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  The Second Science and Technology Basic Plan positions the establishment of regional"intellectual clusters"in local areas as a project of importance to the nation.

  The"intellectual cluster"is a regional system of technological innovations in which a public re-search organization uses its R&D potential and other unique abilities to lead companies in and around a particular region.

  More specifically,by utilizing a human resource network and systematic collaborative researches,the system fosters interaction between the original technological seeds of the public research organization and the business needs of regional companies to create a chain of technological innovations and new industries.

  In April2002,the Ministry of Education,Culture,Sports,Science and Technology selected12regions(10clusters);the projects got underway in July2002.Three more regions were selected in February2003.

  The characteristic points of this program are as follows:

*The headquarters of the"CLUSTER"is constructed.

*Industry,academia,and government promote cooperative researches in universities or other public institutions.

*This program has science and technology coordinators,who explore new technology seeds,and other experts such as patent attorney.

(Figure3-3-18).

  In addition,19regions were designated under the Cooperation for Innovative Technology and Advanced Research in Evolutional Area(CITY AREA).The development of a foundation for coordination between industry,academia,and government,which is centered on universities,etc.in the relevant area,is aimed at by focusing attention on local areas,attaching importance to the independence of local governments and the exertion of local individuality,and specializing in a particular area.

  An"industrial cluster"is a system that takes the technological innovation of universities and other public research institutions,and of business enterprises in the surrounding area,and encourages wider area cooperation between the universities,etc.,and the business enterprises,and between different enterprises,to create a chain reaction of innovation and creation of new businesses and industries.

  The Ministry of Economy,Trade,and Industry's"Industrial Cluster Program"involves the utilization of economy and industry bureaus at local governments as nodes for the formation of wide-area personal networks of industry,academia,and government,including local enterprises and universities,etc.,aiming for participation in world markets,and that uses comprehensive and effective investment in the Ministry's regional facilities to support local economies and form industrial clusters that can foster new business enterprises capable of competing in worldwide markets.Specifically,the Ministry currently has nine such projects around Japan,operating with the cooperation of local public authorities,each forming wide-area personal networks of industry,academia,and government that include3,800small and medium-size companies with ambitions to enter world markets,and about200universities.These programs operate in three main areas,to promote improvements in the quality and volume of information flowing between industry,academia,and government,to supplement business management resources with information about technology,business management,and marketing channels,and to support technology development that bring out local characteristics,and develop entrepreneurial fostering facilities(business incubators)and business environments Support for technology development in local areas that leads to practical applications and development of business incubators will be effective in promoting structural reform of industry and revitalizing the economy,by boosting industrial vitality and creating new business enterprises that will lead to the long-term creation of industry and employment.Outlays of35.3billion yen from the FY2002 initial budget and9.1billion yen from the FY2002 supplemental budget have strengthened measures related to the"Industry Cluster Program,"centering on support for technology development in local areas that lead to practical applications.So far,a promotion organization was developed for each project,networks formed among industry,academia,and government,and efforts moved forward to develop technologies that lead to practical applications.The Ministry plans to continue its comprehensive and effective investment in these kinds of support policies to work toward regeneration of local economies. (Table3-3-19)

Figure3-3-18Map of intellectual clusters

Figure3-3-19Project to Implement the Industry Cluster Program

Table3-3-20 Major regional science and technology promotion measures

  The Ministry of Education,Culture,Sports,Science and Technology is working to create new technology seeds by promoting joint research among industry,academia,and government in fields of creative basic research,focusing on universities and public research institutions in regional areas.The Ministry of Economy,Trade and Industry is working to open up new fields for projects and creating new businesses and new products by promoting collaboration projects among industry,academia,and government,such as technology development that leads to practical applications,focusing on business enterprises.

  Both ministries work together to promote the development of systems of collaboration among industry,academia,and government in regional areas,and both aim to revitalize regional economies and stimulate Japan's national economy by working in close coordination to supply feedback on market needs and provide new technology seeds through their programs,which are adjusted to be in close coordination.Specifically,the Ministry of Education,Culture,Sports,Science and Technology,the Ministry of Economy,Trade and Industry,local public authorities,and other relevant institutions established the"Conference for Promotion of Regional Cluster".Both ministries recommend central project organization in both cluster programs cooperate each other,and hold the joint symposium in each region to show outstanding results from both clusters.