Jan./2007
(STRATEGIC PROPOSALS)
Proposal for Realization of Science and Technology Innovation - Overview of National Innovation Ecosystems and Related Political Issues/CRDS-FY2006-SP-11
Executive Summary

This proposal recommends the roles that Japan should play and the measures in order to improve the environment that enables science and technology innovation.

The Center for Research and Development Strategy (CRDS) has defined science and technology innovation as “To Create Novel Social and Economic Values Based on Scientific and Technological Knowledge” and concluded that the innovation that Japan should address and promote as a political issue is science and technology innovation. Science and technology innovation is a process of high uncertainty that can be achieved after overcoming various trials and errors and ingenious attempts and it does not occur by research and development that pursues only short-term achievement alone.
Japan’s roles are to improve the environment in which science and technology innovation is easily induced and to connect the achievement of research investment in accordance with the basic scientific and technological plan with creation of innovation. Based on this claim, this proposal first surveyed the environment in which science and technology innovation is easily induced and, based on this, described political agenda and recommendations to respond to them.

1. Overview of science and technology innovation
In order for scientific knowledge and technological seeds to be connected with science and technology innovation, various “factors” need to function and coordinate with each other in the process of innovation.
We summarized factors that contribute to innovation in the five factor groups as follows and presented a bird’s-eye view of these groups in a figure centering on three steps of innovation (“Entrance,” “Place” and “Exit”) and three factors which are indispensable in each step of innovation (“Human Resources,” “Funds” and “Knowledge, Wisdom and Insight”).
(1) “Creation of Knowledge”
(2) “Mobility of Human Resources, Network”
(3) “Supply of Risk Money”
(4) “Creation of Innovation-Oriented Market, Design of the System”
(5) “Regional Innovation”

2. Political issues and proposals for science and technology innovation
In order to make sure that these factors of innovation effectively function, coordinate with each other and realize science and technology innovation, various innovation-related organizations need to get actively involved in the realization and operation of these factors. Here, we classified the related organizations into the following three groups and summarized political issues and proposals for these organizations in relation to the factor groups that contribute to science and technology innovation.
(1) Governmental organizations (policymaking organizations, related government offices and ministries, fund allocation organizations, etc.)
(2) Research implementing organizations (universities and public research institutes, scientific organizations, etc.)
(3) Private companies, etc. (leading companies, R&D-oriented small companies, venture companies, R&D-oriented NPOs, venture capital firms, angel funds, etc.)