STI Policy and Practices in Japan_Dr. NAKAMURA Michiharu, Counselor to the President, Japan Science and Technology Agency_日中韓国際シンポジウム「3カ国からみるイノベーション政策の現状と展望」Japan-China-ROK Symposium "Current Issues and Expectations on Innovation Policy in Three Countries"_20161122

1. 1
STI Policy and Practices
in Japan
Trilateral Seminar on Innovation
November 22, 2016
Michiharu Nakamura
Japan Science and Technology Agency

2. 2
• The 4th Industrial Revolution
• Innovation Ecosystem
• Science
• Human Capacity Development
• Public-Private-Society
Partnership
• SDGs
• Science Diplomacy

3. 3
Impacts of Digital Technology
 The recent remarkable progress of digital technology
brings about Cyber-Physical-Systems (CPS) and develops
a new era of humankind and machine coexistence.
 CPS transforms people, community, industry, academia,
and government in the 21st century.
 Such a revolutionary transformation (The 4th Industrial
Revolution) aims to achieve human-centric innovations
for the sustainable and inclusive development of global
society and enhance the quality and happiness of human
lives.
 Social implications including ethics, privacy and security
are fundamental issues to the progress of transformation.

4. 4
Social media
RetailsHealth
Mobility
Manufacturing
Energy
EducationScience
Agriculture
Smart phone
phomeation
Maturity
of
ICT
use
Society,
People
University
Engineering
Social
Infrastructure
People, community, politics, industry, SME, government
and academia, through Cyber Physical Systems(CPS)
Transforming Modern Society System

5. 5
●Three basic ideas
●Key Policies
Create Human Wisdom, Maximize National Potential,
and Protect Nation’s Health and Security
Promotion of basic researches
Prioritization of R&D
Prioritized 4 Areas Promoted 4 Areas
Key Technologies of National Importance
S&T System Reform
●Increase in government
R&D expenditure
The total budget for
governmental R&D
expenditure exceeded
$170B<$176B>
●Construction of new
R&D system
・Increase in competitive
research funds
・Support plan for 10,000
post-doctoral fellows
・Promotion of industry-
academia-government
collaboration
・Implementation of
evaluation systems
●Three basic ideas
(i) Creation of wisdom
(ii) Vitality from wisdom
(iii) Sophisticated society by
wisdom
●Key policies
・Strategic priority setting in
S&T
- Promotion of basic
researches
- Prioritization of R&D
・S&T system reforms
- Doubling of competitive
research funds
- Enhancement of
industry-academia-
government collaboration
・Total budget :$240B
<$211B>
・ Quantum-jump knowledge, discovery and creation
based on the free ideas of researchers
・ Basic research in diversified areas
・ Strategic basic research
・ Life Science
・ ICT
・ Environment
・ Nanotech/Materials
・Energy
・Manufacturing Technology
・Social Infrastructure
・Frontier
・Developing, securing and activating human resources
・Creating scientific development and persistent innovation
・Total budget : $250B <$215B>
20 years after Current Legal Framework of
Japan’s STI Policy : S&T Basic Law and Basic Plan
“Science and Technology
Basic Law”: enacted
unanimously in 1995
5

6. 6
 Focus on “innovation policy“ more than past Basic Plans. The 5th Plan is
drawn up based on discussion with various stakeholders in society
including academia and industry.
 Propose new action in preparation for uncertain future:
- ”Society 5.0”; formulates common framework for “Super Smart Society”
to create data-driven innovation and social changes.
- Focus on fundamentals of STI (such as human resources, knowledge
creation) to enhance diversity and flexibility
 Propose two kinds of schemes as R&D promotion measures: Issue-
oriented prioritization (13 socio-economic & global challenges, Ocean &
Space) and technology-oriented prioritization (14 key-technologies
for ”Super Smart Society”
 Promote openness and globalization strategically for functioning STI
systems and creating innovation speedily
 Promote the reform of administration and human resource system in
universities and national R&D institutions
 Challenge for making effective follow-up system (PDCA cycle system) with
the numerical targets and the key indicators
 Write the government R&D investment target clearly (1% of GDP, 26 trillion
yen) Jan. 2016, the Cabinet Office
Features of the 5th S&T Basic Plan
Jan. 2016, the Cabinet Office
6

7. 7
Society 5.0: “Super Smart Society”
A society where the various needs of society are finely differentiated
and met by providing the necessary products and services in the
required amounts to the people who need them when they need them,
and in which all the people can receive high-quality services and live a
comfortable, vigorous life that makes allowances for their various
differences such as age, gender, society and nationality.
Super Smart Society
(Society 5.0)
Service Platform
Reform of
regulations
and systems for
new services
Standardization of
Interfaces and
data formats
Consolidated
development
of ICT
infrastructure
Human
resource
development
(Also,the use of existing positioning
and verification systems)
Integrated materials
development system
Energy value
chains
New manufacturing
systems
Intelligent
transportation
system
Integrated
community care
systems
Resilience against
natural disasters
Hospitality
systems
Infrastructure
maintenance and
renewal
Smart food
chain systems
Global
environment
Information
platform
Smart production
systems
New businesses
and services
Security
advancement
and use in
society
Use of
standard
data
Integration of cyberspace with physical space (“the real world”)
7

8. 8
Reform of companies
=> Provide new values
Improvement of productivity through digitization and reform of business models
are promoted, and at the same time, the new economy and society will be realized
by promoting innovation and globalization.
Reform of individuals
=> Increase the power of individuals
Every individual, including elderly people and women, can live a safe, secure,
comfortable and healthy life, with each and every individual able to realize his/her
desired lifestyle.
Solving social issues
=> Create a better future
Efforts are made to solve a variety of national issues, such as falling population,
super aging society and natural disasters, so that a rich and vigorous future will
be realized. Through overseas expansion of new businesses and services, we
can contribute to solving global scale issues as well.
Aiming at New Economy and Society
Focused on individuals in Society 5.0
8Source: The Japan Business Federation

9. 9
Breakthrough the "Five Walls"
 It is imperative to break through the “Five Walls" to realize the new
economy and society in which discontinuous and disruptive changes are
expected to occur.
Formulation of national strategies and integration
of government promotion system
Development of laws toward implementation of
advanced techniques
Formation of knowledge foundation
Dynamic engagement of all citizens
in new economy and society
Integration of advanced technologies and society
Wall of the ministries and agencies
Wall of the legal system
Wall of human resources
Wall of technologies
Wall of social acceptance
9Source: The Japan Business Federation

10. 10
 Clarify and expand “non-competitive area”
 Promote full scale joint studies on STI strategy
through the cooperation of industry, academia and
government
 Construct an ecosystem of diverse companies
 Enhance activities to expand overseas markets
 Promote human resource strategy
 Reform organizations and awareness
 Reform work style
Industry Initiatives
- Open innovation -
10Source: The Japan Business Federation

11. 11
(参考）
Fund of ¥55 billion was budgeted in FY2013
for the 5-year program.
 Create disruptive innovations which
revolutionize industries and society
through high risk / high impact R&Ds.
 Giving great authority for planning,
acting and managing the program to
Program Manager(PM).
 PM is expected to work as a producer,
not as a researcher.
 Reinforcing the supporting system for
PMs by following the previous
Japanese Big Program, FIRST, with
the help of JST.
― Synergize the US DARPA model
with the Japanese FIRST model ―
Japan Science and
Technology Agency
(JST)
R&D
institution
Proposal and Report Advice and Evaluation
R&D
institution
Selection of
institution
Council for Innovative Research and
Development Promotion
(Ministers, Vice Ministers, Parliamentary
Secretaries, and CSTI Executive Members)
Council for Science, Technology,
and Innovation
(CSTI)
Expert Panel of ImPACT program
(CSTI Executive Members, outside experts)
Program
management
PM
Affiliation
/ support
of PM
Implementation
of R&D
PM
ImPACT (Impulsing PAradigm Change through Disruptive
Technologies Program)
11Source: Cabinet Office

12. 12
(参考）
 Realizing Science, Technology and
Innovation through the promotion of
R&D that overlooks basic research to
application and commercialization by
cross-ministerial cooperation.
 Council for Science, Technology and
Innovation (CSTI) defined the themes
to solve societal issues and achieve
economic growth
 CSTI appoints Program Directors
(PDs) for each project and allocates
the budget.
CSTI
Governing board
(Executive Members of CSTI)
PD (Program Director)
Promoting committee
●PD (chair)
●Related ministries,
●Management agencies,
●Well-informed persons & experts,
Research organizations
Universities,
Corporations,
Research institutes, etc. Established for
each project
SIP(Cross-Ministerial Strategic Innovation
Promotion Program）
Management agency
(Funding agency)
< Governance structure >
Established in 2013
Total ¥50B (budget for FY2016)
Outside Experts
Cabinet Office
Support
12Source: Cabinet Office

13. 13
The Center of Innovation (COI) Program
Vision 1: Smart Life Care, Ageless Society
Secure sustainability as a country advanced in its
aging population and declining birthrate
Research Promotion Institution
Project Leader (from industry)
Research Leader (from academia)
Vision 2: Smart Japan
Create a living environment with a high quality of
life as a prosperous and reputable country
Vision 3: Active Sustainability
Establish a sustainable society with vitality
Visionary
Leader
COI Site
Continuous Creation of
Innovation
BackcastingApproach
UnderOne Roof
Collaboration
Industry / Municipality Academia
Research Division
Business Division
Researchers
Collaboration
Satellites
・Back-casting approach
・System integration/enabling
technology
・Interdisciplinary R&D
・Collaborations with SSH
・Human talents development
Innovation Hubs in Campus
R&D expenses :
¥100M~ ¥1B/year for 9 years 13

14. 14
The Center of Innovation (COI) Program
COI Sites (total 18)
14

15. 15
Integrated AI Research
Concept
• National integrated R&D activities on big data, IoT, AI, and cyber
security, supervised by Dr. Yuichiro Anzai
• Academia-government-industry collaboration
Research Centers/Projects
 CiNet : Center for Information and Neural Networks (@NICT &
Osaka University) Dr. Toshio Yanagida
 AIRC : Artificial Intelligence Research Center (@AIST)
Dr. Jun'ichi Tsujii
 Center for Advanced Integrated Intelligence Research (@Riken)
Dr. Masashi Sugiyama
 AIP : Advanced Integrated Intelligence Platform Projects Network
Laboratory (@JST) Dr. Setsuo Arikawa
Research/Industry Liaison
 Taskforce
Roadmap, capacity development, data platform, entrepreneur’s
incubation

16. 16
World Premier International Research
Center Initiatives (WPI)
16
Origin of
Universe/Earth/Life
earth/Life
Life Sciences Materials/ Energy
Immunology Frontier
Research Center
Osaka Univ.
Kavli Institute for the
Physics and
Mathematics of the
Universe,
Univ. Tokyo
Earth-Life Science
Institute
TiTech
Integrative Sleep
Medicine Institute
Univ. Tsukuba
Institute for Integrated
Cell-Material Sciences,
Kyoto Univ.
Advanced Institute for
Materials
Tohoku Univ.
International Institute for
Carbon-Neutral Energy
Research
Kyushu Univ.
Institute of Transformative
Bio-Molecules
Nagoya Univ.
https://www.jsps.go.jp/english/e-toplevel/index.html
 Top quality of science  Breakthroughs by fusion studies
 Internationalization  Reform of research systems
International Center for
Materials Nanoarchitectonics
NIMS
16

17. 17
Sustainability
Innovation of Social Infrastructure
Business GrowthSafe and Secure Society
Total Solution
Railway System
Building System
Urban Water
Industry・Distribution
Healthcare
Power and Energy
Finance
Government and PublicＯＴ *1
Product, System
ＩＴ
© Hitachi, Ltd. 2016. All rights reserved.
＊1 OT : Operation Technology 制御・運用技術
Social Innovation Business
17

18. 18
Accelerate global collaborative creation with customers
Evolution of Social Innovation Business
Energy
Scale-up using symbiotic ADS platform
・・・
Urban
develop-
ment
Transpor-
tation
Healthcare
Logistics
Mnfg.&
Construction
IoT (Internet-of-Things)
Big data
Build up common platforms, accelerate business expansion
Security
AI
Robotics
Sensing
z x
y
Job
Issue analysis
Operation
Proof of value
Build-up solutionService business
JobJobJobJobJob
ADS: Autonomous Decentralized System 18© Hitachi, Ltd. 2016. All rights reserved.

19. 19
Japan Major Initiatives for Smt Mfg
Smt Mfg: Smart Manufacturing
AIST: National Institute of Advanced Industrial Science and Technology
Robot
Revolution
Initiative(RRI)
WG1: Manufacturing Business
Revolution through IoT
METI
Ministry of Economy, Trade and Industry
SmM Reference-model
Standardization Project
Interrelated
Top-down Approach:
Future vision
Technology
Investigation
Bottom-up Approach:
Practical Use Cases
Civilian Organizations
19Source: Robot Revolution Initiative (RRI)

20. 20
Collaboration Stakeholders of
RRI-WG1 & Int.Std.AG
Int.Std.AG: International Standardization Action Group
Domestic International
RRI-WG1
Int.Std.AG
International Standardization
•IEC
•ISO
•ITU-T
・・・
Civilian Organizations
•IVI “Connected Factories”
・・・
Industrial Association
• The Japan Machinery
Federation “TAKUMI 2.0”
• The Japan Electrical
Manufacturers' Association
“Flexible Business and Mfg”
・・・
National Policies
•Growth Strategy, Society5.0
•SME Support PJ
•R&D: AI, IoT, etc.
・・・
National Initiatives
• Germany
Plattform Industrie4.0
• U.S.
Industrial Internet Consortium
• France
Industrie du Futur
• China
Made in China 2025
・・・
20Source: Robot Revolution Initiative (RRI)

21. 21
JST’s Approach towards SDGs
• Contribute to further consideration on STI for SDGs
including co-scenario making efforts both in Japan
and International arena
• Facilitate dialogue with various stakeholders for
enhancing awareness and encouraging actions
• Conduct study on how STI contributes to achievement
of SDGs
• Develop program portfolio of STI for SDGs
• Systematize JST activities, including surveys &
analyses, research funding, international
collaboration, science education and communication,
in a more holistic manner

22. 22
JST’s SDGs-related Activities
in International Arena

23. 23
Adoption FY 2011, Indonesian project
‘Pilot Study for Carbon Sequestration and Monitoring in Gundih Area, Central Java Province, Indonesia’
CO2 Capture and Storage: Participation of Asian Development Bank
(ADB) to Speed up Social Implementation
PERTAMINA’s
Gundih Central
Processing Plant
115 projects
in
46 countries
S&T Research Partnership of Sustainable Development
(SATREPS) Program
Area
Number of
eligible
countries
Number of
projects
Asia 14 60
Adoption FY 2009 Thai project
‘Innovation on Production and Automotive Utilization of Biofuels from Non-food Biomass’
Development of the Production Technologies of High Quality
Biofuel Using Biomass
23

24. 24
Thank your for your attention
Michiharu Nakamura
Japan Science and Technology Agency