THE SCIENCE & TECHNOLOGY 

RESOURCES Of JAPAN: 

A COMPARISON WITH THE UNITED STATES 

AN SRS SPECIAL RiroRT 

NSf 97 324 
THE SCIENCE & TECHNOLOGY 

RESOURCES OF JAPAN: 

A COMPARISON WITH THE UNITED STATES 

AN SRS SPECIAL REPORT 

PRINCIPAL AUTHOR: JEAN M JOHNSON 

DMSION OF SciENa REsOURa STUDIES - DIRECTORATE FOR SOCIAL BEHAVIORAL AND ECONOMIC SCIENCES 

NSF 97-324 
ii

Suggested Citation

National Science Foundation, Division of Science Resources

Studies, The Science and Technology Resources of Japan: A

Comparison with the United States, Special Report, NSF 97-324,

by Jean M. Johnson (Arlington, VA, 1997).

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iii

FOREWORD

In its 1988, report, The Science and Technology

Resources of Japan: A Comparison with the United

States, the Division of Science Resources Studies

(SRS) provides some key trends on science investments and outcomes. Science and technology decisionmakers and the research communities in Japan and the

United States found the report useful. This report

updates that report, providing data on the many

changes in the funding of science and in graduate

education in the United States as well as Japan.

The information presented here complements that

in a number of other sources. They include special

reports on Japanese science presented in several issues

of Science from the American Association for the

Advancement of Science (AAAS), the reports of NSF’s

Tokyo office over the last several years, and the

international coverage in the Science and Engineering

Indicators report of National Science Board.

Jeanne E. Griffith, Director

Division of Science Resources Studies

Directorate for Social, Behavioral,

 and Economic Sciences

November, 1997
v

ACKNOWLEDGMENTS

(SRS), particularly Lawrence Rausch, provided me

with some of the data on output indicators. Jennifer S.

Bond, Program Director of the Science and Engineering Indicators Program, enthusiastically gave guidance

and encouragement during my fellowship in Japan as

well as in the preparation of this report within the SRS

Division. Mary J. Golladay, Program Director of the

Human Resources Statistics Program, Carlos E.

Kruytbosch, then Program Director of the Science and

Engineering Personnel Program, and Ann Lanier,

Senior Analyst in SRS, reviewed the draft and provided

helpful suggestions. John Jankowski, Program Director

of the Research and Development Statistics Program,

also carefully read the draft and suggested changes in

reporting and footnotes in several R&D data series in

order to yield greater consistency with other SRS

reports. Anne Houghton, Julia Harriston, and Tanya

Gore of SRS provided copyediting, processing, and final

composition of this report. Laurie Leonard, Robert H.

Brown, Heather Gowallis, Jerrilyn Heller, and Paulette

Shaw of Global Associates, Ltd., provided proofreading, table and chart formatting, and composition services. Several peer reviewers provided useful comments and suggestions, including Shinichi Yamamoto,

Philip Altbach, Maria Papadakis, and Ryo Hirasawa.

Larry H. Weber, of NSF’s Division of International

Programs (who recently returned from a 5-year

assignment as Director of the NSF Tokyo office),

refined my understanding of recent changes in Japan in

both science policy and programs.

Dr. Jean M. Johnson, Senior Analyst, Science

and Engineering Indicators Program

This research was made possible by a 3-month

fellowship from the Science and Technology Agency

(STA) within Japan’s National Institute for Science and

Technology Policy (NISTEP). I received generous

assistance from Naoki Murata of the Ministry of

Education, Science, Sports and Culture (Monbusho) in

the Division of University Reforms, Larry H. Weber,

Masanobu Miyahara and Kazuko Shinohara of the

NSF Tokyo office, and Takayoshi Seiki of Monbusho’s

Science and International Affairs Bureau. I was fortunate to be situated in NISTEP to carry out this STA

fellowship. Prof. Ryo Hirasawa, Director of the

research group in which I worked, recommended key

members of the Japanese Science Policy Association

for me to interview, a group that represented university

professors, industrial R&D managers, and heads of

government agencies that had received recent increases

in R&D budgets and initiated new mechanisms for

funding research. They included Kaname Ikeda,

Yoichiro Hara, Shinichi Yamamoto, Shuichi Tsukahara,

Shinichi Kobayashi, Eiichi Maruyama, K. Ikizawa,

Nagayuki Marumo, Atsunobu Ichikawa, Tosiaki Ikoma,

Robert Lewis, Michi Oishi, Isao Karube, Akira

Arimoto, Prof. Imai, Masuo Aizawa, Sei-Ichi

Takayanagi, and Masao Ito. These interviews provided

background on the statistics collected and perspective

on the impact of the recent changes in science policy.

Within NISTEP, Fumihiko Kakizaki, Tanya Sienko,

Brendan Barker, and Akira Goto also shared their

relevant research.

My colleagues within the National Science Foundation (NSF), Division of Science Resources Studies
vii

CONTENTS

Section Page

FOREWORD ............................................................................................. iii

ACKNOWLEDGMENTS ............................................................................... v

INTRODUCTION ........................................................................................ 1

HIGHLIGHTS ............................................................................................ 3

CHAPTER 1. NATIONAL R&D PATTERNS .................................................... 7

Total R&D Expenditures ......................................................................................................................................7

R&D Expenditures by Source and Performer .....................................................................................................8

R&D by Character of Work ................................................................................................................................9

Scientists and Engineers .......................................................................................................................................9

CHAPTER 2. GOVERNMENT R&D............................................................. 13

Organization of S&T Policymaking ....................................................................................................................14

Main Science Funding Agencies ........................................................................................................................18

Monbusho ....................................................................................................................................................18

Science and Technology Agency (STA) .....................................................................................................18

Ministry of International Trade and Industry ...............................................................................................21

CHAPTER 3. INDUSTRIAL R&D ................................................................ 23

Overall Industrial R&D Trends ..........................................................................................................................24

R&D Concentration in Manufacturing Industries ..............................................................................................25

Industrial Scientists and Engineers Engaged in R&D ........................................................................................27

Industry–University Relations ............................................................................................................................27

CHAPTER 4. HIGHER EDUCATION .............................................................. 29

Institutions ..........................................................................................................................................................29

Trends in Undergraduate Education ...................................................................................................................29

Associate Degrees ......................................................................................................................................29

Bachelor’s Degrees .....................................................................................................................................30

Trends in Graduate Education ............................................................................................................................32

Graduate Enrollment ....................................................................................................................................32

Advanced Degrees ......................................................................................................................................33

Financed Support to Graduate Students .............................................................................................................35

Foreign Students in Graduate Programs.............................................................................................................35

CHAPTER 5. ACADEMIC R&D ................................................................. 37

Academic R&D Trends .....................................................................................................................................37

Government Financing of Research Facilities ....................................................................................................40
viii

Section Page

CHAPTER 6. OUTPUTS OF R&D ............................................................... 41

Scientific Literature ............................................................................................................................................41

Patents................................................................................................................................................................42

Industrial Productivity .........................................................................................................................................43

Royalties and Fees .............................................................................................................................................43

Trade in Advanced Technology Products ..........................................................................................................43

CHAPTER 7. SUMMARY ............................................................................ 45

Implications ........................................................................................................................................................45

Human Resources ...................................................................................................................................... 45

Higher Education ........................................................................................................................................ 45

International Collaborative Research ......................................................................................................... 45

Science Funding and Accountability .......................................................................................................... 46

Need for Further Research ................................................................................................................................ 46

METHODOLOGY AND NOTES ON DATA SERIES ........................................... 49

REFERENCES .......................................................................................... 51

APPENDIX: DETAILED DATA TABLES ........................................................ 55
1

INTRODUCTION

for innovative technologies in the 1970s following the

oil crisis; and the new funding programs of the 1990s

to change the culture of science in Japan and promote

breakthrough research.

Following World War II, Japan rebuilt its economy

by consciously investing in quality engineering to

improve on imported technologies. From 1945–72,

Japan successfully carried out a technology policy of

importing Western technology and investing large

amounts of R&D funding on adaptive technology

(Tamura and Peck, 1983). Initially significant in this

post-war development period were the policies of the

Natural Resources Section2 and the Scientific and

Technical Divisions of the Occupation Forces. The

latter played a key role in rehabilitating Japan’s

capacity for scientific inquiry (Yoshikawa and

Kauffman, 1994). The process of catching up after the

war included the selection of technologies developed

overseas, long-term investment in adaptive research,

and marketing of improved products. The Japanese

government assisted in this catch-up phase, most

notably by adopting trade policies that protected

Japanese firms from competition and by restricting

foreign investment in Japan (Odagiri and Goto, 1993,

and Goto, 1995).

The serious environmental problems of the 1960s

and the energy crisis of the early 1970s motivated

Japan to advance to a second phase of S&T policy:

building its capacity for indigenous and innovative

technology for sustainable development. The Japanese

S&T White Paper in 1973 began urging a restructuring

of research toward this end. This S&T document

provided a vision of a new focus for Japanese R&D—

that of performing basic research related to the goals of

developing environmentally sound technologies for the

nation (Science and Technology Agency (STA), 1973).

The ensuing 20 years saw a gradual evolution of

science structures and the introduction of new programs for the support of innovative research, including

a competitive grants-in-aid program in the universities,

new mechanisms for funding young scientists from

industry and universities on fixed-term appointments,

and a redirection of national laboratories toward longterm basic research.

While the United States invests more than Japan in

research and development (R&D), Japan’s R&D

investments relative to the size of its economy are

slightly larger than those of the United States. In 1994,

for example, Japan invested 2.6 percent of its gross

domestic product (GDP) in R&D compared with

2.5 percent by the United States. With a GDP that was

only 39 percent of that of the United States ($2.1 trillion versus $5.3 trillion in constant dollar terms) in

1994, Japan’s overall R&D expenditures were 41 percent of those of the United States—$54 billion versus

$133 billion.1

 Japan’s proportion of GDP invested in

overall R&D began to surpass that of the United States

in 1989 and has continued for several years. (From

1975–88, the United States invested a relatively larger

amount in R&D than did Japan.) (See table A-1.)

Japan’s effort in basic research, however, has been

somewhat lower than that of the United States, but this

area is currently receiving special attention in Japan.

From 1976–88, Japanese spending on basic research,

relative to the size of its economy, generally remained

at about 80 percent of U.S. levels (Papadakis and

Jankowski, 1991) and was conducted mainly in industrial laboratories. From 1980–92, average annual rates

of growth in investments in basic science in Japan

outpaced GDP growth rates by 5.9 percent versus

4.2 percent, respectively. By 1992, Japan’s basic

research expenditures reached about 84 percent of

those of the United States, representing about 0.38 percent of GDP. In that same year, U.S. basic research

expenditures represented 0.45 percent of GDP. While

Japan has traditionally invested a smaller percentage of

its overall R&D in basic research compared with the

United States (table A-6), since 1992, Japan has

adopted the goal of improving its basic research and

innovation capacity—particularly in universities—

through increasing government support of R&D.

To understand the context of this recent shift to

focus on basic science, the development of Japan’s

science and technology (S&T) policy can be briefly

summarized in three main phases: the well-known

catch-up phase following World War II; the initiatives

1 All dollar amounts in this report are in 1987 constant dollars

using purchasing power parity (PPP) conversions. PPP conversion

rates for Japanese yen are given in table A-1. PPPs are used to

convert a country’s national currency expenditures to a common

currency unit that allows real international quantity comparisons to

be made. PPPs are based on “market basket” pricing exercises. See

Methodology and Notes on Data Series for details on why PPP

conversions are preferable to market exchange rates.

2 The Natural Resources Section of the Occupation forces

reported on Japan’s natural resources, as well as resource requirements for Japan to recover and advance to the highest economic

level (Yoshikawa and Kauffman, 1994).
2

The third phase of S&T policy began in the 1990s

with the growing awareness among Japanese S&T

decision makers that continuing their formerly successful strategy of emphasizing research to adapt imported

technology would not provide the capabilities required

in new and rapidly developing technologies, such as

biotechnology, gene therapy, and software for computer networks (Ichikawa, 1996). Competition from

Asian emerging economies further increased Japan’s

awareness of the need for ever more advanced industries based on fundamental science.

In 1992, therefore, Japan’s Cabinet called for a

doubling of the government’s R&D budget as soon as

possible, and expanded funding of new programs and

mechanisms for innovation research. The S&T policy

document3

 of that year recommended a major renewal

of facilities and equipment in the universities and

national research institutes and an expansion of

competitive research grants. Subsequently, in 1995, the

Science Council of Japan created the legislative

support to increase the science budget through the

Science and Technology Basic Law. The S&T Plan of

1996 suggests that the government of Japan invest

17 trillion yen in R&D from 1996–2000, equivalent to

$74 billion in 1987 constant dollars. This would

represent a sizable increase (35 percent) over the

amount spent in the previous five years—approximately $51 billion in constant dollars from 1991–95

(table A-4). To this end, the Japanese government

increased its R&D budget in 1996 by 12.5 percent and

the Cabinet-approved 1997 R&D budget has an

additional 6.8-percent increase.4

Despite Japan’s economic recession, the Science

Council managed to generate unanimous support in the

Diet to use the sale of construction bonds to increase

science funding.5 The notion of restructuring the

economy through knowledge and education is widely

held throughout the Japanese culture (Rohlen, 1992).

Those Japanese over age 50 have lived through the

reconstruction of Japan from devastation to become a

leading world power. Those Japanese under age 50 are

told repeatedly that in a country with few natural

resources, education and S&T must be key national

resources for prosperity.

The passage of this new Science and Technology

Basic Law indicates that improving Japan’s S&T

capacity for innovative research is a national priority.

Mobilizing strategic basic research is deemed essential

for recovery from recession and for the long-term

sustainable development of Japan. In the summer of

1996, the Science and Technology Basic Plan required

national science agencies, as well as local governments, to submit 5-year plans on how they will accomplish this transition to a higher standard of S&T in

Japan.

Although increasing the government science

budget received unanimous support in the Diet, the

tactic used to generate new research funding through

the issuance of construction bonds remains controversial. The Science Council and the science community

have argued that this investment in innovative research

will yield breakthroughs for future industries, increasing the tax base and allowing repayment to the public

for all the bonds floated. Japan’s Ministry of Finance

and some Diet members are concerned, on the other

hand, about whether or not the bonds will be paid back

in a timely manner (Ikeda, 1996).

A deeper concern is whether or not this new money

will actually improve the quality of basic research and

innovation. Research scientists and science policy

decision makers alike cite the need to change the

culture of science in Japan to provide a more competitive research environment and to increase human

resources for science. (Kitazawa, 1996). Appropriately,

the Science and Technology Basic Plan (July 1996)

and the White Paper on Science and Technology

(1996) focus on steps to be taken from 1996–2000 to

improve the climate for basic research in Japan (STA,

1996).

This report provides comparisons of U.S. and

Japanese science resources and some initial evidence

that Japan is expanding the human and financial

resources for science, while improving the environment for basic research. The data cover S&T trends in

overall R&D from 1975–94 as well as more recent

changes in government and university research in

Japan. It also covers research trends in private industries and the training of personnel within Japanese

companies and in American universities. The report

concludes with the implications of these changes to the

U.S. and international research community and the

need for further research.

3 Basic Policy for Science and Technology (approved by the

Cabinet, April 1992) based on the 18th Recommendation of the

Council for Science and Technology (January 24, 1992), a report

on the Comprehensive and Basic S&T Policy: Toward the New

Century. 4 Still pending Diet approval.

5 The use of construction bonds required Ministry of Finance

approval.
3

HIGHLIGHTS

SCIENCE AND ENGINEERING

PERSONNEL

w Japan has more engineers as a proportion of its

overall labor force than the United States. In fact,

relative to the size of its labor force, Japan has

more engineers than any leading industrial nation

except Sweden (NSF,1996c). This engineering

concentration stems from the large number of

engineering degrees earned at the undergraduate

level in Japan (See section on Higher Education:

undergraduate level).

w The stock of scientists and engineers relative to the

labor force is sharply increasing in Japan but only

moderately so (for scientists) in the United States.

The Japanese stock of scientists and engineers

grew 8.0 percent annually from 1985–90. In

contrast, in the United States the stock of engineers

remained stable between 1986 and 1991, at 146 per

10,000 of the labor force, while the stock of

scientists moderately increased from 109 per

10,000 of the labor force in 1986 to 135 per 10,000

in 1991.

w Japan has more scientists and engineers engaged in

R&D relative to its labor force than the United

States. In 1993, Japan had 80 research scientists

and engineers per 10,000 of the labor force, while

in that same year U.S. researchers numbered 74 per

10,000 of the labor force.

GOVERNMENT R&D

w In the 1990s, the government is the dynamic

growth sector of R&D in Japan. After a decade of

stagnant funding throughout the 1980s, Japanese

government support of R&D has increased 5.7 percent annually in real terms in the 1990s, from

$9 billion in 1991 to $13 billion in the 1997

science budget authorization (in inflation-adjusted

PPP dollars).6 The Japanese government increased

its share of overall R&D support from 16 percent

in 1990 to 20 percent in 1994.

NATIONAL RESEARCH AND

DEVELOPMENT (R&D) PATTERNS

w In the last two decades, both the United States and

Japan have had strong growth in R&D, followed

by slight annual declines from 1991–94.

w Japan’s overall R&D investments are slightly

larger than those of the United States. In 1994,

Japan invested 2.6 percent of its gross domestic

product (GDP) in R&D whereas the United States

invested only 2.5 percent of its GDP. Japan’s

higher investment in overall R&D compared with

that of the United States (relative to the size of its

economy) began in 1989 and has continued for

several years.

w In non-defense R&D Japan significantly outspends

the United States relative to the size of its GDP.

Japan has invested between 2.5 percent and

2.8 percent of its GDP in civilian research for the

past 10 years. The United States has invested

approximately 2.0 percent of its GDP in civilian

R&D over the period from 1975–94. Defense R&D

in the United States declined to 20 percent of

overall R&D by 1994, from a high of 32 percent in

1987. In contrast, Japanese defense research is

only 1 percent of overall R&D.

w In Japan, industry has historically funded a larger

share of R&D than the government sector. In 1990,

industrially funded research reached 78 percent of

total R&D in Japan. By 1994, however, government support of total R&D reached almost 20

percent while industry support declined to 73 percent.

w The government of the United States has been a

more significant source of support for R&D than

that of Japan if defense R&D is included. U.S.

government-sponsored research grew rapidly in the

1980s, peaked in 1987, and has since declined,

following worldwide reductions in defense R&D

since the late 1980s. U.S. Government support of

overall R&D fell from 45.8 percent in 1985 to

35.0 percent in 1995. 6 The 1997 government science budget received Cabinet

approval and awaits Diet approval.
4

w In both the United States and Japan, industrially

funded R&D increased rapidly from 1975 to the

peak year in 1991, followed by stagnant or slightly

declining industrial R&D investments each year

until 1994. This downward trend may have been

reversed in the United States in 1995. Japanese

industry investment in R&D rose from $11.4 billion in 1975 to $44 billion in 1991, representing an

8.9-percent average annual growth rate. In the peak

year of industrial support of R&D, 1991, private

industry accounted for 78 percent of overall R&D

in Japan. Industrially supported research in Japan

declined an average of 3.1 percent annually from

1991–94.

w As a percentage of gross domestic product (GDP),

Japan’s industrial R&D doubled from 1975–90,

and declined slightly in the 1990’s. In 1994, the

ratio of overall Japanese industrial R&D to GDP—

1.9 percent—was comparable to the U.S. proportion of 1.8 percent. However, Japanese industrial

R&D is almost entirely (98 percent) financed by

companies themselves. This Japanese companyfunded R&D as a percentage of GDP has surpassed

the U.S. ratio of company-funded R&D to GDP

every year since 1975. In 1994, the ratio of company-funded R&D represented 1.9 percent of GDP

for Japan and 1.5 percent for the United States.

w Japanese industrial R&D is enhancing its science

base, and shifting among areas of concentration.

For example, the proportion of R&D in the science-based, newer industries of drugs and medicines, computers, and electrical machinery has

increased, and that in automotive industries,

chemicals, and the basic metals industry of iron

and steel has decreased.

w In both the United States and Japan, the number of

industrial scientists and engineers increased at an

average annual rate of growth greater than 5 percent throughout the 1980s. However, Japanese

industry continued to increase employment of

R&D scientists and engineers despite the economic

recession in the 1990s. In the United States,

industry decreased the number of scientists and

engineers employed in R&D by about 25,000 from

1992–94.

w Japan’s Cabinet Decision of 1992 called for

doubling the government R&D budget as soon as

possible. The Basic Plan for S&T of 1996 suggests

that the government allocate 117 trillion yen

(equivalent to approximately $74 billion in constant dollar terms) to R&D from 1996 to 2000, a

35-percent increase over the previous 5 years of

government funding of R&D. In contrast, the

10-year trend for government-sponsored research

in the United States has been a declining real

budget. At the peak of public funding for research

in 1987, the U.S. Government invested $57.9

billion. In preliminary data for 1997, U.S. Government investment decreased to $47 billion.

w Government-funded civilian R&D as a percent of

GDP declined both in Japan and in the United

States throughout the 1980s, followed by an

increase in support of civilian R&D in the 1990s.

However, from 1990–96, Japan had a higher

annual rate of growth in its government budget for

civilian research (5.9 percent) than the United

States (1.5 percent). By 1996, Japanese government civilian R&D rose to 0.54 percent of GDP;

that of the United States represented 0.40 percent

of GDP.

w The Japanese government spends the largest

portion of its R&D budget—an estimated 51 percent—on the general objective of “advancement of

knowledge,” which includes general university

research funds (not to be equated with basic

research). The second most important objective of

Government R&D funding in Japan is energy

research—approximately 21 percent. The U.S.

Government funds the majority of its R&D budget

on defense—55.3 percent in 1994—followed by

health research at approximately 17 percent.

INDUSTRIAL R&D

w Although government R&D budgets have recently

increased, industrial laboratories still conduct the

vast majority of Japan’s research, funding nearly

75 percent of the total resources for R&D and

employing nearly 70 percent of the research

scientists and engineers.
5

w Japan has more R&D scientists and engineers

(RSEs) per 10,000 employees in manufacturing

companies than the United States. In 1993, Japan

employed 622 RSEs per 10,000 employees in

manufacturing companies, compared with 520 in

the United States that same year. The higher

employment of RSEs in manufacturing companies

in Japan has existed since 1985.

HIGHER EDUCATION

w With a population that is less than one-half that of

the United States, Japan produced more than

91,000 engineering degrees in 1994 compared with

approximately 63,000 in the United States. Some

of this disparity stems from the difference in

taxonomies used in higher education: faculties of

computer science and solid-state physics are

included in engineering in Japanese universities.

Albeit with a broader definition of engineering,

Japanese undergraduate students earn 20 percent of

their degrees in engineering fields,7 far greater than

the 5 percent of students in the United States who

earn their undergraduate degree in engineering.

Relative to the size of its population, Japan has

three times more engineers earning university

degrees and entering the labor force than the

United States.

w Few students in Japan earn degrees in natural

science fields at the undergraduate level. Only

3.5 percent of the undergraduate degrees in Japan

are earned in natural sciences (physical, environmental, and biological sciences), and 2.9 percent

are earned in agricultural sciences. In the United

States, 9.3 percent of all undergraduate degrees are

earned in the natural sciences, and 1.1 percent are

earned in agricultural sciences.

w Graduate S&E programs, traditionally small in

Japan, have begun to expand. Graduate enrollment

in S&E fields increased from 31,000 in 1975 to

more than 91,000 in 1994. Even with the recent

expansion, however, Japanese graduate enrollment

in all S&E fields was still small compared with the

433,000 graduate S&E students enrolled in U.S.

universities. Particularly small are Japanese

graduate programs in the natural sciences (12,000

graduate students in Japan versus 120,000 in the

United States). Relative to its size, Japan’s graduate enrollment in natural sciences is about

one-quarter those of the United States. In contrast,

engineering graduate programs in Japan have

comparable enrollment to those in the United

States (relative to the size of its population).

w Until recently, most doctorates in natural sciences

and engineering in Japan were earned by industrial

researchers after many years of research within

Japanese companies. With the expansion of

university-based doctoral programs, however, the

proportion of these degrees earned is decreasing.

By 1994, more doctoral engineering degrees were

earned for research within university laboratories

(53 percent) than for those within industrial

research laboratories (47 percent).

FOREIGN STUDENTS

w The majority of foreign students in Japan are at the

undergraduate level. In 1994, only 17,800 of the

50,000 foreign students in Japan were studying at

the graduate level. By contrast, almost one-half of

the 425,000 foreign students in the United States in

that same year were studying at the graduate level.

Of approximately 191,800 students who came to

the United States for graduate studies in 1994,

almost one-half were pursuing degrees in the

natural science and engineering fields. Likewise,

more than one-half of the foreign graduate students

in Japan were in S&E fields.

w In 1992, foreign students earned 37 percent of

engineering doctoral degrees within Japanese

universities and 25 percent of natural science

doctoral degrees. By contrast, in U.S. universities

foreign students earned slightly more than 50 percent of the engineering doctoral degrees and onethird of the natural science doctoral degrees in 1993.

ACADEMIC R&D

w The decade-long trend, observed from 1980–91, to

a diminishing role for academic performers in total

Japanese research and development ended in 1992.

In that period, academic performance decreased

from a 17-percent share to a 12-percent share of

7

 Japan’s percentage is similar to the proportion of engineering

degrees in Singapore, Korea, and Taiwan. Only China has a

considerably higher concentration on engineering: 40 percent of

Chinese undergraduates study engineering (NSF, 1993).
6

total Japanese R&D performance. As a result of

strong support provided by the government’s 1993

and 1994 budgets, Japan’s academic performance

rose to a 14-percent share of total Japanese R&D.

w In the 1990s, Japan’s Ministry for Education,

Science, Sports and Culture (Monbusho) has

increased university research funding through

competitive grants-in-aid. In addition, after 1995

government agencies other than Monbusho have

been contributing directly to academic science.

Monbusho has recently written legislation to allow

direct funding of university researchers by other

science agencies: the Science and Technology

Agency (STA) and the Ministry of International

Trade and Industy (MITI). The majority of university research funding, however, still comes from

Monbusho’s formula funding of university chairs.

w By 1996, about 6,000 Japanese graduate students

and postdoctorates had some government funds.

The target is to fund about 10,000 government

fellowships by the year 2000. The ability of faculty

and national laboratories to hire postdoctorate

researchers and research assistants contributes to

the expansion of the universities’ capacity for

conducting basic research.

w The Japanese government, under Monbusho and

STA funding, is supporting cutting-edge facilities

and is a contributing member of the European

Center for Nuclear Research (known by its French

initials, CERN) for international cost-sharing.

Monbusho’s support of new world class facilities

and “big science” will allow the expansion of basic

science in the fields of astronomy, high energy

physics, space science, environmental earth

science, and bioscience.

OUTPUTS AND IMPACTS

w Japan’s goal of increasing its international cooperative research, as stated in S&T White Papers

since the mid-1980s, has resulted in increased

international coauthorship in its scientific literature. During the 1988–93 period, almost 11 percent

of Japan’s scientific articles in this set of journals

were internationally coauthored, up from 7 percent

in the previous period of 1981–87. While U.S.

scientists are still the main collaborators on

internationally coauthored articles with Japanese

scientists (43 percent), an increasing percentage of

Japan’s internationally coauthored articles are

based on collaborations with scientists from

European (34 percent) and Pacific Rim

(14 percent) countries, particularly China.

w Japan’s strong growth in industrial R&D throughout the 1980s corresponds with similar strong

increases in the number of patents during the same

period. From 1980–90, the number of U.S. patents

granted to Japanese scientists and engineers

increased at an average annual rate of 10.6 percent—from 7,000 in 1980 to 19,524 in 1990.

Despite a recent slowing in patent growth rate,

Japanese inventors still received about 23 percent

of all U.S. patents in 1993 and represented almost

half of all foreign patents granted in the United

States, indicating a strong level of inventiveness.

w While Japan has traditionally been a net importer

of technological know-how, data for 1990 show

Japanese manufacturing industries’ trade in

technological know-how nearly in balance in 1990.

By 1993, Japanese companies received more

royalties and fees than they paid for technological

know-how in several industry fields, including

industrial chemicals, ceramics, iron and steel, and

fabricated metals. Additionally, in motor vehicles,

the ratio of receipts to payments was 14 to 1,

reflecting the spread of Japanese know-how in

automobile manufacturing in Europe and Asia.

w In 1994 U.S.–Japan bilateral trade, Japan’s export

of advanced technology products reached more

than $28 billion (exceeding imports from the

United States by more than $14 billion), indicating

that Japan is strong in the creation of such industrial output. The largest trade surpluses for Japan

are from computers and telecommunications and

electronics. The largest deficits for Japan from

high technology trade with the United States result

from aerospace and nuclear technology, and

increasingly, from software.
7

CHAPTER 1. NATIONAL R&D PATTERNS

economic recession. Figure 2 shows the accelerated

growth in Japan’s GDP (5 percent annually) from

1975–91, followed by a stagnant GDP from 1991–94.

The sharp appreciation of the yen accelerated offshore

production and concerns about “hollowing out” of

Japanese industry and rising unemployment. These

economic problems provided the political urgency for

dramatic changes in Japanese S&T policy in 1995, to

stimulate the economy in the short run and revitalize

the economy in the long run.

Even with recent industrial cutbacks in R&D, for

the relative size of its economy, Japan invests an

amount in R&D slightly larger than that of the United

States. With a gross domestic product (GDP) that was

approximately 39 percent of that of the United States

($2.1 billion versus $5.3 billion) in 1994 (figure 2),

Japan’s overall R&D expenditures were 41 percent

of those of the United States ($54 billion versus

$133 billion) (table A-1). Thus, Japan invests a slightly

higher percentage of its GDP in R&D (2.6 percent

versus 2.5 percent, respectively) (figure 3).

In non-defense R&D, Japan significantly

outspends the United States relative to its GDP. Defense R&D in the United States declined to 20 percent

of overall R&D by 1994, from a high of 32 percent in

1987. In contrast, Japanese defense research is only

1 percent of overall R&D. Japan has invested between

2.5 percent and 2.8 percent of its GDP in civilian

TOTAL R&D EXPENDITURES

In the last two decades, both the United States and

Japan have had strong growth in R&D, followed by

slight annual declines from 1991–94. The similarity in

this pattern of growth can be seen in figure 1. Japan’s

national expenditures on R&D grew at an average

inflation-adjusted annual rate of more than 7 percent

between 1975 and 1991, from $18 billion in 1975 to a

peak spending of $57 billion in 1991.8 During this

period, U.S. real growth in R&D investments was

strongest between 1975 and 1985 (5 percent annually).

In the later half of the 1980s, growth in overall R&D in

the United States shifted to a more modest rate of

increase (2 percent annually), reaching $136 billion in

1991.

U.S. national R&D declined during 1993–94 in

constant dollars, in part due to a decline in military

R&D spending and in part from a slowdown in industrial R&D funding. In Japan, overall R&D declined in

1993 and 1994, not from cuts in military spending, but

from the decrease in industrial R&D caused by Japan’s

See appendix table A-1.

8 Budget figures provided in this report are adjusted for

inflation (constant 1987 dollars). The deflators for the Japanese yen

are provided in appendix table 1, as well as the purchasing power

parity conversions used for the dollar amounts. Japanese R&D data

are taken from OECD’s Main Science and Technology Indicators,

and cover the period from 1975–94. This report uses the adjusted

series for Japan. See methodology and technical notes on OECD

Adjusted Data for Japan. Japan’s government R&D budget

authorizations for 1995–97 provide more recent evidence of the

significant changes occurring in Japanese R&D.

0

1,000

2,000

3,000

4,000

5,000

6,000

1975 1980 1985 1990 1995

Billions of constant 1987 dollars

United States

Japan

Figure 2. Total GDP

See appendix table A-2.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1975 1985 1995

Millions of constant 1987 dollars

United States

Japan

Figure 1. Total R&D expenditures
8

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

1975 1980 1985 1990 1995

Percent

United States

Japan

Figure 4. Nondefense R&D/GDP ratios

See appendix table A-3.

research for the past 10 years. (See figure 4.) The

United States has invested approximately 2.0 percent

of its GDP in civilian R&D over the period 1975–94.

Government investment in non-defense R&D as a

percent of GDP shows an even wider gap between the

United States and Japan. Estimated government nondefense R&D expenditures as a percent of GDP reached

0.51 percent in Japan in 1996. U.S. Government

expenditures for nondefense research were 0.40 percent of GDP in 1995 (table A-3).

However, the long-term trend in Japan of a continual

decline of government as a source of R&D funding

reversed itself in the 1990s. In the 1970s the Japanese

government funded approximately 30 percent of total

R&D. This government proportion declined at 5 percent annually throughout the 1980s, and represented

only 16 percent of overall R&D by 1990. In that year,

industrially funded research reached 78 percent of total

R&D in Japan. Since 1992, however, government

expenditures represent an increasing percentage of the

total, while industry funding of R&D is declining as a

percent of total R&D. By 1994, government support of

total R&D reached almost 20 percent; industry declined to 73 percent (table A-4 and figure 5).

The government of the United States has been a

more significant source of support for R&D than that

of Japan if defense R&D is included. U.S. Government sponsored research grew rapidly in the 1980s,

peaked in 1987, and has since declined, following the

worldwide reductions in defense R&D since the late

1980s. U.S. Government support of overall R&D fell

from 45.8 percent in 1985 to 35.0 percent in 1995

(table A-4).

In the performance of research, Japan and the

United States have a similar pattern of shares of

research performed by industry, higher education, and

government (figure 6). Japanese industry increased its

share to 76 percent of total research by 1990. In the

past 5 years, however, industry research dropped to

72 percent of overall R&D, as universities and national

laboratories have accounted for an increasing share of

research performed in Japan. In the United States,

the proportion of R&D performed by industry has

increased from 68 percent in 1975 to a peak of 74 perUnited States

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

1975 1980 1985 1990 1995

Japan

Percent

Figure 3. Total R&D/GDP ratios

See appendix table A-2.

R&D EXPENDITURES BY SOURCE

AND PERFORMER

Industry historically has funded a larger share

of R&D in Japan than has the government sector.

Figure 5. National R&D by source of funds: 1994

See appendix table A-4.

0

20

40

60

80

S eries1

S eries2

P ercent

Government Industry

Japan

United S tates
9

increased from 68 percent in 1975 to a peak of 74 percent in 1985, with a slight decline since then. Coinciding with this industrial research was a decade-long

trend in the United States toward a somewhat larger

share of R&D performed by universities, from 11.6

percent in 1985 to 15.7 percent in 1994

(table A-5).

R&D BY CHARACTER OF WORK

Based on OECD data, Japan and the United States

report relatively similar proportions of basic, applied,

and development work, with basic research having a

slightly higher proportion of total R&D in the United

States than in Japan. In 1992, 16.3 percent of R&D

expenditures in the United States went to basic research. In that same year, 13.9 percent of R&D expenditures in Japan went to such research (table A-6). In

the national survey of R&D, Japanese industry reports

that they perform a significant amount of this basic

research (about 37 percent).

Japan plans to increase its conduct of basic research and improve laboratory conditions in universities. The background to the Basic Law for Science and

Technology states that the conditions for basic research

in Japan are far below standards and conditions in the

United States and Europe. The increase in the government funding of science is to improve these conditions,

and to pursue frontier research in science and

technology.

SCIENTISTS AND ENGINEERS

Japan has more engineers as a proportion of its

overall labor force than the United States. In fact,

relative to the size of its labor force, Japan has more

engineers than any leading industrial nation except

Sweden (NSF, 1996c). This engineering concentration

stems from the large number of engineering degrees

earned at the undergraduate level in Japan. (See section

on Higher Education: undergraduate level.) In 1990,

Japan had 342 scientists and engineers per 10,000

members of the non-academic labor force, compared

with 281 for the United States in 1991. The engineering labor force in Japan is concentrated in fields of

electrical and electronic engineering and computer

processing technology (table 1). Based on the large

number of engineering degree recipients entering the

labor force each year, Japanese industries hire engineers in the services, manufacturing, and construction

branches of their economy far more often than similar

industries in the United States.

In contrast to large numbers of engineers, Japan

still has relatively few employed scientists in their

labor force. In 1991 the United States had 135 nonacademic scientists per 10,000 members of the labor

force compared with 104 in Japan in 1990, but the gap

is narrowing (table 1).

The increasing concentration of science and engineering personnel in the Japanese labor force contrasts

with the situation in the U.S. labor force. The stock of

scientists and engineers relative to the labor force is

sharply increasing in Japan; while only moderately

increasing for scientists in the United States. The

Japanese stock of scientists and engineers grew

8.0 percent annually from 1985–90 (table 1). During

the same time period, the Japanese labor force grew at

1.4 percent annually. In contrast in the United States,

the stock of engineers remained stable between 1986

and 1991, at 146 per 10,000 of the labor force. The

U.S. stock of scientists relative to the labor force

moderately increased from 109 per 10,000 of the labor

force in 1986 to 135 per 10,000 in 1991, representing a

4-percent annual growth rate. The U.S. labor force

grew 1.2 percent annually from 1986–91.

See appendix table A-5.

Figure 6. National R&D expenditures by performer: 1994

0

20

40

60

80

Government Industry Higher

education

Other

Series1

Series2

Percent

Japan

United States
10

The United States, however, has more women

scientists and engineers in the labor force than does

Japan. In the United States, women account for 38 percent of the non-academic scientists and 8 percent of the

non-academic engineers. In Japan, women hold only

15 percent of the non-academic science positions and

3 percent of the engineering positions (table 2).

Distinct from the total stock of scientists and

engineers is the number who are currently active in

R&D. Two decades ago, the United States had more

scientists and engineers engaged in R&D relative to its

labor force than did Japan. These positions have

reversed in the 1990s. Although the United States still

has about twice the number of research scientists and

engineers as does Japan, relative to the size of its labor

force, Japan now has more research scientists and

engineers than the United States. In 1993, Japan had

80 research scientists and engineers per 10,000 of the

labor force. In that same year, U.S. researchers numbered 74 per 10,000 of the labor force. In Japan, a

long-term trend of a 4-percent annual growth rate of

active research scientists and engineers continued

Category

[Number] [Percent] [Number] [Percent]

Scientists and engineers 

Total..................................... 2,224,347 100.0% 3,560,000 100.0%

Male..................................... 2,079,527 93.5 2,760,000 77.5

Female................................. 144,820 6.5 800,000 22.5

Scientists.............................. 674,571 100.0 1,714,000 100.0

Male................................. 570,724 84.6 1,066,000 62.2

Female............................ 103,847 15.4 648,000 37.8

Engineers............................. 1,549,776 100.0 1,862,000 100.0

Male................................. 1,508,803 97.3 1,694,000 90.9

Female............................ 40,973 2.7 152,000 8.1

SOURCES: U.S. Bureau of the Census, Center for International 

 Research, Scientists and Engineers in Industrialized 

 Societies (Washington, D.C.: U.S. Bureau of the Census, 

 1992) and Scientists and Engineers in Japan: 1990 

 (Washington, D.C.: U.S. Bureau of the Census, 1996). 

 See Technical Notes for differences in sample size used 

 for tabulations in these publications.

Table 2. Employed (non-academic) scientists and 

engineers, by sex

Japan (1990) United States (1991)

Category 1980 1985 1990 1980 1986 1991

Scientists and engineers, total............ 940,301 1,514,200 2,224,347 2,369,200 3,047,000 3,560,000

Per 10,000 labor force 2/................. 166 252 342 218 255 281

Engineers........................................ 744,380 1,124,300 1,549,776 1,486,400 1,749,000 1,846,000

 Per 10,000 labor force................ 132 187 238 137 146 146

 Civil 3/........................................ 351,929 485,400 719,167 214,300 233,000 223,000

 Electrical/electronic.................... 119,499 233,100 318,277 351,600 550,000 562,000

 Industrial and mechanical 4/....... 272,952 405,800 512,332 920,500 966,000 1,061,000

Scientists......................................... 195,921 389,900 674,571 882,800 1,298,000 1,714,000

Per 10,000 labor force................. 35 65 104 81 109 135

Natural........................................ 63,729 67,100 110,364 471,400 420,000 466,000

Computer..................................... 129,764 320,500 558,463 192,100 580,000 876,000

Social........................................... 2,428 2,300 5,744 219,400 298,000 372,000

1/ Non-academic scientists and engineers employed as scientists and engineers.

2/ Table A-7 shows labor force numbers used for each country, based on OECD data.

3/ Civil engineering includes surveying and architects.

4/ Industrial/mechanical engineering includes agriculture and forest technology, chemical, mechanical, metallurgical, mining, and other

 engineering and technology.

SOURCES: National Science Foundation, Division of Science Resources Studies, The Science and Technology Resources of Japan: A Comparison 

 with the United States (Washington, D.C.: NSF 88-318); U.S. Bureau of the Census, Center for International Research, Scientists and

 Engineers in Industrialized Societies (Washington, D.C.: U.S. Bureau of the Census, 1992) and Scientists and Engineers in 

 Japan: 1990 (Washington, D.C.: U.S. Bureau of the Census, 1996). See Technical Notes for differences in sample size used for 

 tabulations in these publications.

Table 1. Stock of scientists and engineers: various years /1

Japan United States
11

throughout the period from 1975–93. The number of

research scientists and engineers in the United States

showed comparable growth from 1975–91, but has

since grown more slowly. Growth in employment of

research scientists and engineers in the United States

was less than 1 percent (average annual increase)

between 1990 and 1993 (table A-7 and figure 7).

The Japanese have a higher percentage of their

R&D scientists and engineers (RSEs) working in the

higher education sector than does the United States,

21.8 percent versus 13.3 percent, respectively (table 3).

As in the United States, relatively few of Japan’s RSEs

are employed in government laboratories. Under the

new legislation, the Japanese government is focusing

particularly on the scientists and engineers in universities and national laboratories—numbering approximately 145,000—to create for them an environment

more conducive to breakthrough research (table 3). The

government R&D section describes new competitive

funding programs aimed at enhancing the capacity for

basic research, mainly in the university sector.

The number of permanent government researchers

will not increase as the government budget for science

increases, so a very significant component of the new

programs is the ability of faculty and directors of

national laboratories to hire postdoctorate researchers

and research assistants. In fact, the total number of

government employees will likely decrease by some

percentage each year as the Japanese government

decreases its hiring and the ceiling on S&E personnel

in national laboratories (Ichikawa, 1996). Thus, new

programs, which include funding for research assistants and postdoctorate positions, provide research

directors the opportunity to expand their activity.

While lifetime employees in universities will decrease,

opportunities for fixed-term appointments (of various

lengths of time) will increase. The Japanese government plans to fund about 10,000 graduate and

postdoctoral positions a year.

Reforms for S&E personnel are also underway at

the National Personnel Authority (NPA), which tightly

controls hiring of research personnel for all national

universities and national research institutes. There is

currently a civil service entrance examination and a

set of interviews that regulate the hiring of any professor or research scientist at national universities or

institutes. Reforms are being discussed to deregulate

personnel hiring in the academic sector over the

next several years, so that national universities and

institutes could hire scientists they want to have for

their particular research strengths or teaching skills

(Ichikawa, 1996).

Sector United United 

Japan States Japan States

Total.................................... 526,501 962,700 100.0% 100.0%

Industry............................ 764,500 367,278 69.7 79.4

Higher education............. 114,582 128,000 21.8 13.3

Government and

private non-profit......... 29,907 60,000 5.7 6.2

Other............................... 14,734 10,200 2.8 1.1

NOTE: Japanese data are based on OECD adjusted numbers 

 for full time equivalents (FTE).

SOURCES: Organization for Economic Co-operation and 

 Development,Technology Indicators, Paris, OECD, 

 1995; Government of Japan, National Institute of 

 Science Main Science and and Technology Policy, 

 Science and Technology Agency, Science and 

 Technology Indicators : 1994 , NISTEP Report No. 37 

 (Tokyo, 1995); Science Resources Studies Division, 

 National Science Foundation, National Patterns of 

 R&D Resources: 1996 (Arlington, VA: NSF, 1996).

Table 3. Number of scientists and engineers engaged 

in R&D by sector: 1993

[Number] [Percent]

See appendix table A-7.

40.0

50.0

60.0

70.0

80.0

90.0

1975 1980 1985 1990

Japan

United States

Per 10,000 labor force

Figure 7. Scientists and engineers in R&D
13

In the 1990s, the government is the dynamic

growth sector of R&D in Japan. The Japanese government increased its share of overall R&D support from

16 percent in 1990 to 20 percent in 1994 (table A-4).

In 1995, the Japanese government provided two

supplemental budgets for R&D that together added

$3.5 billion9 for funding competitive research in universities, improving university research facilities,

computer networks, and large-scale R&D equipment

and facilities.

The Basic Plan for S&T of 1996 suggests that the

government allocate 117 trillion yen (equivalent to

approximately $74 billion in constant dollar terms) to

R&D from 1996 to 2000. For Japan to meet the suggested investment of $74 billion would require an

average annual growth rate of around 10 percent in

government R&D investments, far higher than past

annual funding increases. Historically, Japanese government R&D expenditures have grown about 4 percent annually, from $4.8 billion in 1975 to $8.9 billion

in 1990. However, Japan’s government R&D investments accelerated somewhat in the more recent period

between 1990 and 1995, at 5 percent annually. Additionally, in 1996 the Japanese government increased its

R&D budget by 12.5 percent, reaching $12.2 billion.

Using the 1996 government budget as a base year,

a linear growth in the government R&D investment

required to allocate $74 billion would be an increase of

approximately $1.5 billion each year from 1996 to

2000 (table 4). The suggested amount of $74 billion

would represent a sizable increase (35 percent) over

the amount spent in the previous 5 years, approximately $51 billion in constant dollars from 1991–95.

The Cabinet-approved 1997 R&D budget represents a

6.8-percent increase over 1996. The rate of increases

in the 1996 and 1997 budgets together effectively meet

the required level of growth. If Japan continues the

trends of the 1996 budget and the approved 1997

budget, the year 2000 budget, or shortly thereafter,

could meet the doubling goal.

In contrast to the trend in Japan of increasing

government support for R&D, the 10-year trend for

government sponsored research in the United States

has been a declining real budget. At the peak of public

funding for research in 1987, the U.S. Government

invested $57.9 billion constant 1987 dollars. In preliminary data for 1997, U.S. government investment

decreased to $47 billion (figure 8). Over this same time

period, the U.S. Government decreased its share of

overall R&D support from 46.2 percent to 33.6 percent

(table A-4).

Although the U.S. Government spends more on

R&D in absolute terms, relative to the size of its GDP,

the Japanese government has outspent the U.S. Government in non-defense R&D for more than a decade

(table A-3). In 1975, governments in both the United

States and Japan were investing the equivalent of about

0.5 percent of their respective GDPs in nondefense

R&D. Government funded civilian R&D as a percent

of GDP declined both in Japan and in the United States

throughout the 1980s, followed by an increase in

support of nondefense R&D in the 1990s. However,

from 1990–96, Japan had a higher annual rate of

CHAPTER 2. GOVERNMENT R&D

9 This is in addition to the Japanese government’s $10.9 billion

budget for science in 1995.

Year Constant 1987 dollars

[Millions] 

1996....................................... $12,198

1997....................................... 13,444

1998....................................... 14,817

1999....................................... 16,331

2000....................................... 18,000

SOURCE: NSF/SRS estimation.

Table 4. A linear estimation of Japan's 

proposed increases in government R&D

See appendix table A-4.

Figure 8. Government-funded R&D

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1975 1985 1995

Millions of constant 1987 dollars

United States

Japan
14

growth (5.9 percent) in its government budget for

civilian research than the United States (1.5 percent).

By 1996, Japanese government civilian R&D rose to

0.54 percent of GDP; that of the United States represented 0.40 percent of GDP (figure 9 and table A-3).

The Japanese government spends the largest

portion of its R&D budget—an estimated 51 percent—

on the general objective of “advancement of knowledge,” a general function which includes general

university research funds (GUF), and should not be

equated with basic research (figure 10). The U.S.

Government funds the majority of its R&D budget on

defense—55.3 percent in 1994—down from

67.5 percent in 1985. The second most important

objective of government R&D funding in the United

States is health research, approximately 17 percent.

The emphasis of the Japanese government on

various R&D objectives has been relatively stable

throughout the past decade, except for an increase in

energy, advancement of knowledge, and defense.

The relative share of agricultural research declined

to compensate for these increases (table A-8). In this

same time period, the U.S. Government increased its

support of general science and health research, and

decreased its support of defense research.

ORGANIZATION OF S&T

POLICYMAKING

The four most important organizations for S&T

policymaking in Japan are the Prime Minister’s Council for Science and Technology (CST), the Science and

Technology Agency (STA), and two ministries: the

Ministry of Education, Science, Sports and Culture

(herein referred to as Monbusho), and the Ministry of

International Trade and Industry (MITI). CST, composed of cabinet ministers and agency heads (e.g.,

Finance, Monbusho, STA, and the Economic Planning

Agency), as well as representatives from universities

and industry, advises the Prime Minister’s office on

long-term research goals. The role of the CST is becoming more important. In 1992, the CST provided the

framework for the current S&T policy called, “General

Guidelines for S&T,” reemphasizing the importance of

focusing on basic research. CST, chaired by the Prime

Minister, with a secretariat within STA, is attempting

to coordinate science programs across all ministries,

and is considering the possibility of integration of

science programs across government agencies. Such

integration of programs may be discussed in future

plans (Ito, 1996).

One difference between Japan and the United

States in funding R&D is that the above mentioned

main Japanese science agencies use intermediate

organizations to carry out their funding and selection

of proposals. (U.S. science agencies, such as the

National Science Foundation and the National Institutes of Health, fund the research community directly.)

For example, Monbusho administers its fellowship

See appendix table A-3.

Figure 9. Government nondefense R&D/GDP ratio

0.30

0.35

0.40

0.45

0.50

0.55

Percent of GDP

Japan

United States

1981 1985 1990 1995

Figure 10. Government R&D funding, by objective: 1994

NOTE: In Japan, advancement of knowledge includes general

 university funds and faculty salaries.

See appendix table A-8.

0

10

20

30

40

50

60

Agriculture

Industrial development

Energy

Health

Advancement of knowledge

Defense

Japan

United States

Percent
15

programs for doctoral students, postdoctorate researchers and international exchange of scientists, as well as

its newly initiated “Research for the Future” funding

program, through the Japan Science and Technology

Corporation (JST) .10 Several STA programs are implemented by the Japan Development Research Corporation (JDRC). The Agency of Industrial Science and

Technology (AIST) and the New Energy and Industrial

Technology Development Organization (NEDO) carry

out a variety of MITI’s science programs. Thus funding

targets for a program can sometimes be described in

terms of the implementing agency. For example, under

the S&T Basic Plan for 1996, “There is a target of

funding 10,000 JSPS fellowships11 for postdoctorates

and graduate students by the year 2000.” (See section

on Academic Research.)

Within the Science and Technology Basic Plan of

1996, the S&T structure has remained relatively unchanged, but component parts are expected to work

together (figure 11). There is greater cooperation

among Monbusho and the other main science agencies.

Plans presented to the Ministry of Finance between

June and August of 1996 dealt with technical improvements and means to remove barriers among the three

major science ministries. For example, for the first

time, STA and MITI may directly fund research

projects in universities. This level of cooperation

between agencies is a new development (Ito, 1996).

New funds have been provided to the main S&T

agencies for new basic research programs, often referred to as “basic strategic research” (table 5). This

term for basic research reflects Japan’s view of its need

to invest in basic research as an overall strategy; it

does not refer to targeting certain areas. In addition to

these new programs, science and technology agencies

are implementing a range of policies which give priority to the following four areas:

w improving the scientific research environment of

universities and national laboratories by increasing

and diversifying sources of funding, and upgrading

facilities and equipment;

w promoting the training of researchers through

improvements of graduate schools, enlarging

fellowships, and facilitating researcher mobility;

w improving joint research systems and developing

centers of excellence; and

w contributing to international scientific research

through support for exchange of scholars and

international research.

10 The Japan Development Research Corporation (JDRC) was

recently combined with JICST to form the Japan Science and

Technology Corporation (JST). 11 The fellowship total of 10,000 will include positions funded

by JSPS (the largest number) and by STA (through JST) and MITI

(through NEDO).

Ministerial R&D budgets are composed of:

(1) funds for ongoing research-related operations and

personnel costs of government research institutes and

higher educational institutions, and (2) funds for

research promotion-primarily in the form of external

grants.

Monbusho and STA have the largest budgets,

accounting for 49 percent and 26 percent, respectively,

of the government’s total R&D budget (figure 12).

MITI is the third largest science funding agency

(12 percent), followed by the Defense Agency

(6 percent), the Ministry of Agriculture (4 percent), and

the Ministry of Health and Welfare (3 percent). Most

of Monbusho’s funds are committed to the ongoing

operations of the university system, including general

university funding, as previously described.

Constant Constant 

1987 1987

Agency Yen yen Dollars 1/ dollars

Total..... ¥32,000 ¥29,329 $172 $140

Science and Technology 15,000 13,748 81 65

 Agency........................

Monbusho...... 11,000 NA 59 48

Ministry of International 2,650 2,429 14 12

Trade and Industry.......

Other ministries......... 3,350 3,070 18 15

1/ All dollar amounts for R&D in this report use PPP conversion rates.

KEY: NA = not available

SOURCE: Science and Technology Agency, Research and

 Development Promotion Division, unpublished 

 tabulations, 1996.

Table 5. Government funding of new programs 

[Millions]

for basic strategic research: 1996
Cabinet

Min. of

Foreign

Affairs

Council for Science and

Technology

Atomic Energy Commission

Nuclear Safety Commission

Space Activities Commission

Council for Ocean

Development

Science Council of Japan

Resources Council

Consulting Engineer Council

Council for Aeronautics, Electronics,

and other Advanced Technologies

Radiation Council

Science and

Technology

Agency

National Aerospace

Laboratory

National Research Institute

for Metals

National Institute of Radiological

Sciences

National Research Institute for Earth

Science and Disaster Prevention

National Inst. of Science and

Technology Policy

Power Reactor and

Nuclear Fuel

Development Corp.

Japan Atomic Energy

Research Inst.

National Space

Development Agency

of Japan

¿ v

Japan Information

Center of Science and

Technology

Japan Marine Science

and Technology Center

Inst. of Physical and

Chemical Research

Research Development

Corporation of Japan

National

Public Safety

Commission

National

Public Agency

National Res.

Inst. of Police

Science

Economic

Planning

Agency

National Inst. for

Research

Advancement

Defense

Agency

Technical R&D

Inst.

1st–5th Research

Centers

Hokaido

Development

Agency

Environment

Agency

Hokkaido

Development Bureau

¿ v

National Land

Agency

Prime

Minister’s

Office

Min. of

Finance

Civil Engineering

Reserach Inst.

National Inst. for

Environmental Studies

National Inst. for

Minamata Disease

Printing Bureau Research Inst. of

Printing Bureau

National Tax

Administration

Agency

National Research

Inst. of Brewing

Bio-oriented

Technology Research

Advancement Inst.

Min. of

Education

Science Council

Geodesy Council

National

Universities

Laboratories Attached

to Universities

Inter-University

Research Institutes

Japan Academy

Japan Society for the

Promotion of Science

Min. of

Health and

Welfare

Inst. of Population

Problems

National Inst. of

Hospital

Administration

Inst. of Public Health

National Inst. of

Health National Inst. of

Health and Nutrition

National Inst. for

Leprosy Res.

National Inst. of

Hygienic Science

National Cancer

Center

National

Cardiovascular Center

National Center of

Neurology and

Psychiatry

International Medical

Center of Japan

The Adverse Drug Sufferings Relief

and Research Promotion Fund

£
Min. of

Agriculture,

Forestry, and

Fisheries

£

National Res. Inst. of

Agricultural

Engineering

National Agriculture

Research Center

National Agricultural

Experiment Stations

National Inst. of

Agrobiological

Resources

National Res. Inst. of

Agricultural Economics

National Inst. of AgroEnvironmental

Sciences

National Inst. of

Sericultural and

Entomological Science

National Inst. of Animal

Industry

National Inst. of Animal

Health

National Grassland

Research institute

National Food

Research Inst.

Fruit Tree Research

Station

Japan International

Research Center for

Agricultural Sciences

National Res. Inst. of

Vegetables, Ornamental

Plants, and Tea

Agriculture, Forestry,

and Fisheries

Research Council

Forestry Agency Forestry and Forest Products

Research Institute

Fisheries Agency Regional Fisheries

Research Labs.

National Research Inst. of

Aquaculture

National Research Inst. of

Fisheries Engineering

Bio-oriented Technology

Reseach Advancement

Institution

Min. of

International

Trade and

Industry

Industrial Technology

Council

Patent Office

Small and Medium

Enterprise Agency

Agency of Natural

Resources and

Energies

Agency of Industrial

Science and

Technology

Electrotechnical

Laboratory

National Institute for

Advanced Interdisciplinary Research

National Instiute for

Research and

Environment

National Res. Lab. of

Metrology

Hokkaido National

Industrial Research

Institute

Mechanical

Engineering Laboratory

Kyushu National

Industrial Research

Institute

National Institute of

Materials and Chemical

Research

Shikoku National

Industrial Research

Institute

Government Industrial

Res. Inst. Osaka

Tohoku National

Industrial Research

Institute

Government Industrial

Res. Inst. Nagoya

Cyugoku National

Industrial Research

Institute

National Institute of

Bioscience and Human

Technology

Geological Survey of

Japan

Japan Key Technology Center

New Energy and Industrial

Technology Development

Organization

¬

Min. of

Transport

¬

Ship Res. Inst.

Council for Transport

Technics

Electronic Navigation

Research Inst.

Port and Harbour Res. Inst.

Traffic Safety and

Nuisance Research Inst.

District Port Construction

Bureau

Maritime Safety

Agency

Maritime Safety Agency

Research Center

Hydrographic Department

Meteorological

Agency

Meteorological Res. Inst.

Japan Atomic Energy Res.

Inst.

National Space Development

Agency of Japan

Min. of Post and

Telecommunications

Telecommunications

Technology Council

Communications Res. Lab.

Res. Inst. of Industrial

Safety

NHK Science and

Technical Res. Labs.

Japan Broadcasting

Corporation

Telecommunications

Satellite Corporation of

Japan

Japan Key Technology

Center

National Space

Development Agency

of Japan

Min. of Labour

National Inst. of Industrial

Health

Geographical Survey

Institute

Min. of

Construction

Public Works Res. Inst.

Building Res. Inst.

Min. of Home

Affairs

Fire Defense Agency Fire Res. Inst.
18

MAIN SCIENCE FUNDING AGENCIES

MONBUSHO

With approximately one-half of the Japanese

government R&D budget in 1994, Monbusho is responsible for promoting science at all levels of education, as well as funding university research, attached

laboratories, and national inter-university research

institutes. Several of the latter joint-use laboratories

were established by Monbusho in the second half of

the 1980s to upgrade university research facilities, and

to provide access to researchers from all national

universities. These include the Institute of Statistical

Mathematics, the National Astronomical Observatory,

and the National Institute for Fusion Science.

In the 1970s, Monbusho financed the building of

new universities and research facilities, such as

Tsukuba University and the National Laboratory for

High Energy Physics (KEK). The science policy in the

1980s was focused on halting further expansion of

universities and decreasing budget ceilings (universities would get less than the previous year). The expansion of facilities’ budgets in the 1990s is primarily to

upgrade obsolete university facilities rather than build

new ones.

Supplemental budgets in 1993 and 1995, requested

from the Diet (Japanese Parliament), provided large

increases for research facilities as economic stimulus

packages. In 1993, the supplemental budget of

560 billion yen (2.4 billion dollars) was used for muchneeded improvements in university equipment and

facilities. In 1995, the supplemental budgets for science,

amounting to 680 billion yen (almost 3 billion dollars),

allowed agencies to shorten the construction period of

“big science” facilities and to provide additional fellowships for foreign and domestic scholars.

The Central Council for Education, Monbusho’s

most important body for forming education policy,

recommended revitalizing Japanese universities with

major funding increases. In 1995, Monbusho increased

its competitive grants-in-aid program to university

professors within national universities to approximately $440 million. These additional funds allowed

them to apply for, and obtain, larger competitive grants

than previously had been available for university

researchers. As reported in the 1996 national R&D

survey, these competitive grant funds in 1995 were in

addition to the more than $3 billion Monbusho provided for base salaries and university research at these

institutions through formula funding (table 6).

Monbusho uses the Japan Society for the Promotion of Science (JSPS) to administer its fellowships for

doctoral students and postdoctorate researchers, as

well as the new Research for the Future program for

university research.

As with all the major science organizations in

Japan, Monbusho has advisory boards with representatives from the science community in both industry and

academia. For example, Monbusho’s University Council provides advice on matters concerning universities

through several working groups. One of these groups

provided a forecast of S&E personnel needs in 1991 at

the height of Japan’s economic growth period, that was

very optimistic about industry’s future demand for

highly trained personnel. This report of the University

Council was the basis for Monbusho expanding graduate programs and increasing the limits on graduate

student admissions.

SCIENCE AND TECHNOLOGY AGENCY

(STA)

The STA is responsible for funding a number of

national laboratories, such as the National Aerospace

Laboratory and the National Institute of Science and

Technology Policy. (See figure 11 for the list of laboratories under each science agency.) They also fund big

science facilities such as the RIKEN Ring Cyclotron

and deep-sea research vessels, as well as competitive

See appendix table A-9.

Figure 12. R&D budget share of Japanese ministries

and agencies: 1994

Health 3%

Monbusho 

49%

STA 26%

MITI 12%

Agriculture 

4%

Defense 6%

Others 1%
19

grants-in-aid funding programs. The STA also contributes to formation of government science policy through

detailed surveys of research areas, and produces an

annual “White Paper on Science and Technology,”

which presents the results of these surveys.

Throughout the 1980s STA provided large funding

and sophisticated equipment to its national laboratories, and they also experimented with a new funding

mechanism for interdisciplinary basic research in

strategic areas. This program of Exploratory Research

for Advanced Technology (ERATO), managed by JST,

sought to improve the quality of research in the Japanese system by bringing together university professors,

industry researchers, and scientists from national

laboratories. Under this scheme, researchers undertake

a project for a 5-year duration. These programs required slowly changing the culture of science to move

toward joint projects between industries and universities (Koizumi, 1993). (See “ERATO Evaluation”

conducted by the NSF-supported Japanese Technology

Evaluation Center (JTEC).)

STA’s funding of competitive grants programs to

promote basic research increased by more than

$100 million from 1990–96. STA’s list of 10 such

programs (table 7) includes both established programs

introduced in the 1980s, such as ERATO and the

Frontier Research Program, as well as the new Strategic Basic Research Promotion. Most STA research

funds are channeled through a number of public research corporations, such as the JST and the Institute

of Physical and Chemical Research (RIKEN). (See

RIKEN’s “Frontier Research.”) The International Joint

Research Program, begun in 1989 and managed by

JST, funds international collaborative basic research

with other countries. Another STA funded program,

begun in 1991, is the so-called Precursory Research for

Embryonic Science and Technology System

(PRESTO). This program is to fund a single individual

for basic research, rather than the scientific teams

funded in the above programs. While the ERATO

projects were strictly off-campus, the 1996 basic

research programs of STA and MITI can now directly

fund university professors and build up the excellence

of their university laboratories.

Year Total funding Monbusho 1/ Total competitive Monbusho Other government /2 Industry

1982......... $2,568 $2,171 $396 $198 $150 $49

1983......... 2,655 2,261 394 198 138 58

1984......... 2,749 2,348 400 203 130 68

1985......... 2,825 2,382 443 206 140 97

1986......... 2,792 2,338 454 214 141 100

1987......... 2,894 2,405 489 231 150 109

1988......... 3,117 2,591 526 244 156 127

1989......... 3,132 2,564 567 253 168 146

1990......... 3,199 2,616 584 262 170 152

1991......... 3,354 2,720 634 283 180 172

1992......... 3,430 2,749 681 319 182 180

1993......... 3,672 2,917 755 360 198 197

1994......... 4,127 3,297 830 403 222 205

1995......... 4,038 3,164 875 442 237 195

1/ Includes both university salaries and formula funding of research.

2/ Includes STA and MITI funds.

SOURCE: Government of Japan, Report on the Survey of Research and Development, Statistics Bureau, Management and Coordination 

 Agency, Annual Series.

[Millions of constant 1987 dollars]

Formula funding Competitive funding

Table 6. Research in natural science and engineering, conducted at national universities, by source of funding 
20

Programs as listed in STA budget 1990 1991 1992 1993 1994 1995 1996

Total.......................... $74 $88 $91 $95 $97 $147 $177

ERATO................................ 23 25 28 33 32 38 34

Encouraging of basic research.......................................... 6666699

Frontier Research Program (RIKEN).................................... 10 16 12 12 14 28 22

Human Frontier Science Program........................................ 15 16 17 16 16 16 16

Basic Research Core System................................. 5555553

Multicore Superconductive Project....................................... 12 11 11 9 8 9 10

Special Researchers' Program (RIKEN)............................... 2333347

National Institute Post-doctoral Fellowship (JDRC).............. 1 2 4 5 5 7 10

Precursor Research for Embryonic S&T (PREST)............... NA 2 4 6 7 8 1/

JDRC Strategic Basic Research Promotion............................. NA NA NA NA NA 22 65

1/ Included in Strategic Basic Research.

KEY: NA = not available

SOURCE: Science and Technology Agency, Research and Development Promotion Division, unpublished tabulation.

Table 7. STA programs promoting basic research 

[Millions of constant 1987 dollars]

ERATO EVALUATION

A U.S. panel of experts commissioned by JTEC to evaluate basic research under the ERATO

program concluded that the research performed under ERATO is of high quality, with several

projects leading to the development of world class research. ERATO introduced over a dozen

new research directions in Japanese research. For example, under one ERATO project, a Japanese

research group first realized that scanning tunneling microscopy (STM) could be used to pick up

atoms one by one, to control matter on an atomic scale. A spinoff of this project is the Joint

Research Center for Atom Technology (JRCAT), a 25-trillion yen, 10-year effort funded by MITI.

The Director of JRCAT noted that, “ERATO was the precedent for this research” (Maruyama,

1996).

Besides carving out new research directions, ERATO also introduced new funding mechanisms of fixed-term projects and research structures in the Japanese S&T system that set a precedent for several other “ERATO type” programs that followed. ERATO funding mechanisms

allowed STA to fund university professors for a 5-year commitment to a project; some professors

took a leave of absence to head an ERATO project; others maintained their teaching while conducting the off-campus research. The new research structure allowed university and industry

researchers, as well as scientists from national laboratories, to collaborate. Many ERATO projects

were carried out within the Tsukuba Research Consortium near Tokyo. The 14-year experience

with ERATO has increased mobility of researchers while providing 5-year fixed-term projects for

young scientists.
21

RIKEN’S FRONTIER RESEARCH

As one of the most highly regarded research organizations in Japan, RIKEN conducts multidisciplinary research, often in cooperation with international institutions and visiting foreign

scientists. RIKEN, founded in conjunction with the Japan Atomic Energy Research Institute in

1917, was modeled on the German research institutes (now Max Planck Institutes). In physics,

RIKEN is constructing a large-scale synchrotron radiation facility named SPring-8 (Super Photon

Ring) in the Harima Science City in Hyogo Prefecture, about 35 miles west of Osaka. Upon

completion in 1998, it will be the world’s largest ultrahigh-brilliance X-ray synchrotron radiation

facility, and available to researchers from Japan and abroad. In addition, through RIKEN, Japan

will contribute to the $20-million collaboration in spin physics research at Brookhaven National

Laboratory’s Relativistic Heavy Ion Collider (RHIC) in the United States. When commissioned in

1999, RHIC will be the world’s highest energy-collider of heavy ions, and also the highest energy

collider of spin-polarized proton beams for physics research.

In 1986, RIKEN initiated the Frontier Research Program to support long-term basic science

in such areas as brain research, new materials, and photodynamics. In 1994, there were 500 permanent researchers and nearly 2,000 visiting scientists. Among the priorities in the Japan science

budget for 1997 is 10 billion yen ($43 million in constant dollars) for brain research, including

brain mechanisms of mind and behavior, information processing, and neuronal functioning.

RIKEN’s facilities and expanded research programs have implications for U.S. collaborators. The

Frontier Research Program recruits personnel from overseas as well as from Japan, and a number

of non-Japanese team leaders hold supervisory positions (STA, 1995).

MINISTRY OF INTERNATIONAL TRADE AND

INDUSTRY

MITI played a key role in technology policy

during the reconstruction of the Japanese economy

after World War II. Technology policy began with a

focus on meeting the requirements for industrial

development in the 1950s and later shifted primarily to

promoting international trade in the 1970s. MITI

currently supports its own programs of industrial

research and development through the Agency of

Industrial Science and Technology (AIST). But in

addition, MITI is supporting basic research and a more

open exploration of possible innovations than had

previously occurred. In 1995, the New Energy and

Industrial Technology Development Organization

(NEDO), which is affiliated to MITI, introduced a new

grant scheme for large grants to researchers at university and government laboratories.

As part of Japan’s effort to support future innovation through basic science, MITI created the National

Institute for Advanced Interdisciplinary Research

(NAIR) through the reorganization of existing laboratories, as well as the National Institute of Bioscience and

Human Technology. NAIR is to contribute to the

generic technology base for future industrial S&T.

AIST has restructured R&D into the Industrial S&T

Frontiers Program, which aims at technological breakthroughs by linking industry, academia, and government. Some of the research themes under this program

are superconductivity, biotechnology, new materials,

electronics, machinery, and human sensory perception.

Under MITI’s Frontiers Program, projects such as the

Joint Research Center for Atom Technology (JRCAT)

are experimenting with mechanisms for mixing scientists from universities, national institutes, and industry.

(See “Atom Technology.”)
22

ATOM TECHNOLOGY

Under MITI’s Industrial S&T Frontiers Program, the Joint Research Center for Atom Technology (JRCAT) has gathered approximately 100 scientists from a consortium of industries,

national laboratories, and universities to conduct basic interdisciplinary research in atom technology. This technology is based on the invention of scanning tunneling microscopy (STM) by

Rohrer and Binnig of IBM Zurich Research Laboratory. By this technique, it is possible to observe and transfer individual atoms. This frontier S&T area in material science spans work in new

materials, electronics, biotechnology, and chemistry. The goal is to develop innovative structures

and materials through manipulation and control of individual atoms and molecules. It is expected

to have engineering applications related to catalytic reactions, defects and impurities in semiconductors, and electrode/colid interfaces (Maruyama, 1996).

A consortium of 30 Japanese firms, including Fujitsu, Hitachi, NEC, Sharp, Sony, and

Toshiba, are contributing researchers (and a small annual fee) for participation in this program.

JRCAT, located in MITI’s National Institute for Advanced Interdisciplinary Research (NAIR)

within Tsukuba, also receives 26 researchers from national laboratories in close proximity, mainly

the Electrotechnical Laboratory and the National Institute of Materials and Chemical Research.

The JRCAT budget is 25 trillion yen for 10 years ($1.1 billion in constant dollars, or approximately $100 million per year), mainly funded by MITI. Funding received directly from MITI

(10 percent) has many restrictions. The majority of MITI funding, through NEDO, gives the

project the flexibility to hire university professors to lead key groups in this research, as well as

postdoctorate researchers and technicians. The funding also provides for travel to one international meeting per year for each of the 100 researchers, for small workshops on specific topics,

and for organizing and hosting a large international conference on atom technology.

Postdoctorates include young researchers from Japanese industry and universities, as well as

young foreign scientists.

For example, one experimental group of JRCAT is exploring new electronic materials and

related physics for development of atom technology. The exploratory materials are 3rd transition

metal oxides and organic molecular systems with specialized functions. This work will contribute

to critical-state phase control on solid surface and solid materials. Results, reported in Nature in

1995, include a new oxide of manganese with interesting properties. By applying magnetic field

resistance, the electrical conductivity of the material increases as much as 10 orders of magnitude. In the United States, the American Physical Society (APS) meeting in 1995 held a new

session on this effect. A conference on this topic, colossal magneto resistance (CMR), was held in

Tsukuba in 1996.

MITI is also attempting to revitalize the research

conducted at its national laboratories. For example, in

1993 MITI consolidated several of its life science

laboratories into the National Institute of Bioscience

and Human-Technology, and then hired a leading

university researcher as its Director-General. Through

fundamental reforms in these national laboratories,

MITI has the goal of encouraging biotechnology

research that would match international standards.
23

CHAPTER 3. INDUSTRIAL R&D

TORAY INDUSTRIES’ ADAPTIVE RESEARCH

Toray Industries exemplify some of the corporate R&D strategies for competitiveness that

have contributed to Japan’s trade surplus in high technology products. Toray, a textile company

established in 1923, purchased licensing agreements from Dupont (1953) for production of nylon,

and from the United Kingdom (1971) for carbon fiber production.

Through 20 years of R&D in its advanced composite materials laboratories, Toray has

produced carbon fiber products with the highest tensile strength in the world. Japan is now the

biggest carbon fiber producer in the world, exporting half its production to the United States for

use in the aircraft industry and for high quality sporting goods. When the United Kingdom sold

Japan the licensing agreement for carbon fiber production, it did not envision all the large market

applications of carbon fibers (Hara, 1996).

Although government R&D budgets have recently

increased, industrial laboratories still conduct the vast

majority of Japan’s research, funding nearly 75 percent

of the total resources for R&D and employing nearly

70 percent of the research scientists and engineers

(table A-4 and table 3). Until the economic recession of

1992, the annual R&D budget for the Japanese firm

Hitachi alone equaled the total amount administered by

the Ministry of Education (Monbusho) to university

research (Barker, 1996). Large Japanese companies

have built central laboratories for long-term strategic

research. While academic science was in an impoverished state throughout the 1980s, corporate science

flourished. Thus, corporate science dominates many

fields in Japan.

The Japanese model of imported technology and

adaptive R&D to rebuild its industry and technology

following the devastation of World War II was very

successful. Technological development was led by

close cooperation between MITI and various industries. What is sometimes mistakenly perceived as

“copying” from the West enabled Japan’s significant

industrial investment in R&D to adapt and extend

technologies. The section below, Overall Industrial

R&D Trends, provides some indicators of Japan’s

heavier industrial investment in R&D compared with

that of the United States.

An important aspect of Japanese industrial R&D is

to go beyond the limits of the technology—to make

better and better products. For example, Japanese

companies are world leaders in engineering very fine

fibers, and also in bringing the purity of iron to extremely high levels. This type of research is especially

appreciated in Japan. The pursuit of the extremes of a

technology takes a consistency in R&D support, which

Japanese industry has been willing to continue, sometimes for over 20 years, to accomplish a breakthrough

(Hara, 1996). (See “Toray Industries’ Adaptive Research” as an example of Japan’s strong commitment

to such research.)

Besides demonstrating a great consistency in

research, Japanese industry has also provided life-long

training to its scientists and engineers. Leading industries recruit very good students from high ranking

universities and department chairs. Once hired, young

researchers are given in-house education, attend international conferences, and are continuously in contact

with academic and professional societies. Top young

research scientists and engineers are encouraged to

earn their doctorate through industry, called ronbun, or

thesis doctorates. The majority of senior researchers in

industry have ronbon doctorates; the minority of senior

industrial researchers earned course-work doctorates in

universities.
24

Industrial career development programs also

include sending researchers to universities throughout

the world—though mainly to the United States—for a

period of 1–2 years as visiting researchers or doctoral

students. In general, Japanese industrial researchers are

sent abroad after obtaining their master’s degrees,

usually for 2–3 years, to top research universities that

specialize in fields of particular interest to Japanese

industry. For example, University of California at

Irvine is often selected by Toshiba researchers for

advanced training in biotechnology, machinery, and

electronics, because of its close proximity to a large

Toshiba factory that produces personal computers

(Takayanagi, 1996).

Corporate laboratories also provide donations to

leading Japanese national universities, are closely

related to professors knowledgeable in specific fields

of R&D, and hire their students. In some fields, such as

electronics, researchers go to Japanese universities for

advanced training, or to government research laboratories in Tsukuba Science City (Hara, 1996). In the past,

donations of equipment and scholarship funds to

universities and non-formal exchange of information

have provided a loose coupling between industry and

Japanese universities, but no strong involvement of

university faculty in specific research projects. In

contrast, professors in the United States are able to be

directly employed by companies. Programs for industry—university joint projects are being established in

Japan,12 but regulations related to external payments

to professors (who are civil servants) may require

2–5 years to resolve. (Takayanagi, 1996).

OVERALL INDUSTRIAL R&D TRENDS

In both the United States and Japan, industrially

funded R&D increased rapidly from 1975 to the peak

year in 1991, followed by stagnant, or slightly declining, industrial R&D investments each year since then.

Japanese industry investment in R&D rose from $11.4

billion in 1975 to $44 billion in 1991, representing an

8.9-percent average annual growth rate (table A-4). In

the peak year of industrial support of R&D, 1991,

private industry accounted for 78 percent of overall

R&D in Japan. Industrially supported research in Japan

declined an average of 3.1 percent annually from

1991–94. In the United States, industry investment in

R&D rose from $32.2 billion in 1975 to $79.8 billion

in 1992, representing an average-annual growth rate of

5.5 percent. In the United States, a slowdown in the

economy resulted in a slight decline of industrial

support of R&D in 1993–94. The average rate of

decline was 1 percent over this period. More recent

(preliminary) data for U.S. industrial R&D funding,

however, show an expected 3.5-percent increase for

1995–96 (figure 13). The continued decline in Japanese industrial R&D stems from a prolonged economic

recession.

Declines in overall R&D were somewhat softened

by increases in R&D in the service industries. U.S.

industrial research in the manufacturing sector had

strong growth in the early 1980s, level funding in the

mid-1980s, and declining budgets every year since

1989. At the same time that manufacturing industries

decreased their investments in R&D, service sector

industries increased their R&D. In addition, part of

R&D previously classified as manufacturing is now

classified in service industries. By 1993, the service

sector in the United States accounted for approximately one-quarter of industrial R&D (figure 14 and

table A-10). In contrast, Japanese industrial R&D

performance is highly concentrated in the manufacturing sector.13

As a percentage of Gross Domestic Product

(GDP), Japanese industrial R&D doubled from

1975–90, and has declined slightly in the 1990s

(table A-11). In 1994, the ratio of overall Japanese

12 Subsequent to the Japanese student riots in the 1960s to

protest industry interaction with universities, mainstream professors

had little collaboration with industry. Since 1985, however,

professors have again begun to collaborate with industry. Many

projects are occurring, with strong industry—university

collaboration. 13 The Japanese service sector may not yet be well surveyed.

See appendix tables A-4 and A-5.

Figure 13. National industrial R&D expenditures

0

20,000

40,000

60,000

80,000

100,000

120,000

1975 1980 1985 1990 1995

Japan

U.S. company-funded

U.S. total

Millions of constant dollars
25

industrial R&D to GDP—1.9 percent—was comparable to the U.S. proportion of 1.8 percent. However,

Japanese industrial R&D is almost entirely (98 percent) financed by companies themselves. This Japanese company-funded R&D as a percentage of GDP

has surpassed the U.S. ratio of company-funded R&D

to GDP every year since 1975. In 1994, companyfunded R&D represented 1.9 percent of GDP in Japan

and 1.5 percent in the United States (figure 15).

R&D CONCENTRATION IN

MANUFACTURING INDUSTRIES

While Japanese manufacturing industries have maintained huge trade surpluses with neighboring countries

in the region, the Asian developing economies are

beginning to erode Japan’s dominant economic position

in many markets. In a 1994 survey, Japanese companies rated competition from Asia as one of their major

concerns. Corporate R&D managers stressed that the

“creation of distinctive high-value-added products

through research” is one of the most important Japanese business strategies. Japan’s future competitiveness in the region is viewed as being dependent on

developing evermore advanced industries. Thus, there

has been an emphasis on enhancing industry’s science

base, as well as a shift in the concentration of R&D

into newer industries. The concentration on R&D in

drugs and medicines, computers, and electrical machinery has increased, while that in automotive industries,

chemicals, and the basic metals industry of iron and

steel has decreased (figure 16).

In the 1990s, Japanese manufacturing industries’

leading R&D areas (as a proportion of total R&D)

continued to be in communications technology (including consumer electronics and all types of audio equipment), motor vehicles, and electrical machinery. But

from 1990–93, R&D expenditure levels in these industries decreased, as did their share of overall industrial

R&D. In contrast, Japan began to increase R&D

funding levels and R&D personnel in drugs and medicine (figure 16).

Japanese industry was among the first to restructure its manufacturing through offshoring to European,

Asian, and North American countries. As with most of

the offshore production and outsourcing now occurring

in other industrialized countries, the major R&D

activity has remained in the firms’ central laboratories

0

20,000

40,000

60,000

80,000

100,000

Total

Manufacturing

Services

1981 1985 1990

United States

Millions of constant dollars

0

20,000

40,000

60,000

80,000

100,000

1981 1986 1991 1981 1985 1990

Japan

Millions of constant dollars

Figure 14. Industrial R&D performance, by sector

See appendix table A-10.

See appendix table A-11.

Figure 15. Industrial R&D as a percent of GDP

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

1975 1980 1985 1990 1995

Percent

Japan

U.S. company-funded

U.S. total
26

in Japan. These central laboratories will continue to

work on R&D innovations, while some small amount

of marketing research will be conducted abroad. (See

“Nissan Offshore Manufacturing” as one example of

this trend, with R&D maintained in Japan’s industrial

laboratories.)

To a greater extent than in the United States,

industrial R&D expenditures in Japan are concentrated

on electrical and non-electrical machinery, radio,

television, and communications equipment (table A-13

and figure 17).

By 1993, drugs and medicine had the highest R&D

expenditures as a percent of net sales at 9.9 percent,

compared with motor vehicles at 2.7 percent, or petroleum and coal at 0.9 percent (table A-13 and figure 18).

R&D by non-manufacturing industries in Japan still

comprises less than 5 percent of industrial R&D.

NISSAN OFFSHORE MANUFACTURING

To be free from money exchange rate problems caused by the sharp appreciation of the yen,

Nissan has some production and R&D activity offshore. The production of automobiles abroad is

mainly in the United States (Tennessee) and England, but also in Spain, Mexico, Thailand, Taiwan, and South Africa. Over 1,600,000 automobiles are produced in Japan; and 600,000 are

produced abroad. The Tennessee facility produces 450,000 cars a year. The number of cars

produced in England is restricted, but those produced are exported throughout Europe, and have

3 percent of the market share.

The main R&D facilities will remain in Japan, and Nissan central laboratories will continue

the R&D necessary for cost reductions, such as low fuel consumption and low exhaust emissions.

However, partial R&D work will be done abroad, in the United States and England, to design

automobiles with local parts and local suppliers. To advance technology, some parts may be

developed abroad. (Marumo, 1996).

While minimal research for particular companies will be conducted in the United States,

opportunities exist for enhanced U.S.–Japanese collaborative R&D in the automotive industry.

Discussions for collaboration are underway in the important area of intelligent highways. In the

future, automobiles will be an even more intelligence-intensive product. Japan is collaborating

with Europe and the United States on Intelligent Transport Systems (ITS) for automated highways of the future. One technical committee of the International Standards Organization (ISO) is

working for standardization of these future intelligent systems. Five Ministries in Japan work on

ITS, including among others, MITI, Construction, and Transportation. Japan’s particular focus in

automated highways is research on navigation systems for ITS (Maruma, 1996).

Figure 16. Japanese manufacturing R&D: 1981 and 1993

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Auto

Elec. mach. 1/

Computers

Iron/steel

Drugs

Chemicals 2/

1981 1993

Percent

1/ Excludes communication equipment.

2/ Excludes drugs and medicines.

See appendix table A-110 and A-12.
27

U.S. leading R&D performers continue to be the

aircraft and communications equipment industries, but

these industries’ share of overall industrial R&D fell

during the last 10 years (NSB, 1996). In contrast,

chemical industries, pharmaceutical companies, and

companies primarily engaged in the manufacture of

scientific instruments increased their share of industrial

R&D. Far stronger growth, however, occurred in nonmanufacturing industries in the United States, which

now account for more than 25 percent of industrial

R&D. R&D performed by computer software companies and companies providing communication services

are examples of these service sector industries.

INDUSTRIAL SCIENTISTS AND

ENGINEERS ENGAGED IN R&D

Corresponding to the strong growth in industrial

funding of R&D activity in Japan and in the United

States in the 1980s is the almost equally strong growth

in the number of industrial scientists and engineers

engaged in R&D. In each country, the number of

industrial scientists and engineers increased at an

average annual rate of growth of more than 5 percent.

However, Japanese industry continued to increase their

employment of scientists and engineers for research

and development despite their economic recession in

the 1990s. In the United States, industry decreased its

employment of scientists and engineers in R&D by

about 25,000 from 1992–94 (table A-14).

Japan has more R&D scientists and engineers per

10,000 employees in manufacturing companies than

the United States. In 1993, Japan employed 622 RSEs

per 10,000 employees in manufacturing companies,

compared with 520 RSEs per 10,000 in the United

States in that same year. This higher employment of

RSEs in manufacturing companies in Japan has existed

since 1985 (table A-15).

INDUSTRY–UNIVERSITY RELATIONS

Compared with the university sector, Japanese

industry dominates as the preferred place for research

and advanced training. Industry particularly strengthened its research capacity in the 1980s by attracting

and training top graduates from Japanese universities,

as well as by expanding industrial research facilities.

Japanese industry interacts with both domestic and

foreign universities, especially those in the United

States.

For example, Japanese industry sends its research

personnel to top U.S. universities for 1 to 2 years for

advanced study in particular fields. Previously, few

Japanese students remained long enough at U.S.

universities to complete a doctoral degree. Instead,

1/ Excludes communication equipment.

See appendix table A-13.

1/ Excludes communication equipment.

2/ Excludes drugs and medicines.

See appendix table A-12.

0

1

2

3

4

5

6

7

8

9

10

Ind. chem.

Drugs

Elec. mach. 1/

Auto

Professional goods

1985 1990 1993

Percent

Figure 18. Japanese R&D expenditures as a percent of net

sales: 1985, 1990, and 1993

Figure 17. Proportion of R&D expenditures by selected

industries: 1993

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Auto

Elec. mach. 1/

Computers

Iron/steel

Drugs

Chemicals 2/

1981 1993

Percent
28

industrial researchers more likely returned to their

company and earned a doctorate through corporate

research. While Japanese industry continues to offer its

employees the opportunity to earn their thesis doctorate through research in their corporate laboratories,

U.S. universities also show recent small increases in

the number of doctoral degrees in natural sciences and

engineering earned by foreign doctoral candidates from

Japan.14

Japanese industry is increasing its interaction with

Japanese universities through donations and research

contracts, and also is involved in the expansion of

university-based doctoral programs. In the 1980s, some

university professors worked jointly with industrial

researchers on an area of strategic research under the

ERATO programs. In the 1990s, Monbusho introduced

Centers for Cooperative Research in Advanced S&T at

some national universities in an effort to couple basic

research in sciences with development activities in

industry. Under this program companies send their

researchers to complete a short Ph.D. degree useful to

their R&D laboratory. For example, the interdisciplinary Research Center for Advanced Science and

Technology (RCAST) at the University of Tokyo,

which is a new Ph.D. program, receives many students

from industry (researchers who have completed their

master’s degrees prior to employment). At RCAST,

these doctoral students are required to switch to a field

that is different from their master’s program. Candidates enter fields in which their companies would like

to expand research work. The cross-fertilization of

different fields within a university-based doctoral

program better prepares doctoral students to contribute

to their company’s new directions than does strictly

within-industry training. Under the new 1996 basic

research programs, industry now can conduct joint

projects with university professors.

14 Published tabulations of the U.S. Doctorate Record File do

not show how many of the Japanese doctoral recipients are

supported by Japanese industry.
29

In 1994, student enrollment at the associate level

numbered 550,000 compared with 2.2 million at the

bachelor’s level. Engineering students at the associate

level in Japan attend two types of institutions: 5-year

technical colleges or 3-year junior colleges. In 1994,

these institutions each produced about 10,000 engineering degrees. Entrance level and characteristics of

these institutions differ considerably. The far more

numerous junior colleges (548) are predominantly

private institutions with an enrollment that is 90 percent female; only 4 percent of their earned degrees are

in engineering. The smaller number of technical colleges (62) are public institutions with an enrollment

that is 80 percent male. Students enroll in 5-year

technical colleges following completion of compulsory

education, 9th grade.16 The programs of technical

colleges are aimed at training technicians and practical

engineers.17 In contrast, Japanese students enter junior

colleges after completion of upper-secondary education, 12th grade.

Engineering departments in junior colleges, traditionally all male departments, sharply increased their

rate of female enrollment between 1975 and 1990.

Young women now comprise approximately 30 percent

of the engineering student body at the junior college

level, mainly in electrical and communications engineering and applied chemistry. While the number and

percentage of females entering associate level engineering programs in junior colleges is increasing, it is

from a small base (table 8). In addition, the Monbusho

annual survey of education shows that the number of

males entering such programs declined about 25 percent from 1975–93.

Recent declines may be influenced by demographic

changes, as well as the decline in the 18-year-old

population in Japan. With a declining college-age population, the number of 18-year-olds entering the university is dropping, down from a peak of 2.05 million in

1992 to an estimated 1.5 million in 2000. This demographic trend will continue until at least 2010. In conCHAPTER 4. HIGHER EDUCATION

15 According to the Carnegie classification, U.S. research

universities offer a full range of baccalaureate programs, are

committed to graduate education through the doctorate degree, and

give high priority to research. Research I universities receive at

least $40 million annually in federal support and award at least

50 doctoral degrees. Research II universities meet similar conditions, but receive between $15.5 million and $40 million annually

in federal support.

16 Education in Japan becomes quite stratified at the upper

secondary level, separating those who will go to junior colleges and

universities from those who will enter vocational schools and

technical colleges. 17 Students in technical colleges may transfer to the upper

division at the university where they would have two more years of

study in order to graduate with a bachelor’s degree.

INSTITUTIONS

In contrast to the relatively recent development of

higher education institutions in other Asian countries,

Japan greatly expanded its institutions of higher education in the 1950s. By 1955, public institutions, including the national universities (totally funded by the

national government), and local institutions (funded by

the prefectures and municipal governments), numbered

over 100. The total number of public institutions has

not increased significantly since then. An additional 25

national and 15 local universities have opened in the

last 40 years. In contrast, the number of private institutions has increased rapidly over the last few decades,

growing to more than 400 in 1995, and representing

approximately 75 percent of all higher education

institutions (Monbusho, 1995a).

The largest numbers of graduate enrollments in

Japan are in private schools, but national universities

still dominate in the production of doctoral natural

science and engineering (NS&E) degrees. About 30 of

these national universities are considered research

universities. The national universities account for

about one-half of the social science doctoral degrees

and 85 percent of the doctoral degrees in engineering,

natural sciences, and agricultural sciences (Monbusho,

1995c). In the United States, research universities,

which number about 88, also dominate in advanced

degrees in science and engineering.15 In 1993, students

in the United States earned 75–85 percent of their

master’s and doctoral degrees in science and engineering at research universities (NSB, 1996).

TRENDS IN UNDERGRADUATE

EDUCATION

ASSOCIATE DEGREES

In Japan, associate level programs are small

compared with 4-year college and university programs.
30

trast, in the United States, the college-age population

declined earlier, starting in 1985, and it will continue to

decline until the year 2000 (figure 19).

In the United States, most states have junior college courses, which will transfer from one institution to

another within the state system. Taking and transferring courses are the modus operandi for the majority of

students in the United States at two-year level institutions; only about 9 percent of those enrolled complete

a 2–3-year program of studies and obtain a certificate

of associate degree. In 1993, only 2,500 students

completed associate degrees in engineering in U.S.

higher education; another 40,000 earned engineering

technology degrees. Transferring from technical colleges and junior colleges to universities in Japan,

however, is not as prevalent as it is in the United

States. In Japan, students in technical colleges “may”

transfer to the upper-division at the university where

they would have 2 more years of study in order to

graduate with a bachelor’s degree, but transferring is

not the norm.

BACHELOR’S DEGREES

Compared with the United States, a significantly

higher proportion of Japan’s undergraduate degrees are

earned in engineering. Japanese undergraduate students

earn 20 percent of their degrees in engineering fields,18

far greater than the 5 percent of engineering undergraduate degrees earned in the United States. This

concentration on engineering is partly explained by the

greater number of engineering jobs in the labor market

compared with the United States. (See Chapter 3 on

international comparisons of scientists and engineers in

the labor force.)

Differences in taxonomy, however, also partly

explain the higher proportion of engineering majors. In

Japan, engineering departments subsume computer

science and also extend, to a smaller extent, to some

applied fields of the natural sciences. For example, in

Japan, solid-state physics is included in engineering; in

U.S. universities, professors of solid-state physics are

on faculties of the natural sciences. Given these differences in taxonomy, an approximate comparison of

18 Japan’s percentage is similar to the proportion of engineering degrees in Singapore, Korea, and Taiwan. Only China has a

considerably higher concentration on engineering: 40 percent of

Chinese undergraduates study engineering (NSF, 1993).

Year Total

[Number] [Number] [Percent]

1975....................................... 23,335 885 3.8%

1985....................................... 19,787 3,028 15.3

1990....................................... 24,843 7,272 29.3

1991....................................... 24,927 7,599 30.5

1992....................................... 24,794 7,718 31.1

1993....................................... 23,993 7,285 30.4

SOURCE: Government of Japan, Monbusho Survey of Education,

 Annual Series.

Table 8. Female enrollments in engineering 

at the junior college level

 Female

Figure 20. B.S. degrees: 197594

1/ Natural sciences include physical, biological, earth, atmospheric, and

 oceanographic sciences.

See appendix table A-16.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1975 1985

Japan natural sciences 1/

Japan engineering and 

comp. sci.

U.S. natural sciences 1/

U.S. engineering and comp. sci.

Figure 19. Population of 20- to 24-year-olds in Japan and

the United States: 19802010

0

5,000

10,000

15,000

20,000

25,000

1980 1990 2000 2010

Japan

United States

SOURCE: NSF/SRS, Human Resources for Science and Technology: The

 Asian Region, NSF 93-303, Washington, DC: NSF.
31

degrees is shown in figure 20 by adding computer

science and engineering degrees in the U.S. data.19

U.S. combined degrees in these fields grew rapidly

from 1975–86, declined until 1991, and subsequently

leveled off. The decline after 1986 is largely due to

demographics and the apparent waning interest in

computer science degrees at the undergraduate level. In

the last decade, the number of Japan’s degrees in

computer science and engineering grew at an average

annual rate of about 2 percent. By 1994, with roughly

one-half the population, Japan produced more engineering and computer science degrees at the undergraduate level than the United States.

In contrast, relatively few degrees are earned in

natural science departments in Japan, compared with

the United States (even given that some degrees in

applied science fields are counted within engineering).

Only 3.5 percent of undergraduate degrees in Japan are

earned in natural sciences (physical, environmental,

and biological sciences), and even fewer, 2.9 percent,

are obtained in agricultural sciences Monbusho,

1995b). In the United States, 9.3 percent of all undergraduate degrees are earned in the natural sciences, and

1.1 percent are earned in agricultural sciences (table A16). This low percentage of earned degrees in the

natural sciences reflects the relatively minimal role of

Japanese universities in fundamental scientific discovery.

Because of significant taxonomy differences, only

aggregated comparisons are made on the proportion of

22-year-olds with NS&E degrees, with differences by

gender (figure 21). Ten percent of Japanese males of

this age earn university degrees in a field of natural

sciences or engineering; about one-tenth that amount,

or 1 percent, of the Japanese female population, earn

such degrees. In the United States, 6.8 percent of the

male 22-year-old population earn a university degree in

a field of natural sciences or engineering. About onehalf that amount, or 3.6 percent, of the female population earn such degrees.

Japan and the United States have a similar concentration in particular engineering specialties at the

undergraduate level, with some minor differences. The

largest engineering departments in both countries are

in electrical and computer engineering, as well as in

mechanical, civil, and chemical engineering. Japan has

a slightly higher concentration of students in chemical

and civil engineering fields, and a slightly lower

concentration of students in aeronautical and mechanical engineering fields than the United States (table 9).

19 Because the numbers associated with solid-state physics in

Japan are so small, these degrees were not reclassified here.

Figure 21. First university degrees as a proportion of the

22-year-old population: 1994

KEY: NS&E = Natural sciences and engineering.

SOURCE: National Science Foundation/SRS; table A-17.

0

10

20

30

40

Total

NS&E

Social sci.

Total

NS&E

Social sci.

Total

NS&E

Social sci.

Japan

United States

Total Male Female

Field of study

[Number] [Percent] [Number] [Percent]

Total........................... 91,184 100.0% 63,012 100.0%

Aeronautical/astronautical.... 776 0.9 2,330 3.7

Chemical................ 10,335 11.3 5,636 8.9

Civil................. 18,015 19.8 10,603 16.8

Electrical and computer........ 27,346 30.0 18,241 28.9

Industrial................. 4,757 5.2 3,453 5.6

Mechanical.................... 18,664 20.5 15,297 24.3

Materials/metallurgy............. 1,125 1.2 1,106 1.8

Other............ 10,166 11.1 6,346 10.1

1/ Computer science is included within engineering departments in Japan. 

 See appendix table A-16.

SOURCES: National Science Foundation, SRS, Science and 

 Engineering Degrees 196694 , NSF 96-321 (Arlington, 

 VA, 1996); and Monbusho, Basic Education Survey, 1995.

Table 9. First university engineering degrees 

Japan 1/ United States

by field of study: 1994
32

Japanese national educational reforms at the

undergraduate level are directed toward more teaching

of core fundamentals and an integration with, and more

equal status of, the faculties of general (first 2 years)

and specialized (final 2 years) education. Within

engineering, Japanese universities are combining

several small engineering departments for a broader,

multidisciplinary perspective. Japanese universities

also are introducing undergraduate research programs

similar to the undergraduate research opportunity

programs in the United States.

At the graduate level, reforms are directed toward

increasing the scale of programs, improving the substance by introducing more course work (similar to the

U.S. system), diversifying funding sources (including

joint research with industry), and enhancing mobility

of scientists with fixed-term appointments (Arimoto,

1996).

TRENDS IN GRADUATE EDUCATION

GRADUATE ENROLLMENT

Graduate S&E programs, traditionally small in

Japan, have begun to expand. To increase graduate

enrollment in Japan, in the late 1980s, Monbusho

began establishing new universities for graduate

students only. The Japan Advanced Institute of Science

and Technology, East (Ishikawa Prefecture), provides

research and training in information science and

materials science. The Advanced Institute of Science

and Technology, Nara Prefecture, begun in 1991,

focuses on research and training in information science

as well as bioscience.

Since 1988, industry has been allowed to donate

named grants for industry—university joint research. A

few universities have taken the opportunity to pursue

financial support and cooperative research with industry for innovative graduate training. For example, the

Research Center for Advanced Science and Technology (RCAST), within the University of Tokyo, created

four research divisions in 1988, admitting only doctoral candidates.

Based on these new graduate institutes and centers

at universities, graduate student enrollment grew at an

annual rate of 15 percent from 1990–95 (Monbusho,

1995b). Previously, only those going into academic

careers remained in the university for doctoral training.

Others had no financial incentive because starting

salaries in industry were the same as for those hired at

the bachelor’s level (Yano, 1986). Presently, more

students in Japan are going forward to earn advanced

degrees in natural sciences and engineering. By 1994,

the ratio of undergraduate-to-graduate enrollment in

engineering was 8:1. In 1975, the ratio of undergraduate-to-graduate enrollment in this field had been 20:1

(table A-18).

In the United States, with significantly larger S&E

graduate enrollment in higher education, the ratio of

graduate-to-undergraduate enrollment in engineering

was around 3:1 in 1994. Even with the recent expansion, in 1994 Japanese graduate enrollment in all S&E

fields was 91,000 compared with 433,000 in U.S.

universities. Particularly small are Japanese graduate

programs in the natural sciences—about one-tenth the

size of those of the United States (12,000 versus

120,000 graduate students) (table A-18). In contrast, in

engineering Japan has comparable enrollment in

graduate programs to the United States (relative to the

size of its population). In the United States, after a

decade-long steady increase, graduate enrollment in

S&E fields at universities declined in 1994, mainly as a

result of the decline in the number of foreign graduate

students in engineering both in 1993 and again in 1994

(National Science Board, 1996).

One educational policy goal in Japan is to double

the number of graduate students by the year 2000, that

is, from approximately 138,000 graduate students in

1994 to 277,000 graduate students in the year 2000.

Such doubling would require sustaining a 12-percent

annual growth rate in the number of students entering

advanced degree programs. From 1990–94, the annual

rate of increase was around 12 percent. Doubling the

number of graduate students appears possible if all the

attractions to advanced degree programs in universities

continued: increasing financial support to graduate

students, more exciting research at universities, and

availability of state-of-the-art facilities.

A large uncertainty for the continued expansion of

graduate programs is when the long economic recession will end, and thus, enable Japanese industry to

begin to hire those with advanced S&E degrees. Even

without doubling the number by the year 2000, the

rising participation rate in graduate-level programs will

create a demand for more professors at this level. The

decline in the college-age population will contribute to

a shift in professors from undergraduate to graduate

programs.
33

ADVANCED DEGREES

Since 1985, Japan’s rate of growth in the number

of degrees earned in natural sciences and engineering

has been more than twice as high at the master’s level

than at the bachelor’s level. Doctoral degrees began

increasing a few years later (figure 22).

The number of graduate degrees in science and

engineering is considerably larger in the United States

than in Japan (figure 23).

From 1987–92, engineering doctoral degrees in

Japan grew at the rate of 6.4 percent a year, and natural

science doctoral degrees grew at the rate of almost

5 percent annually in the 1990s (figure 24).

Since this expansion is from a low base, however,

the ratio of doctoral recipients to the general population is still relatively low in Japan. In 1994, 0.26 percent of the 29-year-old population had earned a doctoral degree in the natural sciences or engineering,

compared with 0.50 percent of the same population in

the United States20 (table A-21).

20 Includes coursework doctorates, not ronbun hakase. The

average age for these doctorates, earned by persons employed in

industry, is 40-years-old for natural sciences and 42-years-old for

engineering.

Until recently, most doctorates in the natural sciences and engineering in Japan were earned by industrial researchers in Japanese companies. These degrees are awarded by the employees’ former university, usually after many years of research in industrial

laboratories. No matriculation is necessary, only

submission of a dissertation. Until the 1990s, these

doctorates, called thesis doctorates, or ronbun hakase,

represented the majority of engineering doctoral

degrees from national universities. In 1986, ronbon

hakase represented two-thirds of all doctoral engineering degrees and more than 40 percent of all natural

science degrees. With the expansion of universitybased doctoral programs, however, the proportion of

these degrees earned is decreasing. From 1986–94,

doctoral degrees earned within Japanese universities

increased 5 percent annually in the natural sciences21

and 13 percent annually in engineering. Thesis doctorates in science and engineering grew at a much smaller

rate during this same time period. By 1994, more

doctoral engineering degrees were earned for research

within university laboratories (53 percent) than industrial research laboratories (47 percent) (figure 25 and

table A-20).

Figure 22. Graduate S&E degrees in Japan

See appendix tables A-19 and A-20.

21 Natural sciences include physical, biological, earth,

atmospheric, and oceanographic sciences.

Master's degrees

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Natural sciences Agricultural sciences Social sciences Engineering

Number of degrees

Doctorate degrees

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994
34

Using the better equipped and funded industrial

research laboratories for doctoral research training

worked very well for Japan during the last several

decades of technology development, and likely contributed to their economic success. Japan’s technology

policy from the 1950s to the 1970s was geared toward

large funding of research by industry for adaptive

borrowing and quality engineering (Tamura and Peck,

1983). Those familiar with Japan’s educational system

believe that it has been very well-suited to industrial

catch-up, but may not be adequate for the future. Japan

now wants to develop the human resources for science

and engineering that can create radically new technologies, rather than just adapt and improve on imported

technology. In addition, because of their high economic

status in the world, international expectations are rising

that Japan will apply more of its resources to the kinds

of basic research that will have universal benefits

(Rohlen, 1995).

KEY: NS&E = Natural science and engineering.

See appendix table A-20.

KEY: NS&E = Natural science and engineering.

See appendix table A-20.

Figure 24. Doctoral degrees in NS&E fields: 197594 Figure 25. Expansion of Japan's NS&E doctoral degrees

Figure 23. Graduate S&E degrees in United States

See appendix tables A-19 and A-20.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Natural sciences Math and comp. sciences Agricultural sciences

Social sciences Engineering

Master's degrees

Number of degrees

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Doctorate degrees

1986 1990 1994

Engineering

0

200

400

600

800

1,000

1,200

1,400

1986 1990 1994

Univ.-based

Industry-based

Number of earned degrees

Natural sciences

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1975 1980 1985 1990

Japan Natural sciences

Japan Engineering

United States Natural sciences

United States Engineering

Number of degrees
35

A long-discussed shift is occurring toward stronger

doctoral programs within university laboratories, with

more funding for basic research. Public statements of

the need for this shift have been made in Japan for at

least the past 25 years. Japan’s S&T White Papers

since 1973 have emphasized the need to enhance

government funding and university basic research to

solve new problems that cannot be addressed by offthe-shelf technology (STA, 1973). Initially, these

public statements did not change the research picture.

Throughout the 1970s and 1980s, industrial research

represented an ever-increasing proportion of research.

While the amount of government funded research

increased slightly, it continued to decline as a percentage of overall research because of the huge industrial

research investment.

FINANCIAL SUPPORT TO GRADUATE

STUDENTS

Although no national comparative data are available on financial support to graduate students, recent

studies show that Japan has traditionally provided little

financial support for graduate students. The costs for

graduate students in Japan’s national universities

include a $300 entrance exam, a $3,000 entrance fee,

and a $4,500 tuition payment per year. About 26 percent of masters students and 59 percent of doctoral

students receive “scholarships” (which are actually

interest-free loans that have to be repaid after graduation). Japanese graduate programs provide no tuition

waivers for students in science and engineering

(Sienko, 1996). In contrast, 70 percent of S&E graduate students in U.S. universities are supported by

research assistantships, teaching assistantships, fellowships, and traineeships from federal and university

sources (NSB, 1996). Only 30 percent are self-supporting, mainly in the social sciences. In the United States,

financial aid includes tuition waivers in a large majority of graduate programs.

Japan is beginning to provide financial aid to

graduate students in the form of postgraduate fellowships and research assistantships. Monbusho funds

provide assistance to Japanese students, to foreign

students for study in Japan, and to Japanese students to

study abroad. A small percentage of graduate students

(6 percent) receive generous fellowships from the

Japan Society for the Promotion of Science (JSPS),

similar to the level of support students receive in U.S.

graduate schools, to encourage students to proceed up

to the doctorate level. New fellowships available in

1996 from JSPS have expanded funding to 1,350 new

postdoctorates and doctoral students and have provided

1,750 continuing awards from the previous year. By

1996, about 6,000 Japanese graduate students and

postdoctorates had some government funds. The target

is to fund about 10,000 government fellowships (JSPS,

JST, and NEDO) by the year 2000.

In contrast, in the United States, in 1993, 45,000

graduate students received their primary support from

fellowships and traineeships, and another 155,000

were supported primarily through research assistantships and teaching assistantships (NSB, 1996).

FOREIGN STUDENTS IN GRADUATE

PROGRAMS

The majority of foreign students in Japan are at the

undergraduate level. Only 17,800 out of 50,000 foreign

students are studying at the graduate level. In contrast,

in the United States, almost one-half of the 425,000

foreign students are studying at the graduate level. Of

the approximately 191,800 who come to the United

States for graduate studies, about one-half are in the

natural sciences and engineering fields. Likewise, more

than one-half of the foreign graduate students in Japan

are in S&E fields (table 10).

Among the leading countries of origin of foreign

graduate students in Japan are China and Korea,

comprising almost three-quarters of the 17,800 foreign

graduate students present in 1994. Most other leading

countries of origin also are within the Asian region.

The leading countries of origin of foreign graduate

students in the United States are China and India,

comprising one-third of the total foreign graduate

students present (table 11).

Field of study

[Number] [Percent] [Number] [Percent]

Total................................. 17,801 100.0% 191,798 100.0%

S&E fields..................... 10,127 56.9 96,475 50.3

Natural sciences........... 852 4.8 29,153 15.2

Agricultural sciences.... 1,559 8.8 5,562 2.9

Social Sciences............ 2,967 16.7 17,645 9.2

Engineering.................. 4,749 26.7 44,114 23.0

Other fields................... 7,674 43.1 95,324 49.7

SOURCES: Government of Japan, Monbusho, unpublished tabulations; 

 Institute of International Education, Open Doors, 199495

 (IIE: New York, 1995), and unpublished tabulations.

Table 10. Foreign students in S&E graduate programs: 1994

Japan United States
36

Foreign students comprise only 8 percent of the

total graduate enrollment in the natural sciences in

Japanese universities, and they account for only

10 percent of the engineering students. They are concentrated at the doctoral level, however, and are contributing to the expansion of doctoral programs and

degrees in Japanese universities. In 1992, 37% of the

engineering doctoral degrees were earned by foreign

students; 25% of the natural science doctoral degrees

were earned by foreign students in the same year. In

contrast, in U.S. universities, slightly more than

50 percent of the engineering doctoral degrees and

one-third of the natural science doctoral degrees were

earned by foreign students in 1993.

Foreign doctoral recipients have increased at the

annual rate of 13 percent from 1987–92. For this

number to double, from approximately 1,000 in 1992

to 2,000 in the year 2000, would require sustaining an

annual growth rate of 12 percent. This would be possible, but only likely if financial support to foreign

doctoral students also continued to increase.

Graduate students from the United States account

for only 1 percent of the foreign graduate students in

Japan, and relatively few of them are in S&E programs

requiring university research laboratories. A few dozen

American graduate students are studying for their

master’s degrees in engineering within Japanese

universities while only a few Americans are studying

natural sciences within Japanese universities. In contrast, Japan is one of the leading countries of origin

for foreign students and foreign researchers in U.S.

universities and also for visiting scientists at U.S.

laboratories. In 1993–94, the numbers of students and

researchers from Japan reached almost 50,000. About

Country of origin

[Number] [Percent] [Number] [Percent]

Total............................ 17,801 100.0% 191,738 100.0%

China....................... 9,152 51.4 36,370 19.0

Korea....................... 4,003 22.5 27,553 14.4

Indonesia................. 642 3.6 24,623 12.8

Bangladesh............. 461 2.6 15,785 8.2

Thailand.................. 460 2.6 7,755 4.0

Other....................... 3,083 17.3 79,652 41.5

SOURCES: Government of Japan, Monbusho, unpublished tabulations; 

 Institute of International Education, Open Doors, 199495

 (IIE: New York, 1995), and unpublished tabulations.

Table 11. Leading countries of origin of foreign students

 in graduate programs: 1994

Japan United States

Category Number

Total..................................... 49,578

Students...................................... 39,715

Undergraduate...................................... 31,960

Graduate................................. 7,755

Researchers.......................................... 9,863

Post-doctorate/U.S. univ........................... 4,055

Foreign scholars/U.S. univ........................ 5,458

Visiting scientists/NIH 1/........................... 350

1/ NIH has the largest visiting scientists program, but other U.S. 

 government agencies also receive visiting scientists from Japan.

NOTE: Researchers are based mainly on estimates for post-

 doctorates and foreign scholars in Open Doors, 199495.

SOURCE: Institute of International Education, Open Doors, 199495 

 (IIE: New York, 1996).

Table 12. Japanese foreign students and visiting 

researchers to the United States: 199394

40,000 are students, and 10,000 are conducting research (table 12).

Of the Japanese foreign students coming to the

United States, the large majority (80 percent) enter

undergraduate programs for non-S&E fields of study.

The most popular fields in which they major are

business and economics. The attraction to U.S. higher

education is partially attributable to stiff competition

for admission to the prestigious Japanese national

universities. Many Japanese students who do not pass

the qualifying examinations for these top schools have

opted for U.S. undergraduate education because the

less-competitive Japanese private schools, their other

option, are costly and crowded. Relatively few of the

Japanese students in U.S. undergraduate programs

(6 percent) study natural sciences or engineering.

A far smaller number of Japanese foreign students

enter U.S. graduate programs, and only a small fraction

of these study the fields of science and engineering.

Traditionally, relatively few Japanese entered lengthy

doctoral programs of science or engineering in U.S.

universities. However, similar to the recent increase in

S&E doctoral degrees within Japanese universities, the

number of degrees earned by Japanese students in the

U.S. universities is also increasing. In 1994, Japanese

foreign students earned 46 doctoral degrees in engineering and 136 doctoral degrees in all fields of science, similar to the number earned by foreign students

from other industrialized nations, such as Germany

(NSF, 1996b).
37

CHAPTER 5. ACADEMIC R&D

As a result of strong support provided by the government’s 1993 and 1994 budgets, Japan’s academic

performance rose to a 14-percent share of total Japanese R&D. Although this is partly due to a decline in

industrial research, it is also due to the large government budgets (with supplemental budgets in 1993,

1995, and 1996), which began the process of strengthening basic science in Japanese universities. It is

expected that the previous diminishing trend will

reverse, and that academic R&D will continue to

increase as a share of the national performance total in

the next several years.

Approximately 30 Japanese universities are strong

in scientific research, as well as education (Arima,

1992). There are 63 attached research institutes within

these universities, 18 of them for joint use. In the

1970s, Monbusho began building National InterUniversity Research Institutes that are open to all

university researchers. They provide large-scale, wellequipped research facilities that also serve for international collaboration in specific fields. The first of these

inter-university research institutes was the National

Laboratory for Higher Energy Physics, KEK. These

institutes, now numbering 15, have the same status as

national universities. The Graduate University for

Advanced Studies (GUAS), established in 1988, is also

for graduate students working in these same institutes

(Monbusho, 1995).

The problems of Japanese universities, as well as

their proposed solutions, have been widely noted and

discussed.22 Solutions revolve around ways to increase

the quality of research performed in universities:

providing competitive funding to university professors

and more financial support to graduate students, and

improving facilities and equipment in graduate departments. The Science and Technology Basic Plan especially focuses on removing the barriers to high-quality

basic research in universities and national laboratories.

The Japanese government plans to systematically

improve the research facilities and instrumentation of

national universities, and also the computer networks

among R&D institutions. With these changes, their

conduct of science will resemble more closely that of

the United States: more government funding of basic

research, more competitive research grants, more

centers of excellence in universities, and expanded

graduate programs, postdoctorate fellowships, and

research assistantships.

The Japanese government also plans to promote

and fund joint research between industry, university,

and government laboratories. Government laboratories

will hire additional S&E personnel on fixed-term

appointments and, based on expected reforms in the

National Personnel Authority, there will be more

flexibility for universities in hiring faculty and researchers. Monbusho is planning to submit a bill to

introduce a limited tenure system at the nation’s colleges and universities during an ordinary Diet session

early in 1997.

ACADEMIC R&D TRENDS

The decade-long trend, observed from 1980–91,

toward a diminishing role for academic performers in

total Japanese research and development, ended in

1992. During that period, academic performance

decreased from a 17-percent share to a 12-percent

share of total Japanese R&D performance (figure 26).

22 See, for example, the Japanese National University Association “Basic Research on University Operations,” 1992, which

surveyed all national university professors on their research

environment and made recommendations to Monbusho on how to

improve the present status. American Association for the Advancement of Science (AAAS). 1992. Science in Japan. Science 258, 23

October. Special issue on Japan.

0

5

10

15

20

25

1975 1980 1985 1990 1995

Percent

Japan

United States

Figure 26. Higher education R&D expenditures as a

share of total R&D

See appendix tables A-2 and A-5.
38

While research flourished in the 1970s, the

government’s deep cuts in university construction

budgets and general funds for basic research in the

1980s seriously affected Japanese universities’ ability

to do research. The retrenchment of government research in the 1980s forced universities to look to

industry for donations and small additional sources of

support. Until multiple funding sources became possible in 1995, the funding of these national universities

had been centralized through Monbusho. Professors

are civil servants and all faculty (both senior and

junior) are tenured for life.

Based on several science advisory reports such as

that conducted by the Japanese National University

Association (see “Japan’s University Survey”), an

important Cabinet document formulated a science

policy that recognized the importance of basic research

for Japan and proposed improvements in research

conditions. The 1992 S&T policy document included a

major renewal of facilities and equipment for universities and national research institutes, and expanded

competitive research grants. The Japanese government

made large supplemental budgets to Monbusho in 1993

and 1995 to begin to address these recommendations.

The latest available data on R&D expenditures in the

higher education sector show academic R&D reached

approximately $7 billion in 1994. In that same year,

U.S. academic research reached $21 billion (figure 27).

The distribution of higher education R&D expenditures by field differs across countries. Japanese priorities for academic research in 1993, as indicated by

dollar amounts of research funded, were medicine,

social sciences, and engineering, in that order. In

contrast, in the United States, academic research is

focused on the natural sciences. Research in fields of

natural sciences reached 35 percent of overall U.S.

university research in 1993, an amount that is almost

equal to that performed in both medicine and engineering combined (figure 28).

Academic research in public universities is primarily supported by formula funding, but mechanisms for

industry—university cooperative research were introduced in the 1980s. Funds for scientific research are

provided by Monbusho to university “chairs” based on

the number of researchers and graduate students. In

addition, in 1983 Monbusho allowed university professors to participate in industry—university projects

(ERATO) funded by the Science and Technology

Agency (STA). Under ERATO, a new facility is established with 5-year funding for joint projects by industry and university professors. ERATO differs from the

U.S. National Science Foundation’s S&T Centers in

that professors under ERATO funding are hired away

from their university, and project equipment does not

build on their current university laboratory.

In the 1990s, Japan’s university research funding is

increasing through Monbusho’s additional funding of

grants-in-aid and from a trend toward multi-channel

funding. After 1995, government agencies other than

Monbusho can contribute directly to academic science.

Monbusho has recently written legislation to allow

direct funding of university researchers by STA and

MITI. Monbusho also increased funding for competitive research to 100 billion yen in 1996 (approximately

$450 million dollars) (Monbusho, 1996). These research funds are provided to individual researchers on

the merit of their proposals through Monbusho’s

Grants-in-Aid Division.23 Considering sources of

funding from various science agencies, competitive

research support reached almost $875 million (in

constant 1987 million dollars) at national universities

by 1995 (table 6). The overlapping funding of universities by other government agencies (STA and MITI),

which is now permitted, provided one-quarter of a

million dollars to national university research funding

in that same year; industry almost $200 million dollars.

23 See NSF Tokyo Report 95-18 (NSF, 1995a).

Figure 27. R&D expenditures in the higher education sector

See appendix table A-5.

0

5,000

10,000

15,000

20,000

25,000

1975 1980 1985 1990 1995

Millions of constant 1987 dollars

Japan

United States
39

The majority of university research funding, however,

still comes from Monbusho’s formula funding of

university chairs.

These three ministries (Monbusho, STA, and MITI)

also came together to provide multiple funding sources

for the creation of university Centers of Excellence

(COE). (See NSF Tokyo Report 95-22 for background

on Monbusho and STA programs for COE, NSF,

1995b). The objectives of these centers are to be the

focal point of information in a particular field, set a

research direction that is leading the field, and have a

significant output of research articles in that field.

While Japanese industry will continue to use U.S.

graduate schools for advanced training of their researchers, Japanese industry will likely expand their

collaboration with Japanese universities’ emerging

centers of excellence.

In 1996, Monbusho has provided JSPS with

new competitive research funds for all universities.

Similarly, STA initiated new programs in 1995 to which

JAPAN’S UNIVERSITY SURVEY

In 1992, the Japanese National University Association conducted a survey of all national

university professors regarding university operations and their research environment. The survey

included items on their salary, equipment, space, barriers to the pursuit of research, teaching

hours, travel and research grant funds, and any cooperative activity with industry. The survey also

solicited their opinion of the quality of their research, whether funds other than Monbusho would

be good for national universities, whether shared use was possible for their equipment needs, and

how to improve the present status of university research. Of the respondents from national universities, 60 percent considered their conditions “very much inferior” to those in the industrial sector

(Koizumi,1993). The results were summarized and recommendations were made to Monbusho to

improve research equipment and its efficient use by opening facilities to other universities, to

increase the budget for research grants and travel, to introduce funds from other organizations

into the university, and to strengthen its linkages with other ministries (STA and MITI) involved

in funding Japanese science.

See appendix table A-22.

Figure 28. Distribution of higher education expenditures, by field: 1993

United States

Social 

sciences 6%

Other 6%

Medical 

sciences 27%

Engineering 

16%

Math/comp. 

3%

Natural 

sciences 34%

Agricultural 

sciences 8%

Japan Natural sciences 

9% Agricultural 

sciences 4%

Other 15%

Medical 

sciences 26%

Engineering 

22%

Social sciences 

25%
40

researchers in universities and national laboratories

affiliated with STA may apply. MITI has done the

same. The problem of lack of technicians in university

research laboratories is addressed in these new funding

schemes, which allow hiring of needed technicians for

a fixed-time research project.

GOVERNMENT FINANCING OF

RESEARCH FACILITIES

Japan’s government is supporting cutting-edge

facilities under Monbusho and STA funding, and is a

contributing member of CERN for international costsharing. (AAAS, 1997). The major focus is on renovation of existing facilities and on new national interuniversity research institutes that allow shared-use by

several universities. Monbusho’s support of new world

class facilities and “big science” allows for the expansion of basic science in the fields of astronomy, highenergy physics, space science, environmental earth,

and bioscience. (See “Japan’s Unique Scientific

Facilities” on increased opportunities for access by the

international research community to these unique

scientific facilities.)

JAPAN’S UNIQUE SCIENTIFIC FACILITIES

Japanese government agencies (STA and Monbusho) have growing science budgets to provide a boost to the funding and realization of world class research facilities, such as The International Thermonuclear Experimental Reactor (ITER). The goal of this facility, funded by the

Russian Federation, Europe, the United States, and Japan, is to demonstrate controlled ignition of

plasmas and, ultimately, the utilization of fusion power for practical purposes. Japanese funding

is especially encouraging because of tight European and U.S. science budgets for international

facilities. For example, Japan’s 1997 government budget authorized $32 million for their role in

planning the Large Hadron Collider (LHC) at CERN in Switzerland (AAAS, 1997). In addition,

Japan’s recently launched MUSES-B satellite will provide radio astronomers the first space-based

antenna dedicated to very long baseline interferometry (Normile, 1997); multinational collaborators will take the radio-astronomical observations. Japan’s proposed facility in radio astronomy,

called Large Millimeter and Submillimeter Array, is expected to provide one of the dominant

facilities in millimeter-wave astronomy for the first quarter of the next century (Mervis, 1997).

Japan’s increased government science budget will also contribute to large international

research projects, such as the Ocean Drilling Program (ODP) and the continuation of the Human

Frontier Science Program, providing funding to U.S. and European researchers. Japan has the

first full-scale neutrino astrophysical observatory in the world, with 30 American collaborators.

The SPring 8 synchrotron radiation facility under construction in Kobe will be completed in 1998

and open to overseas researchers.

Astronomical research will be strengthened through the Nobyeama Cosmic Radio Observatory and the Subaru facility in Hawaii, providing the largest single-mirror optical telescope (an 8-

meter diameter optical and infrared telescope), open to the world’s research community.

Monbusho’s support of the so-called “Super-Kamiokande” facility at the Institute for Cosmic Ray

Research of the University of Tokyo, will allow unique solar and atmospheric neutrino experiments. Accelerator research will benefit from a new particle accelerator facility, called the KEK

B-Project, will explore asymmetrical behavior among particles and antiparticles. The National

Institute for Fusion Science will complete the Large Helical Device Facility to study steady-state

plasmas leading to a fusion reactor (AAAS, 1997).
41

CHAPTER 6. OUTPUTS OF R&D

Japan’s proportion of articles in this set of globally

influential S&T journals.

Japan’s share of the world’s scientific and technical articles increased somewhat from 6.6 percent in

1981 to 8.8 percent in 1993, based on larger shares of

publications across several fields, including clinical

medicine, biomedical research, biology, physics, and

engineering. Only in chemistry and mathematics has

Japan’s share of the world’s scientific articles decreased from 1981–93 (figure 29). Japanese research

papers in material science, agriculture, and astrophysics are frequently cited by other researchers—a clear

indication of the quality of Japan’s research in these

fields (NISTEP, 1995).

In contrast, as other countries have increased their

production of scientific publications, the U.S. share of

the world’s scientific articles has decreased from

35.9 percent in 1981 to 33.6 percent in 1993. As

scientific knowledge is diffused throughout the world

and civilian research budgets in the European and

Asian regions are becoming comparable to that of the

United States (each region reached $100 billion in

1992), a greater share of the world’s scientific literature originates in laboratories outside the United States

(NSF, 1993 and NSF, 1996c).

24 The database encompasses the natural sciences and

engineering. The social and behavioral sciences tend to rely more

on publication vehicles not covered by ISI (e.g., books and

monographs). For this reason, these fields are omitted from the

database. The database also excludes letters to the editor, news

pieces, editorials, and other content whose central purpose is not

the presentation or discussion of scientific data, theory, methods,

apparatus, or experiments. ISI periodically updates its journal

coverage, based in part on references in covered publications to

others not yet included. Given this citation-based updating, one can

conclude that ISI provides reasonably good coverage of a core set

of scientific journals (albeit with some English language bias), but

not necessarily of all that my be of local or regional importance.

While it is difficult to accurately measure the

returns to a nation’s R&D investment, new knowledge

resulting from R&D is sometimes identifiable by

discrete events, which can be used as measures of the

output of R&D activity. Bibliometrics (scientific

publications and their citation by other researchers)

and patents are two such output indicators. Scientific

publications reflect research of significance to the

scholarly community while patent registrations reflect

inventive activity of potential commercial consequence.

The impact of new knowledge resulting from R&D

is even more difficult to measure, especially with

regard to basic research. R&D would, however, be

expected to have an impact on such economic factors

as productivity, demand for technological know-how,

and international trade. These factors are, in turn,

quantifiable in the form of manufacturing output,

royalties and fees paid to firms to gain access to technological know-how, and trade surpluses from trade in

advanced technology products. These can be used as

rough measures of the impact of a nation’s R&D

efforts.

SCIENTIFIC LITERATURE

The database used here to compare U.S. and

Japanese scientific literature consists of scientific and

engineering articles published in the set of 4,681

natural science and engineering journals covered by

the Institute of Science Information’s (ISI) Science

Citation Index (SCI).24 SCI covers major refereed

scientific and technical (S&T) journals from around

the world (NSB, 1996). This database is biased toward

the English language so it does not reflect all of

Japan’s S&T literature. Rather, it is reflective of

See appendix table A-23.

Figure 29. Share of world's scientific articles,

by field: 1993

0

10

20

30

40

50

60

Biomedical

Biology

Chemistry

Physics

Earth and space

Engineering

Mathematics

Japan 1981 Japan 1993

United States 1981 United States 1993

Percent
42

Japan’s goal of increasing its international cooperative research, as stated in S&T White Papers since the

mid-1980s, has resulted in increased international

coauthorship. In the 1988–93 period, almost 11 percent

of Japan’s scientific articles in this set of journals were

internationally coauthored, up from 7 percent in the

previous period of 1981–87. While U.S. scientists are

still the main collaborators on internationally coauthored articles with Japanese scientists (43 percent), an

increasing percentage of these articles are based on

collaborations with scientists from European

(34 percent) and Pacific Rim (14 percent) countries,

particularly China (NSB, 1996).

PATENTS

Patents are one output indicator, albeit partial and

imperfect, of the growth in new products and processes

that result from industrial R&D. U.S. patents can be

viewed as an indicator of global patenting. The analysis of U.S. patenting activity which follows has the

advantage of comparing patenting across countries

within a patent system requiring the same criterion of

invention for patent application.

Japan’s investment in industrially funded R&D

mirrors the number of U.S. patents granted to Japanese

inventors over the last 13 years. (See figure 30.) The

very strong growth in industrial R&D throughout the

1980s corresponds with similar strong increases in the

number of patents during the same period. From

1980–90, the number of U.S. patents granted to Japanese scientists and engineers increased at an average

annual rate of 10.6 percent, from 7,000 in 1980 to

19,524 in 1990. As Japanese industrial R&D funding

declined in the early 1990s, the growth rate of the

number of U.S. patents also declined, to 2.9 percent

annually. Despite this recent slowing in patent growth

rate, Japanese inventors still received about 23 percent

of all U.S. patents in 1993 and represented almost onehalf of all foreign patents granted in the United States,

indicating a strong level of inventiveness (NSB, 1996).

Japanese patenting activity in the United States has

been particularly strong in the fields of computers,

radio and television, electrical components and communications equipment, and motor vehicles and equipment. In each of these areas, the number of patents

granted to Japanese inventors within the U.S. patent

system has exceeded the number granted to inventors

from all the countries of the European Economic

Community (EEC) combined (NSB, 1996). By 1993,

several Japanese firms were among the 10 top patenting corporations in the United States (table 13).

An examination of domestic patenting trends in

Japan also shows the surge of applications from industrial researchers in the 1980s and a leveling off in the

number of applications in the 1990s. In 1993, applications from Japanese inventors to the Japan Patent

Agency declined (NISTEP, 1995). The number of

patents granted to U.S. inventors also grew throughout

the 1980s, at 2.4 percent annually, and even more

slowly in the 1990s, at 2.0 percent annually.

Company Number of patents

IBM Corporation.................................. 1,085

Toshiba Corporation......................................... 1,040

Canon Kabushiki Kaisha................................... 1,038

Eastman Kodak Company................................. 1,007

General Electric Corporation............................. 932

Mitsubishi Denki Kabushiki Kaisha................... 926

Hitaschi, Ltd........................................ 912

Motorola Incorporated....................................... 729

Matsushita Electric Industrial Company, Ltd..... 713

Fuji Photo Film Coi, Ltd..................................... 632

SOURCE: National Science Board, Science and Engineering 

 Indicators: 1996 (Washington, D.C.: U.S. Government 

 Printing Office, 1996).

Table 13. Top patenting corporations: 1993

See appendix tables A-10 and A-24.

Figure 30. Industrially funded R&D and U.S. patents

granted to inventors from Japan: 198093

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1980 1985 1990

5,000

10,000

15,000

20,000

25,000

Millions of dollars Patents

Patents

R&D
43

INDUSTRIAL PRODUCTIVITY

Recent assessments of Japanese technology have

observed that one of Japan’s strengths has been in

applying technology to production processes. In industrial manufacturing fields that involve both complex

products and processes, Japan excels and achieves a

large international trade surplus (Kash, 1996). Japan

has also made rapid progress in manufacturing productivity during the past decade; manufacturing output per

worker-hour increased 4.3 percent annually from

1984–94, compared with a 2.9-percent annual increase

in the United States in the same period (table A-25).

ROYALTIES AND FEES

Japan has traditionally been a net importer of

technological know-how. In 1990, Japan paid over

$7 billion in royalties and fees for access to intellectual

property from other countries, more than twice as

much as it sold to other countries. The United States

has traditionally been a net exporter of intellectual

property, maintaining a large surplus in international

trade of technical knowledge. In 1990, the United

States had more than a 3-to-1 ratio of receipts (exports)

to payments (imports) for intellectual property. The

surplus of receipts (sales of technical know-how) over

payments (purchases) may indicate that the United

States is strong in the creation of industrial technology

(table A-26).

The amount of U.S. receipts of royalties and

license fees generated from the exchange of industrial

processes differs by country. Compared with the other

major industrialized countries, Japan has the highest

ratio of payments-to-receipts for access to U.S. technology. In 1993, U.S. companies received 7 times more

than they paid in the exchange of technical know-how

with Japanese firms (table 14).

However, when data from Japanese manufacturing

industries are examined, a somewhat different picture

emerges. In selected industries, Japanese companies

are net exporters of technical know-how to the rest of

the world. Data for 1990 show Japanese manufacturing

industries’ trade in technological know-how nearly in

balance in 1990, and by 1993, Japanese companies

received more in royalties and fees than they paid for

technical know-how in several industry fields, including industrial chemicals, ceramics, iron and steel, and

fabricated metals. Additionally, in motor vehicles the

ratio of receipts-to-payments was 14-to-1, reflecting

the spread of Japanese know-how in auto manufacturing in Europe and Asia (table A-27).

TRADE IN ADVANCED TECHNOLOGY

PRODUCTS

R&D and technological innovation play a major

role in trade performance, particularly in advanced

technology products.25 The United States is the leading exporter of advanced technology products throughout the world, but has a large trade imbalance with

Japan in these products. In 1992, the overall U.S. share

of the world’s exports of advanced technologies to all

countries was about 25 percent, compared with Japan’s

share of 17 percent (table 15). The U.S. share of the

world’s exports is particularly large in biotechnology

fields, aerospace industries, and weapons technologies,

accounting for more than one-third of the world exports in these fields; Japan is particularly strong in

information technologies and electronics, accounting

for about one-quarter of the world exports in these

fields.

25 The list of advanced technology products is compiled by the

U.S. Bureau of the Census. To be included in one of the categories,

a product must contain a significant amount of one of the leadingedge technologies, and the technology must account for a significant portion of the product’s value.

Factor 1987 1990 1993

[Millions of current dollars]

Receipts............................................ $723 $1,028 $1,392

Payments......................................... 88 141 194

Balance............................................. 635 887 1,198

Ratio of receipts

to payments.................................. 8:1 7:1 7:1

1/ Generated from the exchange and use of industrial processes 

with unaffiliated foreign residents.

SOURCE: National Science Board, Science and Engineering

 Indicators: 1996 (Washington, D.C.: U.S. 

 Government Printing Office, 1996).

Table 14. U.S. receipts of royalties and license fees

from Japan: various years 1/
44

However, in considering only U.S.–Japan bilateral

trade (rather than world-wide trade), in 1994 Japan’s

export of advanced technology products reached more

than $28 billion, exceeding imports from the United

States by more than $14 billion and indicating that

Japan is also strong in the creation of such industrial

Figure 31. Japanese trade balance with the United States

in advanced technology products: 1994

NOTE: Currency conversion uses official exchange rate.

See appendix table A-28.

Technology United States Japan

All technologies........................... 25.2% 17.0%

Biotechnologies....................... 37.0 4.3

Life science technologies........ 27.5 13.8

Opto-electronics...................... 13.7 22.8

Information technologies......... 18.5 23.0

Electronics.............................. 20.3 25.5

Manufacturing technologies.... 16.2 21.5

Advanced materials................ 28.6 9.3

Aerospace............................... 44.2 1.4

Weapons technologies............ 34.3 4.6

Nuclear technologies.............. 20.8 0.2

NOTE: Technologies represent broader categories than the 

 standard classification of industries.

SOURCE: DRI/McGraw Hill, special tabulations, April, 1994, as 

 presented in Science and Engineering Indicators: 1996. 

[Percent]

technology products: 1992

Table 15. Share of world exports of advanced 

output. The largest trade surpluses for Japan are from

computers and telecommunications and electronics.

The largest deficits for Japan from high technology

trade with the United States result from aerospace and

nuclear technology, and increasingly from software

(figure 31).

1,144

4,987

11,344

1,291

14,318

188

111

3,329

852

235

Computer integrated manufacturing

Aerospace

Nuclear tech.

Software

Electronics

Computers and telecomm.

Opto-electronics

Life science

Biotechnologies

All technologies

Millions of current U.S. dollars
45

CHAPTER 7. SUMMARY

science. Domestically, Japan will continue expansion of

doctoral programs and attempt to create centers of

excellence in research. Until recently, most doctorates

in the natural sciences and engineering in Japan were

earned by industrial researchers in Japanese companies. By 1994, more doctoral engineering degrees were

earned for research within university laboratories

(53 percent) than for those in industrial research

laboratories (47 percent). The planned funding of

10,000 fellowships for doctoral students and

postdoctorates by the year 2000 would continue this

trend.

The main Japanese science funding agencies are

increasing the amount of competitive research funding

to improve university research environments, and to

overcome the deficiencies in present facilities and

research personnel. New funding programs will facilitate collaboration of scientists from industry, universities and national laboratories, and provide for employment of research assistants and laboratory technicians

on fixed-term projects (3–5 years). About 5–7 strong

research institutes will receive large 5-year science

funding to become centers of excellence, that is,

research centers for world-class research in a particular

field.

HIGHER EDUCATION

Japan is expanding funding and programs for U.S.

and other international students to study in graduate

programs in science and engineering in Japan. However, U.S. students have not taken advantage of ongoing educational exchange programs with Japan. One

issue for the United States to address is whether or not

interest can be mobilized among graduate and undergraduate S&E students for greater transnational

competence.

INTERNATIONAL COLLABORATIVE

RESEARCH

Japanese science agencies have growing R&D

budgets to provide a boost to the funding and realization of world class research facilities, within Japan and

abroad. For example, accelerator research will benefit

from a new particle accelerator facility being built at

the National Laboratory for High Energy Physics in

Tsukuba Science City. The facility, called the KEK

The trends presented in this report show that Japan

has caught up with, or surpassed, the United States in

some leading indicators of scientific and technological

strength, and lags behind in others. Japan leads the

United States in the percent of GDP invested in total

and non-defense R&D, as well as government investments in civilian R&D as a percent of GDP. Japan is

particularly strong in technology and trade indicators,

and has a higher proportion of engineers in its labor

force than the United States. Japan is still behind the

United States, however, in R&D expenditures in higher

education, in competitive research funding in universities, and in its share of the world’s scientific articles.

Japan has far smaller graduate S&E programs than the

United States, especially in natural sciences. The

research productivity of these departments is influenced by the number of qualified doctoral students, as

well as the quality of professors (Ushiogi, 1993). Japan

is attempting to address these weaknesses by increasing government science budgets targeted specifically

for universities and national laboratories, with expansion of both doctoral programs and the national capacity for basic research.

IMPLICATIONS

Barring a major economic setback or other unforeseen situation, it appears that Japan can double government R&D support by the year 2000, or shortly thereafter. This suggests a stronger human and physical

infrastructure for basic science in Japan and continued

support by Japan for major international science

programs. The overall result could be a continuing

increase in the Japanese contribution to advancing

science and engineering knowledge.

The current S&T strengths of Japan, coupled with

their concerted efforts to advance their capacity for

breakthrough research, have implications for their

domestic science as well as global S&T. Some of these

implications relate to issues in human resources for

science and technology, higher education, collaborative

research and science funding.

HUMAN RESOURCES

The additional funding is aimed at strengthening

Japan’s human and physical infrastructure for basic
46

B-Project, will explore asymmetrical behavior among

particles and antiparticles. In addition, the SPring 8

synchrotron radiation facility under construction in

Kobe will be completed in 1998 and open to overseas

researchers.

The increase in government sponsored research in

Japan, at a time when the United States and Western

European governments have constrained science

budgets, creates several opportunities for the international research community. Japan is providing additional funds to intensify international research cooperation on global issues, such as food, energy, environment and infectious diseases, and in basic sciences,

such as the Human Frontiers and Human Genome

Project. Japan is establishing international centers for

R&D in Tsukuba Science City, and expanding both

postdoctorate fellowships for foreign researchers and

accommodations for foreign scientists at national

laboratories.

This expanded government R&D funding and

increased access to unique facilities suggest that issues

concerning research cooperation for enhancing the

advancement of basic knowledge and quickening the

pace of scientific discovery, as well as ways for improving information about the scientific and technological accomplishments of Japan, could grow in

importance in the near future. New issues are likely to

arise concerning the best ways to enhance awareness

and intensify U.S. involvement and cooperation with

scientists and engineers in excellent facilities and

research centers in Japan. For example, how might

information flows be improved for the U.S. science

community to identify promising candidates for further

cooperation that would benefit both parties?

SCIENCE FUNDING AND ACCOUNTABILITY

Japan’s decisions to double the government budget

for R&D provides the United States and European

countries an example of a different strategy in national

science policy when facing difficult times. Like the

United States and many European countries, Japan has

a large national debt, a public eager to balance the

national budget, and a private sector interested in

keeping the government small. The prolonged economic recession in Japan has resulted in slower growth

rates in its economy in the 1990s than in any other

industrial nation. Nonetheless, Japan has chosen to

protect and increase government funding of science as

an investment in the future.

The additional funding, however, is made with high

expectations for future benefits to society, and with

requirements to evaluate the effectiveness of large

public outlays. The rationale for increased funding of

strategic basic research is its importance in recovery

from recession and for its contribution to long-term

sustainable development of Japan. It is expected that

large funding of research projects with industry—

university collaboration will lead to technological

innovations, creation of new industries and a more

prosperous society. Thus the Science Council is required to develop guidelines for an evaluation system

of outcomes of large funding projects. This raises the

issue of how the United States might best track the

Japanese experience as an input to the development of

government performance and evaluation measures in

the areas of science and technology.

NEED FOR FURTHER RESEARCH

The Asian region is the fastest growing region of

the world, with large potential markets for trade. While

there is uneven growth among Asian countries, and

uneven growth within large countries such as China,

the combined economies of 12 countries in the Asian

region were over $10 trillion in constant dollar terms in

1994 (table 16). Several countries within this region

Country GDP 

[Millions of constant 

1987 dollars 1/]

Total....................................... $10,367,511

China..................................... 4,353,706

Hong Kong.................................... 96,238

India.......................................... 863,002

Indonesia...................................... 532,986

Japan................................................................. 2,052,499

Malaysia.................................... 132,059

Pakistan........................................ 53,339

Philippines.................................... 1,363,716

Singapore.................................. 43,504

South Korea.............................. 371,644

Taiwan...................................... 194,452

Thailand.................................... 310,366

1/ GDP for each country, provided in current national currencies by 

 the International Monetary Fund, was converted to constant 1987 

 dollars.

 

SOURCE: International Monetary Fund, International Financial 

 Statistics Yearbook (IMF: Washington, D.C., 1996).

Table 16. GDP of selected Asian countries: 1994
47

have higher GDP growth rates than the United States

or European countries (see NSF, 1993 and NSF,

1996c).

Japan is continuing to place its manufacturing

industries and assembly offshore, mainly through

investment in plants and equipment in developing

Asian countries. Japan’s direct foreign investment

(FDI) in Asian countries reached $10 billion26 in 1995,

up from $5 billion in 1987 (Manifold, 1966). Through

technology transfer and the education of significant

numbers of foreign students from neighboring countries in engineering, health, and agriculture, Japan will

26 Market exchange rate conversion, not PPPs.

continue to be one of the Asian region’s growth engines. (See Chapter 4.) The Japanese Office of Development Assistance (ODA) is continuing its strong

outreach program for more integration with China and

South Korea, and for technical assistance to developing countries in the Asian region. There is need for

research on the effectiveness of this three-pronged

approach (direct foreign investment, technical assistance, and science and engineering education) to

Japan’s competitiveness in the Asian region, and

Japan’s role in fostering a prosperity sphere in East

Asia.
49

METHODOLOGY AND NOTES ON DATA SERIES

expenditures of developing countries such as China

and India, PPPs result in a larger estimate of total

research spending than do MERs.

PPPs are the preferred international standard for

calculating cross-country R&D comparisons and are

used, for example, in all official OECD R&D tabulations. Although there is considerable difference in what

is included in GDP-based PPP items and R&D expenditure items, the major components of R&D costsfixed assets and the wages of scientists, engineers, and

support personnel-are more suitable to a domestic

converter than to one based on foreign trade flows.

Exchange rate movements bear little relationship to

changes in the cost of domestically performed R&D.

Changes in dollar-denominated R&D expenditures

converted with market exchange rates exhibit wild

fluctuations, and are inappropriate for showing trends.

PPP calculations result in R&D expenditure changes

considerably closer to the countries’ actual funding

pattern.

Japan’s present national currency was converted to

constant 1987 national currency and then converted to

1987 constant PPPs ($PPP) using PPP conversion rates

of the Organization for Economic Co-operation and

Development (OECD).

OECD ADJUSTED DATA FOR JAPAN

The national survey in Japan collects data for

researchers as “persons working mainly in R&D”

rather than in terms of full-time equivalent. Consequently, R&D personnel and labor cost data are overestimated by international standards. Recent studies by

the Japanese authorities suggest that in order to reach

FTE the numbers of researchers might, perhaps, be cut

by 40 percent in the higher education sector and by

about 30 percent in the business enterprise sector and

for the national total. Therefore, higher education R&D

(HERD) would be reduced by about 25 percent and

business enterprise R&D (BERD) and gross expenditure R&D (GERD) cut by about 15 percent.

PURCHASING POWER PARITIES

Purchasing power parities (PPPs) are the preferred

normalizer of international R&D data. Comparisons of

international statistics on R&D are hampered by the

fact that countries’ R&D expenditures are denominated, obviously, in their home currencies. Two approaches are commonly used to normalize the data and

facilitate aggregate R&D comparisons. The first

method is to divide R&D by GDP, which results in

indicators of relative effort vis-a-vis total economic

activity. The second method is to convert all foreigndenominated expenditures to a single currency, which

results in indicators of absolute effort. The first method

is a straightforward calculation, but enables only gross

national comparisons. The second permits finer intercountry comparisons, but first entails choosing an

appropriate currency conversion series.

Since, for all practical purposes, there are not

widely accepted R&D-specific exchange rates, the

choice is between market exchange rates (MERS) and

PPPs. These are the only series consistently compiled

and available for a large number of countries over an

extended period of time.

 At their best, MERs represent the relative value of

currencies for goods and services that are traded across

borders—that is, MERs measure a currency’s relative

international buying power. But because sizable portions of most countries’ economies do not engage in

international activity, and because major fluctuations in

MERs greatly reduce their statistical utility, an alternative currency conversion series—PPPs—has been

developed. PPPs take into account the cost differences

across countries of buying a similar basket of goods

and services in numerous expenditure categories,

including nontradables: The PPP basket is representative of total gross domestic product across countries.

When applied to current R&D expenditures of major

industrial countries such as Germany and Japan, PPPs

result in a lower estimate of total research spending

than do MERs. For example in 1994, Japan’s R&D

totaled $76 billion based on MERs and $54 billion

based on PPPs. When applied to current R&D
50

For some years OECD has calculated an “adjusted” Japanese series of data for the higher education

sector, based on proportions observed in other member

countries (less 50 percent of researchers and hence

about 35 percent of HERD) and, thus, for the national

totals (less 12.5 percent researchers and 10 percent

GERD) for use in its own reports. (See OECD Science

and Technology Indicators No. 2—R&D, Invention

and Competitiveness, p. 75.) This OECD series does

not make any adjustment to the business enterprise

sector.

OECD “adjusted” series include a special analysis

of the Japanese Science and Technology Budget by

socio-economic objective prepared for OECD by

Japanese consultants. The latter excludes most R&D in

the social sciences and humanities.

STOCK OF SCIENTISTS AND

ENGINEERS

The 1990 Japanese data presented in tables 1 and 2

are based on the U.S. Bureau of the Census, 1996

publication of Scientists and Engineers in Japan:

1990, which provides the results of a 13-percent

sample tabulation of the 1990 Japanese Population

Census. The prior years of Japanese data presented are

taken from the previous SRS 1988 publication: The

Science and Technology Resources of Japan: A Comparison with the United States. The U.S. 1980 data are

from this previous SRS publication, while the 1986

and 1991 U.S. data presented are from the U.S. Bureau

of the Census 1992 publication Scientists and Engineers in Industrialized Societies, which uses a 3-percent sample from each national census.
51

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55

APPENDIX:

DETAILED DATA TABLES
Table A-1. National expenditures for the performance of R&D: 1975–96

Year

[Millions of [Japan [Millions of [PPP

current yen] deflator] constant yen] conversion] constant 1987 dollars 1/]

1975.............................. ¥2,737,000 0.71 ¥3,834,828 279.60 $18,172 $72,237

1976.............................. 3,054,400 0.77 3,992,396 283.60 18,919 75,043

1977.............................. 3,358,920 0.81 4,124,347 282.70 19,544 76,720

1978.............................. 3,725,080 0.85 4,392,906 276.70 20,817 80,070

1979.............................. 4,217,280 0.87 4,827,237 260.90 22,875 84,061

1980.............................. 4,826,320 0.91 5,319,981 250.00 25,210 87,649

1981.............................. 5,502,795 0.92 5,997,921 242.70 28,423 91,408

1982.............................. 6,014,874 0.93 6,453,178 232.50 30,580 95,541

1983.............................. 6,621,186 0.95 7,001,630 226.80 33,179 102,285

1984.............................. 7,302,421 0.97 7,546,886 223.20 35,763 111,201

1985.............................. 8,274,717 0.98 8,424,366 219.10 39,921 120,600

1986.............................. 8,562,752 1.00 8,562,752 217.50 40,577 123,321

1987.............................. 9,162,095 1.00 9,162,095 211.00 43,417 125,376

1988.............................. 9,931,859 1.00 9,900,822 203.90 46,917 127,831

1989.............................. 11,075,422 1.02 10,837,606 199.00 51,357 129,892

1990.............................. 12,277,538 1.04 11,749,604 195.30 55,678 133,999

1991.............................. 12,923,892 1.07 12,043,004 193.70 57,069 136,300

1992.............................. 13,001,112 1.09 11,917,686 186.70 56,475 136,197

1993.............................. 12,736,831 1.10 11,597,666 184.30 54,958 133,780

1994.............................. 12,626,894 1.10 11,464,836 181.10 54,329 133,483

1995 (prelim.).............................. NA 1.10 NA 181.30 NA 139,408

1996 (prelim.).............................. NA 1.09 NA 177.00 NA 140,893

1/ Conversion of Japanese yen to U.S. dollars is calculated with purchasing power parity exchange rates from the 

 Organisation for Economic Co-operation and Development. Numbers for constant yen and constant dollars are 

 derived from deflator and PPP data.

KEY: NA = not available

NOTES: R&D data for Japan are based on OECD's "adjusted series" for Japan, for better international comparability. 

 (See Methodology and Notes on Data Series.) U.S. data are preliminary for 1995 and 1996. Constant 1987 

 dollars for the United States are based on U.S. Department of Commerce GDP implicit price deflators.

SOURCES: For Japan, 1981–94 data: Organisation for Economic Co-operation and Development, Main Science and 

 Technology Indicators (MSTI), Paris, OECD, December,1996; for earlier data for Japan, 1975–80, 

 OECD/MSTI 1990, special tabulations; for the United States, Science Resources Studies Division, 

 National Science Foundation, National Patterns of R&D Resources: 1996 , NSF 96-333 (Arlington, VA: NSF, 1996).

 

Japan United States

[Millions of 

57
Table A-2. National expenditures for the performance of R&D as a percent of GDP: 1975–96

GDP R&D as a percent of GDP

Year Japan United States Japan United States

[Millions of constant 1987 dollars 1/]

1975.............................. $984,819 $3,224,029 1.9% 2.2%

1976.............................. 1,031,750 3,383,203 1.8 2.2

1977.............................. 1,080,058 3,533,381 1.8 2.2

1978.............................. 1,142,273 3,703,251 1.8 2.2

1979.............................. 1,201,690 3,796,537 1.9 2.2

1980.............................. 1,254,549 3,776,377 2.0 2.3

1981.............................. 1,332,408 3,843,013 2.1 2.4

1982.............................. 1,375,753 3,760,255 2.2 2.5

1983.............................. 1,411,938 3,906,666 2.4 2.6

1984.............................. 1,471,871 4,148,490 2.4 2.7

1985.............................. 1,545,840 4,279,676 2.6 2.8

1986.............................. 1,585,623 4,404,292 2.6 2.8

1987.............................. 1,651,093 4,539,930 2.6 2.8

1988.............................. 1,754,598 4,718,710 2.7 2.7

1989.............................. 1,837,158 4,839,447 2.8 2.7

1990.............................. 1,950,218 4,895,057 2.9 2.7

1991.............................. 2,026,702 4,868,027 2.8 2.8

1992.............................. 2,049,410 4,979,487 2.8 2.7

1993.............................. 2,051,471 5,136,275 2.7 2.6

1994.............................. 2,061,268 5,343,695 2.6 2.5

1995.............................. 2,079,285 5,520,671 NA 2.5

1996.............................. 2,126,761 5,670,229 NA 2.5

1/ Conversion of Japanese yen to U.S. dollars is calculated with purchasing power parity exchange rates from the 

 Organisation for Economic Co-operation and Development.

KEY: NA = not available

NOTES: R&D data for Japan are based on OECD's "adjusted series" for Japan, for better international comparability.

 (See Methodology and Notes on Data Series.) Constant 1987 dollars for the United States are based on 

 U.S. Department of Commerce calendar year GDP implicit price deflators.

SOURCES: For Japan, 1981–94 data: Organisation for Economic Co-operation and Development, Main Science and 

 Technology Indicators (MSTI), Paris, OECD, December 1996; for earlier data for Japan, 1975–80, 

 OECD/MSTI 1990, special tabulations; for the United States, Science Resources Studies Division, 

 National Science Foundation, National Patterns of R&D Resources: 1996 , NSF 96-333 

 (Arlington, VA: NSF, 1996).

[Percent]

58
Table A-3. Estimated nondefense R&D expenditures as a percent of GDP: 1975–96

Total Government

Year Japan United States Japan United States

[Millions of constant 1987 dollars1/]

1981........................................ $28,254 $68,021 $6,909 $19,242

1982........................................ 30,394 68,813 7,001 16,974

1983........................................ 32,981 72,273 7,069 16,869

1984........................................ 35,544 77,992 7,113 16,979

1985........................................ 39,638 83,454 7,342 18,100

1986........................................ 40,263 84,562 7,558 17,209

1987........................................ 43,065 85,805 8,158 18,343

1988........................................ 46,527 89,184 8,101 18,581

1989........................................ 49,603 93,885 8,196 19,181

1990........................................ 55,205 99,859 8,491 20,312

1991........................................ 56,561 105,636 8,851 20,658

1992........................................ 55,923 106,561 9,331 20,326

1993........................................ 54,366 104,780 10,235 19,956

1994........................................ 53,723 106,874 9,988 21,309

1995 (prelim.)........................................ NA 112,622 10,138 22,073

1996 (prelim.)........................................ NA NA 11,530 NA

 [Percent]

1981........................................ 2.1% 1.8% 0.52% 0.50%

1982........................................ 2.2 1.8 0.5 0.5

1983........................................ 2.3 1.9 0.5 0.4

1984........................................ 2.4 1.9 0.5 0.4

1985........................................ 2.6 2.0 0.5 0.4

1986........................................ 2.5 1.9 0.5 0.4

1987........................................ 2.6 1.9 0.5 0.4

1988........................................ 2.7 1.9 0.5 0.4

1989........................................ 2.7 1.9 0.5 0.4

1990........................................ 2.8 2.0 0.4 0.4

1991........................................ 2.8 2.2 0.4 0.4

1992........................................ 2.7 2.1 0.5 0.4

1993........................................ 2.7 2.0 0.5 0.4

1994........................................ 2.6 2.0 0.5 0.4

1995 (prelim.)........................................ NA 2.0 0.5 0.4

1996 (prelim.)........................................ NA NA 0.5 NA

1/ Conversion of Japanese yen to U.S. dollars is calculated with purchasing power parity exchange rates from the 

 Organisation for Economic Co-operation and Development. 

KEY: NA = not available

NOTES: R&D data for Japan are based on OECD's "adjusted series" for Japan, for better international comparability. 

 (See Methodology and Notes on Data Series.) Data are preliminary for 1995 and 1996. Constant 1987

 dollars for the United States are based on U.S. Department of Commerce GDP implicit price deflators.

 Technology Indicators (MSTI), Paris, OECD, December 1996; preliminary 1995–96 government data for 

 Japan from Science and Technology Agency (STA) calculations, in National Science Foundation, Tokyo 

 Office, Report Memorandum #96-5, February 2, 1996; for the United States, Science Resources 

 Studies Division, National Science Foundation, National Patterns of R&D Resources: 1996 , NSF 96-333 

 (Arlington, VA: NSF, 1996).

SOURCES: For Japan, 1981–94, Organisation for Economic Co-operation and Development, Main Science and 

59
Table A-4. National R&D funding by source: 1975–97

Page 1 of 2

Japan United States

Univ. & private Univ. & private

Year Government Industry non-profit Government Industry non-profit 

[Millions of constant 1987 dollars 1/]

1975........................................ $4,785 $11,391 $1,388 $37,396 $32,161 $2,679

1976........................................ 4,958 11,919 1,437 38,464 33,837 2,743

1977........................................ 5,156 12,445 1,324 38,793 35,117 2,810

1978........................................ 5,535 13,024 1,528 39,819 37,234 3,017

1979........................................ 6,242 14,634 1,518 41,157 39,762 3,142

1980........................................ 6,749 16,687 1,484 41,385 43,118 3,146

1981........................................ 7,077 19,242 2,103 42,629 45,563 3,217

1982........................................ 7,186 21,161 2,263 43,702 48,559 3,280

1983........................................ 7,266 23,457 2,455 46,881 51,896 3,509

1984........................................ 7,331 25,856 2,575 50,188 57,368 3,645

1985........................................ 7,625 29,541 2,755 55,246 61,418 3,937

1986........................................ 7,872 29,905 2,800 55,968 63,009 4,343

1987........................................ 8,510 31,911 2,996 57,914 62,643 4,819

1988........................................ 8,492 35,376 3,050 57,228 65,492 5,111

1989........................................ 8,628 39,596 3,184 55,188 69,169 5,534

1990........................................ 8,964 43,373 3,341 54,452 73,604 5,943

1991........................................ 9,359 44,171 3,538 51,322 78,652 6,326

1992........................................ 9,883 42,921 3,614 49,962 79,757 6,477

1993........................................ 10,827 40,339 3,902 48,956 78,306 6,518

1994........................................ 10,594 39,877 3,857 47,918 78,802 6,763

1995........................................ 10,806 NA NA 48,859 83,702 6,847

1996........................................ 12,198 NA NA 47,416 86,611 6,867

1997........................................ 13,053 NA NA NA NA NA

See explanatory information and SOURCE at end of table.

 

60
Table A-4. National R&D funding by source: 1975–97

Page 2 of 2

Japan United States

Univ. & private Univ. & private

Year Government Industry non-profit Government Industry non-profit 

26.3% 62.7% 7.6% 51.4% 44.5% 3.7%

1977........................................ 26.4 63.7 6.8 50.5 45.8 3.7

1978........................................ 26.6 62.6 7.3 49.6 46.5 3.8

1979........................................ 27.3 64.0 6.6 48.8 47.3 3.7

1980........................................ 26.8 66.2 5.9 47.1 49.2 3.6

1981........................................ 24.9 67.7 7.4 46.5 49.8 3.5

1982........................................ 23.5 69.2 7.4 45.7 50.8 3.4

1983........................................ 21.9 70.7 7.4 45.8 50.7 3.4

1984........................................ 20.5 72.3 7.2 45.1 51.6 3.3

1985........................................ 19.1 74.0 6.9 45.8 50.9 3.3

1986........................................ 19.4 73.7 6.9 45.4 51.1 3.5

1987........................................ 19.6 73.5 6.9 46.2 50.0 3.8

1988........................................ 18.1 75.4 6.5 44.7 51.2 4.0

1989........................................ 16.8 77.1 6.2 42.5 53.3 4.3

1990........................................ 16.1 77.9 6.0 40.5 54.9 4.4

1991........................................ 16.4 77.4 6.2 37.6 57.7 4.6

1992........................................ 17.5 76.0 6.4 36.6 58.6 4.8

1993........................................ 19.7 73.4 7.1 36.5 58.5 4.9

1994........................................ 19.5 73.4 7.1 35.8 59.0 5.1

1995........................................ NA NA NA 35.0 60.0 4.9

1996........................................ NA NA NA 33.6 61.5 4.9

 Co-operation and Development.

KEY: NA = not available

NOTES: R&D data for Japan are based on OECD's "adjusted series" for Japan, for better international comparability. (See Methodology and 

 Notes on Data Series.) U.S. data are preliminary for 1995 and 1996. Constant 1987 dollars for the United States are based on 

 U.S. Department of Commerce GDP implicit price deflators. Japanese government data for 1995–96 are budget allocation data, 

 not R&D expenditure data. The 1995 government R&D figure does not include the subsequent supplemental budget. 

 Japan's 1997 government data are the Cabinet-approved budget, awaiting Diet approval.

SOURCES: For Japan, 1981–94 data: Organisation for Economic Co-operation and Development, Main Science and Technology Indicators 

 (MSTI), Paris, OECD, December 1996; for earlier data for Japan, 1975–80, OECD/MSTI 1990, special tabulations; for the 

 United States, Science Resources Studies Division, National Science Foundation, National Patterns of R&D Resources: 1996 , 

 NSF 96-333 (Arlington, VA: NSF, 1996).

[Percent]

1/ Conversion of Japanese yen to U.S. dollars is calculated with purchasing power parity exchange rates from the Organisation for Economic 

61
Table A-5. National R&D expenditures, by performer: 1975–96

Page 1 of 2

 Japan United States

Universities Non-profit Universities Non-profit

Year Government Industry & colleges research inst Government Industry & colleges 2/ research inst

[Millions of constant 1987 dollars 1/]

1975.............................. $2,311 $11,186 $3,428 $945 $11,248 $49,161 $9,236 $2,593

1976.............................. 2,395 11,659 3,640 1,003 11,268 51,620 9,525 2,631

1977.............................. 2,463 12,274 3,664 879 10,852 53,354 9,839 2,674

1978.............................. 2,704 12,803 3,982 1,020 11,426 55,231 10,641 2,773

1979.............................. 2,956 14,455 4,218 915 11,465 58,271 11,285 3,040

1980.............................. 3,108 16,413 4,304 1,008 10,810 62,071 11,769 2,999

1981.............................. 3,411 18,748 4,573 1,279 10,830 65,665 11,997 2,915

1982.............................. 3,425 20,535 4,821 1,407 10,934 69,988 11,725 2,894

1983.............................. 3,451 22,851 5,153 1,394 12,163 74,849 12,206 3,068

1984.............................. 3,541 25,156 5,210 1,502 12,730 82,198 12,948 3,324

1985.............................. 3,912 28,657 5,188 1,677 13,727 89,236 14,009 3,628

1986.............................. 3,977 29,002 5,316 1,907 13,939 90,633 15,255 3,483

1987.............................. 4,472 30,775 5,732 2,084 13,413 92,155 16,358 3,450

1988.............................. 4,410 34,104 5,856 2,158 13,625 93,373 17,368 3,465

1989.............................. 4,417 38,180 6,082 2,311 13,886 94,060 18,213 3,733

1990.............................. 4,454 42,026 6,378 2,450 14,151 96,846 18,637 4,148

1991.............................. 4,623 43,023 6,451 2,511 12,972 99,449 19,266 4,464

1992.............................. 5,026 41,530 6,803 2,654 12,975 98,519 19,897 4,673

1993.............................. 5,496 39,065 7,273 2,693 13,547 95,061 20,433 4,656

1994 3/..................... 5,270 38,639 7,252 2,771 12,870 94,841 20,898 4,758

1995.............................. NA NA NA NA 12,843 100,390 21,295 4,797

1996.............................. NA NA NA NA 12,442 102,443 21,221 4,656

See explanatory information and SOURCE at end of table.

62
Page 2 of 2

 Japan United States

Universities Non-profit Universities Non-profit

Year Government Industry & colleges research inst Government Industry & colleges 2/ research inst

1977.............................. 12.6% 62.8% 18.7% 4.5% 14.1% 69.5% 12.8% 3.5%

1978.............................. 13.0 61.5 19.1 4.9 14.3 69.0 13.3 3.5

1979.............................. 12.9 63.2 18.4 4.0 13.6 69.3 13.4 3.6

1980.............................. 12.3 65.1 17.1 4.0 12.3 70.8 13.4 3.4

1981.............................. 12.0 66.0 17.6 4.5 11.8 71.8 13.1 3.2

1982.............................. 11.2 67.2 17.1 4.6 11.4 73.3 12.3 3.0

1983.............................. 10.4 68.9 16.5 4.2 11.9 73.2 11.9 3.0

1984.............................. 9.9 70.3 15.5 4.2 11.4 73.9 11.6 3.0

1985.............................. 9.8 71.8 14.2 4.2 11.4 74.0 11.6 3.0

1986.............................. 9.8 71.5 14.0 4.7 11.3 73.5 12.4 2.8

1987.............................. 10.3 70.9 14.0 4.8 10.7 73.5 13.0 2.8

1988.............................. 9.4 72.7 13.3 4.6 10.7 73.0 13.6 2.7

1989.............................. 8.6 74.3 12.5 4.5 10.7 72.4 14.0 2.9

1990.............................. 8.0 75.5 12.2 4.4 10.6 72.3 13.9 3.1

1991.............................. 8.1 75.4 12.1 4.4 9.5 73.0 14.1 3.3

1992.............................. 8.9 73.5 12.8 4.7 9.5 72.3 14.6 3.4

1993.............................. 10.0 71.1 14.0 4.9 10.1 71.1 15.3 3.5

1994.............................. 9.7 71.1 14.3 5.1 9.6 71.1 15.7 3.6

1995.............................. NA NA NA NA 9.2 72.0 15.3 3.4

1996.............................. NA NA NA NA 8.8 72.7 15.1 3.3

1/ Conversion of Japanese yen to U.S. dollars is calculated with purchasing power parity exchange rates from the Organisation for Economic 

 Co-operation and Development.

2/ In the U.S. data, universities and colleges include federally funded research and development centers (FFRDCs).

3/ In the Japanese data, performance by universities and non-profit institutes is estimated for 1994.

KEY: NA = not available

NOTES: R&D data for Japan are based on OECD's "adjusted series" for Japan, for better international comparability (See Methodology and 

 Notes on Data Series). U.S. data are preliminary for 1995 and 1996. Constant 1987 dollars for the United States are based on 

 U.S. Department of Commerce GDP implicit price deflators. Japanese government data for 1995–97 are budget allocation data, not 

 R&D expenditure data.

SOURCES: For Japan, 1981–94 data: Organisation for Economic Co-operation and Development, Main Science and Technology Indicators (MSTI). 

 Paris, OECD, Dec.,1996; for earlier data for Japan, 1975–80, OECD/MSTI 1990, special tabulations; for the United States, Science 

 Resources Studies Division, National Science Foundation, National Patterns of R&D Resources: 1996 , NSF 96-333 (Arlington, VA:

 NSF, 1996).

[Percent]

Table A-5. National R&D expenditures, by performer: 1975–96

63
Basic Applied Basic Applied

Year Research Research Development Total Research Research Development Total

1980.............................. $11,902 $19,078 $56,669 $87,649 $3,882 $6,403 $15,125 $25,411

1981.............................. 12,303 20,825 58,280 91,408 4,149 7,304 16,996 28,450

1982.............................. 12,480 21,674 61,387 95,541 4,495 7,920 18,195 30,610

1983.............................. 13,377 23,252 65,657 102,286 4,844 8,427 19,940 33,212

1984.............................. 14,223 24,607 72,371 111,201 5,042 8,976 21,743 35,762

1985.............................. 15,066 26,836 78,698 120,600 5,349 9,980 24,631 39,960

1986.............................. 17,121 27,933 78,266 123,320 5,599 9,900 25,116 40,615

1987.............................. 18,025 27,687 79,664 125,376 6,295 10,550 26,571 43,416

1988.............................. 18,351 28,145 81,334 127,830 6,474 11,354 29,088 46,916

1989.............................. 19,549 29,726 80,616 129,891 6,830 12,274 32,251 51,355

1990.............................. 19,789 30,756 83,445 133,990 7,238 13,474 34,965 55,677

1991.............................. 22,513 32,886 80,902 136,301 7,642 14,135 35,682 57,459

1992.............................. 22,212 31,324 82,661 136,197 7,799 13,886 35,113 56,798

1993.............................. 22,719 30,162 80,901 133,782 NA NA NA NA

1994.............................. 22,923 29,067 81,495 133,485 NA NA NA NA

1995.............................. 22,987 29,309 87,112 139,408 NA NA NA NA

1996.............................. 22,814 29,634 88,445 140,893 NA NA NA NA

1980.............................. 13.6% 21.8% 64.7% 100% 15.4% 25.3% 59.3% 100%

1981.............................. 13.5 22.8 63.8 100 14.6 25.6 59.8 100

1982.............................. 13.1 22.7 64.3 100 14.7 25.8 59.5 100

1983.............................. 13.1 22.7 64.2 100 14.6 25.3 60.1 100

1984.............................. 12.8 22.1 65.1 100 14.1 25.1 60.8 100

1985.............................. 12.5 22.3 65.3 100 13.4 24.9 61.7 100

1986.............................. 13.9 22.7 63.5 100 13.8 24.4 61.9 100

1987.............................. 14.4 22.1 63.5 100 14.5 24.3 61.2 100

1988.............................. 14.4 22.0 63.6 100 13.8 24.2 62.0 100

1989.............................. 15.1 22.9 62.1 100 13.3 23.9 62.8 100

1990.............................. 14.8 23.0 62.3 100 13.0 24.2 62.8 100

1991.............................. 16.5 24.1 59.4 100 13.3 24.6 62.1 100

1992.............................. 16.3 23.0 60.7 100 13.9 24.4 61.7 100

1993.............................. 17.0 22.5 60.5 100 NA NA NA NA

1994.............................. 17.2 21.8 61.1 100 NA NA NA NA

1995.............................. 16.5 21.0 62.5 100 NA NA NA NA

1996.............................. 16.2 21.0 62.8 100 NA NA NA NA

[Percent]

[Millions of constant 1987 dollars 1/]

Table A-6. R&D Expenditures in Selected Countries by Characteristic of Work: 1980–93

United States Japan

NOTES: U.S. data are preliminary for 1995 and 1996. Constant 1987 dollars for the United States are based on U.S. Department of 

 Commerce GDP implicit price deflators.

1/ Conversion of Japanese yen to U.S. dollars is calculated with purchasing power parity exchange rates from the Organisation for Economic 

 Co-operation and Development. 

SOURCES: For Japan, Government of Japan, National Institute of Science and Technology Policy, Science and Technology Agency, Science 

 and Technology Indicators: 1994 , NISTEP Report No. 37 (Tokyo, 1995); for the United States, Science Resources Studies 

 Division, National Science Foundation, National Patterns of R&D Resources: 1996 , NSF 96-333 (Arlington, VA: NSF, 1996).

KEY: NA = not applicable

64
Year Japan United States Japan United States

1975........................................ 253,488 527,400 45.5 55.3

1976........................................ 263,486 535,200 47.1 54.7

1977........................................ 265,174 560,600 47.1 55.7

1978........................................ 273,190 586,600 48.3 56.5

1979........................................ 290,827 614,500 51.2 57.7

1980........................................ 303,524 651,100 53.2 60.0

1981........................................ 310,993 683,300 54.0 61.9

1982........................................ 320,991 711,900 56.0 63.6

1983........................................ 347,420 751,700 59.0 66.4

1984........................................ 357,416 797,800 60.0 69.2

1985........................................ 380,761 801,900 64.0 68.4

1986........................................ 392,981 838,992 65.0 70.2

1987........................................ 415,553 877,800 68.0 72.2

1988........................................ 434,643 900,701 70.0 73.0

1989........................................ 457,522 924,200 73.0 73.6

1990........................................ 477,866 942,126 75.0 74.5

1991........................................ 491,102 960,400 75.0 75.7

1992........................................ 511,407 961,549 78.0 75.0

1993........................................ 526,501 962,700 80.0 74.3

1994........................................ 541,015 NA NA NA

Per 10,000 labor force

Table A-7. Scientists and engineers engaged in R&D: 1975–94

SOURCES: For Japan, 1981–94 data: Organisation for Economic Co-operation and Development, Main Science and Technology 

 Indicators (MSTI), Paris, OECD, December 1996; for earlier data for Japan, 1975–80, OECD/MSTI 1990, special 

 tabulations; for the United States, Science Resources Studies Division, National Science Foundation, National 

 Patterns of R&D Resources: 1996 , NSF 96-333 (Arlington, VA: NSF, 1996).

NOTES: Japanese data are based on OECD's "adjusted series" for Japan and include persons primarily employed in R&D in the 

 natural sciences and engineering. (See Methodology and Notes on Data Series.) The U.S. data are a mix of S&Es 

 engaged in R&D on an FTE basis and counts of S&Es whose primary work activity is R&D. U.S. data are imputed 

 for 1986, 1988, 1990, and 1992. 

KEY: NA = not available

65
Objective 1985 1989 1994 1985 1989 1994

Agriculture, forestry,

and fisheries............................................. 11.3% 3.7% 3.5% 2.1% 1.9% 1.8%

Industrial development............................................. 59 4.6 3.7 0.2 0.2 0.1

Energy............................................................ 16.3 22.2 20.5 4.8 3.9 4.2

Health............................................................ 2.6 2.7 3.0 11.2 12.9 16.1

Advancement of knowledge............................................................ 47.3 51.1 51.2 3.7 3.8 4.0

Advancement of research............................................................ NA 7.8 9.1 3.7 3.8 4.0

GUF............................................................ NA 43.3 42.1 NA NA NA

Civil space............................................................ 68 6.4 7.5 5.5 7.3 10.9

Defense............................................................ 4.1 5.1 6.5 67.5 65.5 55.3

All others............................................................5.7 4.2 4.6 5.0 4.5 3.6

Table A-8. Distribution of government R&D funding by objective: selected years

Japan United States

[Percent]

SOURCES: Government of Japan, National Institute of Science and Technology Policy, Science and Technology Agency, Science 

 and Technology Indicators: 1994 , NISTEP Report No. 37 (Tokyo, 1995); Science Resources Studies Division, National 

 Science Foundation, National Patterns of R&D Resources: 1996, NSF 96-333 (Arlington, VA: NSF, 1996).

KEY: NA = not available

66
Table A-9. Distribution of Japanese Government R&D budget among key Japanese ministeries 

and agencies: selected years

Ministry/agency 1990 1994 1997 1/ 1990 1994 1997

[Million of constant 1987 dollars] [Percent]

Total 2/............................................................... $8,711 $9,977 $12,779 100% 100% 100%

Ministry of Education, Science,

and Culture............................................................ 4,056 4,896 5,508 47 49 43

Science and Technology Agency............................................................ 2,244 2,560 3,102 26 26 24

Ministry of International Trade 

and Industry............................................................ 1,141 1,200 1,974 13 12 15

Ministry of Agriculture, 

Forestry, and Fisheries............................................................ 318 350 416 4 4 3

Defense Agency............................................................ 473 596 744 5 6 6

Ministry of Health and Welfare............................................................ 232 296 379 3 3 3

All others............................................................ 247 79 639 3 1 5

SOURCES: Government of Japan, National Institute of Science and Technology Policy, Science and Technology 

 Agency (STA), Science and Technology Indicators: 1994, MISTEP Report No. 37 (Tokyo, 1996) and 

 STA, "Science and Technology Budget of the Government for FY1997" (Draft).

1/ 1997 approved government budget for science and technology.

2/ Does not include local government funding of R&D.

67
Page 1 of 2

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Industry

Total business enterprise.............................................................. $65,699 $70,021 $74,883 $82,153 $89,265 $90,614 $92,155 $93,418 $94,060 $96,846 $99,449 $98,519 95,000

Total manufacturing.............................................................. 63,282 67,070 71,054 76,766 82,150 82,931 84,311 83,295 81,128 78,494 75,260 74,588 70,538

Food, beverages, and tobacco.............................................................. 809 930 949 1,188 1,204 1,327 1,206 1,176 1,172 1,253 1,086 1,146 1,122

Textiles, apparel, and leather.............................................................. 147 162 172 199 231 254 243 249 239 263 253 241 236

Wood products and furniture.............................................................. 204 190 174 157 156 149 137 165 181 217 188 216 211

Paper, paper products, and printing.............................................................. 718 676 634 651 610 558 604 754 828 1,063 1,106 1,089 1,066

Chemicals, except drugs and medicines.............................................................. 4,489 4,909 4,901 5,061 5,358 5,350 5,535 5,616 5,771 6,182 6,452 6,151 6,022

Drugs and medicines.............................................................. 2,644 2,975 3,343 3,646 3,692 3,774 4,100 5,041 5,353 5,549 6,004 6,571 6,432

Petroleum refineries and products.............................................................. 2,455 2,556 2,591 2,539 2,352 2,082 1,897 1,923 2,009 2,035 2,124 1,883 1,844

Rubber and plastic products.............................................................. 982 921 890 865 716 744 607 720 813 1,021 1,107 1,158 1,134

Non-metallic mineral products.............................................................. 583 612 716 805 884 980 995 706 585 545 433 446 436

Basic metal industries.............................................................. 1,113 1,178 1,245 787 784 829 730 613 632 652 607 432 423

Metal products.............................................................. 791 746 804 925 878 923 783 848 833 829 828 841 823

Non-electrical machinery.............................................................. 3,065 2,878 2,744 2,641 2,537 2,472 2,428 2,744 2,616 2,430 3,023 2,923 2,862

Office and computing machinery.............................................................. 5,581 6,766 7,613 8,896 10,408 10,105 9,347 9,935 10,717 10,320 9,541 9,433 9,234

Electrical machinery, except 

communication equipment .............................................................. 4,408 3,412 3,230 2,030 1,353 1,290 1,239 1,064 960 925 892 864 846

Radio, TV, and communication 

equipment.............................................................. 8,690 9,629 11,319 13,103 13,940 14,166 14,609 12,541 11,315 10,902 10,515 10,187 9,972

Shipbuilding and repairing.............................................................. 0 0 0 0 0 0 0 0 0 0 0 0 0

Motor vehicles.............................................................. 6,094 5,727 6,101 6,652 7,401 10,042 9,279 9,711 10,157 9,052 8,833 8,208 8,036

Aircraft.............................................................. 15,176 17,253 17,676 20,712 23,557 21,719 24,458 23,272 20,582 18,213 14,140 14,192 13,893

Other transport equipment.............................................................. 186 238 437 438 393 508 509 502 468 415 350 341 334

Professional goods.............................................................. 4,583 4,692 4,894 5,054 5,312 5,265 5,222 5,325 5,523 6,227 7,402 7,892 7,726

Other manufacturing, nec.............................................................. 563 619 621 416 382 394 383 390 373 402 375 374 366

Total services..............................................................2,417 2,951 3,829 5,387 7,115 7,683 7,844 10,123 12,932 18,352 24,189 23,931 24,462

Electricity, gas, and water.............................................................. NA NA NA NA NA NA NA NA NA NA NA 242 236

Construction..............................................................NA NA NA NA NA NA NA NA NA NA NA NA NA

Transport and storage.............................................................. NA NA NA NA NA NA NA NA NA NA NA NA NA

Communications.............................................................. NA NA NA NA NA NA NA NA NA NA NA 4,391 4,299

Commercial and engineering services.............................................................. NA NA NA NA NA NA NA NA NA NA NA NA NA

Other services.............................................................. NA NA NA NA NA NA NA NA NA NA NA NA NA

See explanatory information and SOURCE at end of table.

Table A-10. R&D performance by industry

[Millions of constant 1987 dollars]

United States
Page 2 of 2

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Industry

Total business enterprise.............................................................. 18,748 20,535 22,851 25,156 28,657 29,002 30,775 34,104 38,180 42,026 43,318 41,851 39,252

Total manufacturing.............................................................. 17,916 19,695 21,882 24,088 27,606 27,942 29,698 32,847 36,789 40,364 41,694 40,063 37,470

Food, beverages, and tobacco.............................................................. 515 580 600 652 703 759 916 923 1,017 1,068 1,003 1,015 1,089

Textiles, apparel, and leather.............................................................. 333 264 256 291 302 297 315 344 377 400 408 519 403

Wood products and furniture.............................................................. 64 66 103 65 59 74 76 84 139 112 138 120 134

Paper, paper products, and printing.............................................................. 107 141 186 210 245 239 261 322 367 391 407 327 315

Chemicals, except drugs and medicines.............................................................. 2,060 2,276 2,429 2,730 2,868 3,040 3,389 3,656 3,978 4,085 4,258 4,208 4,042

Drugs and medicines.............................................................. 1,128 1,219 1,453 1,446 1,649 1,621 1,804 1,966 2,114 2,340 2,624 2,816 2,728

Petroleum refineries and products.............................................................. 210 222 250 274 329 325 333 354 390 417 394 394 355

Rubber and plastic products.............................................................. 499 530 549 649 701 712 811 909 1,078 1,041 1,138 1,092 1,033

Non-metallic mineral products.............................................................. 434 476 568 643 841 889 843 938 1,027 976 1,155 938 860

Basic metal industries.............................................................. 1,226 1,296 1,303 1,370 1,645 1,732 1,657 1,748 1,832 2,015 2,263 2,004 1,884

Metal products.............................................................. 334 330 415 409 495 449 449 423 507 588 610 555 522

Non-electrical machinery.............................................................. 1,707 1,851 1,984 2,158 2,415 2,398 2,522 2,671 3,125 3,635 3,732 3,486 3,475

Office and computing machinery.............................................................. 717 829 1,008 1,488 1,670 1,763 2,212 2,847 3,769 4,060 4,144 3,607 3,477

Electrical machinery, except 

communication equipment.............................................................. 1,766 1,961 2,293 2,636 2,973 2,936 3,155 3,504 4,018 4,518 4,491 4,235 4,208

Radio, TV, and communication 

equipment.............................................................. 3,097 3,707 4,209 4,493 5,433 5,260 5,554 6,065 6,138 6,584 6,956 6,984 6,145

Shipbuilding and repairing.............................................................. 42 47 58 44 53 39 42 45 54 59 65 84 79

Motor vehicles.............................................................. 2,583 2,754 2,884 3,262 3,670 3,787 3,753 4,348 4,970 5,798 5,620 5,546 4,633

Aircraft.............................................................. 127 139 221 112 184 256 280 231 287 361 472 289 305

Other transport equipment.............................................................. 138 138 131 120 173 175 99 72 78 78 77 75 76

Professional goods.............................................................. 655 682 796 820 973 944 968 1,128 1,234 1,523 1,396 1,432 1,394

Other manufacturing, nec.............................................................. 174 187 187 218 222 249 259 268 288 315 344 339 314

Total services.............................................................. 740 739 862 955 926 939 956 1,087 1,256 1,477 1,419 1,629 1,625

Electricity, gas, and water.............................................................. 272 247 284 316 306 329 308 347 349 441 403 481 477

Construction..............................................................376 410 508 569 535 574 608 701 859 964 910 1,066 1,076

Transport and storage.............................................................. 92 91 78 76 90 33 40 36 45 71 106 81 73

Communications.............................................................. NA NA NA NA NA NA NA NA NA NA NA NA NA

Commercial and engineering services.............................................................. NA NA NA NA NA NA NA NA NA NA NA NA NA

Other services..............................................................7 NA NA NA NA NA NA NA NA NA NA NA NA

KEY: NA = not available

NOTE: Categories are taken from international Standard Industrial Classification, revision 2.

SOURCES: Organization for Economic Co-operation and Development (OECD), Structural Analysis Database for Industrial Analysis, Analytical Business Enterprise R&D (STAN/ANBERD) file 

 (Paris: OECD,1995); OECD, Main Science and Technology Indicators database (Paris, 1995).

Table A-10. R&D performance by industry

[Millions of constant 1987 dollars]

Japan
Japanese U.S. total U.S. companyYear industrial R&D industrial R&D supported R&D

1975.................................................. 1.2% 1.5% 1.0%

1976.................................................. 1.2 1.5 1.0

1977.................................................. 1.2 1.5 1.0

1978.................................................. 1.1 1.5 1.0

1979.................................................. 1.2 1.5 1.0

1980.................................................. 1.3 1.6 1.1

1981.................................................. 1.4 1.7 1.2

1982.................................................. 1.5 1.9 1.3

1983.................................................. 1.7 1.9 1.3

1984.................................................. 1.8 2.0 1.4

1985.................................................. 1.9 2.1 1.4

1986.................................................. 1.9 2.1 1.4

1987.................................................. 1.9 2.0 1.4

1988.................................................. 2.0 2.0 1.4

1989.................................................. 2.2 1.9 1.4

1990.................................................. 2.2 2.0 1.5

1991.................................................. 2.2 2.0 1.6

1992.................................................. 2.1 2.0 1.6

1993.................................................. 2.0 1.9 1.5

1994.................................................. 1.9 1.8 1.5

1995.................................................. NA 1.8 1.5

NA = not available

Table A-11. Industrial R&D expenditures as a percent of GDP: 1975–95

[Percent]

SOURCES: For Japan, 1981–94 data: Organisation for Economic Co-operation and Development, 

 Main Science and Technology Indicators (MSTI), Paris, OECD, December 1996; for 

 earlier data for Japan, 1975–80, OECD/MSTI 1990, special tabulations; for the United 

 States, Science Resources Studies Division, National Science Foundation, 

 National Patterns of R&D Resources: 1996 , NSF 96-333 (Arlington, VA: NSF, 1996).

70
Industry Japan U.S.

Food, beverages, and tobacco............................................................ 2.8% 1.2%

Textiles, apparel, and leather............................................................ 1.0 0.2

Wood products and furniture............................................................ 0.3 0.2

Paper, paper products, and printing............................................................ 0.8 1.1

Chemicals, except drugs and medicines............................................................ 10.3 6.2

Drugs and medicines............................................................ 6.9 6.7

Petroleum refineries and products............................................................ 0.9 1.9

Rubber and plastic products............................................................ 26 1.2

Non-metallic mineral products............................................................ 22 0.5

Basic metal industries............................................................ 4.8 0.4

Metal products............................................................ 1.3 0.9

Non-electrical machinery............................................................ 8.9 3.0

Office and computing machinery............................................................ 8.9 9.6

Electrical machinery, except 

communication equipment............................................................ 107 0.9

Radio, TV, and communication equipment............................................................ 15.7 10.3

Shipbuilding and repairing............................................................0.2 0.0

Motor vehicles............................................................ 11.8 8.3

Aircraft...................................................................... 0.8 14.4

Other transport equipment............................................................0.2 0.3

Professional goods............................................................ 3.6 8.0

Other manufacturing, nec............................................................ 0.8 0.4

Total services............................................................ 4.1 24.3

Electricity, gas, and water............................................................ 1.2 0.2

Construction............................................................ 2.7 0.0

Transport and storage............................................................ 0.2 0.0

Communications............................................................ 0.0 4.5

Commercial and engineering services............................................................ 0.0 0.0

Other services............................................................ 0.0 0.0

Table A-12. Proportion of R&D expenditures, by industry: 1993

[Percent]

SOURCES: Organization for Economic Co-operation and Development (OECD), Structural 

 Analysis Database for Industrial Analysis, Analytical Business Enterprise 

 R&D (STAN/ANBERD) file (Paris, OECD, 1995).

71
Page 1 of 2

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Industry

Total manufacturing.................................................. 2.5% 2.9% 3.0% 3.1% 3.4% 3.5% 3.4% 3.2% 3.1% 3.1% 3.1% 3.1% 2.8%

Food, beverages, and tobacco.................................................. 0.2 0.3 0.3 0.3 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3

Textiles, apparel, and leather.................................................. 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Wood products and furniture.................................................. 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2

Paper, paper products, and printing.................................................. 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.3 0.3 0.4 0.4 0.4 0.5

Chemicals, except drugs and medicines.................................................. 1.6 1.9 1.8 1.8 1.9 1.9 1.8 1.7 1.8 1.9 2.0 1.9 2.3

Drugs and medicines..................................................9.5 10.2 10.6 11.4 11.0 10.4 10.6 12.0 11.9 11.8 11.5 11.9 13.2

Petroleum refineries and products.................................................. 0.9 10 1.2 1.2 1.2 1.6 1.5 1.5 1.5 1.3 1.6 1.5 1.5

Rubber and plastic products.................................................. 1.5 1.4 1.3 1.1 0.9 1.0 0.7 0.8 0.9 1.1 1.3 1.2 1.0

Non-metallic mineral products.................................................. 1.0 1.2 1.3 1.3 1.5 1.6 1.7 1.2 1.0 1.0 0.8 0.9 1.0

Basic metal industries.................................................. 06 1.0 1.0 0.6 0.7 0.8 0.6 0.4 0.4 0.5 0.5 0.4 0.5

Metal products.................................................. 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Non-electrical machinery.................................................. 1.5 1.7 1.8 1.6 1.6 1.6 1.5 1.6 1.5 1.4 1.9 1.9 1.6

Office and computing machinery.................................................. 12.4 13.7 14.3 14.2 17.1 18.6 17.3 17.1 19.4 20.2 21.0 19.8 8.1

Electrical machinery, except 

communication equipment.................................................. 7.8 7.1 6.5 3.5 2.3 2.2 1.7 1.3 1.2 1.3 1.3 1.3 1.0

Radio, TV, and communication equipment.................................................. 11.5 12.6 13.8 13.1 13.7 13.7 15.8 12.7 11.6 11.3 10.8 9.8 8.6

Shipbuilding and repairing.................................................. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Motor vehicles.................................................. 4.1 4.3 3.5 3.3 3.6 4.9 4.5 4.5 4.8 4.7 5.0 4.2 4.0

Aircraft.............................................................. 18.0 20.3 20.2 21.7 23.3 20.2 22.4 21.3 18.0 16.1 12.5 13.6 13.3

Professional goods.................................................. 4.4 4.6 4.8 4.4 4.9 4.7 4.9 4.9 5.1 5.7 6.9 7.4 7.8

Other manufacturing, nec.................................................. 1.6 1.8 1.9 1.3 1.3 1.3 1.2 1.1 1.0 1.1 1.1 1.1 1.1

See explanatory information and SOURCE at end of table.

[Percent]

Table A-13. R&D expenditures as a percent of net sales: 1981–93

United States

72
Page 2 of 2

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Industry Japan

Total manufacturing.................................................. 1.3% 1.5% 1.6% 1.7% 1.9% 2.1% 2.2% 2.3% 2.4% 2.5% 2.5% 2.5% 2.5%

Food, beverages, and tobacco.................................................. 0.4 0.4 0.4 0.4 0.4 0.5 0.6 0.6 0.6 0.7 0.6 0.6 0.7

Textiles, apparel, and leather.................................................. 0.5 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.6 0.6 0.8 0.7

Wood products and furniture.................................................. 0.2 0.2 0.3 0.2 0.2 0.2 0.2 0.2 0.4 0.3 0.4 0.3 0.4

Paper, paper products, and printing.................................................. 0.1 0.2 0.2 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.3 0.3

Chemicals, except drugs and medicines.................................................. 1.5 1.6 1.7 1.9 2.0 2.3 2.5 2.6 2.7 2.6 2.7 2.8 2.8

Drugs and medicines..................................................5.7 5.8 6.7 6.9 7.8 7.3 7.5 7.7 7.9 8.6 9.8 10.3 9.9

Petroleum refineries and products.................................................. 0.2 02 0.3 0.4 0.5 0.7 0.9 1.0 1.0 0.9 0.9 0.9 0.9

Rubber and plastic products.................................................. 1.0 1.0 1.0 1.1 1.1 1.2 1.3 1.4 1.5 1.4 1.5 1.5 1.5

Non-metallic mineral products.................................................. 1.0 1.1 1.4 1.5 2.0 2.2 2.1 2.2 2.3 2.1 2.4 2.1 2.0

Basic metal industries.................................................. 07 0.7 0.8 0.8 1.0 1.2 1.2 1.1 1.1 1.2 1.3 1.4 1.4

Metal products.................................................. 0.7 0.7 0.9 0.8 0.9 0.8 0.8 0.7 0.8 0.8 0.8 0.7 0.7

Non-electrical machinery.................................................. 1.5 1.7 2.0 2.0 2.2 2.3 2.7 2.4 2.5 2.6 2.6 2.7 3.0

Office and computing machinery.................................................. 3.4 3.6 3.5 4.2 4.3 4.6 5.5 6.5 7.7 7.6 7.3 6.8 7.1

Electrical machinery, except 

communication equipment.................................................. 3.1 3.4 3.7 3.8 4.0 3.9 4.0 4.1 4.3 4.6 4.2 4.2 4.6

Radio, TV, and communication equipment.................................................. 4.1 4.8 4.7 3.9 4.8 4.7 5.0 4.9 4.6 4.8 4.8 5.5 5.1

Shipbuilding and repairing.................................................. 0.3 0.3 0.4 0.3 0.4 0.4 0.6 0.6 0.7 0.6 0.6 0.7 0.7

Motor vehicles.................................................. 2.1 2.3 2.3 2.5 2.6 2.7 2.6 2.8 2.9 3.2 3.0 3.0 2.7

Aircraft.............................................................. 7.4 6.6 9.5 4.4 6.1 8.9 8.4 6.7 8.2 10.4 13.7 7.7 8.1

Other transport equipment.................................................. 3.1 3.6 3.5 3.3 4.9 5.2 3.0 2.1 2.0 1.8 1.8 1.5 1.8

Professional goods.................................................. 3.4 3.8 4.5 4.4 4.7 4.8 5.2 5.6 5.8 6.8 5.9 6.8 7.6

Other manufacturing, nec.................................................. 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.4

73

Table A-13. R&D expenditures as a percent of net sales: 1981–93

[Percent]

SOURCE: Organization for Economic Co-operation and Development (OECD), Structural Analysis Database for Industrial Analysis, Analytical Business Enterprise R&D (STANBERD) file 

 and Net sales file (Paris: OECD, 1996).
Year Japan United States

1975............................................................ 146,604 361,700

1976............................................................ 145,216 363,900

1977............................................................ 151,437 373,600

1978............................................................ 153,706 393,600

1979............................................................ 157,279 414,200

1980............................................................ 173,244 437,300

1981............................................................ 184,889 498,800

1982............................................................ 192,942 525,400

1983............................................................ 201,137 562,500

1984............................................................ 223,882 603,300

1985............................................................ 231,097 646,800

1986............................................................ 251,771 683,400

1987............................................................ 260,846 702,200

1988............................................................ 279,298 715,600

1989............................................................ 294,202 733,100

1990............................................................ 313,948 758,500

1991............................................................ 330,996 776,400

1992............................................................ 340,809 783,800

1993............................................................ 356,406 764,500

1994............................................................ 367,278 758,800

1995............................................................ 376,639 NA

KEY: NA = not available

Table A-14. Number of industrial scientists and engineers engaged in R&D: 

1975–95

SOURCES: For Japanese data 1975–94, Government of Japan, National 

 Institute of Science and Technology Policy, Science and 

 Technology Agency, Science and Technology Indicators: 1994, 

 NISTEP Report No. 37 (Tokyo, 1995); for 1995 data, Statistics 

 Bureau, Management and Coordination Agency, Report on the 

 Survey of Research and Development, 1995 ; for the U.S. data 

 for 1984–94, Science Resources Studies Division, National 

 Science Foundation, National Patterns of R&D Resources: 

 1996, (Arlington, VA); for prior years, NSF/SRS Research and 

 Development in Industry, annual series. 

NOTE: Japanese data include mainly regular researchers employed in 

 R&D in industry and a tiny fraction (0.4 percent) of external 

 non-regular workers. Assistant research workers and technicians

 are not included. U.S. data are full time equivalent (FTE) R&D 

 scientists and engineers in R&D performing companies.

74
Industry 1985 1990 1993 1985 1990 1993

All manufacturing, total...................................................................................... 468 577 622 430 470 520

Food...................................................................................... 225 230 235 80 80 90

Textiles...................................................................................... 213 280 337 50 60 70

Chemicals and allied products...................................................................................... 784 938 960 570 690 800

Industrial chemicals...................................................................................... 711 853 884 390 590 580

Drugs and medicines...................................................................................... 796 875 934 810 960 1,380

Petroleum and coal...................................................................................... 394 455 427 210 260 270

Rubber...................................................................................... 363 481 492 260 320 240

Ceramics...................................................................................... 355 372 450 200 240 210

Iron and steel...................................................................................... 177 247 262 110 70 90

Non-ferrous metals...................................................................................... 316 349 371 160 150 150

Fabricated metals...................................................................................... 260 255 268 NA 200 210

General machinery...................................................................................... 425 472 508 600 730 610

Electrical machinery...................................................................................... 767 978 1,018 NA

Electrical equipment...................................................................................... 647 770 794 530 660 750

Communications and electronic equipment...................................................................................... 836 1,094 1,140 620 890 NA

Motor vehicles...................................................................................... 331 458 517 280 430 540

Professional and scientific instruments...................................................................................... 664 831 877 NA 710 NA

Aircraft and missiles...................................................................................... NA NA NA 1,160 960 940

KEY: NA = not available

Table A-15. R&D scientists and engineers per 10,000 employees in manufacturing companies, by industry

Japan United States

SOURCES: Government of Japan, National Institute of Science and Technology Policy, Science and Technology 

 Agency, Science and Technology Indicators: 1994 , NISTEP Report No. 37 (Tokyo, 1995); and the National Science 

 Foundation, Science Resources Studies Division, Research and Development in Industry: 1993, NSF 96-304 

 (NSF: Arlington, VA,1996)

NOTES: Table uses industry field names as given in National Science Foundation, Science & Engineering Indicators, 1996. Japanese 

 data include mainly regular researchers employed in R&D in industry and a tiny fraction (0.4 percent) of external non-regular 

 workers. Assistant research workers and technicians are not included. U.S. data are full time equivalent (FTE) R&D 

 scientists and engineers in R&D performing companies.

75
1975 1976 1977 1978 1979 1980 1981 1982 1983 1984

Field

Total...................................................................... 313,072 326,167 339,819 356,981 374,887 378,666 386,057 382,466 369,069 372,247

Natural science 1/.................................................. 7,014 7,483 7,479 7,985 8,248 8,636 8,651 8,710 8,575 9,054

Mathematics.................................................. 2,490 2,529 2,755 2,703 2,829 2,918 3,152 3,045 3,148 3,180

Agricultural science.................................................. 9,480 9,965 10,455 10,937 12,794 11,182 11,555 11,016 10,658 11,189

Social science.................................................. 134,645 139,258 143,416 151,519 158,023 158,394 160,520 159,450 151,996 151,626

Engineering/computer sci.................................................. 66,512 68,126 70,431 72,466 75,409 74,737 76,370 74,774 70,824 71,640

Other.................................................. 92,931 98,806 105,283 111,371 117,584 122,799 125,809 125,471 123,868 125,558

Total.................................................. 931,663 934,443 928,228 930,197 931,340 940,251 946,877 964,043 980,679 986,345

Natural science 1/.................................................. 70,578 73,258 72,980 71,334 68,489 66,446 63,896 62,619 60,145 59,172

Mathematics.................................................. 18,346 16,085 14,303 12,701 11,901 11,473 11,183 11,708 12,557 13,342

Computer science.................................................. 5,039 5,664 6,426 7,224 8,769 11,213 15,223 20,431 24,682 32,435

Agricultural science.................................................. 16,531 18,289 20,199 21,027 21,631 21,121 20,166 19,235 19,170 17,303

Social science.................................................. 163,147 157,405 148,533 144,018 138,903 135,632 132,607 133,565 128,651 126,078

Engineering.................................................. 39,824 38,790 41,357 47,251 53,469 58,810 63,717 67,460 72,670 76,153

Other..................................................618,198 624,952 624,430 626,642 628,178 635,556 640,085 649,025 662,804 661,862

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Total...................................................................... 373,302 376,260 382,655 382,828 376,688 400,103 428,079 437,878 445,774 461,898

Natural science 1/.................................................. 9,166 9,435 9,817 9,895 9,900 9,866 10,452 10,386 10,757 11,470

Mathematics.................................................. 3,532 3,379 3,572 3,493 3,395 3,554 3,765 3,790 4,221 4,574

Agricultural science.................................................. 10,928 10,991 11,266 10,584 10,252 11,733 12,282 12,284 13,021 13,361

Social science.................................................. 151,072 151,056 150,956 150,819 147,087 157,477 170,721 177,240 179,338 186,580

Engineering/computer sci.................................................. 72,560 74,516 77,077 77,503 77,009 81,355 87,397 88,385 88,406 91,184

Other..................................................126,044 126,883 129,967 130,534 129,045 136,118 143,462 145,793 150,031 154,739

Total.................................................. 990,880 1,000,352 1,000,532 1,006,033 1,030,171 1,062,151 1,107,997 1,150,072 1,179,276 1,183,141

Natural science 1/.................................................. 59,550 57,759 52,642 50,403 49,301 54,241 56,757 62,837 68,880 70,844

Mathematics.................................................. 15,267 16,388 16,626 16,122 15,439 14,674 14,784 14,931 14,853 14,631

Computer science.................................................. 39,121 42,195 39,927 34,896 30,963 27,695 25,410 24,958 24,580 24,553

Agricultural science.................................................. 15,879 14,740 16,082 14,331 13,559 8,411 8,432 8,432 8,432 12,947

Social science.................................................. 125,033 127,558 131,935 136,717 146,737 159,368 170,105 182,166 186,585 187,273

Engineering.................................................. 77,572 76,820 74,425 70,154 66,947 64,705 62,187 61,941 62,705 63,012

Other..................................................658,458 664,892 668,895 683,410 707,225 733,057 770,322 794,807 813,241 809,880

1/ Natural sciences include physical, biological, earth, atmospheric, and oceanographic sciences.

2/ In Japanese data, engineering includes computer science.

SOURCES: Government of Japan, Ministry of Education, Science and Culture, Basic Education Survey, 1993; and the National Science Foundation, SRS, Science and Engineering 

 Degrees 1966–94, NSF 96-321 (Arlington, VA, 1996).

United States

Japan

76

Table A-16. First university degrees in science and engineering, by field: 1975–94

Japan

United States
Field Number of degrees Percent of population Number of degrees Percent of population

Total....................................................... 461,898 23.3% 1,183,141 32.1%

Natural science....................................................... 16,044 0.8 110,028 3.0

Agriculture....................................................... 13,361 0.7 12,947 0.4

Social science....................................................... 186,580 9.6 187,273 5.1

Engineering....................................................... 91,184 4.8 63,012 1.7

Other....................................................... 154,729 7.9 809,881 4.2

NOTE: Differences in taxonomies: social science degrees in Japan combine economics, business administration, and 

 marketing within economics; law is included within political sciences; computer science is included within 

 engineering.

SOURCES: Government of Japan, Ministry of Education, Science and Culture, Basic Education Survey, 1993; 

 and the National Science Foundation, SRS, Science and Engineering Degrees 1966–94, NSF 96-321 

 (NSF: Arlington, VA, 1996).

Japan United States

Table A-17. Number of first-university degrees by fields and as a percent of the 

22-year-old population: 1994

77
Page 1 of 2

1975 1976 1977 1978 1979 1980 1981 1982 1983 1984

Field

Total.................................................. 1,652,003 1,702,235 1,747,057 1,769,331 1,754,343 1,741,504 1,725,814 1,716,956 1,729,632 1,734,080

Total science & engineering.................................................. 1,131,848 1,197,566 1,222,648 1,229,842 1,207,301 1,193,968 1,175,983 1,163,823 1,169,720 1,171,006

Natural sciences.................................................. 37,495 38,455 39,704 40,781 40,484 40,381 40,701 40,702 42,047 42,560

Mathematics.................................................. 12,731 13,088 13,301 13,743 14,094 14,198 14,332 14,486 15,550 15,886

Agricultural sciences.................................................. 47,296 48,050 48,678 54,684 48,239 48,377 48,029 47,947 48,391 48,503

Social sciences.................................................. 694,987 752,868 769,934 767,401 757,552 748,130 733,694 722,029 719,430 716,188

Engineering/comp. sci................................................... 339,339 345,105 351,031 353,233 346,932 342,882 339,227 338,659 344,302 347,869

Other.................................................. 520,155 504,669 524,409 539,489 547,042 547,536 549,831 553,133 559,912 563,074

Total.................................................. 48,464 51,856 53,251 53,267 53,244 53,992 55,603 58,642 62,000 65,692

Total science & engineering.................................................. 32,198 34,907 35,791 35,084 34,061 33,853 34,084 36,117 38,294 40,452

Natural sciences.................................................. 4,839 5,302 5,428 5,513 5,468 5,482 5,460 5,518 5,596 5,831

Mathematics.................................................. 742 794 823 815 834 848 864 925 993 1,015

Agricultural sciences.................................................. 3,699 4,077 4,064 3,878 3,786 3,641 3,712 4,588 5,529 5,834

Social sciences.................................................. 6,882 6,882 6,924 6,926 7,025 6,480 6,249 6,335 6,490 6,681

Engineering/comp. sci................................................... 16,036 17,852 18,552 17,952 16,948 17,402 17,799 18,751 19,686 21,091

Other.................................................. 16,266 16,949 17,460 18,183 19,183 20,139 21,519 22,525 23,706 25,240

Total.................................................. 7,449,816 7,362,827 7,488,772 7,478,376 7,599,805 7,826,514 7,915,285 7,913,659 7,989,679 7,939,920

Total science & engineering.................................................. NA 277,679 248,420 334,080 366,299 397,344 420,402 435,330 441,205 429,499

Natural sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Math/comp. sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Agricultural sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Social sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Engineering.................................................. NA 277,679 248,420 334,080 366,299 397,344 420,402 435,330 441,205 429,499

Other.................................................. NA NA NA NA NA NA NA NA NA NA

Total.................................................. 1,267,537 1,338,586 1,323,904 1,324,587 1,314,892 1,351,268 1,349,575 1,329,644 1,347,973 1,353,554

Total science & engineering.................................................. 300,879 304,172 311,814 309,038 319,178 325,706 332,106 338,896 347,014 349,875

Natural sciences.................................................. 85,176 87,597 101,224 101,051 100,878 101,040 100,612 101,755 102,968 103,547

Math/comp. sciences.................................................. 25,333 25,719 25,160 25,936 26,736 28,912 32,339 36,990 40,713 42,985

Agricultural sciences..................................................

Social sciences.................................................. 122,010 124,085 116,750 118,290 119,851 121,465 119,621 116,485 112,236 110,647

Engineering.................................................. 68,360 66,771 68,680 63,761 71,713 74,289 79,534 83,666 91,097 92,696

Other.................................................. 966,658 1,034,414 1,012,090 1,015,549 995,714 1,025,562 1,017,469 990,748 1,000,959 1,003,679

See explanatory information and SOURCE at end of table.

Table A-18. Undergraduate and graduate enrollments in science and engineering: 1975–94

Japan

Undergraduate Enrollment

Graduate Enrollment

Graduate Enrollment

United States

Undergraduate Enrollment

78
Page 2 of 2

Field 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Total.................................................. 1,734,392 1,758,635 1,806,024 1,861,306 1,929,137 1,988,572 2,052,335 2,127,713 2,209,028 2,281,774

Total science & engineering.................................................. 1,170,289 1,187,859 1,221,977 1,262,136 1,311,319 1,311,526 1,356,454 1,407,058 1,463,211 1,512,787

Natural sciences.................................................. 43,700 44,088 45,314 45,828 46,856 48,581 50,075 52,587 55,312 57,578

Mathematics.................................................. 15,978 16,218 15,762 16,104 17,141 18,197 19,298 20,513 21,424 22,441

Agricultural sciences.................................................. 48,661 49,381 50,167 51,947 54,680 66,777 67,900 69,688 71,000 71,745

Social sciences.................................................. 712,742 722,984 746,637 774,857 808,454 787,325 816,909 848,301 883,568 915,238

Engineering/comp. sci................................................... 349,208 355,188 364,097 373,400 384,188 390,646 402,272 415,969 431,907 445,785

Other.................................................. 564,103 570,776 584,047 599,170 617,818 677,046 695,881 720,655 809,717 768,987

Total.................................................. 69,688 74,272 78,914 82,476 85,263 90,238 98,650 109,108 122,360 138,752

Total science & engineering.................................................. 42,940 45,921 49,435 51,950 53,517 57,325 62,899 70,864 80,239 91,181

Natural sciences.................................................. 6,042 6,446 6,935 7,462 7,915 8,299 8,945 9,679 10,972 12,159

Mathematics.................................................. 1,028 1,060 1,131 1,182 1,232 1,252 1,377 1,553 1,858 2,374

Agricultural sciences.................................................. 5,989 6,256 6,790 6,238 5,403 6,040 5,958 7,366 8,431 9,432

Social sciences.................................................. 6,810 7,119 7,521 7,901 8,331 9,020 10,054 11,238 12,589 14,676

Engineering/comp. sci................................................... 23,071 25,040 27,058 29,167 30,636 32,714 36,565 41,028 46,389 52,540

Other.................................................. 26,748 28,351 29,479 30,526 31,746 32,913 35,751 38,244 42,121 47,571

Total.................................................. 7,956,065 8,069,364 8,185,221 8,361,683 8,549,853 8,725,465 8,936,087 8,997,921 8,738,936 8,727,334

Total science & engineering.................................................. 420,864 407,657 392,198 385,412 378,277 380,287 379,977 382,525 375,944 367,298

Natural sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Math/comp. sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Agricultural sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Social sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Engineering.................................................. 420,864 407,657 392,198 385,412 378,277 380,287 379,977 382,525 375,944 367,298

Other.................................................. NA NA NA NA NA NA NA NA NA NA

Total.................................................. 1,384,862 1,444,369 1,461,239 1,481,582 1,527,990 1,583,389 1,648,952 1,679,644 1,699,292 1,734,371

Total science & engineering.................................................. 358,201 368,212 373,425 375,579 383,227 397,866 413,559 431,444 437,808 433,152

Natural sciences.................................................. 104,070 105,541 104,974 105,580 107,348 109,472 112,643 116,879 119,769 121,087

Math/comp. sciences.................................................. 47,341 49,316 50,575 51,323 51,766 54,165 54,668 56,700 56,511 53,609

Agricultural sciences.................................................. NA NA NA NA NA NA NA NA NA NA

Social sciences.................................................. 110,808 111,499 113,939 115,732 120,069 126,607 132,606 139,748 144,666 144,591

Engineering.................................................. 95,982 101,856 103,937 102,944 104,044 107,622 113,642 118,117 116,862 113,865

Other.................................................. 1,026,661 1,076,157 1,087,814 1,106,003 1,144,763 1,185,523 1,235,393 1,248,200 1,261,484 1,301,219

KEY: NA = not available

NOTES: Natural sciences include physical, biological, earth, atmospheric, and oceanographic sciences. In U.S. undergraduate programs, only engineering students declare their major as they enter 

 the university. At the graduate level, agricultural sciences are included in natural sciences.

SOURCES: NSF/SRS, Selected Data on Graduate Students and Postdoctorates in Science and Engineering, Fall 1994, NSF 95-316 (Arlington, VA, 1995); Engineering Workforce Commission, 

 American Association of Engineering Societies, Engineering and Technology Enrollments, Fall 1979–94.

Japan

Undergraduate Enrollment

Table A-18. Undergraduate and graduate enrollments in science and engineering: 1975–94

79

Undergraduate Enrollment

Graduate Enrollment

Graduate Enrollment

United States
1975 1976 1977 1978 1979 1980 1981 1982 1983 1984

Field

Total..................................................13,505 13,349 14,900 15,723 15,846 15,258 15,320 15,855 16,733 18,493

Natural sciences 1/.................................................. 1,150 1,284 1,366 1,396 1,445 1,441 1,434 1,510 1,581 1,642

Mathematics.................................................. 232 188 228 229 221 208 231 206 232 268

Agricultural sciences.................................................. 996 992 1,138 1,217 1,136 1,119 1,064 1,020 1,162 1,925

Social sciences.................................................. 1,778 1,727 1,663 1,740 1,713 1,689 1,660 1,510 1,519 1,599

Engineering/comp. sci................................................... 6,149 5,882 7,034 7,764 7,693 7,214 7,036 7,427 7,776 8,377

Other.................................................. 3,200 3,276 3,471 3,377 3,638 3,587 3,895 4,182 4,463 4,682

Total.................................................. 293,651 313,001 318,241 312,816 302,075 299,095 296,798 296,580 290,931 285,462

Natural sciences 1/.................................................. 12,392 12,082 12,454 12,396 12,306 11,737 11,257 11,434 10,985 10,969

Math/comp. sci................................................... 6,637 6,466 6,496 6,421 6,101 6,515 6,787 7,666 8,160 8,939

Agricultural sciences.................................................. 2,439 2,602 2,906 3,150 3,137 3,095 3,092 3,268 3,395 3,262

Social sciences.................................................. 26,563 27,812 29,529 29,217 27,403 26,799 26,779 26,643 26,290 25,249

Engineering.................................................. 15,167 16,045 16,012 16,080 15,279 15,943 16,451 17,557 18,886 20,145

Other.................................................. 226,861 244,322 246,823 241,215 233,495 230,670 228,018 225,421 218,521 212,288

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Total..................................................19,315 21,021 22,200 23,779 25,250 25,804 26,815 29,193 32,847 36,581

Natural sciences 1/.................................................. 1,721 1,745 1,904 2,072 2,246 2,126 2,528 2,667 2,872 3,091

Mathematics.................................................. 271 274 309 305 352 379 385 400 455 541

Agricultural sciences.................................................. 2,078 2,172 2,159 2,300 2,505 1,606 1,596 1,763 2,072 2,297

Social sciences.................................................. 1,715 1,740 1,831 1,947 2,115 2,291 2,473 2,866 3,250 3,510

Engineering/comp. sci................................................... 8,692 9,704 10,495 11,220 12,024 12,865 13,254 14,451 16,364 18,096

Other.................................................. 4,838 5,386 5,502 5,935 6,008 6,537 6,579 7,046 7,834 9,046

Total..................................................287,213 289,829 290,532 300,091 311,050 324,947 338,498 354,207 370,973 389,008

Natural sciences 1/.................................................. 10,859 10,935 10,624 10,438 10,648 10,294 10,082 10,195 10,202 10,957

Math/comp. sci................................................... 9,989 11,241 11,808 12,600 12,829 13,327 12,956 13,320 14,100 14,350

Agricultural sciences.................................................. 3,113 2,975 2,776 2,746 2,570 2,634 2,600 3,037 3,272 3,410

Social sciences.................................................. 25,629 25,584 25,325 25,145 26,635 27,538 28,717 29,537 31,187 33,977

Engineering.................................................. 20,972 21,096 22,070 22,726 23,743 23,995 24,013 25,018 27,664 28,717

Other.................................................. 212,128 213,717 213,381 221,924 230,269 243,351 260,130 273,100 284,548 297,597

1/ Natural sciences include physical, biological, earth, atmospheric, and oceanographic sciences.

NOTE: In Japanese data, computer science degrees are included in engineering.

SOURCES: Government of Japan, Ministry of Education, Science and Culture, Basic Education Survey, 1993; and the National Science Foundation, SRS, Science and Engineering 

 Degrees 1966–94, NSF 96-321 (Arlington, VA, 1996).

80

Japan

United States

Table A-19. Masters degrees in science and engineering, by field: 1975–94

Japan

United States
Table A-20. Doctoral degrees in science and engineering, by field: 1975–94

1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Japan

Type and field

Total.................................................. 4,592 5,138 5,322 5,648 5,812 6,269 6,599 6,810 7,233 7,477 7,978 8,533 9,157 9,602 10,036 10,633 10,885 11,576 10,919 11,367

Natural sciences 1/.................................................. 676 717 843 782 814 822 791 762 774 807 860 820 837 881 876 835 892 1,009 934 1,081

Mathematics........................................

Agricultural sciences........................................ 381 490 518 442 430 527 529 521 515 614 697 646 715 746 734 719 870 824 816 952

Social sciences........................................ 84 85 88 88 76 76 76 93 97 90 127 136 149 167 177 183 200 243 249 278

Engineering/comp. sci. 2/.................................................. 986 1,079 1,043 1,166 1,195 1,186 1,236 1,309 1,290 1,291 1,404 1,493 1,547 1,717 1,774 1,967 2,094 2,362 2,278 2,501

Other........................................ 2,465 2,767 2,830 3,170 3,297 3,658 3,967 4,125 4,557 4,675 4,890 5,438 5,909 6,091 6,475 6,929 6,829 7,138 6,458 6,555

Total.................................................. 1,658 1,814 1,859 1,974 2,154 2,290 2,424 2,318 2,401 2,725 3,004 3,252 3,608 3,949 4,349 4,548 4,779 5,134 4,477 4,925

Natural sciences 1/.................................................. 354 388 441 425 469 457 433 395 397 459 497 479 464 518 531 522 586 638 563 710

Mathematics........................................

Agricultural sciences........................................ 135 160 187 181 165 193 191 191 192 193 237 198 274 322 304 337 385 376 368 504

Social sciences........................................ 29 24 24 25 22 20 27 34 25 27 34 37 41 42 52 73 67 90 96 125

Engineering/comp. sci. 2/.................................................. 459 490 455 523 545 523 541 563 489 447 480 505 621 788 792 882 983 1,184 1,100 1,323

Other........................................ 681 752 752 820 953 1,097 1,232 1,139 1,298 1,599 1,756 2,033 2,208 2,279 2,670 2,734 2,758 2,846 2,166 2,263

Total........................................ 2,934 3,324 3,463 3,674 3,658 3,979 4,175 4,492 4,832 4,752 4,974 5,281 5,549 5,653 5,687 6,085 6,106 6,442 6,442 6,442

Natural sciences 1/.................................................. 322 329 402 357 345 365 358 367 377 348 363 341 373 363 345 313 306 371 371 371

Mathematics........................................

Agricultural sciences........................................ 246 330 331 261 265 334 338 330 323 421 460 448 441 424 430 382 485 448 448 448

Social sciences........................................ 55 61 64 63 54 56 49 59 72 63 93 99 108 125 125 110 133 153 153 153

Engineering/comp. sci. 2/.................................................. 527 589 588 643 650 663 695 746 801 844 924 988 926 929 982 1,085 1,111 1,178 1,178 1,178

Other........................................ 1,784 2,015 2,078 2,350 2,344 2,561 2,735 2,986 3,259 3,076 3,134 3,405 3,701 3,812 3,805 4,195 4,071 4,292 4,292 4,292

Total........................................ 32,952 32,946 31,716 30,875 31,239 31,020 31,356 31,111 31,282 31,337 31,298 31,899 32,367 33,499 34,324 36,068 37,517 38,853 39,754 41,011

Natural sciences 1/.................................................. 8,103 7,863 7,676 7,601 7,817 7,864 7,995 8,195 8,195 8,336 7,326 7,486 7,679 8,157 8,099 8,589 9,086 9,372 9,562 9,996

Math/comp. sci. 2/........................................ 1,147 1,003 964 959 979 962 960 940 987 993 998 1,128 1,190 1,264 1,471 1,597 1,839 1,927 2,024 2,022

Agricultural sciences........................................ 905 788 782 853 855 912 982 951 1,015 997 1,111 998 977 1,015 1,086 1,176 1,074 1,063 969 1,078

Social sciences........................................ 6,538 6,768 6,720 6,668 6,582 6,470 6,774 6,494 6,672 6,506 6,335 6,450 6,337 6,310 6,532 6,614 6,806 6,873 7,190 7,289

Engineering.................................................. 3,011 2,838 2,648 2,425 2,494 2,479 2,528 2,646 2,781 2,913 3,166 3,376 3,712 4,187 4,543 4,894 5,215 5,439 5,696 5,822

Other........................................13,248 13,686 12,926 12,369 12,512 12,333 12,117 11,885 11,632 11,592 12,362 12,461 12,472 12,566 12,593 13,198 13,497 14,179 14,313 14,800

1/ Natural sciences include physical, biological, earth, atmospheric, and oceanographic sciences.

2/ In Japanese higher education data, computer science is included in engineering.

NOTE: Data for total and Ronbun "thesis" doctorates are estimated for 1993–94. Data for university-based doctoral degrees are taken from the Monbusho published survey of education.

SOURCES: Government of Japan, Ministry of Education, Science and Culture, unpublished tabulations, 1996; and National Science Foundation, Science Resources Studies Division,

 Selected Data on Science and Engineering Doctorate Awards: 1995 , NSF 96-303 (NSF: Arlington, VA, 1996).

All earned doctoral degrees—university-based and ronbun "thesis" doctorates

81

United States

Ronbun "thesis" doctoral degrees

University based doctoral degrees
Field

[Number] [Percent] [Number] [Percent]

Total............................................................................ 11,563 0.66% 41,011 1.08%

Natural sciences & engineering total......................................... 4,534 0.26 18,922 0.50

Natural sciences............................................................. 1,081 0.06 12,018 0.32

Agricultural sciences..................................................... 952 0.05 1,078 0.03

Social sciences...................................................... 278 0.02 7,289 0.19

Engineering........................................................... 2,501 0.14 5,826 0.15

Other................................................................... 6,751 0.39 14,800 0.39

SOURCES: Government of Japan, Monbusho, Annual Survey of Education; for United States, National Science 

 Foundation, Science Resources Studies Division, Selected Data on Science and Engineering 

 Doctorate Awards: 1995, NSF 96-303 (NSF: Arlington, VA, 1996).

Table A-21. Doctoral degrees by field as a percent of the 29-year-old population: 1994

Japan United States

82
Field Japan United States

Total................................................... 100.0% 100.0%

Natural sciences....................................... 9.4 35.0

Math/computer sciences 1/.......................... N/A 3.0

Agricultural........................... 4.3 7.8

Social sciences....................................... 24.0 6.2

Engineering....................................... 22.4 15.8

Medical....................................... 25.0 26.5

Other....................................... 14.9 5.5

1/ In Japanese data, mathematics is included in natural sciences, computer 

 science in engineering.

KEY: NA = not available

NOTES: In Japan, R&D expenditures include faculty salaries; all university 

 and junior college teachers are regarded as researchers. The high 

 proportion of resources in the social sciences reflects the inclusion 

 of the salaries of large numbers of social science faculty. Natural 

 sciences include physical, biological, earth, atmospheric, and 

 oceanographic sciences. Social sciences include psychology.

SOURCES: Government of Japan, Management and Coordination Agency, 

 Report on the Survey of Research and Development, 1995; and 

 National Science Foundation, Academic Science and Engineering 

 R&D Expenditures, 1993, NSF 95-332 (Arlington, VA, 1995).

Table A-22. Distribution of higher education R&D expenditures, 

by field: 1993

[Percent]

83
Page 1 of 2

1981 1983 1985 1987 1989 1991 1993

Field

All fields............................................................ 25,086 26,368 29,617 28,894 32,832 34,375 36,674

Clinical medicine............................................................ 5,908 6,730 7,861 8,408 9,559 10,269 11,163

Biomedical research............................................................ 3,429 3,776 4,339 4,556 5,175 5,442 5,803

Biology............................................................ 2,404 2,371 2,456 2,267 2,363 2,557 2,543

Chemistry............................................................ 5,926 5,571 5,887 5,744 5,907 6,173 6,117

Physics............................................................ 3,750 3,750 4,775 4,557 6,116 6,088 6,982

Earth and space sciences............................................................ 394 381 592 644 736 725 797

Engineering and technology............................................................ 2,827 3,290 3,213 2,460 2,580 2,777 2,976

Mathematics............................................................ 449 498 495 258 395 343 293

All fields............................................................ 132,279 132,415 137,771 134,497 140,833 142,333 140,588

Clinical medicine............................................................ 48,072 48,055 50,595 49,904 50,510 50,142 50,258

Biomedical research............................................................ 21,847 22,496 24,461 24,542 26,541 26,918 27,120

Biology............................................................ 14,740 14,216 13,083 12,231 12,726 12,862 11,304

Chemistry............................................................ 10,880 11,010 11,585 11,827 12,405 13,086 13,252

Physics............................................................ 13,053 13,021 15,903 16,078 17,649 18,077 16,912

Earth and space sciences............................................................ 7,257 6,862 7,663 7,797 7,770 8,138 8,522

Engineering and technology............................................................ 12,486 13,105 10,822 9,225 9,568 9,999 10,051

Mathematics............................................................ 3,943 3,648 3,659 2,893 3,664 3,111 3,170

See explanatory information and SOURCE at end of table.

84

Table A-23. Scientific and technical articles, by field: 1981–93

Japan

United States

Article publication year

[Number]

[Number]
Page 2 of 2

1981 1983 1985 1987 1989 1991 1993

Field

All fields............................................................6.8% 7.1% 7.6% 7.6% 8.1% 8.5% 8.8%

Clinical medicine............................................................ 5.1 5.6 6.3 6.7 7.3 7.9 8.5

Biomedical research............................................................ 6.2 6.6 6.7 7.1 7.5 7.9 8.4

Biology............................................................ 61 6.3 7.0 6.9 6.9 7.5 7.6

Chemistry............................................................ 10.9 10.3 10.7 10.8 10.5 10.9 10.5

Physics............................................................ 82 8.0 8.8 8.5 10.0 10.0 10.9

Earth and space sciences............................................................ 2.3 2.3 3.3 3.5 3.9 3.7 3.8

Engineering and technology............................................................ 9.2 10.3 11.5 10.1 10.1 10.1 10.3

Mathematics............................................................ 4.3 5.3 5.2 3.6 4.3 4.6 3.6

All fields............................................................ 35.9 35.4 35.3 35.6 34.9 35.1 33.6

Clinical medicine............................................................ 41.3 40.3 40.3 39.9 38.8 38.5 38.4

Biomedical research............................................................ 39.5 39.3 37.8 38.2 38.7 38.9 39.4

Biology............................................................ 376 37.6 37.5 37.3 37.2 37.6 33.7

Chemistry............................................................ 20.0 20.3 21.0 22.2 22.1 23.1 22.8

Physics............................................................ 286 27.8 29.4 30.1 28.7 29.8 26.5

Earth and space sciences............................................................ 42.7 41.6 43.0 42.6 41.5 41.7 40.6

Engineering and technology............................................................ 40.7 40.9 38.6 37.9 37.6 36.2 34.6

Mathematics............................................................ 38.2 38.5 38.3 40.7 39.9 42.1 38.9

SOURCES:

 special tabulation, 1995.

85

United States

[Percent]

Japan

Article publication year

[Percent]
Year Japan United States

1980......................................... 7,124 37,356

1981......................................... 8,388 39,223

1982......................................... 8,149 33,896

1983......................................... 8,793 32,871

1984......................................... 11,110 38,367

1985......................................... 12,746 39,555

1986......................................... 13,209 38,126

1987......................................... 16,557 43,518

1988......................................... 16,158 40,496

1989......................................... 20,168 50,185

1990......................................... 19,524 47,393

1991......................................... 21,027 51,183

1992......................................... 21,925 52,253

1993......................................... 22,292 53,236

SOURCE: National Science Board, Science and 

 Engineering Indicators, 1996 , NSB 96-21, 

 (Washington, D.C.: Government Printing 

 Office, 1996).

Year Japan United States

1977.......................................... 77.1 96.2

1978.......................................... 81.3 96.3

1979.......................................... 87.7 94.9

1980.......................................... 91.1 92.9

1981.......................................... 95.0 96.2

1982.......................................... 100.0 100.0

1983.......................................... 102.5 102.2

1984.......................................... 107.9 103.5

1985.......................................... 114.9 106.7

1986.......................................... 113.0 109.5

1987.......................................... 122.4 116.6

1988.......................................... 129.6 119.2

1989.......................................... 138.7 119.9

1990.......................................... 149.1 122.1

1991.......................................... 156.9 124.9

1992.......................................... 156.6 127.5

1993.......................................... 159.5 132.0

1994.......................................... 164.2 137.4

SOURCE: U.S. Department of Labor, Bureau of 

 Labor Statistics, September 1995.

in manufacturing: 1977–94

[Index 1982 = 100]

[Number]

 Table A-24. U.S. patents granted to Japanese

and U.S. inventors: 1980–93

Table A-25. Output per worker-hour 

86
Receipts and payments 1990 1993 1990 1993

[Billions of current yen] [Millions of current dollars 2/]

Receipts.................................... ¥373.90 ¥450.20 $3,362.00 $4,049.00

Payments.................................... 869.40 814.70 7,818.00 7,326.00

Balance.................................... (495.50) (364.50) (4,456.00) (3,277.00)

Ratio of receipts

to payments....................................0.43 0.55 0.43 0.55

Receipts.................................... 2,333.00 2,755.00

Payments.................................... 665.00 1,036.00

Balance.................................... (1,668.00) (1,719.00)

Ratio of receipts

to payments.................................... 3.51 2.66

1/ Technological know-how includes industrial processes, patents, and other proprietary 

 inventions and technologies.

2/ IMF rate yen to a dollar, 1990: ¥144.8; 1993: ¥111.20.

SOURCES: Government of Japan, Indicators of Science and Technology (1996); National 

 Science Foundation, Science Resources Studies Division, Science and 

 Engineering Indicators, 1996 , NSB 96-21, Arlington, VA.

[Millions of current dollars 2/]

United States

Japan

Table A-26. Value of internationally traded technological know-how receipts and 

payments: 1990–93 1/

......................................................

......................................................

......................................................

......................................................

87
Industry Payments Receipts Receipts/payments Payments Receipts Receipts/payments

All manufacturing, total............................................. ¥32,6901 ¥3,16241 0.97 ¥35,9601 ¥39,4144 1.10

Food.................................................................. 8,471 8,337 0.98 8,430 5,432 0.64

Textiles................................................................. 4,847 4,648 0.96 6,188 4,854 0.78

Chemicals and allied products............................................. 56,866 53,616 0.94 61,368 59,348 0.97

Industrial chemicals............................................. 23,242 29,451 1.27 18,658 22,201 1.19

Drugs and medicines............................................ 21,483 813 0.04 34,591 31,020 0.90

Petroleum and coal................................................... 3,752 487 0.13 3,077 237 0.08

Rubber................................................................ 3,787 4,804 1.27 4,114 5,285 1.28

Ceramics............................................................................... 4,092 9,025 2.21 3,828 9,808 2.56

Iron and steel........................................................ 4,776 21,572 4.52 3,403 13,294 3.91

Non-ferrous metals.................................................................................... 10,702 7,054 0.66 3,620 3,640 1.01

Fabricated metals................................................ 2,279 2,004 0.88 1,505 4,698 3.12

General machinery............................................................. 32,986 13,210 0.40 25,554 18,425 0.72

Electrical machinery............................................ 120,553 86,708 0.72 159,159 127,377 0.80

Electrical equipment............................................. 28,517 28,164 0.99 24,431 8,288 0.34

Communications and electronic equipment............................................. 92,036 58,544 0.64 134,729 10,975 0.08

Motor vehicles...............................................................................7,248 83,042 11.46 8,748 124,249 14.20

Professional and scientific instruments............................................. 8,302 12,556 1.51 22,747 640 0.03

SOURCE: Government of Japan, Management and Coordination Agency, Report on the Survey of R&D, Tokyo, 1995.

88

Table A-27. Japanese manufacturing trade in technical know-how by selected industries: 1990 and 1993

1990 1993

 [Millions of current yen]
Year Balance Exports to U.S. Imports from U.S. Balance Exports to U.S. Imports from U.S.

1990......................................... $7,233.1 $19,450.2 $12,217.1 $510.4 $1,103.5 $593.1 

1991......................................... 7,434.2 19,799.5 12,365.3 585.7 1,247.1 661.4

1992......................................... 8,854.7 21,458.4 12,603.7 628.3 1,106.5 478.2

1993......................................... 12,789.4 24,936.1 12,146.7 959.3 1,504.2 544.9

1994......................................... 14,317.5 28,732.2 14,414.7 1,144.1 1,963.1 819.0

1990......................................... (177.1) 1.4 178.5 44.9 482.0 437.1

1991......................................... (174.7) 1.9 176.6 (36.5) 461.8 498.3

1992......................................... (152.2) 1.6 153.8 65.3 195.3 130.0

1993......................................... (138.1) 1.3 139.4 51.2 240.7 189.5

1994......................................... (187.9) 1.0 188.9 128.4 337.5 209.1

1990......................................... 56.5 746.6 690.1 (3,593.0) 487.3 4080.3

1991......................................... 162.4 889.6 727.2 (3,135.9) 614.5 3750.4

1992......................................... 185.4 910.4 725.0 (3,791.6) 575.3 4366.9

1993......................................... 50.4 891.5 841.1 (2,980.9) 501.9 3482.9

1994......................................... (111.0) 895.9 1,006.9 (3,329.1) 555.8 3884.9

1990......................................... 688.2 798.3 110.1 (89.3) 2.2 91.5

1991......................................... 1,461.8 1,603.1 141.3 (98.0) 2.6 100.6

1992......................................... 1,882.5 1,939.5 57.0 (84.5) 2.6 87.1

1993......................................... 1,746.4 1,823.7 77.3 (106.4) 3.4 109.8

1994......................................... 1,291.1 1,454.0 162.9 (96.6) 4.9 101.5

1990......................................... 8,703.6 13,078.2 4,374.6 (726.4) 1.8 728.2

1991......................................... 7,239.2 11,611.7 4,372.5 (812.6) 1.4 814

1992......................................... 8,168.7 12,444.4 4,275.7 (811.4) 2.2 813.6

1993......................................... 10,197.6 14,319.4 4,121.8 (823.5) 4.4 827.9

1994......................................... 11,343.0 16,146.9 4,803.9 (851.8) 2.4 854.2

1990......................................... 1,815.5 2,749.0 933.5 (119.9) 22.2 142.1

1991......................................... 2,242.8 3,365.7 1,122.9 (139.1) 31.3 170.4

1992......................................... 2,764.3 4,280.7 1,516.4 (149.4) 28.7 178.1

1993......................................... 3,833.6 5,645.5 1,811.9 (179.3) 25.6 204.9

1994......................................... 4,987.3 7,370.7 2,383.4 (235.0) 26.0 261

1/ The list of advanced technology products is compiled by the U.S. Bureau of the Census. To be included in one of the categories, 

 a product must contain a significant amount of one of the leading-edge technologies, and the technology must account for a 

 significant portion of the product's value.

NOTE: Data reported on Japanese exports to the United States are actually U.S. imports from Japan as reported by the Bureau 

 of the Census. Likewise, Japanese imports are U.S. exports to Japan as reported in the Census data.

SOURCE: U.S. Department of Commerce, Bureau of the Census, Foreign Trade Division.

Weapons

[Millions of current dollars]

Computer Integrated Manufacturing

Material Design

Aerospace

Table A-28. Japanese trade balance with the United States in advanced technology products: 1990–94 1/

Electronics

[Millions of current dollars]

Computers and Telecommunications

Biotechnologies

Life Sciences

Opto-electronics

All technologies

Nuclear Technology

Software

89