[Provisional Translation]

The 5th Science and Technology Basic Plan

January 22, 2016
Government of Japan

Table of Contents
Introduction

1

Chapter 1 Basic Concepts

3(1) Recognition of the Current Situation

3(2) Achievements and Challenges in 20 Years of Science and Technology Basic Plans

5(3) Target National Profile7

 Sustainable growth and self-sustaining regional development

7

 Ensure safety and security for our nation and its citizens and a high-quality, prosperous wayof life7

 Address global challenges and contribute to global development7

 Sustainable creation of intellectual assets

7(4) Basic Principles

8 Four pillars of the Fifth Science and Technology Basic Plan

8i) Acting to create new value for the development of future industry and social transformation
8ii) Addressing economic and social challenges

8iii) Reinforcing the “Fundamentals” for STI (science, technology, and innovation)

8iv) Establishing a systemic virtuous cycle of human resources, knowledge, and capital for
innovation

9

 Important issues in the promotion of the Science and Technology Basic Plan

9i) Deepening the relationship between STI and society

9ii) Enhancing capacity to promote STI

9Chapter 2 Acting to Create New Value for the Development of Future Industry andSocial Transformation
11(1) Fostering R&D and Human Resources that Boldly Challenge the Future11(2) Realizing a World-leading “Super Smart Society” (Society 5.0)

12

 Super smart society

13 Efforts required to realize a super smart society

14(3) Enhancing Competitiveness and Consolidating Fundamental Technologies in a “Super Smart
Society”

16 Initiatives required to enhance competitiveness16 Strategic consolidation of fundamental technologies

16i) Fundamental technologies necessary to build the super smart society service platform

16ii) Fundamental technologies that are Japan's strengths, which form the core of new value
creation

17iii) Principles on consolidating fundamental technologyi18

Chapter 3 Addressing Economic and Social Challenges(1) Sustainable Growth and Self-sustaining Regional Development
 Ensuring stable energy, resources and food

19
20
20

i) Ensuring stable energy and improving energy efficiency

20ii) Ensuring stable resources and cyclical use

20iii) Securing a stable food supply

21

 Achieving a sustainable society to handle hyper-aging, depopulation, etc.

21i) Establishment of a society in which people enjoy long and healthy lives with world-leading
medical technology

21ii) Building infrastructure for sustainable cities and regions

22iii) Extending service life for efficient, effective infrastructure23

 Improving competitiveness in manufacturing and value creation

23(2) Ensure Safety and Security for Our Nation and its Citizens and a High-Quality, Prosperous
Way of Life24

 Addressing natural disaster24

 Ensuring food safety, living environments, and occupational health24 Ensuring Cybersecurity

25

 Addressing national security issues

26(3) Addressing Global Challenges and Contributing to Global Development

26

 Addressing global climate change27 Responding to biodiversity loss

27(4) Pioneering Strategically Important Frontiers

Chapter 4 Reinforcing the “Fundamentals” for STI(1) Developing High-Quality Human Resources

28

30
30

 Developing, securing and improving career prospects of human resources as intellectual
professionals

31i) Developing and improving career prospects of young researchers

31ii) Developing and improving career prospects of various people in STI

32iii) Promoting reforms of graduate school education

33iv) Development for the next generation of STI professionals

34

 Promoting diversity and career mobility

35i) Improving women’s career prospects in STI35ii) Enhancing the international research network structure36iii) Promoting cross-field, cross-organization, and cross-sector mobility

36(2) Promoting Excellence in Knowledge Creation
 Promoting academic and basic research as a source of innovation

3738i) Reform and enhancements to promote academic research

38ii) Reform and enhancements to promote strategic and on-demand basic research

39iii) Promoting joint international research and forming world-class research centers39ii Strategic enhancement of common-platform technology, facilities, equipment, andinformation infrastructure supporting research and development activity

39i) Strategic development and use of common-platform technology and researchequipment

40ii) Maintenance, sharing, and networking of research facilities, equipment, and intellectual
infrastructure used by industry, academia, and government

40iii) Maintenance of university facilities and equipment, and enhancement of information
infrastructure40

 Promotion of open science41(3) Strengthening Funding Reform42

 Fundamental funds reform42

 Reform of public funds

43 Integrated promotion of national university reform and research funding reform

43

Chapter 5 Establishing a Systemic Virtuous Cycle of Human Resources, Knowledge
and Capital, for Innovation
45(1) Enhancing Mechanisms for Promoting Open-innovation46

 Enhancing systems of promotion in companies, universities, and national research institutes46
 Inducing a virtuous cycle of human resources for innovation creation47

 Creating “spaces for co-creation” to concentrate human resources, knowledge, andcapital48(2) Enhancing the Creation of SMEs and Startup Companies to Tackle New Business Opportunities
49
 Cultivating an entrepreneurial mentality49

 Promoting the creation of startup companies at universities50 Creating environments conducive to new business50

 Helping initial demand and endorsing the trustworthiness of new products and services 51(3) Strategic Use of International Intellectual Property and Standardization
 Promoting use of IP assets in innovation creating52
52

 Accelerating strategic international standardization and enhancing related support
systems

53(4) Reviewing and Improving the Regulatory Environment for Innovation54

 Reviewing systems in accordance to new products, services, and business models

54 Improving IP systems in response to the tremendous development in ICT

54(5) Developing Innovation Systems that Contribute to “Regional Revitalization”

55

 Revitalizing regional companies

55

 Driving innovation systems that make use of local characteristics

56

 Promoting policies that encourage local initiative

56(6) Cultivating Opportunities for Generating Innovation in Anticipation of Global Needs

iii

57

 Promoting R&D that anticipates global needs57

 Developing systems to promote inclusive innovation

58

Chapter 6 Deepening the Relationship between STI and Society(1) Promoting Co-creative STI

60
60

 Dialogue and collaboration with stakeholders

60

 Stakeholder initiatives for co-creation

61

 Scientific advice for policymaking

61 Ethical, legal, and social initiatives

62(2) Ensuring Research Integrity

62

Chapter 7 Enhancing Functions for Promoting STI

64(1) Reforming Universities and Enhancing their Function

64(2) Reforming National R&D Institutes and Enhancing their Function

65(3) Strategic International Implementation of STI Policies

66(4) Pursuing Effective STI Policies and Enhancing the Chief Controller Function

66(5) Ensuring R&D Investment for the Future

68

iv

Introduction
Both Japan and the world are in the midst of an era of drastic change.
The question is whether science, technology and innovation (STI) can contribute to sustainable
and inclusive development here and abroad. The Fifth Science and Technology Basic Plan is
expected to be the answer to this question and to provide a compass that will guide the Japanesepeople, as well as people across the globe, to a more prosperous future.
In the 17th century, the fledgling years of modern science, Robert Boyle wrote future
predictions about what we today now know as organ transplants, satellite positioning systems,
and other forms of technology. It has taken many long years to bring those predictions to fruition,
but recent science and technology, especially the development of information andcommunications technology (ICT), is now changing economic and social rules in the blink of aneye, while also impacting our lifestyles and the very existence of society and humanity. Innovation
is now manifesting itself in places beyond the traditional boundaries and is spreading across theworld almost instantaneously.
With the advance of globalization, nations have become ever more interdependent, and thevarious issues of each country now escalate to a global scale in a flash. Domestically, the declining
birthrate and the aging of our population are weakening the vitality of our rural areas. These issues
must be addressed, and a social framework must be built that will ensure that each citizen canflourish and achieve a prosperous life.
As information networks advance and people become more mobile on a global scale, flexibility
and receptivity will be essential to enjoying the diverse values of society.
In the Fifth Science and Technology Basic Plan, STI policy is mainstreamed as a major policy
for the economy, society, and the public.
A culture of “boldly challenging the future” will be cultivated to create future industries andtransform society. A “super smart society” (Society 5.0) designed to make people prosperous will
be posed to shape our future, and efforts will be enhanced to build a framework to continuallycreate new value, services, and businesses. STI will also be strategically utilized in international
collaboration to help address both domestic and international issues. To respond flexibly to any
change, the foundations of STI will be strengthened to achieve knowledge implementation with asense of speed into society. An open, global innovation system will be built to better develop andsecure brilliant professionals.
The Science and Technology Basic Plan must resonate with and be executed by those in thefields of research, development, and innovative initiatives. To maximize the potential accumulated
from investments to date, universities must be reformed with the recognition that they contributeto society through their education and research, and partnerships between industry, academia, andgovernment must be expanded. Additionally, working with the public will be promoted with theaim of transforming society through STI.

1

Executing the Fifth Science and Technology Basic Plan will require a wide spectrum ofparties—including the government, academia, industry, and citizens—to work together. By
executing the Basic Plan, we will grow the national economy and create jobs, secure safety andsecurity for our country and citizens, make lives more prosperous, and contribute to global
development.

2Chapter 1 Basic Concepts(1) Recognition of the Current Situation
The economy and society encompassing Japan is in a period of great change.
Entering the 21st century, it is clear that science and technology (S&T) have made great
progress. In addition, the rapid progress of information and communications technology (ICT) in
recent years has brought about a new reality in which information, people, organizations, logistics,
finance—in reality, almost everything—are constantly connected on a global level and mutually
influence one another. This is starting to produce hitherto non-existent synergy without beingbound to the confines of existing industrial structure and technology fields, thereby creating new
businesses and markets. It is also starting to change how we work and live.
Furthermore, as our economy and society matures, values are diversifying, with people’sinterests shifting from the tangible to the intangible. Rather than just seeking conventional
technological innovations, users now demand new values and services to be created that resonate
with their diverse needs.
Globalization is progressing further and further, and various social activities are expanding
beyond national borders. As companies actively scramble to expand their activities worldwide in
anticipation of changing global markets, they are being exposed to tough international competition.
Under these circumstances, competitiveness is largely coming to be predicated by how well acompany utilizes various knowledge and technology spread across the globe, and the abilities ofhighly skilled personnel.
Additionally, as the intellectual frontier expands, it is becoming increasingly difficult forindividuals and individual organizations to produce all the knowledge and technology necessary
for success. Thus, when creating new knowledge and value, it is increasingly important to form
and act in teams by bringing together people with diverse expertise. Furthermore, with everintensifying global competition surrounding innovation, open innovation initiatives that actively
incorporate outside knowledge and technology will be of increasing significance to companies.
In the same vein, open science is also becoming a worldwide trend in scientific research activities.
Promoting to share and make mutual use of research findings beyond existing academic
disciplines and national borders is increasing the possibilities for creating knowledge and value
outside conventional frameworks.
Meanwhile, networks are rapidly expanding on a global scale and have the potential to overturnthe conventional rules of society and people’s values. It has become essential to create new rules
for protecting personal information and establish codes of conduct to handle the security
ramifications. With the emergence and development of the Internet of Things (IoT), robots,
artificial intelligence (AI), regenerative medicine, and neuroscience, it is clear that advancementsin these new sciences and technologies will have a great impact on not only people’s lifestyles but
also the foundation of its existence. This will require a rethinking of the relationship between S&T
and society.

3

These different changes are all interrelated and progressing at an accelerating rate. The processof creating knowledge and value has changed dramatically, and it is ushering in an “era of drasticchange” where the structure of our economy and society go through significant change on a daily
basis.
It must also be noted that issues to be addressed in Japan and the world are increasing in number
and becoming more complex.
In Japan, the most pressing issues are energy, resources, food limitations, a declining birthrate
and aging population, and the declining rural economies and communities. In particular, theimportance of stable and inexpensive supplies of energy and resources in supporting the basis of
our economy and society was once again highlighted in the Great East Japan Earthquake.
Additionally, the increasing social security costs that come with the progression of an aging
society and our deteriorating infrastructure are increasing social costs and becoming a major
constraint to upholding and improving our economy, as well as the living standards of our citizens.
Furthermore, there is demand for appropriate responses to the risks of large-scale earthquakes,
volcanic eruptions, and other natural disasters, as well as to the changes in Japan’s security
environment, and the need to increase the resilience of our land and social functions. It should
also be noted that the reconstruction from the Great East Japan Earthquake is still a work inprogress and efforts must be made to stay its course.
Global issues abound. The world population continues to increase, and food and water resources
are becoming increasingly scarce. There are also the threats of infectious diseases and terrorism,
widening income disparities, and environmental issues such as climate change and reduced
biodiversity. As nations become more and more interdependent, Japan must actively contribute toa global framework for handling such issues and, as a developed country, make proactive
contributions to international peace and development with the people of emerging and developing
countries. In doing so, it is important for Japan as an Asian country with the most advanced
science and technology to make comprehensive use of our knowledge in the humanities, social
sciences, and natural sciences to promote and disseminate internationally initiatives for building
economic and social systems that will simultaneously help solve these challenges and grow theeconomy.
Thus, as the economy and society go through significant changes, continued strong promotionof STI 1 is vital in paving the path to a new future and continuing to meet these challenges at home
and abroad. Recognizing that the fruit of science and technology have the potential to make
impacts in multiple areas, and the fact that research and development (R&D) findings in one area
can be applied to others, it is important to make the functioning processes of innovation dynamic
while skillfully capturing R&D findings.
1 Science, Technology and Innovation (STI) comprises all spectrum of creating intellectual and cultural value based on
new knowledge from scientific discoveries and inventions, and technology advancement that expands thisinformation to create economic, social and public value4(2) Achievements and Challenges in 20 Years of Science and Technology Basic Plans
It’s been almost 20 years since the First Science and Technology Basic Plan (hereinafter “BasicPlan”) was developed in 1996 based on the Science and Technology Basic Law, enacted in 1995.
At the time the Science and Technology Basic Law was enacted, there was a demand for Japan
to contribute to addressing the issues facing mankind and shift our policy from following theWest’s lead in science and technology to challenging unexplored science and technology fields
ourselves, and to opening our own path to the future as a world frontrunner. With that said, in
Basic Plans to date, emphasis has been placed on strengthening policy actions in areas including
securing government R&D investments, reforming the R&D system (by enhancing post-doctorate
programs, developing competitive environments, etc.), strategically focusing R&D, consolidating
R&D facilities and equipment, and promoting international exchange and collaboration.
In terms of government R&D investments, clear target figures have been set since the First
Basic Plan. Subsequently, the Japanese R&D environment has been firmly established, withgrowing amounts of investment for 10 years, as well as growing numbers of researchers andarticles published. Japan has become increasingly competitive internationally, even as emerging
nations and other countries have gotten stronger in their science and technology endeavors, andas science and technology activity increases both in scale and complexity. We have done sothrough many types of initiatives, including focused investment in research areas of highimportance, development of research centers with world-class competitiveness and large-scale
research equipment, and the introduction and promotion of highly competitive human resource
management systems.
Meanwhile, with the changes in Japan’s international competition environment since the turnof the 21st century, there has been strong demand for R&D findings to be used in society, and forJapan to be more competitive and contribute further to social reform. In response to these changes,
the Basic Plan has also evolved by promoting industry and academia collaboration and interaction.
In the Fourth Basic Plan, the importance of innovation took the forefront, and the R&D focus wasdiverted from a science-and-technology-fields-based approach to a problem-solving approach.
With these developments, joint research between universities (including inter-university research
institutes; hereinafter the same), R&D institutions, and companies has steadily increased, as has
the numbers of patents held, and license permissions. Moreover, income for patents in universities
and R&D institutions has also increased.
In addition, in view of deploying STI to address various economic and social issues, newinitiatives for industry, academia, government, and relevant ministries to work together in R&D
and social implementations have been advanced, such as the Cross-ministerial Strategic
Innovation Promotion Program (SIP). Furthermore, in 2014, the Council for Science andTechnology Policy (CSTP), which oversees science and technology policy, was reorganized to
become the Council for Science, Technology and Innovation (CSTI), and has started new
approaches.
Thus, over the past 20 years, a concerted effort by the country as a whole in advancing science5and technology policy based on the Basic Plan continues to contribute to development in Japanand across the world. Several examples of science and technology that have either brought about
great lifestyle and economic change, or which could make changes in the future, have appeared.
The invention of blue light-emitting diodes (LEDs) has given rise to numerous lighting
applications, and the creation of human-induced pluripotent stem (iPS) cells has developed into
applications in regenerative medicine. There have also been contributions to addressing global
issues, such as infectious diseases. Through it all, the fact that Japan has the world's second-mostNobel Prize laureates in the natural sciences in the 21st century is a testament to our great presencein science and technology in the world.
Despite these achievements, there are several issues of concern. As the first point to beaddressed, Japanese STI has seen its foundation rapidly weakened in recent years. Our research
papers are dropping in international ranking, both in quantitative and qualitative terms. There
have been delays in building an international research network, and Japanese science andtechnology activity is regrettably starting to fall behind the world leaders. Additionally, in termsof human resources in STI, no environment is yet in place in which young researchers can fully
demonstrate their abilities, and many of our high-capability students are hesitant to pursue
doctoral courses. Because Japan’s young population is expected to shrink even further, solving
such human resource problems is a pressing issue for STI.
It is also noteworthy that industry–academia collaboration has yet to reach full maturity. Indeed,much of the current industry–academia collaboration is on a small scale, and there is still little
mobility for researchers across organizations and sectors. Startup companies and the like have yet
to reach the point of structurally transforming Japanese industry. Therefore, we need to clearlyrecognize that the mechanism for filling the gap between company needs and the knowledge andtechnology generated by universities has not fully performed its function to date. This is leading
to deficiencies in Japan’s ability to innovate through science and technology.
In addition, due to the Great East Japan Earthquake and the followed nuclear power incident,
as well as the recent case of research fraud and other incidents, confidence in Japanese scienceand technology, as well as our researchers and technical experts, is falling. Thus, the importanceof reconsidering the relationship between S&T and society, as well as promoting STI together
with the various stakeholders of society, is increasing.
Government R&D investment targets indicated in the Basic Plans have not been met since theSecond Basic Plan, and government R&D investment growth has stagnated the last 10 or so years
compared to the world’s leading nations.
Various systematic factors are in play in the background of the issues mentioned above.
Universities, the main proponent in STI activity, are lagging behind in terms of management andhuman resource management systems, and other organizational reform. Furthermore, there arebarriers between organizations, between industry and academia, between ministries, between
research fields, and more. These points must be swiftly improved.
As has been described to this point, Japan’s world standing in science and technology is falling6

as a whole, just as other countries are further strengthening their STI policies. In addition, theshift from S&T policy to STI policy as given in the Fourth Basic Plan may not be progressing
sufficiently. These issues must be addressed with bold reforms that recognize the strong pressureof necessity and urgency. In the interest of extracting the most out of the results of the R&D
investments of the past 20 years, it is particularly important to reform the systems for addressing
the various issues related to human resources in STI, and to reorganize and enhance the functionof universities and National R&D Institutes.
(3) Target National Profile
STI policy is one of major national policies for the economy, society, and the public that will
enable our country to shape a better future. Therefore, it is essential to policy promotion that thepolicies clearly present what kind of country is to be achieved and share this profile with its
citizens.
In the Fifth Basic Plan, with the economy and society changing so rapidly and extensively, andwith the bevy of issues emerging both nationally and globally, the following four policy goals
have been defined as the Target National Profile to ensure sustainable development for Japan andthe world into the future. In the policy implementation phase, the Japan Revitalization Strategy
will be promoted in line with the other major policies for the economy, national security,
diplomatic relations, and education, with aims to achieve this national profile to its fullest extent.
 Sustainable growth and self-sustaining regional development
Economic growth and job creation are the core supporting our national development. As such,
Japan will strive to increase production to revitalize regional communities and society as a wholeand create adequate jobs domestically, as well as to achieve sustained improvement in economic
strength.
 Ensure safety and security for our nation and its citizens and a high-quality, prosperous way oflife
To protect citizen lives and property and to help them achieve prosperity is the mission of astate. Given this, Japan will aim to ensure the safety of our nation and citizens, and to guarantee
citizens’ richness in minds and high-quality way of life.
 Address global challenges and contribute to global development
Japan must continue to be the country that constantly contributes to the advancement ofmankind. Thus, Japan will aim to proactively apply our STI ability to responding to global issues
and improving the quality of life in developing countries. We will also strive to actively contributeto sustainable world growth.
 Sustainable creation of intellectual assets
Achievement of the national profile described in items 1) to 3) is contingent upon Japan as a7nation having a high level of STI. Thus, Japan will aim to ceaselessly ensure excellence inknowledge creation in diverse fields, and to promptly use the results in society to create economic,
social, and public value.
(4) Basic Principles
 Four pillars of the Fifth Science and Technology Basic Plan
In promoting STI policy to achieve the Target National Profile, both the ability to be visionary
and strategic in predicting what will come, and acting strategically, as well as the ability tomobilize diversity and flexibility in responding appropriately to any changes, will be stressed inthis era of drastic change.
Currently, Japanese STI activity is hampered by various barriers and is often domesticallyoriented, and is thus unable to explore its full potential. Based on this, the Basic Plan will guide
Japan toward becoming “the most innovation-friendly country in the world.” Japan will achieve
this by having all constituents compete and collaborate in international open innovation systems
and by building a framework allowing each constituent to fully mobilize their abilities andcompetencies, across all fields of science, including humanities and social sciences, to create arich variety of Japan-led innovation.
Based on this approach, the following four initiatives will be positioned as policy pillars of theFifth Basic Plan and they will be strongly promoted.
i)

Acting to create new value for the development of future industry and social transformation
In this era of drastic change, for Japan to remain competitive and strong in the future, it iscritical that we ascertain domestic and international trends despite uncertain prospects and act
strategically with vision to create future industries and pursue social transformation.
Therefore, Japan will be acting proactively to be in a position to lead the era of drastic change
by initiating disruptive innovation. Furthermore, we will enhance our efforts in building aframework aimed at creating prosperity for citizens. This will involve sharing the value of a“Super Smart Society,” the shape for our future society, supported by the major trend of times
such as advancement of ICT, networks, and other enabling technologies in which new values andservices will be continuously generated.
ii) Addressing economic and social challenges
With the economic and social structure changing daily, appropriate preemptive action
addressing various emerging issues is imperative to ensure sustainable development in Japan andworldwide. Japan will be addressing these challenges by selecting the key national policy issues,
and acting comprehensively and coherently on the basis of the Target National Profile.
iii) Reinforcing the “Fundamentals” for STI
To respond appropriately to the various possible future changes through STI, it is essential tostrengthen the foundations of STI, namely 1) the abilities of the researchers at the core of STI, 2)

8the academic and basic research needed for ensuring excellence and diversity in knowledge
creation at the source of innovation, and 3) funding to support all STI activity. To do so, initiatives
for strengthening these foundations will be advanced strongly. These will focus on reform of
universities’ function and strengthening of their management capacity, along with training andcareer advancement for younger researchers, who will be the ones to lead us in an era of uncertain
prospects.
iv) Building a systemic virtuous cycle of human resources, knowledge, and capital for innovation
Japan’s future competitiveness is contingent upon the utilization of its human resources,
knowledge and capital domestically and abroad, the creation of new value, and the prompt
implementation of these new values in society as part of the progressing global initiatives for open
innovation. To bring this about, an innovation system will be built to ensure the mobility of humanresources, knowledge, and capital beyond all kinds of barriers, and keep Japan at the leading edgeof worldwide innovation. This will be achieved through building effective collaboration between
companies, universities, and public research institutions, and by both creating and strengthening
venture businesses.
In advancing these four initiatives, it will be essential to work in coordination with science andtechnology diplomacy, and to act strategically in an international context.
STI activity has recently been expanded past national borders. In this context, questions related
to how well an international research network can be established and whether a framework thatwill promptly and effectively utilize intellectual resources across the globe can be built will havea great impact on Japan’s international competitiveness. Amidst the great ongoing changes in theinternational environment, Japan needs to raise its international profile by utilizing its ability in
STI and by demonstrating leadership in the pursuit of common interests shared by Japan and theworld.
Given all this, it is important in the promotion of STI policy for Japan to always take the global
perspective into consideration and act strategically in its international collaboration. In this way,
Japan will work to bolster global brain circulation and position a framework capable ofdisseminating Japan's science and technology to the world, within its science and technology
diplomatic strategy, as part of the visible face of the nation.
 Important issues in the promotion of the Science and Technology Basic Plan
Upon effectively and efficiently advancing the above four initiatives, it is essential to deepen
the relationships between STI and the various stakeholders of society, and to strengthen the abilityof these stakeholders to promote this STI.
i)

Deepening the relationship between STI and society
The perspectives of users with diverse values have become essential to the creation of

innovation. Additionally, the basic premise for STI to meet social expectations is that it must win

9the understanding, trust, and support of society. Thus, we will engage the various stakeholders ofsociety in dialogue and collaborate with them in promotion of STI activity.
ii) Enhancing capacity to promote STI
To advance STI effectively, it is essential for it to resonate with universities, public research
institutions, companies, and the other various main proponents involved in STI activity. The keys
are to flesh out initiatives aimed at strengthening the functions of each player and to expand
industry–academia–government partnerships.
In addition, with accelerating economic and social change, along with developing a 5-year
Basic Plan as the basic objectives for STI policy, every year a Comprehensive Strategy on Science,
Technology and Innovation (hereinafter “Comprehensive Strategy”) will be developed to facilitate
flexible policy management.
Furthermore, we will constantly be working to improve the quality of our policies bydetermining the status of key indicators and achievement levels for numerical targets. The key
indicators for determining the progress and outcomes of the Fifth Basic Plan are to be determined
separately, and numerical targets will be defined in this Basic Plan for items for which the situation
to be achieved must be, and can be, clarified quantitatively. Note that the numerical targets
described here are for determining progress toward achieving STI targets by the nation as a wholeand are not intended for unaltered use in evaluating individual institutions or researchers. The
government must take care not to let the pursuit of the target values in and of itself become thegoal, or to invite unwanted results or divergence from the original aims. Moreover, universities
and National R&D Institutes are required to proceed with initiatives to achieve visions thatleverage their individual strengths and characteristics based on the policy objectives and content
described in this Basic Plan. It is imperative that the collective actions of these institutions achieve
the numerical targets by the nation as a whole given in this Basic Plan, and that an environment
be built in which STI can proceed effectively.

10

Chapter 2 Acting to Create New Value for the Development of Future Industry andSocial Transformation
We have arrived at the era of drastic change where the process of creating knowledge and value
has changed considerably, and where the economic and social status quo, as well as industrial
structures, are rapidly changing. In such an age, so-called game-changing shifts are expected tooccur frequently, as new knowledge and ideas conceived in quick succession significantly impact
the competitiveness of organizations and countries.
The driving force of this trend is the rapid development of network connectivity and cyberspace
use that has accompanied the evolution of ICT. This development also indicates the overall
direction where Japan, as well as the global economy and society, is heading. We are now at astage where innovation is being generated in a variety of ways. Through the medium of theInternet, we are seeing the dramatic spread of the Internet of Things (IoT), in which objects or“things” are connected and have access to a variety of information, and the Internet of Everything(IoE), in which everything is connected to each other. New knowledge is created from the hugeamounts of data that are collected. Furthermore, from the linking and merging of different mattersthat has never been previously imagined, new products and services are conceived to match
consumer needs, thereby expanding markets instantly.
In order to create values and services that cannot be projected from the past and bring aboutchanges to the economy and society, a new approach is necessary—one which strikes out in a new
direction—in order to stimulate further challenges in addition to the initiatives that have been
pursued through the past Basic Plans.
In this era of drastic change, where predicting the future outlook is difficult, we can only getahead of the times through creating new game-changing knowledge and ideas. Toward this goal,
we will foster initiatives that boldly attempt new ventures and actively generate discontinuous
innovation.
Furthermore, in light of the rapid development trends of network connectivity and cyberspaceuse, we are proposing an ideal form for our future society, a “super smart society” where newvalues and services are continuously created in order to bring wealth to the people who make upsociety through initiatives that focus on actively using and applying cyberspace. Over the courseof this proposal, we will foster initiatives that are aimed at realizing the world’s first super smart
society.
(1) Fostering R&D and Human Resources that Boldly Challenges the Future
To foster and sustainably develop Japan's international competitiveness in a world where newknowledge and technology are produced on a daily basis, and then rolled out as economic or social
activities on a global scale, and in which the cores of competitiveness are undergoing changes, it
is essential for Japan to actively produce new value and be a leader in the transformations.
In particular, the process of setting the bar high, and boldly attempting to consistently create
unrivaled innovation without fear of failure, is important. New knowledge and technologies are11created by breaking out of the current customs and paradigms, continually challenging thefrontiers of our present knowledge and technology, which are the roots of social transformation,and by conducting trial social implementation. Thereafter, creating groundbreaking value fromsuch new knowledge and technologies is essential. Such value may have a major impact oncompetitive strength by completely changing the current rules of the competition.
To this purpose, in addition to conventional R&D, we will accelerate the creation of
discontinuous innovation by adopting mechanisms for stimulating efforts on R&D that placesemphasis on novel, unconventional ideas with economic and social impact. However, thesepolicies will not be possible without the cultivation of a variety of different ideas. Hence, we will
also provide opportunities for experimenting with ideas in the form of presenting R&D projects
to professionals possessing highly creative ideas and the ability to act toward the implementationof those ideas. In addition, we will work on fostering and securing human resources who caneffectively operate and manage projects while considering these features.
Based on all of the above, Japan will widely disseminate a suitable method for promoting“challenging” R&D in the R&D projects conducted by the government ministries. Concretely, thiswill involve introducing R&D management through project managers, granting opportunities toresearchers possessing new ideas by enhancing their authority, implementing an evaluation thatencourages research that may not necessarily have a high probability of yield (high-risk research)
but that can be expected to have a significant impact if successful, implementing a stage-gate
system for developing groundbreaking but highly risky research while confirming results at eachstage of progress, adopting an awards system that provides incentives to research based on novel
ideas, as well as efforts. Through such dissemination techniques, we will facilitate R&D thatwould not have been implemented within most conventional R&D projects, and encourage
researchers that are up to the challenge to play an active role.
In doing so, the following should be noted: “In high-risk R&D, failure is an indispensable partof the process; there is also value in pursuing the challenge itself.” Under this concept, it is clearly
also important to create a framework that will make full use of such failure going forward to thenext stage, or to solving other issues.
Moreover, we plan on devising ways to further develop and expand ImPACT (IMpulsing
PAradigm Change through Disruptive Technologies Program) R&D project. As a model case of“challenging” R&D project, we plan on extending similar schemes to the R&D projects under the
auspices of relevant government ministries.
Note that to be able to produce game changers from the knowledge arising from “challenging”
R&D, knowledge must be speedily converted into value. The role of venture businesses, inparticular, is extremely important for this conversion, and developing an environment where suchbusinesses can be created continually and flourish is vital.
(2) Realizing a World-leading “Super Smart Society” (Society 5.0)
In a world where ICT is evolving, and where the use and application of networks and IoT isadvancing, ICT is being leveraged to its fullest in the manufacturing sector, such as in Germany’s

12

“Industry 4.0,” the United States’ “Advanced Manufacturing Partnership,” and China’s “Made in
China 2025.” Such efforts to lead change in the so-called fourth industrial revolution are now
being laid out under government–private partnerships.
From here on, ICT is expected to further evolve so that “things,” which have so far functioned
separately, will be connected into “systems” using cyberspace. Furthermore, separate systems invarious fields will be able to coordinate and collaborate, widening the range of autonomy andautomation, and creating new value throughout society. This is expected to usher intransformational change in a broad range of industrial structures such as manufacturing, logistics,
sales, transportation, health and medical care, finance, and public services, thereby changing how
people work and live, and providing the impetus to realize an abundant and high quality of life
for citizens.
For Japan in particular, where the impact of the falling birth rate and aging population are
becoming more evident, these efforts to create intelligent “systems,” and their coordination andcollaboration that encompass various fields aside from the manufacturing industry, are extremely
important for shaping economic growth and a healthy, long-lived society, which will lead tofurther social transformation toward realizing an abundant society in which each individual can
live a vigorous life. Such endeavors will also spur the spreading of the fruits of science andtechnology, such as ICT, into fields and domains that have not been adequately reached until now,and is expected to enhance business strength and improve the quality of service.
Through an initiative merging the physical space (real world) and cyberspace by leveraging
ICT to its fullest, we are proposing an ideal form of our future society: a “super smart society”
that will bring wealth to the people. The series of initiatives geared toward realizing this ideal
society are now being further deepened and intensively promoted as “Society 5.0.” 2
 Super smart society (Society5.0)
A super smart society (Society 5.0) is characterized as follows:a society that is capable of providing the necessary goods and services to the people who needthem at the required time and in just the right amount; a society that is able to respond precisely
to a wide variety of social needs; a society in which all kinds of people can readily obtain highquality services, overcome differences of age, gender, region, and language, and live vigorousand comfortable lives.
Such a society is expected to, for example, develop and realize an environment in which humans
and robots and/or artificial intelligence (AI) coexist and work to improve quality of life by offering
finely differentiated customized services that meet diverse user needs. The society must also becapable of anticipating potential needs and providing services to support human activities,
resolving gaps in service due to differences in region, age, etc., and enabling anyone to be a service
provider.
2 So called to indicate the new society created by transformations led by scientific and technological innovation, after
hunter–gatherer society, agricultural society, industrial society, and information society.

13

In the future, with the progress in efforts toward a super smart society, one can anticipate not
only the integration of several systems such as energy, transportation, manufacturing, and service
but also the integration of organizational management functions such as personnel, accounting,and legal departments, as well as the work value implemented by people such as manpower andidea creation, which will further lead to the creation of value.
On the other hand, because of the high degree of merging between cyberspace and the realworld in a super smart society, the damage that cyber attacks can inflict on the real world will also
become increasingly severe and may seriously affect people’s lives, including their economic andsocial activities. Thus, achieving a higher level of “security as a quality feature” 3 is required.
Such efforts will serve as a source of industrial value and international competitiveness.
 Efforts required to realize a super smart society
In order to realize a super smart society, it is necessary to connect various “things” via a network,
create highly advanced systems out of these things, and integrate several diverse systems so thatthey can coordinate and collaborate with each other. This integration allows for a wide variety ofdata 4 to be collected, analyzed, and applied across all the coordinating and collaborating systems
in order to continuously produce new values and services.
However, it is not realistic to believe that a framework capable of enabling the coordinationand collaboration of all kinds of systems could be constructed right away. Working toward thisgoal, 11 systems 5 were identified and given priority for development in the 2015 Comprehensive
Strategy, based on the economic and social issues that require the strongest national efforts. By
increasing the sophistication of these individual systems, we will incrementally work toward theircoordination and collaboration.
First, through collaborations between industry, academia, and government, as well as therelevant ministries and agencies, initiatives for increasing the sophistication of these 11 systems
will be worked on steadily, based on the tasks that are set as performance goals for each individual
system. Successful cases and problematic issues will be shared across all the initiatives to allow
for cross-application over the systems.
Alongside the individual initiatives for the 11 systems, a common platform will be built instages that will allow for coordination and collaboration between multiple systems and that canbe used in various services, including new services that have not yet been anticipated. In particular,
because of their ability to accelerate coordination of multiple systems and improve industrial
competitiveness, “Intelligent Transport Systems,” “optimizing the energy value chain,” and “newmanufacturing systems” will be developed as core systems. Coordination and collaboration with
3 It means that safety and security are pre-installed as essential service quality features, which is expected byindividual customers and businesses users.
4 Web data, human activity data, 3D geographical data, transportation data, environmental observation data, production
and distribution data of manufacturing and agricultural produce, as well as others.
5 Optimizing the energy value chain, building a global environment information platform, maintenance and upgrade ofan efficient and effective infrastructure, attaining a resilient society against natural disasters, Intelligent Transport
Systems, new manufacturing systems, integrated material development systems, and promoting integrated community
care systems, hospitality systems, smart food chain systems, and smart production systems.

14the other systems such as “promoting integrated community care systems,” “smart food chain
systems,” and “smart production systems” will be worked on as soon as possible in order to create
new value in the economy and society.
However, based on the concept of security by design, it is important to promote these initiatives
while incorporating security into the overall system from the planning and design stage.
Based on all these factors, Japan, through collaborations between industry, academia, andgovernment, as well as the relevant ministries, will promote the initiatives necessary to build acommon platform (“super smart society [Society 5.0] service platform”) that effectively utilizes
the IoT toward realizing a super smart society.
Concretely, this will involve working on standardizing the interfaces, data formats, etc., in orderto facilitate the use of data between multiple systems, promote the development and trial
implementation of a highly sophisticated common security technology shared by all the systems,
and develop a function that will appropriately perform risk management.
In addition, for information provided by Japan’s common platform system, such as the threedimensional mapping and positioning data and meteorological data obtained from the QuasiZenith Satellite System, Data Integration and Analysis System (DIAS), and the Japanese Public
Key Infrastructure (JPKI), we will work on providing a framework and developing related
technologies that will enable the broad use of these data between systems.
Moreover, in order to respond to increasingly large-scale and complex systems, we plan on
intensifying the development of fundamental technologies for information and communication,and building up social measurement functions that will show their impact on the economy andsociety along with the social costs.
Furthermore, we plan on promoting a science that is instrumental in responding to issues
regarding the protection of personal information and the responsibility of manufacturers andservice providers in terms of strengthening ethical, legal, and social initiatives aimed at integrating
the humanities and science toward trial implementation in society. We will also promote
deregulation and system reforms that will allow the provision and operation of new services andthe creation of appropriate systems and regulations.
Alongside all these initiatives, we will also foster the R&D researchers needed to build thesuper smart society service platform, as well as those that will utilize this platform to create newvalue and service.
Note that these initiatives are also conducive to forming a healthy, long-lived society, which isa key issue in Japan. In this regard, CSTI is furthering cooperation and collaboration with the
Headquarters for Healthcare Policy, as well as with the ICT-related command center, the Strategic
Headquarters for the Promotion of an Advanced Information and Telecommunications Network
Society, and the National Center of Incident readiness and Strategy for Cybersecurity. Together
with laying the foundation for a cooperative network encompassing industry, academia, andgovernment, as well as with the relevant ministries for building the super smart society service
platform, CSTI prioritizes initiatives and sets detailed targets in its Comprehensive Strategy,
which is formulated each fiscal year.

15

(3) Enhancing Competitiveness and Consolidating Fundamental Technologies in a “Super Smart
Society”
 Initiatives required to enhance competitiveness
For Japan to maintain and strengthen its competitiveness in a super smart society, the country
will have to lead the world in implementing such initiatives in order to accumulate the necessary
knowledge and know-how for advancing intellectual property and international standardization.
Together with continuously enhancing functionality for the future platform to stimulate thecreation of new businesses that will respond suitably to diverse needs, it is also important toprovide unique and distinctive Japanese features to the platform and its individual systems inorder to establish their advantage.
To this purpose, Japan, through collaboration between industry, academia, and government, as
well as the relevant ministries, will implement intellectual property strategies and international
standardization related to technologies and interfaces for the realization of the super smart society
service platform.
Moreover, consolidating the fundamental technologies necessary to build the super smart
society service platform and further consolidating Japan’s technological strengths, which form thecore of new value creation in individual systems, are essential. The specific technological domains
and their corresponding promotion measures are presented in the next section.
In addition, through promoting exports of system packages verified to have achieved theirperformance goals, we can create new global businesses made in Japan, and turn the issues
troubling the nation, such as the falling birth rate and aging population, energy restrictions, andnatural disaster risks, into strengths.
At the same time, we will foster human resources that can use the super smart society service
platform to generate businesses that create new values and services, and build new businessmodels, as well as foster those who possess basic knowledge such as data analysis andprogramming, and who can use the fundamental technologies such as big data and AI in
discovering new issues and solving them.
 Strategic consolidation of fundamental technologiesi) Fundamental technologies necessary to build the super smart society service platform
The fundamental technologies necessary to build the super smart society service platform, inother words, the technologies concerned with distribution, processing, and accumulation of
information in cyberspace, are the essential technologies in forming our world-leading super smart
society and creating added value from big data.
Hence, Japan will speed up consolidation of the following fundamental technologies inparticular.
- Cybersecurity: technology that supports safe information and communication, considering thecharacteristics of the IoT, such as the long life cycles from design to disposal- IoT system architecture technology: technology that enables the modeling of hardware and16software as components, and the building and operating of large-scale systems- Big data analytics: technology deriving knowledge and value from large amounts of a wide
variety of data, including unstructured data
- AI: technology that supports IoT, big data analytics, and advanced communication- Device technology: technology that enables the high-speed, real-time processing of large
amounts of data with low power consumption- Network technology: technology that distributes growing amounts of data at high capacity andhigh speed- Edge computing: technology that enables increasing speed and diversification of real-timeprocessing at the actual system location, which is necessary for increasing the functionality of
IoT
In addition, since mathematical sciences is an inter-disciplinary scientific technology that
supports all these fundamental technologies, we will promote it together with strengthening
collaboration in R&D of each technology, and when fostering professional development.
ii) Fundamental technologies that are Japan’s strengths, which form the core of new value creation
By embedding components that make use Japan’s technological strengths in each system’selement, we can establish Japan’s advantage and make it possible for the system to create newvalue that meets the diverse needs of the economy and society in Japan and overseas.
Hence, Japan will consolidate the following fundamental technologies in particular, whichfunction as core technologies in the real world, for new value creation in individual systems.
- Robotics: technology expected to be used in various fields such as communication, social
service/work assistance, and manufacturing- Sensor technology: technology that collects information from humans and all kinds of “things”- Actuator technology: technology related to activating mechanism, drive, and control devices in
the real world, as well as the results of information processing and analysis obtained incyberspace- Biotechnology: technology transforming sensor and actuator technologies- Human interface technology: technology using augmented reality, affective engineering,neuroscience, etc.
- Material/nanotechnology: technology that leads to differentiated systems through enhanced
functionality of various components, such as innovative structural materials and new functional
materials- Light/quantum technology: technology that leads to differentiated systems through enhanced
functionalityofvariouscomponents,

such

as

innovative

measuring

techniques,information/energy transfer technology, and processing technology.
For the fundamental technologies given in i) and ii), since connecting several technologies
organically is expected to stimulate mutual technological development, such as the way
collaboration between AI and robotics is expected to bring about the enhancement of both AI
recognition and robot motor functions, sufficient attention must be paid to the connections

17

between and the integration of differentiated technologies.
iii) Principles on consolidating fundamental technology
To consolidate the fundamental technologies given in i) and ii), setting high performance targets
for each technology that consider the direction of change toward a super smart society from themedium- to long-term perspective of around 10 years into the future, and then working towardachieving these goals, is the key.
In working on these goals, building the framework for industry–academia–government
collaboration and for facilitating R&D is vital to actualizing smooth progress toward trial use of
the technology in society. In particular, it is important to move forward with R&D not in a linear
model, which begins from the basic research stage, advances to the development stage, and thenproceeds on to use in society, but instead in a spiral fashion, in which the development, use insociety, and basic research stages mutually stimulate each other. This will provide an environment
in which new science can be created and innovative technology can be produced, and wheredeveloping the technology into a practical application and commercialization can be worked on
simultaneously in parallel.
While going forward for R&D and human resource development with outstanding professionals,
knowledge and capital tapped from around the world, there is also a need to deeply work throughthe possible impact such technological developments will have on humans and society. In suchtechnology domains as AI and security, researchers from both social and natural sciences will
have to carry out integrated and actively collaborative R&D. In creating such an R&D
environment, an administrative structure that can flexibly manage projects will need to be set up
by gathering outstanding human resources from both inside and outside of Japan, and providingthem with eminent leadership.
For the key fundamental technologies, CSTI will formulate overall strategies based on theabovementioned contents, considering the perspective of all government ministries and agencies,
and lead in promoting effective and efficient R&D. To accomplish this, the state of progress of
R&D in each key technology domain will be evaluated to set priorities for use when going forward.
At the same time, CSTI will flexibly promote R&D, including appropriate revisions oftechnological domains and goals, in order to respond to changes in technological trends and theeconomy and society.

18Chapter 3 Addressing Economic and Social Challenges
The emerging domestic and global challenges facing Japan are becoming increasingly wideranging and complex. In order for Japan to fulfill its vision by realizing the stated goals of“sustainable growth and autonomous regional development,” “ensuring safety and security for our
nation and its citizens and a high-quality, prosperous way of life,” and “responding to global
challenges and contributing to global development,” it needs to mobilize STI and work strategicallyfor solutions to problems.
In light of this, from the various domestic and global challenges that are evident, we will identify
the most important policy themes—those judged to have the potential to make a strong contribution
to STI that lead to solutions that will help to realize our vision of Japan. In addition, we will present
the initiatives and technology challenges that are keys to resolving the identified policy themes. Witha focus on these initiatives and technology themes, industry, academia, and government (including
relevant government agencies) will collaborate in taking a streamlined approach to everything from
R&D to commercialization.
Furthermore, they will cooperate in this effort with a diversity of community stakeholders andmake best possible use of the Cross-ministerial Strategic Innovation Promotion Program (SIP),
which identifies issues by cutting across the traditional boundaries of government ministries anddisciplines. In doing this, it will be vital for the nation to make strategic use of intellectual property
and international standardization in order to rapidly convert the fruits of research into
commercialization and international deployment, and to improve competitiveness. At the same time,
it is also important for the government to reflect on the progress of recovery from the Great East
Japan Earthquake and other major disasters and continue working together with local governmentsin efforts to pursue STI that lead to new technologies and new industries for disaster-affected areas.
Still, economic and social conditions change from year to year. Therefore, while working toward
solving these technical challenges, the most important and urgent goals are liable to change. For thisreason, in pursing R&D to solve these challenges, we will set new points of focus and detailed goals
in the Comprehensive Strategy that is formulated each year, while remaining centered around thegoals of the Basic Plan.
In FY2020, the final year of the Basic Plan term, the Tokyo Olympic and Paralympic Games(hereinafter “Olympics”) will be held. The Olympics will be used to publicize and showcase thefruits of Japan’s STI within and beyond the country, as well as to stimulate international activity ofJapanese industry and foreign investment in Japan. Furthermore, the Olympics will be regarded as
an opportunity for establishing a virtuous economic cycle even beyond 2020.
With this vision, we will steadily pursue projects that contribute to Japanese STI and which canaccelerate efforts aimed at the Olympics, such as multilingual translation technologies that caneliminate the communication and mobility-related stress of tourists visiting Japan, and impressive
new image-related technologies—all the while encouraging the participation of companies in these
efforts.

19

(1) Sustainable Growth and Self-sustaining Regional Development
In order to achieve sustainable growth, Japan must now and in the future deal appropriately withthe spiraling social costs that it faces. For this, it is necessary to ensure stable supplies of energy,
resources, and food and to reduce our level of dependency on foreign suppliers for thesecommodities, as well as to achieve greater efficiency in all processes such as ensuring citizens long,
healthy lives, establishing a sustainable social security system, and maintaining and renewing
infrastructure. In addition, in order to promote the autonomous development of regional Japan, it isnecessary to revitalize local communities and preserve urban services. Furthermore, since improving
the competitiveness of industry is a key element for stimulating national economic growth andregional vitality, there is a need to spawn new businesses from the manufacturing; healthcare;
agriculture, forestry, and fisheries; and energy industries. Accordingly, on the basis of the three
viewpoints  to  below, we have set seven important policy challenges on which R&D efforts will
be focused.
 Ensuring stable energy, resources, and foodi) Ensuring stable energy and improving energy efficiency
Japan’s energy supply is based primarily on fossil fuels, the majority of which is imported. The
electricity supply is generated using fossil-fueled thermal, nuclear, and hydroelectric power sources.
However, since the shutdown of the country’s nuclear reactors following the Great East Japan
Earthquake, the shortfall in available electricity supplies has been made up primarily by a boost in
fossil-fueled thermal power generation. Although renewable energy has been promoted at a national
policy level in recent years, Japan’s energy supply structure is still very weak when viewed from aninternational perspective.
Given this situation, it is necessary to achieve a more stable energy supply and higher energy
utilization efficiency, with the aim of achieving an optimal energy mix, and with a view toward thefuture energy supply–demand structure. While promoting the advancement of current technology
and the adoption of leading-edge technology, we will strive to create innovative new technology.
More specifically, we will pursue R&D on more efficient energy efficiency technology in theindustrial, consumer (residential, commercial), and transportation (road vehicles, ships, aircraft)
sectors, and promote their diffusion. We will also pursue R&D aimed at increasing the efficiency
and reducing the cost of renewable energy and promoting its widespread adoption, such astechnology that enables more stable energy utilization by means of more advanced power grid
systems, the use of hydrogen fuel, and the use of energy storage technologies. On top of this, wewill pursue R&D aimed at higher efficiency fossil fuel utilization, and on making more effective useof nuclear energy through technology to improve nuclear safety and security, and to develop moreadvanced reactors. Furthermore, we will work on R&D aimed at establishing important energy
technologies for the future, such as innovative nuclear fusion and nuclear fuel cycle technologies.
ii) Ensuring stable resources and cyclical use
Japan relies on imports for the majority of its fossil fuels and rare earth metals, so restrictions and20

delays of import and export as well as price rises due to increasing demands have a direct impact on
the country’s economy and industry. The proper handling of increasing pollution and waste
generated by the mining and refinement of resources is also an urgent issue.
To address this challenge, while working to ensure a stable supply of resources, we will aim torealize a sustainable, lifecycle-based, recycling-oriented society with improved resource
productivity and recycling rates as well as reduced final waste disposal amount.
More specifically, we intend to pursue R&D on technologies for assessing the potential of
unconventional resources, for using those resources, and for the exploration and production ofseabed resources such as hydrothermal deposits in Japan’s territorial waters, while simultaneously
ensuring the conservation of marine environments. In addition, we will pursue R&D on technology
for resource saving and alternative material usages, on low-environmental impact refining
technologies, and on resource recovery, separation, and recycling. Furthermore, we will undertakeR&D on technologies for the production and utilization of fuels and chemicals from biomass andwaste, and on waste treatment technologies.
iii) Securing a stable food supply
In light of potential food shortages and changes in crop suitability due to the increasing global
population and global warming, securing a stable supply of food for the people of Japan is an urgent
challenge and also an important duty of the government. At the same time, if we look at the current
state of the agriculture, forestry, and fisheries industries, which are important for sustaining regional
economies, we immediately find that the decline and aging of the available labor force is rapidly
worsening. As a result, improving the productivity of these industries and revitalizing relatedindustries is also a serious issue, particularly in view of the Trans Pacific Partnership (TPP).
Accordingly, we intend to increase the number of new, willing workers, promote exports ofagricultural, forestry, and fisheries products and foodstuffs, and thereby increase food selfsufficiency.
More specifically, we will promote “smarter” agriculture that utilizes information andcommunications technology (ICT) and robot technology to achieve lower costs and large-scale
production. We also develop high-quality and high-yield agricultural, forestry, and fishery products
using advanced breeding technologies including new plant breeding techniques. In addition, we aim
to enhance the appeal of these industries by constructing new and more profitable business models.
We will also promote R&D on processing and distribution technologies, such as technologies topreserve freshness, with a focus on export markets.
 Achieving a sustainable society to handle hyper-aging, depopulation, etc.
i) Establishment of a society in which people enjoy long and healthy lives with world-leading
medical technology
As Japan has already become an ultra-aging society ahead of the rest of the world, the translationof Japan’s basic scientific research into efforts to promote the development of the world’s mostadvanced medical technology and the extension of healthy life expectancy through medical care that21

utilizes the results of these efforts is an issue, as is the need to ensure the sustainability of Japan’s
health care system. With these aims, through the efforts that will be made to develop new drugs,
medical device, and medical technology originating in Japan, it is hoped that improving industrial
competitiveness in the field of medical related industry will contribute to our nation’s economic
growth.
Accordingly, under the Headquarters for Healthcare Policy, and based on the Healthcare policy
and the Plan for Promotion of Medical Research and Development, we will steadily pursue R&D,
through the Japan Agency for Medical Research and Development (AMED), in the project for Drug
Discovery and Development, the project for Medical Device Development, the project for Japan
Translational and Clinical Research Core Centers, the Japan Regenerative Medicine Project, theJapan Genomic Medicine Project, the Japan Cancer Research Project, the Project for Psychiatric and
Neurological Disorders, the Emerging/Re-emerging Infectious Disease Project of Japan, and theRare/Intractable Disease Project of Japan.
In addition, Japanese medical technology and industrial competitiveness will be utilized in efforts
to combat global issues such as controlling infectious disease in partnership with various othercountries, and to play a leading role in making an international contribution that takes advantage of
our nation’s strengths.
Furthermore, in addition to adopting a medical identification number system for use in healthcarecollaboration and medical research, the establishment of medical ICT infrastructure through thedigitization and standardization of medical information and data, and promoting the collection andutilization of diagnostic information for use in examination, treatment, and medication uses, we will
actively promote cooperation on regional healthcare relationship. We will also establish anenvironment that enables greater utilization of data in the fields of medical and long-term care inorder to improve their quality, and to promote R&D that facilitates the use of data by private
healthcare providers.
ii) Building infrastructure for sustainable cities and regions
In view of the nation’s rapidly declining population and birthrate, and its aging of the population,
it is necessary not only to preserve living environments in urban and regional Japan by ensuring
public transport infrastructure that supports mobility for daily life, services for preventive, medical
and care, and commercial activities, but also to provide infrastructure that enables citizens of all
generations—young people, people engaged in child-rearing and care-giving, and the elderly—tofulfill their raison d’etre in the areas that they are accustomed to. It is also important to consider
these issues not only in relation to Japan. Instead: we should explore possibilities for collaborationand cooperation with other countries facing similar challenges.
Toward this end, we will work to make extensive use of ICT to build infrastructure that will help
shape a society in which people of all ages can live comfortable and active lives in the localities thatthey are accustomed to.
More specifically, we will utilize ICT to promote compact, functional urban planning, and thedevelopment of safe and efficient Intelligent Transport Systems that minimize the risk of traffic22

accidents and traffic congestion, and that are user-friendly to all. Through services for preventive,
medical and care, we will also work to support to be self-reliant for elderly people, including
dementia patients and to reduce the burdens faced by their caregivers. Furthermore, we will utilize
ICT infrastructure to establish regional comprehensive life care systems in order to promote healthand longevity for everyone, while also engaging in overseas collaborations and conducting
appropriate assessments of the system’s effectiveness from time to time.
iii) Extending service life for efficient, effective infrastructure
For public infrastructure to support the lives of citizens and their economic and social activities,
it is important to use ICT, robot technology, and other new technologies, and to efficiently maintainand upgrade these technologies, based on the goal of realizing a sustainable society.
Up until now, the element technologies for inspecting infrastructure, analyzing inspection results,
and conducting repairs and upgrades have been developed with the understanding that maintenanceand upgrades would be conducted whenever such actions were necessary. However, due to financial
and labor limitations, it will be necessary to optimize the implementation of infrastructure
maintenance and upgrades from now on.
This will require us to raise the standard of each of these element technologies further, attempt tocombine them optimally, and pursue their development as an asset management technology inaccordance with regional needs.
Additionally, by taking into account regional characteristics from the state of R&D andmaintaining a balance between the technology’s performance (degree of perfection) and its cost, we
will enhance the viability of developed technologies and present local government bodies withsystems that they can readily operate.
 Improving competitiveness in manufacturing and value creation
Manufacturing is an important pillar of the Japanese economy, but the competitive advantage thatJapan has enjoyed up to now is under threat from the low production costs of emerging economies
and the global strategies of major Western nations that are using their rapidly advancing ICT topursue aggressive national initiatives. In light of this situation, Japan needs to forge manufacturing
technologies that are capable of flexibly meeting increasingly diverse market needs by blending new
production technologies with ICT, as well as developing new business models (value creation) thatare capable of impressing and satisfying consumers.
To this end, we will use ICT to promote networking across entire supply chains, and apply “bigdata” analysis and AI technologies to analyze and make use of a comprehensive range of data on
everything from customer needs to product planning, design, production, distribution, sales, andmaintenance. This will allow us to pursue new forms of manufacturing and value creation that enable
the supply of products and services that deliver high levels of customer satisfaction. In doing all this,
we aim to empower small and medium-sized companies that support Japan’s manufacturing, as wellas enhance the competitiveness of the country’s materials industry.
More specifically, we will focus on further advancing production technology which is one of23

Japan’s main strengths, as well as pursuing the development of product planning that combines
goods and services, new design methods that anticipate latent needs, production technologies whichenables new methods of processing and assembly for meeting needs more flexibly, and thedevelopment of platforms for linking above-mentioned activities together. In addition, to empowersmall and medium-sized companies, we will promote the utilization of various supply chain data,
the employment of expertise of highly skilled engineers, and the use of more “intelligent” robots
and machine tools.
Utilizing computer and data science, we will also pursue the creation of innovative functional andstructural materials with dramatically shorter development lead time.
(2) Ensure Safety and Security for Our Nation and its Citizens and a High-quality, Prosperous Way
of Life
In order to ensure safety and security for citizens and a high-quality, prosperous way of life, it isnecessary to work toward disaster prevention, mitigation, and national resilience, as well as to ensure
comfortable living environments and occupational health for citizens. In addition to ensuring thesafety of Japan, it is essential to appropriately deal with changes in the national safety and security
situation and the occurrence of crime, terrorism, and cyber attacks. In view of these factors, wedefine the following four challenges as important policy issues and focal points for R&D.
 Addressing natural disasterJapan has been subjected on numerous occasions to the devastation from large-scale natural
disasters, such as earthquakes and tsunamis, flooding and landslides, and volcanic eruptions. A
massive natural disaster due to an earthquake along the Nankai Trough or directly below Tokyo isreported to be imminent. The occurrence of such a disaster would place the very existence of thenation in crisis. Given the frequent occurrence of various kinds of natural disaster, like the Great
East Japan Earthquake of 2011, the Hiroshima landslides and volcanic eruption of Mt. Ontake in2014, and the torrential flooding in the Kanto and Tohoku regions in 2015, it is very important toapply the lessons learned from such previous disasters to preparing for future large-scale natural
disasters.
Toward this goal, we aim to develop a resilient society by ensuring the safety and security of
citizens in the face of natural disasters.
More specifically, we will pursue R&D on technologies for constructing disaster-resistantinfrastructure; for predicting, sensing, and detecting the true nature of disasters; and for rapidly
assessing damage and assisting the safe evacuation of people, in order to minimize the devastation
caused by, and enable rapid recovery from, such disasters. We will also aim to combine and linkthese technologies in order to efficiently reduce risks, and to develop mechanisms that enable sharing
and application of disaster information in realtime.
 Ensuring food safety, living environments, and occupational health
Food safety is one of fundamental issues for protecting citizens’ health. While diversifying food24

production, processing, distribution, and consumption, it has become necessary to assess risks onfood more rapidly and effectively in order to ensure food safety, and appropriately to manage thoserisks.
For this purpose, we will pursue studies and accumulate scientific facts and knowledge related toregulatory affairs concerning hazardous pollutants (including radioactive substances), by
encouraging intensive research efforts to contribute accurate predictions, assessments, and decisions
on food safety managements. On the basis of sound scientific data, we will also promote research
aimed at formulating national standards and codes of practice for food producers (including thoserelated to food additives, agrochemical residues, contaminants and apparatus, containers andpackaging, etc.) and at improvement of food sanitation such businesses. In addition, as internationals
contribution, we will provide research findings not only to Japanese institutes but also to institutes
overseas.
In ensuring the safety and security of living environments, it is necessary to address fineparticulate matter (commonly referred to as PM2.5) air pollution, including cross-border pollution;
the impacts of chemical substance pollution on water, soil, and wildlife; and contamination byradioactive substances, such as those released after the Great East Japan Earthquake, which havehindered recovery efforts.
To do this, we will pursue the development of assessment and management technologies forunderstanding air pollution phenomena over wide areas using remote analysis techniques, forconserving healthy water cycles, soil environments, and ecosystems, for understanding dynamics ofradioactive substances in the environment, predicting their distribution, and developing effective
technologies for decontamination and volume reduction.
Since it is also important to assess the risks of the various kinds of chemical substances used indaily life (including nano-scale materials), we will pursue research aimed at more rapid andadvanced techniques for assessing health impacts on humans (including children) and measures toaddress the “sick house” syndrome, as a basis for the formulation and revision of regulations andguidelines. In addition, we will use research findings as basic data for setting the safety ratings ofchemical substances, while also working to make international contributions in this area.
At the same time, in workplaces prone to excessive stress due to changing workplace conditions
or overwork, it is necessary to ensure the safety and health of workers and create comfortable work
environments.
For this purpose, on the basis of a detailed grasp of workplace environments and accumulated
medical data, we will research the development of measures aimed at ensuring worker safety, mental
health, a good balance between work and healthcare, and prevention of occupational diseases
resulting from chemical exposure.
 Ensuring Cybersecurity
As the use of cyberspace has become an essential infrastructure for social and economic activities,
due to advances in ICT, personal computers as well as home electric appliances, automobiles, robots,
smart meters, and numerous kinds of other devices are increasingly connected to networks including25

the Internet. As a result, the “real world” and cyberspace have become highly integrated. For thisreason, ensuring the safety of cyberspace is more important than ever.
However, a wide variety of threats, from individuals defacing websites for fun, scams, the theftof confidential information, cyber attacks targeting critical information infrastructure, and evensuspected cyber attacks launched or supported by unfriendly certain governments, have proliferated
in recent years. These attacks have impacted the people’s lives and the economic and social activities,
and year by year the threats to Japan’s security have become growing. It is hard to say that there isa sufficient level of public awareness and knowledge of cybersecurity. However, regardless of thepeople’s degree of ICT literacy, the existing danger in a variety of settings is now evident.
In light of this, we are working to raise public awareness of the importance of ensuring
cybersecurity and to improve cybersecurity literacy, as well as human resources development in thisfield, as the cybersecurity experts are currently insufficient both in terms of quality and quantity.
Meanwhile, in order to protect the people’s lives and social and economic activities from the effectsof cyber attacks, we will also pursue R&D aimed at dealing with these continually evolving threats.
More specifically, regarding technologies for detecting and defending from cyber attacks, forenhancing authentication systems, for control system security, for encryption, for security in thefield of the Internet of Things (IoT), for verifying the authenticity of hardware, and for monitoring
and confirming system integrity in constructing and operating critical information infrastructure
systems, we will pursue the development and utilization of these technologies.
 Addressing national security issues
In view of the increasingly challenging environment surrounding national security, in order toensure the safety and security of the nation and its citizens, it is important to make use of Japan’s
many outstanding technological strengths. On the basis of the National Security Strategy (NSS), we
will pursue the R&D needed to meet the various security challenges facing Japan, including theestablishment of appropriate international systems of cooperation, through relevant government
agencies and with industry–academia–government collaboration.
In doing this, we will pursue R&D on technologies to help ensure Japan’s national security. This
will include fields where technologies addressing risks relating to the oceans, space, and cyberspace,
and where countering international terrorism and disasters, can make contributions.
Furthermore, it is important that, in addition to pursuing these R&D efforts, we also strive to grasp
science and technology trends from the perspective of safety and security, and in collaboration with
relevant government agencies.
(3) Addressing Global Challenges and Contributing to Global Development
To help find solutions to the global challenges facing humanity and strategically contribute to
global development, it is important for Japan to utilize its potential and actively get involved ininternational cooperation and collaboration efforts, so that it can help combat climate change,
declining biodiversity, food and resource shortages, and infectious diseases. With this goal in mind,
we have set the two goals below as important policy issues and focal points for R&D.

26

Furthermore, in seeking solutions to these and other global challenges, we will work to establish
collaborative relationships worldwide, taking into consideration the use of internationalorganizations such as the Organization for Economic Cooperation and Development (OECD), theUnited Nations (UN), and the Group on Earth Observations (GEO), and we will make strategic
efforts aimed at setting agendas, R&D, and commercialization.
In addition, through collaboration with international organizations, we will propose ways ofeffectively combining technologies in which Japan is predominant with plans relating tointernational and regional goals, such as the U.N.’s sustainable development goals (SDGs)
developed in 2015, based on objective, scientific grounds. Furthermore, the timely and appropriate
use of earth observation data obtained through the implementation of relevant R&D should be taken
into consideration to contribute to solving problems in the above-mentioned activities.
 Addressing global climate change
The major factor of global warming, one of the key global challenges, is considered to be
increasing emissions of anthropogenic greenhouse gases, and the climate changes resulting from thiswarming threaten to have serious economic and social impacts in the years ahead.
For this reason, we will aim to substantially reduce greenhouse gas emissions on a global scale
and will contribute to adapting to the impacts of climate change, not only in Japan but also
throughout the world.
More specifically, for monitoring climate change, we will pursue continuous observation of the
global environment using artificial satellites, radar, sensors, and others, the advancement ofprediction technologies using supercomputers, and thus work toward a better understanding ofclimate change mechanisms while also contributing to the establishment of the global earth
observation system. In addition, for mitigating climate change, we will promote R&D on
technologies for carbon dioxide capture and storage (CCS), and for computing and verifying
greenhouse gas emissions. We will also implement strategic plans for a radical reduction of such
emissions based on a long-term vision.
The Arctic region, where climate change occurs apparently, is attracting more and moreinternational attention, including interest in making use of the Northern Sea Route (NSR). Regarding
this, we are working on observation and research, including development of technology for Arctic
observations, and on predicting the possibility of navigating the NSR. Furthermore, for adapting to
the impacts of climate change, we are also pursuing R&D on technologies for predicting andassessing climate change impacts and for climate risk management. In addition, we aim to capture
information about the global environment in the form of “big data” and to develop the Global
Environment Information Platform for meeting the economic and social challenges arising fromclimate change, as well as pursue research in cooperation with stakeholders both in and outside
Japan, for example, under the Future Earth concept.
 Responding to biodiversity loss
Rich biodiversity and healthy ecosystems are important as “natural capital” that serves as the basis

27

for the continued existence of human society. In light of the global-scale reduction in biodiversityand deterioration of ecosystems in recent years, achieving coexistence with nature has become an
important goal, not just for Japan but also for the international community as a whole, and it is now
necessary to strive to prevent further biodiversity loss. Another challenge is the conservation andutilization of the secondary nature represented by areas of satochi-satoyama (community-based
natural landscapes). The declining level of direct human involvement with nature has resulted inchanges in their biodiversity and ecosystems, and the conservation and utilization of these areas arenecessary to help enhance the value of Japan’s national land.
Therefore, we are focusing efforts on biodiversity conservation through the pursuit of R&D on
technologies relating to the protection of endangered species, and the prevention of damage byinvasive alien species and the eradication of invasive alien species, and technologies for themonitoring, maintaining, and restoring ecosystems, including secondary nature zones. We are also
pursuing R&D on technologies for assessing the economic and social value of ecosystem services(including genetic resources) and “natural capital” and for sustainably managing and utilizing them,as well as on technologies for utilizing ecosystem functions for adaptation to climate change andother fields.
(4) Pioneering Strategically Important Frontiers
In addition to enhancing industrial competitiveness and addressing the above economic and social
challenges, (1) to (3), a range of science and technology to support the appropriate development,utilization, and management of the oceans and space serves as a firm foundation for Japan's
subsistence. At the same time, since such science and technology are assets of national strategic
importance that produce significant levels of additional value, such as by enabling Japan to earnadmiration and respect in the international community and promoting the scientific education of
citizens, it is necessary to continually enhance this asset based on a long-term perspective.
As a “oceanic state” that ranks as sixth in the world in terms of the size of the country’s exclusive
economic zone (EEZ), it is important that Japan strive steadily to improve its STI to a level befitting
this status. Some examples of marine-related science and technology efforts include technologies
for ocean surveys and observation—including areas of sea ice, deep seas, and below the seabed—
and technologies for contributing to sustainable development and utilization of the seas. This
includes marine resources (including biological resources), transportation, tourism, andenvironmental conservation, as well as technologies to help ensure the safety of the seas, and thescientific knowledge and fundamental technologies necessary to support all these efforts.
While space-related science and technology contributes to the common intellectual property ofhumanity and offers the potential to expand the frontiers of human activity, the growing international
importance of space for security and civilian applications makes it necessary for Japan to promote
its fundamental science and technology systematically in line with its space development andutilization efforts. Some examples of the areas in which Japan's space-related technology efforts arefocused are satellite positioning, satellite remote sensing, satellite communications and transmission,
space transport systems, space science and exploration, manned space activities, and assessing space28

conditions.
While engaged in ongoing collaboration with the Headquarters for Ocean Policy and the Strategic
Headquarters for Space Development in order to ensure coordination between the Basic Plan on
Ocean Policy and the Basic Plan on Space Policy, CSTI is pursuing initiatives aimed at developing
solutions to R&D challenges relating to the oceans and space.

29

Chapter 4 Reinforcing the “Fundamentals” for STI
In an era of drastic change, when prospects for the future are difficult to determine, achieving
sustainable development requires the promotion, as a nation, of core capacities that will enable it torespond with accuracy and flexibility when confronting any new challenges or situational shifts. To
this end, in addition to highly specialized knowledge, and together with the development andsecurement of human resources with innovative ideas and flexible ways of thinking not caught up
in the traps of convention or common sense, it is essential to continue to strengthen a foundation for
the generation of diversified and outstanding knowledge that will serve as a source of innovation.
Therefore, we are making efforts to thoroughly reinforce the human resources potential that
undergirds STI. In addition to the development and securement of highly trained personnel who will
generate new knowledge and values, and a diversified workforce that will accelerate the creation of
innovation, we seek to create environments that enable each and every individual to maximize hisor her contributions in the most appropriate settings, according to their own capabilities andmotivations. Moreover, in order to maximize the potential for the creation of innovation in Japan,
we will not only promote the success of diverse human resources in terms of their knowledge,
perspectives, and ideas but also facilitate the flow of personnel.
Additionally, in recent years, changes in the international competitive environment have seen an
increasing tendency in the business sector and elsewhere to seek short-term results, and theimportance of the role of universities and public research institutions in knowledge creation isincreasing. While making suitable provision for new trends such as open science, in addition toadvancing reforms and reinforcements toward the promotion of academic and basic researches, weseek also to strengthen the facilities and equipment that support R&D activities, including
information infrastructure.
Furthermore, we are promoting reforms to the funding models that support STI activities. In
particular, in order to more effectively and efficiently make use of government-backed funding, weare promoting the integration and reinforcement of organizational and research funding reforms foruniversities that will play an important role in the strengthening of these core capacities.
(1) Developing High-quality Human Resources
People drive STI. Despite increasing competition over the recruitment of highly trained personnel
around the world, Japan’s population of young people continues to decrease. Under thesecircumstances, improving the quality and exerting the capabilities of STI professionals are becoming
even more important.
However, the situation for STI professionals in Japan is critical, particularly the circumstancesfacing young researchers who play a vital role in these fields. Many, including some extremely
capable students, have become hesitant at being doctorates who are assumed to play core roles inknowledge production and other STI activities, and this represents a serious problem for ensuring
Japan’s continued STI capacity. For this reason, we will surely and swiftly promote initiatives todevelop and activate young researchers in universities and other research settings.

30

In conjunction, it is also important to provide continued encouragement in order to ensure that
STI professionals are able to play an active role suited to their particular strengths in a variety ofsocial settings. As industry, academia, and the government continue to promote STI activities, wewill promote the establishment of career paths, and the development and securement of humanresources for a variety of occupational sectors. In addition, with a view to improving the quality of
STI professionals, we plan to move forward with educational reform from the elementary andsecondary levels up to and including graduate school education, and will seek, moreover, to enhancelearning among adults.
Furthermore, in order to maximize the potential for the creation of innovation in Japan, in addition
to promoting the success of diverse human resources including women and foreign nationals, it will
be necessary to continue to promote the use of research outcomes in society and knowledge
integration in a global environment that facilitates the flow of personnel across fields, organizations,sectors, borders, and other barriers. The fact that these initiatives have not necessarily been sufficientup until now means that we must strengthen initiatives to recruit diversity and facilitate flows interms of personnel.
It is also worth noting that promoting professional development entails the importance foruniversities and other public research institutions to assume, as organizations, a keen sense of
responsibility to engage with the formation of career paths for the young researchers whom they
develop and employ. At the same time, PhD students, postdoctoral researchers, and other younger
employees themselves are also conscious of their role in forging their own career paths, and there isa need for them to develop their own abilities and to continue to exert their abilities in a variety ofsocial settings.
Through these initiatives, in Japan, we are continuously developing and securing diverse andtalented pool of professionals, and creating a society in which through their activities, STI
professionals can play an active role as knowledge professionals in a variety of sectors, both inacademia and in industry.
 Developing, securing and improving career prospects of human resources as intellectual
professionalsi) Developing and improving career prospects of young researchers
Postdoctoral researchers and other young researchers represent the backbone of STI. However,with opaque career paths for young researchers in universities and other sectors, their employment
situation is unstable, and measures taken thus far to enable young researchers to carry out theirresearch autonomously have been insufficient.
For this reason, in addition to clarifying the career paths for independent researchers who havecompleted their doctorates, up to and including university faculty members, we seek to provide anenvironment in which young researchers will be able to exert their capabilities and motivations to
the maximum according to the stage of their career.
In universities and public research institutions, there have been calls to expand the number ofposts without fixed terms for young researchers who have established impressive postdoctoral track31

records. In this regard, it is necessary to promote initiatives such as the introduction of an annual
salary system and cross-appointment system for senior researchers, the introduction of personnel
evaluations, and the introduction of reflection on and re-evaluation of the treatment of the results ofsuch evaluations, as well as the promotion of a shift toward fixed-term employment through externalfunding.
Additionally, at the same time, when hiring young researchers as candidates to become principal
investigators (PI), there have been demands that the assurance of permanent posts should bepremised on the introduction in principle of a tenure track system, or some other fair and highly
transparent hiring system that works along similar lines. In this regard, it is important that proper
assessment is given to considerations that include overseas experience, as well as the acquisition of
new skills and research achievements during this time, and the provision of opportunities forreceiving appropriate mentoring by more experienced researchers. At the national level, Japan is
promoting the construction of such hiring systems in its various institutions, while also making useof frameworks such as project performance evaluations by National R&D Institutes and the weighted
allocation of subsidies provided for the national universities.
In addition, Japan is promoting initiatives to enhance funding support in order to ensure that young
researchers will be able to enhance their research abilities and exert their capabilities and motivations
to the maximum extent. In particular, we seek to establish institutions and strengthen support foryouth in order to ensure that young researchers of the highest caliber will be able to be active inautonomous and open research environments while being employed in stable posts.
Furthermore, Japan is continuously promoting the reform of public funding from the perspectiveof developing and improving career prospects of young researchers. As a part of such efforts, on thebasis of the implementation of reforms to the personnel payroll system at national universities(hereinafter assumed to include inter-university research institutes), necessary measures are being
taken to move forward with examinations toward increasing the flexibility of direct cost
expenditures in order to enable personnel expenses, such as those for hiring PIs, to be met directlyfrom public funds.
Through these initiatives, first of all, we aim to increase the proportional representation of younger
faculty members in universities. Specifically, during the period of implementation of the Fifth Basic
Plan, we plan to increase the proportion of full-time university faculty less than 40 years old by 10%,and we also aim to bring the proportion of full-time university faculty less than 40 years old to 30%
or more on a nationwide level in the future.
ii) Developing and improving career prospects of various people in STI
In universities and other public research institutions, promoting the creation and social
implementation of high-level knowledge requires a diverse type of personnel, including program
managers in charge of the planning and administration of R&D projects, university researchadministrators (URAs) tasked with the overall management of research activities, technical support
staff who assist with research facilities and equipment, and technology transfer personnel anduniversity administrators. In addition, promoting the rapid and effective social implementation of32

knowledge in the corporate sector requires personnel to be in charge of management strategies suchas business model transformation and new business development, as well as the personnel to have ahigh level of expertise with regard to technology management and intellectual property. Suchpersonnel, while taking advantage of their respectively high levels of expertise, are essential to thecreation of environments in which people are able to perform to the best of their abilities.
However, qualitative and quantitative mismatches in terms of human resources can sometimes
occur between universities and the industrial sector, generating problems such as a dearth of
personnel to fill such occupations or capabilities on the part of individuals that have not been adapted
to a rapidly changing society.
For this reason, we are promoting initiatives to establish career paths for the diverse pool of STI
professionals, as well as the development and securement of personnel. At the national level, as wellas establishing a frame for the investigation of measures for the development of such diverse
personnel in industry, academia, and government, we are promoting undergraduate and graduate
school educational reform through collaboration by industry, academia, and government in order toensure that students and other will be able to gather a breadth of experience that will allow them toentertain the prospect of diverse career paths. In addition, we are moving forward with thedevelopment and utilization of a database of PhD professionals. Moreover, we are working toward
the further clarification of occupational requirements in terms of knowledge and skills for particularjobs, such as program managers, URA, and technical support personnel.
Furthermore, STI fields require support from the numerous engineers employed in the businesssector. In collaboration with the industrial and academic sectors, the Japanese government is not
only promoting educational reform with a view toward engineer development but is also encouraging
advancements in the development and securement of engineers in universities, colleges oftechnology, and Specialized Training Colleges, particularly in the information and communication
sector where the labor shortage is most significant. In addition, we are undertaking a review of theengineer certification system of professional engineers in line with current demands with a view
toward the promotion of its use in the industrial sector.
iii) Promoting reforms of graduate school education
Graduate school education has a large role in enhancing the quality of STI professionals. In
particular, it is required to train high level doctoral professionals under the cooperation amongindustry, academia, and government, so that they can think, act independently based on highly
specialized knowledge and ethical standards to create new knowledge and values, and play activeroles globally.
For this reason, the government will promote reforms of graduate school education in cooperation
with universities, industry, and other areas. Moreover, graduate schools with doctoral courses are
required to implement acts to guarantee the quality of doctoral degree recipients, develop
educational programs collaborating with industry, enhance the opportunities of experiences amonga wide variety of social places for faculties, and enhance the doctoral educations for researchers andengineers in the corporate sector. The government also promotes these actions.

33

In addition, economic supports for graduate school students, particularly in doctoral courses, will
be enhanced to attract outstanding students and adults both domestically and abroad.

Universities

and other public research institutions are required to expand the employment of doctoral students asteaching assistants and research assistants, and improve their treatments. The government tries toexpand fellowship, promoting the efforts of each institution. With these actions, the government andinstitutions concerned make efforts toward achieving early the goal, “to enable 20 percent of doctoral
students to receive an amount equivalent to their living expenses”, which the Third and Fourth Basic
Plans list.
Furthermore, to vigorously promote the reform of graduate school education, the government will
establish a system for the constitution of graduate schools, which have the highest level abilities of
education and research in the world and promote integrated education in disciplines that spandifferent fields, such as the fields of humanities and sciences, as well as leading-edge education infields in which Japan is strong.
In addition to focusing on initiatives such as those already mentioned, the government is also
formulating and moving forward with the plan that clearly indicates systematic and intensive
initiatives and the orientation of reform of graduate school education during the implementation
period of the Fifth Basic Plan.
iv) Development for the next generation of STI professionals
In order for Japan to improve its STI capacity on an ongoing basis, it is important to work toward
the development of the next generation of STI professionals and encourage the enhancement of theircapabilities and talent through education at the elementary, secondary, and university levels, and topromote the popularity of science and mathematics among children.
For this reason, we are promoting initiatives to foster talent among children and students whoshow excellent promise through efforts such as providing education that stimulates creativity andopportunities for learning sciences and mathematics. Japan, in addition to promoting improved
methods of learning and instruction in schools from the so-called “active learning” perspective(subjective, behavioral learning oriented toward the identification and solution of problems), is
supporting high schools and other educational institutions that carry out high-level teaching in theareas of math and science. In addition, we are working to enhance opportunities for motivated andcapable students to carry out research, as well as opportunities for students from home and abroadto develop their own abilities through diligent efforts. Furthermore, we are moving forward with the
integral reform of high school and university education, as well as university admissions.
In addition, we are promoting initiatives to heighten children’s interest and literacy in the sciences
and mathematics, as well as in science and technology. At the national level, Japan is not only
promoting education based in demand for learning and instruction that seeks to enhance problemsolving-based learning, and mathematics and science education but is also striving to enhanceadvanced scientific and mathematical education that makes full use of personnel with highly
specialized knowledge as well as personnel in the business world and the community.

34 Promoting diversity and career mobilityi) Improving women’s career prospects in STI
In order to incorporate a broad array of perspectives and excellent ideas in the stimulation of STI
activities, it will be essential to develop environments in which women have opportunities to exert
their abilities to the fullest and to continue to promote the advancement of their careers. Even though
representation of women is increasing within Japan’s research communities, it still remains at a low
level in comparison with other leading nations. Few female researchers participate at the decisionmaking level of organizations, and the numerical targets of the proportion of female researchersamong new hires listed in the Fourth Basic Plan (30% of the total in the natural sciences overall,
20% in the physical sciences, 15% in engineering, 30% in agriculture, and 30% in medicine,
dentistry and pharmacology combined) have yet to be achieved.
In order to overcome this state of affairs, we are accelerating efforts to ensure that women will bebetter able to participate in actively as researchers, engineers, or other members of the diversity ofhuman resources involved in STI. In this regard, it will be important to build transparent hiring
processes that ensure fair assessments regardless of sex. It is also important that there should be abroader awareness shared among stakeholders that new ways of working and active participation bya more diverse base of human resources would serve to stimulate STI activities.
At the national level and in universities, public research institutions, and the industrial sector, we
are making use of the Act on the Promotion of Success in Women’s Professional Lives andaccelerating efforts to set and publish targets for measures such as employment rate and proportion
recruited to leadership positions. In particular, with regard to the target values noted above for the
proportion of female researchers among new hires listed in the Fourth Basic Plan, in order to quickly
achieve these during the period of implementation of the Fifth Basic Plan, Japan is comprehensively
promoting all related initiatives through a concerted effort by industry, academia, and thegovernment.
In addition, Japan is not only undertaking workplace environmental improvements and providing
support in order to ensure that women will have the ability to balance their research careers with life
course events but is also working to share information and raise broad-based awareness of rolemodels and best practices. Moreover, we are promoting initiatives by universities and other publicresearch institutions actively engaged in the development and recruitment of female leaders as PIs,
and at the management level of organizational decision-making. Through these efforts, we are
striving to promote awareness with a focus on the management level of organizations.
In addition, Japan is promoting a national effort to deepen interest and understanding of scienceand technology career paths among female junior high and high school students, as well as theirparents, in order to enable the women of the next generation to have successful careers in connection
with STI. In addition, by strengthening cooperation among industry, academia, and government with
the involvement of relevant ministries, the business world, the academic community, and private
sector organizations, among other stakeholders, Japan is deepening the broader public understandingof women who are advancing their careers in the field of science and technology.

35ii) Enhancing the international research network structure
For Japan, working to build and strengthen international research networks represents an urgent
issue. In this context, breaking the inward-facing tendency of Japanese researchers and actively
promoting their success overseas will be essential not only for contributing to the acquisition of
global knowledge and the maintenance and enhancement of Japan’s global competitiveness but also
for securing prestige and a firm position in international research networks. At the same time,
continuing to bring in and foster the success of top-tier foreign researchers is important from theperspective of serving to further strengthen international research networks as well as to createknowledge and value based in a diverse array of perspectives and ideas.
For this reason, we are enhancing support for researchers desiring to go overseas to develop theirresearch activities at the global level. More specifically, Japan, in addition to promoting initiatives
such as the creation of inter-organizational networks with overseas research agencies with richpotential, participating in international joint research projects, dispatching researchers to research
institutions such as international agencies and overseas universities, and participating in the Global
Young Academy in universities and other public research institutions, is also promoting the creationof networks involving researchers dispatched overseas and foreign researchers who have had
experience living in Japan.
In addition, after returning to Japan, it is also important for researchers who are developing theirresearch activities at the global level to be able to carry out their research in independent
environments. Accordingly, there has been a demand in universities and other public research
institutions to devise recruitment and hiring processes that facilitate applications by researchers who
have returned from overseas, as well as for the introduction of evaluation measures for actively
assessing such overseas experiences.
Furthermore, we are enhancing efforts to bring in and establish outstanding foreign researchersand overseas students. Japan, in addition to striving to enhance and improve its treatment in orderto acquire world-class researchers, is also enhancing supports, including a scholarship system topromote the acceptance of overseas students and outstanding young researchers, such as foreign
postdoctoral researchers, while also working toward the enhancement of partnerships and exchanges
with emerging and developing nations in the fields of science, technology, and education.
Furthermore, to promote the acceptance and establishment of these outstanding foreign nationals,
we are moving forward a variety of initiatives, including providing living arrangements that include
educational and employment opportunities for researchers’ accompanying children and spouses,
establishing research environments with English-language research support in universities andpublic research institutions, and promoting the use of a point system for highly trained personnel.
iii) Promoting cross-field, cross-organization, and cross-sector mobility
Efforts are being undertaken to heighten the quality and capabilities of individuals through thefacilitation of the flow of personnel, as well as the social implementation of research outcomes andthe promotion of the creation of new knowledge through the integration and cross-pollination of avariety of knowledge perspectives. However, in Japan, there is an underlying way of thinking about

36the development and securement of personnel that is premised on long-term employment, and a great
many social systems are also established on the basis of this way of thinking. As a result, there has
not yet been any increase in the fluidity of personnel between fields, organizations, or sectors.
For this reason, we are aiming for personnel from all generations, from young researchers to seniorresearchers, to be able to play active roles in the most appropriate settings, and will build
mechanisms that facilitate the flow of STI professionals. In universities and other public research
institutions, in addition to demands for the active introduction of new compensation and hiring
systems such as annual salary and cross-appointment systems, it is also expected that there will bea broad implementation of initiatives that are not premised on internal advancement and that will
actively assess cross-organizational experiences at the time of recruitment.
Furthermore, in universities and other research institutions, it is important that exchanges of
personnel be promoted between all fields in the social sciences and humanities, as well as in thenatural sciences, and that systematic efforts be implemented to promote interdisciplinary and crossdisciplinary research. In addition, in order to promote cross-sector movements, it will also be
important to enhance opportunities to gain experience in external research institutions such as thosein the corporate sector from the student stage.
Japan, in addition to promoting initiatives to facilitate such personnel fluidity, is also propelling
efforts to develop a diverse labor pool of people involved in STI. Moreover, we are diversifying the
career paths for STI professionals and urging that the findings and capabilities being cultivated by
STI activities be utilized in a variety of social sectors, including not only research agencies but also
entrepreneurship and management, elementary and secondary education, and public service.
(2) Promoting Excellence in Knowledge Creation
To secure the creation of sustainable innovation, it will be essential to strengthen foundations for
producing excellent and diverse knowledge that will serve as a constant source of innovation. In thisregard, the implementation of research that emphasizes innovative ideas and flexible ways ofthinking that have not been caught up in the traps of convention or established thought will be
particularly important. However, growth in the numbers of articles and highly cited articles produced
in Japan remain inadequate, and the growth of international co-authored papers is also relatively
slow. This has given rise to concerns over the decline of Japan’s basic research potential.
For this reason, we have turned to the promotion of academic research that produces a variety ofcreative and high-quality results grounded in researchers’ intrinsic motivations, as well as basic
research driven by policy strategy and demand, and are engaged in reforms and enhancements while
giving consideration to how the two are balanced. Furthermore, for Japan to exert its presence in theworld, in addition to promoting interdisciplinary and integrated cross-disciplinary research andinternational joint research projects, we are forming a world-class research center that will attract
leading researchers from throughout Japan and around the world.
In addition, in implementing this initiative, we would also like to note the importance of preparing
an environment in which researchers can settle in to focus on their research, and of safeguarding the
production of results over the longer term, while also respecting organizational diversity and37

autonomy.
Furthermore, as well as responding proactively with efforts that include reinforcing informational
infrastructure and the establishment and sharing of an intellectual infrastructure, advanced researchfacilities and equipment, and technologies with common platforms to support such R&D activities,
we are also responding suitably to the global trend toward an “open science” that will lead to thecreation of innovation.
Through these above-mentioned efforts, the plan aims to reinforce the foundations of knowledge
from the perspectives of both quality and quantity. However, since it is difficult to evaluate the real
quality of scientific publications, we are focusing on the highly cited papers, which is commonlyused as a proxy indicator for quality assessment. While increasing the total number of papers
published from Japan, we are aiming for the proportion of the top 10% most-often cited papers
among the total number of papers from Japan to reach 10% during the fifth Basic Plan.
 Promoting academic and basic research as a source of innovationi) Reform and enhancements to promote academic research
In the midst of rapid expansion and innovation on the frontiers of knowledge, academic researchgrounded in researchers’ intrinsic motivations is not only creating new interdisciplinary andintegrated cross-disciplinary areas of research, it is also becoming a source of innovation, with thepotential for the creation of additional innovation across a wide range of fields.
For this reason, we are moving forward with reforms and enhancements from the perspectives ofchallenging minds, comprehensiveness, unification, and internationality toward the promotion ofacademic research, and are continuing to respond to the public mandate for academic research.
Specifically, with regard to Grants-in-Aid for Scientific Research (KAKENHI), we are reviewing
the screening system, research classifications and frameworks, as well as promoting the flexible andappropriate use of research funding. In this regard, in addition to working to promote international
joint research projects and initiatives, we are enhancing supports that will enable researchers toactively seek out and grapple with new challenges.
We are also moving forward with initiatives that will contribute to the formation of a researchbase in order to allow for researcher independence, and are engaging in other initiatives with an eye
toward the increased visualization and utilization of research outcomes, such as the construction ofa database that includes the results of KAKENHI supported projects. While pushing these reforms
and targeting a 30% adoption rate, we are working to enhance KAKENHI system.
In addition, to enhance their functionality as bases for human resources development and theopening up of new interdisciplinary fields and cross-disciplinary cooperation and integration, interuniversity research institutes and joint usage/research centers have seen calls for reform andenhancement through the re-affirmation of the significance and mission of each institute and center.
Japan, while also carrying out support tailored to each institute and center, is working strategicallyand systematically to promote large-scale academic research projects that will contribute to theestablishment of a nationwide joint usage/research system.

38ii) Reform and enhancements to promote strategic and on-demand basic research
From the viewpoint of further promoting cross-disciplinary cooperation and integration while
pioneering attempts in unexplored fields that have not been sufficiently addressed by the corporate
sector, basic research grounded in the strategies and demands of national policy, together withacademic research, represents a vital source of innovation. For this reason, Japan is working toenhance and strengthen basic research grounded in the strategies and demands of policy at thenational level.
In the implementation of basic research grounded in national policy, as well as engaging in reformoriented to the formulation of strategic targets grounded in objective evidence, we are working fromthe viewpoint of strengthening support for creative and innovative research in order to enhanceresearch opportunities across disciplinary and organizational lines, as well as to provide
opportunities for women and younger researchers to engage in path-breaking research.
In addition, we are working to enhance interdisciplinary and cross-disciplinary integrative
research. In this regard, the cooperation of relevant ministries and organizations is crucial.
Particularly in the interdisciplinary and integrated areas of medicine and other fields, we arestrengthening cooperation between related organizations, including the relevant ministries andfunding agencies, through institutional cooperation and collaboration with CSTI and the
Headquarters for Healthcare Policy.
iii) Promoting joint international research and forming world-class research centers
In order for Japan to be able to occupy an important position in global research networks and exert
its presence on the global stage, it is important not only to take a strategic approach to the promotionof international joint research but also to build a research center that can become a hub ofinternational intellectual circulation for the nation.
For this reason, Japan, while making use of inter-university research institutes and joint usage/
research centers, is working to enhance Japan-based international joint research. As a nation, we aremaking advances in such areas as planning the use and operation of facilities in Japan and overseas
for big science projects such as nuclear fusion, particle acceleration, and space development andutilization, as well as constructing mechanisms to stimulate international joint research with a varietyof overseas partners. In addition, in order to strengthen bilateral and multilateral collaboration andbuild mutually beneficial relationships, we are working to enhance fund-matching partnerships andthe operation of jointly managed overseas research centers while cooperating strategically withpartner nations with regard to the identification of common problems and similar matters.
Furthermore, Japan is working to form world-class research centers that can show high researchstandards and top-tier research environments in order to attract leading researchers from throughout
the nation and around the world. In addition, we are working to achieve the necessary expansion by
engaging with efforts at the Okinawa Institute of Science and Technology.
 Strategic enhancement of common-platform technology, facilities, equipment, and information
infrastructure supporting research and development activity

39

i)

Strategic development and use of common-platform technology and research equipment
Common-platform technologies and advanced research equipment that provides cross-sectional

support to a wide and diverse array of research areas and applied fields are important for contributing
to Japan’s varied scientific and technological developments, as well as for supporting key national
industries.
For this reason, Japan is promoting R&D relating to common platform technologies as well as
R&D relating to sciences with translational utility in multiple fields. In this regard, we are taking
steps to ensure that R&D gives adequate consideration to the needs of a broad user base. In addition,
Japan has taken users’ perspectives in account when promoting the development and diffusion ofadvanced research equipment.
ii) Maintenance, sharing, and networking of research facilities, equipment, and intellectual
infrastructure used by industry, academia, and government
Making cutting-edge and large-scale research facilities, as well as research equipment, available
for joint use by industry, academia, and government contributes to the expansion of R&D and is also
expected to result in the sustainable creation and acceleration of STI through the interaction of avaried and diverse pool of personnel passing through and utilizing such facilities and equipment.
For this reason, Japan, with regard to cutting-edge large-scale research facilities as based on the
Act on the Promotion of Public Utilization of the Specific Advanced Large Research Facilities is
working to provide appropriate support for initiatives including the construction, planned upgrading,and related technical development of institutions in order to facilitate broad-based collaboration
between industry, academia, and government. In addition, as a country, we are actively promoting
the joint use by industry, academia, and government of research facilities and equipment thatenvision utilization by a broad base of researchers in diverse areas and disciplines and in theindustrial sector, and are working to expand the facilities and equipment available for joint use at
the national level.
Furthermore, we are encouraging the creation of networks connecting these facilities andequipment and the sustainable improvement of systems for maintenance, operation, and joint use
based in organizational strategy and user perspectives in the context of these respective facilities andequipment. We are also working on public research institutions strategically and systematically todevelop intellectual infrastructure that includes the databases, measurement standards, andbiological and genetic resources that are essential to the stable and effective promotion of broad
R&D activities, as well as social and economic activities.
iii) Maintenance of university facilities and equipment, and enhancement of information
infrastructure
The research facilities and equipment that belong to universities and public research institutions
constitute vital infrastructure for supporting all STI activities. For this reason, while promoting theplanned updating and maintenance of research facilities and equipment in universities and publicresearch institutions and encouraging the implementation of joint initiatives by each institution

40

regarding updated and maintained facilities and equipment, Japan is also giving appropriate support
for ensuring systems that facilitate the efficient operation time and utilization of these resources at
the national level.
In particular, with regard to facilities at Japan’s national institutions of higher education(hereinafter meant to include educational entities incorporated as national universities, interuniversity research institutes, and national colleges of technology), we are moving forward with theplanned and focused development of such facilities through the provision of stable and ongoingsupport based on the facilities development plan formulated by Japan for the national institutions ofhigher education as a whole.
In the context of these institutions, we are also promoting the development of facilities that makeuse of strategic facilities management and a variety of financial resources. With regard to facilities
at incorporated R&D institutes, we are taking the necessary steps after considering the direction ofmaintenance for aging facilities, and while referencing the facilities development plan for national
institutions of higher education.
In addition, information infrastructure carries an essential functional role in the creation of STI,
and we are working toward the enhancement and smooth operation of information infrastructure,including strengthening the security functionality introduced into the latest ICT, the cloudconsolidation of information system resources, and the enhancement of research information
networks.
 Promotion of open science
Open science is a concept that encompasses open access by making research data into open data.
As open access is promoted, research outcomes will become available to all manner of users,
including both those in the academic community, the business world and private citizens. This will
result in the accelerated production of knowledge through new collaborations between researchers
in different organizations, as well as between specialized fields and across borders, thereby enabling
the production of new sources of value.
In addition, the move toward open data will result in the achievement of social transparency inthe research process and the broad utilization of research outcomes, with the additional prospect of
results that will encourage international exchange and public participation in such cooperative
endeavors. Furthermore, as interest grows with regard to new research strategies, such as theprovision of basic research data to the citizenry or the participation of citizens in research projects
as observers, the outlook seems positive for the expansion of participatory science (so-called citizen
science). In recent years, this concept of open science has demonstrated a rapid spread worldwide,
and it has been attracting attention as an important foundation for open innovation.
In light of such trends, Japan is partnering with other stakeholders, including funding agencies,
universities and other research institutes, as well as individual researchers, to build systems forpromoting open science. Japan’s basic stance on the promotion of open science is to expand theutilization of the outcomes of publicly funded research to the maximum extent possible. Even withregard to secondary research data as other research outcomes, we are making these available to the41

maximum extent possible while keeping in mind disciplinary differences in the methods of storingand sharing research data.
However, within research outcomes, certain data, such as data relating to national security or
which have been collected for commercial purposes, are regarded as being exempt from publicavailability. In addition, data access and utilization are subject to restrictions from the perspectiveof protecting personal privacy and deliverables valued as property. It is also important to maintainan awareness of disciplinary differences in the methods of storing and sharing research data and to
take note of matters such as the implementation of intellectual property regimes and open-and-close
strategies that are conscious of the national interest.
In addition, Japan is aiming to improve the productivity and efficiency of scientific and research
activities at the national level, as well as building platforms to share research outcomes and data
through appropriate international partnerships based on the rules of promoting open science.
(3) Strengthening Funding Reform
Government-backed funding includes fundamental funds including national university budget
subsidy, facilities improvement grants, financial aid to private educational institution, and otherpublic application funding allocated to promote research excellence and studies that contribute tospecific goals. All of these work together to support STI core activities, and their design can havesignificant impact in such areas as research capacity and research outcomes, organizational
management, and staff allocation.
In the future, it will be particularly necessary to enhance the functionality of national universities,
to which much of the funding open for public application is delivered, by promoting thestrengthening of governance, while simultaneously carrying out fundamental organizational reforms
and establishing environments that facilitate the effective and efficient use of various sources ofresearch funding.
For this reason, Japan is both promoting reforms to fundamental funds and funding open for public
application and promoting the integration of organizational reforms with reforms to governmental
research funding institutions, particularly national universities. In this regard, it will be important toremain cognizant of the optimal combination of fundamental funds and funding open for public
application.
 Fundamental funds reform
Fundamental funds that support research and education are essential if universities and R&D
institutes are to accomplish their respective missions. However, for universities, discretionary
expenses are decreasing as fundamental funds decrease year after year. This, coupled with otherfactors such as the delay of reforms to administration and hiring systems, has given rise to the
problem of a relative decline in research diversity and basic research capacity, as well as thedestabilization of employment for younger personnel. In addition, for R&D institutes, there has beena downward trend in national university budget subsidy and facilities improvement grants, which
are the fundamental funds supporting their activities, and problems are also beginning to appear for42

planned research activities and upgrades to facilities and equipment.
In light of these circumstances, in addition to encouraging efforts to diversify financial resources
and reform organizational foundations in order to help universities and R&D institutes fulfill theirroles properly, Japan is working to move forward with reforms that will enable the more efficientand effective operation of individual institutions with the securement of fundamental funds.
In this regard, Japan is implementing more closely tailored allocations of financial aid to private
educational institution and related funding in order to ensure that private universities will be better
able to engage in the high-quality education and research that takes advantage of the founding spirit
and features of private education.
 Reform of public funds
In Japan, public funds open for application include a system classified as “competitive grants”,
which are important funds that secure diversity within the R&D that takes place in Japan, and which
contribute to the formation of a competitive R&D environment. As a result, Japan seeks to maximize
the research capacity and research outcomes of competitive grants, aiming at the more effective andefficient use of these funds.
Specifically, we are working to reorganize the targeting of competitive grants on the basis ofpolicy objectives, to achieve a 30 percent allocation in principle concerning indirect costs for allcompetitive grants, and to ensure the thorough application of unified rules across all government
ministries, including the improvements to usability. In addition, with a view to expanded university
reforms, we are also making progress and taking necessary steps with regard to a review of thepossibility of implementing the introduction of indirect costs and usability improvements forresearch funding other than competitive grants. Furthermore, along with working to promote thesharing of research instruments while maintaining the premise of securing diversity in funding
agencies, we are carrying out a review and taking necessary steps toward facilitating inter-system
links that might enable seamless support tailored to research progress and the combined use ofmultiple sources of research funding from multiple institutions and ministries, as well as thefacilitation of multi-year research implementation.
In addition, with regard to expenditures intended to promote reforms in R&D systems such as
those in universities and other public research institutions, we are carrying out a review and taking
the necessary steps with regard to devise mechanisms that might secure the achievement of goals
after project completion.
 Integrated promotion of national university reform and research funding reform
An urgent issue for the promotion of STI is the effort needed to fundamentally reform andstrengthen the function of the national university organizations that constitute the chief players of
STI, and we are working toward the integrated promotion of reforms to both national universities
and the government’s research funding institutions.
Universities, themselves, are the chief drivers of higher education reform and carry the
responsibility for implementing reforms to research and education settings based on their own

43concepts. For this reason, Japan is working to stimulate competition between national universities
from a global viewpoint while providing special assistance to those that are working proactively toreform themselves while taking full advantage of their own distinct strengths and characteristics.
Specifically, from the third-phase medium-term target period, a new system for allocating andevaluating subsidies for the budget subsidy is being implemented in response to the orientation ofnational universities toward their own functional enhancements. Each university is being called on
to make the fullest use of their own distinct strengths and characteristics in order to build
mechanisms for their own improvement and future development.
In particular, there have been demands for initiatives that include the bold restructuring and selfrenewal of education and research organizations, enhancements to the leadership and management
strengths of school presidents, reform of personnel and payroll systems, and the development andsecurement of administrative personnel.
Furthermore, it will also be important to take measures to strengthen a financial base oriented tothe enhancement of administrative capacity, and there have been calls for initiatives such as theconstruction of cooperative frameworks and efforts at universities to promote dialogues withindustry that are aimed at the expansion of joint research with the corporate sector both in Japan andoverseas. Japan is working to assess the state of such initiatives and will reflect this appropriately inthe allocation of the budget subsidy.
In conjunction with such efforts, and particularly in order to markedly strengthen institutional andother efforts to diversify the financial resources and the organizational infrastructure of national
universities that have satisfied certain conditions to a degree that will enable them to respond to thefiercely competitive global environment, Japan is instituting a special exception within the national
university system, and will be carrying out a review and taking the necessary steps with regard toits support and assessment of these national universities.
Furthermore, in addition to clarifying the role of fundamental funds and public funds open for
application in universities, Japan is encouraging the effective and efficient use of funding in national
universities by distributing these funds properly and working toward their integrated and effective
use.

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Chapter 5 Establishing a Systemic Virtuous Cycle of Human Resources, Knowledge
and Capital for Innovation
Due to the increasing severity of global competition, the speed with which the fruits of scientificresearch can be commercially implemented and rendered profitable has become a very importanteconomic factor in today’s world. Consequently, the “open innovation” approach, which mobilizes
all available knowledge and technology within and outside an organization, offers great advantages.
While it is principally companies that bring innovation to fruition, much of the new knowledge
and values needed for innovation are now generated throughout the world by universities, national
research institutes, companies, and consumers. Today in Japan, however, the elements needed forinnovation such as human resources, knowledge, technology, and capital are unevenly distributed
between large corporations, small and medium-sized enterprises and startup companies, universities,
and national research institutes.
In order to expand the opportunities for Japan’s companies and entrepreneurs to utilize andrapidly commercialize these kinds of domestic and international intellectual resources, it is essential
to establish a society-wide mechanism that enables human resources, knowledge, and capital tocirculate between organizations, sectors, and even across international borders. Such a mechanism
should also allow the talents and capacities of individuals and organizations to be fully harnessed.
This kind of swift implementation can also ensure that Japan’s companies and entrepreneurs earn
profits, some of which can then be reinvested to strengthen the fundamental scientific and technicalresearch capacity of the country. In this way, an innovation system that is self-sustaining andbeneficial to all stakeholders can be developed.
In view of this, mechanisms that genuinely promote full-scale open innovation will bestrengthened. Companies, universities, and public research institutes will all be enhanced in theircompetitiveness and the fluidity of their human resources and knowledge will be increased such thatthe right person can quickly and flexibly utilize the appropriate resources in the right place. This
will also facilitate and promote industry–academia–government collaborations.
Furthermore, by creating and nurturing startup companies that have a sense of urgency and thepotential to tackle commercialization with agility and a willingness to take risks, by effectively
utilizing intellectual property throughout society, and by working to set up and revise systems forinnovation creation, we can cultivate a virtuous circle of human resources, knowledge, and capital,
as well as provide support for rapid and flexible commercialization. In addition, we will pursue
innovation from a global perspective, based on the understanding that the knowledge, technology,
needs, and business opportunities that serve as the starting points of innovation are spread out acrossa wide variety of locations, both in Japan and elsewhere around the world.
All these measures will further deepen our “National system of innovation” initiative, focused on
an ongoing reorganization of universities and public research institutes. They will also enhance theinternational competitiveness of Japan as a whole, effectively address overseas demand, andaccelerate economic growth.

45

(1) Enhancing Mechanisms for Promoting Open-innovation
Although it is principally companies that bring innovation to fruition, collaboration with
universities and public research institutes is essential to achieving rapid use of the fruits in society.
In order to promote open innovation on a global scale, it is important to build mechanisms that can
tap the unique strengths of individual companies, universities, and public research institutes, andthen synergistically combine and merge them.
With this aim, we will push to strengthen initiatives that promote open innovation by each of these
entities. We will also strive to increase the flexibility of the human resources, knowledge, and capitalthat are now unevenly distributed between large corporations, SMEs and startup companies,
universities, and public research institutes, and to set up environments conducive to the flourishingof innovation. In addition, we will establish “spaces for co-creation” for urging the human resources,
knowledge, and capital available to industry, academia, and government to come together andnurturing collaborative innovation between these sectors.
Through these initiatives, the goal is to increase the mobility of researchers between Japan’s
companies, universities, and public research institutes by 20% over the term of the Fifth Basic Plan.
Since the mobility of researchers from universities to companies and public research institutes has
been particularly low, we are aiming to double its level by the end of the term. At the same time, wewill work to increase the amount of funding received from industry for collaborative research with
universities and National R&D Institutes by 50%.
 Enhancing systems of promotion in companies, universities, and public research institutes
To increase Japan’s capacity for innovation, it is necessary to promote open innovation in theform of both inter-industry and industry–academia–government collaborations in order to enable
the effective utilization of new ideas, knowledge, and technology emerging within and outside
those organizations. To enable this, however, management reforms are required in each type ofthese organizations.
Based on an understanding that the science and technology of today are transforming businessmodels, companies in the industrial sphere are expected to take proactive measures to promote
open innovation and to invest their human resources, knowledge, and capital in order to pursue
serious collaborations with companies of different scale and different sectors, as well as with
universities and public research institutes. Because such open innovation will contribute to rapid
acquisition of the fruits of innovation, improving the skills of their researchers, etc.
Universities and public research institutes are required to attach great importance tocollaborative projects with companies and to enhance their ability to accurately grasp the needsof companies and propose solutions to them. On top of this, they need to work on reforming
management systems and setting up systematic structures to facilitate industry–academia–
government collaboration. This can be done, for example, by enabling appropriate managementof human resources, knowledge, capital, and other intellectual resources, as well as the risks
associated with research activities. It is important that, through such measures, these universities
and research institutes are internationally recognized as desirable research partners. For these46

institutions, the open innovation trend also presents valuable opportunities to enhance botheducation and research because it enables researchers to learn how industry recognizes and utilizes
technologies through their experience, and to discover new subjects for basic research in thecourse of tackling technical problems. It is therefore desirable for them to take a positive andactive approach to open innovation.
In accordance with their own characteristics, National R&D Institutes need to develop andstrengthen mechanisms for promoting joint and contract research efforts with companies.
Additionally, in order to convert technology “seeds” into innovative company activities, thoseinstitutes that should play intermediary functions need to establish management systems thatenable this role to be executed effectively.
In addition to providing incentives to universities and public research institutes that actively
engage in these kinds of industry–academia–government collaborations, the government will
promote open innovation activities in Japan by prioritizing the allocation of funds for theoperating expenses of national universities and the use of a framework for evaluating the businessperformance of National R&D Institutes.
Enhancing the role played by national universities and National R&D Institutes requires not
only funding from the government; various forms of financing such as from the private sector alsoneed to be ensured. Therefore, the government must examine and devise necessary ways toincrease incentives for the acquisition of external funding. To encourage greater funding bycompanies and with a view toward accelerating industry–academia–government collaboration,
there is a need to improve the financial transparency of participating institutions, as well as a needto enable overhead expenses to be met more flexibly. Companies and institutes are also expected
to collaborate more closely and fine-tune their partnerships based on their individual requirements.
The government will provide information to assist companies and institutes in tailoring their
specific collaborations.
Furthermore, to make open innovation a success, it will be increasingly necessary to collaborate
with foreign universities, public research institutes, and companies. It will also be useful to try
and share the experiences resulting from collaborating with foreign organizations with different
organizations. To that end, the government will conduct necessary investigations and develop
appropriate measures. It should be noted that technologies and information that are closely subject
to Japan’s industrial competitiveness and national security need to be appropriately managed at
the organizational level by all entities involved in such collaborations, in accordance the Unfair
Competition Prevention Law and the Foreign Exchange and Foreign Trade Control Law, alongwith other relevant laws, regulations, and/or guidelines.
 Inducing a virtuous cycle of human resources for innovation creation
Ultimately, it is people that give rise to innovation. The exchanges of people between
organizations and sectors enable the flow of various kinds of knowledge, resulting in crossstimulation and cross-fertilization, and merging into the creation of new value. We can observethat overseas, the movement of personnel between universities and companies, between

47

companies of different scale and different sectors, and the concurrent deployment of people inmultiple organizations, contributes to the rapid achievement of innovation. However, researchersand professionals engaged in business strategy in Japan are unevenly distributed between large
corporations, SMEs and startup companies, and universities. As a result, the movement of
personnel and the concurrent deployment of people across organizations and sectors is limited
due to the influence of employment practices. Thus, as a society, we have not been able to harness
the full capability of our human resources. This presents an obstacle to innovation creation.
In order to rapidly and effectively achieve innovation, it is necessary for the personnel of large
corporations, SMEs and startup companies, universities, and public research institutes to engage
in exchanges across different sectors, organizations, and disciplines. This will allow us to createa virtuous cycle within the whole of society that makes available the right people at the right place
and time.
In order that researchers and professionals engaged in business strategy are allowed to exercise
their abilities across organizations, universities, public research institutes, and other organizations
need to actively utilize systems that enable cross-appointment, internships, and employee loans,and to ensure that work experience in the corporate sector is actively evaluated. The government
will examine and devise necessary ways to offer incentives to individuals and organizations inorder to improve such mobility.
 Creating “spaces for co-creation” to concentrate human resources, knowledge, and capital
In order to create an environment conducive to sustainable innovation in which companies,
universities, and public research institutes actively collaborate and interact, it is necessary toestablish “spaces for co-creation” that concentrate human resources, knowledge, and capital fromindustry, academia, and government in order to facilitate collaborative innovation. Such spaces,
which include Tsukuba Science City and Kansai Science City, have already been formed in otherparts of Japan. In recent years, there has also been a shift from the linear development modelcharacterized by one-way progression (from basic research to applied research and thendevelopment research) to a more spiral-like model in which there is constant interaction between
those activities. Thus, establishing places that pull together diverse people and organizations cansubstantially increase the efficiency of rapid innovation creation.
In light of this, the government promotes the formation and utilization of such places, which
are centered around universities and public research institutes, based on the needs of large
corporations and SMEs and startup companies. To facilitate this, the government must not only
pursue new initiatives but also make effective use of previous initiatives and accumulated stocks,
as well as the resources of university-affiliated research institutes, university hospitals, etc. All
stakeholders should be prepared to take self-sustaining measures to achieve reform.
Furthermore, in order to enhance the function of such places, it is necessary to define
appropriate spheres of competition and cooperation, and to share common goals from the very
first stage of R&D, based on a broad vision of society’s needs. By creating and utilizing such48

places around universities and public research institutes, it will be possible to promotepartnerships among companies in fields in which companies alone cannot easily pursue tie-ups.
(2) Enhancing the Creation of SMEs and Startup Companies to Tackle New Business Opportunities
It is important to establish an environment that encourages companies to take risks and create
new value and also assists them in tackling a diversity of challenges successively. Generating
innovations capable of transforming technology “seeds” into new businesses in a short period oftime is naturally better suited to SMEs and startup companies that are quick and agile than to large
corporations that are restricted by their required minimum market size and slow decision-making
processes. Up to now, however, Japan has invested little in venture capital compared to othermajor industrialized nations. Additionally, due to the strong reluctance of highly talented people
to work in smaller startup companies, the number of startup companies has not been increasing,making it difficult to generate innovation by means of small and medium-sized companies.
For reasons such as this, Japan is transforming itself into a society that puts a high value on
SMEs and startup companies that strive to create new businesses, and the government iscommitted to helping startup companies without sacrificing the speed to establish new markets,by providing appropriate assistance in areas such as entrepreneur training, starting businesses, andcommercializing products and services, and providing continued support until the new companies
reach their growth phase. To facilitate this, it is vital to organically integrate and link venturerelated policies that have thus far proved insufficiently effective because they were deployed
separately by various different entities, and to develop a unified system across industry, academia,
and government aimed at sustainably and effectively supporting SMEs and startup companies.
Through these kinds of initiatives, we will increase the number of R&D-type startup companies.
At the same time, by diversifying exit strategies for such ventures, through mergers andacquisitions (M&As), for example, we will try to double the number of initial public offerings(IPOs) of R&D-type startup companies, which is currently available, within the term of the Fifth
Basic Plan..
 Cultivating an entrepreneurial mentality
In trying to strengthen the creation of startup companies, it is essential to cultivate professionals
with an entrepreneurial mentality. Although various measures aimed at achieving this have been
tried since the Second Basic Plan, they have not proved sufficiently effective. In addition, as aresult of traditional customs, social trust in startup companies and social tolerance of their failure
has been low in Japan. As a result, the culture of generating new industries and new kinds ofstartup companies has not flourished.
With this understanding, we will try to expand the human resource base of entrepreneuriallyminded people and increase the social acceptability and status of entrepreneurial activity andstartup companies through a variety of education and training initiatives at the elementary,
secondary, and high school levels.

49

More specifically, to foster the creativity and entrepreneurial spirit needed to generate newvalue among the highly talented elementary and secondary school students, who will become
future leaders, we will try to cultivate within them a positive attitude toward taking on challenges
and embracing different and diverse ideas and behaviors. We can do this by increasing
opportunities for young students to interact with entrepreneurs and by encouraging high school
and university students to experience cultural diversity through overseas student exchanges, sothat they can become more familiar with the concept of business startups and be more inspired toconsider the challenges of work in a startup company as a viable career option.
In addition to an education in entrepreneurship aimed at fostering entrepreneurial spirit,
universities should also afford opportunities for gatherings and meetings of students desiring tobecome entrepreneurs, and they should provide contacts and networks with successful
entrepreneurs and other supporters. The government will also promote the creation of new
businesses and support the training of globally competent professionals by sending young peopleof enterprising spirit to overseas hotspots where there is a high concentration of startup companies.
 Promoting the creation of startup companies at universities
It is hoped that academic startups (originating in universities) can contribute greatly toinnovation by generating new businesses and by turning university research findings into novel
products or services. However, the number of new ventures started by universities has slumped
in recent years. Some of the likely reasons behind this are the difficulties involved in procuring
funding, in searching for compatible technologies, and in cultivating sales channels both within
and beyond Japan, as well as a lack of personnel capable of supporting the business andoperational aspects of such ventures. In some cases, even if they get off the ground, some ventures
stall for operational reasons.
To address these issues, the government is trying to improve support for academic startups.
Specifically, it will promote, from before the initiation of startup, greater integration between
R&D support for transforming the innovative technologies possessed by universities into new
products, as well as business training delivered by active business people such as entrepreneurs
with expertise and experience with commercialization and startups. In addition, we will work toestablish “spaces for co-creation” where universities and companies can jointly nurture venture
possibilities, and to create a framework aimed at accelerating the process of cultivating academic
startups. In this process, the joint research findings produced by universities and companies canbe utilized to help create and nurture startup ventures, and the partnerships between startup
companies originating from universities or public research institutes and large corporations will
be strengthened. Furthermore, the government will also encourage national universities to makeequity investments in companies that support academic startups.
 Creating environments conducive to new businessIn order to revitalize startup companies, it is important to establish a systemic virtuous cycle ofventure creation. In such a cycle, startup companies grow through funding provided by investors

50

and venture capitalists with management and business support, and the invested funds are earned
back by investors. This process further stimulates the flow of personnel, funding, and businesssupport to other startup companies. Compared to other major industrialized nations, however,SMEs and startup companies in Japan receive only a small fraction of the R&D funds provided
by government, which means that they are not currently given sufficient opportunity to achieve
their potential. The number of startup companies that result in IPOs is also low, and there is a lackof diversity in available exit strategies for entrepreneurs, e.g., by means of M&As.
In light of this, we should aim at diversifying exit strategies after startup, through M&As orother means. We should also aim at establishing a virtuous cycle for the flow of personnel,
knowledge, and funds through facilitating repeated ventures and supporting startup companies
with business and financial resources by experienced startup founders and business managers.
Thus we should provide greater opportunity for serial entrepreneurs and angel investors.
The government will promote initiatives to make available R&D and business support, as wellas support for launching R&D-type ventures, that fit the needs of SMEs and startup companies bymaking use of local and international venture capitalists and the expert knowledge of corporate
professionals with a wealth of expertise in commercialization, such as business planning,marketing, and cultivating sales channels. In addition, we will promote partnerships between
companies so that a company can promote the establishment of spinoff and “carve-out” ventures
based on technologies and ideas that it has not yet commercialized.
Furthermore, to further invigorate the environment for investment in startup companies, as wellas to train venture capitalists with special expertise in new fields of technology and create startup
ventures on a global scale, the government will strive to implement systematic improvements to
expand “angel” investments, to encourage large corporations to invest in startup companies, andto promote the supply of risk money utilizing various funding methods.
 Helping initial demand and endorsing the trustworthiness of new products and services
When a small or medium-sized startup company launches a new business in which it provides
a state-of-the-art technology or service, cultivating a market is a big challenge. For this reason,
the government needs to devise effective measures from the demand side standpoint in order tohelp address this demand issue. This can be done by stimulating initial demand via “pump priming”
the market, by certifying the effectiveness of the new product or service and documenting its
performance, and by supporting efforts to cultivate sales channels. Another important way to help
increase the market’s trust in SMEs and startup companies and thus support their businessactivities is by implementing an award system for SMEs and startup companies and by actively
supporting their R&D.
With these aims, the government will promote greater use of tender systems that take into
account technological sophistication (namely, a “comprehensive evaluation bid system”) for the
procurement of products utilizing new technologies, while taking care to always ensuretransparency and public accountability. It will also aim and devise necessary ways to expand
opportunities for participation in tenders by SMEs and startup companies that contribute to51

technological innovation. To facilitate tender participation even further, the government will
streamline application procedures and other bureaucratic hurdles. This can be done, for example,
by developing systems that enable startups to easily check comprehensive tender information ofeach government department. Additionally, to improve public perception of startup ventures, wewill publish lists of companies that have received government support and enrich an award system
to actively support startup activities.
(3) Strategic Use of International Intellectual Property and Standardization
With the globalization of corporate activity and deepening of open innovation, open and closed
strategies that appropriately use both R&D findings that should be protected by intellectual
property (IP) rights and findings that are better protected as trade secrets have become
increasingly important. To substantially enhance the quality of IP management from the viewpointof increasing industrial competitiveness and developing science and technology, it is especiallyvital that companies not just make use of their own intellectual and technological assets but also
incorporate the use of other companies’ IP into their business models and devise IP strategies(including international standardization and trade secrets) that maximize value for themselves.
Therefore, in the area of IP assets and standardization strategies, we will aim not merely at
acquiring rights and achieving standardization but also at utilizing IP as an essential part ofbusiness strategies, by identifying technologies that should be protected and making appropriate
use of trade secrets. To help maximize the value of IP possessed by companies, universities, etc.,
we will promote new open innovations by raising awareness of IP and pursuing standardization
among these organizations, and by promoting collaborative use of patents. To promote IP andstandardization strategies, CSTI will work with the Intellectual Property Strategy Headquarters.
 Promoting use of IP assets in innovation creation
In IP strategies, the creation, use, and protection of the IP are all closely related, but it is in theapplication of IP that its value is demonstrated. In many cases, however, patents that represent
R&D findings do not lead to commercialization, so it is important that IP be utilized more indeveloping innovations.
There is an increasing degree of collaboration between industry and academia in Japan, butmany of the technology “seeds” possessed by universities are concentrated at the basic research
stage and few are mature enough to allow companies to consider commercializing them.
Furthermore, there are still many issues affecting technological intermediation forcommercialization, such as the attitude differences between the industrial sector and universities
with respect to the importance of joint patent applications and the protection of IP assets.
Given these realities, we will promote initiatives for generating innovation through theutilization of IP assets currently scattered across universities and companies. In addition to
identifying the needs of small and medium-sized companies and then matching them with IP assets
and other technology “seeds” held by large corporations and universities, we will raise awarenessof patent applications and promote the use of IP assets among small and medium-sized companies

52

by deploying personnel to support commercialization and intermediation. In this way, we aim toincrease the proportion of patent applications made by small and medium-sized companies to 15%(of all Japanese patent applications) by the end of the Fifth Basic Plan term. By substantially
improving and strengthening Japan’s patent examination system, we will also enable fasteracquisition of IP rights. Furthermore, to convert R&D findings in Japan to commercial
implementations as efficiently as possible, we will examine IP management in the country’s R&D
projects and ensure that it is thoroughly implemented in accordance with the characteristics ofeach project.
To promote the use of the IP assets of universities, it is important that the universities
themselves formulate their IP strategies and independently implement IP management inaccordance with them. The government can support these efforts. Through such initiatives, we
aim to increase the number of license agreements on university patents by 50% over the term of
the Fifth Basic Plan.
 Accelerating strategic international standardization and enhancing related support systems
In fields associated with social systems that have huge economic ripple effects and fields ofleading-edge technology in which global competition is increasingly severe, an agile and precise
international standardization strategy that is coordinated worldwide is very important. This isbecause delays in meeting international standards lead directly to reduced competitiveness andloss of market share. Where standardization by an existing industry organization is difficult—such as in the case of technology that straddles multiple fields, or leading-edge technology ofsmall and medium-sized companies with the potential to acquire significant global market share—
it is necessary for the government to transcend conventional industry boundaries in order topromote appropriate initiatives.
Accordingly, in order to quickly identify important technologies with which Japanesecompanies can demonstrate superiority in the field of promising global market, and promote theirinternational standardization and market penetration, the government will continue to promotecollaborations with universities and public research institutes and comprehensively support theacquisition of international standards from the R&D stage. In accordance with the evolution of
the Internet of Things (IoT), the government promotes initiatives for their international
standardization as well as supports to establish and verify essential technologies in relevant
technical fields.
Furthermore, to accelerate the standardization of outstanding technologies and products
developed by small and medium-sized companies, the governmental will establish acomprehensive support system. This system will extend from the discovery of a project to theformulation of standards and certification, and will operate in collaboration with a wide range ofstakeholders, such as local governments, industry support bodies, certification bodies, and otherrelevant organizations. On top of this, through an industry–academia–government collaboration,
the government will implement education and training to nurture professionals to takeresponsibility for international standardization in the future.

53

(4) Reviewing and Improving the Regulatory Environment for Innovation
As global competition becomes more intense, how quickly knowledge and technology, thesources of innovation, can be converted into a viable business, and whether there are social
mechanisms that enable this commercialization process, are key elements in determining acountry’s international competitiveness. Therefore, it is vital that existing systems be reviewed toensure that they do not impede the innovation creation process. Reforming systems sooner thanother countries will lower the entry barriers to foreign capital and help to attract investment aimed
at innovation.
Furthermore, in addition to spawning new services and business models, tremendous advancesin ICT also serve to disrupt intellectual property systems and other prevailing systems. Therefore,systems also need to be reviewed to ensure that the potential of innovation for socialtransformation is being harnessed as fully as possible. As the trading of information and services
and business becomes more global, international coordination becomes indispensable.
 Reviewing systems in accordance to new products, services, and business models
As science and technology advance, they give rise to new game-changing products, services,and business models that did not previously exist and that can quickly become widely
implemented. However, under current systems and rules, which were formulated on the basis ofearlier technologies, these new products, services, or models may be impermissible or fall withina gray area. Advances in ICT, for example, have enabled the delivery of services such as cloudand sharing services across international borders, giving rise to situations that were inconceivable
when the prevailing legal system was formulated.
In view of the fact that systems can no longer keep up with the pace of innovation, and with anunderstanding that this lag is worsening, CSTI, together with related government agencies, isidentifying systematic problems associated with the accelerating use of ICT and robots, as wellas the widespread diffusion of new products, services, and business models. Additionally, thegovernment and other stakeholders will examine and devise necessary ways to address theseissues, including by means of system revisions.
Furthermore, if real-world verification is necessary, corrective action will be implemented,
including by the use of special zone systems, in order to enable issues to be addressed under
existing systems. For products, services, and business models understood to fall within gray zones
under current systems, ways to promptly define the status of items in question within thosesystems will be examined and devised. In doing this, issues will continue to be identified, throughinitiatives such as promotion of SIP and also through advancement in the 11 systems, in order tohelp realize a super smart society.
 Improving IP systems in response to the tremendous development in ICT
The development of technologies such as IoT and AI has significantly reduced the transparency
of international boundaries in cyberspace. As a result, cyberspace now contains considerable

54

amounts of IP of vague status and uncertain jurisdiction, and increasingly new innovations arebeing generated through the use of such IP by third parties. The evolution of three-dimensional(3D) printing and other digital manufacturing technology is also leading to a growing integrationof information with “things”. This is making the protection of rights under an IP framework basedon earlier concepts of “country” and “things” increasingly difficult. Therefore, in addition to
improving old systems, it is necessary to create new worldwide systems and mechanisms thattranscend the concept of countries and, through these, to construct international cooperative
relationships.
Accordingly, on the basis of technological and social progress and changing needs, thegovernment will examine and devise systems and strategies appropriate to the new emerging age,such as highly flexible rights regulations and a smoothly functioning licensing system. This will
be accomplished by taking into consideration the balance between IP protection and the promotionof IP use, as well as international trends.
(5) Developing Innovation Systems that Contribute to “Regional Revitalization”
While population decline and aging are major challenges facing all of Japan, it is especially
important to address the worsening birthrate and aging populations adequately in each region, bygenerating new businesses and economic activity to revitalize local economies. Fortunately, avariety of regions have strengths and “sprouts” from which innovations can be produced. In orderto leverage the strengths of these areas into the creation of new products and services, and to
generate greater added value for existing industries, it is important to locally establish selfregulating, sustainable innovation systems.
Up to now in Japan, regional policies have been centered on the concept of “clustering” inaccordance with the characteristics of each locality and the available “seeds” of technology fromlocal universities. However, for the most part, the use of resources from outside a particular region
has been limited, with a tendency for economic activity to remain closed within the locality.
Additionally, since policies were applied uniformly across the country, local characteristics havenot been sufficiently exploited in many cases, and too few initiatives have been able to take root
and achieve sustainability.
Conscious of these points, the government needs to support STI through local leadership anduse that as the basis for promoting “regional revitalization”.
 Revitalizing regional companies
So-called “global niche top” (GNT) companies with particular products that boast high market
share and good profitability both in Japan and abroad play an important role in driving local
economies. This is done, for example, by generating work for large numbers of suppliers in theregions where they operate. In addition to promoting the vitality of such core companies, which
drive local economies while also developing their businesses beyond the region and eveninternationally, it is necessary to discover other companies with the potential to grow and become55similarly successful, and to support them in taking up the challenge of generating and expanding
their business activities.
To this end, the government is identifying regional small and medium-sized companies in Japanthat have the potential to develop advanced technologies that can dovetail with demand within
and beyond their regions, and even overseas. To promote their growth into core companies, thegovernment will make available systematic support that covers everything from the formulationof R&D strategies to product development, including matching their needs to technology “seeds”
beyond the region, standardization, cultivation of sales channels, and expansion into international
markets. By leveraging the particular strengths of regional universities and public research
institutes, we will build strong partnerships between such regional institutions and companies withthe potential to become core companies. In addition, we will support joint R&D and greater
standardization of outstanding local technologies and products in order to help generate new andhigher value-added businesses in local economies.
 Driving innovation systems that make use of local characteristics
In order to make use of the various resources and technology “seeds” that are locally available
and to effectively cultivate “sprouts” of innovation, it is important to have a broad network ofcollaboration appropriate to local characteristics between the various stakeholders. These
stakeholders might include universities, technical and vocational schools, and public research
institutes (including National R&D Institutes and national research and testing institutes) with
their stores of knowledge, as well as local companies, local government bodies, and local financial
institutions. However, if such a system is to take root locally, the presence of professionals who
can engage constructively with resources and experts both in and outside the region is absolutely
vital. These include, for example, individuals capable of putting together joint industry–
academia–government research projects, individuals capable of creating businesses that harness
the potential of the region, and individuals to support the launch and growth of startup companies.
To realize this vision, the government will collaborate with relevant ministries and local
authorities and invest effort in cultivating these kinds of professionals and getting them settled
locally. It will also promote innovation that strengthens local competitiveness and revitalizes local
economies and offers appropriate support for generating a self-sustaining virtuous cycle in order
to expand and invigorate the young members of the regional labor force and revive local
communities. The government will also enhance both intermediation functions to help
commercialize “technology seeds” and matching functions, at both the local and national levels,
through collaborations between research and testing institutes, National R&D Institutes, anduniversities, along with others.
 Promoting policies that encourage local initiative
The government needs to promote the development of an innovation system led by local
communities, utilizing local strengths and unique local characteristics, to support the independentand sustainable growth of those communities. In developing these policies and measures, the56government will take into account the reality that it may take decades to go from initiating
innovation to achieving the substantial result of creating businesses. In addition, it is important to
identify the factors behind the various examples of successful community-led initiatives alongwith the factors behind unsuccessful initiatives that did not yield commercial success, in order towidely share those factors with other regions, and to provide support for analyzing the dynamics
relating to the industrial structure and economy of communities.
Through collaboration with the Headquarters for Overcoming Population Decline andVitalizing Local Economy in Japan and the Intellectual Property Strategy Headquarters, and in
addition to various measures by public institutions to support small and medium-sized companies,
CSTI will work on establishing an environment that enables local communities to implement all
appropriate measures to tackle these challenges. In doing this, CSTI will create a system thatenables support for local initiatives, thereby bringing together all relevant institutions moreclosely than ever. In accordance with this system, CSTI will continually review the circumstancesof the community in order to see whether it has a clear and effective strategy for generating
innovation that exploits its particular strengths and characteristics, and whether local government
bodies and the wider community are really committed to leading the effort. Then, in accordancewith these reflections, it will collaborate with relevant ministries to address issues as needed. The
results of these measures will be widely shared in order to help with the effective implementation
and revision of comprehensive strategies for local revitalization formulated by prefectural andmunicipal governments, based on the “Towns, People, Work Revival Law”.
(6) Cultivating Opportunities for Generating Innovation in Anticipation of Global Needs
Many of the serious problems that Japan grapples with relating to energy, resources, foodsecurity, and natural disaster responses are shared by other countries around the world. Thus, thetechnologies that Japan has developed (or is developing), and the knowledge derived from thosetechnologies to deal with these challenges, can be increasingly put to good use internationally.
Therefore, by using Japan’s technological prowess and practical experience in these fields andanticipating global needs, as well as by taking strategic initiatives to pursue common benefits forthe whole world in addition to Japan, we can cultivate global innovation and advanced
opportunities for business development.
 Promoting R&D that anticipates global needs
In Europe and the Americas, the government and companies are strategically developing
initiatives aimed at new business creation by building cooperative relationships on a global scale,setting an agenda that anticipates global needs, and promoting R&D. On the other hand, despite
the fact that Japan possesses sophisticated knowledge about the needs of the world and a wealthof technologies, it is currently unable to effectively utilize these resources for the development of
global business.
For this reason, Japan will develop international activities such as identifying and defining
issues and producing suitable policies ahead of the rest of the world, not only from the viewpoint57

of making a contribution to the world but also in order to contribute to enhancing the country’s
industrial competitiveness.
More specifically, working in partnership with international organizations with a view toestablishing greater international collaboration and cooperation, the government will construct across-sectional analysis system for making science and technology forecasts and exploring longterm changes, with the aim of generating R&D and new business ideas in anticipation of global
needs. In addition, to facilitate the use of the results of these findings in society, it will also set up
systems and mechanisms for sharing information and for follow-up. Furthermore, by leveraging
the strengths of Japan’s universities and public research institutes, we will strategically promoteinternational joint research and research exchanges with the world’s leading science andtechnology nations with a view toward addressing the economic and social challenges that weface.
 Developing systems to promote inclusive innovation
In scientific and technological cooperation with emerging nations and developing countries, it
is important to break away from the aid-driven forms of cooperation that have prevailed up tonow, and move instead toward strategically establishing frameworks for more equitablepartnerships with such countries in order to facilitate the generation of socially inclusive andsustainable innovation (“inclusive innovation”).
In addition to promoting bilateral knowledge exchanges and developing mechanisms toleverage each party’s strengths in order to try to resolve the problems faced by emerging anddeveloping countries, we will widely disseminate the findings of such work to other developing
countries. Through such measures, we will be able to build mutually beneficial relationships withmany different countries.
To strengthen relationships with emerging and developing countries, the government will
promote joint research in the field as part of efforts to actively utilize and improve frameworks
for international science and technology cooperation that aim at addressing global-scale problems,
and will implement inclusive innovation in science and technology. In addition, the government
will examine and promote the design of programs that emphasize initiatives that offer practicaluse in society and foster professionals.
To help the industrial development of developing countries, we will also promote inclusive
innovation by investigating coordination measures between sustainable businesses that target lowincome earners in those countries, who total approximately 4 billion people worldwide, andpromotion of science and technology. In pursuing these initiatives, we will keep in mind that they
will also be useful in solving social problems in Japan and other advanced countries.
It is also important to strengthen international professional networks. Therefore, in our scienceand technology cooperation with emerging and developing countries, we will pursue
collaborations with the partner country’s government, universities, public research institutes,
funding bodies, and industries, and also help to foster young researchers and industry
professionals in the country. In doing this, we will collaborate with other developed countries and58multilateral frameworks and strive to cooperate in initiatives implemented by partner countries
for training professionals.

59Chapter 6 Deepening the Relationship between STI and Society
The history of humanity has been rewritten by the interactions between science and technology
on one hand and social systems on the other. However, with the rapid evolution of science andtechnology, the relationship between these two forces has become ever more intimate. In an eraof drastic change like our own, STI drives the creation of future industries and socialtransformations. Thus, having dialogue and cooperation between varieties of stakeholders is now
essential when formulating responses to economic and social challenges. For this reason, scienceand technology and society, which have traditionally worked at cross purposes, need to have a
deeper relationship in order to facilitate dialogue and cooperation, or “co-creation,” between adiverse range of stakeholders, including researchers, citizens, media, industry, and policymakers.
To achieve this, it is important that the national government, universities, national research
institutes, and science museums take the lead in setting a co-creation forum, and that the
stakeholders each enhance their capabilities in order to enable more effective co-creation. To
accomplish this, it is necessary to build a relationship of trust between stakeholders, but that is
only possible if the integrity of research is assured.
(1) Promoting Co-creative STI
 Dialogue and collaboration with stakeholders
Since the Third Basic Plan, outreach initiatives such as “science cafés”, in which researchers
have participated of their own accord, have spread, in part because science and technology
communication has been encouraged as a matter of policy. On the other hand, as a result of theGreat East Japan Earthquake and the ensuing nuclear reactor accident, as well as recent incidentsof misconduct by researchers, the relationship between science and technology and society is
being seriously questioned.
Looking ahead, it is important to improve outreach activities, but researchers must also face up
to the questions of STI’s place and influence in society. It is also essential that the various
stakeholders genuinely interact with each other in the spirit of dialogue and cooperation in orderto engage in “co-creation” that leads to policymaking and knowledge creation. For this reason,
the government will work together with universities, national research institutes, science museums,
etc., as part of efforts to generate more-effective dialogue and to set up forums for dialogue andcooperation. This will include roundtable meetings with various stakeholders and science andtechnology-related meetings that are open to all citizens. The opinions gathered in this way will
be taken into account during government policymaking, with the aim of creating new value andidentifying and addressing social issues. As well as promoting citizens’ science, we will try tocreate a methodology and environment that enable researchers to work together with citizens andpolicymakers in formulating research plans, implementing research, and disseminating the fruitsof that research.

60 Stakeholder initiatives for co-creation
To promote co-creation between stakeholders in science and technology, it is important to raiseboth the scientific and technical literacy of citizens, who are the stakeholders on the side of society,and the social literacy of researchers.
It is particularly vital that citizens develop a deeper understanding about the limits anduncertainties of science and technology and the methods of logical debate from the elementaryand secondary school stages in order to stimulate dialogue about use of new science andtechnology in society and communication about the risks of natural disasters and climate change.
Public education facilities, such as science museums, have a major role to play in this. In thesekinds of places, science communicators—professionals who connect researchers with the various
stakeholders representing society—are expected to actively function as mediators in order tofacilitate dialogue and cooperation between the two sides, so the government will support theirefforts.
Newspapers, TV, the Internet, and other media also have a significant role to play in scienceeducation. By striving to provide science and technology information that is as objective as
possible, including discussion about uncertainties and opposition to the views of specialists, themedia should consciously aim at increasing the scientific and technical literacy of citizens and,by extension, help to foster co-creation.
On the other hand, researchers are expected to explain their work to various stakeholders in aneasy-to-understand way, making use of broad knowledge and perspectives that cut across different
disciplines. Furthermore, researchers need to broaden their outlooks and develop a deeper
awareness of the importance of the use of their research in society. Along with such enhanced
perspectives, it is important to make effective use of collaboration between the humanities/social
sciences and the natural sciences and internships for experts in companies. In addition, personnel
performance evaluations at universities and national research institutes and the evaluation ofresearch projects at publicly funded organizations should not be based solely on the number of
papers published. Rather, it is necessary to adopt multi-faceted evaluation criteria that include
efforts at dialogue and cooperation with a variety of stakeholders and the social impact of researchfindings.
 Scientific advice for policymaking
The role of science and technology in the shaping of government policy in responding to natural
disasters and climate change, in responding to the needs of our hyper-aging society (such as
medical issues), and in ensuring cybersecurity, is bigger than it has ever been before.
In light of this, it is important that researchers strive to ensure the quality of their scientificadvices, and that they clearly explain to the various stakeholders of society the limits anduncertainties of scientific knowledge, as well as the fact that there can be differing scientific views
on any issue. On the other hand, stakeholders should perceive that researchers are able to deliverscientific views from an independent standpoint, without being swayed by political motives. It isalso important that stakeholders recognize that while scientific recommendations should be61respected as part of the policymaking process, they are not the only grounds for making policy
decisions. Furthermore, the mechanisms and systems used to make scientific advices in Japanneed to be improved while taking into account international trends of recent years.
 Ethical, legal, and social initiatives
On questions of the social applications of science and technology, there are a growing numberof cases in which society as a whole needs to make decisions on ethically or legally contentious
issues. These issues include, but are not limited to, genetic testing, regenerative medicine, and AI.
In the social implementation of new science and technology, the government needs to provide
a suitable forum for formal or informal communication with the various stakeholders, andundertake research on the ethical, legal, and social issues with the participation of a variety of
disciplines in the humanities/social sciences and natural sciences. Then, based on the results ofthis research, it must predict the social benefits and costs of the new technology, as well as its
unintended uses, and examine the construction of a systematic framework for implementation thatstrikes a balance between advantages and disadvantages. Finally, it must put in place all thenecessary measures for this. As and when necessary in response to advances in leading-edge
research, the government and academic societies should also work on formulating ethicalguidelines.
Furthermore, with a view toward promoting the use of science and technology in society, we
will promote research on scientific methods for appropriately predicting, evaluating, and making
decisions

based

on

scientificgrounds;

forproducing technology

assessments

thatcomprehensively analyze the impacts of science and technology; and for formulating andimplementing regulations, as well as researching ways to manage transitions between social
systems. These measures will be pursued in coordination with R&D activities.
(2) Ensuring Research Integrity
In order for researchers to engage in meaningful dialogue with a variety of stakeholders insociety, it is vital to build a relationship of mutual trust. A prerequisite for this is to ensure theintegrity of research. Although most researchers pursue research with integrity, it is a fact thatincidents of research misconduct have occurred in the past. Researchers and research institutes
such as universities need to fully recognize that dealing consistently with research misconduct isthe proper response to the trust and mandate of the public toward STI, and that this ultimately
serves to improve the capacity for STI.
Consequently, researchers should reflect on their duty of ensuring the integrity of research andstrive to foster a culture in which integrity is self-sustaining, for example, by passing on the
research ethics that they have learned and acquired themselves to young researchers. Universities
and other research institutes should also develop mechanisms for continuing research ethics
education, in accordance with their respective occupations, for example, for specific research
fields, for researchers, for personnel who aim to become researchers in the future, and for researchsupport personnel.

62

They should also be prepared to respond swiftly and appropriately to any suspicion of research
misconduct. In the event that research misconduct is observed, the incident should becomprehensively examined by investigating its essential cause and background, and measures
should be taken to avoid a recurrence. When doing this, it is important to be careful that
researchers not be excessively pursued for legal liability. The national government will revise
guidelines relating to research misconduct whenever needed and, in partnership with funding
bodies, guarantee the integrity of research through measures based on those guidelines.
The most basic and essential thing in research integrity is not merely to deal with it from thestandpoint of the applicable laws and guidelines but rather to create a research environment thatenables free and open-minded debate that transcends the barriers within labs, or between labs andresearch institutes. As long as there are opportunities for casual consultation and discussion withsurrounding researchers at the workplace level—thereby enabling frank and lively exchanges of
opinion concerning the interpretation of data, the validity of research methods, and the design ofstudies—and if findings are verified from these different angles, the fruits of research will be
trustworthy. The responsibility for creating this kind of research culture lies not only withresearchers but also with universities and other research institutes.
A higher level of public expectation of researchers requires a greater level of responsibility that
researchers need to bear. To ensure that researchers can work in a free and open-minded way fromthe earliest stage of their careers, it is also important to consider the work burdens that are placedon them. The government, universities, national research institutes, and funding bodies should
work to establish an environment that enables researchers to freely concentrate on R&D work andco-creative activities by increasing the efficiency of administrative processes, etc.

63

Chapter 7 Enhancing Capacity to Promote STI
In order to effectively and flexibly execute the policies and measures defined in this Basic Plan,
it is necessary to enhance capacity to promote STI.
For this reason, we are reforming and enhancing the role of universities and National R&D
Institutes, which are the key entities engaged in activities related to STI. In addition, thegovernment needs to coherently and strategically develop STI policies aimed at both domestic
and global activities based on an overall vision of the measures implemented by the various
players, universities, public research institutions, and companies, along with the relevant officeand ministries. In addition to strengthening the systems for this, we will work to enhance the“control tower” role of the Council for Science, Technology and Innovation (CSTI). Furthermore,
we will ensure the sufficient R&D investment for the implementation of the Basic Plan.
(1) Reforming Universities and Enhancing their Function
In order to address the demands of our age of dramatic change, it is absolutely vital to foster
diverse and excellent human resources and to develop a rich foundation for the creation of diverse
and outstanding knowledge, in order to enable flexible and appropriate responses to whateverchanges in circumstances and new problems are encountered. In this effort, it is universities thatplay the key role. Furthermore, the role of universities is expanding, spanning from making new
knowledge available to society through to engaging in industry–academia–government
collaborations in order to widely deliver economic, social, and public benefits to society.
Universities, which have an extremely important role in generating science, technology andinnovation, face a variety of challenges, such as reforming their management and personnel
systems, ensuring stable posts for young professionals, participating in international initiatives topromote the circulation of talented researchers, engaging fully in industry–academia–government
collaborations, and promoting diversification of funding sources. To appropriately address thesechallenges, it is necessary to ensure that personnel, knowledge, and funds within a university are
utilized effectively and efficiently.
In light of this, universities are required to promote radical reforms based on recognition of thefact that they must contribute to society through education and research. More specifically, theyneed to establish management systems and pursue reforms that enable universities to operate withunified academic staffs based on the leadership of university presidents who are responsible forreform. More specifically, they need to strengthen their management capability through theappropriate allocation (“portfolio management”) of resources across their organizations; enhancetheir institutional research (IR) and planning, survey, and analysis systems; boldly restructure andmetabolize their education and research systems; reform their payroll systems to promote optimal
deployment of human resources; radically reform university and graduate school education; andupgrade systems for industry–academia–government collaborations. This can be accomplished by
improving risk management; actively publishing information, including data on the state of theirfinances; diversifying funding sources; and implementing a selection process aimed at appointing

64presidents in accordance with each university’s mission, and then securing and training personnel
to be presidents.
At the same time, the government will provide incentives to universities for actively promoting
these kinds of measures, including the use of assessments and allocation methods for grants tonational university corporations, and it will review and reform systems to enable more streamlined
and efficient financial management by universities including national universities. For national
universities that operate in highly competitive international environments and meet certain
conditions, the government will provide for exceptions to the national university corporation
system and will review and implement ways to support and evaluate such universities in order tosignificantly strengthen the foundations of the organization and its diverse funding sources,
including at the institutional level.
Furthermore, to guide reforms of education and personnel systems at universities, thegovernment will create a system for forming graduate schools in order to promote integrated
education in disciplines that span different fields, such as the fields of humanities and sciences,
as well as leading-edge education in fields in which Japan is strong. It will also adopt systems forenabling outstanding young researchers to work in independent and free research environments
while being employed in stable positions.
(2) Reforming National R&D Institutes and Enhancing their Function
National R&D Institutes are organizations that tackle basic and basic research matters that are
difficult to perform in the private sector, as well as the development of element technologies that
contribute to the formulation of verification testing and technical standards, and the allocation offunds to other institutions for R&D expenses, all based on national and international requests witha long-term vision. As a driving force behind innovation system, they are required to work onorganizational reform and enhancing their functions.
R&D institute presidents are required to demonstrate outstanding management skills, such as
the ability to provide and operate appropriate internal controls, as well as to pursue
commercialization of technology seeds, facilitate international expansion, conduct personnel
exchanges, and more. In addition, for the technologies that serve as the indispensable basis forJapan’s sustainable development, R&D institute presidents are expected to facilitate the musteringof technologies and personnel for industry–academia–government collaborations and for
integrating technologies in accordance with a long-term vision of the national government, taking
into account Japan’s international competitive standing and the ripple effects of thosetechnologies on society.
In terms of the national strategy, as well as promoting appropriate, effective, and efficientadministration and management of the corporations by setting and assessing medium- to longterm goals and budgetary measures based on R&D characteristics and diversity, the government
will ensure that each R&D corporation works in close partnership with the government to fulfill
its role and mission, and achieves the maximum possible R&D findings.

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The government will also establish a forum in which each institute’s role and medium- to longterm strategy can be seen and disseminated within and outside Japan. In addition, the government
will strive to improve operational performance levels in areas such as procurement for R&D inorder to help increase the competitiveness of each institute, and it will also take measures such as
streamlining procurement, reorganizing personnel systems, and enhancing systems for industryacademia-government collaboration.
“Designated National R&D Institutes” (tentative name), which are expected to be establishedsoon, will aim at producing R&D findings of the highest international standard and will serve ascore institutions for strongly driving innovation systems. The government intends to eventuallydeploy these pioneering initiatives to other National R&D Institutes.
(3) Strategic International Implementation of STI Policies
In light of increasing globalization, Japan must not only pursue STI but also utilize the fruitsof them to improve Japan’s profile and reputation in international society. For this, it is necessary
to coherently implement international activities relating to STI, as well as science and technology
diplomacy.
Accordingly, the government will not only disseminate the findings produced by universities,
national research institutes and companies in relation to the economic and social issues faced by
Japan throughout the world but also make use of international organizations and conferences todemonstrate leadership in these fields. Japan will also strategically pursue bilateral andmultilateral cooperation with other countries and make efforts to raise its international profile bytaking opportunities to exercise science and technology diplomacy through international awards,
international academic conferences, and the like. Furthermore, Japan will cultivate and secure
professionals capable of undertaking such diplomatic activities and promote their efforts byappropriately evaluating these human resources and enhancing support systems designed to assist
them.
To strategically and effectively implement such measures as the government, CSTI will
strengthen collaborations with the Ministry of Foreign Affairs and other relevant ministries, aswell as with funding agencies and other relevant institutions. It will also continue to shareinternational information and set up agile and continuous networks and management systems.
(4) Pursuing Effective STI Policies and Enhancing the Chief Controller Function
The Basic Plan depicts the state of STI policy over the next five-year period from a mediumto long-term perspective, looking ahead approximately 10 years. Starting in fiscal year 2013
(FY2013), the Comprehensive Strategy was formulated each year to serve as the driving force ofpolicy development. From now on, the direction of medium- to long-term policy will be expressedin the Basic Plan, and the policies that need particular focus in each year will be described in theComprehensive Strategy, based on changing circumstances.
In this process, policies are developed based on objective grounds, so indicators are set
separately in order to quantitatively assess progress and results pertaining to the direction of the66Basic Plan and the points of focus that it defines. In continued collaboration with relevant
ministries, CSTI will use these indicators and combine them with qualitative data to perform aninterim assessment of the Basic Plan each year, identifying problems and also following up on
remedial measures.
The results of these assessments will be comprehensively utilized in formulating theComprehensive Strategy, and in adjusting resource allocation guidelines and estimation
guidelines for science and technology-related budgets in order to appropriately allocate limited
resources to necessary fields and policies. These will be based on a broad overarching vision of
STI policy. Furthermore, it is important to ensure that these results are reflected back into the STI
policies of the relevant ministries through greater use of innovation budget strategy meetings.
We will also work to reflect policies based on objective grounds into policy drafts, assessments,
and policies. To this end, we will work to adopt mechanisms for systematically observing andanalyzing probable future economic and social developments based on objective grounds, as well
as systematically providing data and information for assessing and analyzing policy effectivenessand developing indicators and tools. In relation to public funding, CSTI and the relevant ministries
are conducting assessments and analyses of public funding options and providing the results tofunding bodies and other stakeholders while continuing to work intensively on recording data to
a common R&D administration system for all ministries and then linking this system to the
databases of funding institutions.
While this Basic Plan specifies targets relating to STI activities and its results for Japan as awhole, in particular for items for which quantitative definitions of desired goals are necessary andpossible, the targets are not applied to specific institutions. Each institute should not focus on only
the achievement of targets, otherwise they may hinder the implementation of STI contrary to their
expectation. Accordingly, CSTI will constantly monitor and assess the impact of the targets on
STI at each institution, and it will devise appropriate corrective measures to facilitate STI
whenever necessary.
To further exercise its chief controller role, CSTI will forcefully promote SIP. Industry,
academia, and government, including all related ministries, have devoted all their energies on the
R&D and market implementation of this technology. CSTI will also push for the further
development and deployment of ImPACT. Since existing systems and rules have not necessarily
kept up with advances in science and technology, they may become hindrances to future industrial
creativity and social change. Therefore, with a sense of urgency, we will promote a variety ofreforms, improvements, and other adjustments to systems associated with STI.
In pursuing the above goals, CSTI will further deepen its collaboration with other chief
controllers(Headquarters for Japan's Economic Revitalization, Council for Regulatory Reform,

National Security Council, Headquarter for Overcoming Population Decline and Vitalizing Local
Economy in Japan, IT Strategic Headquarters, Intellectual Property Strategy Headquarters, Ocean
Policy Headquarters, Strategic Headquarters for Space Development, Headquarters for Healthcare
Policy, Cybersecurity Strategic Headquarters, and National Resilience Promotion Headquarters)
and the Science Council of Japan. Drawing on the resources of relevant ministries, public think67

tanks, and other stakeholders, we will devise necessary system enhancements, and strive toaddress high-priority issues for the nation, as well as issues for which cross-ministerial measures
are necessary.
(5) Ensuring R&D Investment for the Future
In today’s world of rapid scientific and technological advances, and increasingly globalized
markets, the key to overcoming global competition is to generate innovations in science andtechnology ahead of other countries. In view of this, it should be noted that whereas thegovernments of China and other countries have invested heavily in R&D, for many years in Japan,
the government’s proportional contribution to R&D spending has been lower than other countries.
Given these tough financial circumstances, science and technology-related budgets are trending
downward. In order to sustain a prosperous society in which each and every citizen can thrive, as
well as to preserve such a society for future generations, it is essential to make government
investment in STI policies a high priority.
In other words, the process of creating knowledge and value is changing dramatically and, dayby day, this change is in turn causing significant changes to the structure of our economy andsociety. Thus, to be ready to flexibly and appropriately deal with any kind of changing
circumstances or new challenge in today’s world, we need to strengthen research capabilities andfundamental R&D for generating diverse, high-quality knowledge. Since this work must be
performed by universities and national research institutes, the supporting role of government isessential. In a world in which the future is so unclear, companies become averse to risk and thefruits of R&D must pay for themselves quickly. For this reason, governments must act all themore to support sustainable long-term R&D, including those types that lack immediate
commercial potential.
Furthermore, to promote regional creativity, small and medium-sized companies, which tend
to lack funding and vitality, will need backing in order to convert the results of their research into
viable products and services, and the government is expected to play a role in this. To pursue
these kinds of measures, there is also a need to cultivate and secure the professionals that are thebackbone of STI, and it is fitting that in this resource-poor country, built up by human effort, thegovernment should confront such challenges head-on.
With the increasingly fierce global competition of today’s world, Japan’s companies must takechances in order to fight for their survival, and they are now also being targeted for collaborationby overseas universities. Unlike various other countries, in Japan government, R&D of a suitablescale is essential for supporting the private-sector R&D of this lively nation. Company-sponsoredR&D is geared mostly to improving existing technologies. Therefore, if the kind of R&D whose
potential market value is unclear is not performed by Japan’s universities and public research
institutes, companies will either be forced to get their needs met at foreign universities to gain
access to the R&D that they cannot conduct by themselves, or they will be pushed to relocate theirown R&D center abroad in order to establish a world-class facility.

68Since Japan’s universities and national research institutes also find themselves competing
globally to offer their services to Japanese citizens, the government must continue playing its roleof promoting improvements in these institutions and supporting activities that the private sector
cannot handle. This is necessary in order to ensure that the universities and national research
institutions can provide Japan with high-quality research and education services of the highest
international standards. Therefore, it is of crucial importance that universities, research institutes,
and companies in Japan keep working together to lead efforts find and address solutions to thechallenges, both in and outside Japan, presented by changing industrial and social structures.
So far, up to the term of the Fourth Basic Plan, setting clear goals for government R&D
investment has enabled Japan to steadily improve its R&D environment and win numerous Nobel
prizes in the process. These prizes are also the fruits of government R&D spending over many
years. Under the Fifth Basic Plan as well, government investment in R&D needs to expand, witha view to continuing the efforts for promoting science and technology up to now.
Concrete goals for such government R&D investment should be set with a constant focus on
improving policies, comprehensively taking into account a variety of significant factors, such as
the fact that many other countries are increasing their government R&D spending, the relatively
low level of Japanese government spending as a proportion of total R&D investment, the need forgovernment R&D investment to produce the synergistic effects of promoting private sector
investment.
In light of all this, based on confirmation that this conforms to the “The Plan to Advance
Economic and Fiscal Revitalization” in “Basic Policy on Economic and Fiscal Management andReform 2015” decided down by the Cabinet in June 2015, we are setting a target of at least 4% of
GDP for total public and private-sector R&D investment, of which the government R&D
investment target level is 1% of GDP. Assuming an average of 3.3% of nominal GDP growth rateduring the period, we estimate that the total government investment in R&D needed over the termof the Fifth Basic Plan will amount to approximately 26 trillion yen.
Given the challenges of a declining population resulting from our low birthrate and aging
population, Japan is facing spiraling social security costs and stagnant tax revenues. However, it
still aims to increase economic productivity through STI. In this way, Japan can achieve economic
growth and employment creation, ensure the safety and security of the country and its citizens,provide them prosperous lives, and also contribute to development internationally.

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