Publicly Funded Research and Innovation in Japan and the Outlook for International Cooperation

Abstract

Research governance in Japan is a hybrid that combines bureaucratically centralized top-down control with supplementary “bottom-up” input from associations, research centers, major industrial sectors, and academia. The interest in examining the Research, Technological Development and Innovation (RTD&I) structures and policies in this country stems from the particularity of the above research governance structure in combination with the strong international commitment and involvement of its Transport related industries and the private sector. It also stems from the observation that Japan is a relatively speaking “slow mover” when it comes to institutional or cultural change as well as a relatively “closed” system, regarding RTD&I. Its official efforts to embrace new thinking, seem in conflict with a systemic resistance to change and this may create sub-optimal or even contradictory policies and programs that could compromise Japan’s efforts to regain its RTD&I prominence globally and in East Asia. This chapter examines all these issues in a systematic and thorough way starting with an examination of the background to economic change in Japan and the emergence of its Science and Technology Basic Plans . It then proceeds to examine the Japanese research governance and funding system and its main international RTD&I collaboration policies and activities. It also focuses on transport research and examines its place in the overall Japanese RTD&I system, its principal stakeholders, and gives specific examples of current Japanese international RTD&I cooperation efforts in the transport sector. The Chapter concludes that even if Japan is able to establish an optimal RTD&I international cooperation policy, there are a number of factors that will continue to slow its ability to compete on the RTD&I front. These include an aging population that is highly dependent on social services and thus absorbing many public funding resources; the “insular” culture in the country that is biased against significant participation by foreign scientists; the corresponding reluctance of foreign scientists to relocate to Japan; the growing labour costs; and an apparent reluctance to encourage foreign investment for RTD&I in Japan. In the field of transport, Japan (especially the Japanese private sector) is making considerable progress in establishing international transportation RTD&I collaborations with Europe, the United States, and other countries of East Asia. A major sign of this progress is Japan’s so called ST&I diplomacy relationships primarily with other East Asian governments. This maybe driven by competition considerations and the potential for finding new markets but it is still a very significant “opening” of the Japanese RTD&I system to the outside world. The Chapter provides a SWOT analysis to examine and evaluate these initiatives and the numerous opportunities for greater collaboration between Japan and other countries. It also examines the significant threats which, if not mitigated, may undermine RTD&I collaboration and progress over the mid to long term.

All views expressed here are those of the author and do not reflect the views of the Organisations he is connected with.

Annex: Characteristics of the Japanese Post WW II RTD&I Paradigm

The following sections explore Japan’s approach to RTD&I collaboration through a “paradigmatic” policy model²⁴ which the Japanese government also uses in exploring necessary RTD&I policy changes. The paradigmatic model, used, shows how particular scientific communities incorporate integrated sets of “beliefs” to interpret phenomena and guide research.

Policy communities as well as research performing Organisations within Japan are guided by these “beliefs” which when integrated in sets, form “paradigms” that set research agendas and funding priorities.

In the Post WW II period, Japan has employed two paradigms²⁵:

• (A) From 1946 through 1994, it employed an RTD&I paradigm that focused on self-reliance and centralized planning and agenda setting.

• (B) From 1995 through present, it has gradually moved towards a RTD&I paradigm that recognizes the importance of greater openness and collaboration and cooperation with regional actors (East Asia) as well the U.S. and the European Union.

First Japanese RTD&I Paradigm 1947–1994: Protectionism to expand growth

For most of the post WWII, 20th Century, Japanese Research & Technological development has been largely an isolated, inwardly focused activity with dependence on a system of internal, interdependent government, research and academic organizations and corporations that are focused on consensus building among stakeholders.

At the same time, Japan was heavily reliant on borrowing the best ideas from the West and converting those ideas into exports such as automobiles and durable goods. This process was highly successful and Japan experienced unprecedented export-driven economic growth.

This Paradigm was based on the following two “beliefs”:

• Belief 1: Industrial policy is critical to Japanese success,²⁶

• Belief 2: Assistance for Targeted Export Industries (Japan’s industrial policy emphasizes direct government support for export industries).

• Belief 3: A Commitment to Convergence.²⁷

Second Japanese RTD&I Paradigm 1995—present: Increased openness and collaboration

The following beliefs characterize this period and have gained increased support throughout the Japanese RTD&I policy community. They are also reflected in the most recent Japanese ST&I Basic Plans (see also: Wong et al. 2010).

• Belief 1: Japan must reform and revitalize its ST&I system to promote more productive relationships between key sectors of the economy, including industry, and the higher education system.

• Belief 2: Japan must establish programs and policies that encourage greater collaboration between ST&I sector and leading universities in the U.S. and Europe.

• Belief 3: “ST&I diplomacy” must be a key factor of Japan’s overall approach to East Asia. The funding of joint research projects throughout East Asia will enable Japan to leverage the growing technical capabilities of the region, access new markets, and contain Chinese hegemony.

• Belief 4: RTD&I policy must place greater reliance on the private sector, including enabling key sectors to invest in countries such as the U.S. that have the capability to develop “disruptive” technologies especially in the areas of information technology, connected vehicles, and robotics.

• Belief 5: RTD&T policy must encourage greater contact between the Japanese research community and the rest of the developed world. Japan’s historically isolated approach to RTD&I enabled other countries of the region to move past Japan in the production of Triadic patents and co-authored papers with the West.

Conflicts between the “beliefs” of the old and the new RTD&I paradigms tend to slow change, inhibit RTD&I collaboration, and enable competitors to gain strategic advantage.