KSU-HONDA FOUNDATIONInternational Symposium
Partnership for Innovation
The experience of Saudi Arabia and Japan
キングサウード大学（KSU）
・本田財団共催
国際シンポジウム 2014

イノベーションのためのパートナーシップ
サウジアラビアと日本の経験

A R e p o r t o f K S U - H O N DA F O U N DAT I O N I nte r n at i o n a l Sy m p o s i u mFor Publication
The present report is an account of the remarks and speeches from the international symposium entitled“Partnership for Innovation — The experience of Saudi Arabia and Japan” held in Riyadh, Saudi Arabia on
December 17th, 2014.
The symposium at this time was jointly organized by King Saud University (KSU) and Honda Foundation.
Founded by King Saud bin Abdulaziz in 1957, King Saud University is Saudi Arabia’s premier University,and one of the top tertiary institutions in the region. With a wide range of colleges, advanced research
centers, and collaborations with distinguished researchers around the globe, King Saud University isequipping the nation’s future leaders.
The goal of the symposium was to discuss how to draw a roadmap towards a bright future of Saudi
Arabia, and how Japan can be supportive in this context, mainly focusing on the experience of Japan in
its industry development as well as ideal industry-academia-government relationship. Speakers literally
from industries, academia and the government provided insightful observations and opinions, having
the audience mainly from faculty members and students at KSU and its affiliated organizations. The
first session of “Industrial and Human Development,” reviewed the history of industry development inJapan to look for lessons to be shared. Then in the second session of “Innovation, Culture and Spirits,” wetalked about innovations backed by corporate culture and spirits. And finally, the last session regarding“University-Industry-Government collaboration” discussed how the collaboration among various sectors
should work.
It was fortunate that the symposium was coinciding with the celebration of 60th anniversary since theKingdom of Saudi Arabia and Japan have established their diplomatic relationship in 1955. We hopethe event had played a role to further enhance the movements toward accelerating human resource
development as well as diversification of the industry for further prosperity of the Kingdom of Saudi Arabia.
At Honda Foundation, its founding prospectus defines that our mission is to contribute to “creating atruly humane civilization.” It is our strong hope that the discussions and friendships cultivated throughthis meeting will contribute to realization of a truly humane society in the future.

Satoshi Matsuzawa
Managing Director, Honda Foundation

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The Experience of Saudi Arabia and Japan
King Saud University, Riyadh, December 17, 2014

Contents
Opening Remarks
Prof. Abdullah S. Alghamdi, KSU Knowledge Industry Eco-system  4
Prof. Ahmed Al-Aameri, KSU Vice Rector, GS & SR  8

Session 1: Industrial and Human Development
Dr. Fumio Kodama, Professor Emeritus, The University of Tokyo
Behind Japanese Industrial Development: Firms’ Absorptive Capacities of Innovation  10

Mr. Satoshi Okumura, Advisor, Furukawa Co., Ltd.
Mining and Japanese Industry  14

Q & A  18

Session 2: Innovation, Culture and Spirits
Mr. Takeo Fukui, Advisor, Honda Motor Co., Ltd.
Advancing Corporate Culture and Spirit to the Next Generation  22

Dr. Eng. Essam Bukhary, Cultural Attaché, Royal Embassy of Saudi Arabia
Challenges of Innovation and Future Design in Saudi Arabia and Japan  27

Session 3: University-Industry-Government Collaboration
Dr. Hirohisa Uchida, Professor, School of Engineering, Tokai University
University-Industry-Government Cooperation and Industrial Innovation  36

Eng. Fuad Mosa, General Manger Technology KSA & Emerging Economies, SABIC
Toward Productive Collaboration between Universities and Industry  42

Dr. Kazuko Matsumoto, Senior Director, R&D, Vision Development Co. Ltd.
Saudi Arabia and Japan Cooperation in Science and Technology: from Universities to Industries  47

Closing Remarks
Dr. Hiroto Ishida, President, Honda Foundation  54

Opening Remarks
Prof. Abdulloah S Alghamdi
KSU Knowledge Industry Eco-system

Prof. Ahmed Al-Aameri
KSU Vice Rector, GS & SR

KSU-HONDA FOUNDATION International Symposium
3 experience of Saudi Arabia and Japan
Partnership for Innovation TheKSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Opening Remarks

Prof. Abdullah S. Alghamdi
KSU Knowledge Industry Eco-system

We are going to talk about the partnership and innovation,

Contents

we hope that we will learn from the Japanese experiencein this regard, we know the Japanese government has

 Kingdom of Saudi Arabia and Riyadh

played a central role in bringing together the industry, KSU Knowledge Development Centers King Saud University (KSU) KSU Knowledge Industry Eco-system International Collaboration - Innovation Eco-System

academia, and society in order to come up with innovative

Innovation Management at KSU

products that can serve better the society. I would like to01

give a quick presentation about the situation here in Saudi
Arabia and KSU on innovation management. Basically thisKingdom of Saudi Arabia

02
Kingdom of Saudi Arabia

event coincides with the celebration of 60 years since theestablishment of political relations between Japan andSaudi Arabia. I’m going to talk first about Saudi Arabia,
it is the only nation that has a coast on the red sea andArabian Gulf, and we are situated in the eastern area,

03

and covering most of the area of the Arabian peninsula.
Basically Saudi Arabia has two holy mosques, in Mecca city

RIYADH

04
KING SAUD UNIVERSITY (KSU)

and Medina. It is a focal point for the Islamic world.
Riyadh is the capital of Saudi Arabia and we have a
population of about 7 million people, and Riyadh basicallyis a metropolitan city that has many heritages.
05

King Saud University is located in the northwestern area of
Riyadh, covering an area of 9 km2, and it is the first instituteComparison between the situation of King Saud University ininternational rankings, 2007 and 2014of higher education. King Saud University basically has

Shanghai Ranking 2007

Shanghai Ranking 2014

The Academic Ranking of World Universities

The Academic Ranking of World Universities

Establishment of the University

In 1957, Prince Fahd announced the founding of King Saud University, establishedin order to,(First in the Arab World)

achieved a leading a position according to international
ranking systems, we are among the best of many

Not Ranked

151-200

QS Ranking 2007

QS Ranking 2014

The Academic Ranking of World Universities

The Academic Ranking of World Universities

Not Ranked

249

Webometrics 2007

Webometrics 2014

“Disseminate and promote knowledge in Our Kingdom for widening the base ofscientiﬁc and literary study, and for keeping abreast with other nations in the artsand sciences and for contributing with them discovery and invention”,
in addition to reviving Islamic civilization and articulate its beneﬁts and glories,
along with its ambitions to nurture the young virtuously
and to guarantee their healthy minds and ethics.

(First in the Arab World)

universities. Also according to the QS ranking 2014 we are

3,062

ranked in 249, and according to the Webometrics we are

356

07

356, we are the top Arabic university in the region. And
as you can see the jump we made from 2007 until now.

King Saud University

The university was established in 1957, with a vision and• 24 Colleges in Diﬀerent Disciplines (Internationally Accredited)• 146 Academic Programs• 62,063 Students• Masters & PhD. Students 8,107• Undergraduate Students 50,328• 7598 Faculty members• Main Campus 9 sq. km.
• 2014 Budget: US $ 2.6 Billion

mission to disseminate and promote knowledge in our
kingdom for widening the base of scientific and literary
study. We have 24 colleges and most of the colleges areaccredited by the international accreditation. We have 146

09

academic programs in different departments, we have

4

06

08

Opening Remarks

more than 60,000 students studying for their master’s andKing Saud University

PhD, we have 7500 plus faculty members and the budget

King Saud University

6 Medical Colleges

for this year is 2.6 billion US Dollars. We have six medical

6 Science & Engineering Colleges

1. College of Medicine
2. College of Dentistry
3. College of Pharmacy
4. College of Applied Medical Sciences
5. College of Nursing
6. Prince Sultan College for Emergency Medical
Servicescolleges, 6 science and engineering colleges. Let me focus
more on the topic, which is related to our activity today,
the knowledge development centers.

Prof. Abdullah S. Alghamdi

1. College of Engineering
2. College of Sciences
3. College of Food and Agricultural Sciences
4. College of Computer and Information Sciences
5. College of Architecture and Planning
6. College of Business Administration

10

As you can notice Saudi Arabia has identified a number of

11Technology Priorities for the Kingdom

strategic areas. We have identified strategic research areas
starting with water, which is important for our country,

Advanced Technologies ofStrategic Importance to theKingdom

Water

Knowledge Development
Centers

oil and gas, space, also information technology,
electronics and communications, energy and environment

Oil and Gas
Space and Aeronautics

Petrochemicals
Nanotechnology
Biotechnology
Information Technology
Electronics and Communications
EnergyEnvironment
Advanced Materials

and advanced materials, these represent strategic research

12

areas for the country. And at KSU we align our knowledge
centers to go with these areas. We have established the

Riyadh Techno Valley

13
King Abdullah Institute for Nanotechnology

Riyadh Techno Valley, which is almost a science parkthat was created in 2007 as the center for knowledge
investment at the university. We also have Riyadh Techno
Valley Company that was established to commercialize theKing Abdullah Institute for Nanotechnology was created in 2007. Among importantfields are energy, water treatment, telecommunications, medicine, pharmacy, food,environment, manufacturing and study the properties of nano-materials - modeling andsimulation of structures in nanotechnology - areas of education and training in various
fields of nanotechnology - the economic, industrial and social aspects related to thenanotechnology industry.

The Riyadh Techno Valley program created in 2007 as a Center for
Knowledge Investment at University and then a Royal Decree was issued tocreate a company, Riyadh Techno Valley Company 2010

knowledge based products of the university, we also have14

the nanotechnology institute for nanotechnology that was15

established in 2007, and specialized in nanotechnology.
Also we have Prince Sultan institute for applying advanced

Prince Sultan Advanced Technology Research InstitutePrince Naif Center for Health Sciences Researchtechnological research that was established in 2008 incollaboration with the Ministry of Defense and Air force.
We have Prince Naif Center for Health science researchthat was established in 2011, to focus more on researches

The Center was established in 2011, to transfer and localize health advanced
technologies in health research in the Kingdom. It has collaborated globally withrenowned research centers, such as Necker Hospital for children in Paris, theFaculty of Medicine at Harvard, The Rockefeller University in States andUniversities of McGill and Toronto in Canada.

The Institute was created in 2008, as a leading national institution for researchand technological development in the areas of defense and national security.

related to the medical sector. We have Advanced

16

Manufacturing Institute. They have good collaboration
with Japanese side. It was established in 2012. Its aim is to

Advanced Manufacturing Institute (AMI)

17
Centers of Excellencebasically expand capabilities and technological facilities to

Ministry of Higher Education adopted in a package of programs that aim to raise
the efficiency of education in the Kingdom of Saudi Arabia. University has four
such research centers, namely:

sell to clients and also provide training opportunities for• Center of Excellence in Engineering Materials• Center of Excellence in Biotechnology• Center of Excellence for Development of Science and Mathematics Education• Center of Excellence in Information Assurance

the students and research test for researchers and faculty
members. We also have 4 main centers of excellence that•••

was approved by the Ministry of Higher Education.

AMI is established in 2012
Expand the capabilities and technological facilities to serve industrial clients.
Provide enhanced training, supervision, and research-based innovative
solutions manufacturing, design and material processing problems.

18

Basically each university has a research center of
excellence, and no other university is allowed to open the19

Sustainable Energy Technologies Center SET

Scientific Societies at KSU

The center was created in 2011 for research and studies in the field ofsustainable energy technologies

The University has 50 scientific societies in various administrative,
medical, scientific and engineering fields. The headquarters complex isbeing created at Riyadh Techno Valley

same research center in the same area. We are lucky tohave 4 of those centers. One is for information security,and the other one for engineering materials,
biotechnology, and also for the development of scienceand mathematics education. They also came up with some20

patents, some of them managed to commercialize theirproducts. There is also the SET, which is the Sustainable
Energy Technology center, which specializes in conducting
research in renewable energy, wind energy, solar energy,
and all types of alternative energies.

521

Opening Remarks

Prof. Abdullah S. Alghamdi

We have also a number of scientific societies, around 50 scientificsocieties in the university.
Mentioning those knowledge base centers, now we have a big challenge

Knowledge Industry Eco-system

to transform these knowledge base products to more commercialized
products for the benefit of the society. We came up with a framework. We
call it the knowledge industry ecosystem framework that can manage
the innovation from the earth of the innovative idea, passing through

KNOWLEDGE INDUSTRY ECO-SYSTEMKing Saud University
University .. Society .. Industry ... Collaboration Towards Knowledge Industry

Society Partnership

Industry Partnership

Investor

RVC

IP Reg. Off.
KD Centers

Other
Companies

Industry
Academic Dept.

CoE
Incubators

Research Center

Individual

International
Expo

Research Chair
InstituteStudies Center

Sponsors

Publications

Entrepreneur ship Inst.

Unit

RTV

NPST
Awareness

Explorethe development of the prototypes, ending with the commercialization

KIE Management OfficeSocietyInnovate

Under KIE management and inside the university

E-Portal

Evaluate

International
University

Business Development

Protect

MarketingCommercialize

Out of KIE management and inside the university

InvestOutside the university

22

of knowledge-based products. As you can see this is the framework that
we follow here at KSU. The centers that we just mentioned come into
this area. We call them knowledge development centers that can cover
the strategic areas of this country. Basically we have this big dark blue
boundary that separates the internal components of this university fromthe outside wall. In the outside we have the society, the industry.
So basically the university is required to serve the society, getting
help from the industries in order to develop and eventually come up
with commercialized products that can be investable products for theinvestors. Here we start a triangle partnership with the university, thesociety, and the industry. Once we identify the need from the society, we
form this triangle partnership. We ask one of our specialized knowledge
development centers to collaborate with the industry and the society,to come up with innovative products. Once they innovate under thesupervision of the innovation center, we have innovation centers thathave different units in various colleges, we have 12 innovation centersin the university, and those centers supervise the innovation processes.
Once we come up with a product we evaluate it, then we protect that
product through IP Registration office, we have an office here called
IPTL, which is Intellectual Property Technology Licensing office. They
are responsible for registering the product and also negotiating thepossibility of licensing the technology to a third party. Then it comes tothe incubation stage, we have an incubation center that can help the
incubatee in order for it to be commercialized. Then we have the investors
who should be able to invest in our product. Having this process makeit easier for the investor to invest in a guaranteed product that is basedon the real need by the society and also utilizing the experience of theindustry. Normally the industry will be very keen to invest in that product.
So basically our processes go like this. We explore the needs, we innovate,evaluate the innovation, then we protect it through our IPTL office, we
commercialize it with the help of the incubator and invest in it.
In order to facilitate this, we came up with the innovation center as I

Innovation Center

mentioned before. It is responsible for helping the innovators to growup their invention. Basically the center was established in 2008. We areplanning to have 12 innovation units. Currently we have 3 units in theengineering colleges, and the medical colleges and also for the female
section. Recently they have achieved a number of international awards
from different international exhibitions. And also during these exhibitions
we have the interest of some international investors in our inventions.

6

The center was established in 2008, to encourage creators to contribute tosociety, and converting innovative ideas and inventions into products ofeconomic value.
• 12 Innovation Units• Three Innovation Units under construction• Engineering and Scientific• Medical Fields• Female Center.

23

Opening Remarks

Also we have IPTL as I mentioned. They are responsible for registering
the university owned IPs. And also we encourage external inventors
to come and register their inventions with our university as part of ourcommunity services. And also the center negotiates with the investor in

Prof. Abdullah S. Alghamdi

International Scientific Awards for Innovation and Inventions(110 Awards)
For the year 2011:23 awards at Malaysian International Exhibition, 28 awards at Geneva
International Exhibition, 15 Award at British International Exhibition
For the year 2012:24 awards at Malaysian International Exhibition, 19 awards at Geneva
International Exhibition. First place in the competition landmine detector
robot under the auspices of the United Nations

order to license the technology owned and developed by the university.
We have registered so far more than 550 patents, 40% of which are24

registered in the U.S. Recently we have been awarded the certificate. We
are among the best 100 international universities registered in the U.S.
patent office.

Intellectual Property and Techno Licensing Program (IPTL)••••

IPTL was established in 2008
Registration of University owned IPs in local and international IP oﬃces.
Negotiation of Technology Licensing
550+ patents, 40% of which are registered in the U.S.

Also the incubation, we celebrated some time ago, the establishmentof a startup company with one of our students or graduates,
and he is now commercializing his products.

25

Finally we expect from our guests our colleagues from the Japanese side
to help us with activate this triangle of partnership with the university
and the Industry and society as a focal point for this partnership. I know
the Japanese side has excellent and successful experience with bringing

Riyadh Technology Incubation Center
The center has incubated many projects and among them is ‘Call Tech’, first
incubatee, Khalid Al-Zahrani, a graduate of King Saud University in 2008, and now
has a company in partnership with Riyadh Valley in the same field

those 3 partners together.
With this I would like to end my presentation. Thank you for listening.
26

Our expectation…
The Japanese experience on how to make the Innovation Triangle work..

University

Society

Industry27

7

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Opening Remarks

Prof. Ahmed Al-Aameri
KSU Vice Rector, GS & SR

I would like to welcome our distinguished guests from Japan.
And we are celebrating the constructive, effective and great relationship between Japanand Saudi Arabia. And we the Kingdom of Saudi Arabia appreciate this relationship andwe admire what our friends in Japan have accomplished in terms of the advancement oftechnology and science and also helping the humanity. And we would like to strengthen
this relationship. Between the government and people of Japan and Saudi Arabia we havea very good relationship, and we hope to extend this relationship to be more scientific interms of transferring the knowledge, and how we can construct a relationship between
KSU and Japanese universities, companies of Japan with companies here. I understandthat there is a great opportunity here to have a constructive relationship.
We think we have the ability to really make a good relationship between JapaneseIndustries, Japanese universities and those of Saudi Arabia. I’m sure that my colleagues
here and KSU really want to strengthen the relationship with our friends in Japan.
My colleagues are very enthusiastic, we talk about how we can strengthen thisrelationship.
But we need to transfer this talking into real, actual relationship.
We at KSU are looking forward to seeing this in reality. I hope you enjoy your visit to KSU.
I would also like to thank you for the presentation that you will be giving. And I am surethat our colleagues here will be very cooperative and also effective in terms of making
decisions.
We hope you enjoy the nice weather that we have today in Riyadh. And I’m sure that wehave good weather compared to Japan. I know that now it is very cold there. So pleaseenjoy your stay and make yourselves at home. Thank you for coming and participatingwith us. And I hope that we can continue to meet in the future.

8

Session 1:

Industrial and
Human Development
Dr. Fumio Kodama

Professor Emeritus, The University of Tokyo

Mr. Satoshi Okumura
Advisor, Furukawa Co., Ltd.

KSU-HONDA FOUNDATION International Symposium
9 experience of Saudi Arabia and Japan
Partnership for Innovation TheKSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 1: Industrial and Human Development

Behind Japanese Industrial Development:
Firms’ Absorptive Capacities of Innovation
Dr. Fumio Kodama
Professor Emeritus, The University of Tokyo

Thank you very much for the invitation. I was told that I should talk aboutIndustrial development of Japan. My main title is “Behind JapaneseIndustrial Development” and what was behind that. And the answer is

Honda Foundation Symposium
Partnership for Innovation – experience of Saudi Arabia and Japan• Behind Japanese Industrial Development:• Firms’ Absorptive Capacities of Innovation• Fumio Kodama• Professor Emeritus, University of Tokyo

that there was absorptive capacity of innovation at firms’ level. I will go in• King Saud University, Saudi Arabia• December 17, 9:15 – 9: 40, 2014,detail and I bring new perspectives of learning and innovation.
Here we have a well-cited concept of absorptive capacity by Cohen and01
New Perspectives on Learning and Innovation

Levinthal around 1990 which is defined as a firm’s ability to recognize the• Absorptive Capacity: a firm’s ability to recognize the value of new, external

value of new external knowledge, assimilate it, and apply it to commercial• Rational knowledge developed by one group or institution is embodied• in ways of doing things by other groups or institutions (Brooks: 1966).

ends. But I bring some other more challenging and sort of provocativeargument about technology transfer in particular.

knowledge, assimilate it, and apply it to commercial ends. (Cohen and Levinthal)• a receiver-active paradigm: aggressive receivers can obtain technology frompassive suppliers, but passive receivers are unlikely to obtain technology fromeven the most aggressive suppliers , (Kodama and Morin 1993).
What is fundamental is the notion of “processing relevant information.”

02

That is quotation by Brooks of Harvard University in 1966. He says thatrational knowledge developed by one group or institution is embodied

In this talk,by reviewing the Japanese postwar experiences of industrial development,

in ways of doing things by other groups or institutions. It is old citation

I will try to apply Cohen’s notion of absorptive capacity

but it makes more sense to me because it implies there is a supplier

to different stages of Japanese industrial development

and my argument of receiver-active paradigm
in different contexts.

of knowledge and also a receiver of knowledge. My argument is thattechnology transfer is more analyzed as a receiver active paradigm

03

rather than supplier active. Aggressive receivers can obtain technology
from even passive suppliers, but passive receivers are unlikely to obtain
technology from even the most aggressive suppliers. What this is allabout is the fundamental notion of processing relevant information.
In this talk by reviewing Japanese postwar experiences of industrial
development, I will try to apply Cohen’s notion of absorptive capacity andmy argument of how receiver was active to different stages of industrial
development in different contexts.
The first item of Cohen’s absorptive capacity is recognizing emerging andpromising technologies. Then I will talk about how the Japanese industry
recognized the value of new, external knowledge during the days of

1. Recognizing emerging, promising technologies• How the Japanese industry recognized the value of new, external knowledge
during the days of recovering from the damages brought by the Second World War.

recovering from the damages brought by the Second World War. It is the• A basis of a right judgment was the collective research that had been conducted by
all the companies in an industrial sector. (e.g. steel making sector)

story about how Japanese were active in making right judgment of the• to replace a long-standing open hearth furnace. (1952 and 1953)

best technology in the world. This is an example of the steel industry.
The basis of right judgment on the choice of the technology was acollective research that had been conducted by all the companies in an

10• a new technology invented in Austrian factories of Linz and of Donawitz• It was named after those names of these factories, i.e. LD Converter.
• It was a typical disruptive technology (Christensen 1997).

04

Session 1: Industrial and Human Development

industrial sector. I am talking about the steel-making sector. That was avery drastic technology invented in Austrian factories Linz and Donawits,
which was to replace a long-standing open-hearth furnace technology.
It was invented in 1952 and 1953. And it was named as LD (Linz andDonawits) Converter. And there is a recent more important concept

Dr. Fumio Kodama

there existed many problems to be overcome:• the limitations in applicability to different kinds of steel;• the low-yield due to splash; and,• the dust problems (Nishigata and Kodama, 1999).
No consensus: this technology would become a mainstream of steel-making.
In order to make a judgment, all the Japanese steel companies conducted acollective research by mobilizing all the competences owned by those companies.
A committee for LD converter was established during 1958 - 1966.

05

developed by Christensen of Harvard called a disruptive technology.
But this was a brand new technology so there were many problems to

The investigations made by the LD Committee had resulted inovercome otherwise you cannot use that technology.
First, the limitations in applicability to different kinds of steel,the low-yield due to splash, and dust problems. There was no consensus

developing various problem-solving technologies:
exhausted gas recovery,
the nozzle of multi-holes, andthe bottom blown converter.
• US steel companies hesitant to adopt this uncertain technology.
• The diffusion curves of several countries are in Figure 1.

06

that this technology would become a mainstream of steel making.
In order to make a judgment, all the Japanese steel companies conducted

Figure 1. International Comparison in Diffusion of LD Convertor

a collective research by mobilizing all the competences owned by those

U.S.

W. Germany

Japan Total

U.K.

USSR

Nippon Steel100

companies. And for this a committee for LD converter was established

90
80
70
60

during 1958 to 1966. And the investigations made by that Committee

50

had resulted in developing various problem-solving technologies.

10

40
30
20

0
1955

56

57

58

59

60

61

62

63

64

65

ＬＤ Committee initiated

66

67

68

69

70

71

ＬＤ committee terminated

These were exhausted gas recovery, the nozzle of multi-holes,
and the bottom blown converter. US steel companies were greater at thattime. However US steel companies were hesitant to adopt this uncertain

07
What should be noted in this LD committee

technology. So as a result the diffusion curves of adoption of this LD• is their rule in which all the information will be available

converter of several countries are as shown in Figure 1.

• without respect to whether the information is patented or not.

• for free to every member of the committee• Out of 111 intellectual property rights applied by steel companies,• 51 patents had been publicized for free among the members.

The thing that should be noted in this LD committee is that they had

08

their rule in which all the information will be available for free to every
member of the committee without respect to whether the information
is patented or not. Indeed out of 111 intellectual property rights appliedby steel companies, 51 patents had been publicized for free among
the members. This is a more detailed chart. There is the patent rights,

Table 1. Intellectual Properties Applied by Largest 7 Companies and Free Charged
PatentRightsUtility
Model
Rights

Total
Subtotal Ingot
Property of Free SteelRightsChargeNozzleLance

ExhaustOthers
Gas

Brick
Wall

Nippon K.

33

3

36

24

23

3

3

Yahata

32

13

45

9

9

5

1

3

3

21

9

Fuji

14

6

20

9

7

5

1

5

2

Kawasaki

1

1

2

1

0

0

0

0

Sumitomo

1

1

2

2

1

0

1

0

0

Kobe

1

3

4

4

3

0

0

1

0

Taiheiyo

2

0

2

2

1

0

0

0

1

Total

84

27

111

51

2

utility model rights, total property rights, subtotal of free charge and so09

on. So we can generalize this experience that the demands for newly
emerging technologies were articulated, and by collective researchthese articulated technological problems were solved collectively. So thisWe can generalize this experience as follows:• the demands for newly-emerging technologies were articulated

successful experience put the Japanese steel industry into a leadership• by the collective research, and these articulated technical problems

position in the world in the following years, and it is still valid.

• put the Japanese steel industry into a leadership position• were solved collectively. Thus, this successful experience• in the following years in 1970s and 1980s.
• And it is still valid at the present time.

10

This second story has something to do with Honda. This is technological
profiting in new industry. As a technology diffuses throughout society,2. Technological Profiting and New Industry Creation

its widespread use may surpass a certain threshold of environmental• As a technology diffuses throughout society, its widespread use

capacity. The government enacts new regulations, changing the rules• Government enact new regulations, changing the rules of competition.

of competition. That may give newcomers an opportunity, like Honda atthat time, if they are aggressive enough technologically. When diffusion
rate of cars surpasses one car per two persons in the US, people began torecognize a societal disadvantage of car usage – pollution. The Japanesecontribution to develop this kind of technology is obvious.
Then this is an interview I had with Mr. Soichiro Honda. He said there are
two sides of the same coin. That is two oil crises made society becomeaware of another disadvantage beside pollution -- the waste of precious

11• may surpass a certain threshold of environmental capacity.
• This may give newcomers an opportunity,• if they are aggressive enough technologically (Kodama, 1984).
• When the diffusion rate of cars surpassed one car per two persons,• people began to recognize a societal disadvantage of car usage -- pollution.
• The Japanese contributions to develop this kind of technology are obvious.

11Session 1: Industrial and Human Development

nonrenewable resources. The Japanese government successively raised
the emission standards. The upper limits for emissions were drasticallyreduced in 1970s. And Japanese car manufacturers made substantial R&D
effort, and began to produce improvements in fuel economy after 1979.
Emission standards and improvement in fuel economy were different,

Dr. Fumio Kodama

Two sides of the same coin
• Two oil crises made society become aware of another disadvantage to theautomobile -- the waste of precious nonrenewable resources.
• The Japanese government successively raised the emission standards.
• The upper limits for emissions were drastically reduced between 1960 and 1978.
• Japanese car manufacturers made substantial R&D investments,• which began to produce improvements in fuel economy after 1979.
• Emission standards and improvement in fuel economy were
• two sides of the same coin as far as R&D efforts were concerned.

12or that is two sides of the same coin as far as R&D efforts were concerned.
That is in what I interviewed with Mr. Honda when he came to ouruniversity, graduate school of policy sciences of Saitama University at thattime. Mr. Honda directed the company’s researchers to focus on a deeper
understanding of the burning processes of fuel inside the cylinder. It
resulted in the invention of CVCC. In hindsight, burning fuel cleanly istechnologically equivalent• Souichiro Honda directed the company's researchers to focus on• a deeper understanding of the burning process of fuel inside the cylinder.
• It resulted in the invention of its CVCC engine (Lee and Kodama, 2006).
• In hindsight, burning fuel cleanly is technologically equivalent to• burning it efficiently, in designing the engine configuration.
• Newcomers benefit from changes in regulation but also profit technologically(Kodama 1995)

13

technologically equivalent to burning it efficiently. So newcomers reallytake benefit or technological profit from that kind of changes in situation.
But then from CVCC to the three-way catalyst, the scheme oftechnological competition, thereafter, had shifted from intra-industry tointer-industry competition when the problem had shifted from CVCC tothe three-way catalyst. The converter was designed to remove exhaustpollutants such as those (on the screen). And the conversion efficiency of
the tree-way catalyst differs among the different kinds of pollutants.
I got some data from Nissan and this is conversion efficiency. In this area,
narrow range? The auto industry thought that they could do this control
by electronics.

• This scheme of technological competition, thereafter,• had shifted from intra-industry to inter-industry completion• when the problem had shifted from CVCC to the three-way catalyst.
• This converter was designed to remove exhaust pollutants such as• carbon monoxide, unburnt hydrocarbons and nitrogen oxides.
• The conversion efficiency of the three-way catalyst• differs among different kinds of pollutants as shown in Figure 2.

14
Figure 2. Effect of changing air/fuel ratio on the conversion efficiency of three pollutants
（％）
100

HC
（
％）
Conversion Efficiency

the conversion efficiency is quite high. Why don’t you just control in thisfrom CVCC to the three-way catalyst

CONO

Keep this Range0

Anyway the chemical industry assumed that this couldn’t solve the

14.2

14.6

15.0

Lean

Air/fuel Ratio

Rich

（％）

Source: Nissan Motors Co.

15

problem, by deleting all three kinds of pollutants all at once.
But the auto industry interpreted this diagram in a different way.
The conversion can be kept high all through different pollutants, if we cankeep the air/ fuel ratio in a certain range, this catalyst should work well.
This competition that is inter-industry, has created a new industry, called
the catalyst industry. In fact the catalyst manufactures association was

Inter-industry competition and New industry creation• The chemical industry assumed that this cannot solve the problem,• i.e. deleting all the three kinds of pollutants all at once.
• The auto industry interpreted this diagram in a different way:
• the conversion can be kept high all through different pollutants,• if we can keep the A/F (air/fuel) ratio in a certain.
This completion, had created a new industry, the catalyst industry.
The catalyst manufactures association had been established in 1967.
Now covers 60 companies (16 companies are full membership)16

established in 1969 and now covers 60 companies in the membership.
Anyway the third subject is more related to science. That is technologicalplatform for assimilating new science. Reflecting the intensified USJapan trade friction in the 1980s, the government announced that they

3. Technological Platform for Assimilating New Science• Reflection upon the intensified US-Japan trade friction,• The government announced that they are trying to change themselves• from the “technology-based nation” to “science-based nation.”• This concept is so subtle that the science-technology interaction isincomprehensible to government as well as to corporate managers.

are trying to change themselves from the “technology-based nation”• A case study of TOTO Ltd., a Japanese manufacturer of sanitary ware,

to “science-based nation”. It’s okay but it’s very difficult. This concept• regenerated its main business, and; how the science-technology interaction is• provides us with an excellent example: how the ability for absorbing new sciences• reciprocal between university and industry (Kodama, Kano, Suzuki, 2007).

17

is so subtle that the science-technology interaction is very muchincomprehensible to government as well as to corporate managers.
So here I explain a case of TOTO, a Japanese manufacturer of sanitaryware, provides us with an excellent example of how the ability of newsciences regenerated its main business, and also how the sciencetechnology interaction is reciprocal, not only from university to industry,
but industry get back something new to the university. Then how torealize the value of new science? TOTO had been aware of that. The
water flow in the toilet was their main concern. This is different from a

12

Recognizing the Value of New Science• TOTO had been developing the key technology of• analysis and synthesis of bad smell in their persistent in-house scientific endeavor.
• Bad smells accompany human living (toilet, sweat, tobacco, or garbage odors).
The early construction of a smell simulator provided
TOTO researchers with a kind of experimental platform for appreciating,assessing, and absorbing new smell-related technologies developed in universities.

18

Session 1: Industrial and Human Development

toilet producer that is derived only from the tile producer. They were

The researchers in TOTO gathered air samples andsuccessfully synthesized the smells

more interested in synthesis and analysis of bad smells. And bad smells
come from human living especially toilet. And at an early stage TOTO
constructed a smell simulator that provided an experimental platform
for appreciating every kind of related technologies developed in the

Dr. Fumio Kodama

Hospitalroom

Toilette

Urine

Ammonia000Trimethylamine

0

0

0

Odorant
Nitrogenous family

Sulfurous family

Organic family

Stool

0

Hydrogen sulfide

0

0

0

Methylmercaptan

0

0

0

Acetaldehyde

0Acetic acid

0

Sweat

0

*Data from TOTO website

19

university.
efficient oxidizers and super-hydrophilic property
Fujishima and Honda (University of Tokyo)

And two major inventions were made in photo catalyst.

discovered the photo-catalytic properties of titanium dioxide (Nature 238, 1972).

Fujishima, at University of Tokyo discovered the photo-catalytic
properties of titanium dioxide, and it was published on Nature magazine
in 1972. And also Kawai, another researcher published on Nature.

It produces the efficient oxidizers of organic matter. (Kawai: Nature 286, 1980)
TOTO developed photo-catalytic tiles coated with titanium dioxide.
In 1994, those tiles were brought to market.
The continuing collaborative research between the Fujishima lab and TOTO Ltd.
resulted in the discovery of another unique character of titanium dioxide,
the photo-induced super-hydrophilic property (Nature 388, 1997).

20This is an efficient oxidizer of organic matter. Fujishima is more interested
in producing hydrogen. And TOTO at this stage developed photo-

Super-hydrophilic Property

catalytic tiles coated with titanium oxide, and in 1994 it was introduced
into market. But as you know that oxidizer property is not enough. They
needed a new property, another quite unique property that is the photoinduced super-hydrophilic property, which means water-friendly. That21

was again a brand-new independent scientific finding that was publishedin 1997 on Nature with collaboration with TOTO researcher. This property
has been further exploited by the auto industry and construction

This property of titanium dioxide has further been exploited

industry. With the auto industry it has been used for anti-fogging of side

It has also been exploited by the auto and engineering industries.

mirrors. With the construction industry it is used for hydraulic nature ofso that at the side mirror can perform its function even in heavy rain.

for self-cleaning and anti-fogging of the side mirrors of automobiles
The property is important for the glass industry,
because it maintains the view through glass windows both during and after rain.

glass of buildings.

Several examples of absorption by engineering industries could be mentioned.

22

For the concluding remarks, I have demonstrated that our absorptive
capacities have been upgraded from the simple acquisition of foreign

Various Applications of Super-hydrophilic property【wipe-free mirrors, windows and tiles】

technology, to the response to the enforced environmental regulation,and then proactive exploitation of the emerging scientific discovery.
Finally, this is a little bit of commercial advertisement of our research,more MOT (management of technology) is needed. The valuable

23

information can be obtained through scientific understandings of theexperiences of the advanced countries, not through repeating what we

Concluding Remarks

have done but through what was essential. We need to research on thatand only with scientific understanding we can transfer our experience,
so a joint research might be most effective. Thank you very much.

• I have demonstrated our absorptive capacities have been upgraded:• the simple acquisition of foreign technology;• the response to the enforced environmental regulation;• to the proactive exploitation of the emerging scientific discovery.

24

A more research on MOT (management of technology)• The valuable information can be obtained only through scientific understandingsof the experiences of the advanced countries,• not through repeating what the advanced countries have done.
• For this purpose, a more research on MOT (management of technology) is neededboth in advanced and developing countries,• maybe, a joint research might be most effective.

25

13

19

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 1: Industrial and Human Development

Mining and Japanese Industry
Mr. Satoshi Okumura
Advisor, Furukawa Co., Ltd.

Good morning. Today I would like to talk about our experiences on
mining and Japanese industry. I visited this country for the first time in1976 almost 40 years ago. I was a government official at that time working

Mining and Japanese Industry

on a corporation project, which later grew into a big petrochemical
Satoshi OKUMURA
Furukawa Co., Ltd.

project in Japan. At that time I was much younger than I am now. But
Saudi’s counterpart people were also young and enthusiastic to change
the Saudi economy from oil-monoculture to broader-based industry.
Later I joined private companies. Among them two are mining related

01

companies. One is JFU and the other is Furukawa, which now I belong to
as an advisor. And before I came to Furukawa I was the managing directorof STBC, which is the Japanese counterpart company of SABIC, jointly

Mining : Incubator of Industries

operating SHARQ. And I was also a board member of SHARQ.

Construction

MetalsMiningI think I might be able to talk about some experiences of Japanese mining
companies, which definitely provided broad bases of Japanese industries.
Mining technology is not just about digging ores and extracting minerals.

MachineryTransportation

Electricity
Chemistry

Mining is a huge civil engineering field with various kinds of machineries.

02

Transportation is a key factor. It’s also a chemical plant to handle
hazardous byproducts. All the electricity needed for these activities
should be supplied. And very often, it has to operate a whole town by

Furukawa
Rebuilding a city,
swept away by
the tsunami.

itself. Mining is nothing but one category of industries, yet it includes
various industries within itself. Thus, mining will provide ideal conditions
as an incubator.
Let me show you some examples. Furukawa is manufacturing various
machines. These are the photos that Furukawa machines were used for03

land elevation of a city that was completely swept away by the tsunami
caused by the huge earthquake 3 years ago.

Furukawa

Furukawa was established in 1875 as a mining company, at the earlystage of Japanese industrialization. The main mine was Ashio coppermine whose peak production was as much as 40% of total Japanese
production. That mine was exhausted and closed already. But based on
the mining experiences, Furukawa now is producing various machines
and materials. Also, Furukawa made many subsidiary companies.

14

Furukawa(mining)
Furukawa Electric(electric wire)
Fuji Electric(appliances)
Fujitsu(computer)04

Session 1: Industrial and Human Development

Mr. Satoshi Okumura

One of them was Furukawa Electric Company, which started as a refineryand soon began to produce electrical wire. And its subsidiary was Fuji
Electric to produce electric appliances. And its subsidiary again was
Fujitsu, engaged in information technologies and producing one of thefastest computers in the world. And if you don’t mind, FANAC, a leading
company of manufacturing robot, is also a subsidiary of Fujitsu.
You can see a good example that the original mining industry has spreadto related industries.
As for JX Nikko-Nisseki, important origin was also copper mine. JX itself
is importing oil from Saudi Arabia. And its repair shop grew into Hitachi,
one of the major companies in heavy industries. Another subsidiarycompany, Toho Titanium is now constructing a titanium sponge plant in
Saudi Arabia with Tasnee.
The origin of Mitsubishi was marine transportation. However,

JX Group (copper)
HitachiToho Titanium

new J/V

Mitsubishi (coal)

Mitsubishi Chemical

SHARQ

TASNEE

SABIC

Sumitomo (copper)
Sumitomo Chemical

ARAMCOin order to supply fuels, it soon entered into coal mining operation.
In order to process coal tar, a chemical company was established. It grew05

into Mitsubishi Chemical Co., which is the main company supporting
Japanese SPDC, jointly operating SHARQ with SABIC. Sumitomo again
originated in a copper mine. It was established to make use of acidbyproduct at the smelting plant. That was the origin of Sumitomo
Chemicals Co., which is now operating Petro Rabigh with Saudi Aramco.
These examples indicate that mining is an ideal incubator for otherindustries. Mining utilizes a wide range of technologies and eachtechnology spread to related fields, making broad base of industries.
But just importing original technologies is not enough forindustrialization. Let us see how Japan absorbed advanced western
technologies.
Meiji Restoration took place around 150 years ago. Before was the eraof Japanese worriers, Samurai. Japanese Samurai government virtuallyclosed our country border; so, we had very limited information about theIndustrial Revolution. We were still living in handicraft manufacturingindustry. But such technologies were supposed to be in rather highlevel. For instance, production of Japanese copper was considered to be
the largest in the world in the late 17th century. The famous economist
Adam Smith wrote about the influence of Japanese copper production
in his book "The Wealth of Nations", published in 1776. Meiji Restoration
was really a kind of revolution in Japan. The main driving force was thepressure from industrialized Western countries. Japan was really at therisk of independence. The new Japanese government decided to open
its door and introduced almost entire system, from advanced technology
to legislative system to catch up the advanced countries. Hundreds offoreign experts were hired directly by Japanese government or private
sector at a high salary. They provided a broad basis for the modernizationof Japan.

15

Meiji Restoration(Before)Close Door Policy
Traditional Handicraft Industry(After)
Open Door Policy
Introduction of Entire System
Foreign Experts
06

Session 1: Industrial and Human Development

Mr. Satoshi Okumura

But, soon the process of “Japanization” began, the struggle to adapt thoseJAPANIZATION

technologies to fit for Japan.
One of the priority areas to introduce western technologies was
education. The Japanese government founded national universities
and invited many foreigners as teachers. Those universities provided
many talented people needed to lead the time. Soon, these educatedpeople began to teach the next generation. The time of foreign experts

Education
Self-sufficient Education
Application on the Site
Traditional Industry
Integration with New Industry
Formation of Supporting Industry

ended within 30 years, rather a short time. By that time, Japan became

07

self-sufficient. Traditional industry was also a key factor in introducing
advanced technologies. In Japan, the accumulation of techniques of
traditional handicraft manufacturing directly contributed in applying newtechnologies. Also, Japanese traditional industries provided an importantbase for supporting industries. Mining was a good example. Traditional
mining masters were incorporated into new mining industry. Thus, newtechnology and traditional industries became mutually complementary.
Many engineers educated in the universities were put into the mines.
The role of engineers at the early stage was to bridge western
technologies to traditional Japanese mining masters. Soon,the role changed more to improve those technologies, as frequent
modifications or new applications were needed in the mine,
to cope with the change of natural environment. But in either case,their main work field was on the site, not in the office. It is considered to
be unique that Japanese engineers tend to stay on the site rather than in
the office. I know that there are merit and demerit for this kind of“On-Site-ism”, but it is absolutely important in manufacturing to keep
plant in best condition and further to improve it. Later, at the beginningstage of SHARQ, we invited all the Saudi engineers and trained them ofthis “On-Site-ism”. I think SHARQ is still keeping this asset.
One more difficult job was the involvement of common people in theprocess of industrialization. Fortunately, the literacy rate was very highin Japan. Virtually 100% of Samurai class can read and write, and evenin a common class, around 50% of male as an average can read or write,
or as high as 80% in metropolitan area. Compare 30% in London or 10%
in Paris at the same time, it is exceptionally high. This high literacy rate
enabled Japan to absorb the new technologies and to supply qualified
workers. In order to realize such a rapid modernization, it was also
important that all the people understand and participate. Many of thewestern knowledge and its cultural background were translated into
Japanese, so that ordinary people could read. It became a common
knowledge. These translated knowledge, along with the high literacy
rate, enabled those common people to become qualified workers.
At the same time, to keep the traditional identity became a very
important issue. Western culture was quite different from Japanese one.
We did not deny nor select them, but accepted them rather freely.
Then we modified them to fit for our culture. “Wakon Yosai”, which means“Japanese Spirit, Western Knowledge”, was a slogan at that time.
Let me talk about the Japanese industrialization from a different aspect,
population problem. In the second half of the 19th century,

16

Involvement of Common People
High Literacy Rate
Qualified Labor
Diffusion of Knowledge through Translation
Common Knowledge
Identity Problem
Wakon Yosai(Japanese Spirit, Western Knowledge)

08Session 1: Industrial and Human Development

Japanese population was around 30 million, almost the same number

Population Change

as England at that time. But England increased its number gradually,
utilizing the fruits of the Industrial Revolution. Even so, England had
to suffer from severe unemployment problems such as the Luddite
movement. Japan was forced to face a sudden competition from outside.
Japan could not let her people lose their jobs. To make those people

Mr. Satoshi Okumura

140

120

100

80

Japan
England
Saudi

Meiji
Restoration
LudditeMovement

60

40

20

participate in the Japanese industrialization was the best and only

0
1700

1750

1800

1850

1900

1950

2000

2050

solution at that time.

09

So, what kind of suggestions can we have from those experiences?
One of the important things is the higher education focused on basic
principle. This would become a solid foundation of future applications
and the key to the technological independence. The other thing which
I think very important is the education of the common people. If you
see any country, most of the people are within the range of one sigma
or two. How to utilize those average people is quite important. It will
have two positive effects. One is to strengthen the basis of wholeindustries including supporting industries which are vital for future Saudi
economies. And the other is to help Saudi young generations to havetheir own jobs. But in order to bring out those common people, say, as
the masters of techniques, there should be a common perception within
the society that they are to be respected. One last thing I would like tosay is the “On-Site-ism”, participation of engineers on the manufacturingsite. When Mrs. Margaret Thatcher came to Japan, she visited a factoryand surprised that many university graduates were working on the siteof the factory. It is quite important if you want to make an improvement,
especially in the manufacturing industry. Improvement is a key factor
of competitiveness. I think each country would have a different path for
its development, based on the different environment. But I will be very
happy if you extract some principles from our experiences and modify
them to fit in your country. Thank you very much.

17

Suggestions(1) Higher Education(2) Education of Common People(3) On-Site-ism
10

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 1: Industrial and Human Development

Q&A

KodamaI would like to add one thing. I forgot to mention Honda Foundation’ s contribution inawarding the three-way catalyst inventor. As you know Honda made a breakthrough with
the CVCC and then technology changed from CVCC to three-way catalyst. And in 2002,
the British inventor Cooper was awarded by Honda Foundation.

Q

Ohayougozaimasu. I have a one quick question for the first speaker. A very
interesting story about the comeback of the steel industry. But you mentioned that
50% of the patents were shared. So what were the criteria for the company to shareor not share the patents with others?

KodamaWell, it was a special arrangement at that time. The objective was to make a right judgmenton the emerging technology. The LD converter, the world didn’t not know whether it
was going to be a mainstream technology in steel making or not. They established acommunity to evaluate and solve the problem. And then when that committee expanded,
all the patent they owned or half of that was shared. The point is the purpose at that time
was to diffuse the most efficient technology throughout the Japanese steel industry. Not tocompete with each other and hide it. As you know the US did not find this interesting.

Q
KodamaYes but why half of them? Why not all of them?
I don’t know. You have to check the details. But I think 50% is good. 100% means
everything open. And maybe not all patents were valuable. The research is to evaluate theemerging technology, or technology that did not exist before.

Q

I am an associate professor of cyber security. I have a question for the first speaker
about the excellent knowledge. Are you referring to open innovation? And secondly
you spoke about sharing knowledge and patent without licensing. Is this to open
information so society can benefit from whatever intellectual property was there?

KodamaYes, I talked about the three stages of development. And patent issue of steel companies
was the first stage, and also that was a collective research. Every company joined in the
research. So as I said, diffusing was the important aspect. The basic spirit of patent isdiffusion. Then second stage for example CVCC is a patent and could not be free for other

18

Q&A

Kodamacompanies. And the technology was later inter-competition rather than intra-competition. So
the patent was very important. TOTO patented a lot I think. But think about some other use ofthat super-hydro property. It’s beyond the visional domain of TOTO, which is sanitary productmanufacturing. I think they organized some association for that technology and they tried todiffuse more through different industries. Of course patents are important. So the talk about freeuse of patents is in the first stage.

Q
KodamaBut what about open source or open innovation?
Open innovation is how to use patents in a wider way, without releasing them to othercompanies. How to use and exploit for many different use. That is the idea of open innovation.
And that is a new argument. Around 1950 there wasn’t such an argument.

19

Session 2:

Innovation,
Culture and Spirits
Mr. Takeo Fukui

Advisor, Honda Motor Co., Ltd.

Dr. Eng. Essam Bukhary

Cultural Attaché, Royal Embassy of Saudi Arabia

KSU-HONDA FOUNDATION International Symposium
The experience of Saudi Arabia and Japan
Partnership for Innovation 21

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 2: Innovation, Culture and Spirits

Advancing Corporate Culture
to the Next Generation
Mr. Takeo Fukui
Advisor, Honda Motor Co., Ltd.

Good morning. It is my great honor to have this special occasion to speakin front of the people of Saudi Arabia.
It has been 23 years since the founder of Honda Motor, Mr. Soichiro
Honda, passed away. However, Mr. Honda’s way of working and way of

Advancing Corporate Culture and Spirit
to the Next Generation

thinking have become the corporate culture of Honda. I am a member of

Takeo Fukui
Former CEO and Advisor
Honda Motor Co., Ltd.

the last generation of Honda associates who directly inherited the spirit

December 17, 2014of Mr. Honda. Today, I would like to explain what I learned from him,01

how I pursued it and how a corporate philosophy can be passed down tofuture generations.
I met Mr. Honda for the first time in 1969, at a meeting for new employees
after I joined the company. I had admired Mr. Honda for a long time, andLessons from Mr. Honda
First contact –at a lecture for new employees

there he was giving a lecture to his new associates. He said somethingthat left a strong impression on me: “Both our automobile and motorcycle
businesses are directly linked to the lives of our customers,” Mr. Honda

Soichiro Honda

said. “Those of you who cannot take responsibility for your own actions
can quit Honda right here and now and go home.” I was struck deeply
by Mr. Honda’s strong message about our commitment to safety. And I

Strong message about commitment to safety“Both our automobile and motorcycle businesses are directly linked to the lives of ourcustomers…”

2

02

communicated the same message to other young associates from time totime during my career.
In 1970, an amendment to the U.S. Clean Air Act, known as the Muskie

Lessons from Mr. Honda
Clean Air Act and CVCC

Act, set strict new standards for tailpipe emissions. The standard seemed
impossible to meet. But without doing it, we could not have succeededwith our automobile business. So, meeting the standards of the Muskie
Act was our biggest challenge. Mr. Honda was the president of theStrict tailpipe emission standard in US set in 1970
Biggest challenge at the time

Mr. Honda came to R&D with difficult homework
Engineers struggled like crazycompany at the time, and he came to the R&D center almost every day.
He would give us difficult homework and return the next day.
If we hadn’t solved the problem, he would yell: “Are you still doing that?
Knucklehead!”
We struggled like crazy every day. One day, my boss said to me:“Mr. Honda is asking if it is possible to treat Nitrogen Oxide usingchemical reactors. Can you try that?” Then he added: “Mr. Honda iscoming tomorrow!” I was, in fact, a chemistry major and I had studied in

22“Treat NOx using chemical reactor ?”Mr. Honda taught us how to approach work
–Try on your own and report your own knowledge

303Session 2: Innovation, Culture and Spirits

Mr. Takeo Fukui

the area of exhaust gas emissions during my college days. So, I thought‘Mr. Honda has an interesting idea.’ But I had only one day!
I conducted every possible experiment without sleeping. But I could notcome up with a practical solution. Mr. Honda came the next day.
And my boss asked me, a rookie engineer, to explain the result to Mr.
Honda. I spoke with caution: “It is possible to treat Nitrogen Oxide with achemical reactor,” I said. “But, according to my calculations, the equipment
will be too big to put in a car.”Mr. Honda said, “Oh, OK.” That was it. I think he saw how exhausted
I looked and trusted that I tried everything possible. And he nevermentioned this research issue again. Mr. Honda wanted to see if people
were making a genuine effort. He could recognize right away if we
depended on someone else’s research. He would go crazy! He made surethat we tried on our own and reported our own knowledge. This is how
Mr. Honda taught us to approach our work.
The last idea Mr. Honda came up with for the Clean Air Act was theCompound Vortex Controlled Combustion, or CVCC technology. This

Lessons from Mr. Honda
Clean Air Act and CVCC (cont’d)
http://world.honda.com/mechanical-illustration/large/09.html

realized lean combustion of the air-fuel mixture. We developed CVCC
engine just two years after the Muskie Act became law.

CVCC realizes lean combustion of the air-fuel mixture
http://www.honda.co.jp/50yearshistory/challenge/1972introducingthecvcc/index.html

It became the world's first engine to meet the 1970 Clean Air Act. It went
on sale in the Honda Civic in Japan in 1973 -- and in the U.S. in 1975.

The last idea for Clean Air Act by Mr. Honda:
CVCC (Compound Vortex Controlled Combustion)

We looked at this challenge as an opportunity. Our success was due

Mr. Honda’s idea, drive and sound decisionmaking led Honda to become a global
automaker
4

mainly to Mr. Honda’s idea, his drive and his sound decision-making.

04

The CVCC technology was key to Honda’s leap as a global automaker.
Among the many contacts I had with Mr. Honda, the strongest memory
involved motorcycle racing. In 1979, I became responsible for developing

Lessons from Mr. Honda
WGP
Responsible for WGP machine development in 1979
Wins the title in 1983

a race motorcycle for the World Grand Prix, now known as MotoGP
motorcycle road racing. I had no experience in this area.
Honda was a dominant force in motorcycle racing in the 1960s. However,
we withdrew from racing for a time. After we returned, we won the WGP
title in 1983. But in the following 1984 season, our newest machine did…Loses in 1984 with the newest machine
Second place in the first race in 1985, but confident to win
the series

not do well. And we missed the title in the main 500cc class.

505

We badly wanted to regain the title.
In 1985, Honda introduced another new machine to make a comeback.
But in the first race, we finished in second place. After analyzing why welost, we were confident we could make the adjustments needed to win
the series. But when we returned to Japan, Mr. Honda came to the R&D
center and asked me about the race. I said: “We finished second.”
The next thing I heard was the ear-splitting voice of Mr. Honda.
“Damn you! Second place is the same as last place.” I almost told him,

Lessons from Mr. Honda
WGP (cont’d)“Second place and last place are not the same!” But I bit my tongue andlistened to him for one hour. Mr. Honda wanted me to understand hisstrong belief that victory is the only worthwhile thing in racing.

“Second place is the same as last place.!”
Victory is the only worthwhile thing in racing

Our team set a challenge that year that had never been done before -- towin the double title in both the 500 and 250cc class with a single rider.
In the 3 rd race of the year we won both classes. Then we received a box

23

Wins both 250cc and 500cc in the third race with a single rider
Letter from Mr. Honda said “I am counting on you.”

6

06

Session 2: Innovation, Culture and Spirits

Mr. Takeo Fukui

of treats and a letter from Mr. Honda. He wrote: “Keep up the good work.
I am counting on you.” I still treasure that letter. And at the end of theseason, we won the first double title in Grand Prix history.
These lessons and way of thinking are what I learned from the founderof the company. The philosophy of Honda would serve as an important

Own Management Decision
Global Economic Crisis in 2008

foundation later, when I made management decisions as the presidentof the company. For example, the global economic crisis that began in2008 became a major turning point for our company. We had to revisit

Essence of things: what should we do to fulfill our responsibility?

the way we built automobiles while preventing the major decline in sales
from having a big impact on our financial results. Honda was facing the

Quick decision to avoid inventory build-up–Postpone new auto plant and stop Acura introduction in Japanbiggest crisis since its foundation.

7

07

As president, I looked deeply into the essence of things. I read again anumber of books written by our founder. And I thought about how weshould maintain a stable business to fulfill our responsibility as a good
corporate citizen. In November of that year, we opened a new auto plantin the U.S. However, our business environment was getting worse by theminute. For a maker of expensive products like automobiles, too muchinventory can be deadly. So, I made quick decisions to postpone thestart-up of a new auto plant in Japan and stopped a plan to introduce theAcura luxury brand in Japan.
Even when taking quick actions to cope with current challenges,
it is very important to foresee the distant future, 50 or even 100 years

Own Management Decision
Addressing fuel price increase and environmental issues

from now. Fuel prices were increasing. And there was a growing needto address environmental issues. So, electric powertrains emerged as
the future direction of the automobile. Thinking ahead, I had to decide
where to invest our resources for the post-recession era. I discontinued F1
racing activities so that we could dedicate more R&D resources to next-

Foresee distant future–Discontinue F1 racing to dedicate more resources to next-generation technologies
See challenge as opportunity

generation automotive technologies and powertrains.

8

08

Just like when we met the challenge of the Clean Air Act, we worked witha positive spirit. We saw this big challenge facing the auto industry as ouropportunity.
Now, let me explain how the current generation of Honda associates isutilizing this corporate culture and spirit. Honda makes many different

Inheritance to Current Generation
HondaJet

kinds of products, but the core direction is personal mobility.
In 1986, Honda began several new fundamental research projects –including aviation and humanoid robotics.
One result is the development of the HondaJet. The first customer
delivery will take place next year. This small-sized jet provides personal
mobility in the sky—something that was always one of Mr. Honda’s
dreams.

24

Project started in 1986
Provides personal mobility in the sky –one of Mr. Honda’s
dream
9

09

Session 2: Innovation, Culture and Spirits

Our engineers adopted a unique airframe with an over-the-wing engine
mount design. A conventional small jet has the engines attached on both

Mr. Takeo Fukui

Inheritance to Current Generation
HondaJet (cont’d)sides of the fuselage. Honda’s over-the-wing engine design eliminates
the supporting structure inside the fuselage—which increases the cabinsize by 30%.
When other companies tried this engine layout in the past,
the air resistance increased. So, the conventional thinking was that theUnique airframe with an over-the-wing
engine mount design –30% larger
cabin size and major air resistance
reduction“Outside-the –box” thinking with clear
vision led to breakthrough10

layout didn't make sense. But Honda engineers never gave up.

10

They conducted experiments over and over again. Finally, they founda “sweet spot” where the engine can be mounted over the wing with amajor reduction in air resistance.
Honda is a company that pursues the essence of things even when ourideas do not fit with conventional wisdom. The engineers who developed
HondaJet were thinking outside-the-box. They had a breakthroughbecause they had a clear vision of what a small business jet must achieve.
In a similar way, Honda has been striving to develop humanoid robots

Inheritance to Current Generation
Robotics

that can be useful in society by having our engineers pursue the essenceof things. All Honda associates involved in this project share the same
passion. They want to develop robots—like ASIMO—that can help
people’s everyday lives.
It was an accepted idea that robots would never be able to walk smoothly

ASIMO
Involved Honda associates shared the same passion:–Develop robots that can help people’s everyday lives

like people. But our development team studied how people walk. They

11

11

analyzed what theories were needed to replicate human walking. Based

Inheritance to Current Generationon these studies, Honda developed a new control theory which was

Robotics (cont’d)counter to the existing knowledge in the academic community. We
established a new direction for humanoid robotics. In this way,
we overcame the doubts of many people, including in government,

E0

E5

P2

Prototypes

P3

New control theory counter to existing knowledge

who didn’t believe it was possible. Being a complete amateur in this area
worked in Honda’s favor. It enabled the team to establish new control
theory without being influenced by existing beliefs.

Being amateur led to new theory escaping influence by existing beliefs
12

12

Today, I have talked about the essence of what I learned from Mr. Soichiro

Advancing Corporate Culture and Sprit to the Next Generation

Honda. I have explained how these values have been passed down andSummary:

applied by the current generation of Honda associates. Mr. Honda wanted• Look deeply into the essence of things with “Challenging Spirit”

all Honda associates to understand that the purpose of technology is
to serve people. What Mr. Honda said at my new-employee orientation,
which I mentioned at the beginning, all comes down to respecting andcherishing human beings.
Another aspect of how we work at Honda is what we call our “challenging
spirit.” Even when people think something is impossible, we look deeply
into the essence of things. This can lead to a new way of thinking or
breakthrough to overcome a difficult challenge. New products andtechnologies created this way tend to be more innovative andcreate new value.
What is important is the effort to confirm the truth in the real world,with real things. Based on the theory we conceive, we create and testwith our own hands. And if we fail, we re-think and we try again.

25• Purpose of technology is to serve people• Confirm the truth in the real world, with real things, with own hands• “Action without philosophy is a deadly weapon, and philosophy without
action is worthless.”• Have a strong passion and take initiative• Enjoying jobs will help the company and contribute to society

Inheritance of corporate culture
Great responsibility of next generation:
How to apply it to a changing society
13

13Session 2: Innovation, Culture and Spirits

By repeating this process “at the spot,” we are able to overcome
challenges and maintain a creative way of working.
Mr. Honda once said: “Action without philosophy is a deadly weapon,
and philosophy without action is worthless.” These great words of wisdom
state very simply the importance of thinking deeply and taking action as
two sides of the same coin.
I believe we can bear the pains of giving birth to new ideas only when we
have a strong passion and take initiative toward what we want to do.
Just as Mr. Honda did when I joined the company, I remember speaking
at a welcome ceremony for new Honda associates. I told them “It is great
to learn the Honda Way. But there will be no future for Honda unless
you bring something new to the company or do something new at thecompany. Our value depends on how we can change Honda. If you arethinking that you are going to work for Honda, you are already not inline with the “Honda Way.” Why do people work? We work not for thecompany but for ourselves. That is a universal truth at any time andanywhere in the world.”
This was my true feeling and it was also what Mr. Honda was thinking.
Enjoying our jobs will ultimately help the company and contribute tosociety.
But the world changes ... and the business environment changes alongwith it. No matter how great the founder of any company, there is no
corporate philosophy that can be an absolute truth across time andspace. Rather, it is the great responsibility of succeeding generations
not simply to inherit the corporate culture, philosophy and spirit, but todetermine how to apply it to a changing society and the current times.
Today, I hope I have been able to explain just a small portion of what Mr.
Soichiro Honda demonstrated through his life and how it still lives on as
the spirit and corporate philosophy of Honda.
Thank you for your attention.

26

Mr. Takeo FukuiKSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 2: Innovation, Culture and Spirits

Challenges of innovation and Future Design in
Saudi Arabia and Japan
Dr. Eng. Essam Bukhary
Cultural Attaché, Royal Embassy of Saudi Arabia

Good morning ladies and gentlemen. It's my great honor‫ﺧﺎرﻃﺔ اﻟﻌﺎﱂ‬to talk to you today. I first of all would like to express my

Challenges of Innovation and Future
Design in Saudi Arabia and Japangratitude and appreciation to the foundation and King2014年12月13日（水）Saud University for convening this symposium today.

Dr.Eng. Bukhary Essam
Saudi Cultural Attaché to Japan

I would like to begin by having everyone look at this

2

1

01

world map. This is how we look at the world from the pointof view of Saudi Arabia. However, this is how our friends in

02
World Map

世界地図

Japan look at the world. We are here, while Japan is here at
the center of the world. Our friends in the US, they believethat THEY are at the center of the world. Our friends inAustralia believe that they are in the North and we are in
the South. And this is the world from the North Pole, and

3

4

03

the world from the South Pole.
World Map

04
World Map

What I am trying to say is that, even if we have this one
material thing, our planet, we can have various pointsof view. We can look and deal with the same problem
from different aspects. I think this is a key to a nation or
5an organization, or even a person, who would like to be05

innovative in facing changes. By the way, this is how weWorld Map

look at our planet from the moon, and this is a little bit far

06
World Economic Power Map

from outside the solar system.
In the previous slides, we were looking at our planet
from the place, but now, I would like to change the time.
7

This is how our planet looked 152 million years ago. I don't

07

think Japan and Saudi Arabia were around at that time.
This is how our planet looked 90 million years ago. And
this is how we look currently at night. So we can see Japan,
Saudi Arabia, Riyadh, the Eastern Province, the Western
Province are lighting. We can see the situation on the
ground—for example Africa and the South America.
We have more ways to see our planet. This is how theworld map will look based on the economic power.

27

8

08

Session 2: Innovation, Culture and Spirits

Dr. Eng. Essam Bukhary

We can see how Japan is very huge, and how Africa isshrinking. Australia here. South America here.
This is a world map based on population. We can see

World Map for Population

how China and India are occupying almost a third of theworld's population. This is the world economy in 2050. In
2050, it is expected that China or even India will be thebiggest economy in the world, with US third, Brazil fourthand Japan fifth. Saudi Arabia will be 18th, and hopefully in

9092090, we will be in a better position. But what I am trying
World Economy in 2050

to say is, the world is changing.
So let's look at the population of the world in 2100. Again,in 2100 India will be first, China, Nigeria, the United States,
Tanzania, Pakistan, Indonesia, Congo, the Philippines,
Brazil, and Japan is not even in the top 10, unfortunately.

10

10

So as Fukui Sensei mentioned, the world is changing,

World Population in 2100

and the biggest problem is, 'what should we do?' How
we should deal with those changes. Here I would liketo quote the comments of Shigetaka Komori, the CEOof Fujifilm. He says that there are three levels of dealing
with changes. The first is reacting after the change. For

11

11example, the IT bubble happened in the end of the 1990s,
and a lot of companies started to change their philosophy
after that from being concerned with just mechanics toWorld is Changing….

digital equipment. The second is predicting the change

What should we do??

and preparing for it, and this is what happened to Fujifilm.
Fujifilm and Kodak were the strongest two companies

12in the camera field; however, Fujifilm predicted that the12

world would become increasingly digitized, and they‫رات‬‫ ا‬ ‫ل‬ ‫ت ا‬‫و‬‫ا‬
変化への対応！

invested in R&D and changed their business style to digitalThree levels of Dealing with Changes

cameras and smart printers. However, Kodak no longer

1) Reacting after the Change

exists.

2) Predicting the Change
and preparing for it

The third stage, which is the best approach, is making the3) Making the Change!!

change. In other words, to be proactive, not to be reactive.

富士フイルムHD 会長兼CEO
古森重隆

This is what's happening with Google, with Facebook

Designing the Future13

and with Apple, and with a lot of Japanese companies in
the 1950s and 1960s. So what I am proposing here is theimportance of designing the future. We should not wait
for the change to happen; we should take the initiative tochange and design the future.
How can we lead the world in 2100? I once attended
How to lead the World in 2100??

a lecture in Japan, and the Japanese professor was
mentioning that they had a lot of scenarios to predict theworld's environment in 2100. In one of the results, theyfound that the USA, Europe and Japan will be deserts,

14

and the Arabian peninsula will be full of rivers and green

1428

Session 2: Innovation, Culture and Spirits

spaces. The professor was also mentioning that who

Global Collaboration Map

Growth in Research Inputs drive growth in
Research Outputs

has the water at that time can lead the world. However,Dr. Eng. Essam Bukhary

there is a very important condition, which is you shouldhave a very qualified leader —in economy, in science,in technology, in planning, in ICT. So, here we start thecalculations—let's assume that the people who will be

Source: Scival Analytics

Source: Scival Analytics

15

the leaders in various fields in 2100 are 50 years old. It

16means that they will be born in 2050. When they are 20
years old—in 2070—they will be in their second year
in university, hopefully King Saud University, and otheruniversities as well. To have a good, qualified leader, theyshould have a good education and they should havequalified educators. So let's assume that the educators
in 2070 are 50 years old, that means they will be born in
2020. To prepare for the leaders in year 2100, we shouldhave qualified educators, and to have qualified educators,
we should have qualified educators of the educators.
And if we ask ourselves, who are the educators of theeducators, it is you and I and the distinguished guests
here. We must start now.
This graph shows us the expenditure on R&D, and thenumber of articles published in 2008. As you can see,the position of Japan and the position of Saudi Arabia,
recently, Saudi performance of R&D expenditure is getting
better. However, this is the global situation of R&D as you
can see. This is a global collaboration map. We can see
the USA in the center. The bigger the letters, the more
publications. So, we can see the USA, Germany, China,

Expenditure on R&D as % of GDP

Japan, and here is Saudi Arabia. Something to mention

Development of Saudi Performance
Between 2007 and 2024

here is that the strongest country for R&D collaboration

Innovation in Saudi Arabia

with Saudi Arabia is Egypt.
Let's have a look at innovation in Saudi Arabia.
The expenditure on R&D grew from 0.05% in 2007 to

17

1% in 2012. This is a very huge change. And our national

Saudi Performance: Publications (2009-2013)

Performance: Publications (2009-2013)

plan for science and technology is aiming to have 1.6% in

182020, and 2% in 2025. This is a summary of performancein publications and citations, and one thing to mention
here is that among G20 countries, Saudi Arabia recorded
the highest growth rate in publications. For international
ranking we are not in the top; however, our growth rate is

19

recognized to be high. These are the core competencies

Saudi Arabia Competencies

Saudi Arabia Competencies

for Saudi Arabia—chemistry, engineering and medicine,20in terms of publications. Here are our competencies inscience and technology. Those are the best organizations
that publish papers: for the national level, you can see
King Saud University, King Abdul Aziz, KFUPM, KAUST,King Faisal Hospital, King Khalid and other universities.

21

29

22

Session 2: Innovation, Culture and Spirits

This is the academic ranking. Saudi universities are very

Dr. Eng. Essam Bukhary

Academic Ranking of World Universities - 2014
Shanghai Ranking
Arab World Universities

high ranking, while India and Russia have only two
universities in this ranking.
So what are the challenges to envisioning a system for
Saudi Arabia? In my belief most researchers are theoretical,

23

or let's say, not applied, or are not transferred into industry.
So why is that? Because there is a lack of strong industryacademic collaboration. And why is that? Because the lead

What are the Challenges ofInnovation Ecosystem in
Saudi Arabia??

expenditure of Saudi private sectors is in R&D. And why isthat? Because of the absence of Saudi firms in high-techindustries.

24

However our universities are investing in R&D, however
much we publish, if we do not have Saudi firms in

Most of Researches are theoreticalhigh-tech industry, we will not be able to market our

Why ??

The lack of Strong Industrial –Academic Collaboration

technologies. The other approach will be marketing those

Why ??

The Weak Expenditure of Saudi
Private Sector in R&D

technologies, globally, unhindered.

Why ??

The Absence of Saudi Firms in HighTech Industries

This graph shows investment intensity and profitability

25

from investment in R&D. Let's have a look at all the

Profitability vs. investment intensity for the largest 15 sectors in the R&D
Global 1250

graphs. This is the main investment of our country. We
can understand here that, even if you are not investing
too much in oil and gas you can have very high profit.
It doesn’t mean that I think to invest in something thatbrings no profits.

26

What about petrochemicals? Consider SABIC, where you
have more R&D but less profit comparing to oil and gas.
So what we should do is, as we move from only oil and gas

How can we build Saudi firms
in high-tech industries ??

into petrochemicals, we have to move into technology
hardware, electronics, automobiles etc. Of course, the best
scenario is to have Saudi leading companies, software andfixed-line telecoms perform the work.

27

Some would say: 'We have huge companies inMergers and Acquisitions (M&A)

telecommunications, but why are we not investing

The aspect of corporate strategy, corporate financeand management dealing with the buying,selling and combining of different companies
that can aid, finance, or help a growing
company in a given industry grow rapidly
without having to create another business
entity.

there?' Because, most of our economies are technology
consumers, not -technology innovators. We have tochange that. So how can we build Saudi firms into hightech industries? I believe in M&A—acquisitioning others.

28

There are examples of Korean companies—LG, Samsung,Hyundai—most of those companies acquired otherAcquisition of Foreign Companies

companies in order to build their indigenous technological- In 1995, LG Electronics purchased 57.7 % of the stock of the Zenith Electronics Corp.
- For LG Electronics, gaining access to Zenith’s patented HDTV technology throughthis M&A was considered to be highly beneficial.

LG Electronics

Samsung

capabilities. For example, Samsung acquired a company-In 1993, Harris Microwave Semiconductor was acquired by Samsung.

Goals of M&A for Samsung
1- Securing a world-class technological capability in memory semiconductors.
2- Saving $7 million annually in import costs
3- Increasing its competitiveness in communications equipment worldwide

with microwave and semiconductor technologies—those

Hyundai Electronics

340 million US dollars were invested by Hyundai Electronics to acquire Symbios Logic.

Goals of M&A for Hyundai Electronics

technologies are essential now for Samsung smartphones.

1- The rights to Symbios Logic’s 690 patents and trademarks.
2- Securing a base of operations abroad and jumped into the high-value-added sectorof non-memory semiconductors.

29

30

Session 2: Innovation, Culture and Spirits

So what about Saudi Arabia? Let's have a look at SABIC.

Searching for Saudi Model of ITICB

Searching for Saudi Model of ITICB

M&A of Foreign Firms

M&A of Foreign Firms

The Case of SABIC

I believe my colleague will have a presentation later. In（サビック ＳABIC）

Technologies and Licensors of SABIC Products before 2003

2003, when SABIC started by joint ventures with a lot of

Product

Technology/Licensor

PE (Polyethylene)

Union Carbide – Exxon Mobile

PP (Polypropylene)Ethylene Glycol
Ethylene Glycol
PVC/VCM (PolyVinyl
Monomer)companies, they had licenses for many technologies. At
one stage, when SABIC became a global competitor, andother companies feared that SABIC would occupy their

Chyloride/

Saudi Cross Board M&A Experiences:
SABIC:

2003 Purchasing Scientific Design Company.

Union Carbide
VinylChloride

Dr. Eng. Essam Bukhary

Scientific Design – Shell

For SABIC, it meant the acquisition of ethylene oxide catalyst technology.

Oxyvinyl

Polystyrene

Fina – Huntsman

Polyester

ZimmerMethanolMitsubishi

Direct Reduction Process (Steel)

Midrex – HYL

Melamine

DSM

2007 Purchasing The plastic industry arm of General

Electric

MTBE (methyl tertiary butyl ether)

CDTECH – Snamprogetti

Aromatics

UOP

PTA (Purified Terephthalic Acid)

Tecnimont

Butene-1

IFP

2-Ethyl Hexanol (2-EH)

KPT/UCCFor SABIC, it meant the growth form petrochemical material provider into to the
manufacturer of plastic parts of the automotive, electronics, packaging andconstruction sectors.

30

positions, and they began to set difficult conditions for

31

SABIC, such as withholding licenses. What SABIC did was
acquire a scientific design company in 2003, so now it isa part of SABIC. In 2007, SABIC acquired a plastic industry
company.
This is what we are talking about. To go frompetrochemicals to the plastic industry, this might be thepace for coming Saudi firms to move into a high-techindustry.
Here is one simple example: this is our fuel consumption

The Future Expected Demand for Energy
in Saudi Arabia

in Saudi Arabia—in 2010 we used the equivalent of 3.4- SA is now pumping out more than 9.9 million barrels a daythat is enough to generate 16.262 TWh of electricity.

million barrels of oil everyday, if we kept this consumption
rate, by 2028, we will use daily 8.3 million barrels of oil.
This is a very challenging subject.

Fossil Fuel Consumption for
Domestic Energy Demand

So what can we do? One approach is solar energy. We canElectricity Peak Demand

Figure 3-2: The World Sun Radiation Map
Source: Climate data/Insolation data based on the values of meteonorm(www.meteonorm.com)

Source: [Babelli 2011]32

see that Saudi Arabia is in a very good position in terms ofsolar radiation.

140,000

33
Solar Energy Firms in Saudi Market

125,000

120,000(1) BP Solar Arabia ( Solar Arabia)

100,000
74,00080,000This is the theoretical analog of solar energy production

60,000in Saudi Arabia compared to other countries. So, compare

20,000(2) National Solar Systems (NSS)

64,000(3) Sun & Life ( the solar branch of Arabian Qudra )(4) Modern Times Technology Systems (MTTS)

40,00020,00020,000

Saudi
ArabiaSaudi Arabia to Spain, the leading country in Europe in the

Egypt

USA

China

India

2,000

1,600

100

UAE

Spain

Italy

(5) Solar Frontier

Figure : Theoretical Annual Solar Energy Production in Saudi Arabia and Selected Countries
Source: Industrial Clusters
http://www.ic.gov.sa/en/industrial-clusters/solar-energy-cluster/ (Accessed 2012.2.26)

solar industry. For example now in the Saudi market we

34

have Solar Frontier, which is a Japanese company underShowa Shell, and Aramco has around 15% of stake in Solar

35

Building the National Solar
Energy Industry in Saudi Arabia

Frontier. Consider BP Solar Arabia was a branch of BP Solar;
however, British Petroleum stopped all its projects in solar

Saudi Arabia can benefit a lot from being a big
potential market for solar energy. By setting
conditions such as using local materials andcomponents of solar industry, human resource
developments and technology transfer of solar
energy projects from foreign firm.

and they started to focus more on wind engineering, so
now they don't have any technological capabilities. Mostof those solar companies are contractors—they do not36

have real technological capabilities. For National Solar
System they do have operational capabilities and they
started to develop and customise a number of products,
but still limited.
What we should do when we start and open this sector
is to set conditions, such as using local materials andcomponents in addition to human resource development

Innovation in Japanand technology transfer.
We can have those fields to develop our national

Innovation in Japan

companies into high-technology area.
This is the performance of Japan. Very high, of course.
Japan is very strong in medicine, engineering, physics,

37

31

38

Session 2: Innovation, Culture and Spirits

biochemistry. Between 1996 and 2007, this was theInnovation in Japan

growth rate of R&D expenditure. Yes, Japan was not as

Dr. Eng. Essam Bukhary

Innovation in Japanhigh as other countries, but let's remember that Japan
has invested a huge amount since the 1970s and 80s
compared to those other countries.
39

So what are the challenges we can envision facing Japan?
There are many, but I'll pick up two today: international
cooperation and ageing society. So let’s start with

Challenges of Innovation ecosystem
In Japan

What are the Challenges ofInnovation Ecosystem inJapan ??

international cooperation. We can see the United Statesin the center of co-author-patterns of publications in the40(1) International Cooperation.
(2) The Aging society.

world and China is in the new center, and you can see
Germany and the United Kingdom. Those are the centers

41

among the G8 in publications. Japan, South Korea, Brazil,
India does have a kind of collaboration, but not that much

Global Co-author Patterns

Challenges of Innovation ecosystem
In Japancompared to the others. This is the number of papers coauthorized between Japan and the US, China and the US,

42(1) International Cooperation.

the EU and the US, and you can see that there are a lot ofother areas compared to Japan.
One approach is enhancing global cooperation within

43

Asia. This is the example of Europe. We can see how they

Source: Scopus

44

Innovation in Japanare collaborating with each other. Raising the number

Innovation in JapanEU Top 10 Co-Authorship Patternof foreign students, foreign faculties at universities, andenhancing R&D activities for Japanese industry andacademia. We have many good projects between Japaneseindustries and Saudi universities. Today’s symposium isa good example. We do have Fujitsu, working with King

45

Abdulaziz University in developing a super PC. Hitachi isalso working on water distillation. We have companies

Challenges of Innovation ecosystem
In Japanworking with KAUS on solar energy. We have Yokogawa

Source: Scopus

46

Challenges of Innovation ecosystem
In Japan(1) International Cooperation.

Solutions:denki building and R&D center in King Fahd University.

(a) Raising the number of foreign
students/ foreign faculty at universities.

(2) The Aging society.

j(b) Enhancing the global R&D activities
for Japanese industry and academia.

So next is the aging society.
This is the population of Japan. We can see how it was47

rising until 2005 and then the decline started. So this will
Population Decline in Japanaffect Japanese competencies. So what are the solutions?

48
Challenges of Innovation ecosystem
In JapanForeign workers? A workforce of women?
We do have more innovative solutions. Robotics. Here

(1) Aging Society.

we can have ASIMO of Honda and Pepper of SoftBank.

(a) Foreign workers??
(b) Women workforce??

Solutions:jWhat I am explaining to you today is quoted from Mr. Son(c) More innovative solution..

Masayoshi the president of SoftBank. What he says that a49human can work for 8 hours a day, while a robot can workfor 24 hours. In other words, one robot can work as three

50

Daily Working Hours

Robotics

persons. What does that mean?

24 Hours

If we assume that we have 30 million robots in Japan—so 10 million humans plus 90 million robots it would

1 robot can work as 3 persons

8 Hours

equal 100 million workers. Compared to 70 million in

Source: Honda

China, and 10 million in the US and India.

Source: Soft Bank

Human

Robot
Source: Soft Bank

51

32

52

Session 2: Innovation, Culture and Spirits

For the average monthly salary, in the US it is 3300 US

Robotics

dollars, Japan $2500, China $700, $300 in India, and only

Dr. Eng. Essam Bukhary

Robotics
Unite: Million Workers

Labor Force in manufacturing

170 US Dollars for robots. Very cheap labor force

120

80

So we have this famous equation: productivity multiplied

3500

100

100

2000
1500

40

1000

10

10

USA

Inida

20

0

China

700
300

500

0

Japan

USA

Japan

China

Unite: Soft Bank

India

170

Robot (JP)Unite: Soft BankFor Japan the number of workers is
10 Million Humans and ( 30 Million Robots x 3 ) = 100 Million workers

a country. This is the scenario. This is if you were to go

Unite: US $Average Monthly Salary
2500

2500

60

by labour force population equals core competency of

3300

3000

70

53

normally without using robotics, and this is what would
happen if Japan applied the use of robotics in industry—

54

Robotics

Japan would become #1 in industry by 2050.
Productivity

So at the end, as we are celebrating the 60th anniversary

X

Labor Force
Population= Competencyof relations between Saudi Arabia and Japan, we
mentioned that we have new challenges and the world is55changing. For the Saudi-Japanese relations it was oil forgoods. we exported oil and we imported automobiles andInnovation in Japan

Conclusion
The World is Changing!!

Japan As No. 1

electronics; however, we have to change. We should not
be win-and-win. Now we should be partners—strategic

Many New Challenges for the Two
Countries
Importance of Change to Achieve the Goal of Partnership :partners: partners of investment, industry, human

Proposal Partnership

Traditional View

Oil forresources development and innovation. And the mostGoods

important point is that we are not playing a match. It’s not

Win / Win

Source: Soft Bank

the happiness and peace for all humanity. Thank you foryour time.

33

Cooperative
Relations

Partners of Investment
In Industry, HRD and
Innovation
Happy / Happy
57

56

win- lose, or win-win. It’s happy- happy. Our objective isChange57

Session 3:

University-IndustryGovernment Collaboration
Dr. Hirohisa Uchida

Professor, School of Engineering, Tokai University

Eng. Fuad Mosa

General Manger Technology KSA & Emerging Economies, SABIC

Dr. Kazuko Matsumoto

Senior Director, R&D, Vision Development Co. Ltd.

KSU-HONDA FOUNDATION International Symposium
The experience of Saudi Arabia and Japan
Partnership for Innovation 35

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 3: University-Industry-Government Collaboration

University-Industry-Government Cooperation andIndustrial Innovation
Dr. Hirohisa Uchida
Professor, School of Engineering, Tokai University

Good afternoon. My name is Uchida and I'm going to talkabout University-Industry-Government Cooperation andUniversity-Industry-Government
Cooperation
and Industrial Innovation

Industrial Innovation. And I'll begin my talk by asking first:

Prof. Dr. Hirohisa UCHIDA

What is innovation? Professor Kodama explained alreadyProfessor : Tokai University
Fellow and Vice President : International Associationfor Hydrogen Energy (IAHE)
President & CEO : Kanagawa Science Park Inc. (KSP)

about innovation. Therefore, I won't be explaining muchabout this. Rather, I'll look at examples of innovation in

KSP

01

Japanese University-Industry-Government Collaboration,
focused on the case of Tokai University. Then I'll look at

CONTENT

Kanagawa Science Park, founded for knowledge based R&D

1. Introduction
What is innovation?
2. Examples of innovations
3. Japanese UIGC with a case of TU
4. KSP founded for knowledge based
R&D and industrial innovation
5. Concluding remarks

and industrial innovation. Then, I'll give some concluding
remarks.
As you well know, Schumpeter said that innovation is

KSP

02

not a simple invention, but induces “discontinuous andrevolutionary changes of a society.” And the center ofWhat is innovation?

By Joseph Aloi Schumpeter 1883-1950

economic change causes gales of “creative destruction”.

INNOVATION is

I'll give you some examples. For example, materials. Iron:not a simple invention, but induces“discontinuous and revolutionary changes of asociety”

since we've discovered iron, we've had tools for agriculturethe center of economic change causing galesof “creative destruction”

and civil engineering. Another case would be coal. Using

KSP

coal has allowed for iron manufacturing and the steel

03

industry to develop. Then railway and mass production
Examples of Innovations
those changed and are changing our society<MATERIALS> Iron => Tools for agriculture and civil engineering

proceeded. And, of course we extended markets andinformation from that.

 Coal => Iron manufacturing and steel=> Railway & Mass production=> Extension of markets and information
 Semiconductor => Transistor => IC => LSI => Computer /Smart phone => Global communication network LED => Light emitting diode*)Invention of blue LED
by I. Akasaki, H. Amano and S. Nakamura
2014 Nobel Prize Laureates in Physics

We've also discovered semiconductors. Semiconductors
led to transistors. From this came IC and LSI, and from thisKSP

we have computers and smartphones. And now we have a04

global communication network as well.
And, LED—light-emitting diode. An invention of blue LED
as you may know well, is by professors Akasaki, Amano andNakamura—the three Nobel Prize laureates—was just one
or two weeks ago. Why is blue LED so important? And why
did they received this Nobel Prize?. Now that we have green,
blue and red LEDs, we can use them to make a white LED.
That is important.

36

Session 3: University-Industry-Government Collaboration

But, please remember this fact: the Honda Foundation alreadygave the Honda Prize to Professor Nakamura 14 years ago. We had

Dr. Hirohisa UchidaProf. Dr. S. Nakamura
2000 HONDA PRIZE Laureate

14 years ago, HOF had a superior foresight for
his great achievement with blue LED

such good foresight. This is a fact,
and a very nice case.
日経テクノロジーオンライン
２０１４年１１月１７日よりAnd, of course, an example of innovation for energy is fossil fuels

Dr. Nakamura’s prizecommemorative lecture

HONDA Foundation reference:
file:///C:/Documents%20and%20Settings/Administrator/My%20Documents/Downloa
ds/report-96_e.pdf

KSP

05

for automobiles which have created our present traffic society.
Uranium fission and hydrogen fusion is, as Einstein found thisrelation, a very small portion of mass change releases a hugeamount of energy. We now apply this reaction to nuclear power
generation, nuclear weapons,
and applications of radiation to medical treatment, industrial
processes, and agriculture, as well as space technology.

06

And, hydrogen. This is my own field. Hydrogen is a nice and

HONDA FCV 2015 Concept November 2014

fundamental element. Hydrogen is being applied to fuel cell

35=>70 MPa
Range >700km
FC stack> 1000kW

technology and combined with renewable energy as an alternative
to fossil fuels, which is also very important one.
Just yesterday, or the day before yesterday, Toyota just started toPower exporter
100/200V 6kVA

sell the Mirai fuel cell vehicle at a price of 70,000 US dollars. Now

07

this is still very expensive, but the Japanese automobile industry—both Toyota and Honda—will be expanding these hydrogen

HONDA’s Environment Conscious
Solar-Hydrogen-Fuel Cell Vehicle Systemvehicles very extensively in the world.
Of course, this is the Honda concept car you'll see in 2015. If you
have this car at home, you can utilize this car as a generator, too.
Honda is showcasing this combination—you can see here this unit,@Saitama Prefecture, Japan, and California, USA

is a power exporter. If you have this kind of car, you can supply

08

electricity for one week to your family.
This is Honda's Solar-Hydrogen-Fuel Cell Vehicle System. This is

HONDA’s Environment Conscious
Small H2 Supply System September 2014

Honda's environmentally-conscious technology—eco technology

Production rate:
60 kWh + H2O => 1 kgH2
1.5kgH2 per day
Storage capacity: 18kgH2

that Honda has had this technology patented for a long time. It has
photovoltaic energy which can decompose water into hydrogenand oxygen, and you can directly supply 35Mpa hydrogen to this

7.8m2

FCV. This is an example of nice technology from Honda.

09

And recently, in September, Honda announced this new very smallhydrogen-supply system. This all fits in 7.8m2, and this is very
important for Japan with its small space.
This is very nice technology for the future.

HONDA’s tackling on
innovative Environment Conscious
Technology=Eco Technology
started already in the 70s

HONDA’s tackling on innovative Environment Conscious
Technology—so-called 'eco technology'—started already in the70s. Mr. Fukui already mentioned this.

10
Impact of HONDA CIVIC CVCC Engine

Here is the Honda Civic with its CVCC engine. This was really

The first combustion engine that passed the moststrict Muskie Law, California, USA, in 1974.

innovative for the combustion engine at that time. Honda was the

CVCC CIVIV received “The BestEngineered Car in the 70s” from
Society of Automotive Engineers(SAE), USA.

only company that succeeded with this at that time—no othercompany could make this type of engine at that time. The air wasvery dirty at that time and the Honda CVCC engine emissions werequite clean. This technology was transferred to other companies
through reverse-engineering at that time.

37

No any other automobile company was not
successful to pass the Muskie Law.
HONDA’s CVCC technology was transferred thento TOYOTA and other companies.

KSP

11

Session 3: University-Industry-Government Collaboration

Another case of innovation is in the life sciences.

Examples of Innovations
which changed and are changing our society

The so-called ES cells or iPS cells. They're dreaming very

<Life science>

Industrial Progressin Japan An embryonic stem (ES) cell and induced
pluripotent stem (iPS)cells for many organs=> Artificial myocardium=> Possible individual medical treatment

big dreams for us—for example, artificial myocardium, or
individual medical treatment may be possible.

Dr. Hirohisa Uchida

Innovative Companies
Started from Venture
and Grownin the 50s to 60s

Tissue created from induced pluripotent stem (iPS) cells
was transplanted in a human being for the first time.
By Kyoto University and JST
Artificial myocardium tissue
By Kyoto University and JST

Now, I'll briefly tell you about industrial progress in Japan.

KSP

12

I'll give you an example of innovative companies.
Sony started with a tape recorder or a small transistor radio

Start of HONDA

13
HONDA accelerated with this motorbike

or a small transistor TV as a venture company called Tokyo
Tsushin Kogyo, and now it has become a very big one. And
then there was Mr. Matsushita who manufactured a very

Mr. So-Ichiro HONDA

small lamp for a bicycle. That was the start of Matsushita

He finished only elementary
school education. He learned
later by himself.

A son of a blacksmith.

He started to work at this small
automobile repair factory in 1925

Electric. Another case is Hayakawa Denki—this is Sharp.

HONDA DREAM 1951

KSP

KSP

14

15

He manufactured this mechanical pencil. We call it a

HONDA’s Air Cooling engine series –
technologies from motorbikes

Sharp pencil. That was his invention. And based on this heinvented the first TV, the first radio, the first cassette stereo
recorder. These were great innovations.

T360 with 30 PS 1962

This is the case of Mr. Soichiro Honda. He worked in a

Challenge with a motorbike HONDA-DREAMat an international motorbike race, Man island, U.K. 1959

very small repair factory in Shizuoka Prefecture. That was

KSP

N 360 1967

H1300 Coupe

KSP

17

16

the start for him. And then, this motorbike, the Honda
Lineup of HONDAs

Dream, really accelerated the expansion of Honda. Mr.

HONDA’s Spirit for Innovation
Challenge yourself, Catch your dreams !
HONDA’s robots from No.1 to ASIMO

Fukui already told you of this motorbike challenge withLife

Integrathe Honda Dream. And this is the air-cooled engine series,
which was a special property of Honda’s products. They

S2000

took the original technology from their bike and applied it
to their cars.

S660

NSX

KSP

KSP

18

19

This is the line-up of cars from Honda. And this is the
HONDA’s Spirit for Innovation
Challenge yourself, catch your dreams !

development of a humanoid robot by Honda. This isan example of Honda's spirit for innovation. “Challengeyourself, and catch your dreams!” Also, as Mr. Fukui
mentioned, the Honda jet was also a result of Honda’s

HONDA jet“challenge yourself, and catch your dreams.”
KSP

20

Now, I'd like to make a few brief remarks on the

Remarks on Progress in Industrial
Technology by UIG cooperation in Japan

progress in industrial technology by university-industry-

1) Japan experienced rapid economic growth from 50s to 70s.
Main reason:“MONODUKURI=Manufacturing” is a cultural tradition to theJapanese people with diverse sense of values

government collaboration in Japan. Japan experienced“Eight million Gods” （八百万の神々：やおよろずのかみがみ）

2) The government implemented a policy to increase the number ofworkers for manufacturing.
How? By increasing the number of “Bachelor of Engineering”
at many universities.
University graduates were no more “Elite”, but “High quality
workers”.
These workers contributed to increasing output of products andto enhancing QC/TQC.
3) The key word : the close collaboration among industrial,
governmental (METI: Ministry of Economy, Trade & Industry),
and academic sectors.
産業(Sangyo: Industry) + 大学(Daigaku: university) + 政府 (Seifu:
Government) or 官（Kan: Governmental sector)=> 産学官(san-gaku-kan)連携(Collaboration : renkei)
Typical Cases : NEDO JST

rapid economic growth from 50s to 70s. The main reason
is 'MONOZUKURI=Manufacturing' is a cultural tradition to
the Japanese people with a diverse sense of values. For

KSP

example, in Japan we say we have 8 million gods. Even in21

the family, we say we have an extra god—wife—in Japan
we say wife is also a god and we have an anxiety. Why do
we have 8 million gods? Why such a concept? Because wefind so many different nature. We see so many interesting,diverse things in nature. That was the thinking behind why
we have a concept of 8 million gods.

38

Session 3: University-Industry-Government Collaboration

Dr. Hirohisa Uchida

The second main reason is that the government
implemented a policy to increase the number of workers

University-Industry-Government
Cooperation (UIGC)

for manufacturing. How? They increased the number

A Case of Tokai Universityof Bachelors of Engineering at many universities. These
university graduates were no longer 'Elites', but 'Highquality workers'. They work in front, on site by soiling their22

fingers, which was very important to increase QC/TQC, too.
The key point is the close collaboration among industrial,

Income by University-Industry-Government Collaboration
Tokai University (except Medical School)
1233
1129
1081
1199
1148
1038
994
1026

2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994

governmental, and academic sectors. These are really
important relations. I will tell you more details later.
I'll just tell you the example of what Tokai University,a private university, did. Since I was involved in theuniversity-industry-government collaboration at this

1930
2297
2136
1946
2060
1714
1808
1727

1005
934
910
903

2025
1480

853
892

1746
2000

851

1804
1797

730
734
657

1611
1258

573
544

0

965
836

500

1000

1500

2000

Number of research contract

2500

KSP

In Million JPY

23

university, I can tell you that the research contracts
Activity in Intellectual Property Right

100

88

90

69
64
61
59

58
55

60

59

56

55

52

45

44

43
41

41

39

39

40
35

38
35

34
31
29

30

27

29

29
25

23

22 2321
20

17

16
12

17 17

15

7 6
0

2

2

3

4

6

6

7

1999

6

2

1998

8

3

17

17
12

11

8

1989

8

3

1988

8

1987

10
10

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1997

1996

1995

1994

1993

1991

1990

1986

1985

1984

0
1983

data in Japan.

75

50

1982

Tokai University. At least until 2 years ago, it was the top

Tokai University

80
76

Patent Registration

60

1981

This is the actual data for intellectual property rights forPatent Application
77

70

1980

Number of patent application and registration

million US dollars per year. Except for the medical school.

80

1992

increased by 1000 per year, and we introduced about 20

KSP

24

I was appointed as a representative member to the
Appointment to
the representative member of Japan to
the UNESCO International Committee on
University-Industry-Government Cooperation

UNESCO International Committee on University-Industry-- How education and research at university
can contribute to innovation? -Government Collaboration, and we published this manualbook just for developing countries who want to start such asystem.

Editor:Prof. Dr. A．Kornhauser
Vice Editor:
Prof. Dr. H. Uchida

This is a very conventional university-industry-government

KSP

25

collaboration system. This is a very typical triangle with
the industrial, academic and governmental sectors. And

Conventional UIGC

between the industrial sector and academic sector is the

Venture Business?

Sponsored research

university, which have very nice relations. I, myself, have had

Industrial

Academic

Many Seeds

Results?
Papers, books

a very nice experience with industry. Between government

Political

and industry there are many national projects as well.

Projects

supportGovernmental

Financial
Institutions
Bank / Stock & Bond
Companies

KSP

Between government and university there are, of course,

26

many projects as well. But it is thought that the research
results of most university professors are just academic
papers or books. And at that time scientific education did
not accept patents as a result or academic achievements.
Outside of this triangle, financial institutions—banks,
stock & bond companies—are just waiting. There are somany interesting results, but they cannot convert theseinteresting results to money or on the market. That remains
a big problem.

39

Session 3: University-Industry-Government Collaboration

Kanagawa Science Park is the first science park in Japan.

A New Trial by KSP*

for Effective Fruitful UIGC

Now we are doing just as you see we are doing here. We

Innovative R&D & Venture Business Creation
MEXT “START Projects” to support
university-originated ventures
as a promoter

NEDO“Platform Project”
as a catalyzer

are supporting NEDO as a 'Platform Project' as catalyzer.

Industrial

Or we are supporting the Ministry of Education as a 'START

Academic

KSP

KSP
Business matching

Projects' promoter. We are bringing support to companies

Governmental
METI / MEXT etc

that ask, but this is not easy. But we are trying actively,

Financial
Institutions :Bank / Stock & Bond
Companies /Venture Capitals*KSP=Kanagawa Science Park Inc.

Dr. Hirohisa Uchida

Kanagawa Science Park (KSP)
the first science park in Japan
since 1986

1) Knowledge Based R&D and Innovation

2) Support to
University originated ventures
and Start-up ventures
3) Business matching among companies
4) KSP Innovation Business School fostering
young entrepreneurs5) Funding and investment
6) Leading Asian Science Park Association

KSP

KSP

27

28

and we have already developed a long-connection
with financial institutions, like banks and stock & bond

LOCATION

companies. We totally combine these relations tothese areas.
Kanagawa Science Park was established based on

 A bird’s-eye view over Kawasaki City and Keihin Industrial Zone
extending over Kawasaki and Yokohama Cities in Kanagawa.
 The total thermal power is ca 8 GW~8 NP plants.
 The concept “Knowledge-based R&D and Innovation” led to theestablishment of the Kanagawa Science Park (KSP) in 1986.

knowledge from R&D and innovation. We offer support to

KSP

KSP

29

30

university ventures and start-up ventures. We also makebusiness matching among companies. We also have the
KSP Innovation Business School, which fosters young
entrepreneurs. We also carry out funding and investment.
We are also leading the Asian Science Park Association.
This is a view of Mt. Fuji. This is Kanagawa Prefecture,especially Yokohama and Kawasaki area. Our Science Parkis just located here. We can use the large potential withindustry and academic institutions in this Keihin area. In
1986 Kanagawa Prefecture and Kawasaki City invested andopened this Kanagawa Science Park.
It is quite near to Tokyo.
This is our complex. This is the business park. This is our

Kanagawa Science Park houses approximately 50 venture companies and 70 major enterprises both domestic and overseas. Most of these companies use the science park as a base for research and develo

KSP Complex

laboratory here and R&D Business Park Building.

Innovation East Wing
for venture labs,
measurements &analyses service•The KAST

There are around 120 companies working. Among them
50 are venture companies and 70 are major enterprises.

Innovation West Wing
for venture offices,
service facilities,
restaurants, shops•The KSP HotelAnd around 5,300 people work there everyday. We have

KSP now Our daily support with

R&D Business Park Building
for grown-up & major enterprises

consulting advice, fund, brain and heart
KSP houses approximately 50 venturecompanies and 70 major enterprises
from both domestic and overseas.
Most of these companies use the KSP
as a base for R&D.
120 companies in KSP employ 5,300
people.

Main entrance

Bus & Taxi station

Site area: 55,000m2 Total floor space: 146,000m2

hotels, stores, restaurants—it's like a small town. We also

KSP

KSP

31

32

KSP

KSP

33

34

have domestic and international companies.
We have investment funds. Companies give back moneyby a factor of 2 to 4 to the investor. We are now raising thenumber of funds to four.
This is a chart of the last 10 years for the IPO performanceat the Science Park.
We are also leading the Asian Science Park Association
with 37 nations and 60 science technology parks. We act
as a global platform for these science and technology
centers.

ASPA Members

37 Nations with 60 ST Parks

KSP

35

40

Session 3: University-Industry-Government Collaboration

These are pictures of the special courses for Saudi ArabianDr. Hirohisa Uchida

KSP Innovation Business School
Special Courses for Saudi Arabian Students

students. We've had this special course now three times.
These students are starting to learn about Japanese
university and they have a good understanding ofJapanese.

KSP Innovation Business School with Saudi Arabian Embassy
November 2014

This is our latest one—the KSP Innovation Business School

KSP

KSP

36

37

with the Saudi Arabian Embassy in November. That was avery nice one.
We also have MOUs with the Prince Salman Youth Center

Global Diversity

Feb 2014

in Saudi Arabia. We had a very nice time discussing matters

A Key for our Future
Business & Innovation

with young leaders there.

Diverse ideas from diverse people in the world
realize new idea, new business and innovation

The crucial word is 'global diversity'. This is the key for our

KSP

KSP

38

39

future business and innovation. As Dr. Bukhary said before
my lecture, because we have a diversity of ideas,

Concluding remarks

The 19th ASPA Annual Conference at KSP
from November 8th to 11th 2015

we can find new ideas and business. We should respect

 Industrial innovations are going on in various
fields of materials, energy, ICT and life science.

these differences in each other. This is very important.
Next year, we will hold an international conference in Cooperation among academic, industrial andgovernment sectors are indispensable topromote knowledge-based R&D, and to create
sustainable industrial innovations.

STPs towards Global Platforms
for Sustainable Development
by Human Eco Networks

Kanagawa Science Park with the theme STPs towards- Let’s take off for future andcreate our prosperity! -Global Platforms for Sustainable Development by Human
Eco Networks. Human networks—I think this is the mostfundamental fact to maintain sustainable development

 Global human connections and networking are
essential to promote new business.

KSP

KSP

40

41

‫ز‬ ‫را‬for us. Thank you very much.

KSP

42

41

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 3: University-Industry-Government Collaboration

Toward Productive Collaboration between
Universities and Industry
Eng. Fuad Mosa
General Manger Technology KSA & Emerging Economies, SABICGood afternoon everybody. It's my pleasure to represent here theindustrial part of KSA. I'll give you a brief message about what SABIC is
and what the industry around SABIC is trying to do in the knowledge
ecosystem here within Saudi Arabia. I'll start by giving you some highlevel information about SABIC. SABIC started, as most of you know,
around 35 to 40 years ago. We were trying to devise flare gases and makeit as a real product. If we look at SABIC and where we have come in 40

01

years, we have become the second largest, diversified chemical company
in the world. We are the 88th largest public company in the world. I
believe those two numbers haven't come only from efforts SABIC is doing
now, but they came from the strategic vision SABIC had 40 years ago. Mr.
Bukhary just highlighted the vision of the SABIC founders. We partnerwith the most competitive companies in the world in order to master02

manufacturing, which was the most important requirement at that timefor SABIC.
Later on in the last 10 years, SABIC moved its strategic goal frommastering manufacturing to begin looking for another competitive edge,
which requires a lot of innovation, a lot of research and development.
We tried to hasten our approach through mergers and acquisition, which03

is something that has helped SABIC achieve these numbers. We now
operate everywhere in the world, in 40 countries. From east to west. We
work in most of the chemical downstream business required, and webelieve that if we continue now as we are, we will soon become
number one.
This is how SABIC operates. We have 45 sites distributed all over the04

world, as I said in 40 countries. We are producing 70 million tons per
year. This is distributed between commodities and speciality products.
Our customers also distribute all over the world. So, we have customer
in most of the countries, which are countries working in industry. Our
products are distributed to different businesses, and these are data about
those businesses. Most of the numbers, which are important for us and
we are proud of it, were number one now in a very important product,
which is helping the world. Mono-ethylene glycol, MTBE, polycarbonate,

4205

Session 3: University-Industry-Government Collaboration

Eng. Fuad Mosa

polyphenylene ether, polyether imide, granular urea. We're number 2
now worldwide in methanol production. We're number 3 in polyethylene,
polypropylene, and engineering plastics. We're distributing ourselves todifferent strategic businesses units, in order to be able to manage ourbusiness, to manage our product, to grow continuously.
Those are the six main business unit which SABIC concentrates. As you
can see almost everything is touching the human beings, starting fromchemicals, which was the initial power of SABIC, going to performancechemicals, metals, fertilizers, polymers and later we came with innovative
plastics after acquisition of General Electric Those business units you see
some products which we are showing here, most of products have somany grades and those grades going to everything. I believe, that anyone

06sitting here has definitely something coming from SABIC products.
As all previous presentations said, the world is changing. If you would
only like to manufacture, this will not be enough for you to compete. So
Japan started with manufacturing. Then later on they started to innovate
something, China, they are copying, but now they are number one or twoor three in innovation. We are number two, but only with manufacturing.
Insourcing technology will never allow us to continue as number two. So

07

for us innovation, research and development are very crucial. We started
15 or 20 years ago for building the infrastructure of SABIC research anddevelopment. We believe that now we have reached a level of maturity
that can help us in the future, with the help of lots of partners, which
we will indicate later to go toward megatrends which is very obvious toeverybody. There have been a lot of changes in the megatrends fromthe last 50 years, last 30 years, and last 10 years. In the next 10 years, 30
years, 50 years there will show many changes and those changes willbring different markets and different market focus. We believe, at SABIC,
that those are some of the most important market focuses in the future.
We are building our infrastructure, our footprint, worldwide in order tobe able to compete on those areas which will assure us that if we are notnumber 2 in the next 50 years, we will be number 1.
So now I will talk about how SABIC moved from manufacturing to bea technology and innovation company. This is just a main highlight of
SABIC regarding technology and innovation. We have globally 2,000
researchers, these are researchers that come from different countries withdifferent educational backgrounds. We were able in the past 15 to 20
years to come up with 10,000 global patents, good amount of this 10,000
patents are already upheld for our products and technology which SABIC

08

are currently operating in different countries. We have now, based on
SABIC, our mergers and acquisitions, 19 technology and innovation
centers, from the US all the way to Japan. We are everywhere. If we saw all
numbers of those countries now, we would see that they are the leaders
in innovation research. We are currently attached to every country that isleading innovation and technological development.

09

43

Session 3: University-Industry-Government Collaboration

Eng. Fuad Mosa

This is another picture that shows our networking—where we are exactly.
We have many centers in the US and some in Europe. We also have manycenters here in our home country. And we are in India, in China, in Japan.
We are also looking to be wherever we feel that it will enhance and help
us t to grow our research and development.
10This is a description of how we are distributing our products because it’s
not about matter of having many centers in the world. Although I am
happy that we have 19 centers, the most important thing is how you canleverage those 19 centers to help innovation, research, and productivity.
So what we did was we made a center of excellence. Each country has
its own edge from application point of view or feed stock engineering

11

or different angle of R&D requirement and competency. So what we did
is to have center of excellence which we can support our ongoing plan
and also try to leverage the availability of good chemist, good processengineer. At India and Europe also, we try to leverage competency samein US, China and Japan. This, we believe, helped us move from 1,000
patents from 50 years ago to 10,000 patents now. If you see the rate,
for company, like SABIC moving from manufacturing to innovation, this12

increase in number can be huge, even compared with all our competitors
except Chinese because Chinese are doing something amazing.
One thing which we didn't talk about regarding our footprint is our 19
centers. Two of our 19 centers are currently located in the campuses of
two leading universities in KSA. One of them is our SABIC application
center in KSU, and the second one is in the industrial park of KAUST.
We believe that our partnership, and our competitors, they value that
their research and development are affected a lot, by our connectivity
with universities. If you would like to come up with a technology—a13

constructive innovation—you need to be very strong in fundamental.
The fundamental knowledge is available in the university. So if you have astrong university, like our competitors who have cutting-edge technology
because they are receiving help from a strong university like MIT, then
you will be able to be an innovative company. We believe that we will
be able to be a strongly innovative company if we have a good partner,
and we believe there is strength in our collaboration with our university.
This is one of the reasons why we are there. We are seeing a little benefit
currently, because there are all newly built, but in the next five years, if I
come back here I can tell you a lot about how we have made it and how
we have developed from it.
So now I will give some brief success stories which will give you
an indication about SABIC and innovation. I will talk about a major
technology, which SABIC developed. This technology produces acetic acidfrom methane. Methane is a valuable fuel, which was largely available in
the Persian Gulf, but now less available. Where highly available now is in
US. SABIC has the only technology in the world which can make acetic

44

14

Session 3: University-Industry-Government Collaboration

Eng. Fuad Mosa

acid, which is an important product made from methane. The second
one is linear alpha olefins, and linear alpha olefins are family products.
It is used to make plastics, lubricant. It is used to make additives. Threecompanies worldwide—Shell, Amocco etc.--are monopolizing thistechnology for more than 30 years. SABIC tried to license this, because
this is a very strategic product for us. But they refused. We decided in15

the 1990s that we should not continue to look after those people andwe should do it ourselves. We were able to, by the middle of 2004-2005,
get a technology which was better than how the big companies do it.
Most of those large companies produce this under very high operating
conditions—300bar, 200 degree C. We were able to make the same
product with 50bar and 60 degree C. I know this because I was leading
this technology. In the first presentation I gave in 2006, they were all

16

sitting like you, and after I finished they came up to me to say that you
are dream maker. And now, 5 years later, we have 150,000 KTA plants withengineers, and I can advise you all to come see it. It is a technology that
we made and we are proud of because it shows that we can make itby ourselves.
One more effect on our industry is the catalyst. In the catalyst, we aredoing lots of work and we became able to produce our own advanced
Z-N. We used to use Z-N of Exon Mobile for 30years.
We are also proud, because we not only had our own catalyst, but
polymer which we are producing from this catalyst is better than what
we were getting from Mobil. With a change, you have to start changing.

17

You have to go more downstream to see what is affecting the world. One
thing is pollution. Pollution comes mainly from cars. All countries now arepushing for a reduction in energy consumption, which means reducing
pollution. The only way to reduce this is by changing the material. What
we are using now to build cannot help us so we need to change this.
We are lucky at SABIC that we have the material which we can use to18

help those to change some of their parts. If they change their parts, they
will reduce their weight, and if they reduce the weight they will reduceenergy. So SABIC now is working with Ford, Land Rover, and many othercar manufacturers. I think some of your cars already have SABIC parts inthem without even noticing. Something which is also surprising, is thatcompanies like Samsung have lighter and lighter mobiles. SABIC is one of
the major players that is now offering lighter materials to company like

19

Samsung. Also SABIC had a big role to play with the iPhone 5.
We are now trying to move into the future. In the future, SABIC has
already set a new long term strategy. SABIC would like to work in energy
in the future. Many presentations have covered energy already—thegeneration of energy, the storing of energy. Moving away from fossil fuelsrequires utilizing technology to reduce energy consumption and habits.
Smart materials will allow you to have information through your glasses
that you currently get through your mobile device. We believe that theadvance of smart materials is very important.

45

20

Session 3: University-Industry-Government Collaboration

Eng. Fuad Mosa

I would like to quickly talk about our collaboration
with universities. We have two different collaboration
directions. There is the old one, that SABIC would leadthe collaboration. We knew that the local infrastructureof universities is not as we would like to have in order tocompete. So we began to push universities in different

21

22

23

24

25

26

angle, with building centers, adding research grantand faculty enrichment programs in order to build
infrastructure. But, last year, we believe that since wehave done this for the past 10 o 15 years, it is sufficient.
We will continue with this slightly, but we plan to movefrom just helping to build infrastructure to enhancing
productivity. Enhancing productivity means that we needto start developing technology. Eventually we will build
technologies through collaboration with universities
and other institutions. We would like to move forward
our collaboration from the first dimension to the second
dimension, where we can be proud of our productivity of
all our universities which is pushing industry toward right
direction. We have collaborations with other institutions
in order to help local resource and know-how to maximize
and go to the next step.
Finally, I would like to highlight that even though we areworking in two dimensions, it does not mean that we were
not able to come up with something. We were able to have27

good projects with most of our universities. Regarding
research in Acetic Acid, we had 5 percent of our work donein KSU. Also we have other activities with KFUPM andKing Abdulaziz University which are small projects, but
we would like to enhance them through communication.
Eventually, we would like to provide hundreds of thoseexamples with 50/50 collaboration. I would like just to say

28

that we are committed. We know it is very important for
our future success that we have a strong university. We
are communicating with universities now about how they
can help us, and how we can help them. We believe that
if we have Cambridge in Saudi Arabia, Tokyo University in
Saudi Arabia, and MIT in Saudi Arabia, then SABIC would
be number one globally in everything we are working in.

30

Thank you very much.

46

29

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Session 3: University-Industry-Government Collaboration

Saudi Arabia and Japan Cooperation in Science andTechnology: from Universities to Industries
Dr. Kazuko Matsumoto
Senior Director, R&D, Vision Development Co. Ltd.

It is my pleasure and honor to have this opportunity to talk about Saudi

Honda Foundation Symposium in
Saudi Arabia, December 17, 2014

Arabia-Japan Cooperation in Science and Technology from universities
to industries. The outline of my talk will be to first talk about the recent

Saudi Arabia and Japan Cooperationin Science and Technology:

Japanese atmosphere of industry-university-government cooperation tofrom Universities to Industries

grow innovative technology and to empower venture business. Secondly,

Kazuko Matsumoto, Ph.D
Honda Foundation, JapanI will show you a successful example of university-based venture

01

company 'Euglena' in Japan. Thirdly, I will speak about my experience as achemistry professor at Waseda University and cooperation with industries

Outlineat that time. Finally, I will show you Japan-Saudi Arabia exchanges• Recent Japanese atmosphere of industry-universitygovernment cooperation to grow innovativetechnology and to empower venture business

relating to Japanese technology on several companies’ occasion.

• A successful example of university-based venturecompany “Euglena” in Japan• My experience as a chemistry professor at Waseda
university and cooperation with industries

The recent trends of industry support to universities in Japan are the• Japan-Saudi Arabia exchanges relating Japanesetechnology on several occasions

following: Japanese industries increase funding support to university

02

projects clearly focused on more practical targets than before. More rapid
and competitive commercialization is requested to industry-university
Recent Trends of Industry Support to
Universities in Japan

cooperation. So, both industries who support universities and university
itself feel some burden because their surrounding atmosphere is more

• Japanese industries increase funding
support to university projects which arefocused on more practically planed targets
than before

requesting to them to practical commercialization.

• More rapid and competitive
commercialization is requested to industryuniversity cooperation

This is the statistics of the top ten universities in Japan. Top ten means

03

their fund amount receiving from industries. Kyoto University is the top,
receiving 43 million US dollars this year.. If you compare 2013 to 2014,

Top 10 Universities Receiving Funds (M US$)from Industries in Japan

mostly the research amount doesn't change much, but Kyoto University

2013
2014____
Kyoto Univ.
37
43
Univ. of Tokyo
33
33
Tohoku Univ.
29
29
Osaka Univ.
23
26
Kyusyu Univ.
14
14
Keio Univ.
13
Nagoya Univ.
13
Tokyo Inst. Tech.
11
12
Meiji Univ.
7
8
7
7_____
Hokkaido Univ。
Total fund of 306 M US$ in 2014 is 12.9%
increased compared to that of 2013.

increases its funding amount appreciably.
This is the data of operational grants from government to national
universities. As you can see here, the statistics show that for the past04

10years, the total amount of grant continued decreasing, but in 2014,it slightly increases again. The top university in government fundingis the University of Tokyo. This data shows that the ratio of funds fromOperational Grants from Government to
National Universities• For the past 10years, the grant continued decreasing, but
in 2014, it slightly increases.
1. Univ. of Tokyo
2. Kyoto Univ.
3. Tohoku Univ.
4. Osaka Univ.

industry and government to each university is 1: 20 at University ofTokyo, 1 comes from industries and 20 come from the government.
But, the ratio is 1:10 to 1:15 at other universities. This means that the
University of Tokyo receives an outstandingly large ratio of funding fromthe government. In our system, all professors receive a small research

47•

676 M US$
451
388
382

Total operational grants=1.0 B US$

The ratio of funds fromindustry and government to each
university is 1: 20 at
Univ. of Tokyo, but is 1:10 to
1;15 at other universities
All professors receive a small research fund from the university.
In addition, professors receive competitive funds from funding
agencies by application: the fund can be big (~0.05 to 5 M US$)05

Session 3: University-Industry-Government Collaboration

Dr. Kazuko Matsumoto

fund from the university, it means from the government without any
application. This research funding is very small, so professors must apply
to other competitive funds. If their application is very well planned andtarget is highly appreciated, he can receive the fund that can be very big,sometimes of 0.05 to 5 Million US dollars. So research funding depends
on the professor. There is a big difference now.
If you look at national research institutes like RIKEN or AIST and several
others, there is an argument about whether national institutes should
cooperate with foreign companies. It is because for instance, the National
Institute of Material Science which is called NIMS currently collaborates
with many foreign industries. This map shows the partners of foreign

Should do or Not Should do ?
Cooperation of National Research Institutewith Foreign Companies
National Institute of Materials Science (NIMS)
Collaborates with many Foreign Industries
Rolls-Royce

DSM

Bosch

BoeingSamsung

SeagateTechnology

POSCO

LG

GE

companies. Since this national research institute is fully-funded by theSaint-Gobain

06

government, the government expects the institute to contribute tocreate new technologies and industries within Japan, not for foreigncompanies. So there is an argument whether this research instituteshould collaborate with foreign companies. But for the past 10 years,
government gradually approved such international collaborations andmany other national institutes are starting to collaborate with foreigncompanies.
I will take this company as an example of venture company starting frommy university’s research seed. The name of the company is Euglena,
which began from the research results of the University of Tokyo. The
company was founded in 2005, and capital is now 40 million US dollars
this year. The founder is Mr. Mitsuru Izumo, graduate of Agriculture
Department of the University of Tokyo, and he started it together with his

Euglena Co., Ltdfrom University of Tokyo

FoundedAugust 9th, 2005

Capital4.79 billion yen = 40 M US$
Mitsuru Izumo, graduate of Agriculture Department
started together with a friend of Euglena
researcher at Univ. of Tokyo

President• Successful mass cultivation of Euglena triggered commercialization• Noticed Euglena’s high potential in many industrial applications• Euglena contains most of the nutrients required for humansurvival and high quality light oil- application to nutrition supplements, functional foods, and biofuels• Euglena photosynthesizes efficiently, absorbs CO2, and producescarbohydrates and oxygen– application to environment problems, biofuels, and animal feeds
Source: euglena’s web site07

friend, who is a euglena researcher at the University of Tokyo. Euglena is
the name of the merchandise which this company sells. Euglena is also
the academic name of the green algae that the company sells. This is thestock price of this company from 2009 to 2014. The price is continuing toincrease, so you can see how successful this company is doing from the
beginning.
The feature of this company activity is to develop successful masscultivation method of Euglena, which triggered commercialization of the
product. The company noticed, from the very early stages, that Euglena
has high potential in many industrial applications. Euglena contains mostof the nutrients required for human survival and high quality light oil. Thisfeatures is suitable for application to nutritional supplements, functional
foods and biofuels. Euglena photosynthesizes efficiently, absorbs CO2
and produces carbohydrates and oxygen. This feature is suitable forenvironmental problems since CO2 will be absorbed and this anticipatesphotosynthesis. It is also suitable for biofuels. The residue is oil distraction
which is rich in various proteins amino acid suitable for animal feeds.

About Euglena
Green algae
A mysterious creature
being both plants and animals
Grows in fresh waterThis is a picture of the cultivation tank of Euglena. It is green algae. It
is a mysterious creature being both a plant and an animal. It grows in

It can store energy by means ofphotosynthesis like plants, while
it can move around like othermicroorganisms

Source: euglena’s web site

fresh water. And, it can store energy by means of photosynthesis like

48

08

Session 3: University-Industry-Government Collaboration

Dr. Kazuko Matsumoto

plants, while it can move around like other microorganisms. This is a
picture, and this is the enlarged structure of this algae. Its size is about
50 micrometers. It consists of only a single cell. This is a rather primitive
creature. This green solution contains a lot of nutrients, so it is now
commercialized as a supplement drink for human health.
Euglena is capable of creating nutrients through photosynthesis. Euglena

About Euglena
Capable of creating nutrients
through photosynthesis

and its photosynthesis can grow under high CO2 concentration; it is sostrong against high CO2 concentration that it can endure 1000 times

Euglena with its photosynthesis
can grow under high CO2
concentration, 1000 times thenormal content of air.

the normal content of air. So it is expected to absorb a lot of CO2 andEuglena is rich in light oil suitablefor jet fuelcan clean the environment. Euglena is rich in light oil suitable for jet fuel,application to food production, environmental problems, and energy

Application to food production,
environmental problems, andenergy resources
Source: euglena’s web site

09

resources.
This graph shows the taurine content of chicken muscles. If chicken is
raised with Euglena feed, chicken muscle contains more taurine. So it isEuglena solves the food problem
Residual euglena, after its oil extraction for fuel products, isrich in protein. By using this residue as animal feed, euglena can be fully

utilized

effective as animal feed.
This is the final slide about Euglena. This shows several joint projects
currently being carried out by Euglena. Sumitomo-Joint Electric Power

Source: euglena’s web site

10

supplies CO2 from their plant to Euglena, and Hitachi makes the plant for
harvest and oil extraction. Euglena uses this plant and extract CO2.
Euglena’s Current Joint Projects
with Major Japanese Companies

After the extraction of oil, that oil is sent to JX Nippon Oil & Energy whichrefines the oil to jet fuel. In the future it is expected that the refined oilwill go to airline companies. On the other hand, the oil residue is good for

SupplyCO2
Airline companies

feeding pigs and chickens. So this is a grand design, full of dreams. The
government is supporting this project, and we expect this company to

Plant for harvestand oil extraction

Sumitomo-Joint Electric Power Co.

Jet fuel

Refine oil to jet fuelPig feeding

Source: euglena’s web site

11

grow further and larger. I would like to emphasize that even though thecompany is small like Euglena, if the company has a good plan, a good
idea, and a good design project, the company can collaborate with big
companies, like Hitachi, JX Nippon Oil & Energy Company, Sumitomo
Joint Electric Power Company, and airline companies in the future. This isa system of very successful example of a Japanese venture company.
In the next slide, I will talk about my research which was carried almost

Lanthanide (Ln) Labels for Time-Resolved Imaging
Kazuko Matsumoto, Dep. of Chem., Waseda University

Ln elements for visible-light luminescence
Ln = La, Ce, Pr, Nd, Pm, Sm, Eu, Gd, Tb, Dy,
Ho, Er, Tm, Yb, Lu

15years ago in Waseda University. I am still now a researcher of lanthanide
luminescence for time-resolved imaging. Usually, in bio-technology,
many organic luminescence materials are used for staining, for observing

HOO

with microscopy to see the structure of a cell. For example, this is sucha structure. The blue one is the nuclear. The yellow is the tublin. The

O

COOH

NCS

Conventional organic label

FITC (Fluorecein)

Microscopic Image of a cell
Nucleus:blue
Mitocondria: red
Tublin:yellow

12

red ones although it is not obvious, are the mitochondria. All of thesestructures are stained, and color is specific to each component. And
usually, fluorescein and several other organic dyes are used for staining
these structures.
Different from those organic labels, I synthesized lanthanide complexes

Lanthanide (Ln) Luminescent Materials
for Time-Resolved Imaging
Lanthanide elements for visible-light luminescence
Ln = La, Ce, Pr, Nd, Pm, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu

commerciallyavailable from
Tokyo Chemical
Industry, Co.,Japan

that are strongly luminescent. For instance, europium or terbium give
red and blue color, these europium complexes give strong luminescence.

49

13

Session 3: University-Industry-Government Collaboration

Dr. Kazuko MatsumotoSome of these are compounds commercially available from Tokyo
Chemical Industry in Japan.
One of the advantages of using lanthanide as photo label is photo stablecompared to conventional FITC, like fluorescein. This is a microscopic

Lanthanide Labels are Photo-Stable
FITC-labeled
rat intestine,
0 sec

FITC after
10 secVis-light
irradiation

DTBTA-EuLabeled rat
intestine
at 0 sec

After 10 sec
irradiation

picture of a rat intensive labelled with fluorescein at 0 seconds. Usually in
microscopic imaging, a strong laser is used and if you keep irradiating thisarea for 10 seconds, the images decompose. That means the fluorescenceis photo disruptive. When researchers use organic fluorescence or

DTBTA-Eu, 0 sec

DTBTA-Eu
after 10 sec UV irradiation

14

luminescence, photo-bleaching is a big problem. But if you use DTBTA
europium or lanthanide label for the same experiment, you can see thateven after 10 seconds of irradiation you can clearly see the stained image
with lanthanide. So this is the typical advantage of lanthanide labels.
This is another example of using lanthanide. This is irradiation time at 0
seconds, and this is irradiation at 500 microseconds. Usually, if you use
fluorescein, you can have this image. But, after 10 microseconds, because

Time-Resolved Imaging Using DTBTA-Eu3+
can eliminate false signals
Actin staining with Phalloidin - DTBTA-Eu3+
Delay time = 0 sec

Delay time = 500 µsecof the light radiation, the whole image is weakened, and you'll get thiskind of image. But using europium you can still see the structure of thetissues, but at the same time, you will notice that these strong spots thatin collaboration with OLYMPUS

15

appear at 0 seconds totally disappear after 500 microseconds. This meansthat this spot is considered a false signal. So by using europium labels,
we can distinguish false from true signals. That is the advantage of this
europium.
We constructed a special time-resolved imaging microscopic system withcollaboration with Olympus company.
Almost 15 years ago, we started two groups to develop a DNA chip

Time-Resolved DNA Chip System Using Ln Luminescence(Japan struggled to avoid patent conflicts with US)

analyzer by using europium luminescent labels. One group consisted ofGroup 1.
OLYMPUS, RIKEN,
Waseda Univ.

Olympus and RIKEN and my university, Waseda University and the otherGroup 2.
DNA Chip Research Inc.
Waseda Univ.

was the DNA Chip Research Corporation. This was a venture business atthat time supported by Hitachi. Both targeted the same DNA chip systemwith lanthanide luminescence, but their systems of instruments weredifferent. This is a DNA chip and this is a man's finger. If it is enlarged you
can see the structure. Each luminescence and color signifies information
about DNA. Each spot corresponds to different DNAs. So we have toread the color and intensity of each spot in a very rapid way. We weresuccessful in developing a good system for this DNA chip analyzer; but,there was actually one drawback compared to US systems. That was thereading speed. It was not very competitive with the US system, so wegave up after 5 years of development to commercialize this system. The
group two DNA chip research gave up at a relatively early stage of thedevelopment to construct a new depiction system. But this company still
survives today, because the company changed their policy from being atechnology-development company to a DNA-analysis company.
So this company now has tens of instruments. They bought a USF
system, and they now have a lot of analytical instruments. They received
many samples from customers, analyzed them and reported the DNA
information to the customers. So they have totally changed, but they arestill doing very well.

50

16

Session 3: University-Industry-Government Collaboration

In this slide, it is a different subject, but there is a picture of carbon
fiber. Carbon fiber has very strong background. Actually 3 big Japanese

It takes time for a new material to be a big businessR & D of materials is “from Seed (material) to Need”,
and takes more time than “from Need to Seed”
Carbon fiber: 10 times stronger than iron andonly 1/4 in weight
Japanese share 70 %, (1 billion t/y market)
it took 20 years to become the present
big market

textile companies, Toray, Teijin, and Mitsubishi Rayon have a 70% sharein the world. The total market is 1 billion tons per year. Carbon fiberfeatures 10 times stronger than iron and 1/4 in weight. It is now used inaircraft bodies, car bodies, windmills, power generators and many other

Dr. Kazuko Matsumotocarbonnanotubefullerenegraphene

17

applications. But, actually, it took 20 years to develop the current large
market. So you have to be very patient, and you have to keep making
efforts very hard to realize really applicable market. We have also many
companies who developed manufacturing technology for carbon
nanotube, fullerene, graphene and several other carbon materials.
Chemistry is a field of industry that is very strong in Japan, and we
expect in the next 10 years or 20 years, we will have several other carbon
nanomaterials which will be applicable to industrial products.
This is another example. Perhaps this will interest women students. Spashis a registered name, and it is a packaging film that seals in freshness. Thisis Japanese sushi. It is raw fish, and that raw fish must be very fresh. If it
is not fresh, it doesn't taste good. So, if you use this Spash film to retain
the freshness, it is very effective. This film was developed by the Mitsui
Chemicals Tohcello Company. This is a subsidiary company of Mitsui
Chemicals. The effect of this Spash film is shown here. If you wrap spinachwith another company's film, 5 days later the spinach is degraded. But, if
you wrap the spinach with Spash film, it will keep its freshness.
I will show you a fruit grocery store in Tokyo. Its name is Senbikiya. This

Senbikiya

the most long-established andexquisite fruit grocery in themost expensive street in Tokyo,
selling only the highest quality
fruits
A strawberry costs 5 US$ !
An apple, 12 US$ !!!

is longest-established fruit grocer on the most expensive street in Tokyo.
They sell only the highest quality fruits. For example their strawberries
cost five US dollars. An apple costs 12 US dollars. This company is very
proud of this. The company told me that a few years ago, that some richor high-ranking people from Saudi Arabia visited this company and they18bought a lot of fruit. This fruit has Spash wrapping, and they know thatthey can keep freshness and beautiful appearance.
This is the final slide. This is a next-generation nuclear power plant, whichis called High-Temperature Gas Reactor. And this is a picture of the highNext-Generation Nuclear Power Plant:High Temperature Gas Reactor

HTTR at Japan Atomic
Energy Agency(JAEA)

temperature engineering test reactor, and it is installed at the Japan
Atomic Energy Agency (JAEA). This is a new nuclear power reactor, andit features less expensive cost for energy or capability of H2 production.
It doesn't need water for cooling. This fact suggests that this system issuitable for desert areas. This system has a spontaneous cooling function
should an accident occur. So because of these good features, many
countries are paying attention to this on-going experiment at JAEA.
Japan hosted a big international conference in Tokyo in 2012, and theJapanese people there were surprised to see that a Saudi Arabian princeattended that conference, and he asked many questions. So, he seemed
to have a strong interest in this system. We hope that this will become a
big industry for the Japanese economy.

51▪ less expensive cost per energy ▪ spontaneous cooling
down in accident▪ capability of H2 production
suitable for desert area
▪ no need of water for cooling
Saudi Arabian Prince attended at International
Conference held in Tokyo in 2012 showing strong interest

19Session 3: University-Industry-Government Collaboration

I hope that you enjoyed my talk. If you have any ideas about how
Japanese industry and universities can collaborate together, it would be
my pleasure to hear your thoughts. Thank you for your time.

52

Dr. Kazuko MatsumotoClosing Remarks
Dr. Hiroto Ishida

President, Honda Foundation

KSU-HONDA FOUNDATION International Symposium
The experience of Saudi Arabia and Japan
Partnership for Innovation 53

KSU-HONDA FOUNDATION International Symposium
Partnership for Innovation The experience of Saudi Arabia and Japan

Closing Remarks

Dr. Hiroto Ishida
President, Honda Foundation

Good afternoon, Thank you for so many people attending this symposium.
Representing Honda Foundation, I would like to thank King Saud University for its tremendous efforts to prepare this
symposium, and it was our greatest honor to co-host the event at this glamorous and prestigious academic institute.
The project started with a call from Dr. Bukhari, who is present today from the Embassy of Saudi Arabia in Tokyo.
The goal we initially set was to discuss how to draw a roadmap towards a bright future of Saudi Arabia, and how
Japan can be supportive in this context.
In today’s program, we reviewed the history of industry development in Japan to look for some lessons to beshared, talked about innovations backed by corporate culture and spirits, and discussed how the collaboration
among various sectors should work.
It is necessary to establish an appropriate vehicle such as a scheme for industry-academia collaboration to foster
innovation. But that itself does not guarantee any technological advancement or economic development.
I would dare say, the more important thing is that how the people involved in such scheme are motivated,spirited and eager to improve. The people and their mindset are the most deciding factor for building the future ofa nation.
The next year, 2015 marks the 60th anniversary since the Kingdom of Saudi Arabia and Japan have established theirdiplomatic relationship in 1955. The relationship between the two countries is indispensable and very strong. For
Japan, we import the largest amount of oil from Saudi Arabia among other countries, and we received significant
goodwill support from Saudi Arabia with deepest gratitude, money and other things for the reconstruction fromthe disastrous earthquake in 2011. Now we hope Japan can further contribute to the development of your country
through cooperating for accelerating human resource development as well as diversifying the industry.
I would like to say that the Japan side has learned much from the symposium, and I would like to say heartfelt
appreciation to presentations of Saudi Arabian side speakers.
At Honda Foundation, our founding prospectus which was stipulated by the leadership of Mr. Soichiro Honda
and his younger brother, Mr. Benjiro Honda defines that our mission is to contribute to “creating truly humane
civilization.” I hope today’s discussions will contribute to a brilliant future for the people of Saudi Arabia, thus
approaching toward realization of truly humane society in the country.
I was deeply impressed with the praying (by the people in Saudi Arabia). At the end of my remarks, I would like tooffer a prayer for the future of Saudi Arabia and Japan with a part of a Noh song from Japan. (Dr. Ishida chants a
Noh song.)
Thank you very much.

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Published by: Satoshi Matsuzawa, Managing Director
Honda Foundation 6-20, Yaesu 2-chome, Chuo-ku, Tokyo 104-0028, Japan
TEL: +81-3-3274-5125 FAX: +81-3-3274-5103 http://www.hondafoundation.jp©2015 Honda Foundation
Published March, 2015

KSU-HONDA FOUNDATIONInternational Symposium
Partnership for Innovation
The experience of Saudi Arabia and Japan