“innovationalizing ” government investment: japan’s new … · 2018. 12. 7. · investment:...

Council for Science, Technology and Innovation, Cabinet Office

“INNOVATIONALIZING” GOVERNMENT INVESTMENT: JAPAN’S NEW STI POLICIES

2018.12.Abe Global Forum

Takahiro Ueyama, Ph.D.Full-time Member of the Council for Science, Technology and Innovation,

Cabinet Office, the Government of Japan


Dr. Kazuhito HASHIMOTOPresident,

National Institute for Materials Science

Yoshihide SUGAChief Cabinet Secretary

Takuya HIRAIMinister of State for Science

and Technology Policy

Masatoshi ISHIDAMinister for Internal Affairs

and Communications

Taro ASOMinister of Finance

Masahiko SHIBAYAMAMinister of Education, Culture, Sports, Science and Technology

Hiroshige SEKOMinister of Economy, Trade and Industry

Dr. Motoko KOTANIProfessor,

Tohoku University

Dr. Juichi YAMAGIWA President,

Science Council of Japan

Cabinet MembersChairperson

Head of an Affiliated Organization

※ Relevant ministers are appointed as ad-hoc members when needed to attend plenary session meetings of CSTI

Administrative Structures for STI Policy in Japan Members of CSTI

Shinzo ABEPrime Minister

Mr. Masakazu TOKURA Representative Director & President,

Sumitomo Chemical Co., Ltd.

Dr. Takahiro UEYAMA Former Vice President & Professor,

National Graduate Institute for Policy Studies

(Full-time Position)

Dr. Seiichi MATSUOPresident,

Nagoya University

Dr. Yoshimitsu KobayashiDirector of the Board & Chairperson,Mitsubishi Chemical Holdings Corp.

Ms. Yumiko KajiwaraCorporate Executive Officer,

Fujitsu Ltd.

2


l Serioussocietalchallenges• decliningbirthrateandrapidlyagingpopulation• GapandSeparation b/wlargeenterprisesandSMEs,urban

andruralarea• Uncertaintyforsocialandeconomicalsustainablegrowth

l HowcanJapanovercomethesechallenges?• 5thScienceandTechnologyBasicPlan(Apr.2016)• Anewconcept“Society5.0isahypotheticalsolutiontoour

serioussocietalchallenges• Making “Society 5.0” and 5th Basic Plan a reality

Societal Challenges We Should Overcome

3


Newsociety“Society 5.0”

Society 1.0 Hunting & gathering

Society 2.0 Agricultural

Society 3.0 Industrial

Society 4.0 Information

Realize the advanced fusion of cyberspace and physical space,To balance economic advancement with the resolution of social problems,Bring about a human-centered society

What is “Society 5.0”?

4

Council for Science, Technology and Innovation, Cabinet Office ※TheseDatabasesarereferenceexamples

○ThedevelopmentofIntelligentTransportSystems(ITS),OptimizedEnergyValueChains,andNewManufacturing(monozukuri)Systemsascoresystemsof11systems,cooperatingwithothersystems,buildingplatforms tofacilitate thecreationofnewvalue

○ ConstructionandUtilizationofDatabasesasaFoundationfortheCreationofNewValuesandServices○ ReinforcingBasicTechnologies (e.g.,AI,IoT,bigdataanalysis)thatUnderlie thesePlatforms

●Promotion of intellectual property strategies and international standardization●Promotion of regulatory and institutional reforms and fostering social acceptance

●Promotion of skills development and personnel development

Databases

New Services

Energy Value

Chains

Manufacturing Systems

Smart Production

Systems

Smart Food Chain

Systems

IntegratedMaterial

Development Systems

Hospitality Systems

Comprehensive Regional Care

Systems

Disaster Prevention and

Reduction Systems

Geographical Environmental CybersecurityMedical Materials

Infrastructure Maintenance

System

Global Environment Information Platforms

Systems

Intelligent Transportation

Systems

Basic TechnologyAI, IoT, big data processing technologies,

cybersecurity, etc.

Representation ofPlatforms forRealizingSociety5.0

PlatformsforRealizing“Society5.0”asaNewSocialModeofProductivity

5


I

All types of data will be gathered from sensors installed throughout physical space via IoT. This Big Data will be analyzed by AI, and the results will then be fed back in physical space.② This massive amount will be accumulated in cyber space

① All types of data will be gathered from sensors installed throughout physical space

④The results will be fed back in physical space in robots, automatic-driving cars, etc.

③ Big data will be analyzed by AI that exceeds the capabilities of humansBigData

Cyberspace

AnalysisArtificial

Intelligence

high-value-added information, proposals, or equipment operating instructions, etc.

environmental information, equipment operating status, or people-related information, etc.

AutomaticDriving

Robots AutomaticDelivery

＝SensorsPhysicalspace

AdvancedFusionofCyberspaceandPhysicalSpace

6


Policy challenges we should address

1. Need to make the concept of Society 5.0 into a reality

2. Need to recover from the downward trend of Japan’s research capability during the recent decade

2. Need to expand the STI related investment in the Government Budget

3. Need to make our own policy initiatives which in order to hook up S&I into innovation process

7


l NeedtoexpandtheGovernmentR&DInvestment

undertheSeriousFinancialConstraints

• Seriousnationaldebtandfinancialdeficit

• Socialsecurityexpenditurecontinuestoriseby1trillionyen

everyyear

• Promise:CombinedpublicandprivatesectorR&Dinvestment

ofatleast4%ofGDP;governmentR&Dinvestmentofatleast

1%ofGDP

Financial Challenges We Should Overcome

8

Council for Science, Technology and Innovation, Cabinet Office Source: OECD, Main Science and Technology Indicators Database, February 2018.

1.10

1.70

1.96

2.07

2.10

2.22

2.38

2.79

2.93

3.29

4.23

0.76

0.48

0.64

0.44

0.67

0.77

0.62

0.67

0.82

0.51

1.00

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

RussianFederation

UnitedKingdom

EuropeanUnion(28)

China

EuropeanUnion(15)

France

OECDTotal

UnitedStates

Germany

Japan

Korea

R&DIntensitybyGovernment(%) R&DIntensityTotal(%)

R&D intensity (R&D expenditure as a percentage of GDP)

Current Status related to STI: R&D Intensity

9


（estimated by the Cabinet Office）

Required level of budget (initially)

900 billion yen（300 billion yen/fiscal year)

Budget for local governments (the same level as FY2017)

Supplementary Budget (Largest in the past 10 years)

Government R&D

investment

︵trillion yen

︶ FY 2016

3.5 3.5 3.8 4.1 4.4

0.5

0.5

0.4

1.1

4.4 Trillion yen

Targeted government R&D investment in FY2020= 6 Trillion yen

FY 2017 FY 2018 FY 2019 FY2020 （fiscal year）

Need to increase S&T-related budget by 900 billion yen over 3 years (300 billion yen per year) in order to meet the government R&D investment targets (1% of GDP, 6 trillion yen) by FY2020 (the final year of the 5th Basic Plan)

Need a significant increase in S&T-related Budget!

Budget Level: Government R&D Investment=1% of GDP

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v Definition and identification of “STI budget” within all governmental programs and projects

v Cross-ministerial (cross-departmental) approach of government’s budget- Considering STI within the whole GB- Securing the necessary budget to create the innovation ecosystem via government’s investment

v Exploring research structure of national institutions- Collecting all financial and personnel data of national universities and national institutes- Institutional Research Environment

Evidence-Based Policy Making

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1Sinceitrepresents acompilation ofthepreliminary reported valuesfromeachministryandagencyexcludestheportion ofpublicworksexpensesthatiscurrentlyundetermined(recorded intheSpecialAccountforSocialCapitalDevelopmentProjects toFY2013),thissummarywillbesubjecttochangewith futureexamination.

2 Valuesinparentheses ()represent initial budgetfiguresforFY2016.3Foruniversities,etc.subsidiesforadministrativeexpensesforprivateuniversitiesandthelikeareconsidered tobeincluded inoperatingexpensegrantsfromFY2015.

Japan’sR&DInvestment

JPY18,133,600million=18trillion

(FY2011)MIC“SurveyofResearchand

Development”

Contents and portfolios need to be constructed in order that government investment in R&D will prime the pump for R&D investment throughout the entire country.Through the use measures such as administrative project review sheets, we should confirm a concrete overall picture of STI policy with the aim of both maximizing the effects of investment and enhancing policy objectives and sectors deserving of expansion.For science and technology-related budgets for universities etc. (which account for two-thirds of the total), we should consider collecting necessary information specific to individual policy objectives and sectors.

Overseas Overseas

Private Universities

JapaneseGovernment

Industry

34%

30%

3… 1.18TrillionYen(95.0BillionEuro)

1.05TrillionYen(84.3BillionEURO)

1.26TrillionYen(101.9BillionUS$)

FY2017Budget:Total3.84Trillionyen(US$34.9Billion)

ImplementeddirectlybyMinistries

ResearchInstitutesandFundingagencies

Universities

Investment in Japanese R&D and Government Investment in R&D

12


Current Status related to STI in Japan S&T Budgets distributed to Ministries

64.615.6

3.53.13.0 2.5

2.1 1.81.6 1.4 0.5 0.4

MinistryofEducation,Culture,Sports,ScienceandTechnology(MEXT)

MinistryofEconomy,Trade

andIndustry(METI)

MinistryofHealth,LabourandWelfare

(MHLE)

MinistryofDefense

MinistryofAgriculture,Forestry

andFisheries(MAFF)

CabinetOffice

Source: Bureau of Science, Technology and Innovation, Cabinet Office (2017)

FY2017Budget:Total3.49Trillionyen(EURO28.1Billion)

It is necessary to know details of budgets distributed to ministriesIn order to analyze effectiveness of each STI policy

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Image of government activities in view of R&D and innovation

＜Fixed and certain activities＞

Provision of fixed administration services

＜New and uncertain activities＞

Research, Development,Investigation

Implementation, ndustrialization,Intellectual property, Standard et

al.

1

2

8

4 5 63 7

Activities which utilizes the outcome of science and technology

DiffusingSpreadingIntroducingIntroducing

PublicrelationsCommon

Knowledge

Procurementof

Capital Goods

expendablesand

capital goods

TrainingProcurement,

ofhuman resources

Equipmentof

organization

Estimation

Back officeduties

Managementand operation

OperatonalBasic Budget For Universiy

Activities related with implementation of knowledge or method new to the subjects


v Classification of S&T Budget based on FRASCATI and OSLO Manual of the OECD v Scrutinized over 5000 Programs and Project of all Ministries using “administrative project review sheets

v IdentifyingthetotalnationalinvestmentonS&Tbyusingcomprehensivedataofgovernment’sbudgetv Identifying“innovationrelatedprograms”whichwillenhance thediffusionandimplementationof

scientifictechnologiesinthesociety.v Identifyingpolicytargetstoaccelerate “IntegratedNationalInnovationStrategy”

Category of S&T Budget

Content S&T Budget

AResearch & Development, Projects for Implementation, Intellectual Property,

StandardizationApplicable

B Budget related to University, R&D, Implementation, Commercialization, etc. Applicable

C

Preparatory Programs for Research, Investigation, R&D, Standardization, Implementation, etc.

Standardization for Measurement, Regulation, and Fact-finding: Collection of Data, Creating Database

Applicable

D1 Programs which promote new scientific technologies (hitherto not well utilized) Applicable

D2 Programs which promote new methods (hitherto not well utilized) excluding S&T N/A

E Programs which promote already known but not yet well implemented N/A

F Others N/A

Redefinition of Government Budget for Science and Technology

15

Council for Science, Technology and Innovation, Cabinet Office 16

Policy Target to Implement the Basic Plan for STI

Council for Science, Technology and Innovation, Cabinet Office 17

Policy Target to Implement the STI for SDGs


Conceptual Challenges of CSTI policies

vRedefinition of Innovation as STI concept

- Innovation: not directly connected to economic value

vWhat the government can do

- keeping potential seeds of innovation, disseminating and diffusing its outcome and leading to economic value

- Policies for intellectual property

- Policy for Government procurement

- Standardization both of concept and research seeds

- “Innovationalization” of government budget

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l CreationofOptimalSocioeconomicStructureforSociety5.0Ø Currentrigidstructure⇒ flexibleandagilestructure

l TotalrenovationonSTIPoliciesØ Background:GlobalgamechangeofinnovationmechanismØ Wayforward:BreakawayfrompasttrajectoryofSTIpolicies

cf.’The5thScienceandTechnologyBasicPlan’,‘ComprehensiveStrategyonSTI2017’

Keyconcept=IntegrationofSTIpoliciesex.- comprehensivestrategiesSourceofInnovation⇒CreationofInnovation⇒ Implementation⇒Globaldeployment- Coordinationamongrelatedcontroltowerscf.CSTI,IT,Space,Ocean,Health,etc.

2018 Integrated Innovation Strategy - Basic Concepts

19


2018 Integrated Innovation Strategy – Action 1:Renovating Innovation Ecosystem

l Renovating“Knowledge-IntensiveCluster”“RenovationofR&Dmanagement“

Ø UniversityreformasthecoreforK/Icluster• Re-definitionofNationalUniversities

• Universities as“centralhubs”forinnovation,businesscreation, social-contribution

• Modificationofuniversityconcept cf.“investment target”• IntroductionofERP(Enterprise Resource Planning)

cf.NationalUniversities=86, NationalResearch Institutions=27

• Thegovernanceandmanagementofuniversity• Enhancingtalentedhumanresources• Institutionalfundingtothebasicfinanceofuniversity• Challengesbeyondbordersex.large-scaleacademia-private

collaboration,internationalR&Dcollaborations20


○ A new system was developed for distributing part of the management expenses grants to National Universities to support the universitiesʼ efforts to further strengthen their strong points in the following three areas.

Allocation for FY2017

This funding framework will support the reforms of theuniversities and accelerate the speed of the reforms.

Category 1 : Contribute to regional areas (55 univ.)

Category 2 : Specialize in specific fields (15 univ.)

Category 3 : Perform outstanding educational and research activities at world-class standards (16 univ.)

○ Each national university selected one area for which they wished to receive extra funding, and set out their visions, strategies, and KPIs accordingly.

○ Overall, 298 strategies were made and over 2,000 KPIs were set in order to evaluate the processes leading to the reform of 86 national universities.

○ The outcomes of the KPIs will be evaluated annually to determine the amount of the funding for each year.

○ Based on the evaluation results of the KPIs, the amount of funds allocated to each university were increased or decreased by the percentages as shown in the table.

+10% or more

+0-10% -0-10% -10-20% -20% ormore

Category 1 3 univ. 25 univ. 22 univ. 5 univ. 0 univ.



For example, among the 55 universities that selected Category 1, 3 received the highest evaluation and their funding was increased by 10%.

New Framework for Funding National Universities (2016-2021)

21


2018 Integrated Innovation Strategy – Action 2 : Identifying the Path of Knowledge Creation

l 3pillarmodelcf.“Datafusion”=“SourceofInnovation“

Ø SocialData=PlatformforSociety5.0• Comprehensive architecture designon“cross-field” and“field-

specific”datalinkageplatformscf.data-interface, semanticdata,applications,datamarket, cybersecurity,privacy, related inter/intradiscipline,etc.)

• Globallinkagecf.NIEM(US),FIWARE (EU)

Ø AcademicData=Promotionofopen(closed)science• Ex.Dataadministrationguideline formachine/AI-readable research

data⇒“reverse MI”,“datadrivenbioresearch”

Ø OfficialData=quasi-UtilityFunctionmodel• Ex.Evidence,basedoncomprehensive analysesonR&Dfundsand

outputs fromgovernmental STIprojects,etc.

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Data Infrastructure as a Source of Innovation

Physical Space Data Infra.

農業データ

自動運転データ

センサーデータ

エネルギー物流・商流インフラ防災地球環境海洋、宇宙

健康・医療・介護データ

ものづくりデータ

・物流・農業・建設

・インフラ・防災・減災

・健康・医療・介護

Society 5 . 0実装イメージ

人生100年時代安全・安心生産性革命

分野間データ連携基盤

サービスポータル機能（検索, ﾌﾟﾗｲﾊﾞｼｰ保護等）

共通管理機能（語彙,カタログ等）

分野横断連携機能（認証認可, ﾃﾞｰﾀ接続等）

分野毎データ連携基盤

当面、11分野で整備を進め、相互運用性を確保

Research Data Infra.

論⽂

エビデンスデータベース

EBPM Infra.

公的統計等データ

論⽂、特許等書誌データ

国⼤・研発⽣データ

レビューシート

ﾃﾞｰﾀｸﾘｰﾆﾝｸﾞ・機微情報加⼯

基幹業務システム

アプリケーション

EBPM、EBMgt

Private Company

Researchers Gov. Univ. Insti.

データ連携データ連携

エビデンスに基づく政策⽴案、法⼈運営の促進

財務会計⼈事給与業績管理・助成⾦管理

Social Data Academic Data Public Data

公開・蓄積管理・保存

検索・利用

データ公開基盤

データ検索基盤

データ管理基盤

長期保存対応ストレージ領域

研究データ（実験・観測データ

等）大学

Creating and Sharing Grand Design of Data Policy: Standardization and Confirmation

新たな研究の創発・異分野連携・研究不正防⽌

研究

機関

研究

助成機関

学会等

23


l Scrutinize all of the Government Program

l Converting the non-STI programs to STI-related ones

- Introduction of advanced technology to the conventional government programs- government procurement of goods, services, and constructions by government agencies- Introduction of the viewpoint of science and technology innovation

for human resource development project

Convention policies for STI programs

l CSTI certifies the converted programs for STI that each ministry registered to the Cabinet Office

l The CSTI supports the certified projects in budget assessment process in cooperation with the Ministry of Finance

Conversion Policy of Science, Technology and Innovation: A way of “Innovationalizing” Government Budget

24


①）Introducing state of art technology into the public works

④）Creation of Medical Information Infrastructure

Government

MecicalBig

Data

Pharma

ResearchesSensor

③）Diffusion of new technologies in private sectors

Ministry of Agriculture, Forestry and Fisheries: Encouraging the Robotics, ICT technologies, etc.

Big Data

Agricultural Robots

②）Introducing advanced technology in Government programs

業の内容を⾒直し、先進技術を導⼊、実証。これにより事業の効果・効率性が向上するとともに、先進技術の普及を後押し。例えば、総務省ではビッグデータ等を活⽤し、⽕災延焼シミュレーションを⾼度化。科学的検証に基づく⽕災延焼予測を実施可能に。

◎Ministry of Land, Infrastructure, and Transport:”i-Construction”

実験や過去の⽕災データ

Big Data

シミュレーションを活⽤した⽕災防ぎょ計画の策定

リアルタイムでの⽕災リスク予報気象データ３次元設計データ等により、ICT建設機械を⾃動制御し、建設現場をIoT化。

Public works i-Construction

Medical Information Database of electrical medical records etc. as the basis of Big Data Medical Infrastructure

Examples of Conversion Policy for STI

25


2018 Integrated Innovation Strategy – Action 32pillars:“Privatesector”cf.Startups,“PublicSector”reforml Privatesector

Ø Original/UniqueR&Dstartupecosystems• Globallevelprivateenterprises cf.affordable funds,knowhow,

networks.• Strengthinbasicscience• public-private collaborationtradition,diligentculture,etc.

Ø ComprehensiveEcosystem:Seeds/PoC/launchi/Expand/Exit, etc.University/Riken/Sansoken⇒NEDO/JST⇒INCJ/A-FIVED⇒Private fund/Global Enterprises⇒IoP/Buyout

Ø “Moonshot”projectcf.awardssystem/R&D/commercialization

l PublicSector :innovationingovernmentprojectsandadministrationsØ GovernmentProcurementGuidelinecf.i-ConstructionØ InstitutionalReformex.Medicinepricing/medicalpayment

system26


Integrated Innovation Strategy – Prioritized Fields (1/3)

l AITechnology=5pillars:R&D/HR/BIGData/Venture&Implementation/EthicsØ Humanresourcesdevelopmentinalllevels

• AIasbasiccommunicationtoolas‘reading,writing,arithmetic’,with‘nooneleftbehind’basis

Ø R&D： Humaninterface,minutedataAI,accountableAI,combinationwithRobots

Ø BIGData:Society5.0dataarchitecture/academic datapool/etc.

Ø “Human-centeredAIsocialdiscipline”cf.G20in2019l Biotechnology

Ø FormulationofnewBiotechnologystrategybysummer2019• Key=Shiftfromdeductive toinductiveapproaches withAIandbig

data• Strength:3TOPAIcenters/abundantbio-resources/advanced

fermentation technology,etc.27



l SafetyandSecurity

ØKey:increasingseverityofnationaldisaster/FukushimaExperience

ØNationalResiliencePlan2018cf.45probablecases/techsolutionpossibility

ØUtilizingwiderangeofJapan’sSTI• earlydetectionandwarningsystemofthetorrential

heavyrainfallandinundation,cross-ministerialdisasterinformationsharingplatform,etc.

• predictionandmitigationofEarthquake,Tsunami,typhoon,landslide,volcaniceruption,etc.

28



l AgricultureØ OpenValuePlatformonAgriculture

Developmentofsmartagriculture,anddeploymentofsmartfoodchainsystems,domesticallyandinternationally

Ø AdvancedAgriculturePolicy:Protection⇒Export⇒ForeignInvestment

l EnvironmentandEnergyØ Key:GlobalgamechangeafterParisAccordØ Priorityare

-Comprehensive energymanagement systems=‘EnergyInternet’- Unique thehydrogensocietyex.utilizationofammonia- Competitive Renewable energy=equivalentcostwithfossilfuel

l OtherimportantfieldsØ PromotionofSIPprogram,especiallyinthefieldsoflight

quantum,medicine,oceanic,space,etc.29


Thank you for your attention!

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“innovationalizing ” government investment: japan’s new … · 2018. 12. 7. · investment:...

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