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Regarding the Japanese R&D level, a survey report is available, which is entitled "The Survey on Japan's R&D Level (March 2000)" . The Science and Technology Agency conducted the survey to analyze those areas that are both relatively close to industry and expected to have effects on society ( Fig. 7 ).

Fig. 7 Comparison of Japan's R&D Level with Euro-American Countries

Japan has very high potential in the fields of materials and energy, and especially in the areas of base materials, and the technologies for energy saving and environmental control. However, Japan needs to make efforts for substantial upgrading of the level in the field of life science and information technology other than information appliances.

While we should maintain and expand the field in which Japan has a high level, it is a national issue that the fields of weakness should be reinforced under the prioritized policy.

According to "the Survey on Research Activities of Private Sectors" (Fiscal 2000) of Ministry of Education, Culture, Sports, Science and Technology, many private sectors have a feeling about the U.S. and Europe that "the other parties are superior." The largest gap exists in the fields of the most promising growth such as life science and information-related industries in particular ( Fig. 8 ).

Fig. 8 International Comparison of Technological Capability

In each field, Japanese Private sectors feel that other Asian countries are catching up with Japan.

In the field where we are positioned in a high level, we should capitalize on our potential to produce creativity. We should also seek to secure our international level in such field that other selected countries are running ahead of us by prioritizing their approaches. That will enable us to make international contribution.

The Second-term Science and Technology Basic Plan has determined on the following four key fields: life science, information technology, environment, and material/nano-technology. In light of many countries rivaling each other in these fields, we should also step up our potential in and capitalize on these fields. Repercussive effects to other fields are also expected. Above all, these are the fields that are indispensable for us to meet social demands and tackle issues of global scale. To meet that end, we must make the appropriate allocation of resources in accordance with this Plan.