university-industry-government co- 

 operation in research. Also affiliated 

 with Monbusho is the Japan Society 

 for the Promotion of Science, a se- 

 migovemmental organization which 

 provides (among other services) 

 funds for cooperative research proj- 

 ects and fellowships for interna- 

 tional scientific researchers. 



Ministry of international trade and 

 industry. MITI is well known for its 

 role in industrial policy and regu- 

 lation; however, it also plays an ac- 

 tive part in promoting Japanese 

 industrial R&D. Within MITI, the 

 Agency for Industrial Science and 

 Technology (AIST) sponsors a vari- 

 ety of projects to develop technol- 

 ogies with potential commercial 

 value. (These projects are further 

 detailed on p. 66.) Much of this work 

 is carried out in 16 national and re- 



gional industrial research institutes 

 administered by AIST. AIST is also 

 responsible for administering spe- 

 cial incentives — such as conditional 

 loans, tax deductions, and special fi- 

 nancing — for technology develop- 

 ment in the private sector. The Japan 

 Key Technology Center, a public 

 corporation affiliated with MITI/ 

 AIST, helps finance certain joint in- 

 dustrial R&D projects. 



government funding 



Ministerial R&D budgets are com- 

 posed of: (1) funds for ongoing re- 

 search-related operations and 

 personnel costs of government re- 

 search institutes and higher educa- 

 tional institutions, (2) funds for 

 research promotion — primarily in the 



form of external grants, and (3) funds 

 for the special energy budget initi- 

 ated in 1977. 



Monbusho and STA have the larg- 

 est budgets, accounting for 47 per- 

 cent and 27 percent, respectively, of 

 the Government's total R&D budget 

 (chart 14). MITI is the third largest 

 funder (13 percent); followed by the 

 Ministry of Agriculture, Forestry, and 

 Fisheries and the Defense Agency (4 

 percent each); and the Ministry of 

 Health and Welfare (2 percent). While 

 most of Monbusho's funds are com- 

 mitted to the ongoing operations of 

 the university system, STA's funds 

 are equally divided among the three 

 funding components listed above. 



The Japanese Government spends 

 the largest portion of its budget — an 

 estimated 47 percent in 1985 — on the 

 general objective of "advancement 



Chart 14. R&D budgets of key Japanese ministries and agencies: 1985 



I 



Ministry of Healtli and Welfare 

 (2%) 



Defense Agency 

 (4%) 



All otfiers 

 (3%) 



Ministry of 



Agriculture 



(4%) 



Ministry of 



International Trade - 



and Industry 



(13%) 



Ministry of 



Education, Science, 



and Culture 



(47%) 



Science and 

 Tectinology Agency 



(27%) 



SOUflCE- National Science Foundation, SRS, table B-11 



13 



