Title: NSF/Tokyo Report: Japanese Government Organization for Science and Technology Date: November 12, 1997 The National Science Foundation's offices in Tokyo and in Paris periodically report on developments abroad that are related to the Foundation's mission. These documents present facts for the use of NSF program managers and policy makers; they are not statements of NSF policy. Report Memorandum #97-11 October 17,1997 JAPANESE GOVERNMENT ORGANIZATION FOR SCIENCE AND TECHNOLOGY OVERALL INFRASTRUCTURE The supreme executive power in the Japanese government system is the Cabinet, headed by the Prime Minister. The Cabinet is collectively responsible to the Diet. Each of the government's 12 Ministries is headed by a member of the Cabinet. In addition, a number of Cabinet members are designated Ministers of State without portfolio and assigned as heads of the External Organs of the Office of the Prime Minister and the Atomic Energy Commission (see Chart 1). Two top-level advisory organs assist the government in formulating general policies related to science and technology. The Science Council of Japan, created in 1949 to provide input from the public science community to the government, is composed of 210 members selected by Japanese academic societies. The Council's activities include exchanges with international academic bodies in both humanities and natural sciences, interacting with government science and technology agencies, making recommendations to the government for establishing new research centers, lobbying to improve conditions for researchers, and advising on safety in nuclear energy. Established in 1959, the Council for Science and Technology (CST) is chaired by the Prime Minister and has four Cabinet ministers (Science and Technology Agency, Economic Planning Agency, Education and Finance) as members. Other members include the President of the Science Council of Japan, and five other persons of "learning and experience" appointed by the Prime Minister and approved by the Diet. In practice, this number is supplemented by temporary appointments and by the presence on subcommittees of numerous "specialists." The CST engages in fairly continuous deliberations under the guidance of the Science and Technology Agency Minister who chairs the Executive Committee, with Secretariat support provided by that Agency's S&T Policy Bureau. The CST's major objectives are long-range policy planning, and identification and analysis of important R&D programs; concrete measures are expected to be implemented by the appropriate government agencies. Recommendations have been made to the government on science and technology policy, basic R&D programs in specific fields, and on government research institutions. On June 24, 1996, the CST submitted to the Prime Minister a draft "Basic Plan for Science and Technology" to implement the Basic Law of Science and technology; the law enacted by the Diet in November 1995. On July 2, 1996, the CST-proposed "Basic Plan for S&T" was approved by the Cabinet as the official plan of the government. The goal of the Basic Plan is to restructure Japan's S&T system to make it more innovative, cost-efficient, and improve the research environment for scientists and engineers. Drafters of the plan suggested that Japan's R&D system was hampered by its inflexibility; a lack of competitiveness, cooperation, and exchanges among researchers across organizational boundaries; and the deterioration of research facilities. The Basic S&T Plan outlined a number of measures the Japanese government plans to promote over the next five years with the hope of increasing the country's technological competitiveness, including: - Development of new R&D support systems for competitive funding.* - Development of impartial R&D evaluation systems - Improvement of R&D facilities and equipment - Promotion of international cooperation in R&D - Promotion of government, industry and university cooperation - Increasing mobility of researchers. - Expansion of programs to invite foreign researches to Japan - Expansion of postdoctoral fellowships (to 10,000 postdocs by 2000) - Promotion of programs for public understanding of S&T - Modifying universities' policies to allow employment of non-academic researchers. - Allowing government researchers to engage in research for or provide guidance to private companies. In support of these objectives, the Basic Plan called for the government to spend 17 trillion yen during the 1996-2000 time frame on R&D, about 142 billion dollars at 120 yen to the dollar. [*Note: For the new R&D supporting systems started by several ministries and agencies in FY 1996 and 1997, see Table 3 at the end of this report.] In addition to the Prime Minister's Council for Science and Technology and the Science Council of Japan, councils have been established to advise the Prime Minister and the government on policies and procedures for advancing atomic energy, nuclear safety, space activities, and ocean development. There are also advisory groups within each ministry or agency, including the following: SCIENCE AND TECHNOLOGY AGENCY: Council for Aeronautics, Electronics and Other Advanced Technologies Resources Council Radiation Council Consulting Engineer Council MINISTRY OF EDUCATION, SCIENCE AND CULTURE: Science Council Geodesy Council University Council Central Education Council Council on Science Education and Industrial Education MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY: Industrial Technology Council Council on Industrial Structure MINISTRY OF POSTS AND TELECOMMUNICATIONS: Telecommunications Council Telecommunications Technology Council MINISTRY OF TRANSPORTATION: Council for Transport Technologies GOVERNMENT BUDGET FOR SCIENCE AND TECHNOLOGY The total of the FY 1997 S&T-related budget is 3,002.8 billion yen (about US$25 billion). This represents an increase of 191.8 billion yen (US$1.6 billion) or 6.8% over FY 1996 initial budget of 2,810.7 billion yen. The total 3,002.8 billion yen, represents 3.88% of the aggregate total of Japanese government budget for FY'97 (77,390 billion yen), as compared to 3.74% in the previous fiscal year. This appeared to be a good start for the government in meeting the goals of investing 17 trillion yen over the next five years in S&T as suggested in the Basic Plan for Science and Technology. However, facing the enormous budget deficits accumulating in recent years after collapse of the so-called "economic bubble," the government has now decided to implement a plan for "financial structural reforms" over the next three years and asked all the government agencies to keep their budget request for the next few years as low as possible. As a result, according to the Science and Technology Agency, the gross total of the S&T-related "budget requests" submitted by various ministries and agencies by the end of August 1997 to the Finance Ministry for the next fiscal year (FY 1998) amounted to 3,045.9 billion yen, an increase of only 1.4% (43.1 billion yen) over the FY 1997 level of 3,002.8 billion yen, which is the lowest increase rate ever since 1984. Table 1 shows a yearly comparison of the Japanese government's S&T related budget for the past 20 years. Table 2 gives the S&T-related budget proposed for each government agency, and the ratio of each agency's budget to the government's total S&T-related budget for the current JFY 1997. The Ministry of Education, Science, Sports and Culture (Monbusho) accounts for nearly half (42.9%) of the government's total S&T budget. Following Monbusho are the Science and Technology Agency (STA), with about one-fourth (24.5%) of the total, and the Ministry of International Trade and Industry (MITI) accounting for approximately one-sixth (15.7%) of the total S&T budget. Taken together, Monbusho, STA and MITI account for 84.1% of the total government budget for S&T. What follows are details on these three agencies. MINISTRY OF EDUCATION, SCIENCE, SPORTS AND CULTURE (MONBUSHO) Established in 1871, Monbusho is responsible for the administration, promotion and development of school education from pre-school through graduate university, social education, science and culture (see Chart 2). There are 565 four-year universities in Japan, including 98 national, 52 local (prefectural and municipal) and 415 private universities. Of these, 385 universities provide advanced graduate courses and 274 offer Ph.D programs. In promoting science, Monbusho 1) establishes or improves national universities, and university-affiliated and national inter-university research institutes, 2) subsidizes research and research facilities at private and local public universities and at private, non-profit research institutes, 3) awards research grants, 4) promotes specific research areas of national importance such as space and life sciences, 5) cooperates with industry in promoting science, 6) provides training for young scientists, 7) subsidizes the Japan Society for the Promotion of Science which implements programs of support for scientists, 8) encourages international exchange and cooperation, and 9) establishes and maintains a science information system. Monbusho's S&T budget for JFY 1997 is 1,289 billion yen ($10.7 billion). At 43% of the total Japanese government S&T budget, Monbusho's is by far the largest S&T budget of any of the ministries and agencies. University research is supported by Monbusho in the following ways: (a) funds allocated to universities and researchers according to standard formulas, (b) funds allocated for specific research organizations, facilities or equipment, research projects, etc., and (c) competitive research grants awarded on the basis of applications from individual university researchers. In 1997, Monbusho disbursed 112.2 billion yen ($935 million) to support 37,000 of the 99,000 applications for research grants. The great majority (80%) of Monbusho's S&T-related budget is disbursed through the Special Account for National Educational Institutions to cover faculty salaries, running expenses for research activities, and costs for research facilities and equipment at national universities. Since the 1980's, the government's stringent deficit-reduction policies have resulted in little or no increase in the Special Account for National Educational Institutions, despite expenditures for personnel and general consumption having soared. This has severely affected the facilities and equipment of universities. Today, 10% of university buildings are more than 30 years of age and about 40% are 20-30 years old. Responding to calls from both the Science Council of Japan and the Prime Minister's Council for Science and Technology, the government has been allocating, in recent years, significant resources for the improvement of university facilities and equipment by either supplementary budgets o! r regular budgets. The modern system of formal education in Japan was inaugurated in 1872 and the 6-3-3-4 system was established in 1947. In 1991, Monbusho formulated a set of policies for reform of higher education focused on improvement of the content of higher education and the promotion of individuality. Simplification of Monbusho standards regulating the educational activities of universities and junior colleges is enabling universities and colleges to take more responsibility for formulating and improving their own curricula. Monbusho is also targeting graduate education for reform and expansion. In 1993, about 87,000 students were enrolled in master's programs and 35,000 in doctor's programs, with the total graduate student enrollment accounting for only about 5 percent of the total number of undergraduates. For comparion, in 1996, the number of students in master's programs increased to 115,900, and the number of doctor's programs to 48,500, with the total graduate enrollment accounting for almost 7% of the total number of undergraduates. SCIENCE AND TECHNOLOGY AGENCY (STA) Established in 1956 under the Prime Minister's Office, STA coordinates Japan's overall science and technology policy and oversees major government projects in space, ocean and nuclear power development, and basic research on global change, disaster prevention and materials, life, and earth sciences (see Chart 3). STA's S&T budget for JFY1997 is 734 billion yen ($6.1 billion) which, at 24.5% of the total Japanese government S&T budget, is exceeded only by Monbusho. STA's primary responsibilities include: 1) Development of national policies for the promotion of science and technology. 2) Overall coordination of the scientific and technological activities of the government's administrative agencies. 3) Review of budget requests of the various agencies to assure consistency across government supported labs and projects. 4) Formulation of policies regarding the utilization of natural resources and coordination of activities of concerned agencies. 5) Fostering of research projects involving more than one agency or ministry. 6) Assuring that recommendations made by the Science Council of Japan and the Prime Minister's Council for Science and Technology are acted upon by the appropriate government agencies. 7) Promotion of large-scale R&D projects in nuclear energy, space and ocean development, and support for R&D activities at national institutes and public R&D corporations under STA's jurisdiction. 8) Development of R&D infrastructure, including large-scale synchrotron radiation facilities, and inter-ministerial information networks. Minister of State for Science and Technology is the head of STA and is a member of the Cabinet. The same person, by custom, also serves as head of Japan's Atomic Energy Commission and of the Space Activities Commission. STA serves as the secretariat for the Prime Minister's Council for Science and Technology, the Atomic Energy Commission, the Nuclear Safety Commission, the Space Activities Commission, and the Council for Ocean Development. MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI) Established originally as the Ministry of Commerce and Industry in 1949, and focused on developing the Japanese economy and industry, MITI administers government affairs related to foreign trade, industries, information, high technologies, industrial location and environmental protection, and energy (see Chart 4). MITI's functions cover a wide range of industrial fields, including basic industries (steel, new chemical materials, bioindustries, etc.), machinery and information industries (electronic equipment, robots, industrial machines, automobiles, aircraft, information processing, space industry, etc.) and consumer goods industries (textiles, fine ceramics, household goods, housing equipment, etc.). At 472 billion yen ($3.9 billion), MITI's S&T budget for JFY1997 accounts for 15.7% of the total Japanese government S&T budget. MITI has historically pursued a vigorous industrial technology policy, including funding and tax incentive systems to encourage private sector applied research and development. However, based on recommendations by MITI's Industrial Technology Council to shift MITI's R&D priorities from applied or targeted research projects to more basic research, MITI in January 1993, started a structural reform of its laboratory organization governed by the Agency of Industrial Science and Technology (AIST) and of its "national project system." MITI is well known for supporting joint government and private sector research consortia. AIST's Industrial Science and Technology Frontier Program funds government-industry collaborative R&D on large-scale industrial, innovative basic, and medical and welfare equipment technologies. The Program on Energy and Environmental Technologies (NEW Sunshine Program) funds R&D on new energy and energy conservation technologies and on technologies related to the global environment. Chart 1: GOVERNMENT ORGANIZATION FOR SCIENCE AND TECHNOLOGY Prime Minister's Office | | | |[Advisory Organs to the Prime Minister] | |------------------------------------| | | Council for Science and Technology | | | Atomic Energy Commission | | | Nuclear Safety Commission | | | Council for Ocean Development | | | Space Activities Commission | | |------------------------------------| | | Science Council of Japan | | |------------------------------------| | | [External Organs of Prime Minister's Office] |----Science and Technology Agency |----Economic Planning Agency |----National Land Agency |----Environment Agency |----Defense Agency |----Hokkaido Development Agency |----Management and Coordination Agency |----National Public Safety Commission | | [12 Ministries] Ministry of Agriculture, Forestry and Fisheries Ministry of Construction Ministry of Education, Science and Culture Ministry of Finance Ministry of Foreign Affairs Ministry of Health and Welfare Ministry of Home Affairs Ministry of International Trade and Industry Ministry of Justice Ministry of Labor Ministry of Posts and Telecommunications Ministry of Transport * * * * * * * * Chart 2: ORGANIZATIONAL STRUCTURE OF MONBUSHO Minister of Education, Science, Sports and Culture | | - Parliamentary Vice Minister | | - Administrative Vice Minister | | - Minister's Secretariat | | -------------- [Advisory Councils] | - Science Council | - Geodesy Council | - University Council | |[Internal Bureaus] | - Science and International Affairs Bureau | - Higher Education Bureau | - Elementary and Secondary Education Bureau | - Life-long Education Bureau | - Physical Education Bureau | |[External Agency] | - Agency for Cultural Affairs | |[Public Corporation] | - Japan Society for the Promotion of Science (JSPS) | |[National Educational and Research Institutions] | - Universities and Colleges | - Laboratories attached to Universities | | - Institutes attached directly to the Ministry | | - Inter-University Research Institutes - High Energy Accelerator Research Organization (KEK) - National Institute of Japanese Literature - National Institute of Polar Research (NIPR) - National Museum of Ethnology - Institute of Space and Astronautical Science - Okazaki National Research Institutes - - Institute for Molecular Science - - National Institute for Basic Biology - - National Institute for Physiological Sciences - National Museum of Japanese History - National Institute of Genetics - Institute of Statistical Mathematics - National Center for Science Information Systems - International Research Center for Japanese Studies - National Astronomical Observatory - National Institute for Fusion Science * * * * * * * * * * Chart 3: ORGANIZATIONAL STRUCTURE OF STA Minister of State for Science and Technology | | | |--Parliamentary Vice Minister | |--Administrative Vice Minister | |--Deputy Minister for Science and Technology | |--Minister's Secretariat | |--------[Advisory Councils] | - Council for Aeronautics, Electronics & Other | Advanced Technologies | - Resources Council | - Radiation Council | - Consulting Engineer Council | | [Internal Bureaus] | == S&T Policy Bureau | == S&T Promotion Bureau | == R&D Bureau | == Atomic Energy Bureau | == Nuclear Safety Bureau | |------------ [National Research Institutes] | - National Institute of S&T Policy (NISTEP) | - National Research Institute for Earth Science | and Disaster Prevention (NIED) | - National Research Institute for Metals (NRIM) | - National Institute for Research in Inorganic | Materials (NIRIM) | - National Aerospace Laboratory (NAL) | - National Institute of Radiological Sciences | (NIRS) | |------------ [Public Corporations] - Japan Information Center for Science and Technology (JICST) - Institute of Physical and Chemical Research (RIKEN) - Research Development Corporation of Japan (JRDC) - Japan Atomic Energy Research Institute (JAERI) - National Space Development Agency of Japan (NASDA) - Japan Marine Science and Technology Center (JAMSTEC) - Power Reactor and Nuclear Fuel Development Corporation (PNC) Chart 4: ORGANIZATIONAL STRUCTURE OF MITI Minister of International Trade and Industry | | | |--Parliamentary Vice Minister | |--Administrative Vice Minister | |--Vice Minister for International Affairs | |--Minister's Secretariat | |------------[Advisory Council] | - Industrial Technology Council | - Council on Industrial Structure | [Internal Bureaus] |==International Trade Policy Bureau |==International Trade Administration Bureau |==Industrial Policy Bureau |==Industrial Location and Environmental Protection Bureau |==Basic Industries Bureau |==Machinery and Information Industries Bureau |==Consumer Goods Industries Bureau | | [External Agencies] |--Agency of Industrial Science and Technology (AIST) | |--------[Research Institutes] | - National Institute for Advanced | Interdisciplinary Research (NAIR) | - National Research Laboratory of Metrology | (NRLM) | - Mechanical Engineering Laboratory (MEL) | - National Institute of Materials and Chemical | Research (NIMC) | - National Institute of Bioscience and Human- | Technology (NIBH) | - Geological Survey of Japan (GSJ) | - Electrotechnical Laboratory (ETL) | - National Institute for Resources and | Environment (NIRE) | - Osaka National Research Institute | - Hokkaido National Industrial Research Institute | (HNIRI) | - Kyushu National Industrial Research Institute | - Shikoku National Industrial Research Institute | - Tohoku National Industrial Research Institute | - Chugoku National Industrial Research Institute | - National Industrial Research Institute of | Nagoya | |--Agency of Natural Resources and Energy (ANRE) |--Patent Office |--Small and Medium Enterprise Agency (SMEA) | | [Public Corporations] |---New Energy and Industrial Technology | Development Corporation (NEDO) |---Japan Key Technology Center Table 1: Yearly Comparison of Japanese Government S&T-Related Budget ---------------------------------------- JFY (Billion Yen) Increase ---------------------------------------- 1979 1,150.8 16.2% 1980 1,292.1 11.8% 1981 1,398.2 8.2% 1982 1,448.0 3.6% 1983 1,450.1 0.1% 1984 1,483,8 1.5% 1985 1,532.9 3.3% 1986 1,606.4 4.8% 1987 1,662.3 3.5% 1988 1,715.7 3.2% 1989 1,815.6 5.8% 1990 1,920.9 5.7% 1991 2,022.6 5.4% 1992 2,134.7 5.5% 1993 2,266.3 6.2% 1994 2,358.5 4.1% 1995 2,499.5 6.0% 1996 2,810.7* 12.5% 1997 3,002.8 6.8% 1998** 3,045.9 1.4% (**Requested) --------------------------------------- [*Note: According to STA, the enactment in November 1995 of the "Basic Law for S&T" and the 1996 promulgation of the "Basic Plan for S&T" have prompted some of the government agencies to re-examine the scope of their "S&T-related budget" and in this process they have discovered that some of the budgetary items previously excluded from S&T-related categories should have been included in light of the scope of activities covered under the S&T Basic Plan; hence the large increase of the JFY 1996 S&T-related budget as compared to previous years.] Table 2 Inter-Agency Comparison of S&T Budget Amounts (Unit: In billion yen) Ministries and Agencies [98Rquest] FY 1997 %of total -------------------------------------------------------------- Min.of Education,Sci.&Culture 1,316.9 1,289.0 42.9% Science and Tech. Agency 745.0 734.5 24.5% Min.Int'l.Trade&Industry 499.2 472.4 15.7% Defense Agency 144.7 175.3 5.8% Min.Agriculture,For.&Fish. 104.9 100.9 3.4% Min.of Health & Welfare 92.3 91.5 3.0% Min.of Posts & Telecom. 58.7 57.7 1.9% Ministry of Construction 39.6 38.9 1.3% Ministry of Transport 23.7 23.1 0.8% Environment Agency 19.8 18.0 0.6% Ministry of Foreign Affairs 11.6 13.0 0.4% Ministry of Labor 4.0 4.3 0.1% Ministry of Finance 2.6 2.2 0.1% Ministry of Justice 2.1 2.0 0.1% National Police Agency 1.6 1.5 0.05% Science Council of Japan 1.3 1.3 0.05% Economic Planning Agency 1.1 1.1 0.04% Ministry of Home Affairs 0.9 0.8 0.03% National Diet 0.6 0.6 0.02% National Land Agency 0.7 0.5 0.02% Hokkaido Development Agency 0.2 0.2 0.01% ------------------------------------------------------------- TOTOAL** 3,045.9 3,002.8 100.0% [**Note: The sum of the individual budget figures slightly exceeds the total because funds for the Japan Key Technology Center are double-listed in the budgets for the Ministry of International Trade and Industry and the Ministry of Posts and telecommunications.] For further details on FY 1997 R&D Budget, see NSF/Tokyo Report Memorandum #97-06, dated June 25, 1997 (available on NSF/Tokyo's WWW Homepage at: http://www.twics.com/~nsftokyo/trm.html ) Table 3. "New Systems" for R&D Support [Note: In the past, construction bonds were used almost exclusively for funding infrastructure projects like roads and bridges. Arguing that investing in R&D is analogous to infrastructure investments, i.e., future generations are the primary beneficiaries, Japan's R&D community successfully lobbied to have certain categories of R&D treated as "investment expenditures" so that they would be eligible for deficit funding by "construction bonds." ] The table below shows a summary of the R&D support systems currently (1997) supported: (Budget figures: In million yen) New Programs for Basic Research FY'96 FY'97 -------------------------------------------------------- 1) Core Research for Evolutionary (In million yen) Science and Technology - CREST 15,000 24,000 (JST/STA) 2) Research for the Future Program: 11,000 20,600 (JSPS/Monbusho) 3) Program for the Promotion of Basic Research in Health and Medical Care: 1,016 2,957 (Organization for Drug ADR Relief/MHW) 4) Basic Research for the Creation of New Agricultural Technologies and Industries: 1,982 3,723 (MAFF/BRAIN) 5) Innovative Industrial Technology R&D Promotion Program: 2,650 4,700 (MITI/NEDO) 6) Systems for Basic Research in the Field of Info-Communications: 480 800 (MPT/TAO) 7) Promotion of Research on Land-, Sea- and Air-transport Systems, Facilities and Equipment: 0 300 (MOT/Transp. Facilities Corp.) 8) Promotion of Basic Research in Areas related to Environmental protection (Environment Agency) 0 200 -------------------------------------------------------- Total: 32,128 57,280 (In million yen) - 18 -