Integrated Innovation Strategy

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Integrated Innovation Strategy provisional translation Integrated Innovation Strategy 1 Contents Introduction 3 (1) Positioning of the Fifth Basic Plan and Comprehensive Strategy 2017 ............... 3 (2) Evaluation of Current Status and Necessity of Integrated Innovation Strategies ....... 3 (3) New Strategy Formation Process and Structure ................................. 5 CHAPTER 1: General 6 (1) Status of the Action on the Fifth Basic Plan and Comprehensive Strategy 2017 ........ 6 (2) Global Trend ............................................................. 10 (3) Our Strength in the Context of Game-Changing Developments .................... 12 (4) Basic Concept of an Integrated Strategy ....................................... 14 (5) Future Issues ............................................................. 15 CHAPTER 2: Source of Knowledge 16 (1) Construction of the Cross-domain Exchange Platform towards the Society 5.0 Realization ........................................................................... 17 (2)Construction of Data Infrastructure for Open Science ............................ 22 (3) Evidence Based Policy Making/Promotion of University Corporation Management ... 28 CHAPTER 3: Knowledge Creation 31 (1) Creation of Innovation Ecosystem with University Reform and such ............... 34 (2) Strategic R&D (SIP, PRISM, ImPACT) ....................................... 46 CHAPTER 4: Social Implementation of Knowledge 50 (1) Startups ................................................................. 52 (2) Promotion of Innovation in the Government Projects/Systems .................... 57 CHAPTER 5: Global Deployment of Knowledge 63 (1) Promotion of Science, Technology and Innovation for Achieving SDGs (STI for SDGs) 66 CHAPTER 6: Major Fields to Be Enhanced 70 (1) AI Technology ............................................................ 72 (2) Biotechnology ............................................................. 81 (3)Environment and Energy ................................................... 87 (4) Safety and Security ........................................................ 92 (5) Agriculture ............................................................... 97 (6) Other Important Fields .................................................... 102 List of Abbreviations ......................................................... 106 2 Introduction (1) Positioning of the Fifth Basic Plan and Comprehensive Strategy 2017 The Fifth Science and Technology Basic Plan (Approved by the Cabinet in January 2016. Hereinafter referred to as “the Fifth Basic Plan”), based on the results and through issues for the 20 years after the First Sciences and Technology Basic Plan, making our country “The most innovation-friendly country in the world” was held up to be materialized as “Super Smart Society =Society 5.0”1(”Plan” in PDCA Cycle). Regarding the adoption of the Fifth Basic Plan, the “Comprehensive Strategy on Science, Technology and Innovation 2017” (Approved by the Cabinet in June of 2017. Hereinafter referred to as “Comprehensive Strategy 2017”) states that in particular, the realization of "Society 5.0" and the steady implementation of the "Public-Private Investment Expansion Initiative of STI"2, are of great significance ("Do" in PDCA Practical Cycle). (2) Evaluation of Current Status and Necessity of Integrated Innovation Strategy Three years have passed since the formulating of the Fifth Basic Plan, and progress is being made in many domestic fields. Meanwhile, as an unprecedented disruptive innovation 3 is developing worldwide, it has been pointed of relative level down of STI innovative capability in Japan. While fundamental game changes4 such as knowledge merging, rapid advances of disruptive innovations, changing roles of entrepreneurship, e.g. the rapid expansion of so-called “platforms” and their advances into the real economy, the exposure to the battle for innovation supremacy, and the transgression towards a sustainable economy are occurring globally at all levels, the limitations of advancing science and technology innovation policies as an extension of past measures have been revealed. Japan is pressed to reconsider its entire socioeconomic system with its organizations, structures, enterprises conducts, customs, and ways of working that Japan has built up for so many years. At the same time, five and a half years after the adoption of the so-called Abenomics, initially, aiming at the sloughing off from deflation and the increase of wealth, the so- called "three arrows", a policy package consisting of monetary and fiscal policies, as well 1 In the Fifth Basic Plan, “provide the needed things・to persons needing things at the needed times as much as needed, thus being able to receive high-quality services by everyone overcoming such differences as age, gender, region, language and the society to be able to vividly and comfortably live” are intended and “the human-centered society to be able to for people to enjoy quality living full of vitality and comfort compatible with economic development by providing things and services, coping finely and attentively with a variety of needs and those of latent and dormant, cyberspace and physical space highly merged” in the Comprehensive Strategy 2017. 2 CAO, "Report of Socioeconomic and STI Vitalization Council"(December 2016) 3 "Disruptive Innovation" in “The Innovator’s Dilemma”(Written by Clayton M. Christensen, Audited by Shunpeita Tamada, Translated by Yumi Izuhara, 2001, Shoeisha) 4 Refer Chapter 1 (2) from 1 to 4 3 as a growth strategy, was carried out. In 2015, policies with the aim to realize a "Dynamic Engagement of All Citizens" were introduced ("The New Three Arrows"). At the end of 2017, policies such as the productivity revolution were compiled into the "New Economic Policy Package". Today, with the progress of structural changes, the improvement of the employment situation, and the revitalization of business activities, Japan's economy continuous to recover in many areas. However, switching our eyes to the future, our country's labor productivity ranked the lowest in G75, it shall be feared that the international competitiveness as seen in the sudden drop in various rankings. As the innovation including those of scientific technologies-induced would hold the key of growth of developed countries, improving these capabilities dramatically and increasing its productivity greatly is an urgent issue that needs to be tackled in order to ensure the sustainability of the Abenomics' actions. The Society 5.0 as proposed in the Fifth Basic Plan envisions a grand concept to build a human- centered society that through the utilization of STI will not only contribute to the increase in productivity, but whose significance will start to gain global attention in times of growing disparity divide and trends towards data-ism. In order to realize these plans in the context of a rapidly changing and ever evolving world, societal change towards a so-called "Next-Generation- type System of Balance"6 will be necessary. An alert, dynamic, active system that can quickly respond to change and always looks for an optimal solution has to be constructed (hereinafter referred to as the "Next-Generation-type System of Balance"). To make this possible, it needs a unified government with strong willpower, and an "Integrated policy package" that is capable of boldly changing the entire socioeconomic system. On that occasion, while boldly envisioning what might be important in the uncertain future, the key to create "the most innovation-friendly country in the world" lies in the fundamental reorganization of all the elements that sustained "the stability of our existing system" such as an excellent real economy, intellectual assets including technological seeds, universities and human resources, all in accordance with the world's changing environment. Therefore, in the FY of 2018, at the halfway point of the Fifth Basic Plan, in addition to confirming and evaluating the progress status of various measures ("Check" of the PDCA cycle) of the "Comprehensive Strategy 2017" and other actions, we will verify policies and socioeconomic systems 5 In 2016 Japan's labor productivity is 20th in OECD member countries and at the bottom in G7 countries (OECD Stat). 6 In his book authored by Masahiko Aoki “Toward Comparative Institutional Analysis (New Edition)” on Page 4 (Translated by Hirokazu Takizawa, Kazuhiro Taniguchi, 2003, NTT Publishing), “Rule by Rule of Game” the system is conceptualized by Douglas North's thinking by quotation and written “the most appropriate method is to conceptualize the system as equilibrium of game” 4 that are widely related with STI, and develop a "Integrated Innovation Strategy" (hereafter referred to as "Integrated Strategy7"), which will be carried out as the "Action" (Improvement) phase of the PDCA cycle. (3) New Strategy Formation Process and Structure Japan is a developed country that is facing many challenges 8 , e.g. declining birth rate, aging population, widening of regional disparities, mature economy, and stricter financial constraints. In order to achieve sustainable growth through innovation, the "design" of the strategy formation process and the implementation structure itself has to be reviewed and limited resources need to be utilized at maximum by shifting from an optimization model focusing on parts of the system to an optimization model targeting the entire system. For this purpose, firstly, after the government gets a better understanding of the entire domestic socioeconomic
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