Special Feature 1: Future Vision for Improving Japan’s “Collective Knowledge and Wisdom” -Reconstructing the Higher Education System-

(3) Reform of Graduate School Education

　From the perspective of maximizing each student's potential, it is crucial for graduate schools to provide higher-quality education. In addition, curricula should actively respond not only to the individual needs of learners but also to the broader needs of society, including those of industry and the international community. It is also necessary to make graduates’ performance in society more visible and to strengthen systematic support for career development. On the other hand, efforts and cooperation by companies, such as expanding recruitment, improving compensation, and supporting employees in obtaining doctoral degrees, are indispensable. To further promote such proactive initiatives within industry, closer collaboration among industry, academia, and government is also required.
　In order to promote high-quality graduate education, it is necessary to advance the systematic organization of graduate programs. This includes establishing integrated five-year master’s and doctoral degree programs, substantially expanding integrated bachelor’s–master’s programs, fostering diverse and inclusive learning environments, and ensuring diversity supported by greater student mobility by reducing the prevalence of automatic internal advancement.

(4) Strengthening Research Capabilities

　In university education, which is supported by the two pillars of “education” and “research,” it is essential to develop an environment that enables researchers to devote themselves to both teaching and research in order to provide high-quality education and achieve excellent research outcomes. In doing so, it is important to approach this from two perspectives: further enhancing the research environment and removing factors that may hinder it.
　To this end, it is necessary to build a high-quality research environment by eliminating quantitative shortages and improving the quality of the R&D management professional, as well as by strengthening the functions of inter-university research institutions. It is also important to promote the utilization of faculty members who respectively focus on research and education, reduce administrative workloads by reviewing the necessity of formal/official meetings to remove factors that hinder the research environment, and continuously and stably support reforms by each university aimed at enhancing research capabilities.

(5) Promoting Information Disclosure

　If higher education institutions fail to communicate appropriate information, differences in the selectivity of admissions, which arise from factors such as institutional size, location, and reputation, may accelerate the consolidation of institutions, and their efforts to enhance the quality of education and research may not receive proper recognition from society as a whole. In the future, in order to enable diverse prospective students, including international students and working adults, to choose universities that best meet their objectives and to support their decision to pursue master's and doctoral programs, it is essential to further promote the disclosure of information on education and research by each higher education institution.
　Currently, the “University Portraits,” which are independently operated by the university community, have proven effective in disseminating diverse educational information from each institution. On the other hand, it has been pointed out that, because different platforms are used for national/public and private universities, important information related to the quality of university education and research is not always presented in a clear and easily understandable manner. While referencing the situations in other countries, it is necessary to further promote information disclosure by building a new data platform called Univ-Map (tentative). This platform will draw on the practices and insights cultivated through the University Portraits initiative and enable cross-institutional comparisons of higher education institutions, not limited to simple numerical indicators and not dependent on establishing organizations (Figure 1-1-4).

2. Optimizing the “Size” of Higher Education Overall

　Higher education administration has shifted from an era focused on “formulating higher education plans and implementing various regulations” to one centered on “presenting future visions and guiding policy,” during which university enrollment capacity have gradually increased. On the other hand, amid the rapid decline in the birthrate, it has become unavoidable to discuss collaboration, reorganization, integration, downsizing, and withdrawal among higher education institutions that transcend the frameworks of individual establishing organizations. Consequently, a review of the appropriate overall size of higher education is required.

(1) Strengthening the Functions of Higher Educational Institutions

　Currently, the number of prospective students seeking higher education is roughly in balance with the enrollment capacity of higher education institutions. However, as the number of students entering at age 18 continues to decline, an oversupply is expected, leading to a further deterioration in capacity utilization rates. As a result, each higher education institution may fail to secure the minimum number of students necessary for its operation, which could lead to a deterioration in its financial condition and make it difficult to maintain the “quality” of its education and research.
　Amidst these circumstances, while reducing the overall size to a certain extent, it is necessary to promote support for ambitious educational and management reforms through such measures as enhancing the S/T ratio (the ratio of students per faculty member); shifting enrollment capacity and resources to graduate schools; providing support to universities that are working to increase the number of international students and working adults while ensuring quality; strengthening support for the conversion of undergraduate programs to growth fields such as digital and green technologies; and promoting the professional development of faculty and staff. At the same time, it is essential to promote collaboration among higher education institutions by considering the introduction of mechanisms and support measures for closer collaboration among universities.

(2) Promoting the Optimization of the Size of Higher Education Overall

　Regarding the optimization of the overall size of higher education, it is necessary to support restructuring, integration, downsizing, and withdrawal, taking into account regional and societal needs, while also drawing on examples of measures related to restructuring implemented by other institutions.
　In this context, it is imperative that all higher education institutions firmly recognize that this issue directly concerns them and cannot be regarded as someone else’s matter, regardless of distinctions based on the type of institution, such as universities, professional and vocational universities and professional and vocational junior colleges, graduate schools and professional graduate schools, junior colleges, KOSEN, and Professional Training Colleges, or by establishing organization, whether national, public, or private.
　Furthermore, it is necessary to shift toward stricter establishment approval process, including tightening asset and management requirements at the time of screening and reducing or canceling subsidies to private schools in cases of insufficient implementation of the establishment plan.
　In addition, these efforts should be promoted through measures such as easing penalty in cases of mergers involving universities with underfilled enrollments or financial difficulties and providing support to universities engaged in restructuring and integration. It is also necessary to support downsizing by establishing mechanisms that make it easier to reinstate temporarily reduced student capacity and by strengthening guidance to encourage prompt management decisions. Furthermore, support for withdrawal from operations should include securing a good learning environment for enrolled students until graduation, establishing methods for better management of graduates’ student records, and relaxing requirements regarding the attribution of residual assets (Figure 1-1-5).

3. Securing “Access” to Higher Education

(1) Ensuring Geographical Access

　Enrollment rates and capacity for higher education institutions vary by region, and private universities in regional areas tend to experience declining student numbers and increasingly difficult financial conditions due to the rapid decline in the birthrate. At the same time, since there are prospective students who cannot leave their hometowns for various reasons, including financial ones, it is necessary to take measures to ensure access to higher education from a geographical perspective.
The Grand Design Report proposed that regional higher education institutions should go beyond their role in higher education to become the core of their local communities. The report also called for the establishment of regional collaboration platforms where these institutions, together with industry and local governments, could discuss future visions and concrete measures for cooperation and exchange, as well as for the introduction of the University Collaboration Promotion Corporation as a framework for collaboration that transcends the boundaries of national, public, and private institutions. As a result, efforts have begun in several regions, including regional collaboration platforms in which all universities in the region participate to develop educational programs and provide support for higher education advancement and employment. Other examples include efforts that enhance liberal arts education and promote diverse student exchanges through the establishment of numerous joint courses. On the other hand, it has been pointed out that the current regional collaboration platforms face challenges in fostering a strong sense of ownership and maintaining sufficient speed in addressing issues. Furthermore, some have suggested that efforts should go beyond merely establishing joint courses, and that efforts for educational collaboration utilizing University Collaboration Promotion Corporations should be further advanced.
　Therefore, it is first necessary to further develop regional collaboration platforms so that each higher education institution can leverage its strengths and unique characteristics, ensure access to higher education in the region, and foster the human resources needed locally. Through these platforms, higher education institutions will be able to share a common understanding of the circumstances, challenges, and future human resource needs surrounding higher education in their respective regions. They will also provide a venue where local governments, industry, and other regional stakeholders can come together, engage in integrated discussions, and move toward concrete initiatives. To this end, it is essential to establish a consultative body, tentatively named the “Regional Platform for Promoting Local Revitalization with Local Higher Education Institutions (tentative).” In addition, it is necessary to promote the establishment of departments within local governments that are responsible for the promotion of higher education by clarifying their roles and functions as contact points. At the same time, efforts should be made to strengthen the national government’s command and coordination function for promoting regional universities. Furthermore, in order to encourage deliberations at regional platforms, it is necessary to promote provision by national govt of quantitative and qualitative information on population forecasts by region and changes in industry and employment environments by field, as well as to advance the training and placement of coordinators. Based on the discussions held at these platforms, the government also needs to provide support for higher education institutions that are truly needed in the region and that are ensured a certain level of educational quality. This includes establishing support measures by govt based on discussions at regional platform, and providing mechanism to ensure closer collaboration among universities (Organization for Promoting Research and Education (tentative)).
　Furthermore, in order to promote regional revitalization by encouraging move from cities to regional areas, it is important to promote efforts such as domestic study programs, developing student dormitory facilities, establishing satellite campuses, and relocating campuses, as well as advancing distance and online education through measures such as sharing courses via interuniversity collaboration (Figure 1-1-6).

(2) Ensuring Socio-Economic Access

　Regarding ensuring economic accessibility, the New Financial Support System for Higher Education was launched in FY2020. Under this system, tuition and admission fees for households exempt from the inhabitants tax and those in equivalent income brackets are reduced or exempted, and grant-type scholarships have been significantly expanded. As a result, opportunities for students from low-income households to advance to higher education institutions have been greatly increased, provided they have a strong awareness of their future career paths and the motivation to pursue higher education. Furthermore, in FY2024, the government has expanded the scope of support—previously unavailable to middle-income households—to include multi-child households with three or more dependent children and students enrolled in undergraduate programs at private universities in the fields of science, engineering, and agriculture, recognizing these groups as particularly in need of financial burden reduction. The enrollment rate in higher education among households exempt from the inhabitants tax was estimated to be approximately 40% in FY2018. However, a sample survey conducted in FY2023 showed that the rate had risen to around 69%, suggesting that this system has contributed to increased enrollment opportunities. Furthermore, starting in FY2025, efforts to reduce educational expenses are advancing, including providing tuition and admission fees free of charge up to a certain amount set by the national government for students from multi-child households, without imposing income restrictions(*3).
　Going forward, it will be important to ensure the steady implementation of the new financial support system for higher education, while also enhancing financial support for individuals through measures such as promoting the wider adoption of employer-sponsored scholarship repayment programs. Furthermore, from a social perspective to ensure access, it is also necessary to promote initiatives prior to enrollment in higher education institutions, such as push-type information dissemination, promoting the elimination of unconscious bias (unconscious assumptions), and enhancing career education (Figure 1-1-7).

4. Roles and Collaboration Methods by Institution, Establishing Organization

(1) Roles by Institution

　In Japan, a diverse range of higher education institutions has been established, including universities (undergraduate programs), graduate schools, professional graduate schools, professional and vocational universities, professional and vocational junior colleges, junior colleges, colleges of technology (KOSEN), and Professional Training Colleges. Each type of institution differs in its objectives, standard length of study, degree-granting authority, and educational content, thereby providing diverse forms of higher education suited to its distinctive characteristics. Going forward, in light of the changing circumstances surrounding these institutions, it will be required for each to redefine its role and pursue continuous improvement while leveraging its unique features and strengths.

1. Universities (undergraduate programs)　
   　Universities, as the core of scholarly activities, shall cultivate a wide range of knowledge, conduct in-depth research in specialized fields, and contribute to the development of society by creating and disseminating new knowledge.
2. Professional and vocational universities, professional and vocational junior college
   　Professional and vocational universities and professional and vocational junior colleges, which provide practical vocational education in close collaboration with industry, are expected to foster professionals with practical and creative skills.
3.  Graduate schools / professional graduate school
   　Graduate schools are expected to provide teaching and researching the theory and application of scholarly activities, master their depths, or foster deep knowledge and outstanding abilities in order to take up occupations requiring high levels of expertise, and contribute to the advancement in culture. They are also expected to play a particularly important role in enhancing Japan’s “Collective Knowledge and Wisdom” going forward.
4. Junior colleges
   　Junior colleges cultivate human resources who form the foundation of local communities while strengthening collaboration with local governments and regional industries. Going forward, they are expected to undergo transformation of junior colleges themselves based on the role adapting to the changing times, and improvement of the system based on further educational needs of students completing specialized courses.
5.  Colleges of technology (KOSEN）
   　Colleges of technology (KOSEN) are higher education institutions that offer a five-year integrated program of engineering education with a strong emphasis on developing practical skills. Going forward, they are particularly expected to further promote the advancement and internationalization of their education.
6.  Professional Training Colleges
   　Professional Training Colleges play an important role in cultivating human resources essential for supporting the foundations of society while responding flexibly to the needs of society and industry. Going forward, they are expected to further promote practical vocational education and increase number of working adult students, international students. 

(2) Role by establishing organization:

　Each type of university is expected to fulfill the essential roles associated with its establishing organization. National universities, supported by substantial public funding, are required to further demonstrate the roles inherently expected of them as national institutions. Public universities, based on local public finances and operated with the support of local governments, should align with the founding objectives of their establishing organizations. Private universities are expected to fulfill their roles by striking an appropriate balance between autonomy and public responsibility in accordance with their founding principles. In this way, all institutions are expected to fulfill their respective roles while leveraging their unique characteristics.
　Going forward, significant changes are expected in the overall environment surrounding higher education institutions, including the rapid decline in the birthrate. Under these circumstances, each university is required to reexamine its mission, taking into account the roles and functions specific to its establishing organization, renew itself in line with the changing times, and chart its own future direction.

1.  National Universities
   　National universities play a role in ensuring educational opportunities to develop human resources who will lead society both locally and nationwide, and in implementing a wide variety of research that should be continuously conducted by the nation. Furthermore, as the social environment continues to change, they are expected to strengthen their functions in line with their respective missions. However, given the projected significant decline in the 18-year-old population, it will be inevitable to review the enrollment capacity for undergraduate programs. From the perspective of enhancing Japan’s “Collective Knowledge and Wisdom,” it is necessary to take into account the actual circumstances of each university, including strengthening and enhancing graduate schools by emphasizing enrollment capacity and resources on master's and doctoral programs, expanding the acceptance of international students and working adults to ensure diversity, and focusing resources on new interdisciplinary fields. Furthermore, considering the role national universities play in ensuring access to higher education in regional areas, it is also necessary to review the appropriate level of enrollment capacity.
2. Public Universities
   　Public universities are expected to conduct education and research in line with the scope and situation of local governments and the purpose of their establishment. Furthermore, upon establishing mechanisms to ensure accessibility from a geographical perspective, public universities are expected to leverage their distinctive strengths－such as, providing education tailored to the direct needs of local governments and their accumulated insights gained through constant engagement with local governments. They are also expected to play an active role in fostering collaboration among industry, academia, and government within the region. Reviews should be made regarding the enrollment capacity of public universities, taking into account regional realities such as the situations surrounding higher education institutions. Furthermore, as mentioned earlier, regarding the conversion of private universities to public status, it is necessary to continue avoiding hasty establishment. 　Careful consideration is required, including thorough examination of regional human resource needs and future operational prospects.
3. Private Universities
   　Private universities are expected to continue implementing diverse educational and research activities in accordance with their founding principles and contemporary missions derived from them, while striking an appropriate balance between autonomy and public responsibility. Also, in ensuring access to higher education, private universities are expected to play an active role by leveraging their founding principles and the unique functions that only they can fulfill, through proactive collaboration with other universities and institutions. On the other hand, similar to national and public universities, private universities inevitably face the need to review their enrollment capacity in view of the continuing rapid decline in the birthrate. 　Therefore, it is essential for the government to promote support for universities that are pursuing ambitious educational and managerial reforms and working to optimize their size.

(3) Emphasis on Measures Focusing on Functions, Characteristics:

　The approaches to human resource development at universities differ depending on the knowledge and abilities of the students as well as the future vision of human resource development they aim to achieve. It is essential for each university to make the most of its educational resources and further build on its strengths. To maximize the educational and research functions of each university, it is required for universities to focus on their respective functions—such as those emphasizing comprehensive liberal arts education, those training specialized professionals or providing education in specific specialized fields, and those placing greater emphasis on research—while optimizing enrollment capacity and resources at both the undergraduate and graduate levels to carry out education and research aligned with their missions.
　Furthermore, as higher education institutions as a whole move toward greater functional differentiation, it will become increasingly important for institutions to collaborate across regional and establishing organization frameworks, in ways aligned with their respective functions, in order to further strengthen their distinctive capabilities and characteristics. Therefore, the government is required to provide support tailored to the functions and characteristics of each institution, regardless of the type of establishing organization.

5. Support Measures for Higher Education Reform

(1) Basic Concept

1. Value of Higher Education:
   　In considering support for higher education reform, it is necessary to reexamine whether society truly recognizes the value of higher education. Higher education should not be valued solely by individual students, prospective students, or their parents, but must fundamentally serve society as a whole, contributing to its development. As has been repeatedly pointed out in successive reports, higher education serves as a wellspring of national strength. It is responsible for cultivating a diverse and robust pool of human resources—including individuals who support the foundations of society and everyday life, drive regional growth and development, and play active roles in cutting-edge and globally competitive fields—as well as for generating knowledge and innovation through academic research. Therefore, investment in higher education should be regarded as a forward-looking investment in the future.
2.  Trusting Higher Education:
   　For higher education institutions to earn the trust of society, it is important that their graduates not only recognize the value of education, including their own personal growth, and contribute actively to society, but also strengthen collaboration with industry, etc. through personnel exchanges, joint research, and other partnerships, thereby fostering public understanding of the educational, research, and regional contributions of their alma maters.　From this perspective, higher education institutions are expected to increase student satisfaction, advance educational and research activities to spur growth, while engaging in activities that leverage their respective strengths and roles.
   They should also continue to publicize information on results and effects of education and research to society. Furthermore, each institution is expected to secure the necessary financial resources, based on appropriate internal resource allocation and efficiency improvements, in order to strengthen its functions and roles and further enhance the quality of its education and research.
3. Estimating Necessary Costs:
   　To pursue high-quality education and research, it is essential to create an environment that attracts outstanding faculty, staff, and students.
   Equally important is to establish a stable financial foundation capable of covering the associated costs.　In this context, when the value of higher education is trusted by society, it can draw increased investment and resources from both the public and private sectors. Moreover, unless the overall picture of costs associated with higher education is shared socially, it will be difficult to discuss the minimum amount of resources that should be invested. Therefore, each higher education institution is required to thoroughly disclose information, including the outcomes and effectiveness of its educational and research activities. In addition, the national government needs to clarify the necessary costs of education, which are not yet fully visible, while taking into account the distinct characteristics of education and research, the contemporary environment surrounding higher education institutions, and the implementation of higher-quality education and research. Based on this clarification, it is essential to estimate the total costs required for higher education institutions as a whole and to communicate their necessity broadly to society.
4. Investment in Higher Education:
   　Through the cultivation of a diverse and robust pool of human resources, including individuals who support the foundations of society and everyday life, drive regional growth and development, and play active roles in cutting-edge and globally competitive fields, higher education provides benefits to both individuals and society, while playing an extremely important role in generating new knowledge and innovation. It is essential to promote bold investment in higher education as a forward-looking investment for the future and to further strengthen it to support Japan’s growth.
   　In doing so, it is important not to depend solely on any single source, whether public financial support, investment and support from society, or the financial burden borne by individuals and parents, but rather to ensure that each operates at an appropriate scale and through effective mechanisms that contribute to the sustainable development of higher education.

(2) Future Measures to be Taken

1. Short-Term Initiatives
   　Based on the above basic principles, it is necessary to enhance measures from the perspectives of public financial support, investment and support from society, and the financial burden borne by individuals and parents, and to establish mechanisms that contribute to the sustainable development of higher education as initiatives to be implemented within approximately two to three years following the submission of this report. In this context, with regard to the enhancement of public financial support, it is essential to secure sufficient funding for basic expenses—such as the government subsidies for national university corporations and subsidies for private universities—and to continuously review and enhance programs involving competitive resource allocation. As for strengthening support from society, efforts should be made to promote employer-sponsored scholarship repayment programs and to encourage donations. Furthermore, in reviewing the financial burden borne by individuals and parents, it is necessary to consider an appropriate level of such burden, taking into account recent changes in prices and labor costs, as well as expenses related to educational activities, while ensuring a proper balance with individual support and institutional subsidies.
2. Long-Term Initiatives
   　With regard to long-term national initiatives, it is necessary to examine matters such as the clarification of educational costs and the review of the burden-sharing system, in order to secure the size and mechanisms that will support the sustainable development of higher education. Based on these considerations, reforms to the financial structure of higher education should be advanced within approximately five to ten years following the submission of this report. In the future, it is desirable to consider approaches for shifting resource allocation from an establishing organization-based system to a function-based system, taking into account new evaluation systems, etc. Through such efforts, society as a whole must advance bold investments in higher education to support Japan’s growth.
   　Therefore, it is necessary to clarify educational costs and review the burden-sharing mechanisms by setting minimum thresholds for tuition fees, etc. and revising public support systems, while also securing new funding sources to promote bold investment in higher education through measures including a review of the tax system and efforts to increase donations (Figure 1-1-8).