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Trends of Science & Techn
ology Potential and R
esource in Japan
Yuko NAGANONational Institute of Science and Technology Policy
JAPANFeb. 21th 2010
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R&D Investment by Government and Private Enterprises
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Japan’s ratio of total R&D Investment/GDP is relatively high, mainly due to enthusiastic investment in R&D by private enterprises.
However, government investment remains low (0.65% ).
R&D Investment/GDP Comparison
Source: OECD Science, Technology and Industry Outlook (2008)
0.74% 0.65% 0.77% 0.70% 0.81%0.57%
0.35%
2.48%2.96%
1.88%
1.29%
1.21%
1.07%
1.83%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Korea J apan USA Germany France UK China
Non- Gov.
Gov.
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Japan’s target ratio for R&D of “4% per GDP by 2020” requires more government investment.
Target-setting for Ratio of R&D Investment/GDP
Source: OECD Science, Technology and Industry Outlook (2008), etc.
0.74% 0.65% 0.77% 0.70% 0.81%0.57%
0.35%
2.48%2.96%
1.88% 1.83%1.29%
1.21%
1.07%
5.0%
4.0%
3.0% 3.0% 3.0%
2.5% 2.5%
0%
1%
2%
3%
4%
5%
6%
Korea J apan USA Germany France UK China
Non- Gov.
Gov.
Target( )
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Excellence in Academia - Science Paper Productivity
Data shown in first two pages NOTE 1:The input data for the UK (No. of researchers, R&D expenditures) do not include university hospitals; however, hospitals are included in outputs.NOTE 2:R&D expenditures are adjusted by the GDP deflator (1996 base).Sources:(No. of published papers) Compiled by NISTEP based on Elsevier SCOPUS custom data.
(R&D expenditures) Compiled by NISTEP based on the R&D statistics and education statistics of each country.(No. of researchers) Compiled by NISTEP based on the education statistics of each country.
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Science Paper Productivity in Natural Science & Engineering (except Clinical Medicine) of HE
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
A.1996-1998 B.2000-2002 C.2004-2006
J apan
US
UK
Germany
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
A.1996-1998 B.2000-2002 C.2004- 2006
J apan
US
UK
Germany
Productivity per expenditure (100 M $)
Productivity per 1000 researchers Number of papers
0
2
4
6
8
10
12
14
16
1996-1998 2000-2002 2004-2006
J apan
USA
UK
Germany
1.19 x
1.17x
1.10x1.12x
The growth in the number of papers in Japan showed the largest increase (1.19%) of the countries.
Source: NISTEP REPORT No.118 (2009)
Paper productivity in Japan per R&D expenditures is higher than in Germany and the US. Paper productivity per researcher is higher than in Germany and the UK.
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Science Paper Productivity in Clinical Medicine of Higher Education
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
A.1996- 1998 B.2000- 2002 C.2004- 2006
J apan
US
UK
Germany
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
A.1996-1998 B.2000-2002 C.2004- 2006
J apan
US
UK
Germany
Productivity per expenditure (100 M$) Productivity per 1000 researchers
0
1
2
3
4
5
6
7
8
9
1996- 1998 2000- 2002 2004- 2006
J apan
USA
UK
Germany
Number of papers
The number of papers in Japan has decreased slightly, while that in other countries has recorded large increases.
Source: NISTEP REPORT No.118 (2009)
Paper productivity in Japan is lower than that in other countries. It is also low compared to other natural science and engineering areas.
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World Share of Papers and Top 10% Papers by Field
0.0
10.0
20.0
Chemistry
Material
Physics
Computes/Mathe
Engineering
Environment/Geoscience
ClinicalMedicine
Basic biology
0.0
10.0
20.0
Chemistry
Material
Physics
Computes/Mathe
Engineering
Environment/Geoscience
ClinicalMedicine
Basic biology
Source: Science and Technology Indicators 2009, NISTEP
Note: Data above shown as a percentage, compiled by NISTEP based on Thomson Reuters Scientific “Web of Science” 2005-2007
GermanyGermany
0.0
10.0
20.0
Chemistry
Material
Physics
Compues/Mathe
Engineering
Environment/ Geoscience
ClinicalMedicine
Basic biology
KoreaKorea
0.0
10.0
20.0
Chemistry
Material
Physics
Computes/Mathe
Engineering
Environment/Geoscience
ClinicalMedicine
Basic biology
UKUK
ChinaChina
0.0
10.0
20.0
Chemistry
Material
PhysicsComputes/
MatheEngineering
Environment/ Geoscience
Clinical Medicine
Basic biology
The world share of papersThe world share of Top10 papers
JapanJapan
0.0
30.0
60.0
Chemistry
Material
Physics
Computates/Mathe
Engineering
Environment/Geoscience
ClinicalMedicine
Basic biology
USAUSA
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R&D Activities and Innovationin Industry
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Net Sales, R&D Expenses, and Product Innovation in Business Sectors
0% 20% 40% 60% 80% 100%
Increase of atleast 10%
Increase/ decreaseof less than 10%
Decrease of atleast 10%
Net
sal
es c
hang
e
In- house R&D expenses changes
Decrease of at least 10%Increase/ decrease of less than 10%Increase of at least 10%
Net sales change vs. In-house R&D expenses changes
Source: Survey Research Activities of Private Corporations (2009) NISTEP
Net sales increase is correlated with R&D expenses increase in business sectors.
0% 20% 40% 60% 80% 100%
Increase of atleast 10%
Increase/ decreaseof less than 10%
Decrease of atleast 10%
In-h
ouse
R&D
exp
ense
s ch
ange
Product innovation
Innovation achieved
No innovation achieved
In-house R&D expenses change vs. Product innovation
R&D expenses increase is also correlated with product innovations achieved.
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Why Do Enterprises Increase Internal R&D Expenses?Enterprises increase in internal R&D expenses mainly due to “expenses for specific R&D field increase”, besides “personnel expenses increase”.
0 10 20 30 40 50 60
Expenses increase for specific R&D field
Expansion of R&D fields
R&D Capital investment increase
R&D Personnel expenses increase
Revenue/ profit increase
Research lab construction/ extension
Internal reserves increase due to tax break
Subsidies for research
Merger/ acquisition
Other reasons
(%)
Source: Survey Research Activities of Private Corporations (2009) NISTEP
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R&D Contribution to Economic Outcomes of Innovation
Labor
Capital(equipment investment)
Companies
Profit
Goods and services
Labor productivity
R&D R&D
IT infrastructure
Business model reform
Capital productivity
Total Factor Productivity
(TFP)
+
Labor contribution
Capital contribution
+ (the rest)TFP Growth
= EconomicGrowth
TFP can be considered as an indicator of the economic outcomes of innovation. Active R&D contributes to TFP growth.
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According to a NISTEP’s report, the contribution of R&D investment increase is 0.67% in TFP growth ratio of 2.4%, in manufacturing companies which conduct R&D. (R&D activity’s contribution equivalent to 28% of TFP growth)
0.67% 0.44%0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Manufactruring industries All industries
Labor & Capitalcontribution tooutput growth rate Other factorscontribution to TFPgrowth rateR&D contribution toTFP growth rate
100%
28%
Sales growth rate: 5.46% (annual average, 2003-2006)
TFP growth rate: 2.40% (annual average, 2003-2006)
R&D Contribution to TFP Growth (Estimate)
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Industry-Academia Collaboration
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Industry Investment in R&D by External Institutes
Foreign Institutes
Universities in Japan
( o
ne
hu
nd
red
M y
en)
(FY)
Business enterprises in Japan enthusiastically invest in foreign institutes besides universities in Japan.
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Why Do Business Enterprises Collaborate with Universities?
Enterprises collaborate with universities to “enhance R&D/technical capability” and “access to technical knowledge /ideas”.
0 10 20 30 40 50 60 70
Other
Respond to foreign legal regulation
Develop products to meet overseasneeds
Raise the level of researchers
Obtain subsidies
Form personal connections
Access to research facilities
Access to technical knowledge/ ideas
Improve R&D efficiency
Carry out diverse R&D themes
Expand R&D scale
Enhance R&D/ technical ability
(%)Source: Survey Research Activities of Private Corporations (2009) NISTEP
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Researchers in academia recognize the significance of collaboration other than contribution to the society.
(Objectives of collaboration) (Effect on researchers themselves)
Researcher Incentives for Industry-Academia Collaboration
(N=497)
0 50 100 150 200 250 300 350
Acquire eternal funding
Creat new businesses
Learn Industry trends/ needs
Access to research resource of partners
Take advantage of facilities of own institute
Contribution to regional society
Technology transfer of research results
Lab. Activation/ education of students
New research topics identification/ expansion
Research promotion in area of own expertise
Receive research talents
others
First
Second
Third (N=466)
0 50 100 150 200 250 300
Outcome-driven research
IP rights intention
Increase of no. of papers/ presentations
Increased opportunities for patent application
New research topics expansion
Research promotion in own expertise
Develop own project management capabilities
Lively laboratories
Secure students's jobs
others
First
Second
Third
Source: NISTEP REPORT No.127 (2009)
Many researchers recognize “outcome-driven research” and “lively laboratories” as effects to themselves.
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Matters for Researchers in Industry-Academia CollaborationMany researchers recognize their problems on balance between collaborative research and their own academic research.
(N=454)
0 20 40 60 80 100 120 140 160 180 200
Organization and skills in charge of I-A collaboration
Cooperation with ext. organizations such as TLO
PR on research results of researchers
Coordinators training, I-A collaboration matching
Systems for continuing partnerships with companies
Balance of I-A collaborative research and basic research
Feedback of results from I-A collaboration to education/research
Operation of rules related to IP and conflicts of interests
Promotion for researchers on I-A collaboration and IP activities
Systems for evaluating performance in I-A collaboration/IP activities
Systems to handle procedures for administering grants
Exchenge of more talents with companies and simplify the procedures
Others
1st
2nd
3rd
Source: NISTEP REPORT No.127 (2009)
Researchers recognize the need to “improve the organizational support system for evaluating collaborative activities”, and “build up continuing partnerships with companies”.
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The Next Challenges for Explosive and
Persistent Innovation
Collaboration
Universities
Education
Research
Contribution to the society
Creating Knowledge
Encouraging talents
Business enterprises
Carrying out business
Supplying new products and
services
Universitiesexternal/internal
Educational effects
Access to knowledge/idea
Expanding new research areas
Enhancing R&D capability
Win-win Win-win partnershipartnershi
psps
Synergetic effectsSynergetic effects
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Thank you for your attention!