• The share of Japanese R&D devoted to basic research 

 has declined over the past 10 years. In 1975 and 1980, 

 basic research accounted for 15 percent of Japanese 

 R&D expenditures; however, by 1985 this share had 

 declined slightly to 13 percent. In the United States, 

 basic research as a share of total R&D remained con- 

 stant during 1975-85 at 12-13 percent. (Note that the 

 data for Japanese and U.S. basic research are some- 

 what less comparable than those for total R&D ex- 

 penditures.) (See p. 4.) 



• By 1985, the distribution of total R&D funds within 

 the two countries by character of work was very sim- 

 ilar. In 1985, Japan devoted 25 percent of its R&D to 

 applied research and 62 percent to development; these 

 shares for the United States were 22 percent and 66 

 percent, respectively. (See p. 4.) 



• Japan traditionally has imported foreign technology 

 to supplement its own R&D efforts. Japan's expen- 

 ditures on royalties, licensing fees, and other expenses 

 related to imported technology in 1970 were 57 per- 

 cent of what the United States spent in the same year 

 for technical know-how. Although Japan has contin- 

 ued to purchase a substantial volume of technical know- 

 how (payments for royalties and fees increased 71 

 percent between 1970 and 1985), R&D has outpaced 

 such expenditures. Consequently, the ratio of Japa- 

 nese payments for technical know-how to R&D de- 

 creased from 11 percent in 1970 to 7 percent in 1985. 

 Japan's exports of technical know-how increased 

 threefold during 1970-85, improving the percentage 

 of receipts to payments from 14 percent in 1970 to 30 

 percenr in 1985. (See pp. 7-8.) 



science and 

 engineering (s/e) 

 personnel 



• With about one-half of the U.S. population and labor 

 force, Japan had slightly more than 1.5 million em- 

 ployed nonacademic scientists and engineers in 1985, 

 compared with almost 3.6 mOlion in the United States 

 in 1986. Japan has fewer nonacademic scientists and 

 engineers relative to its labor force than does the United 

 States. This condition is attributable to the lower ab- 

 solute and relative levels of scientists in Japan than in 

 the United States — Japan had 28 percent as many sci- 

 entists in 1985 as the United States had in 1986. How- 

 ever, Japan had 187 engineers per 10,000 labor force 

 compared to 183 in the United States. (See pp. 5-6.) 



• Both countries experienced significant increases from 

 1980 to 1985/86 in the stock of nonacademic scientists 

 and engineers relative to increases in the labor force. 



The Japanese stock of scientists and engineers grew 

 61 percent, with the number of scientists doubling 

 (mostly due to increases in computer specialists) and 

 a 50-percent increase in the number of engineers (prin- 

 cipally increases in electrical/electronic engineers). The 

 U.S. experience was similar: increases of nearly 50 

 percent or more were registered in most categories of 

 scientists and engineers, with computer specialists in- 

 creasing 119 percent and electrical/electronic engi- 

 neers increasing 50 percent. During this 5-year period, 

 the size of the labor force in both countries increased 

 5-10 percent. (See p. 6.) 



• The total number of Japanese R&D scientists and en- 

 gineers engaged in R&D has tripled since 1965; in 

 1986, it was 405,600— one-half the U.S. 802,300 full- 

 time equivalent. The ratio of Japanese R&D scientists 

 and engineers per 10,000 labor force was about one- 

 third the U.S. ratio in 1965, but by 1986 the two ratios 

 were comparable at 67-69 scientists and engineers per 

 10,000 labor force. (See p. 6.) 



government r&d 



• The Japanese Government's share of total national 

 R&D funding reached its peak (33 percent) in 1972; 

 since then, it has declined fairly steadily to its 1985 

 level of 21 percent. The U.S. Government's share of 

 national R&D funding is much higher, although it also 

 declined between 1970 and 1985, dropping from 57 

 percent to 48 percent. (See p. 9.) 



• Despite its declining relative contribution to total na- 

 tional R&D resources, the value of Japanese Govern- 

 ment expenditures steadily increased during the last 

 2 decades, reaching constant $7.6 billion in 1985, com- 

 pared to U.S. Federal funding of constant $46.0 bil- 

 lion. (See p. 9.) 



• The Japanese Government's S/T budget has received 

 high priority in the last 5 years in spite of an envi- 

 ronment of fiscal restraint, and has expanded faster 

 than overall government funding. From 1980 to 1985, 

 Japanese Government R&D funding increased at an 

 average annual rate of 3 percent compared with a 

 higher 6-percent average annual rate in the United 

 States; however, 90 percent of this growth in U.S. 

 federally funded R&D is accounted for by defense- 

 related R&D expenditures. (See p. 9.) 



• S/T policy in Japan is largely the result of four insti- 

 tutions: the Prime Minister's Council for Science and 

 Technology; the Science and Technology Agency (STA); 

 the Ministry of Education, Science, and Culture (Mon- 

 busho); and the Ministry of International Trade and 

 Industry (MITI). Monbusho and STA have the largest 

 budgets, accounting for 47 percent and 27 percent, 

 respectively, of the Government's total R&D budget. 



