support efforts for integrated R&D and technical demonstration,
dissemination, and development meant to achieve a new social system based on local
characteristics, such as smart grids.
- In relation to the development of social infrastructure, such as energy, water, traffic, and transport
systems, the government will promote the overseas development of advanced technologies,
management / operation know-how, and human resource development systems possessed by the
government and private sectors by packaging them as an integrated system.
- In order to promote support for developing countries via the utilization of J apan's excellent
technologies, the government will promote technology transfers and system reforms for measures
against climate changes comprehensively in connection with policies on poverty programs,
development of agriculture / water resources, disaster prevention, etc., and strengthen the
independent capabilities of such countries to address such issues.

3. Promotion of Life Innovation

(1) Growth vision of the country
In J apan, aging is progressing at the fastest pace in the world, and it is an urgent matter to find
solutions to the issues of medical and nursing care, which are expected to become increasingly serious
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in the future, while showing respect for personal views of life and death. Under such circumstances,
the government will powerfully promote Life Innovation in order to realize a society where people are
healthy in body and mind and can feel happily. With these efforts, the government will create and
revitalize industries such as medical care, nursing care, and health services and thereby aim to achieve
the sustainable growth of the country. In addition, the government will aim to internationally
contribute to measures for aging societies, which many advanced countries will face in the near future,
and diseases prevalent in developing countries through the development of pharmaceuticals and
medical devices.

(2) Promotion of measures for achieving essential issues
As specific measures for achieving the goals on Life Innovation described in section (1), the following
essential issues are to be determined. The government will aggressively promote relevant measures,
including R&D responding to these issues, in cooperation with universities, public research institutions,
and industrial sectors.

(i) Development of innovative preventive care
Preventive care based on objective grounds (evidence) will be developed by identifying the
mechanisms that govern the onset and development of lifestyle-related diseases, etc. through research
into the effects of lifestyles and living environments, including foods, based on long-term follow-up of
the health condition of people and through the promotion of cohort studies, such as analysis of clinical
data, metabolome, and gene sequences.
Also, in order to promote large-scale epidemiological research, improvement of infrastructure for
electronization, standardization, database creation, etc. of medical data will be facilitated, and effective
use of such information will be accelerated while carefully protecting personal data.
R&D into vaccines of high preventive effect will be promoted with focus on infectious diseases that
may seriously affect society, and dissemination and development of such vaccinations will be
facilitated at home and abroad.
In addition, in view of serious social / economic losses and burdens caused by dementia or other
diseases, R&D will be promoted into technologies for preventing the onset, enabling early detection,
and delaying the development of dementia and other diseases by encouraging active intervention
studies.

(ii) Development of new early diagnostic methods
Since the development of diagnostic approaches that lead to the early detection of a disease is
important towards maintaining public health, development of high precision early diagnosis
technologies will be promoted, including development of new detection methods and equipment that
contribute to early diagnosis, such as technologies for identifying trace substances, and searching for
and identifying new markers.
In addition, microscopic technologies / equipment, such as smaller, less invasive high-performance
endoscopes and new imaging technologies that contribute to early diagnosis, such as
three-dimensional imaging, will be developed.
Furthermore, the development of new technologies for early diagnosis will be promoted via the
organic integration of such technologies and equipment.

(iii) Realization of safe and highly effective treatment
In the development of new medicine, new drug targets need to be searched for by analyzing disease
mechanisms and treatment using animal disease models, diseased cells by iPS cell generation, etc.
To this end, basic studies in the life sciences will be promoted.
Furthermore, R&D aiming at the establishment of innovative treatments, such as nucleic acid
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medicines and drug delivery systems, will be promoted. To improve the quality, safety, and
effectiveness of treatment, the development of new drugs based on the stratification and
hierarchization of diseases will be promoted, and the development of drug dosing methods that
minimize side-effects will be advanced based on the genetic background of people.
Development will also be promoted into new medical devices, such as radiotherapy equipment and
robotic surgical instruments; drugs and devices that integrate diagnosis and treatment, such as a
combination of endoscope and medicine; telediagnosis / telemedicine technologies; and image
processing technologies that support telediagnosis etc.
For what regards regenerative medicine as a precursor to disease treatment, alternatives to lost
function, regeneration, technologies for the proliferation / differentiation of iPS cells, ES cells, somatic
stem cells, etc. inside and outside the body will be developed, and efforts will be made to standardize
such technologies, develop application techniques, and promote R&D into safety assessment
techniques for them. In addition, scientific studies of bio-dynamic systems will be promoted.

(iv) Improvement of quality of life (QOL) of elderly / disabled persons and patients
In order to improve the QOL of elderly / disabled people and reduce the burden of care providers,
R&D will be promoted, including the establishment of safety assessment approaches with regard to
technologies that compensate for the decreased functions of elderly / disabled persons, such as life
support robots, brain machine interface (BMI) equipment, and personal mobility for the elderly,
technologies for supporting self-sufficient living / livelihoods, technologies for advanced
communication support, and technologies for supporting care providers.
In addition, research into palliative medicine for relieving the mental and physical pains of cancer
patients or elderly persons in the terminal state will be promoted.

(3) System reform for promoting Life Innovation
In promoting Life Innovation, as in promoting the measures mentioned in section (2) for achieving
essential issues, a system for promptly commercializing results of such promotion as pharmaceutical
products or medical devices should be developed. The process of applying the results of researches
into pharmaceuticals etc. to clinical studies, clinical trials, and commercialization takes too much time
in Japan compared with international levels. Therefore, from the viewpoints of solving this issue and
promoting Life Innovation, regulatory and institutional reforms related to examinations for approval
and development R&D environments will be promoted.
<Promotional measures>
- The government will improve and strengthen "regulatory science"
4
, e.g., the formulation of
assessment guidelines and criteria based on scientific principles and social validity for the safety,
effectiveness and quality assessment of pharmaceutical products and medical devices, and thereby
develop consistent guidelines that cover clinical studies and trials as well.
- In order to ensure prompt and efficient examination for approval of pharmaceutical products and
medical devices, the government will considerably improve and strengthen the organization of the
examination body, and promote improvement of the research function of regulatory science in the
relevant examination body, and foster and secure human resources familiar with these areas.
- In order to produce seeds that lead to the development of new drugs and medical devices and
accelerate the commercialization thereof in cooperation with universities, public research
institutions, and industrial sectors, the government will promote the improvement of infrastructure
that supports new drug / medical technology development by the joint efforts of the government
and private sector. In particular, the government will improve and strengthen research centers

4
Science for coordinating results of S&T with the most desirable form for harmony between people and society by
conducting accurate forecasts, assessments, and decisions based on evidence for the purpose of using the results of S&T
for the people and society.
11
that serve as a "bridge" and establish open medical institution networks in universities, businesses,
etc. by inviting research proposals from the public.
- With regard to integrated systems for clinical studies and trials for pharmaceutical products and
medical devices, the government will consider the introduction of such a system through surveys
and studies of similar systems abroad, e.g. Investigational New Drug (IND) and Investigational
Device Exemption (IDE) in the U.S., and request universities, etc. to implement clinical studies in
accordance with international standards.
- In order to ensure smooth and efficient development of new drugs and medical devices based on
results of clinical studies, the government will develop a system that enables research institutions,
etc. to receive the consultation and advice of regulatory authorities from the early stage of R&D,
and improve and strengthen service centers for consultation and notification and the systems of
examination for approval and safety measures so that a series of actions, including clinical studies,
clinical trials, applications for approval, and post-marketing safety measures to be taken after
approval may be performed in an integrated manner.
- With the aim to create new seeds that lead to the development of innovative pharmaceuticals and
medical devices, the government will promote efforts for supporting bio-venture businesses from a
long-term viewpoint.

4. System reform for promoting STI

(1) Strengthening of the strategic promotion system for STI

(i) Foundation of " STI Strategy Council (tentative name)"
In order to drive STI in a direction that responds to key issues facing the country, including Green
Innovation and Life Innovation, the government should establish a collaboration system that enables
the proactive participation of various persons concerned in a wide range of areas, including industry,
university and government, and the sharing of future visions among them and concerted efforts
involving them. With the establishment of such a system, each participating entity will be able to
recognize their individual roles in retrospect of an overall picture and promote activities in close
cooperation with each other. From such viewpoints, the government will build a platform that
supports the full process of crafting strategies for essential issues, including examination and
promotion.
<Promotional measures>
- The government will establish the "STI Strategy Council (tentative name)" ("Strategy Council") in
coordination with the Council for Science and Technology Policy (or reorganizing of the same
Council as the "STI Strategy Headquarters (tentative name)." A Strategy Council will be created
for each essential issue in order to ensure integrated promotion of STI, and provide opportunities of
close cooperation through participation of various persons concerned from a wide range of areas,
including relevant ministries and agencies, fund distribution organizations, universities, public
research institutions, and industrial sectors, and NPOs.
- The government will encourage the proactive participation of persons and organizations concerned
in a wide range of areas, and improve the support system, e.g., by appointing a "Strategy Manager
(tentative name)" who takes charge of cooperation among related organizations, etc.
- In order to specify a future vision of essential issues and contribute to strategy formulation for
realizing that vision, the Strategy Council will consider from various viewpoints the desirable
approaches to specific R&D, regulatory / institutional reforms, performance targets, promotion
systems, and fund distribution to be promoted in each of the phases of basic research, application,
development, industrialization, and commercialization. The Council for Science and Technology
Policy will formulate strategies to achieve the essential issues based on the examinations made by
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the Strategy Council.
- The Strategy Council will be responsible for all management aspects of strategic promotion efforts
in order to ensure the effectiveness of such strategies. Participating organizations, such as
universities, public research organizations, fund distribution organizations, and industrial sectors,
and persons concerned will promote activities in cooperation with each other with the "Strategy
Manager (tentative name)" coordinating everything.

(ii) Strengthening " knowledge" networks among industry, university and government
Alongside the growing sophistication of S&T, scaling up of R&D activities, and globalization of
socio-economic, issues underlying the existing vertically integrated R&D models have been surfacing,
while activities aiming at open innovation are rapidly increasing in response to such surfacing. In
such situations, it is becoming increasingly necessary to establish a system for producing quality
research findings at universities and public research organizations promptly and effectively.
However, the current status of industry-university cooperation at home and abroad indicates a low
percentage of joint studies between universities and foreign companies and a declining trend in the
number of technology transfer projects involving the Technology Licensing Organization (TLO).
For these reasons, the government will implement efforts to further advance cooperation between
industry, university and government in order to strengthen "knowledge" networks for promoting
innovation via S&T.
<Promotional measures>
- The government will promote networking amongst industry, academia and government, including
the enhancement of cooperation between universities and coordination with financial institutions
and other related organizations.
- The government will request universities and public research institutions to strengthen their
functions for enabling smooth cooperation with industrial sectors, which includes them providing
quality research findings and developing systems to promptly coordinate the rights related to
provided findings. The government will also expect universities to optimize their functions for
industry-university-government cooperation including organization of the TLO with broad-based
functions, and strengthening of integration / cooperation of the headquarters of
industry-university-government cooperation with the TLO.
- The government will strengthen support for universities in their efforts to acquire patents at home
and abroad, and also provide support for important technologies in specific fields if infringement
of their patents occurs abroad and may damage national interests. The government will also
request universities and public research institutions to improve their research management systems
in order to increase joint or contracted research with overseas universities and businesses, which
includes having them review cooperation rules for intellectual property protection, etc. and
developing / securing specialized human resources.
- The government will expect universities and public research institutions to clarify their policies on
the management and utilization of acquired patents and their handling of intellectual properties and
confidentiality principles when doctoral course students, etc. participate in research, and to develop
a flexible system of industry-university-government cooperation, such as to establish a university
laboratory in a facility of a business or a company's laboratory on a university campus.
- The government will strengthen ongoing support to universities and public research institutions for
a wide range of work from finding promising seeds to commercialization. In so doing, the
government will promote the utilization of private sector funds, such as matching funds, in
cooperation with related investment institutions. In addition, since public research institutions are
expected to introduce seeds of universities to society, the government will improve and strengthen
the functions concerning industry-university-government cooperation.
- In order to verify results of industry-university-government cooperation comprehensively, the
13
government will promote quantitative assessments, such as the number of patent licenses and
related income, and qualitative assessments, such as the contribution to markets, dissemination of
research findings, and job security. The government will also develop systems necessary for such
assessments.

(iii) Establishment of " places" for industry-university-government collaboration
In order to advance S&T-based innovation promptly and efficiently, it is necessary to concentrate
various knowledge assets and R&D capabilities of industries, universities and governments, and
establish a chain of "places" for systematically conducting strategic R&D. In J apan, international
R&D centers, including Tsukuba Science City, have been developed; for further development of such
concentrated research locations, it is important to enhance their functions. In foreign countries, the
roles of such systems and organizations that demonstrate the comprehensive power of industry,
academia and government are increasingly valued. Given the situation, in order to promote
innovation, core R&D centers will be established by concentrating various R&D capabilities of
industry, academia and government.
<Promotional measures>
- The government will establish open innovation centers that promote R&D via "competition" and
"cooperation" by concentrating various R&D organizations from industry, academia, and
government in the stages of basic research, application, and development, and by placing focus on
R&D of common basic technologies in non- competitive / pre-competitive areas. Particularly, in
order to demonstrate a synergetic effect and promote innovation at centers where universities and
public research institutions are concentrated, the government will encourage the use of facilities
and equipment across institutional lines and integrated sharing and release of research findings.
- While maintaining close dialogue between industry and academia in research fields determined
between them, the government will promote the establishment of a virtual core center ("place for
joint creation") where collaborative R&D and human resource development are carried out across
organizations.
- The government will promote the formation of "advanced interdisciplinary innovation creation
centers" as places of innovation via industry-university collaboration.

(2) Construction of new systems for STI

(i) Environmental improvement for strengthening commercialization support
Revitalization of business start-up activities by effectively using results of advanced S&T is very
important for the creation of industries and jobs, and economic revitalization. However, the
environment for starting up in business has been becoming increasingly severe in recent years, as seen
in the drastic decrease in the number of ventures initiated by universities due in part to the difficulty in
securing personnel and/or funds. In view of the situation, the government will improve the
environment in order to strengthen support for venture start-ups based on advanced S&T, by ensuring
the provision of consistent support from the initial stage of R&T to commercialization.
<Promotional measures>
- The government will improve the infrastructure for comprehensive activities, including fostering of
entrepreneurship, human resource development with training for business start-up simulation, and
establishment of a network of professionals who provide support in legal affairs, intellectual
properties, and capital strategies. In addition, the government will provide support to ventures
initiated by universities and, in that process, will pay particular attention to management strategies
- whether a comprehensive business strategy has been established or not and whether a
management team has been formed and human resources engaged in such a team developed or
not -- marketing, capital strategies, and intellectual property strategies.
14
- The government will promote the introduction of a multi-stage selection method in "Small
Business Innovation Research (SBIR)" as a system for taking results of advanced S&T to
commercialization. Accordingly, for the introduction of the multi-stage selection method, the
government will consider setting targets of a certain ratio or amount of the R&D budgets of the
governmental ministries and agencies.
- In order to ensure revitalization of venture activities, the government will strengthen the system
that provides risk money more effectively, and consider a system that enables those who produced
research findings to contribute intangible assets, such as human capital or intellectual property, as
capital. In addition, new measures for supporting ventures will be examined including
improvement of "angel investment."
- In order to promote innovation in the public sector, which has a limited market, the government
will establish a cooperation system between technology users and technology holders, i.e., R&D
institutions.

(ii) Utilization of regulations / institutions for promoting innovation
Regulations on R&D activities and institutions that monitor and govern those R&D activities were
originally provided for the purpose of smooth promotion, ensuring safety, etc. in R&D activities, but
they interfere with innovation in many cases because they are too strict. Yet, taking advantage of
these regulations / institutions may have the effect of accelerating innovation. Hence, the
government will promote efforts to improve and encourage utilization of regulations and institutions
with the aim to facilitate innovation, including a special zone system for implementing exceptions to
regulations and support measures in tax / financial / monetary systems.
<Promotional measures>
- The government will identify regulations and institutions considered to be a bottleneck in
S&T-based innovation, and develop a solution system by discussing improvement measures among
relevant ministries and agencies.
- In order to accelerate the efforts of businesses that aim their R&D at innovation, the government
will, taking global competitiveness into consideration, examine how new regulations / institutions
based on economic / technical reasonableness should be. For example, consideration should be
shown for the establishment of sustainability criteria, such as, in regards to biofuel, criteria for
reducing greenhouse gas emissions, and revisions to vehicle fuel consumption criteria.
- In order to strengthen advanced R&D, the government will consider establishing advanced
research centers under the special zone system that limitedly relax regulations that interfere with
the smooth progress of R&D after taking complementary measures. To be specific, such centers
will be carefully selected and designated from among existing research organizations at
universities and public research institutions, and their institutional feasibility will be verified.

(iii) Establishment of regional innovation systems
In order to encourage local activities to solve various issues, develop them countrywide and even
worldwide, and use them towards the sustainable growth of J apan, it is necessary to actively utilize the
diversity, originality, and creativity of individual local communities. Since efforts to promote S&T
may not be firmly established in local communities due to severe financial situations, the government
will build a system that enables local communities to independently develop STI activities that
capitalize on their strengths and characteristics.
<Promotional measures>
- The government will build a support system that fully uses the measures of relevant ministries and
agencies so that local governments, universities, public research institutions, and industrial sectors
may, in cooperation with each other, develop quality schemes formulated independently by local
communities to successively progress from research to commercialization.
15
- In order for local clusters that have achieved good performance to further play key roles as centers
of autonomous growth in their communities, the government will provide focused support in
networking, fostering and securing of human resources, intellectual property activities concerning
R&D, as well as promotion of R&D.
- The government will support local communities in fostering and securing human resources who
coordinate R&D, management, industry-university-government cooperation, and intellectual
property activities. The government will also support the activities of universities and public
research institutions to strengthen their abilities to contribute to their local communities in human
resource development, industry-university-government cooperation, and intellectual property
activities.

(iv) Promotion of intellectual property strategies and international standardization
strategies
As many activities for open innovation are developed around the world, and research and economic
activities are becoming globalized, in order for J apan's universities, public research institutions, and
industrial sectors to address such changes appropriately, intellectual property strategies including
international standardization strategies should be integrally promoted with R&D and other strategies.
Hence, the government will formulate and implement an international standardization strategy in
response to global changes in the environment of innovation, and review existing systems for
intellectual property rights and improve systems concerning intellectual property activities.
<Promotional measures>
- The government will formulate competitiveness enhancement strategies in close cooperation with
the private sector, with regards to specific strategic fields subjected to international standardization
and for which growth on a global scale is expected and Japan has superior technologies. In
addition, the government will promote international joint-research development programs that
contribute to the acquisition of international attestations, and strengthen the functions of R&D
institutions involved in international standardization and/or the formulation of standards for
performance assessments and safety. Moreover, the government will advance cooperation with
organizations that conduct product testing or certification, particularly in Asia.
- With industry-university-government cooperation, the government will actively provide proposals
concerning international standards to standardization organizations such as the International
Organization for Standardization (ISO), International Telecommunication Union (ITU), and
International and Electrotechnical Commission (IEC), and comprehensively support international
standardization activities including forum standards that contribute to the enhancement of
industrial competitiveness. The government will also provide support in the development of
training programs and participation in international standardization activities in order to develop
and secure human resources who can appropriately respond to international standardization
activities.
- Aiming at the substantial mutual international recognition of patent examination results, the
government will improve the quality and increase the quantity of patent examination work-sharing
by establishing a system for sharing examination results of each patent office in J apan, the U.S.
Europe, South Korea, and China, expanding targets of the Patent Examination Highway, and
simplifying relevant procedures. Also, in view of participation in the Patent Law Treaty, the
government will advance institutional improvements so as to increase the convenience for
applicants.
- The government will review the patent system so that it may promote the use thereof by
universities and public research institutions, including the adoption of free application formats, an
increase in exceptions to loss of novelty, and improvement of the academic discount system.
- The government will establish a system that enables free use of patents only for the purpose of
16
research in cooperation with participating organizations including universities. The government
will also develop a system for collecting and publicizing S&T information related patents and a
framework for utilizing intellectual property. Moreover, the government will promote
improvements to the infrastructure and networking concerning information related to intellectual
properties, such as by creating a system that combines and analyzes patents and various references.
17
III. Response to the essential issues facing Japan

1. Basic concept
In order for Japan to produce good results in S&T and return them to society, the government should
promote R&D more effectively and efficiently. From such a viewpoint, the 2nd and 3rd Basic Plans,
as a particular focus, designated the four primary priority areas and four secondary priority areas as
R&D fields to preferentially allot resources and ensure the prioritization of R&D. However, it was
pointed out that this approach had problems as such an unclear relationship with the visions of the
Basic Plan or policy goals, a mixture of viewpoints on addressing social issues and creating and
developing seeds in setting target fields, and insufficient establishment of the task-achieving type of
comprehensive R&D due to a division of fields into a top-to-bottom structure.
In view of these indications, the government should identify issues to address in R&D activities that
should be aggressively promoted by the country, and prioritize resource allotment to R&D activities
that contribute to their promotion. Green Innovation and Life Innovation, which are positioned as
two major pillars of growth in Chapter II, are activities for overcoming the restrictions afflicting J apan
and achieving essential progress that is leading to economic growth. However, Japan is faced with a
number of serious issues other than those in the fields of environment, energy, medical care, nursing
care, and health. In order to overcome such issues, the government should promote R&D and other
activities comprehensively and systematically with the participation of various organizations in
industry, academia and government through a cross-sectional approach and by coordinating activities
developed by each of these organizations, including basic research, application, development,
industrialization, and commercialization, so that such efforts lead to new value creation.
In view of such circumstances, this Chapter identifies essential issues to be addressed by the country
and provides a basic direction of relevant policies, including the R&D to be aggressively promoted in
order to achieve success in those issues, to the same extent as discussed in Chapter II for the
environment, energy, medical care, nursing care, and health, in response to the five visions of Japan
mentioned in Chapter I. Accordingly, the 4th Basic Plan has greatly changed the policy to the
prioritization of measures for achieving success in essential issues from the prioritization of R&D
based on the four primary priority areas and four secondary priority areas. Additionally, in
identifying specific R&D issues under this new policy, the performance and findings of R&D so far
produced based on field-specific prioritization will be appropriately utilized. Moreover, promotion of
measures for achieving success in essential issues requires comprehensive development of STI policies
including a reform of social systems, so that the government promotes efforts for this in an integrated
manner.
In addition, the essential issues facing J apan, including global and other issues, are expected to become
common global issues the mid- to long-run. Also, given the emergence of Asia as a global growth
center and the trend of aging with a declining birthrate in J apan, it will be important to combine the
international development of S&T activities with the vitality of the world in order to maintain and
strengthen J apan’s global competitiveness in STI. By actively using the J apan's world-leading S&T
and promoting multitiered cooperation with many advanced and developing countries, the government
will proactively address the essential issues facing J apan, the improvement of S&T levels, and the
utilization for diplomatic activities.

18
2. Promotion of measures for achieving success in essential issues

(1) Realizing an affluent and high-quality life for the public
In order for the public to continue to live a safe, affluent, and quality life in the future, the government
should ensure a stable supply of food, water, resources, and other items indispensable to daily life and
protect their lives and property from disasters, etc. It is also important to promote efforts to realize
true affluence including an improvement in convenience and comfort, in addition to public safety.
To these ends, by setting the following essential issues to be addressed, the government will
aggressively promote relevant measures, including R&D responding to these issues, in cooperation
with universities, public research organizations, and industrial sectors.

(i) Ensuring a stable supply of food, water, resources, and energy
To improve the food self-sufficiency rate, enhance food safety, and ensure a stable supply of water, the
government will promote R&D concerning the production, distribution, and consumption of safe and
quality food materials and products, and R&D concerning stable supplies of food and water, which
will include the utilization of advanced technologies such as genetically modified organisms (GMO)
and the adoption of industrial viewpoints.
In addition, from the viewpoint of resources and energy security, the government will facilitate
investigations and technical development for the acquisition and efficient and cyclic use of new
resources and energies, and R&D concerning the control, proper management, and reuse of waste, and
promote the dissemination and development of findings.

(ii) Ensuring safety and improving convenience in public life
With the aim to ensure the safety of people from natural disasters, etc., the government will promote
the study, observation, and forecasting of earthquakes, volcanoes, tsunami, high waves / tide, wind /
flood damage, landslides, etc., R&D concerning disaster prevention and reduction, R&D concerning
measures against fires, serious accidents, and crimes, and promote efforts of the central and local
governments, etc. to implement their measures, etc.
In addition, for the protection of human health and ecosystems, R&D will be promoted into assessing
hazards and risks of environmental pollutants in the air, water, and soil, as well as control and
countermeasures concerning them.
Furthermore, to ensure safety and establish both convenience and comfort, R&D will be promoted into
the advancement of traffic / transport systems and safety assessments thereof, and advancement / life
extension of residence / social capital as measures against aging.

(iii) Increasing the wealth of public life
In order to realize true wealth in the lives of people, the government will promote activities that
contribute to S&T-based improvement in the quality and wealth of public life, including improvements
/ increases in public and private-sector services (e.g., education, welfare, medical / nursing care,
administration, tourism, etc.) and improvement / deepening of relations among people by utilizing
S&T, such as advanced information and telecommunications technologies.
Furthermore, in order to improve human sensibility and wealth of the mind, R&D that leads to the
creation of new culture and improvement in the potential and content of design, which J apan is proud
of, will be conducted from the viewpoint of merging humanity and the social and natural sciences.
Also, efforts will be made to return the results of such R&D to public life and apply them to overseas
development.

(2) Strengthening the industrial competitiveness of Japan
In order for J apan to achieve sustainable growth in the future, given the increasing presence of newly
19
emerging countries in Asia and other regions, it is necessary to strengthen the global competitiveness
of industries that support the economic growth of Japan and to create / reinforce the fields capable of
acquiring added-value. Hence, in order to create new industrial infrastructure and further strengthen
manufacturing in J apan, it is necessary, in addition to new market creation through Green Innovation
and Life Innovation, to promote R&D at the world's top level in basic fields that have a high ripple
effect in many industries, and further strengthen industrial competitiveness.
To these ends, by setting the following essential issues, the government will aggressively promote
relevant measures, including R&D responding to these issues, in cooperation with universities, public
research institutions, and industrial sectors.

(i) Strengthening common infrastructure for the enhancement of industrial
competitiveness
R&D will be promoted into innovative common basic technologies, including basic technologies
required for the development and utilization of advanced materials and components of high
added-value, large market share or future growth potential. J apan has many technologies of high
global competitiveness, and many basic technologies that support the utilization of high-performance
electronic devices, information and telecommunications. Therefore, a strategy for appropriately
opening up those technologies will be promoted.
Furthermore, in order to respond to various market needs, common infrastructure for new
manufacturing technologies will be established by promoting R&D into the advancement of
measurement / analysis techniques, high precision processing technologies, and built-in system
development techniques, integration of elemental technologies, establishment of performance / safety
assessment methods, and hardware (materials, components, and units) coordination with software.

(ii) Creation of new industrial infrastructure utilizing the strengths of Japan
To create new added-value in end products such as machines, vehicles, and electrical machines in an
environment of intensifying global competition, R&D will be promoted in line with demonstration
experiments and international standardization, with the aim of establishing integrated systems, such as
next-generation transportation systems and smart grids. Also, efforts will be made to promote
integrated services, including maintenance and operation, and overseas development of results of such
R&D.
In addition, in order to enhance the productivity of the service industries in J apan, R&D and other
activities for utilizing S&T effectively will be promoted. Furthermore, to enhance the efficiency of
the financial world in general and create new industries, R&D will be promoted into information and
telecommunications technologies for establishing next generation information and telecommunication
networks and realizing reliable cloud computing systems. And, the broad utilization of results from
that R&D will be promoted.

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(3) Contribution to the solution of global issues
J apan maintains a high level of S&T thanks to the various promotional measures so far taken. In the
future, J apan should, as a mature country, not only aim at further development of S&T of its own but
also actively contribute to the solution of various issues arising on a global scale in cooperation with
foreign countries and by actively using their S&T.
Accordingly, by setting the following essential issues, the government will aggressively promote
relevant measures, including R&D responding to these issues, in cooperation with universities, public
research institutions, industrial sectors, foreign countries and international organizations.

(i) Promotion of a response to global issues
With regard to large-scale climate change, etc., the government will promote observation, forecasting,
and impact assessment on a global scale via international cooperation, and R&D into measures against
catastrophic natural disasters that may be caused by climate change. For the conservation of
biodiversity, the government will promote surveys and observations of ecosystems, impact
assessments, and R&D into the conservation and restoration of ecosystems.
The government will also promote R&D into new resources / energies and cyclic use, and alternative
resources in order to ensure a stable supply of resources and energy.
Furthermore, the government will promote R&D into identifying pathogens, prevention, diagnosis,
and treatment related to emerging / re-emerging infections.
In accordance with the promotion of such R&D, the government will also promote the dissemination
and development of R&D findings at home and abroad, while taking the initiative in building
consensus of the international community on addressing relevant issues.


(4) Maintaining the basis of national existence
In order for J apan to maintain international superiority and ensure the safety of public life, some R&D
issues will require the government to take a long-term viewpoint and promote R&D and accumulate
findings consistently and widely over the long-run. The government will aggressively address such
R&D issues considering the R&D to be related to the basis of national existence. In promoting such
R&D, the government will consider the basis of national existence in a broad sense, including, in
addition to national security, the promotion of R&D for establishing the independent basis of S&T
aiming to develop new areas of S&T.
Accordingly, to be specific, the government will promote R&D into the following, while ensuring
consistency with on other plans such as the Space Basic Plan, Basic Plan on Ocean Policy, and Basic
Energy Plan, and Framework for Nuclear Energy Policy.

(i) Strengthening national security and critical technologies
The government will promote R&D into technologies for ocean exploration and development aiming
to develop and secure useful natural resources, technologies for space transportation and satellite
development and utilization that help to ensure national security, public safety, etc., including
information collection, technologies for new energies with the aim of securing independent energy
sources, technologies for nuclear energy including fast-breeder reactor cycles and nuclear fusion;
high-performance computing technology of the world's top level, technologies for geospatial
information, and technologies concerning active and dependable information security.

(ii) Establishment of S&T infrastructure for new frontier development
The government will promote R&D including theoretical research, experimental studies, surveys /
observations, analyses, etc. in order to build S&T infrastructure for developing the frontier of new
knowledge, such as integrated understanding and analysis of substances, life, oceans, earth, and space.
21

(5) Improvement and reinforcement of common infrastructure for S&T
In order to promote R&D concerning S&T effectively and efficiently and thereby address various
issues facing J apan and the world, it is necessary to promote R&D into S&T that is cross-sectionally
available in multiple areas. It is also important to ensure further improvement and reinforcement of
common and basic facilities and equipment that are extensively used for various R&D activities.
Accordingly, to be specific, the government will promote relevant measures including R&D into the
following.

(i) Enhancement of cross-sectional S&T
The government will promote R&D into nanotechnology and optical / quantum technologies that will
lead to the development of advanced techniques for measurement, analysis, etc., advanced information
& communication technologies such as simulation and e-science, S&T that is cross-sectionally
available in multiple areas such as mathematical science and system science technologies, and S&T
for integrated areas.

(ii) Advancement of common and basic facilities and equipment
The government will promote the effective use and application of common and basic facilities and
equipment used in extensive R&D areas concerning S&T and various research institutions at industries,
universities and government facilities, and facilitate R&D aimed at accelerating technical advancement
of such facilities, etc.

3. System reform to achieve success with essential issues

(1) System reform for promoting task-achieving type of R&D
In order to promote the task-achieving type of R&D effectively and efficiently, it is necessary to
implement R&D activities systematically and comprehensively, with the extensive participation,
cooperation of industries, universities and government offices. Accordingly, in order to achieve
success with the essential issues described in section 2, the government will actively advance efforts
based on the promotion policy described in II-4 "System reform for promoting STI."
<Promotional measures>
- In cooperation with universities, public research institutions, industrial sectors, etc., the
government will implement efforts, under the promotion policy described in II-4, to found strategy
councils and promote industry-university-government cooperation in each essential issue, enhance
support for commercialization, effectuate regulatory / institutional reforms, promote S&T in local
communities and promote intellectual property strategies and an international standardization
strategy.

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(2) Establishment of promotion system for R&D requiring governmental initiative
In promoting R&D of critical technologies for national security and basic facilities and equipment
used commonly across multiple areas or organizations, since such R&D should be undertaken
consistently on a long-term basis, the government should take the initiative to build a system for
conducting such R&D using all available resources of relevant research institutions owned by industry,
academia and government. Accordingly, the government will launch a new project to advance such
R&D effectively and efficiently.
<Promotional measures>
- With regard to R&D into basic technologies centering on national security and critical technologies,
the government will establish a project (titled, e.g., "National Security / Critical Technology
Project [tentative name]") for the government to take the initiative in implementing R&D into
specific technical issues in consideration of related plans, etc. In so doing, the results of
"National Critical Technologies" adopted in the 3rd Basic Plan will be utilized to the fullest extent.
- In promoting this project, the government will appoint a project manager who oversees and
effectively controls the entire project, without limiting to individual R&D activities, and will
formulate a mid- to long-term strategy, which will include the formulation of action plans,
protection of intellectual properties, and development of human resources in cooperation with
relevant organizations. In so doing, the project should be examined in consideration of the
assessment results for the issues selected as "national critical technologies" in the 3rd Basic Plan.

4. Strategic development of globaly integrated activities

(1) Promotion of R&D for solving common issues in Asia
In order for Japan to play a leading role in solving global issues and maintain a firm position in the
world, it should strategically promote STI policies from the viewpoints of international cooperation.
Particularly in Asia, J apan's S&T could be utilized to solve issues in many areas, such as the
environment, energy, food, water, disaster prevention, and infectious diseases. J apan should,
therefore, play an active role in solving such common issues in Asia and build relationships of mutual
trust and interest in this region. For this reason, the government will promote new efforts to enhance
S&T cooperation with Asian nations.
<Promotional measures>
- As part of the East Asian Community, the government will promote the "East Asia Science &
Innovation Area." Specific activities considered under this initiative include the establishment of
reciprocal relationships among participating countries in a manner open to non-participating
countries, joint implementation of R&D activities that contribute to solving common issues, and
human resource development and exchange. In so doing, while J apan will lead R&D areas in
which J apan has strengths, other areas that should be promoted by taking advantage of
characteristics of other Asian countries will be promoted by such countries.
- As part of this initiative, the government will consider the establishment of an international
research fund and the implementation of a large-scale joint project with the aim to enhance the
S&T level and promote innovation within the participating countries.

(2) New development of S&T diplomacy

(i) Development of international activities taking advantage of the strengths of Japan
J apan is promoting activities that lead the world on various issues including the environment and
energy, and its S&T are also at a high level. In the future, in order as well to achieve sustainable
growth and create new demand, J apan should "export task-achieving type prescriptions" (system
export) based on such high-level S&T with a particular focus on rapidly-growing Asia. Hence, the
23
government will promote the development of systems that lead to social reform in Asia by taking
advantage of the strengths of J apan.
<Promotional measures>
- The government will support, in cooperation with Asian countries, activities for advancing the
international standardization of technologies, regulations, criteria, and standards in the areas where
J apan has a technical advantage.
- For the development of social infrastructure (e.g., energy, water, and transportation systems) in
newly emerging countries, the government will promote efforts for overseas development of
integrated systems where advanced technologies of governments and the private sector are
packaged with management and operation know-how, human resource development, etc.
- The government will consider the creation of a "Council for Promoting Cooperation Based on S&T
Diplomacy (tentative name)" as a place for consistent exchange of information among relevant
ministries and agencies, industrial sectors, academic circles, etc.

(ii) Promotion of international activities concerning advanced S&T
In order to ensure further development of J apan's S&T and enhance the synergetic effect of S&T and
diplomacy, it is necessary for J apan to promote R&D activities concerning advanced S&T in
cooperation with developed countries and international organizations, and then actively utilize such
activities for diplomatic activities. For this reason, the government will aggressively promote
international activities concerning advanced S&T, and advance activities for improving international
research networks.
<Promotional measures>
- The government will improve international research networks in various areas with countries
whose S&T levels are high, and promote international cooperation concerning advanced S&T
utilizing quality research resources from overseas.
- The government will promote cooperation in large-scale international projects and R&D requiring
comprehensive database preparation, taking into account opinions from researcher communities.
In so doing, in consideration of J apan's international position in each research area, the government
will provide support so that J apan may demonstrate leadership in the areas where it has strengths
and is strongly interested.
- J apan will support universities and public research institutions with the world's top level R&D
capabilities so that they may develop research activities at overseas research centers in
combination with the vitality of the world. In so doing, it is expected for such universities and
public research institutions to incorporate overseas resources, such as by employing capable local
researchers, utilizing the characteristics of overseas areas in research, and effectively using
overseas research fund systems.
- In promoting S&T, the government will promote the utilization of international frameworks such
as the G8, APEC, ASEAN+3, and East Asia Summit (EAS), international organizations such as the
United Nations and OECD, and research institutions such as the Economic Research Institute for
ASEAN and East Asia (ERIA). The government will also play a leading role in creating new
frameworks by taking advantage of J apan's S&T in meetings that have a great influence on policy
decisions of member countries. Furthermore, the government will seek international trust
concerning the peaceful use of nuclear energy, and play a leading role in international cooperation
on technical development and human resource development concerning nuclear nonproliferation
and security.

(iii) Promotion of the cooperation on global issues with developing countries
J apan is greatly expected to actively promote international cooperation with developing countries in
Asia, Africa, Latin America, etc. and contribute to the development of S&T, human resource
24
development, etc. in such countries. Such expectations are, in other words, responsibilities imposed on
J apan by the international community. From that viewpoint, the government will promote
multifaceted international cooperation with developing countries concerning S&T.
<Promotional measures>
- In cooperation with international organizations and NPOs developing activities in various areas,
the government will promote activities in combination with international joint research using
J apan's advanced S&T and technical cooperation through the Official Development Assistance
(ODA) in order to solve issues in developing countries.
- The government will promote multifaceted cooperation in human resource development, including
support of young researchers of counterpart countries involved in international joint research in
their acquisition of academic degrees in Japan, as well as continued support even after they return
to their home countries.

(iv) Enhancing the infrastructure for developing international activities for S&T
In order to progress strategically with bilateral / multi-lateral international cooperation activities
concerning S&T, it is necessary to further increase the dialogue between the J apanese government and
the governments of foreign countries, and to consistently collect and utilize information concerning the
trends of overseas S&T. For this reason, the government will strengthen the basis for developing
international activities for S&T.
<Promotional measures>
- The government will strengthen policy dialogues by leaders and cabinet members with foreign
countries concerning S&T by holding ministerial conferences, etc. In addition, under
inter-government and inter-organization coordination established through bilateral and multilateral
cooperation, the government will promote cooperation based on government dialogues and
agreements more effectively.
- In cooperation with universities and public research institutions, the government will establish
systems for information exchange and cooperation between their overseas centers and J apanese
diplomatic missions / researchers abroad. The government will also support policy dialogues
concerning S&T with the private sector from a viewpoint of expanding the range of J apan's
international activities.
- The government will establish a system for collecting, accumulating, analyzing, and using overseas
information cross-sectionally, consistently, and systematically in order to utilize such information
for policy decisions, and foster human resources who engage in such promotion.

25
IV. Enhancement of basic research and human resource development

1. Basic concept
The promotion of basic research serves as a key for creating new knowledge assets and solving various
global common issues. Basic research also constitutes the basis for maintaining and developing
J apan's high-level of S&T as a source of national strength, creating new industries by way of
innovation, and realizing a safe and affluent public life. Furthermore, the main players who engage
in such activities explore the frontier of knowledge via such basic research and promote efforts for
achieving relevant issues are those.
From such viewpoints, as well as in response to essential issues to be addressed by the country
described in Chapters II and III, the promotion of basic research with a long range perspective and
development of human resources who lead S&T should be further strengthened as the "two main
wheels of a car."
The significance and importance of basic research deriving from free ideas of researchers have
increased in recent years as basic research plants the seeds for producing innovation (seedbed for
diversity), extensively creates new intellectual / cultural values and makes direct / indirect contribution
to social development. In order to firmly establish the basis of STI in J apan, it is essential for Japan
to focus on creative diversified basic research and aggressively promote those projects, therefore the
government will implement efforts to drastically enhance basic research.
It is also necessary for J apan to strategically foster and support various human resources who lead the
promotion of STI from a mid- to long-term viewpoint. In particular, as various activities have been
developed globally in recent years, international competition to acquire human resources is further
intensifying. Accordingly, the government will strengthen efforts for the development and securing
of quality human resources from a viewpoint of actively promoting STI as a national commitment.
Moreover, in order for J apan to attract the world's top class human resources at home and abroad, and
promote R&D in combination with the vitality of the world, it is necessary to advance the
development of quality research facilities, equipment, and other environments. As such, the
government will further promote the establishment of research environments and infrastructure based
on international standards.

2. Drastic enhancement of basic research

(1) Enhancement of creative and diverse basic research
Basic research should be rooted in the intellectual curiosity and the spirit of inquiry of researchers and
conducted based on their initiative and creativity. Findings of such research will lead to the creation
of intellectual assets common to mankind and the accumulation of profound knowledge, and will
further serve as a source of wealth and strength for Japan. The government will, therefore, strengthen
efforts to promote such creative diversified research extensively and consistently.
<Promotional measures>
- The government will support basic research based on the free ideas of researchers, and increase
basic expenses for university operation (operating subsidies and facility improvement subsidies for
national university corporations, and aid to private schools) in order to enable academic diversity
and consistency, and ensure seedbeds for intellectual activities.
- The government will further expand Grants-in-Aid for Scientific Research in order to ensure a 30%
new adoption rate and 30% indirect costs. The government will also develop a system to secure
sufficient research funds for Principal Investigators (PI) by simplifying relevant existing systems.
- In order to develop seeds produced from the aforementioned research to achieve goals, etc., the
government will develop and improve various research fund systems and enhance coordination
with Grants-in-aid for Scientific Research. In particular, the government will further increase
26
research funds for supporting basic / fundamental researches strategically and aggressively.
- The government will improve the system of examination and assessment including peer reviews,
e.g., flexible determination of research themes and research assessment based on various indicators
such as international standards, in view of the nature of the basic research and in consideration of
the researcher's creativity and development potential of the research.
- The government expects researchers of universities and public research institutions to disseminate
information to gain a broad understanding from the people of the significance of research and
expected findings. The government will support such activities.

(2) Enhancement of globally top-level basic research
In order to further enhance research that is highly evaluated around the world as well as to attract
quality researchers at home and abroad, and promote globally-advanced R&D, it is necessary to build
research centers that can work as a hub of international research networks. To these ends, in order to
build centers for conducting the world's top level research / education activities, the government will
improve the environment for promoting the acquisition and acceptance of quality foreign researchers
and students, as well as promote efforts to strengthen and accelerate the reform of university
operations.
<Promotional measures>
- The government will aggressively support relevant activities in order to form a group of
research-focused universities that conduct research / education activities at an internationally high
level.
- The government will support, via various approaches, efforts for the promotion of research at an
internationally high level, development / securing of human resources, expansion of opportunities
for international dissemination of information, etc. In so doing, the government will individually
assess universities and public research institutions according to each research area, and examine a
system for reflecting assessment results in funds distribution.
- The government will promote the establishment of the world's top level research centers with
quality research environments by concentrating the world's top researchers, making prompt
decisions, independent personnel affairs and pay system, using English in each function, and
developing new interdisciplinary research areas.
- The government will advance the establishment of research centers provided with advanced
large-scale R&D infrastructure as core centers of international brain circulation.
- By also referring to overseas cases, the government will build a system that enables international
comparisons according to each research area, and identify the international and domestic positions
of each university for each research area. Also, based on the results of such activities, the
government will promote efforts to provide focused funding support and encourage strategic
personnel management and administration for universities that can serve as an international hub in
each research area.
- Through the aforementioned efforts, the government will aim to establish more than 100 research /
education centers with researchers whose research papers are ranked within the top fifty in the
world's citation ranking in their individual research areas, and considerably increase researchers
whose research papers are ranked within the top one percentile in the world's citation ranking in
their individual research areas.
- In order to promote the acceptance of quality foreign researchers and students at universities and
public research institutions, the government will strengthen support systems including fellowships
(grants for encouragement of research) and scholarships, ensure the execution of employment
agreements with a term of at least 3 years and reappointment provision, examine the measures
taken under the present immigration control system, and support environmental improvements for
the internationalization of related local governments and local communities including the living
27
environment of relevant families. In addition, under the 300,000 International Students Action
Plan, the government will promote comprehensive efforts for strategic acquisition of quality
exchange students.
- The government will promote efforts for re-invitation and research expense support in order to
maintain / enhance relationships with researchers and exchange students who did research in J apan.
In addition, the government will develop a database of J apanese researchers working actively
abroad to utilize it for employment and establishment of international networks.
- In order for universities and public research institutions to increase the appointment of quality
foreign researchers, the government will promote the enhancement of systems, such as by
improving research environments and treatment including salaries and deploying personnel with
expertise, and encouraging them to work on various efforts according to the characteristics of
universities etc., such as setting the percentage of foreign researchers to 10%. The government
will support such efforts.

3. Development of human resources to lead S&T

(1) Development of human resources capable of working activel y in diverse scenes

(i) Drastic enhancement of graduate school education
In fostering human resources of high expertise required internationally and extensive ability to work
actively in various areas of society, the role of graduate school education is very significant. In order
to make graduate schools more attractive and improve career path environments, it is necessary to
respond to various social expectations and promote efforts for improving the quality of university
education and research in reference to the results and issues of the 3rd Basic Plan. For this reason, the
government will promote drastic reform and enhancement of graduate school education aiming for the
development of quality human resources who can work actively in a knowledge-based society.
<Promotional measures>
- The government will promote the establishment of "Leading Graduate Schools," which provide
doctoral courses in international networks and cooperation with industrial sectors with the aim to
develop leaders who can lead the world in new fields of growth.
- The government will establish a "Human Resource Development Council (tentative name)" as a
function for dialogue between industrial sectors and universities in order to foment a common
understanding of human resource development. In addition, industrial sectors are required to
clarify what is required for graduate school graduates through this function and cooperate with
universities upon request in preparation of curriculums, etc. for quality improvement and career
path diversification for graduate school graduates.
- The government will formulate new "Guidelines for Graduate School Education Promotion
Policy," which specify the direction of graduate schools reform, purpose of graduate school
education, and systematic and intensive efforts for achieving the purpose in reference to the
opinions of the Central Council for Education, and then develop relevant policies based on the
Guideline.
- The government will upgrade assessments of universities and establish multifaceted assessment
standards and indicators that are comparable domestically and internationally in order to promote
function- and field-specific assessments of universities. In addition, the government will examine
and promote measures for applying such assessments to resource allocation in education research
support projects, etc.
- In order to promote systematic assessments of graduate courses and credits for majors at
universities, the government will request universities to set a purpose for human resource
development and goals for achieving that purpose, clarify the contents and methods of education,
28
improve coursework, develop and utilize teaching materials, etc. The government will support
such efforts and build a system for collecting and listing information concerning graduate school
education.
- In order for universities to ensure the quality of their graduate school education, the government
will request them to consider the review of the admission capacity of doctoral courses and adopt a
selection system for admission that is fair and open to domestic and foreign students and pertinent
to the purpose of human resource development.
- The government will expect universities to evaluate the educational performance of faculty
members from multiple viewpoints with visualized data, and enhance their awareness through
efforts to reflect evaluation results in personnel affairs and treatment, improved faculty
development (FD), increased opportunities for self-study, etc.
- The government will encourage universities to promote international educational cooperation with
overseas universities and research institutions, such as credit transfers and double degree programs
between J apanese and overseas universities. The government will also support such efforts.

(ii) Support for entry into doctoral courses and diversification of career paths
In order to encourage quality students to proceed to a graduate school's doctoral course, it is necessary
to ensure various types of career paths so that students may use their expertise not only at their
universities but also in industrial sectors or local communities after graduating from their school, in
addition to economic support while studying at their graduate school. For this reason, the
government will substantially strengthen economic support for doctoral course students, support for
career development for students, graduates, etc., and other support.
<Promotional measures>
- The government will increase grant-type economic support, such as fellowships, Teaching
Assistants (TA) and Research Assistants (RA), so that quality students may feel secure about
proceeding to a graduate school. With this effort, the government will strive to achieve the goal
set by the 3rd Basic Plan, i.e., "enabling 20 percent of doctorate course students to receive an
amount equivalent to their living expenses." The government will also take measures to reduce
the burden of students according to their family budget, such as by tuition reductions, scholarships
and loans, and encourage universities to help themselves, such as the use of donations from the
private sector.
- The government will request universities to ensure in cooperation with industrial sectors that
doctoral course students may develop management abilities and basic skills for multiple fields of
expertise as required in industrial sectors. Industrial sectors are also expected to evaluate the
capabilities of doctoral course graduates and post doctors to promote their appointment to positions
other than those for academic research.
- The central and local governments, universities, public research institutions, and industrial sectors,
in cooperation with each other, will further support the career development of doctoral course
students, graduates, and post doctors according to their aptitudes, hopes, and areas of expertise,
such as by increasing opportunities of long-term internship in businesses, etc.

(iii) Engineer training and skill development
In promotion of STI, industrial sectors and engineers supporting them play a core role. In addition, in
accordance with the advancement and integration of technologies, qualities and skills required of
engineers are becoming increasingly sophisticated and diversified. For this reason, the government
will strengthen efforts for the training of engineers, skill development, etc. in response to such
changes.
<Promotional measures>
- The government, universities, technical colleges, and industrial sectors will, in cooperation with
29
each other, formulate field-specific targets for fostering practical engineers, preparation of teaching
materials, internships, bilateral exchanges of human resources between industry and academia. In
addition, the government will expect universities to consider the formulation of double linear and
diversified curriculums and the establishment of an organized and systematic education system for
graduate school students who aspire to be practical engineers.
- The government will promote the dissemination, expansion, and further utilization of engineer
certification systems, such as for professional engineers, and review the existing systems in
response to the demands of the times. Industrial sectors are also expected to actively evaluate
professional engineers and promote their activities.

(2) Training for creative quality researchers

(i) Establishment of fair and highly transparent assessment systems
In order to train creative quality researchers, it is necessary to provide young researchers with
opportunities for independence and activities, and increase posts for them so that they may establish a
career path. At present, the ratio of young teachers is declining at universities, while teachers on the
whole are entering the stage of significant generational change. Taking advantage of the situation, the
government will promote efforts so that universities may increase posts for young researchers and
establish a fair and transparent ability-based personnel system in adopting them.
<Promotional measures>
- The government will request universities and public research institutions to focus on qualitative
assessments in evaluating the performance of researchers, and conduct fair, flexible, and
transparent ability-based assessments from various viewpoints, such as efforts for developing R&D
results to commercialization or international assessment of research papers. It is also expected to
reflect results of such assessment appropriately in the treatment of relevant researchers.
- The government will expect universities, in accordance with their purpose and characteristics, to
review treatment so as to reflect the performance and duties of researchers appropriately, and
promote the increase of posts for young researchers and appointment of quality researchers, e.g.,
through a review of researchers who reached a certain age or their shift to another pay system.
- The government will expect universities and public research institutions, in accordance with their
purpose and characteristics, to select quality human resources at home and abroad through
international solicitation. The government will also expect them, in accordance with their
purpose and characteristics, to step by step promote employment based on an annual salary system.

(ii) Improvement of career paths for researchers
In order to train quality researchers, it is necessary to improve career paths for young researchers as
well as to secure posts for them. In so doing, it is significant to increase the mobility of researchers
in order for researchers to accumulate experiences in various research environments and broaden their
human networks and views as a researcher. On the other hand, it is pointed out that efforts to
improve the mobility in some cases discourage young researchers from working on research, so the
government will develop career paths that both provide stability to researchers and ensure a certain
level of mobility.
<Promotional measures>
- The government will increase support to universities that promote the dissemination and
establishment of the tenure track system.
5
.

In so doing, the government will ensure that each
university will introduce the tenure track system according to its purpose and characteristics.

5
A system that enables young researchers employed through a fair and transparent system to accumulate experiences as an
independent researcher in the form of employment with a fixed term of service before gaining a more stable position
through review process.
30
Consequently, the percentage of teachers belonging to the same system will rise to about 30% of
the total number of newly hired young natural science teachers of all universities.
- The government will substantially increase support, such as fellowships and research funds, in
order to build an environment where quality young researchers selected through competition can
concentrate on research independently at a place where they desire to work.
- The government will expect universities and businesses, in collaboration with each other, to
enhance the mobility of human resources by promoting a personnel exchange system that enables
quality researchers to step up between the university and business or otherwise. The government
will also expect universities, in accordance with their purpose and characteristics, to establish a
personnel system that highly evaluates experiences and performance in a quality university other
than their alma mater or public research institution, at home and abroad.
- The government will strengthen support for overseas sabbatical and study so that young
researchers and students with excellent qualities and abilities may actively work on studies in
foreign countries. The government will also expect universities and public research institutions to
establish a personnel system to appropriately evaluate the experience of studying abroad in
employing young researchers.

(iii) Promoting the activities of female researchers
J apan is promoting the appointment and activities of female researchers by setting numeric targets for
the adoption of female researchers under the 3rd Basic Plan. As a result, their number is increasing
year by year, but is still at a low level as compared with those in foreign countries. The appointment
of female researchers is very significant for not only the enhancement of gender equality but also to
demonstrate organizational creativity by adopting various viewpoints and ideas and stimulating
research activities. For this reason, the government will improve the environment for further
appointment of female researchers and promotion of their activities.
<Promotional measures>
- Considering as well the present percentage of women researchers in doctoral courses, the
government will promote relevant activities so as to achieve the numerical target for recruitment of
female researchers under the 3rd Basic Plan, i.e., 25% for natural science as a whole, and further
raise the percentage to 30%. In particular, the government will aim at early achievement of the
targets of 20% for physical science, 15% for engineering, and 30% for agriculture, and
achievement the target of 30% for the total of medicine, dentistry, and pharmacy.
- The government will support universities and public research institutions that improve their
research support system, etc. so that female researchers may cope with childbirth, childcare and
research. The government will expect universities and public research institutions to work on the
establishment of flexible employment, personnel and assessment systems, telecommuting and
short-time working systems, improvement of research support system, etc.
- The government will expect universities and public research institutions, in order to achieve the
foregoing targets, to promote active appointments by formulating specific plans concerning efforts
for stimulating activities of female researchers and the numeric targets set for female researchers,
and to release to the public the percentage of enrolled women researchers according to job
classification and department. The government will also expect them to promote efforts to
increase female researchers in a leading position, female students of natural science, and quality
women aiming to be a professional researcher.

(3) Development of human resources who can lead the next generation
In order for J apan to lead the world with S&T in the future, it is necessary to consistently and
systematically nurture talented children to lead the next generation. In J apan, the percentage of
junior and senior high school students who have interest in learning science and enjoy learning science
31
and mathematics is low as compared with foreign countries. The government will, therefore, develop
consistent activities to enhance the interest of children in science and mathematics at elementary and
secondary education so as to increase the population of children interested in such subjects, and to
identify talented children and develop their abilities.
<Promotional measures>
- The government will expect each board of education and university, in cooperation with one other,
to promote activities concerning graduates from science / engineering departments or graduate
schools, by utilizing the special course and special part-time instructor systems.
- The government will request each board of education and university, in cooperation with one other,
to increase opportunities to come in contact with S&T and practice observation and experiment
through training for active faculty members and teacher training courses.
- The government and each board of education, in cooperation with universities and industrial
sectors, will increase opportunities for practical and easy-to-understand learning, such as study
tours to laboratories and plants, experiments and classes on demand, and utilization of digital
teaching materials. The government and each board of education will also review / improve
observation and experiment instruments, etc. in schools.
- The government and each board of education will increase opportunities for further activities of
outside personnel as observation / experiment supporting staff, including researchers and engineers
of universities or industrial sectors and students of science / engineering departments or graduate
schools who aspire to become teachers.
- The government will further strengthen support for the Super Science High School (SSH), which
aims at the development of S&T-related human resources who are expected to lead the next
generation, and promote efforts to spread the results of such activities widely to other schools.
- The government will strengthen efforts to increase children who participate in international S&T
competitions, develop the talents of such children, and increase efforts to raise the students' interest
in S&T, e.g., by holding a "Science Koshien" or "Science Inter-Collegiate Game."
- The government will support efforts to evaluate results of international S&T competitions, SSH,
etc. in entrance examinations for universities, and promote efforts for smooth
high-school-university cooperation, such as completion of university natural science or major
subjects while in high school.
- From a viewpoint of developing talents for S&T, the government will consider policies for high
school students to learn more advanced contents, improve issues concerning the way university
entrance examinations should be, etc.

4. Establishment of international-level research environment and infrastructure

(1) Improvement of R&D environments at universities and public research institutions

(i) Development of facilities and equipment at universities
Universities should develop high-quality facilities and equipment with satisfactory functions in order
to cope with more advanced and diversified education and research activities, attract quality human
resources and enhance global competitiveness, and promote industry-university cooperation, local
contributions, and internationalization. Development of facilities and equipment at universities is
steadily progressing, but some of them have difficulties with systematic improvements or maintenance
due to the severe financial circumstances, so the government will promote efforts for developing /
advancing such facilities and equipment, and ensuring stable operation.
<Promotional measures>
- The government will formulate a plan for aggressively developing facilities at all national
university corporations (including the Inter-University Research Institute Corporation and
32
technical colleges), strengthening support and ensuring stable and consistent development.
- The government will request national university corporations to formulate a campus development
plan based on a long-term perspective, and further promote facility management. The
government will also expect them to utilize various revenue sources, such as donations,
self-income, long-term loans, and Private Finance Initiatives (PFI), for facility development. The
government will promote efforts to support tax benefits including consideration of the way it
should be. The government will also increase support for the improvement of facilities and
equipment at private universities.
- The government will increase support to national university corporations via systematic
development / renewal and stable maintenance of their research equipment and the development of
large / advanced research equipment available for joint use / research. The government will also
support their efforts to secure engineers who engage in the maintenance, operation, and
development of research equipment.
- For research facilities and equipment possessed by universities, in order to ensure the effective use
of limited resources, the government will develop a system for effective mutual use and reuse via
inter-university cooperation.
- The government will formulate a promotion plan, including operation stage, for large scientific
research projects going on under the leadership of universities in reference to discussions made by
the community of researchers, and will provide stable and consistent support based on this plan
after implementing objective and transparent assessments. In so doing, for projects to be
advanced under international cooperation, the government will carefully examine whether to join
such projects, extent of involvement, etc. considering appropriately the international position,
domestic utilization, etc. concerning J apan's R&D capabilities. In addition, the government will
ensure the optimization of resource allocation through constant reviews even after commencement
of the project, such as to focus resources on high-priority projects.

(ii) Promoting the development and shared use of advanced research facilities and
equipment
Public research institutions have so far played a leading role in the development and operation of
advanced research facilities and equipment, which require high costs and are appropriate for joint use
in extensive areas of S&T. Such advanced research facilities and equipment are very important for
producing quality R&D findings and personnel training, but how to maintain and manage such
facilities is becoming a matter of concern since financial support for public research institutions has
been falling. For this reason, the government will promote efforts to ensure that public research
institutions can sufficiently develop, operate, and promote extensive joint use of such facilities and
equipment.
<Promotional measures>
- In addition to the promotion of world-leading R&D, the government will steadily advance
development and renewal of advanced research facilities and equipment expected to be used for
extensive areas centering on public research institutions, and provide support for steady operation
of such facilities and joint use of the world's most advanced research facilities and equipment,
including facilities under the "J oint Use Law"
6
.
- In order to promote joint use of their facilities and equipment and enhance convenience for
researchers and organizations that use them, public research institutions will improve and
strengthen the user support system, such as appropriate arrangement of technical support engineers
after ensuring stable operation and grasping user needs. In addition, in order to create quality
research findings, public research institutions will take measures, in joint use, for strategically

6
Law concerning the Promotion of Shared Use of Specific Advanced Large Research Facilities (Law No. 78 of 1994)
33
conducting R&D that is expected to produce quality results, including public solicitation for
research themes and methods for selecting themes.
- In order to promote the fusion of different fields and innovation, the government and public
research institutions will promote the development of research facilities and equipment that leads
to the advancement of basic technologies that are expected to bring drastic innovation and are
available commonly for a broad range of R&D issues, and strengthen networks among them.

(2) Development of intellectual infrastructure
In order to promote R&D activities effectively and efficiently, it is necessary to systematize
intellectual assets, such as research findings and research materials, and thereby develop intellectual
infrastructure
7
so that they may be available for use by many researchers. Since development of
research materials, measurement standards, measurement / assessment methods, etc. is favorably
progressing, development of intellectual infrastructure will be promoted in the future also from the
viewpoint of quality improvement in order to respond to various needs of users.
<Promotional measures>
- The government, in view of the progress made with the "Intellectual Infrastructure Development
Plan," will formulate a new development plan to promote the development, use, and application of
intellectual infrastructure, centering on universities and public research institutions as core
organizations, in cooperation with related organizations.
- The government will promote the accumulation of results based on user needs, development and
integration of databases, use and application of such database, and effective use of devices and
equipment that have already been developed, and thereby improve and advance intellectual
infrastructure. The government will also promote participation in international activities for
development, implementation of joint research with foreign countries, mutual use, and
standardization with regard to intellectual infrastructure.
- The government will proceed with the development of advanced measurement / analysis
technologies and equipment under a cooperation system with entities of commercialization and
users, and promote the dissemination and use of developed technologies and equipment in R&D
organizations including universities and business enterprises, and the marketplace.
- In order to proceed with the stable and consistent development of intellectual infrastructure, the
government will promote efforts to train and secure personnel engaging in development and
granting incentives to development institutions.

(3) Development of research information infrastructure
Research information infrastructure is the basic information infrastructure that supports Japan's R&D
activities, and steady promotion has so far been implemented, including development and operation of
research information networks and retention and dissemination of research findings. Meanwhile,
development of research information infrastructure is becoming difficult for individual organizations
due to financial, administrative, and technical issues. Considering such circumstances, the
government will promote efforts to enhance research information infrastructure and ensure
information dissemination of research findings and further improvement of distribution systems.
<Promotional measures>
- The government will encourage universities and public research institutions to establish
institutional repositories
8
so that they may promote systematic collection, retention, and open
access of education and research results, such as research papers, observations and experiment data,

7
Research materials, measurement standards, measurement / analysis / test / assessment methods, and advanced equipment,
related databases, etc. concerning them.
8
An electronic archive system for the retention and public release of research papers and other data according to each
organization.
34
by digitalizing them. The government will also promote electronic issuance of research paper
journals published by academic societies and associations, and electronization and open access to
literature and materials possessed by the National Diet Library and university libraries, including
those on humanity and social science.
- The government will advance networking of digital information resources, standardization of data,
development of basic information on the location of contents, and enhancement of the function to
associate information, and then promote cross-disciplinary integrated search, structuralization, and
automatic knowledge extraction. The government will also build a system for "knowledge
infrastructure," which enables integrated searching of and data extraction from all research
information.
- The government will expect universities and public research institutions to consider effective
measures for the efficient and stable subscription of electronic journals. The government will
also support such efforts.

35
V. Development of policies to be created and promoted together with society

1. Basic concept
In recent years, political, economic, and social environments concerning STI policies have been greatly
changing in J apan, and it is necessary to proceed with steady improvements and reforms in accordance with
such changes. Particularly, it is becoming increasingly important to obtain the understanding, support,
and trust of the people in formulating and promoting STI policies.
With such viewpoints, the 4th Basic Plan positions STI policies as part of "Policies for society and the
public," and promotes the public involvement in these policies and S&T communication activities in order
to deepen the relationship between society and STI. In addition, the government will strengthen
accountability by identifying the entity of promotion, objectives, and goals for each stage of strategy
planning and promotion, and promote efforts for the establishment of a PDCA cycle.
To reform systems for researching and developing S&T, various efforts have been made by the government,
universities, and public research institutions, including the development of R&D infrastructure and
improvement of research environments. Meanwhile, as further efficiency is pursued in all policy fields,
issues are pointed out in terms of policy promotion systems, allocation of research funds, R&D systems, etc.
In addition, the Research and Development Enhancement Law was established in 2008, providing for a
review of the same Law within 3 years (by October 2011). Accordingly, in view of the status and issues
concerning R&D, the government will greatly enhance the effectiveness of STI policies by aggressively
pushing R&D system reform forward.
Moreover, in order to implement STI policies steadily in order to achieve the goals of the 4th Basic Plan, it
is essential to secure sufficient investment in R&D. As foreign countries are further increasing
investments in S&T, the government, in order to enhance the competitiveness in STI, which could be
considered J apan's single resource, and maintain the present international position, will further strengthen
investment in R&D with the extensive understanding, support, and trust of the public.

2. Deepening the relations between society and STI

(1) Promotion of STI policies from the public viewpoint

(i) Further involvement of the public with policy planning and promotion
In order for STI policies to lead to economic / social value in J apan, the government is required to
correctly grasp the public expectations of issues and social needs in planning and promoting such
policies, and appropriately reflect such expectations in the policies. It is also necessary to
disseminate such policies widely to all levels of the people and to strive to enhance accountability.
Accordingly, the government will promote efforts for taking public comments and obtaining the wide
public involvement in planning and promoting policies.
<Promotional measures>
- The government will develop new systems, such as by creating opportunities for a wide range of
the people to join discussions of issues and social needs to be addressed with STI policies,
measures for returning results to society, etc.
- The government will promote efforts to collect opinions from a wide range of the people in
planning and promoting policies, measures, and large R&D projects. The government will also
expect universities and public research institutions to actively promote similar efforts.
- From the viewpoint of enhancing the people involvement in government policies, the government
will support, e.g., S&T activities by NPOs, etc., and efforts for the investigation and analysis of
social issues.
- In order to strengthen cooperation between those engaged in S&T policy planning and those
leading R&D, the government will promote the creation of opportunities for dialogue between
36
parliamentary members / policy makers and researchers.
- The government will promote efforts to clarify to the extent possible policies, objectives of
measures, performance targets, time limits, entities of implementation, budgets, etc., release the
progress of such policies, etc. widely to the people, and reflect opinions obtained from the people
in reviewing the relevant policies, etc.

(ii) Response to ethical / legal / social issues
As the contents of S&T become more sophisticated and diverse in accordance with progress,
involvement of the people in S&T is becoming increasingly close in legal, ethical, and social terms,
such as the issue of bioethics and concern over genetically modified organisms (GMO). For this
reason, the government will further strengthen efforts concerning social impact and risk assessments of
S&T.
<Promotional measures>
- The government will formulate guidelines for those who lead S&T to understand ethical / legal /
social issues correctly in their activities in consideration as well of international trends. In so
doing, the government expect academic societies, etc. to proceed with activities taking
independently into account the formulation of such guidelines, etc.
- In order to promote activities to solve ethical / legal / social issues, the government will promote
the allocation of a portion of research funds to such activities according to the purpose and
characteristics of the research fund system.
- The government will improve the regulatory science so as to formulate examination guidelines and
criteria based on grounds concerning scientific reasonableness and social validity.
- The government will consider the way technology assessment
9
should be and promote efforts to
ensure broad consensus-building based on technology assessments, etc. in making decisions on
policies, etc.

(iii) Training and securing human resources who connect society with STI policies
In order to make activities concerning STI policies effective, the role of human resources engaging in
such activities is significant. For this reason, the government will promote efforts for training and
securing personnel who act as a bridge between society and STI, and promote activities of such
personnel in various opportunities of STI.
<Promotional measures>
- The government will train and secure personnel who engage in the management of R&D, etc.
concerning STI considering requests, etc. from society and the public, such as "Strategy Managers
(tentative name)" who head up strategy councils and Program Directors (PD) and Program Officers
(PO) in relevant ministries and agencies and fund distribution organizations.
- The government will train and secure specialists for research administration (Research
Administrator) who manage overall R&D activities using their expertise, specialists for research
techniques (Science Technician) who engage in technical affairs and development of intellectual
infrastructure concerning research, specialists for intellectual property, etc.
- The government will train and secure personnel who have expertise in the relationship between
society and STI, including technology assessments.
- The government will train and secure S&T communicators who act as a bridge between the public,
policy makers, and researchers to communicate findings, etc. from research activities to the public
in an easy-to-understand manner.


9
Activities to investigate, analyze, and assess the effect of S&T on society and the public according to the development
stages of R&D.
37
(2) Promotion of S&T communication activities
In order to implement STI policies with the public understanding, support, and trust, activities for
interactive communication between the people and the government, research institutions, and
researchers is necessary with regard to R&D activities and expected results. For this reason, the
government will promote more actively S&T communication activities by researchers, various
activities concerning S&T in science museums, etc. With such activities, the government will also
aim to improve the public literacy in S&T so that people may adequately grasp and flexibly use
knowledge concerning S&T.
<Promotional measures>
- In order to increase opportunities for the people to come into contact with S&T, the government
will actively develop activities for interactive dialogues and opinion exchange by holding S&T
events jointly with local communities, opening to the public of research facilities during Science &
Technology Week, implementing Science Cafe, etc.
- The government will support experimental lectures, experience-based activities, and other events to
be implemented by science and other museums of local communities. The government will also
support groups, etc. that develop various activities concerning S&T.
- The government will support organizational efforts for S&T communication activities at
universities and public research institutions. The government will also request researchers who
received more than a certain amount of government research funding to hold dialogues with the
people concerning the contents and findings of their research activities.
- The government will expect universities and public research institutions to accumulate know-how
cultivated through individual activities, and promote the training and securing of expert personnel
who engage in such activities, in order to disseminate and firmly establish S&T communication
activities. The government will also expect them to promote the participation of researchers in
S&T communication activities and reflect results of such activities in performance appraisals.
- The government will expect that academic societies and associations, recognizing their important
functions to provide opportunities for the presentation of research findings by researchers,
assessment of findings, and cooperation between researchers or relevant organizations at home and
abroad, to strengthen such functions and disseminate research findings and results widely to
society.

3. Promotion of effective STI policies

(1) Enhancement of policy planning, making and promotional functions
In J apan, the Council for Science and Technology Policy was installed as an organization that
promotes S&T policies across governmental ministries and agencies under the prime minister's
leadership, and has been playing its roles in the formulation of the basic policy and other strategies and
resource allocation policies, assessments of large-scale R&D projects, etc. However, for integrated
promotion of STI policies, it is necessary to strengthen functions to promote policies systematically
and comprehensively from a broader viewpoint. For this reason, from a viewpoint of positioning STI
policies as a national strategy and promoting them much more intensively, the government will
establish a "STI Strategic Headquarters (tentative name)" by reorganizing the Council for Science and
Technology Policy, in order to strengthen the functions of policy planning and promotion.
<Promotional measures>
- Positioning STI policies as significant policies in national strategies, the government will
aggressively promote efforts to formulate specific strategies under the 4th Basic Plan and secure
budget and resource allocations for S&T under the leadership of the "STI Strategic Headquarters
(tentative name)."
- The government will establish strategy councils for each essential issue designated by the
38
government with extensive participation from industry, academia, and government, and formulate
strategies according to each essential issue in reference to results of discussions in each council.
In addition, the strategy councils will promote activities to be developed under such strategies.
- The government, in cooperation with relevant ministries and agencies, will strengthen activities
concerning the "Action Plan for the Implementation of Important Science and Technology Policy
Measures" ("Action Plan"), which comprehensively promotes measures concerning essential issues,
and advance the reform of the budgeting process by utilizing activities concerning the Action Plan
and resource allocation. In formulating the Action Plan, the results of discussions on specific
strategies in the strategy councils will be fully utilized.
- The government will classify the functions of R&D systems in J apan into four stages: "policy
decisions", "measures formulation", "fund distribution", and "R&D implementation," and then
specify roles, functions, entities, etc. required in each stage.
- The government will promote a "Science for STI Policy" in order to plan policies based on
objective grounds (evidence) and reflect results of policy evaluation and verifications in policies.
In so doing, the government will ensure the involvement of a wide range of researchers from the
humanities and social sciences as well as the natural sciences, and promote the training of
personnel engaging in policy formation through such activities.
- From the viewpoint of promoting S&T-based innovation, the government will identify regulations
and institutions considered to be bottlenecks in such promotion, and develop a system for
discussing measures to improve such regulations, etc. among relevant ministries and agencies.

(2) Enhancement of the assessment and allocation functions in the research fund systems

(i) Systemic reform for effective and efficient assessment / allocation of research
funds
In operating a research fund system, it is necessary to identify the entities that examine and allocate
research funds so that funds may be appropriately used by researchers and research organizations, and
improve the system in order to facilitate the effective use of research funds. At present, allocation of
research funds, etc. is implemented by relevant government ministries / agencies and fund distribution
organizations according to the fund system. In addition, the issue of low convenience in using research
funds is being improved, while it is also pointed out that there are still limitations on the purpose of
use, etc. In view of these issues, the government will advance reform to establish a more effective
and efficient research fund system.
<Promotional measures>
- The government will ensure that the functions of reviewing and distributing research funds are
performed by relevant government ministries and agencies for R&D projects directly related to
administrative demands or by independent fund distribution organizations for other R&D projects.
For the research fund systems that qualify for operation by fund distribution organizations, the
government will promote the transfer of the function from relevant government ministries and
agencies to such organizations from the viewpoint of ensuring expertise in efficient and flexible
operation and management of research funds according to their purposes and characteristics.
- The government will consolidate the research fund systems that have a similar purpose or subject
of R&D within or across government ministries and agencies. In addition, the government will
further promote efforts to integrate, simplify, and streamline rules, etc. for using research fund
systems and to utilize the approved carry-over system, and consider systemic reform that enables
execution over two or more fiscal years.
- In order to ensure the effective use of equipment purchased with research funds, the government
will strive to mitigate the conditions of research fund systems so that joint use of equipment by
researcher other than those to whom the fund was granted may be widely accepted.
39
- The government will promote the "Funding Program for the World-Leading Innovative R&D on
Science and Technology" that was established as a fund in fiscal 2009, and evaluate this Program
from the viewpoint of flexible management of research costs. In addition, the government will
consider systemic reform for other research fund systems according to their purposes and
characteristics.

(ii) Improvement and enhancement of the competitive fund system
The competitive fund system is an essential research fund system for the establishment of a
competitive research environment and the consistent and developmental commitment by researchers to
various and creative R&D activities. It is classified into various systems according to the purposes
and characteristics of research projects. As R&D activities are becoming increasingly advanced and
sophisticated, efforts to further improve this competitive fund system will be promoted by ensuring the
diversity of the system.
<Promotional measures>
- The government will further increase competitive funds with the aim to enhance the rate of new
adoption and ensure sufficient research costs per project. In so doing, the government will strive
to implement action for securing 30% of the budget for indirect consts, while securing direct costs
with regard to all competitive fund systems. The government will also request universities, public
research institution, etc. to use indirect costs effectively.
- The government, looking over all the competitive fund systems in Japan, will identify the
objectives and positions of each system and promote efforts to ensure the continuity between
systems while ensuring the diversity of fund distribution organizations.
- Aiming for fair, transparent, and high quality examination and assessment, the government and
fund distribution organizations will ensure diversity in age, gender, organization, etc. of examiners,
eliminate stakeholders, develop an examiner evaluation system, specify methods and criteria for
examination and adoption, and disclose examination results.
- The government and fund distribution organizations will increase and secure Program Directors
(PD) and Program Officers (PO) after identifying their authorities and roles. In addition, the
government expect universities and public research institutions to evaluate the job experience of
PDs and POs so that they may be positioned as part of the career paths of researchers.
- The government and fund distribution organizations will request universities and public research
institutions to properly manage researchers in order to avoid illogical overlaps and excessive
concentration of fund allocations, and manage competitive funds appropriately and efficiently by
operating the "Cross-ministerial R&D Management System (e-Rad)."
- The government and fund distribution organizations will promote efforts to prevent unauthorized
use of research funds. In addition, the government will request universities and public research
institutions to establish a system for appropriate management and auditing of research funds.

(3) Enhancement of R&D implementation systems

(i) Reform of the R&D Corporation
The R&D Corporation is an institution performing R&D activities that are difficult for private sectors
or universities, such as R&D of a long-term perspective, high public nature, or high risk at present.
The R&D Corporation was established as an independent administrative agency, but should be
improved to a corporation in full consideration of the peculiarity of its R&D activities, etc. From
such viewpoints, the Research and Development Enhancement Law and the additional resolution that
necessary actions should be taken for the way the R&D Corporation should be. Considering such
circumstances, the government will promote efforts to strengthen the functions of the R&D
Corporation.
40
<Promotional measures>
- In reference to the "Basic Policy on Review of Administrative Systems / Projects of Independent
Administrative Agencies," the government will establish a new system concerning national R&D
institutions to achieve reform, etc. in organizational governance or management, considering the
characteristics of R&D (long-term nature, uncertainty, unpredictability, and expertise). In
addition, the government will promptly consider reviewing institutions that can be improved in
operation under the current system.
- The government will take budgetary measures necessary for the R&D Corporation, and promote
the joint use of the Corporation's facilities and equipment, and the introduction of outside funds
through acceptance of joint / contract researches, etc.

(ii) Development of a system for promoting research activities effectivel y
In order for universities and public research institutions to promote research activities effectively and
efficiently, it is necessary to develop, in addition to researchers, a system enabling active working for
various personnel specialized in management of overall research activities, management / operation of
intellectual properties, maintenance / management of facilities and equipment, etc. It is, however,
pointed out that each research institution is insufficient in securing specialized personnel and that
researchers do not have enough time for their research, so the government will strengthen efforts to
improve such conditions.
<Promotional measures>
- The government will encourage universities to promote efforts to ensure that doctoral course
students / graduates and post doctors can acquire expertise as Research Administrators, Science
Technicians, intellectual property experts, etc. The government will also support such efforts.
- The government will support universities and public research institutions in their effort to secure
various human resources, such as Research Administrators, Science Technicians, and intellectual
property experts. In addition, the government will expect universities and public research
institutions to evaluate such personnel properly and reflect evaluation results in personnel
treatment and establishing career paths for them.
- The government will request universities to promote the training and securing of personnel
engaging in the promotion of research activities under systematic SD (Staff Development), and
strengthen the executive office system. In addition, the government will expect them to evaluate
appropriately the performance of such personnel and reflect evaluation results in personnel
treatment.

41
(4) Establishment of PDCA cycle in STI policy

(i) Ensuring the effectiveness of PDCA cycle
In order to promote an STI policy effectively and efficiently, after setting clear performance targets,
such as policies, measures, implementation systems, etc., it is necessary towards promotion to conduct
follow-up timely and appropriately and to ensure progress by establishing the PDCA
(Plan-Do-Check-Action) cycle reflected in the review of policies etc. and the planning of new policies
etc. For this reason, the government will promote efforts for ensuring the effectiveness of the PDCA
cycle.
<Promotional measures>
- The government will specify, to the extent possible, objectives, performance targets, time limits,
entities of implementation, etc. according to each level of the hierarchy of R&D systems, i.e.,
policies, measures, programs or systems, and individual R&D issues. Then, the government will
ensure the implementation of assessments based on them, and appropriately reflect assessment
results in reviews of policies, etc., planning of new policies, etc., prioritization of resource
allocation, efficiency increase, etc.
- In the strategy councils, the government will ensure pliable and flexible promotion of strategies,
including the review of R&D, promotion system, fund distribution, etc. in view of the progress of
the entire strategy according to each essential issue, and reflect results of such review in strategies
timely and appropriately.
- The government will follow up Action Plan with regard to their reflection in budgets, progress of
measures, etc. and reflect follow-up results in the improvement of Action Plan. In so doing, the
government will fully utilize results of discussion made in the strategy councils.
- The government will follow up the progress made with the 4th Basic Plan timely and appropriately,
and will utilize results of the follow-up in reviewing the Basic Plan and new policy planning.

(ii) Improvement and enhancement of R&D evaluation systems
Evaluation of R&D in the execution phase has an important role in enhancing the quality of R&D, and
establishing a PDCA cycle. Meanwhile, viewpoints required for evaluation are becoming diversified
in accordance with the advancement and sophistication of R&D, and due in part to such diversification,
the issues of overlap in evaluations and excessive load have been pointed out. Hence, the
government will further improve and enhance R&D evaluation systems in accordance with the
"National Guidelines for Evaluating Government Funded R&D," and thereby promote the utilization
of evaluation results for the advancement of quality R&D activities, human resource training, effective
and efficient fund distribution, enhancement of accountability, etc.
<Promotional measures>
- From the viewpoint of promoting STI, including the establishment of R&D evaluation systems
based on each level of R&D (policy, measures, programs or systems, R&D issues), the government
will extensively examine the way R&D evaluation systems should be, and review, as needed, the
"National Guidelines for Evaluating Government Funded R&D."
- The government and fund distribution organizations will establish diversified evaluation criteria
and items so that high-risk researches and researches on new / integrated areas may be positively
evaluated. In the evaluation of R&D issues, the government will promote setting personnel
training, S&T communication activities, etc. in evaluation criteria or items in addition to R&D
activities. In addition, if considered effective, application of global benchmarks and appointment
of researchers working actively abroad as assessors will be promoted.
- The government and fund distribution organizations will promote efforts to implement evaluations
at an appropriate time before R&D is completed in order to carry quality R&D results to the next
stage without interruption.
42
- The government and fund distribution organizations will promote streamlining and efficiency
increases in R&D evaluations through the utilization of results of other evaluations in order to
avoid overlaps of evaluations and excessive load.
- The government will promote the training and securing of personnel with expertise and experience
in R&D evaluations. The government will expect universities and public research institutions to
develop administrative systems to conduct evaluations effectively and efficiently, such as the
utilization of an operation-specific information system for R&D evaluations, and promote training
of personnel engaging in such activities and the securing of career paths for them.

4. Expansion of R&D investment
Since J apan has the issues of limited natural resources and an aging and decreasing population with a
declining birthrate, S&T and S&T-based innovation could be the sole source of competitiveness in the
future. In that sense, S&T could be referred to as the lifeline of J apan. Based on this viewpoint, the
government is united in strengthening S&T by setting target amounts to increase R&D investments in
Basic Plans. As a result of such efforts, as compared with other general expenditures, S&T
expenditures increased, although they were still short of the targeted amounts set by the 2nd and 3rd
Basic Plans. Such increase in the expenditure is highly evaluated given the recent slow growth in
GDP and severe financial situation.
In recent years, however, in addition to developed countries, newly emerging countries, including
China, are considerably increasing investment in S&T as a national effort for S&T development. A
future decline in the position of Japan even in S&T is, therefore, a serious concern. Hence, in order
to maintain the position of a developed country in S&T with steady implementation of the policies
provided by the 4th Basic Plan, and contribute to the world via STI, such as solutions for global issues
in cooperation with other countries, it is essential to increase investment by setting clear targets for
R&D investment that support such efforts.
The government has recently established the target
10
of increasing S&T investment by the government
and private sectors up to fiscal 2020. Meanwhile, to increase targets, the government must determine
specific targets for S&T investment by the government in the 4th Basic Plan, comprehensively
considering that the percentage of the J apanese government's burden of research costs is lower than
foreign countries, that the government's investments are expected to produce the synergetic effect of
promoting private-sector investment, which is in the bad situation, and that many foreign countries are
increasing S&T investment by setting targets.
Accordingly, the target of R&D investment is set to 4% or more of the GDP in the total of the
government and private sectors, and set to 1% of the GDP in the government sectors.
To this end, the total amount of the government's R&D investment during the period of the 4th Basic
Plan needs to be about 25 trillion yen (calculated on a trial basis assuming that the government's
investment in R&D totals 1% of the GDP and the nominal growth rate of GDP is 2.8% on average).
Accordingly, although the financial situation of J apan is expected to become worse and critical, the
government will aim to secure the expense budget necessary for promoting the measures of the Basic
Plan so as to ensure consistency with the Fiscal Consolidation Targets, decided by the Cabinet in June
2010, and the Fiscal Management Strategy including the Medium-term Financial Framework.
In parallel, in order to induce R&D investment by private sectors, the government is also required to
consider a reasonable review of regulations and institutions, preferential tax treatments for R&D
investment by private sectors, etc..

10
The New Growth Strategy states to "increase investments by the government and private sectors to a total of 4% or more
of the GDP by fiscal 2020."