English Translation for Reference Use Only
P18016
Basic Plan for the "Moonshot Research and Development Program"
Innovation Promotion Department
1. Objectives, goals, and content of the program(1) Objectives of the program(i) Political importanceConsidering that Japan faces many difficult issues today, science and technology is
expected to boldly try to solve these issues, and develop prospects for the society of the
future.
(ii) Situations of R&D in Japan
In Japan, many ingenious technical results that have the potential to innovate futureindustries and society (creation of disruptive innovation) are being produced in the areaof fundamental research. However, the research and development systems for
sufficiently rapid realization of technical results in industries and society, and for
deploying them on a global basis, have not been established.
(iii) R&D efforts in the world
With the aim of creating disruptive innovation, Europe, America and China are trying torealize ambitious ideas, and trying to solve difficult social issues which are far beyond themere extension of traditional technologies, through the aggressive promotion ofchallenging research and development with high risk and high impact, based on an
extraordinary scale of investment, compared to that of Japan.
(iv) The aim of this program
In light of these situations, the Council for Science, Technology and Innovation(hereinafter referred to as “CSTI”) decided to promote challenging research anddevelopment ("Moonshot") based on bolder ideas that are far beyond the mere extensionof traditional technologies, with the aim of creating disruptive innovation from Japan. This
program, which is designed to:1) View future society and set ambitious goals ("Moonshot Goals", hereinafter referred
to as "MS Goals") and ideas which will fascinate people in connection with social
1issues and others, which are difficult to solve, but if solved, are expected to have agreat impact, and to bring together the wisdom of researchers from throughout theworld under the supervision of the best researchers who can lead state-of-the-art
research, and to realize MS Goals.
2) Aggressively promote challenging research and development, which will exert
Japan's ability for fundamental research to the maximum, and discover and develop
innovative technical results while accepting failure at times, given today's situation
where a variety of insights and ideas in the fundamental research phase are being
applied to industries and society at a remarkable pace, and disruptive innovation is
being generated in various fields.
3) Renew the method of managing such research and development so that the entire
picture of related research and development can be seen, and the strategy andcontent of the research can be flexibly reviewed, with the focus being placed always
on the trend of research and development advancing in the world, and establish themost current research support system; to provide an opportunity for discussion witha variety kinds of persons from the standpoint of smooth implementation of technicalresults, and establish a research system in which ethical and social issues, as well
as issues concerning the legal system, may be examined by researchers in various
disciplines, including the humanities; and to make efforts for the complete
implementation of an open/closed strategy, with future commercialization taken into
consideration.
These will be promoted through the combined efforts of relevant government offices under
the direction of the controllers: CSTI, and the Headquarters for Healthcare Policy.
The National Research and Development Agency New Energy and Industrial Technology
Development Organization (hereinafter referred to as "NEDO") will, as the researchpromotion agencies (funding agencies, hereinafter referred to as FAs) responsible for thework related to research and development, establish a fund and promote challenging
research and development based on this Basic Plan, in order to realize the MS Goals. The
program will be executed in accordance with the "Basic Ideas on the Moonshot Researchand Development Program" (Decision of The Council for Science, Technology andInnovation, as of December 20, 2018), and the "Guidelines for Operation and Evaluation of
the Moonshot R&D Program".

2(2) Targets of the program(i) Output Targets
Specific targets and others are described as MS Goals, which were determined by
CSTI, and for each R&D concept, which was established by the Ministry of Economy,
Trade and Industry. In addition, for each individual project that is adopted, the interim
target and the final target will be established for the evaluation.
(ii) Outcome Targets
CSTI and the Ministry of Economy, Trade and Industry present MS Goals, and the
R&D concept (hereinafter referred to as the concept), which will be fascinating to people,
with a vision of future society, and from the standpoint of finding solutions to the domestic
and international social issues that are likely to become obvious in the future.
(iii) Efforts for achievement of Outcome Targets
Information on the trends of domestic and overseas research development and on
the issues concerning social implementation of the technical results of research anddevelopment, including efforts necessary for the realization of MS Goals, will be collected
and analyzed. Collection and analysis of such information will include the opinions ofoutside experts, such as humanities and social science researchers. In addition, for the
purpose of the strategic promotion of research and development, acceleration ofcommercialization of the technical results of the research and development, and effective
collaboration and adjustment amongst relevant government offices and FAs, the program
will be promoted on the basis of approval and advice on the concept of the project
structure, and the policy for allotment of funds from the Strategy Council (tentative name)which will be established by the Cabinet Secretariat and the Cabinet Office, and will becomprised of the industry, researchers, and relevant government offices.
(3) The details, and execution style of the program
For this program, NEDO will appoint Project Managers who will be responsible formanaging research and development (hereinafter referred to as "PMs"), and researchand development implementers, through Public Call to execute research and development,
taking into consideration the MS Goals which were determined by CSTI, and the concept,
which was established by the Ministry of Economy, Trade and Industry. Although the PM'snationality is irrelevant, the PM is basically expected to be based in Japan. The researchand development implementers will be multiple research institutes, including domestic andoverseas companies and universities (hereinafter referred to as "Organizations"), which will3

participate in research and development as an optimal research and development system
for realizing the MS Goals, and the concept. Overseas Organizations will be selected forparticipation based on the conditions that will be set forth separately. However, from theperspectives of national security and trade control, if the system described in a proposal
includes any companies and organizations (hereinafter referred to as "Companies, etc.")that are listed in the End Users List prepared by the Ministry of Economy, Trade andIndustry in connection with the trends of development of nuclear weapons and others set
forth in Item (iii)(a) of Paragraph 1, Article 4 of the Export Trade Control Order orCompanies, etc., which belong to countries to which the export of weapons and theirrelated products is prohibited by the resolution of the UN Security Council (countries andregions to which weapons exports are banned by U.N. resolutions)(Appended Table 3-2 ofthe Export Trade Control Order), and the three countries of particular concern (Appended
Table 4 of the Export Trade Control Order), that proposal would be ineligible.
The program will be executed as an entrusted program.
Support will be granted for a maximum period of ten years, from the time of thecommencement of the research (when the first project is started from amongst the multiple
projects in one Moonshot Goal).
2. Method for executing the program(1) Execution system of the program
NEDO will appoint a Program Director (hereinafter referred to as the "PD") for NEDO’s
MS Goal which was determined by CSTI, and for each R&D concept, which wasestablished by the Ministry of Economy, Trade and Industry. The PD will establish a
portfolio for strategically realizing NEDO’s MS Goal (a management plan that organizes the
project structure [combination] and the policy for allotment of funds, etc., hereinafterreferred to as the "Portfolio") and integrally direct and supervise projects promoted by thePM.
NEDO will appoint the PMs responsible for the management of research anddevelopment and the research and development implementers through Public Call in
consultation with the PD, and execute research and development. Under the direction of
the PD, the PM will establish project plan (setting goals of the project, preparation of theexecution plan, establishment of system for execution, and drafting of the allotment plan of
research fund to participating research and development organizations within the project)and strategically execute the project. In addition, the PM will make any turnaround in a
flexible and swift manner, including changes in the project and spin-out of part of theresearch results. NEDO will support the PM's management activities, and the PM will be4authorized to spend the project expenses required for management, such as managementof industrial property rights, international standardization, public relations, and surveys oftechnical trends.
(2) Operation and management of the program
NEDO will in a timely manner endeavor to understand changes in the external
environment, as well as the progress of research and development, and take necessary
measures. For the purpose of operation and management, efficient and effective means
should be adopted, and the following matters should be executed.
(i) Management of the progress of research and development
NEDO will endeavor to understand the progress of research and development, in close
collaboration with the PMs and the relevant research and development implementers. In
addition, NEDO will organize as necessary a Technical Investigation Committee composedof external experts to receive a technical evaluation on a regular basis, thereby having a
constant understanding of the prospects of realization of the targets.
With the discussion at the Strategy Council taken into consideration, in collaboration with
the Ministry of Economy, Trade and Industry and relevant government offices, the progressof research and development will be managed, including strategy, integral promotion of therelated research and development, and interim and post evaluations.
(ii) Analysis of trends in technical areas
NEDO will perform survey and analysis activities necessary for the management ofresearch and development, thereby supporting management by the PD and the PMs. The
PD and PMs will always strive to understand the trends of domestic and overseas researchand development, and swiftly review the portfolio and project, depending on the status of
the progress of research and development. In particular, they will endeavor to understandthe trends of similar research and development overseas, and aggressively promote
recruitment of leading researchers overseas for international joint research.
(iii) Responses to "Scientific and Technical Dialogue with the People"
The PD and PMs will promote two-way communication activities for explaining thedetails of research activities to society in an easy-to-understand manner, so as to obtaincitizen understanding and support, and NEDO will support such activities.

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(iv) Interdisciplinary efforts
Because interdisciplinary efforts such as Ethical, Legal and Social Issues (ELSI) andmathematical sciences are also important for the acceleration and social implementation ofresearch and development, NEDO will offer opportunities for the exchange of opinions
between the PD and interdisciplinary researchers, and establish a system in which the PMs
can obtain support from interdisciplinary researchers, if the PD determines that support for
the PMs from the interdisciplinary researchers is necessary, and that the PMs require suchsupport.
(v) Evaluation of research and development projects
NEDO will have outside experts perform an interim evaluation and a post evaluation ofindividual projects, on the basis of the “Guidelines for Operation and Evaluation ofMoonshot R&D Program”, and the “Regulations for Execution of Technical Evaluation”. Theinterim evaluations will be performed in FY2022, FY2024, and FY2027, while the post
evaluations will be performed in FY2029. If NEDO determines that any evaluation shouldbe performed earlier, the appropriate timing will be determined in advance. As for projects
that are scheduled to end in the fifth year, the evaluation performed in the fifth year willserve as the final evaluation. NEDO will report the results of the evaluations of outside
experts and of its own to the Strategy Council, and to the Ministry of Economy, Trade andIndustry, and decide whether to continue, accelerate/decelerate, modify, or discontinue theprojects (including amendment of the Portfolio) in consultation with the PD, taking into
consideration the results of the evaluations, and advice from the Committee.
If all or part of a project is discontinued as a result of the revision of the Portfolio, NEDO,
the PD and the PM will provide support so that derivative research results that have beenobtained may be utilized for other programs, or research and development projects.
The manner in which the results of external evaluations and self-evaluations are reflectedon continuation, acceleration/deceleration, modification and termination, etc., of projects(such as revision of the Portfolio) will be externally published.
3. Execution period of the programThis program will be executed from FY2020, for a maximum period of ten years.
4. Matters concerning the evaluation
NEDO will have outside experts perform a systemic evaluation of the entire program on
the basis of the “Guidelines for Operation and Evaluation of Moonshot R&D Program”, andthe “Regulations for Execution of Technical Evaluation”. Interim evaluations will be6performed in FY2022, FY2024, and FY2027, while the post evaluations will be performed in
FY2029.
In the fiscal years when no external evaluation is performed, self-evaluation will be
performed.

5. Other important matters(1) Handling of technical results of research and development(i) Dissemination of technical results
With the focus being put on future social implementation, an open/closed strategy
engaging the industrial world will be introduced, commencing with the research anddevelopment phase. In addition, spin-off of the research results that are derived will be
actively encouraged.
(ii) Efforts for standardization
The interim evaluations will make clear whether future international standardization
should be proposed or not.
(iii) Policy for handling (affiliation, management, etc.) of intellectual property rights
In principle, all of the intellectual property rights concerning the technical results ofresearch and development will belong to the Entrustee, under the provisions of Article 25of the Statement of Operational Procedures for New Energy and Industrial Technology of
the New Energy and Industrial Technology Development Organization. As for overseasorganizations, 50 percent or more of the shares of intellectual property rights obtained
through execution of the research shall belong to NEDO. The PMs will establish a policy
for utilization of intellectual property rights, focusing on utilization towards the realizationof NEDO’s MS Goal.
(iv) Operations on IPR management
The Basic Policy for IPR Management in NEDO Moonshot Research and Development
Programs will apply to this program.
(v) Operation on data management
The Basic Policy for Data Management in NEDO Moonshot Research andDevelopment Programs will apply to this program. In addition, the PD and the PMs will
promote advanced data management, including promotion of the exchange of7

information amongst researchers, and the storage, sharing, and publication of researchdata.
(2) Amendment of the Basic Plan and Policy for amending the Basic Plan
While comprehensively considering changes in situations both within and outside of the
projects, such as the status of the progress and the results of evaluations of the researchand development, social and economic situations, domestic and overseas trends ofresearch and development, trends of policies, and the situation of procurement of researchand development expenses, etc., NEDO will take measures as necessary, including
revision of the project basic plan.
(3) Basis law
This program will be executed in accordance with Item 2, Article 15 of the Act on the New
Energy and Industrial Technology Development Organization.
6. Revision history of the Basic Plan
Established in February, 20208