Chart 9. Scientists and engineers engaged in R&D per 10,000 labor force^ 



technical know-how 

 expenditures and 

 receipts 



Althougli receipts for and 

 expenditures on techniccil ioiow-how 

 (royalties and fees) typically are 

 viewed as S/T outputs, Japan his- 

 torically has used licensed technol- 

 ogy to supplement its own R&D 

 efforts. Consequently, Japanese 

 trends regarding royalties and fees 

 are discussed here as an integral part 

 of the country's R&D efforts (they 

 are discussed again in chapter 5 on 

 S/T outputs and impacts). 



In 1970, Japan spent constant $1.4 

 billion on royalties, licensing fees, 

 and other expenses related to im- 

 ported technology. These expendi- 

 tures were 57 percent of what the 

 United States spent in the same year 

 for technical know-how (chart 11). 

 Japan's expenditures for technical 

 know-how in 1970 were 11 percent 

 of total national R&D expenditures, 

 compared to 4 percent in the United 

 States.'' 



Japan has continued to spend a 

 substantial amount on technical 

 know-how. '° Between 1970 and 1985, 



Industry 



Higher 

 education 



Government 



and 



nonprofit 



Chart 10. Number of scientists and engineers 



engaged in R&D by sectors: 1985^ 



[Thousands] 



^U S figures are lull-time equivalents, while Japanese are total numbers ol scientists and engineers engaged in R&O. , 

 SOURCE. National Science Foundation, SRS. table B-8 



i 



"These Japanese royalties and fees data are from 

 tfie Bank of Japan, wfiicti are most comparable to 

 U.S. data because tfiey include transactions for film 

 rights, book royalties, and other cultural items. The 

 Japanese Statistics Bureau also provides technical 

 know-how data, but on manufacturing industries 

 only. These latter data are presented in chapter 5, 

 "Outputs and Impacts," and the differences be- 

 tween the two data series are discussed in footnote 

 43 of that chapter. 



'"Increases in the dollar amount of technical know- 

 how purchases cannot be equated on a one-to-one 

 basis with increases in the actual volume of tech- 

 nology transfer. Because of uncertainties about the 

 market valuaHon of technology, it is possible that 

 increasing expenditures on technical know-how re- 

 flect purchases of less, but more expensive, tech- 

 nology. 



