Challenge to Financial Reconstructionin Osaka University
Tetsuo Ogawa, Ph.D.
Executive Vice President
OSAKA UNIVERSITY

What kind of place is Osaka?
Osaka – Vibrant and Dynamic
 Population: 8.8 million
 Ratio of foreign resident: 10%, the second to Tokyo, mostly forstudy and intellectual/international affairs
 Sharing 20% of Japan’s gross domestic products (2nd largest) 70% of total import and export businesses are with Asia

Entertaining&Industrialized

Friendly&Open©Osaka Convention & Tourism Bureau

1Osaka University: campuses
A national comprehensive university with11 schools, 16 graduate schools, 30 education & research facilities, and 2 hospitals
Toyonaka Campus 441,383㎡

KOBEKYOTOOSAKA

Minoh Campus 140,400㎡

NARA
Suita Campus 997,071㎡

Nakanoshima Center
1,000㎡

KIX2

Osaka University at a glance
The number of students, faculty, and staff
The largest
in national universities

Students

Faculty and staff
3

Osaka University at a glance
Budget scale of Osaka University
Budget of 2016 fiscal year
in hundred millions of JPY(in millions of USD)

4

Reduction
in management expenses grant
1.0%～1.8% reduction per year due to a state policy（in hundred millions of JPY）

ｰ 41 hundred millions of JPY for 11 years※※※ due to reducing salaries

5Settlement of accounts（in hundred millions of JPY）

2004FY

Total 1,197

Grants andEndowments
52
4% Others
University‐
21
Industry
2%
Collaboration,etc.
External
Management
195
Sources ofMiscellaneous
Expenses
Funding
16%
Revenue
From the22%
Grant
11
Government
554
Self‐
1%
48%
46%
generated
Hospital
Income22430%
19%Tuition
126 Funds for
11% Facilities
141%

2015FY

Total 1,486

Grants andEndowments
83 Others
6%
48
University‐
Management
3%
IndustryExpenses GrantCollaboration,
External
467
etc.
Sources of31%
228
From theFunding
15%
Government
24%
Miscellaneous
38%
Revenue
Self‐48
generatedFunds for3%
IncomeFacilities
38%
25
Hospital
Tuition Funds for 2%
385
129 Education &26%
Research9%
73
5%Management expenses grant ‐15.7％
University‐Industry collaboration +16.9％
Hospitals income +71.9％
6

Reduction of non-personnel expenses（in hundred millions of JPY）

Nonpersonnel
expenses

Personnel
expenses7

An action implementedFlexible budget system over multiple fiscal years
 Supporting for management of the departments.
 Adjusting budget allocating over multiple fiscal years.
（image of adjusting）（in millions of JPY）
2016

2017

2018

Dept. A-1055

Dept. B-5-5-5Dept. C

8050

HQ-65

-50

Amounts

000

2019

2020

2021

Amounts
05

100-50

-40

-40

050

35

30

00000

○ This system can invest in new capital in 6 fiscal years.
○ We can carry forward budgetary appropriations to following years.
○ We can accelerate the implementation of the budget.
8Task 1: Strategic allocationof internal resources An office to implement a high level of business management basedon analysis of data and evidences.（“Office of Management andPlanning” founded on Apr. 2016） Securing the purposive budget to realize “OU Vision 2021” bycreating the strategic resource allocation system through “choosingand concentrating”.
 In order to realize not “equal” but “fair” resource allocation, weneed to set up the objective indicator based on evidences.

Shaking off
routine equality
Strategic resource
allocation
Management resource

Department A

Department B9Task 2: Expanding university-industry
co-creation projects
 Creating the new system aiming at realizing open innovation from aphase of fundamental research as “University-industry co-creation”.

 In order to expand joint
research, we need further
cooperation with industries.
 We are making an effort topromote “visualization” about
indirect expenses.
10Research Alliance Laboratories
FY2011
FY2006
FY2000

Joint共同研究講座
Research Chair

Blanket collaboration
組織連携with company

委託研究Contract
Research(Joint Research)(共同研究）

Expansion of Joint Research Chair
Introduce industry atmosphere into campus !
‐More than 10 industry researchers arepermanently stationed‐Nurture researchers by university‐industrycollaboration‐Research to start up new business‐Continue collaboration with university
researchers systematically and smoothly

Joint Research Chair

Osaka University

Industry etc.

Provides researchers,
facilities etc.

Provides funds,researchers, researchmaterials etc.

Joint Research Chair/Joint Research Division Duration of 2 to 10 years
 Dedicated to joint research Agreements with emphasis on useof intellectual property
 Jointly operated by investing
enterprise and university• Osaka University• Investing Enterprise (Temporary Transfer)• Other Organizational body

1 Prof. or Assoc. Prof.
1 Assoc. Prof. or Assist. Prof.
--------------------------------------------------Enterprise Researcher
Post Doctorate, Graduate Student
Supplementary Prof. or Assoc. Prof. etc.
Secretarial function

Selection

11

The World's most innovative universities(Thomson Reuters, 15 Sep. 2015)
http://www.reuters.com/article/2015/09/15/idUSL1N11K16Q20150915

The first in Japanese universities
Rank

University

Country

Score

Rank

University

Country

Score

1

Stanford University

USA

1,685

16

KU Leuven

BELGIUM

1,453

2

Massachusetts Institute of TechnologyUSA

1,671

17

Duke UniversityUSA

1,441

3

Harvard UniversityUSA

1,609

18

Osaka UniversityJAPAN1,429

4

University of Washington

USA

1,576

19

Johns Hopkins University

USA

1,424

5

University of Michigan SystemUSA

1,562

20

California Institute of Technology

USA

1,420

6

Northwestern UniversityUSA

1,558

22

Kyoto University

JAPAN

1,411

7

University of Texas System

USA

1,557

8

University of Wisconsin System

USA

1,548

24

University of Tokyo

JAPAN

1,402

9

University of Pennsylvania

USA

1,519

39

Tohoku University

JAPAN

1,284

10

Korea Advanced Institute of Science & Technology

SOUTH KOREA

1,515

51

Tokyo Institute of Technology

JAPAN

1,213

11

Imperial College London

ENGLAND

1,478

58

Keio University

JAPAN

1,181

12

Pohang University of Science & Technology

SOUTH KOREA

1,470

13

University of California SystemUSA

1,469

81

Kyushu University

JAPAN

1,090

14

University of Southern California

USA

1,46289

Nagoya UniversityJAPAN

1,066

15

University of North Carolina Chapel Hill

USA

1,460

98

Hokkaido UniversityJAPAN

1,021（The main index）

１．Patent Volume
２．Patent Success
３．Global Patents
４．Patent Citations
５．Patent Citation Impact

６．Percent of Patents Cited
７．Patent to Article Citation Impact
８．Industry Article Citation Impact
９．Percent of Industry Collaborative Articles
１０．Total Web of Science Core Collection Papers
12Task 3: Raising of foundation (endowment)“Osaka University Foundation”
 Established on May, 2009 To strengthen our sustainable fiscal basis
 Liaison office for Osaka University funds(dedicated staff: academic staff 2, administrative staff 6)
To raise the Osaka University Foundation:
 Expanding our liaison office Creating the network of our supporters, alumni, etc.
 Building up donation culture by enhancing public relations activities

Innovation!

We just make it goal tostrengthen our fiscal basisby raising fund toward
the 100th anniversary !
13

Task 4: Cutting down expenditure
Enhancing cost reduction
 Cost reduction by visualizing outgoing (introducing the managementaccounting).
 Removing some overlaps by restructuring organization.
 Reducing payroll/personnel expenses (promoting “cross-appointment”
employment, expanding the annual salary system, managing thepersonal effort rating).
 Quitting the projects (scrap-and-build policy).

Issues we have to solve:
 Securing a strategic budget in our headquarter Building up our cost consciousness
 Verifying a validity of outgoing, considering character of eachdepartments
 Gain all member’s understanding of organizational restructuring

14