Type: INT 97-44 **NSF/Tokyo Report: Survey of Research and Development
in Japan**

Org: INT

Date: 12/31/97

Replaces: None

The National Science Foundation\'s offices in Tokyo and in Paris
periodically report on developments abroad that are related to the
Foundation\'s mission. These documents present facts for the use of NSF
program managers and policy makers; they are not statements of NSF
policy.

1997 SURVEY OF RESEARCH AND DEVELOPMENT IN JAPAN

\-- Government-funded R&D Declining \--

This Memorandum is an update of NSF/Tokyo\'s previous Report Memoranda
on the same subject (RM#94-9 of 12/6/94, RM#95-22 of 12/19/95 and
RM#96-26 of 12/9/96). Information is based on data provided in a
\"summary report\" released by the Statistics Bureau, Management and
Coordination Agency of the Japanese Government on November 27, 1997.
This \"summary report\" provides findings from the 1997 \"Survey of
Research and Development\" (Kagakugijutsu Kenkyuu Chosa), a survey
conducted every year as of April 1 to collect basic statistical
information on funds expended for R&D during the preceding fiscal year
by companies, universities and other organizations in Japan.

This Report Memorandum, for ease of reference and comparison, follows
the same format for statistical tables used in previous reports.
Statistical data are provided both for (1) all areas covered by the
survey (humanities, social sciences and natural sciences) and (2)
\"natural sciences\" alone, whenever such data are available from the
Statistics Bureau\'s original summary.

Appendices A and B show R&D expenditure levels in the specific areas of
life sciences and energy-related R&D. The 1997 survey covered R&D
expenditures of approximately 16,600 organizations, including 12,500
private companies, 2,600 universities and 1,500 research institutes, for
the Japanese fiscal year 1996 (April 1, 1996 - March 31, 1997), as
compared to a total of 15,700 organizations surveyed in previous year\'s
survey (including 11,700 companies, 2,500 universities and 1,500
research institutes).

The increase in the total number of organizations surveyed is primarily
due to the fact that starting from this year\'s survey the scope of
private companies to be covered has been expanded to include companies
in the so-called \"software industries\"; namely the companies
conducting R&D on computer programs and other software products.

For comparison, the table below shows an industry-to-industry breakdown
of R&D expenditures in the private industries covered in the survey, to
show the relative ratio of R&D expenditure of the \"software
industries\" added at this time:

Industry-to-Industry Comparison of R&D Expenditures (Unit: Billion yen)

INDUSTRIES: FY\'1995 FY\'1996 Ratio to Total

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Agriculture, forestry and fisheries 8.7 9.0 0.1%

Mining 22.9 21.7 0.2%

Construction 204.4 224.5 2.2%

Manufacturing 8,774.4 9,263.2 92.1%

Transport, communications

and public utilities 385.6 362.9 3.6%

Software N/A 177.2 1.8%

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Total of All Industries: Y9,395.9 Y10,058.4 100.0%

(In billion yen)

A complete report of the 1997 survey findings will be published later by
the Statistics Bureau, Management and Coordination Agency, probably in
April 1998.

Brief Review of

1997 SURVEY OF RESEARCH AND DEVELOPMENT IN JAPAN

by

Statistics Bureau of Management & Coordination Agency Japan

A. The total R&D expenditure in Japan in JFY 1996 (April 1, 1996 - March
31, 1997) was 15,079.3 billion yen (including 13,840.9 billion yen in
the natural sciences alone); an increase of 4.7% (nominal)\* or 3.4%
(real) from the preceding fiscal year \[Tables 1 and 2\].

This represents continued growth in total R&D expenditure for the last
two years, following the decline for the two previous years (JFY 1993
and JFY 1994), although the rate of yearly increase (4.7%) was not as
high as the last year (6.0% in JFY 1995 over JFY 1994 level). \[Note
that the rate of increase would have been even lower; namely, 3.4%
(nominal) or 2.2% (real), if R&D expenditure of the newly-added
\"software industries\" had not been included.\]

The total R&D expenditures in JFY 1996 accounted for 3.00% of Gross
Domestic Product (GDP), an increase from the previous fiscal year\'s
level of 2.95% \[Table 3\].

\(1\) Regarding sources of funding for R&D expenditure, 21.0% of the
total was disbursed by national and local governments and 78.9% by the
non-government sector \[Table 4\]. Government R&D support dropped 4.0%
from the preceding fiscal year; a sharp contrast to the 12.8% increase
from JFY 1994 to JFY 1995. On the other hand, this year\'s
non-government funding increased 7.2% from the preceding fiscal year as
compared to an increase of 4.1% from JFY 1994 to JFY 1995.

\(2\) Regarding R&D expenditures by type of performing organization,
66.7%, 20.0% and 13.3% of the total was accounted for by private
companies, universities and research institutes, respectively \[Table
5\]. R&D expenditures in private companies increased 7.1% (or 5.2% if
\"software industries\" were excluded) from the preceding fiscal year,
as compared to an increase of 4.6% from JFY 1994 to JFY 1995. On the
other hand, R&D expenditures in research institutes dropped 1.1%; a
contrast to the 9.0% increase from JFY 1994 to JFY 1995. R&D
expenditures in universities showed a slight increase of 1.0%, as
compared to 8.3% increase from JFY 1994 to JFY 1995.

\(3\) Regarding expenditure by type of research, 14.1% of the total was
for basic research (as compared to 15.0% in JFY 1995), 24.4% for applied
research (24.6% in JFY 1995), and 61.5% for development (60.5% in JFY
1995) \[Table 6\].

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Note: (\*) For computing \"real\" figures, the Statistics Bureau changes
the base year once every five years, and starting with the 1997 survey
(for JFY 1996 data), they use JFY 1995 as the base year.

B. The total number of regular researchers as of April 1, 1997 was
695,600 (including 15,600 in the newly-added \"software industries\"),
an increase of 3.3% over the 673,400 in the previous year. \[Table 7\].
Private companies and universities showed yearly increases of 4.2% and
2.2%, respectively, in the number of regular researchers employed
(including software industries), whereas research institutes showed an
increase of only 1.1%. The average research expenditure per investigator
was 21,680,000 yen in JFY 1996; an increase of 1.3% from the previous
fiscal year\'s level of 21,400,000 yen. The \"per capita\" research
expenditure increased 2.7% in private companies, but decreased both in
research institutes (-2.2%) and universities (-1.1%).

C. The ratio of \"payment\" to \"receipt\" in international technology
trade showed a decrease from 0.70 in JFY 1995 to 0.64 in JFY 1996,
suggesting that Japan\'s \"receipt\" for technology exports continued to
exceed her \"payment\" for technology imports for the last four years
\[Table 8\]. When limited to transactions newly initiated in JFY 1996,
the ratio increased from 0.60 in JFY 1995 to 0.71 in JFY 1996.

The following tables summarize data provided by the Statistics Bureau:

Summary Tables of

1996 Survey of Research and Development in Japan

by Statistics Bureau

Management and Coordination Agency

1\. Total Amount of R&D Expenditure

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

(Unit: Billion Yen)

Total Amt. of R&D Expend. Y13,596.0 Y14,408.2 Y15,079.3

(Nominal)

Increase over Preceding

Fiscal Year (Nominal) -0.8% 6.0% 4.7%\*

Total Amt. of R&D Expend. Y13,651.4 Y14,408.2 Y14,894.7

(Real)\*\*

Increase over Preceding

Fiscal Year (Real) -1.4% 5.5% 3.4%

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

( \*Note: Or, 3.4% if \"software industries\" were excluded.

\*\*Note: In computing the \"real\" expenditure figures, JFY

1995 is used as the base year. )

2\. R&D Expenditure in Natural Science Areas Only\*

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

Amt. of R&D Expend.\* Y12,419.2 Y13,191.2 Y13,840.9

(Nominal)

Increase over Preceding -0.9% 6.2% 4.9%\*\*

Fiscal Year (Nominal)

Amt. of R&D Expend. Y12,462.0 Y13,191.2 Y13,678.7

(Real)\*\*\*

Increase over Preceding

Fiscal Year (Real) -1.4% 5.9% 3.7%

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

\[Notes:

(\*) The R&D expenditure shown above for \"natural sciences\" still
includes some expenditures used for R&D in social sciences and
humanities by professors and researchers of S&E universities and
research institutes.

(\*\*) Or, 3.6% if \"software industries\" were excluded.

(\*\*\*) In computing the \"real\" figures, JFY 1995 is used as the base
year. \]

3\. Ratio of R&D Expenditure to Gross Domestic Product (GDP)

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

R&D Expenditure Y13,596.0 Y14,408.2 Y15,079.3

GDP Y479,026.4 Y488,522.5 Y503,041.3

Ratio of R&D Exp. to GDP 2.84% 2.95% 3.00%

4\. Source of Funds for R&D Expenditure

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

TOTAL

R&D Expenditure 13,596.0 Y14,408.2 Y15,079.3

Increase/prec. JFY -0.8% 6.0% 4.7%

NATIONAL AND LOCAL GOVERNMENTS

R&D Expenditure Y2,918.2 Y3,292.4 Y3,160.6

Increase/prec. JFY -1.6% 12.8% -4.0%

Percentage of total 21.5% 22.9% 21.0%

NON-GOVERNMENT

R&D Expenditure Y10,663.9 Y11,100.5 Y11,904.7

Increase/prec. JFY -0.6% 4.1% 7.2%

Percentage of total 78.4% 77.0% 78.9%

FOREIGN COUNTRIES

R&D Expenditure Y14.0 Y15.4 Y14.1

Increase/prec. JFY 18.4% 9.9% -8.2%

Percentage of total 0.1% 0.1% 0.1%

5\. Amount of R&D Expenditure by Type of Organizations

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

TOTAL

R&D Expenditure Y13,596.0 Y14,408.2 Y15,079.3

Increase/prec. JFY -0.8% 6.0% 4.7%

\[3.4%\*\]

PRIVATE COMPANIES

R&D Expenditure Y8,980.3 Y9,395.9 Y10,058.4

Increase/prec. JFY -0.8% 4.6% 7.1%

\[5.2%\*\]

Percentage of total 66.1% 65.2% 66.7%

RESEARCH INSTITUTES

R&D Expenditure Y1,863.2 Y2,030.2 Y2,007.8

Increase/prec. JFY -1.8% 9.0% -1.1%

Percentage of total 13.7% 14.1% 13.3%

UNIVERSITIES

R&D Expenditure Y2,752.6 Y2,982.2 Y3,013.1

Increase/prec. JFY -0.2% 8.3% 1.0%

Percentage of total 20.2% 20.7% 20.0%

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(\*Note: Figures in \[ \] above show the increase rates

excluding software industries.)

6\. R&D Expenditure by Type of Research (in the limited areas

of Natural Sciences only)\*

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

TOTAL\*

Amt. of Expenditure Y12,316.2 Y13,083.4 Y13,726.4

Increase/prec. JFY -0.8% 6.2% 4.9%

BASIC RESEARCH

Amt. of Expenditure Y1,781.9 Y1,956.7 Y1,933.1

Increase/prec. JFY 0.4% 9.8% -1.2%

Percentage of total 14.5% 15.0% 14.1%

APPLIED RESEARCH

Amt of Expenditure Y3,033.7 Y3,217.7 Y3,345.2

Increase/prec. JFY 1.4% 6.1% 4.0%

Percentage of total 24.6% 24.6% 24.4%

DEVELOPMENT

Amt. of Expenditure Y7,500.6 Y7,909.0 Y8,448.1

Increase/prec. JFY -2.0% 5.4% 6.8%

Percentage of total 60.9% 60.5% 61.5%

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

\[\*Note: The discrepancy between the total yen amounts shown here
(e.g., 13,726.4 billion yen for JFY 1996) for R&D expenditure in
\"natural sciences\" and the amounts listed in Table 2 for \"natural
sciences\" (e.g., 13,840.9 billion yen for JFY 1996) is due to the fact
that the smaller figures EXCLUDE the non-natural-science studies done by
professors in S&E universities and by researchers in other organizations
classified as \"natural-science oriented\" R&D organizations.\]

7\. Number of \"Regular\" Researchers (as of April 1, 1997)

Items / As of April 1 1995 1996 1997

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

TOTAL

Number 658,900 673,400 695,600

Increase/prec. JFY 2.8% 2.2% 3.3%

\[1.0%\*\]

R&D Expenditure per

researcher (Million Yen) Y20.64 Y21.40 Y21.68

PRIVATE COMPANIES

Number 376,600 384,100 400,400

Increase/prec. JFY 2.5% 2.0% 4.2%

\[0.2%\*\]

Percentage of total 57.2% 57.0% 57.6%

R&D Expenditure per

researcher (Million Yen) Y23.84 Y24.46 Y25.12

RESEARCH INSTITUTES

Number 46,500 46,500 47,000

Increase/prec. JFY 4.2% -0.1% 1.1%

Percentage of total 7.1% 6.9% 6.8%

R&D Expenditure per

researcher (Million Yen) Y40.05 Y43.70 Y42.73

UNIVERSITIES

Number 235,700 242,900 248,300

Increase/prec. JFY 2.9% 3.0% 2.2%

Percentage of total 35.8% 36.1% 35.7%

R&D Expenditure per

researcher (Million Yen) Y11.68 Y12.28 Y12.14

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(\*Note: Figures in \[ \] above show the rates excluding

software industries.)

8\. International Technology Trade

Items / Fiscal Years JFY 1994 JFY 1995 JFY1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

RECEIPT FOR TECHNOLOGY

EXPORT Y462.1 Y562.1 Y703.0

Newly-Initiated

Transactions Y56.5 Y84.4 Y100.8

PAYMENT FOR TECHNOLOGY

IMPORT Y370.7 Y391.7 Y451.2

Newly-Initiated

Transactions Y52.4 Y50.4 Y71.8

RATIO OF PAYMENT/RECEIPT 0.80 0.70 0.64

Newly-Initiated

Transactions 0.93 0.60 0.71

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Appendix A

R&D Survey Data for R&D in \"Life Sciences\"

Items / Fiscal Years JFY 1994 JFY 1995 JFY1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

TOTAL (Life Science R&D)

L/S R&D Expenditure Y1,637.6 Y1,749.7 Y1,798.6

Increase over Preceding

Fiscal Year -0.2% 6.8% 2.8%

Ratio of L/S R&D Expend.

to All S&T R&D Expend. 12.0% 12.1% 11.9%

No. of Regular Researchers \*109,545 112,000 113,100

PRIVATE COMPANIES

L/S R&D Expenditure Y796.0 Y827.8 Y867.6

Increase over Preceding

Fiscal Year -3.2% 4.0% 4.8%

Percentage of Total 48.6% 47.3% 48.2%

Ratio of L/S R&D Expend.

to All S&T R&D Expend. 8.9% 8.8% 8.6%

No. of Regular Researchers \* 26,935 27,200 27,000

RESEARCH INSTITUTES

L/S R&D Expenditure Y242.2 Y264.3 Y275.9

Increase over Preceding

Fiscal Year 1.0% 9.1% 4.4%

Percentage of Total 14.8% 15.1% 15.3%

Ratio of L/S R&D Expend.

to All S&T R&D Expend. 13.0% 13.0% 13.7%

No. of Regular Researchers \* 10,126 10,500 10,900

UNIVERSITIES

L/S R&D Expenditure Y599.4 Y657.5 Y655.1

Increase over Preceding

Fiscal Year 3.6% 9.7% -0.4%

Percentage of Total 36.6% 37.6% 36.4%

Ratio of L/S R&D Expend.

to All S&T R&D Expend. 21.8% 22.0% 21.7%

No. of Regular Researchers \* 72,484 74,300 75,200

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(\*Note: The numbers of regular researchers shown above are those
reported as of April 1 of the fiscal year immediately following the
fiscal years given in the head line of this table.)

Appendix B

R&D Survey Data for \"Energy-related R&D\"

Items / Fiscal Years JFY 1994 JFY 1995 JFY 1996

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(Unit: Billion Yen)

TOTAL (Energy-related R&D)

Energy R&D Expenditure Y1,058.5 Y1,117.8 Y1,168.1

Increase over Preceding

Fiscal Year 0.4% 5.6% 4.5%

Ratio of Energy R&D Expend.

to All S&T R&D Expend. 7.8% 7.8% 7.7%

No. of Regular Researchers \* 24,936 25,200 25,200

PRIVATE COMPANIES

Energy R&D Expenditure Y363.0 Y377.8 Y397.9

Increase over Preceding

Fiscal Year -0.1% 4.1% 5.3%

Percentage of Total 34.3% 33.8% 34.1%

Ratio of Energy R&D Expend.

to All S&T R&D Expend. 4.0% 4.0% 4.0%

No. of Regular Researchers \* 11,264 11,200 11,300

RESEARCH INSTITUTES

Energy R&D Expenditure Y640.3 Y677.1 Y706.2

Increase over Preceding

Fiscal Year 0.3% 5.8% 4.3%

Percentage of Total 60.5% 60.6% 60.5%

Ratio of Energy R&D Expend.

to All S&T R&D Expend. 34.4% 33.4% 35.2%

No. of Regular Researchers \* 9,919 10,000 9,900

UNIVERSITIES

Energy R&D Expenditure Y55.3 Y62.9 Y63.9

Increase over Preceding

Fiscal Year 5.2% 13.8% 1.6%

Percentage of Total 5.2% 5.6% 5.5%

Ratio of Energy R&D Expend.

to All S&T R&D Expend. 2.0% 2.1% 2.1%

No. of Regular Researchers \* 3,753 3,900 3,900

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(\*Note: The numbers of regular researchers shown above are those
reported as of April 1 of the fiscal year immediately following the
fiscal years given in the head line of this table.)