The Time to Change Japanese Universities Is Now: Plenary Meeting of the PEAKS Support Forum

The third plenary meeting of the PEAKS university support forum was conducted online, where discussions were held on the construction of a startup ecosystem and the allocation of the 10-trillion-yen fund for operations. Although politicians and top executives from industry, universities, national research institutes, and the relevant ministries and agencies participated and conveyed a shared sense of crisis, there was a wide difference in perception of it.

Takayuki Kobayashi, Minister of State for Science and Technology Policy, opened the meeting by saying, "We will establish a 10-trillion-yen fund within the fiscal year to create world-class universities. We will create a new flow of funds by pricing university-specific intellectual assets through the creation of a research environment where researchers will gather because they want to conduct research in Japan, as well as governance reforms that will allow investment in young researchers and new fields. We will also seek growth strategies from universities towards this end. We will formulate a comprehensive promotion package within this fiscal year to firmly support universities that are strong in specific fields and universities that serve as regional hubs."

Member of the House of Representatives Akira Amari said, "One of PEAKS' strategic goals is to turn Japan into a country with an ecosystem of innovation. To make full use of the assets that universities possess, we have built a research database with 86 national universities and nearly 40 national research institutes. Companies all over the world are calling for access to Japan because they want to reach this treasure trove of ideas. PEAKS is a forum for the Japanese industry to conduct joint research with universities and other institutions, where they can meet and exchange honest opinions. I think motivation here is much weaker than in Europe, the United States, or emerging Asian countries. There is no "animal spirit" in the Japanese business community, so to speak. I would like to encourage people to take advantage of this forum."

Speaker of the House of Representative Kisaburo Tokai said, "In an interview, Dr. Manabe, who won the Nobel Prize this year, stated that the reason for his trip to the United States was, 'I can't do what I want to do when I return to Japan, and I can't stand the pressure of Japan's synchronization.' I would like university officials to rethink whether the environment in Japan is in such a state that led Dr. Manabe to say such things. I hope that you will have a sense of crisis in that Japan will never be able to rise up if we do not do what we should do with our current opportunity."

The establishment of the 10-trillion-yen fund has been led by Amari and Tokai, so they have great expectations for the universities. In response, Masakazu Tokura, chairman of the Japan Business Federation (Keidanren), enthusiastically said, "The distance between society and science is shrinking more than ever in modern times. In addition to the collapse of ecosystems through phenomena like global warming and COVID-19, social issues such as rapid digitization cannot be discussed without scientific knowledge. Universities have a wide range of knowledge, and an extremely important role to play in society as a knowledge hub. Industry, too, will actively engage in the creation of innovations with an 'animal spirit'."

On the other hand, Hideo Ohno, president of Tohoku University, said, "The institutional framework of national universities has failed to become a framework for increasing public goods due to the difficulty of expanding functions. Reforms cannot be promoted due to problems in the system itself. I would like you to urgently advance reforms not just in a few places but broadly, in order to form a group of research universities that can compare with global standards." As the Act on General Rules for Incorporated Administrative Agencies is based on German law, there are obstacles even before attempting reforms. PEAKS' Accounting and Asset Utilization Working Group pointed out that revisions to the law are needed to ensure long-term borrowing and bond issuance, investment in holding companies, use of stock acquisition rights, establishment of statutory funds, and stable financial resource carryovers beyond the medium-term target period. "There is a need for fundamental reform, including the development of new laws," said Shigeki Kusa, chief investigator.

Member of the House of Representatives, Masaaki Taira also said, "It is important to carry out all the reforms described in the working group report at once, rather than proceeding with them one by one. The Cabinet Office should consider what should be done to that end." Shunichi Tano, president of the University of Electro-Communications, expressed his hope, saying, "The current debate is all about governance, but there are various ways to actually change the educational and research system. In order to push forward with reforms by drawing ideas from various universities, I would like for all universities, not only certain large universities, to be able to apply for top university support."

The Secretariat replied, "Governance is just a means to an end. What is important is how to break through the layered structure of universities. As a result of that, we want to support each university and each region while making the top universities part of the core." In response to this, House of Representatives member Amari said, "There is a misunderstanding about academia. At universities around the world, there is no increase in subsidies from the national governments, but the budget for basic research is increasing. Intellectual assets are being funded and then put into basic research. In Japan, the funds are vastly different from those of other countries. Therefore, in 40 to 50 years' time, each university will allocate funds to be able to compete with universities in other countries. There is no point in creating funds if they are allocated equally. Please show me your willingness to evolve and your results. The policy is to allocate funds according to the results."

Seiichi Matsuo, president of Nagoya University, said, "Considering the critical situation in Japan, it would be fatal if the universities cannot change now. The national policy must be matched by the universities and the university groups. In each region of the country, the universities and the university groups must become a driving force. We would like to discuss this from the viewpoint of cooperation between the whole region and the university, etc."

Tatsuo Ushiki, president of Niigata University, said, "One of the missions of graduate schools is to create an interdisciplinary field, but establishment deliberations and other efforts pose hurdles. In addition, they have issued an integrated report on accounting to the management council, but many point out that it is difficult to understand. There is also a need to eliminate the accounting bottlenecks, and there are differences in understanding between regions when collaborating with local communities. We need to reexamine the viewpoints of local communities." With regard to the startup ecosystem, the World Bank's Victor Mulas gave a lecture on Japan's system, pointing out that "although there is great potential, you are not making use of it," and saying that there was a need to change the mindset by providing practical entrepreneurship education within the universities.