ucation sectors conduct comparable shares of national 

 basic research efforts (55-56 percent). (See p. 24.) 



• R&D expenditures in the Japanese higher education 

 sector more than tripled in constant terms from 1965 

 to 1985. These expenditures increased at an average 

 annual rate of 6.1 percent, compared with 3.2 percent 

 in the United States. In 1986, R&D expenditures in 

 Japanese higher education totaled constant $7.3 bil- 

 lion, compared with constant $12.7 billion in the United 

 States. (See p. 24.) 



• For separately budgeted higher education R&D funds, 

 the funds distribution among fields is significantly dif- 

 ferent in Japan than in the United States. The highest 

 concentration of Japanese separately budgeted funds 

 is in the physical sciences (36 percent compared to 12 

 percent in the United States); in the United States, the 

 concentration is in the life sciences (54 percent com- 

 pared to 26 percent in Japan). Japan spends about 20 

 percent of its separately budgeted R&D in engineer- 

 ing, compared to 14 percent in the United States. (See 

 pp. 26-27.) 



• The Japanese ratio of all first university degrees as a 

 proportion of the 22-year-old population was 22.6 per- 

 cent in 1985. This proportion was 25.3 percent in the 

 United States. Although the United States confers a 

 much higher total number of doctorates than does 

 Japan, the overall ratio is similar in both countries (0.5- 

 0.7 percent) when the number of doctoral degrees is 

 measured as a proportion of the 27-year-old age group. 

 (See p. 27.) 



• While the Japanese higher education system annually 

 graduates about the same number of engineers as the 

 United States, it graduates only about one-tenth as 

 many first-degree students in the natural sciences. 

 The distribution of Japanese first university degrees 

 among fields is dissimilar from that in the United States: 

 there is relatively less emphasis on the natural sci- 

 ences (3 percent and 11 percent, respectively) and rel- 

 atively more on engineering (19 percent and 7 percent, 

 respectively). (See pp. 27-28.) 



outputs and impacts 



• According to the Science Citation Index, Japanese re- 

 searchers increased their share of the world's S/T ar- 

 ticles from 5.1 percent in 1973 to 7.6 percent in 1984. 

 Japan's shares of publications are largest in the fields 

 of chemistry, engineering, and physics; they are low- 

 est in the earth and space sciences. (See p. 32.) 



• The Japanese share of S/T articles during the 1973-82 

 period was greatest in the pharmacy subfield, with 

 Japanese publications accounting for 25 percent of the 

 articles written in that subfield. The next largest shares 



were in polymers (18 percent) and marine biology and 

 hydrobiology (14 percent). (See p. 32.) 



• Japan accounts for the largest share of foreign-origin 

 patents in the U.S. patent system. From 1970 to 1986, 

 the share of U.S. patents annually granted to the Jap- 

 anese increased from 4 percent to 19 percent. As a 

 share of Standard Industrial Classification (SIC) prod- 

 uct fields, Japanese patent shares are highest in the 

 office computing machinery, aircraft and parts, and 

 communications equipment and electronic compo- 

 nents product groups. (See p. 33.) 



• Given their total representation in the U.S. patent sys- 

 tem, Japanese patents account for 45 percent more of 

 the top 1 percent most highly cited U.S. patents than 

 expected. The highest citation rates for Japanese pa- 

 tents are in the automotive, semiconductor electron- 

 ics, photocopying and photography, and 

 pharmaceuticals patent classes. (See p. 34.) 



• Japan has made rapid progress in manufacturing pro- 

 ductivity during the past decade; its manufacturing 

 output per worker-hour increased 68 percent from 1977 

 to 1986, compared with a 26-percent increase in the 

 United States for the same period. (See p. 34.) 



• Japan's technological balance of payments worsened 

 in dollar terms from a deficit of constant $1.2 billion 

 in 1970 to constant $1.7 billion in 1985; however, re- 

 ceipts increased threefold from constant $194 million 

 to constant $721 million. In 1985, 42 percent of Japa- 

 nese sales and 99 percent of technical know-how pur- 

 chases were with the United States and Europe; East 

 Asian nations accounted for about 40 percent of Jap- 

 anese technical know-how sales. (See p. 35.) 



• For several manufacturing industries (textiles, chem- 

 icals, iron and steel, and motor vehicles), Japan's tech- 

 nical know-how receipt to payment ratio exceeded 100 

 percent in 1985. For the iron and steel industry, re- 

 ceipts for Japanese technical know-how exceed Japa- 

 nese payments by almost 6 to 1. In no industry other 

 than ceramics did Japanese purchases of technical 

 know-how exceed 8 percent of the respective indus- 

 try's R&D expenditures; in most industries, it was 5 

 percent or less. (See p. 36.) 



• Japanese technology-intensive trade with the United 

 States has markedly improved over the 1965-85 pe- 

 riod. The Japanese trade surplus with the United States 

 in technology-intensive goods increased from current 

 $143 million in 1965 to current $13 billion in 1985. 

 Large trade surpluses existed in 1985 in radio and 

 television receiving equipment, communications 

 equipment, office and computing machines, and 

 professional and scientific instruments; however, Ja- 

 pan had a negative trade balance in aircraft and parts, 

 industrial inorganic chemicals, agricultural chemicals, 

 and drugs. Japan similarly has increased its world 

 share of technology-intensive trade from 7 percent in 



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