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Learning the R&D System:
Industrial R&D in Japan and the
Uniter! States
Prepared by the
Office of Japan Affairs
Office of International Affairs
National Research Council
NATIONAL ACADEMY PRESS
Washington, D.C. 1990
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NOTICE: The project that is the subject of this report was approved by the Governing Board of the
National Research Council, whose members are drawn from the councils of the National Academy of
Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the
committee responsible for the report were chosen for their special competencies and with regard for
appropriate balance.
lhis report has been reviewed by a group other than the authors according to procedures approved
by a Report Review Committee consisting of members of the National Academy of Sciences, the
National Academy of Engineering, and the Institute of Medicine.
The National Academy of Sciences of the United States is a private, nonprofit, self-perpetuating
society of distinguished scholars engaged in scientific and engineering research, dedicated to the fur-
therance of science and technology and to their use for the general welfare. Upon the authority of the
charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the
federal government on scientific and technical matters. Dr. Frank Press is president of the National
Academy of Sciences.
The National Academy of Engineering of the United States was established in 1964, under the
charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is
autonomous in its administration and in the selection of its members, sharing with the National
Academy of Sciences the responsibility for advising the federal government. The National Academy
of Engineering also sponsors engineering programs aimed at meeting national needs, encourages edu-
cation and research, and recognizes the superior achievement of engineers. Dr. Robert M. White is
president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure
the services of eminent members of appropriate professions in the examination of policy matters per-
taining to the health of the public. The Institute acts under the responsibility given lo the National
Academy of Sciences by itS congressional charter to be an adviser to the federal government and,
upon itS own initiative, to identify issues of medical care, research, and education. Dr. Samuel O.
Thier is president of the Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to
associate the broad community of science and technology with the Academy's purposes of furthering
knowledge and advising the federal govemment. Functioning in accordance with general policies
determined by the Academy, the Research Council has become the principal operating agency of both
the National Academy of Sciences and the National Academy of Engineering in providing services to
the govemment, the public, and the scientific and engineering communities. The Research Council is
administered jointly by both Academies and the Institute of Medicine. Dr. Frank Press and Dr. Robert
M. White are chairman and vice-chairman, respectively, of the National Research Council.
Available from:
Office of Japan Affairs
National Research Council
2101 Constitution Avenue, NW
Washington, DC 20418
Printed in the United States of America
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OFFICE OF JAPAN AFFAIRS
Since 1985 the National Academy of Sciences and the National Academy
of Engineering have engaged in a series of high-level discussions on
advanced technology and the international environment with a counterpart
group of Japanese scientists, engineers, and industrialists. One outcome of
these discussions was a deepened understanding of the importance of promot-
ing a more balanced two-way flow of people and information between the
research and development systems in the two countries. Another result was a
broader recognition of the need to address the science and technology policy
issues increasingly central to a changing U.S.-Japan relationship. In 1987 the
National Research Council, the operating arm of both the National Academy
of Sciences and the National Academy of Engineering, authorized first-year
funding for a new Office of Japan Affairs (OJA). This newest program ele-
ment of the Office of International Affairs was formally established in the
spring of 1988.
The primary objectives of OJA are to provide a resource to the Academy
complex and the broader U.S. science and engineering communities for infor-
mation on Japanese science and technology; to promote better working rela-
tionships between the technical communities in the two countries by develop-
ing a process of deepened dialog on issues of mutual concern; and to address
policy issues surrounding a changing U.S.-Japan science and technology rela
. .
tlons. :llp.
Stay
Martha Caldwell Harris, Director
Tom Arrison, Research Assistant
Maki Fife, Program Assistant
Consultant, Sabina Javits
Eleanor Westney of MIT and Lois Peters of Rensselaer Polytechnic Institute
participated in the discussions and contributed to the report.
. . .
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COM]ViITTEE ON JAPAN
The Committee on Japan has been established to advise the Office of
Japan Affairs on its programs and to assist in defining the contribution that
He Academies can make in enhancing U.S. interests through science and
technology exchange with Japan.
Harold Brown, Chairman
Johns Hopkins Foreign Policy Institute
Daniel Okimoto, Vice-Chairman
Stanford University
Justin Bloom
Technology Intemational, Inc.
Lewis Branscomb
Harvard University
Mac Destler
University of Maryland
Ellen Frost
United Technologies Corporation
Lester Krcgh
3hI Company
James Merz
University of Califomia, Santa Barbara
Yoshio Nishi
Hewlett-Packard Company
Terutumo Ozawa
Colorado State University
Ex Officio Members:
Gerald Dinneen, Foreign Secretary, National Academy of Engineering
William Gordon, Foreign Secretary, National Academy of Sciences
1V
Susan Pharr
U.S.-Japan Relations Program,
Reischauer Institute
John D. Rockefeller IV
U.S. Senate
Richard Samuels
MIT-Japan Science and
Technology Program
Roland Schmitt
Rensselaer Polytechnic Institute
Hubert J. P. Schoemaker
Centecor, Inc.
Ora Smith
Conductus, Inc.
Susumu Tonegawa
Massachusetts Institute of Technology
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INDUSTRIAL R&D IN THE UNITED STATES AND JAPAN
Beckman Center
March 1-2, 1990
U.S. PARTICIPANTS
Roland Schmitt
(CoChairman)
Rennselaer Polytechnic Institute
Udo Axen
Upjohn Company
Harvey Berger
Centocor, Inc.
Justin Bloom
Technology Intemational, Inc.
F. Peter Boer
W. R. Grace
Mary L. Good
Allied-Signal, ~c.
Donald L. Hammond
Hewlett-Packard Co. (retired)
Robert J. Hermann
United Technologies
John P. McTague
Ford Motor Company
Michael J. Mintz
Dow Chemical Japan, Ltd.
Geoffrey Nicholson
3M Company
Hubert J. P. Schoemaker
Centocor, Inc.
Barry Whalen
MCC
JAPANESE PARTICIPANTS
Sogo Okamura
(CoChairman)
Tokyo Denki University
Morio Ikehara
Protein Engineering Research Institute
Satoshi Irnai
Honda of America Manufacturing
Tokuta Inoue
Toyota Motors
Reichi Iokibe
Protein Engineering Research Institute
Tatsuya Kimura
Nippon Steel Corporation
Furnio Kodama
National Institute for Science and
Technology Policy
Kiyoshi Nagai
Toshiba Corporation
Tsuneo Nakahara
Surnitomo Electric Industries, Inc.
Yoichi Ogawa
Fuji Xerox Co., Ltd.
Yasutsugu Takeda
Hitachi Ltd.
Michiyuki Uenohara
NEC Corporation
v
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Preface
The Office of Japan Affairs of the National Research Council organized a
series of workshops on the differences and similarities in the working envi-
ronment for research in Japan and the United States with a grant from the
U.S.-Japan Foundation. Understanding these differences is essential in order
to expand U.S. scientists' and engineers' access to Japan's R&D system and
to enhance mutually beneficial collaboration between the two countries.
This report highlights major themes from the third workshop in the series
from "Coexistence in a Technological World: Cooperation and Competition
in R&D." Reports are available of the first two meetings, held in 1989, that
dealt with universities and national laboratories. This report covers the third
meeting, "Industrial R&D in Japan and the Unitecl States," held on March 1
and 2, 1990, at the Beckman Center the West Coast facility of the National
Academies of Sciences and Engineering. The report was prepared by the
staff of the Office of Japan Affairs to record insights gained from the meet-
ing, including preparations and follow-up research. U.S. participants in the
meeting, as well as the Japanese co-chairman, reviewed the draft and made
useful suggestions, but the report does not represent a consensus of partici
. . ~ .
pants nor IS it a conference proceec legs.
. .
V11
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