Paper short abstract:

Japan's Science, Technology and Innovation (STI) policy is under increased pressure due to declining scientific performance and intensified geopolitical tensions. Thus, the Japanese government aims at dynamic changes. This paper examines measures, priorities and challenges to effectively transform Japan's innovation system, using recent data from a "Performance Monitoring” project.

Paper long abstract:

Science, technology and innovation are critical to Japan's economic competitiveness. In recent years, Japan's scientific performance has declined and the Japanese government is increasingly aware of the risk of being left behind in international competition. The Covid-19 pandemic has revealed several weaknesses in Japan, particularly in the field of STI. The fact that Japan was not involved in the development of Covid vaccines that were brought to the market had a significant shock effect on the Japanese government. International studies have identified Japan's weak integration into international research networks as one of the primary reasons behind this weakness. The Japanese government openly acknowledges this and other weaknesses of the country's innovation system and emphasises the urgent need for STI reforms to bring Japan back on a successful track. Implementing the “Society 5.0” concept of an inclusive and (digitally) interconnected society is one of the priorities.

Geopolitical tensions, intensified by the war in the Ukraine, are contributing to an accelerated shift of Japan's STI policy. This shift includes protecting and expanding Japan's technological sovereignty vis- à-vis China in key areas, increasing R&D cooperation with partner countries such as the USA and European countries that share similar values, and focusing on basic research and disruptive innovations. As a result, the Japanese government has presented a series of new reform proposals and is revising its strategies in the fields of AI, quantum technologies, bio- and material sciences. Overall, the Japanese innovation system is expected to undergo dynamic changes in the coming years.

This paper examines Japan's STI policy reform measures and priorities and the challenges ahead to effectively transform Japan's innovation system. This paper uses recent data from the project “Asia-Pacific Research Area (APRA) Performance Monitoring“, jointly carried out with colleagues from Fraunhofer ISI, GIGA and DAAD, and funded by the German Federal Ministry of Education and Research (BMBF).