3.3 Reform of Japan’s Science and Technology System 

3.3.1 Reform of Japan’s Research and Development System

3.3.1.1 Construction of Research and Development Systems for Producing Outstanding Results

（1） Maintenance of a Competitive Research and Development Environment

 In terms of competitive funding to form a competitive research and development environment, the system reform to maximize its effectiveness was promoted, while the funding was expanded based on the goals set in the Basic Plan.

 The competitive funding for each ministry is shown in Table 3-3-1.

Table 3-3-1 Comprehensive table of competitive funding

 Based on the “Reform of the Competitive Funding System （opinion）” prepared by the Council for Science and Technology Policy in April 2003, progress was made on the following reforms during FY2005: further expansion of indirect expenses; posting of program officers with research backgrounds to each funding agency to improve the implementation structure for managing the array of businesses of the competitive funding system consistently, etc.

● Competitive funding of each office and ministry

1）Cabinet Office

 In order to smoothly implement assessment of the effect of food on health （risk assessment） concerning various hazards to food such as food additives, chemical substances, microorganisms and viruses, and prions on the basis of scientific knowledge, the Cabinet Office is implementing “Research on Technology for Assessing the Risk of Food on Human Health,” aimed at promoting the development of research on guidelines for risk assessment and standards for the safety assessment.

2）Ministry of Internal Affairs and Communications

 The Ministry of Internal Affairs and Communications is implementing the “Strategic Information and Communications R＆D Promotion Programme.” This project aims to actively promote unique and innovative research and development that is in keeping with priority strategic targets in order to create world-leading intellectual assets, increase the level of researchers by creating competitive research environments, and improve research and development capabilities in information and communications technologies.

 In addition, the ministry is implementing the “Promotion Program for Fire and Disaster Prevention Technologies,” which aims to promote practical and significant technological development and research in its efforts to solve issues related to fire and disaster prevention in Japan, including the upgrading of rescue tools and equipment, and the development of methods for rapidly and efficiently searching for survivors under debris.

3）Ministry of Education, Culture, Sports, Science and Technology

 The Grants-in-Aid for Scientific Research aims to dramatically advance academic research （research based on the free-thinking of researchers） across all fields including the humanities and social sciences as well as the natural sciences, and from basic research through to applied researcw.The program supports creative and pioneering research that passes a peer review（Notes 27） process.

 Basic Research Programs aims to produce new technologies that will lead to the development of science and technology and to the creation of new industriew.Japan Science and Technology Agency establishes Research Areas based on Strategic Sectors, which Ministry of Education, Culture, Sports, Science and Technology designates on the basis of social and economic needs and under each Research Areas Basic Research Programs strategically promotes basic research mainly in four key research fields.

 The Special Coordination Funds for Promoting Science and Technology （Chosei-Hi） is a competitive research fund managed by the Ministry of Education, Culture, Sports, Science and Technology along with the policies of the Council for Science and Technology Policy. Chosei-Hi promotes leading and/or cross-sectional measures to achieve the policy objectives laid down in the Science and Technology Basic Plan. Since FY2005, “Research and Development Program for Resolving Critical Issues”, which is mission-oriented research and development focusing on policy-inducing effects, have been promoted.

 The 21st Century COE Program is focusing on providing support for the establishment of world-class COE through national, public and private universities, and thus promoting the creation of internationally competitive and world’s highest-level universities.

 The Key Technology R＆D Program has been promoting R＆D to be strategically handled in the areas of life science, information and telecommunications, nanotechnology and materials, in order to seek further development of key technologies as the basis of maintaining and developing Japan, including the development of socioeconomy and ensuring safety and security.

 The Earth Observation System Construction Plan has been promoting technological development and observation research in areas of study where Japan should take a leading role toward the construction of the Earth observation system declared in the Earth Observation Summit.

 The Nuclear Power System R＆D Project has been conducting R＆D that will contribute to the realization of an innovative nuclear power system which enables the following, concerning the next generation of nuclear fuel cycles: to make security systems clearer and easier to understand, make the most of fuels through high-efficient utilization, and substantially reduce the discharge of radioactive wastes.

 The Project for Advanced Metrological Analysis Technology and Equipment Development has been promoting the development of advanced metrological analysis technology and equipment, and related systems that will contribute to creative and original R＆D to meet the needs of the world’s most advanced research.

 The Public Proposal System for Original and Innovative Technology Development Research and its successor, the Innovative Technology Development Research Project have been encouraging the creation of new industries by further fostering innovative and highly creative technologies of private sectors into more innovative and practical technologies.

 In order to facilitate the practical use of the fruits of original research （seeds） at universities and public research institutes, the Project for Original Seeds Expansion has been conducting technological development appropriate for a challenged technology phase, and promoting the return of such fruits to society.

 The Project for R＆D Promotion in Key Regions has been conducting activities for coordination, technological development and support for new ventures that will contribute to the creation of local new industries, and promoting technological transfer at Research Fruit Utilization Plaza and JST satellites.

 The Project for Collective Area Joint Research concentrates on joint research among industry, academia and government aimed to handle individual R＆D issues in fields where needs for commercialization is high for the area.

Notes 27：
 Peer review：review by researchers in some fields similar to the specialized fields

4）Ministry of Health, Labour and Welfare

 The Ministry of Health, Labour and Welfare strives to improve technology standards through the scientific promotion of government measures related to health and medical care, welfare, environmental health, occupational safety and health, and other aspects relevant to the citizens of Japan.

 The Grant for Health Sciences promotes research in four main areas, including （1） the administrative policy research area; （2） the life science infrastructure research areas, which includes “Research on Human Genome Tissue Engineering;” （3） the areas of research on disease/handicap measures, such as the “Third Comprehensive Cancer Strategy” and “Comprehensive Research on Measures for Lifestyle-related Diseases including Cardiovascular Diseases,” and （4） comprehensive research on safety management in the drug, food and technology area, which includes “Research on AIDS, Hepatitis and Emerging and Re-emerging Infectious Diseases.”

5） Ministry of Agriculture, Forestry and Fisheries

 The Ministry of Agriculture, Forestry and Fisheries is implementing programs including the “Research Project for Utilizing Advanced Technologies in Agriculture, Forestry and Fisheries,” which aims to promote in-the-field experiments and research in the agriculture, forestry, and fisheries sector, and the “Technology Development Project for the Creation of Collective Private Agribusiness,” which aims to revitalize agribusiness through the creation of new industries, and the “Project to Support Revitalization of Regional Food Industry, etc.,” which aims to solve various issues surrounding the food industry, etc., through short-term R＆D. In addition, the National Agriculture and Bio-oriented Research Organization is implementing the “Project for the promotion of Basic Research for the Creation of New Technology and New Sectors,” which facilitates sophisticated use of biofunctions, and the “Project for the Promotion of Research on the Integration of Different Fields for the Creation of Bio-oriented Industries,” which aims to create new industries and enterprises through biotechnology and other bio-oriented advanced technologies.

6） Ministry of Economy, Trade and Industry

 The Ministry of Economy, Trade and Industry is implementing the “R＆D for Regional Rebirth Consortium,” which aims to conduct advanced R＆D with emphasis on practical application of the technologies of universities, etc., by organizing a solid system for government-industry-academia joint research in the area （Regional Rebirth Consortium）, and “Innovative Technology Development of Practical Nuclear Energy Program,” which aims to improve safety and economic efficiency concerning nuclear power generation and nuclear fuel cycles by inviting innovative and original R＆D subjects and supporting the development.

 Programs implemented by the New Energy and Industrial Technology Development Organization （NEDO） include the “Industrial Technology Research Grant Program,” which aims to support the research of young researchers at universities, etc., who make distinguished proposals on technological topics that have large expectations from industries, and “R＆D for the Creation and Practical Use of University-based Program,” which aims to support distinguished R＆D jointly conducted by private companies and universities in order for the companies to put academic research results to practical use. In addition, the Japan Oil, Gas and Metals National Corporation is implementing the “Development and Promotion of Utilization of Oil and Gas Program,” which aims to promote R＆D by inviting original and innovative technological topics concerning oil and gas exploration development.

7） Ministry of Land, Infrastructure and Transport

 Through the Japan Railway Construction, Transport and Technology Agency, the Ministry of Land, Infrastructure and Transport implements the “Program for Promoting Fundamental Transport Technology Research.” This program promotes creative and innovative basic research aimed at generating innovative new technologies with the potential for breakthrough technological innovation. In addition, the Construction Technology Research and Development Subsidy Program provides research and development subsidies to researchers at universities, etc., in order to promote cooperation with non-construction sectors, to promote innovations in construction technology in broad interdisciplinary areas, and to utilize innovative results in public works projects.

8）Ministry of the Environment

 The Ministry of the Environment utilizes the Global Environment Research Fund to promote research into global environmental conservation, based on the Comprehensive Promotion Program for Global Environment Research, Monitoring and Technology that is drawn up at the Council of Ministers for Global Environmental Conservation. The Global Environment Research Fund provides prioritized and strategic promotion for the development and diffusion of environmental technologies, while the Fund for Waste Disposal Science Research is used to promote restrictions on waste disposal and to encourage recovery and reuse, and develops research on all kinds of research into appropriate waste disposal measures. In FY2004, the “Project to Develop Technology for Global Warming Countermeasures” was established for the purpose of promoting practical use of basic CO2 emission control technologies.

（2） Improving the Mobility of Personnel through Popularization of the Fixed-term System

 In order to train researchers with broad perspectives who are rich in creativity and originality, and to achieve competitive and dynamic R＆D environments, it’s important that the mobility of researchers is improved and that researchers gain experience at many kinds of research sites.

 Aiming towards this kind of improved mobility of researchers, employment of fixed-term researchers became possible at national experimental research institutions in accordance with “the Law Concerning the Special Measures for the Recruitment, Remuneration and Working Hours of Researchers with Fixed Terms in Regular Service” enacted in 1997. The results to date are shown in Table 3-3-2.

Table 3-3-2 The state of employment under the “Law Concerning the Special Measures for the Recruitment, Remuneration and Working Hours of Researchers with Fixed Terms in Regular Service”

Note：
 The number of personnel used indicates the cumulative number as of October 1, 2005.

Source：
 Survey by National Personnel Authority （October 2005）

 For universities and inter-university research institutes, “the Law Concerning the Fixed-Term Appointment of Faculty Members at Universities,” enacted in 1997, gives them the discretion to adopt the fixed-term system. The status of the fixed term system adopted on the basis of this law is shown in Table 3-3-3.

Table 3-3-3 State of the fixed-term systems introduced under “the Law concerning the Fixed Term Appointment of Faculty members at Universities”

Note：
 In Private universities, it is limited to full-time staff.

Source：
 Survey by MEXT （October 2005）

（3） Increasing the Independence of Young Researchers

 If Japan is to aim towards becoming an advanced science- and technology- oriented nation, it is critical to foster and secure exceptional young researchers with abundant creativity who will lead future research activities.

 In consideration of the Basic Plan, which calls for “ensuring the independence of young researchers in order to maximize the abilities demonstrated by distinguished young researchers,” the Central Education Council reviewed the teachers’ structure at universities, and proposed review of the status of assistant professors and assistants in the report, “The Future Form of Japan’s Higher Education,” compiled in January 2005.

 Following the proposals, “the School Education Law” was revised in July 2005, and it was decided to conduct the improvement of the teachers’ structure at universities （such as the creation of “jun-kyoju” or associate professor and “jo-kyo” or assistant professor） from April 2007. The new post of “Jo-kyo” is clearly defined as the first-stage post of a university teacher which enables young researchers to conduct their own education and research. The system revision is expected to contribute to the further development of an environment in which young researchers seeking to become a university teacher are able to improve their qualities and abilities while conducting education and research activities based on their flexible thinking.

● Support for creative research activities by young researchers

 Many of the researchers around the world who produce world-class research results have already conducted research in their 30s that laid the groundwork for later achievements. The relevant government ministries, therefore, promote various efforts to support creative research activities by young researchers during their foundation years.

1）Ministry of Internal Affairs and Commnications

 Under the “Program for Promoting Strategic Information and Communications Research and Development,” established in FY2002, the “research and development program for nurturing young advanced-IT researchers” was instituted with the aim of nurturing young researchers aged 35 or younger.

2）Ministry of Education, Culture, Sports, Science and Technology

 MEXT is working to expand competitive funding for young researchers by appropriating approximately 26.7 billion yen of the Grants-in-Aid for Scientific Research for young researchers in order to create a system in which young researchers who have flexible mind-sets and a spirit of challenge can conduct independent research.

3）Ministry of Agriculture, Forestry and Fisheries

 The National Agriculture and Bio-oriented Research Organization （NARO） is working through the Basic Research Promotion Project, which aims at the creation of new technologies and new sectors, to institute a young researcher support program that prepares the conditions for objective research by young researchers with flexible thinking and ambition.

4）Ministry of Economy, Trade and Industry

 NEDO is implementing creative research activities by young researchers through the “Industrial Technology Research Grant Program” established in FY2000.

5）Ministry of the Environment

  The Ministry is supporting research by young researchers to help improve their research by setting up a special reserve to the ministry’s competitive funding.

● Support for postdoctoral researchers

  The relevant government ministries can expand opportunities to improve the quality of postdoctoral researchers by having them participate in research projects funded with the expanded competitive funding, as well as promote various other systems to support postdoctoral researchers.

1） Ministry of Education, Culture, Sports,Science and Technology

 Through the Japan Society for the Promotion of Science, MEXT has been promoting the “Research Fellowships for Young Scientists” program that supports postdoctoral researchers who possess superior research abilities so that they can proactively engage in their research. Since FY2005, this program strives to achieve qualitative results by improving the system for selecting postdoctoral researchers and research reports.

 Under Basic Research Program of Japan Science and Technology Agency young researchers, including postdoctoral researchers having flexible ideas and challenging spirits, researches to form intellectual properties and create new technologies.

 Various other support programs for researchers are also being promoted, such as the Institute of Physical and Chemical Research’s （RIKEN） “Special Postdoctoral Researchers Program,” which provides a place where highly creative young researchers can proactively conduct research upon their own initiative at RIKEN’s research facilities.

2） Ministry of Health, Labour and Welfare

 The Ministry of Health, Labour and Welfare has adopted measures to support and utilize over 500 postdoctoral researchers through its Health and Welfare Sciences Research Promotion Project.

3） Ministry of Agriculture, Forestry and Fisheries

 The Ministry of Agriculture, Forestry and Fisheries has adopted measures to utilize 147 young researchers as part of the Basic Research Promotion Project of the National Agriculture and Bio-oriented Research Organization （NARO）, which aims to create new technologies and research fields. In total, the Ministry adopted measures to utilize 263 postdoctoral researchers.

4） Ministry of Economy, Trade and Industry

 The Ministry of Economy, Trade and Industry provided support and adopted measures to utilize a total of 57 postdoctoral researchers in FY 2005 through the industrial technology fellowship program run by the New Energy and Industrial Technology Development Organization （NEDO）.

（4） Reform of Japan’s Evaluation Systems

 To promote science and technology, it is important to conduct appropriate evaluation, which stimulate researchers and encourage outstanding research and development activities. Effective evaluation will increase the efficiency and vitality of R＆D activities, facilitate better R＆D achievements, and nourish superior researchers. Evaluation also offer benefits to society and the economy, and also serve to provide accountability to the public.

 The “National Guidelines on the Method of Evaluation for Government R＆D” was revised, and a new set of guidelines were decided by the Prime Minister on March 29, 2005 in response to the follow-up studies conducted by the Council for Science and Technology Policy. The studies found that the progress of R＆D evaluation system reform is partly insufficient and new issues emerged in implementing the evaluation.

 Under the revised national guidelines, all ministries and agencies draw up detailed guidelines specifying evaluation methodologies. The Ministry of Education, Culture, Sports, Science and Technology, which accounts for more than 60％ of the expenditures related to science and technology, revised the “Guideline for Evaluation of Research and Development in MEXT” in September 2005, and included in it all possible details in accordance with the following three orientations: （1） stimulate researchers who venture into creativity, and conduct evaluation that will help find, expand and nourish superior R＆D, （2） Secure evaluation resource and strengthen evaluation support systems, （3） Reform for effective and efficient evaluation systems. In one example under the guideline, MEXT is conducting ante evaluations of new and existing R＆D topics worth more than 1 billion yen by utilizing external evaluation, and using them as the criteria for judging the appropriateness of budget requests. Both appropriate interim and ex post evaluation are also being conducted.

 In addition, the Cabinet Office, in cooperation with related ministries and agencies, registered in a single, cross-ministerial R＆D database system, data on researchers, funds, accomplishments, and evaluation results for government-funded individual R＆D topics. The database is being used by the Cabinet Office and related ministries and agencies.

 For other actions in this area, evaluation of the performance of incorporated administrative R＆D agencies are now being implemented based on the Law on the General Rules of Incorporated Administrative Agencies （1999 Law No.103）. As for national university corporations, evaluation of their performance is implemented based on the “National University Corporation Law” （Law No. 111 of 2003） （As for the progress of educational research, the outcomes of evaluation conducted by the National Institution for Academic Degrees and University Education are highly respected）. In addition, under the Law for Evaluations of Policies Performed by Administrative Institutions （2001 Law No.86）, which took effect in April 2002, it is now mandatory to conduct ante evaluation for R＆D topics that are expected to incur large costs.

（5） Flexible, Effective, and Efficient Program Management

 Flexible, effective, and efficient program operations and the efficient use of funding are necessary in accordance with the characteristics of research and development. For this reason, at the national experimental research institutions, efforts are being made to fully utilize organizational structures that allow mobile and flexible changes based on internal measures. These changes are aimed at responding to progress and changes in research and development, including the priority allocation of funding at the discretion of institute directors, etc., in response to research performance, and the placement of researchers and the establishment of research periods in line with research topics.

 The Ministry of Education, Culture, Sports, Science, and Technology uses the Special Coordination Funds for Promoting Science and Technology （Chosei-hi） to position “Urgent Research and Development” as a program to ensure a timely response to situations requiring urgent measures to be taken during the fiscal year.

 With regards to research presentations at study meetings, Section 30 of the Japanese Patent Law stipulates that “the fact that the person having the right to obtain a patent” “has made a presentation in writing at a study meeting held by a scientific body designated by the Commissioner of the Patent Office” shall be deemed as an exception to lack of novelty of invention. The Japan Patent Office （JPO） has been making this provision applicable to research activities at universities.

（6） Utilizing Personnel and Developing Diversified Career Paths

 To invigorate research activities, universities and research institutions are expected to make active efforts to ensure the involvement of diversified personnel.

 In the “Critical Measures of the Third-stage Science and Technology Basic Plan” released in April 2005, the Council for Science and Technology’s Special Committee on Science and Technology Basic Plan pointed out the importance of expanding career paths of foreign researchers, promoting the invitation of foreign researchers to Japan, and developing an environment for receiving them. In FY2005, the Japan Society for the Promotion of Science worked to enhance its researcher exchange programs, including its Postdoctoral Fellowships for Research Abroad and Postdoctoral Fellowships for Foreign Researchers. In order to promote active roles of female researchers, the report suggested the expansion of measures aimed to support their childbirth and child-rearing. Also, to support female researchers who interrupt their research for maternity leave, the Grant-in-Aid for Scientific Research has been employed flexibly so that they can resume research after one-year’s maternity leave. In a like manner, the “Research Fellowships for Young Scientists” program conducted by the Japan Society for the Promotion of Science has been permitting interruptions and extensions of fellowships at the request of young researchers for the purpose of childbirth and child-rearing. The program has been improved by allowing such researchers to choose partial scholarship payment during interruptions.

 In the “Career Paths of Diversified Young Researchers （Sorting out of Study）” released in July 2005, the Council for Science and Technology’s Committee on Human Resources pointed out the importance of systematic efforts by every research institute to secure opportunities for young postdoctoral researchers to work not only at universities and public research institutes but at various fields in society including the industry arena, and to provide support for pursuing another job other than a career in research, in cooperation with industry and academic societies.

 As part of developing various career paths, the Japan Society for the Promotion of Science and the JST have established the program manager position for people with research experience who will be responsible for a consistent operation for the competitive funding system.

（7） Achieving a Creative Research and Development System

 To create excellent research results and to realize a research and development system capable of pioneering a new era, the heads of research institutions need to use superior concepts and leadership to promote organizational reform, and to create Centers of Excellence （COEs） for personnel training and R＆D with international appeal.

 In terms of the Special Coordination Funds for Promoting Science and Technology （Chosei-hi）, the “Strategic Fostering Research Centers of Excellence” program has been in operation since FY2001. The program fosters and supports R＆D institutions that make creative and pioneering attempts to build novel R＆D systems and reform organizational operations, whose highly successful efforts influence other R＆D institutions.

 As table 3-3-4 shows, three institutions were newly selected as institutions to implement the program in FY2005, bringing to 13 institutions engaged in advanced organizational reform.

Table 3-3-4 Strategic Fostering Research Centers of Excellence （Implementing institutions）

3.3.1.2 Promotion and Reform of R＆D at Japan’s Main Research Institutes

（1） Universities and Inter-University Research Institutes

 As one of their directives, Japan’s universities and inter-university research institutes are entrusted with the task of securing the academic foundation and improving the academic standards of Japan, with a focus on academic research. The essence of university-level academic research is to give rise to new and richly creative knowledge based on liberal and open ideas, and the independent research activity of researchers. Furthermore, university-level academic research shall be characterized by the goal of advancement in study carried out over a broad range of fields in the areas of humanities, social sciences, and natural sciences, shall possess a respect for the independent nature of researchers as being essential to such progress, and shall function for the integrated promotion of research and education.

 Based on reports and suggestions forwarded by the Science Council, the Ministry of Education, Culture, Sports, Science and Technology strives to provide for Japan’s foundation for academic research in a planned and prioritized manner, and to proactively implement a comprehensive policy for the nation by increasing research funding, improving research facilities and equipment at universities and inter-university research institutes, nurturing and recruiting exceptional researchers, prioritizing the promotion of basic research, forming COEs, improving the evaluation of research, and developing and expanding upon the science information infrastructure, in order to develop an academic research system that is open to the world, and which is capable of flexibly responding to advancements in scientific research.

 Expanding the independence of management in the areas of budget, organization and personnel affairs, national universities and inter-university research institutes were incorporated under the National University Corporation Law （Law No. 112 of 2003） in April 2004 so that they could develop themselves as appealing ones with distinctive identities that actively address education, research, and contributions to society, and establish management structures that are open to public scrutiny.

 Furthermore, a national project primarily led by the Cabinet Office has been undertaken to establish a graduate university of science and technology, which has the best-in-the-world quality, in Onna, Village of Okinawa. The basic concepts of the future university will be “internationality” and “flexibility,” and the aim of this project is to contribute to Japan’s and the world’s scientific and technological advances, and to develop Okinawa into a center of intelligence in the Asia-Pacific region. In September 2005, the Okinawa Institute of Science and Technology Promotion Corporation was established to prepare for the establishment of the graduate university.

● Academic research at universities and inter-university research institutes

 Academic research in Japan is conducted at undergraduate departments, graduate course, research laboratories and research facilities at universities, as well as joint-use inter-university research institutes, without being tied to a specific university.

 Research laboratories devoted to research in designated specialized fields have also been established at universities. These research laboratories carry out specialized research in collaboration with education and research carried out at university departments and graduate schools. At the end of FY2005, a total of 59 research laboratories had been established at the national universities, including 20 research institutions for joint use for the nation’s universities. Research projects such as neutrino research conducted by the Institute for Cosmic Ray Research （ICRR） of the University of Tokyo have produced research results of the highest international standards.

 Sixteen existing institutes were reorganized into four organizations （National Institutes for the Humanities, National Institutes of Natural Sciences, High Energy Accelerator Research Organization, and Research Organization of Information and Systems） with corporatization of National Universities in FY 2004, but the inter-university research institutes continue making significant contributions to research advancements in a variety of fields by acting as centers for promoting joint research between researchers employed throughout the nation’s universities, and by providing a place for the joint use of facilities, equipment, and materials that are unique or large in scale. Projects such as the B-Factory project of the High Energy Accelerator Research Organization （KEK） and SUBARU, an optical-infrared telescope, a project of the National Astronomical Observatory of Japan （NAOJ） also promote cutting-edge international research. In addition, each organization is making efforts to create new sectors beyond the framework of existing organizations and sectors by establishing collaborative organizations and facilitating exchanges of researchers in different sectors.

 Starting in April 2004, budgets for national universities and inter-university research institutes are allotted as subsidies for operating costs without their use being specified. Moreover, after incorporation, individual corporations are allowed to reorganize and abolish their organizations by their own judgment, giving them a more flexible approach to engaging in research activities. Furthermore, a “special education research expense” has been established to give prioritized support to corporations engaged in characteristic and ambitious research programs, making necessary financial support available for strategic, international, and contributing to local communities research activities proposed or requested by each corporation.

● Expanding support for Japan’s private universities

 Roughly 75 percent of Japan’s university students attend private universities, which actively carry out characteristic educational research activity based on the unique spirit upon which each university was created. Accordingly, the Ministry of Education, Culture, Sports, Science and Technology implements the following measures in order to support private universities.

 With the aim of creating world-class universities, the Ministry is providing prioritized assistance according to the state of each university’s efforts in education and research under “Special Expenses for Advancing Higher Education and Research Levels at Private Universities,” a subsidy for operational costs.

 To assist in the development of facilities and equipment, the Ministry supports the remodeling of facilities to make them multimedia-capable, the installation of on-campus LAN systems, and the comprehensive provision of the research facilities and equipment needed to implement excellent research projects selected by the “Program for Promoting the Advancement of Academic Research at Private Universities.”

 As for tax measures, various tax incentives including the exemption of corporation income tax and enterprise tax related to education and research projects are provided. To develop the conditions for inducing diversified private-sector funds into school corporations, tax systems concerning donation to educational corporations were changed, and the minimum limitation for deductions for donations under income tax was lowered from 10,000 yen to 5,000 yen for donations conducted after 2006.

● Deliberations in the Council for Science and Technology

 The Council for Science and Technology conducts research and deliberations in response to inquiries posed by the Ministry of Education, Culture, Sports, Science and Technology regarding matters important to the comprehensive promotion of science and technology, and to the promotion of learning in general; it also provides opinions to the minister. The Subdivision on Science was established within the Council in order to conduct research and deliberations on matters important to the promotion of learning that takes place primarily at universities （see Table 3-1-6）.

（2） Science Council of Japan （SCJ）

 The Science Council of Japan represents Japanese scientists at home and abroad with the philosophy that science is the foundation upon which civilized nations are built. Its purpose is to promote the advancement and development of science and have it reflected and spread in administration, industry and national life. The SCJ was established as the “special organization” under the jurisdiction of the Prime Minister in January 1949. It is now organized by 210 members representing about 790,000 scientists of Japan, and independently conducting activities with the following duties: （1） the deliberation and implementation of important matters concerning science, （2） the promotion of liaison for research concerning science, and improvement of efficiency.

 In April 2004, the “Law to Amend Part of the Science Council of Japan,” which is designed to revise SCJ’s jurisdiction, organization, and way of recommending members, etc., was enacted. The Science Council of Japan was then placed under the authority of the Cabinet Office in April 2005 and its new organization was inaugurated after implementing operational reforms.

 In order to contribute to the promotion of Japanese science and technology in close cooperation with the Council for Science and Technology Policy, the new Science Council of Japan is proceeding with activities with its emphasis on the following:

1）Policy recommendation

 Propose to policy decision makers specialized and reliable recommendations and advice from the viewpoint of scientists

2） Liaison and coordination concerning scientists

 Establish a close network among scientists through the promotion of scientists’ exchanges and strengthening coordination and cooperation in scientists’ communities.

3） International exchanges concerning science

 Establish an international structure for cooperation among scientists under which scientists around the world can make recommendations on global issues on the basis of scientific knowledge.

4） Develop public opinions for science, and strive to promote the scientific capabilities of youth

 Especially through efforts of members of the Science Council of Japan to have a dialogue with society to talk about the significance of science and research in an easy-to-understand language.

● Deliberation activities

 In April 2005, the President of the SCJ submitted to the Prime Minister the “Japan Vision 2050 （Principles of Strategic Science and Technology Policy Toward 2020” as the SCJ’s statement with regard to what the Japanese policy on science and technology should be in the future. The proposal by 2050 called on realizing the establishment of the “Nation with Dignity,” and “Trust of Asia” as Japan’s national vision, and set up missions.

 Based on the “Japan Vision 2050 （Principles of Strategic Science and Technology Policy Toward 2020,” the President of the SCJ made recommendations to the Prime Minister on the “Counsel on ensuring the safety in time of earthquake disaster in megacities,” which is one of the most urgent issues in April 2005.

 The SCJ made one recommendation, 7 requests and statements, and 68 external reports in FY2005.

● International scientific exchange

 The SCJ represents Japan through its affiliation with 48 international scientific organizations, including the International Council for Science （ICSU） and the InterAcademy Council （IAC）. It has been striving for cooperation with various countries by actively taking part in six international academic cooperative projects, including the International Geosphere-Biosphere Programme （IGBP）.

 Especially, science councils from the Group of Eight countries including the SCJ agreed to issue a joint recommendation （joint statement） concerning the agenda of the annual G8 Summit, and to work for the establishment of a framework under which representatives of G8 science councils will gather at the Summit venue for discussions. Activities of the G8 science councils started in 2005. In June 2005, prior to the G8 Summit held at Gleneagles, UK in July, science councils of the G8 and other related countries issued a joint statement concerning the main agenda of the Summit: the “climate changes” and the “African development.”

 The Science Council of Asia （SCA）, an international scientific organization which aims to promote collaboration and cooperation among Asian countries in scientific research, convened annually on the theme of sustainable development in Asia. The SCJ serves as secretariat for the SCA, and member countries host its conference in rotation. The fifth conference was held in Vietnam in May 2005.

 In September 2005, the SCJ hosted the “International Conference on Science and Technology for Sustainability－Dynamism and Uncertainty in Asia” in Kyoto. The conference adopted a chairman’s statement which included topics which scientists should take on the challenge of on the basis of in-depth deliberations on harmony between economy and the environment.

 The Science Council of Japan also obtains approval from the Cabinet to host important international conferences related to science. These conferences are held in Japan and jointly hosted with relevant scientific research organizations. In FY2005, the Council co-hosted eight such conferences, including the 18th World Conference of Psychosomatic Medicine.

● Open lectures and symposiums

 The SCJ sponsors open lectures as a way of returning science results to the citizens of Japan. The SCJ also actively sponsors symposiums that engage in various scientific issues. The Divisions and Disciplinary Committees of the SCJ play a central role in organizing such symposiums in cooperation with various academic institutions.

 In FY2005, the SCJ hosted three open lectures and 107 symposiums.

 Furthermore, the SCJ jointly hosted with the Cabinet Office and Nippon Keidanren （Japan Business Federation） the “Fourth Conference on the Promotion of Coordination between industry, academia and government” in Kyoto in June 2005, and the “Fifth Summit on Coordination between industry, academia and government” in Tokyo in November 2005, in order to promote collaboration between industry, academia, and government. The SCJ also hosted a “Regional Promotion Forum” in Sapporo in September 2005, and in Kanazawa in March 2006.

● Building a network of scientists

 The Science Council of Japan gathers scientists’ opinions in both humanities and natural sciences as the central community for Japanese scientists. The SCJ conducts operations for liaison and coordination with related research institutes and study groups while grasping the academic movements, and studying the future planning and the development of research conditions. The SCJ is collaborating with about 1,200 academic institutions with the status of SCJ academic partners.

 For the purpose of enhancing communications with regional scientists and contributing to the promotion of science, the SCJ organizes 7 regional conferences in Hokkaido and Tohoku, Kanto, Chubu, Kinki, Chugoku and Shikoku, Kyushu and Okinawa.

（3） National Experimental Research Institutions, Public Experimental Research Institutions, and Incorporated Administrative Agencies

 National experimental research institutions, incorporated administrative agencies, and public experimental research institutions are assigned the task of achieving policy targets. It is critical for these organizations to carry out prioritized research and development that centers on basic, pace-setting research to improve the nation’s science and technology levels. They should also carry out systematic and integrated research that sets concrete targets in line with policy needs. Public experimental research institutions that belong to local governments shoulder the responsibility for carrying out technical development, and providing technical guidance that meets the needs of local industry and their region.

 The total FY2005 expenditure related to science and technology, which cover experimental research, personnel, and facilities expenditures for the national experimental research institutions （including the Geographical Survey Institute, the National Geography Institute, the Japan Coast Guard’s Hydrographic and Oceanographic Department, and other institutes）, incorporated administrative agencies, and public research institutions, was 1.3626 trillion yen.

（4） Private Sector Research and Development

 It is critical for the nation to reinvigorate the research and development activities of the private sector, which play an important role together with the activities of the national government. Therefore, it is important for the national government to increase the drive for a broad range of private sector research and development activities, based on the fundamental concept of self-reliance among the private sector.

● Promoting private sector research activity through the taxation system

 To promote research and development by the private sector, various tax measures are provided as shown in Table 3-3-5. An existing tax system gives a tax credit on a certain percentage of gross experimental and research expenses. In the FY2006 tax reform, special measures are added for two years by which the credit percentage is increased for an increase in experimental and research expenses. As another measure, the non-deductible amount of deduction for donations under the income tax decreased to 5,000 yen.

Table 3-3-5 Major preferential treatment for science and technology promotion

Item	Purpose	Description	Applicable law	Date of enactment/ validity
R&D taxation system	Promotion of research and development investment by the private sector, etc.	Tax Credit for research and development expenditures. Ⅰ.Proportional Tax Credits for total research and development expenses (1) The research and development credit is a percentage (8 to 10％) of the total of research and development expenses. The maximum amount is the sum of 20％ of the corporation tax liability (2) Same for individual businesses (Income tax). Ⅱ.Special Tax Credit on joint and entrusted research based on industry-academic-government cooperation (1)  For joint research and development with, or research and development commissioned to, universities and public research institutes (including independent administrative institutions), consistent with item Ⅰ above, the tax credit amount is a value equivalent to 12％ of these research and development expenses (but limited to a value equivalent to 20％ of corporation tax with the special tax credit from itemⅠ. above added in). (corporation tax) (2) Same for individual businesses (Income tax).	Special Taxation Measures Law, Article 10 (income tax), Article 42-4, Article 68-9 (corporation tax), Local Tax Law, Supplementary Provision, Article 8, Item 1.	Enacted in FY2003
		Ⅲ.Tax system to strengthen the technical base of small and medium-sized corporations (Applied instead of Ⅰ or Ⅱ) (1)  The tax credit amount is a value equivalent to 12％ of test and research expenses at small and medium-size corporations (but limited to a value equivalent to 20％ of corporation tax) (corporation tax). (2) Same for individual businesses (Income tax) (3) The tax credit amount in (1) above is excluded from the tax base for corporate inhabitants tax (Local tax).		Enacted in FY1985
		Ⅳ.Proportional Tax Credits for increased research and development expenses (1) The research credit is 5％ of the excess of research expenses over the base amount provided that the base amount in ⅠorⅢ exceeds the average of annual research expenses for the previous three business years and the annual research and development expenses for theprevious two business years (but limited to a value equivalent to 20％ of the corporation tax). (corporation tax) (2) Same for individual businesses (Income tax).		Enacted in FY 2006 (effective through FY2007)
Deductions for Donations, etc	Promotion of science and technology	1) The following donations made by individuals or corporations shall be given preferential treatment：  1. Donations to public interest corporations that are designated by the Finance Minister as being publicly solicited, contributing to the promotion ofeducation or science, and assuredly going to urgent causes (Designated donations)  2. Donations to public interest corporations that promote education or science, significantly contribute to the public interest, and are donated to specified, qualified public-benefit promotion institution in relation to the main activities of the corporation;  3. Donations to specified approved charitable trusts that receive approval of the competent minister as promoting education or science, significantly contributing to the public interest, and filling specified requirements. (2) With regard to donations of spot goods to corporations engaged in businesses in the public interest, and that receive approval of the Director-General of the National Tax Administration Agency as filling the requirements of promoting education or science.	Corporation Tax Law, Article 37 Income TaxLaw, Article 78 Special Taxation Measures Law, Article 40	Enacted in FY1946 (corporation tax), Enacted FY1962 (income tax) Enacted FY1961 (corporation tax), Enacted FY1962 (income tax) Enacted in FY1987 Approval procedure streamlined in FY2003 Tax deduction limitation increased in FY2005 Minimum allowable donation lowered in FY2006
Measures for Tax Exemptions on Research Assets of Scientific Research Corporations	Promotion of science and technology	Assets provided to corporations established under Civil Law Article 34 for the purpose of scientific research are exempted from the real property acquisition tax, fixed property tax, special land holding tax, and city planning tax, subject to their direct use in that research.	Local Tax Law, Article 73-4, Item 1, Article 348, Item 2, Article 586, Item 2, Article 702-2, Item 2	Fixed property tax in 1951, real property acquisition tax in 1954, city planning tax in FY1956, special land holding tax in FY1973
Special Measures for Property Taxation Standards related to Biotechnology Research Assets	Reduction of burdens related to prevention of danger and harm to the public	Of the equipment that is required for experiments and research in gene recombination technologies, etc., the tax base for the purpose of fixed property tax is reduced to five-sixth for three fiscal years for new equipment that is acquired for the purpose of taking nonproliferation measures in accordance with the "Law Concerning the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living Modified Organisms."	Local Tax Law Supplementary Provisions, Article 15, Item 19	Enacted in FY1986, effective through FY2007
Tax system for Promotion of Research Exchanges	Promotion of research exchanges, and revitalization of local economies	When corporations subject to Article 34 of the Civil Law develop facilities on the grounds of incorporated national universities for joint research with those incorporated national universities or incorporated inter-university research institutes, the tax on real property acquisitions is reduced to one-half, while the tax base for the fixed property tax is reduced to one-half for the first five years after acquisition, and to three-fourths for the succeeding five years.	Local Tax Law Supplementary Provisions, Article 11, Item 14, and Article 15, Item 21	Enacted in FY1999 (real property acquisition tax), enacted in FY2000 (fixed property tax) (effective through FY2006)

● Promoting private sector research activities through investment and loans

 To promote research activity in the private sector, fiscal investment and loan systems for technology development are implemented by various government-affiliated organizations. The following section introduces some of the main examples of this.

1） National Agriculture and Bio-oriented Research Organization

 With the aim of promoting experimental research in the private sector concerning the designated industrial technology of biological systems, The National Agriculture and Bio-oriented Research Organization provided funds and conditional interest-free loans, as well as referrals for joint research using investments and financing from the Industry Investment Special Account and investments from private sources.

2） Other financial provisions

 To ensure the development of new technologies recognized as being able to contribute to a major improvement in the level of Japan’s industrial technology, the Development Bank of Japan is implementing the New Technology Research and Development Loan Program to provide long-term, fixed, low-interest loans to corporations for development costs related to new technologies.

● Promotion of private sector research activities through subsidies

 A system of subsidies is made available to support research and development aimed at commercialization by the private sector. The main subsidies are as follows:

1）Subsidies for Pharmaceuticals to Treat Rare Diseases

 To support research and development on drugs, etc., for diseases that afflict small numbers of Japanese people, subsidies are provided for costs related to experimental research for applicable pharmaceuticals, etc.

2）Support Technology Development Project for the Creation of Collective Private Agribusiness

 In order to stimulate agribusiness, support is given for research and development that utilizes the potential of universities and incorporated administrative agencies, and is conducted by private-sector enterprises that assume the task of turning research results into practical applications.

3）Project to Support Research and Development for Revitalization of Regional Food Industry, etc.

 Support is given to short-term research and development conducted by private enterprises concerning issues to be urgently solved at worksites of agriculture, forestry and fisheries industries, and the food industry including the food-related industry.

4）Program for the Support of Research on the Integration of Different Fields for the Creation of Bio-oriented Industries

 Orchestrating the R＆D ability of industry, academia, and the government, integrative research conducted by researchers from different fields is implemented with an open invitation for proposals from the public, and support for the building of partnerships is given.

5）Subsidies for Research and Development of Creative Technologies

 From the perspective of technology development and improving the technological capabilities of small and medium-scale enterprises, subsidies are provided for costs related to the development of creative new products, and the research and development of new technologies.

6）Subsidies for Cutting Edge Technology Research and Development

 The National Institute of Information and Communications Technology （NICT） subsidizes the research and development costs for venture enterprises carrying out cutting edge R＆D related to telecommunications technologies that will lead to the creation of new business in the future.

7）Subsidies for Research and Development into the Improvement of Communication and Broadcast Services for Elderly and Disabled People

 The NICT provides private sector corporations, etc., with subsidies for research and development costs necessary for the development of communication and broadcast services for the elderly and disabled.

8）Program for Subsidy of Technology Development for Creation of New Regional Industries

 In order to revitalize regional economies through the creation of new regional industries/businesses, support is given to high-risk development technology for practical use, such as entry into new fields by small and medium-sized enterprises and start-ups by venture companies.

9）Private Sector Fundamental Technology Research Support Scheme

 In order to promote experimental research into infrastructure technologies conducted in the private sector related to the mining, manufacturing, electro-communications and broadcasting industries, public applications are invited for entrustment research contracts. Applications are accepted by the New Energy and Industrial Technology Development Organization for mining and manufacturing technologies, and by the NICT for communications and broadcasting technologies.

10）Grants for Practical Application of Industrial Technology

 To strengthen industrial technology in the private sector, the New Energy and Industrial Technology Development Organization （NEDO） provides financial support on a cost-sharing basis to private sector enterprises for development of practical new technologies aimed at creating new markets or responding to social needs.

11）Subsidies and consignment expenses, etc., conducted under the Small Business Innovation Program

 This program is described under the section entitled, “3.3.2.4, Developing an Environment to Invigorate Research and Development-style Ventures.”

12）Project to Support Research for Putting Medical Products and Medical Equipment to Practical Use

 Private enterprises engaged in practical use-stage research and development of technologies concerning medical products and medical equipment useful for the enhancement of health care are invited to apply for entrustment research contracts through the Pharmaceuticals and Medical Devices Agency.

● Other

 A number of measures are being implemented to ensure the availability of superior personnel in small businesses, venture businesses, and other corporations that have just started operating. These measures include the promotion of personnel exchanges between universities and industry, etc., in order to nurture and produce personnel with an entrepreneurial sprit, to implement model research for courses offered on leading entrepreneurship at universities, etc., to further promote internships at venture businesses, etc. （student enterprise experience program）, and to encourage university graduates to go into venture business operations.

 Additionally, to support the creation of new businesses through entrepreneurial activities within corporations or through corporate spin-offs, a share conversion and share transfer program is being implemented to ensure the smooth reform of corporate organizations through the use of corporate spin-offs and holding companies, etc. In addition, studies have commenced into the development of a legal system for breaking up companies.

 In addition, when preparation by the private sector is difficult because of the need for large-scale and joint-use facilities, the national government is prepared to undertake the preparation of facilities and equipment for joint use with the private sector （Table 3-3-6）.

Table 3-3-6 Development of large-scale and expensive joint-use facilities and equipment too difficult for the private sector