The Cabinet Approved 7th Science, Technology and Innovation Basic Plan: Targeting 60 trillion yen in total R&D investment

The government approved the 7th Science, Technology and Innovation Basic Plan at a cabinet meeting. The plan shifts away from the siloed, go-it-alone approaches of the past, reorienting policy to enable cross-disciplinary collaboration, and sets out three main pillars: the "revival of science" as a foundation of knowledge, the strategic focus on technology areas, and the organic integration of science and technology with national security.

As an investment target for the five-year period, the plan aims for 180 trillion yen, combining a government R&D investment target of 60 trillion yen (approximately 45 trillion yen in science and technology-related budgets) with private-sector investment.

At the Council for Science, Technology and Innovation (CSTI) held before the cabinet meeting, Prime Minister Sanae Takaichi instructed: "Over the next five years, our Cabinet will work as one to advance policy across the full range from basic research to human resource development, social implementation, and strengthening industrial competitiveness. Outstanding science, technology and innovation is not only the foundation of a strong economy, but also an indispensable foundation for achieving national security objectives. In this plan, we will pursue a transformation of science, technology and innovation policy, including the strategic focus on technology areas and the organic integration of science and technology with national security. To expand investment in basic research, which is the foundation of all this, I would like to ask the relevant ministers to accelerate concrete measures to further strengthen operating grants, KAKENHI and other funding, and to continuously produce top-level research outcomes and highly specialized human resources."

The time it takes to move from basic research to real-world use is decreasing in an exponential manner, science and business are coming closer together, and international competition over disruptive technologies is growing more intense.

Countries are also increasingly linking science and technology policy to national security and working to lock in control of strategic technologies. While other countries have sharply increased their R&D spending, investment in Japan's university sector has stayed flat, and the number of top-cited papers has also stalled.

The research environment also remains inadequate in terms of research time, lack of shared research equipment that can be used independently by new PIs, and lack of research support staff. On top of that, the scale of industry-academia joint research and startup ecosystems is small compared to other countries. Overall, Japan's research capacity and industrial competitiveness have fallen behind other nations. One reason is that both academia and industry have been held back by "siloed structures," "go-it-alone approaches," and "linear models of innovation," and have been slow to make the digital shift needed for the AI era.

To overcome this situation, the government, academia, and industry will work closely together to revamp the science, technology, and innovation promotion system in order to revive basic research capabilities and boldly promote focused investment in strategic technology areas. Management structures that have fallen into organizational "silos" and "go-it-alone approaches" at every level will be changed into a layered structure focused on function. Specifically, it will be necessary to build a world-standard human resource system, create a good cycle of investment and results that supports challenge and innovation, and upgrade the shared infrastructure that produces knowledge and value.

The 7th Basic Plan includes specific contents to be addressed based on six pillars: the "revival of science" as a foundation of knowledge; strategic prioritization of technology areas; organic integration of science and technology with national security; upgrading of the innovation ecosystem connecting industry, academia and government; promotion of strategic science and technology diplomacy; and reform of the promotion system and governance.

Under the revival of science, the plan will open up and lead new research fields, drive the latest international research trends, and build environments that are attractive to people at home and abroad and to the next generation.

The targets include a major expansion of KAKENHI grants and a full shift to a fund-style model to cut administrative burden and protect research time. They also include strengthening of the Fusion Oriented Research for Disruptive Science and Technology program and the Strategic Basic Research Programs.

Also included are new research support and evaluation systems to encourage taking on ambitious work in innovative emerging and interdisciplinary fields, with a goal of doubling the number of challenging research projects to around 13,000. In addition, by securing basic funds and promoting university reforms in an integrated manner, the percentage of research time spent by researchers belonging to research university groups such as the University for International Research Excellence and J-PEAKS will be increased to 50%.

The plan also calls for building data, computing, and application infrastructures needed to advance AI for Science. It aims to set targets of 30,000 long-term overseas placements over five years and 20,000 doctoral degrees per year. In the strategic focus on technology areas, 11 emerging and fundamental technology areas, including digital and cyber security, advanced medicine, and manufacturing and materials, will receive focused budget allocations across ministries and agencies.

AI and advanced robotics, quantum technology, semiconductors and communications, biotech and healthcare, fusion energy, and space are six national strategic technology areas. Support steps for these areas to be carried out in coordination with relevant ministries and agencies will include human resource development, stronger ties with research centers, startup support, and international collaboration.

For the first time in any basic plan, this basic plan includes the organic integration of science and technology with national security.

To allow industry, academia and government to work together on R&D and social implementation of dual-use technologies, new research centers will be set up at universities and national research institutes, and an ecosystem will be built through end-to-end support in the national security field. In particular, in order to formulate key technology areas for economic security and strategically protect and foster technology, the Institute for Key Technology Strategy (tentative name) will be put into operation to establish a comprehensive economic security think-tank function.

In order to enhance research security at universities and other sites, risk management based on procedure manuals, promotion of understanding about ensuring research security and integrity, and support for cybersecurity measures will be provided. In addition, the innovation ecosystem will be upgraded to link the knowledge obtained from universities and national institutes to the creation of industries and the solution of social and global issues.

Steps include end-to-end support for deep-tech startups, the formation of hubs that balance regional economic growth with global reach, and the promotion of the Global Startup Campus initiative.

Treating science and technology diplomacy as a standalone chapter is also a major change. The plan calls for building an open science and technology community through the development of a diverse international research environment and pushing forward the creation of innovation and stronger international ties through science and technology.

Under the reform of the promotion system and governance, the plan calls for a major increase in operating grants for national universities and a review of how they are structured and pushes forward the differentiation of university functions and the right-sizing of their scale.

Strengthening the functions of the Council for Science, Technology and Innovation is also included. However, the reference to the Science Council of Japan as another wheel of the vehicle, which appeared through the 6th plan, is no longer there.

As research funding increases, the research environment will improve and, naturally, the number of high-quality research papers will increase. It would be particularly effective to enhance basic expenses and strengthen research based on the intrinsic ideas of researchers, such as the KAKENHI. The fact that these basic investments are now being made under the Takaichi Cabinet is a big plus for Japanese scientific research. The question is whether it will last.

There is some reassurance as long as the 7th Plan period continues under the Takaichi administration, but if calls for fiscal austerity gain strength, these quiet but important investments tend to get forgotten. Creating many results and achievements in a given period of time is necessary to invest in the next.

Kohei Miyazono (Former Executive Director, RIKEN, and Former Distinguished University Professor at the University of Tokyo): "I hope this basic plan will serve as a turning point in the history of science and technology in our country, aiming for a society in which all people can live lives that are rich in mind and body, full of energy, and full of hope."

Kohei Ito (President of Keio University): "It is necessary to expand R&D investment in key technologies and provide flexible funding over multiple fiscal years, establish a system in which graduate students in science and technology fields are positioned as researchers and paid by the government, and build an international center of knowledge."

Yumiko Kajiwara (Outside Director, SHARP Corp.): "It is important to consider the responsible implementation of investments and reduction of administrative burden on recipients, expansion of investment in personnel costs, enhancement of primary and secondary education, and promotion of citizen science with the participation of the general public including students."

Yasuhiro Sato (Senior Advisor of Mizuho Financial Group, Inc.): "It is essential to strengthen measures that organically link industry, government, and academia. In the future, there is a strong need to strengthen the exchange of human resources between industry and academia and the injection of funds from industry into basic research, as well as to design systems and financial support measures by the public sector to support these efforts."

Hiroaki Suga (Professor, The Department of Chemistry, Graduate School of Science, The University of Tokyo): "In order to not only recover from the delays of the past but also to become a world leader, it is essential for the government to provide continuous support from a medium- to long-term perspective in addition to the utmost efforts of each and every researcher."

Jun Suzuki (Senior Advisor, Teijin Limited): "It is important to implement a shift to investment that allows failure and encourages challenge, and CSTI should lead the way in achieving this as a command center. Until businesses grow to a certain size, government-led market-forming support and support for domestic businesses must be implemented."

Councilor Mutsuko Hatano (Executive Vice President, Institute of Science Tokyo): "Deeper support steps are needed, including expanded investment in people at universities that take on the challenge of change. Japan should move quickly to build a Japanese-style dual-use ecosystem."