Priorities for Realization of Science and Technology Innovation - Recommendation on Political Issues Requiring Immediate Response/CRDS-FY2007-SP-01
Executive Summary

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 recommended that the realization of science and technology innovation should be a top-priority political issue in Japan.
This strategic proposal extracted five factors of innovation that require urgent response and political issues of each factor as follows along with priorities of social visions towards the realization of science and technology innovation and proposed them as political issues that require urgent response.

1. Supply of risk money
Persistent supply of funds (allocating a small portion of pension and postal savings to venture capitals and outsourcing the operation to a private specialized institution), appointment of specialists to government organizations, creation of angels as mentors, improvement and expansion of tax system for donations

2. Creation of innovation-oriented market and design of the system
2.1 Design of innovation-oriented system
Introduction of a mechanism to promote distribution of intellectual property rights, induction of innovation by using regulations, standardization of technologies eyeing global development, coordination between companies for global markets, implementation of projects to enhance trust in innovation
2.2 Innovation-oriented public procurement
Revision of a competitive bidding qualification system, improvement and expansion of SBIR (Small Business Innovation Research), building of functions that match emerging needs and seeds, reexamination of voluntary measures in Japan surpassing the WTO Government Procurement Agreement from perspectives of innovation, procurement strategy to promote innovation

3. Improvement of mobility of human resources, formation and strengthening of networks
Improvement and expansion of incentives to promote mobility of human resources necessary for innovation (relaxation of conditions of application for incentive (or qualified) stock option, elimination of factors inhibiting mobility of human resources necessary for innovation (introduction of researchers of public research institutes to 401k Defined Contribution Plan), cultivation of entrepreneurship among students and faculty members at universities, research institutes, etc., formation and strengthening of networks, improvement of accepting foreigners and support system

4. Establishment of regional innovation ecosystem (RIES) from new perspectives.
Securing of critical mass for creation of innovation, promotion of “place establishment” in unit of state to be introduced as social innovation towards promotion of decentralization of power, promotion of integration and restructuring of national, public and private universities/public research institutes within the state and promotion of support measures such as setting a special quota for subsidies of operational expenses towards establishment of regional COE

5. Vitalization of “place” of innovation by “creation of knowledge”
Formation of COE that leads the world innovation, promotion of high-target and high-risk research with strong social impact, utilization of pooled facilities and equipment to establish innovative research environment, promotion of reform of universities responsible for “creation of knowledge,” vitalization of “place” by private companies, contribution to creating “place” of global innovation