Japanese R&D Expenditures on the Rise

Japanese R&D funding increased last fiscal year for the first time in four years. The country’s total R&D spending rose 1.6% in fiscal 2012 (ending March 31, 2012) to ¥17,379 billion ($217.2 billion = ¥80 = $1), according to the annual R&D survey of the Statistics Bureau of Japan’s Ministry of Internal Affairs and Communications. The survey was conducted in May 2012. R&D expenditures as a percentage of GDP increased from 3.56% to 3.67%. Survey results were published in December 2012, and the NSF’s Tokyo Regional Office reported them in January.

The survey was sent to approximately 13,700 firms that conduct R&D activities in Japan and have at least ¥10 million ($125,000) in assets. The survey’s return rate was 85%. All of the 3,700 universities that were sent the survey responded. The survey was also sent to approximately 1,100 public and nonprofit research organizations, 99% of which responded. Research spending reflects the most recent reporting period ending before or on March 31, 2012.

Following a 0.2% increase in fiscal 2011, the amount of R&D performed by industry rose 2.2% to ¥12,271.8 billion ($153.4 billion) in fiscal 2012 to account for nearly three-quarters of Japan’s R&D spending. The amount of R&D performed by universities also increased, rising 3.1% to ¥3,540.5 billion ($442.6 million) after declining 3.3% in fiscal 2011. However, R&D performed by nonprofits and public organizations decreased 6.0% to ¥1,566.8 billion ($195.9 billion). This was the third consecutive year that R&D performed by nonprofits and public organizations has declined, following decreases of 0.5% and 2.7% in fiscal 2010 and fiscal 2011, respectively.

In fiscal 2012, industry increased R&D investments by 2.5% to account for 82% of Japan’s R&D funding. Government R&D funding fell 2.3% to comprise 19%. Direct investment from foreign sources jumped 8.7% but made up less than 1%. In fiscal 2011, investments by industry and foreign sources increased 0.4% and 3.9%, respectively, while government spending fell 5.4%.

By field, life science represented the largest category of R&D spending in fiscal 2012. Life science spending rose 1.0% to ¥2,772.5 billion ($346.6 million) to account for 16% of all R&D expenditures. Environmental and energy R&D spending increased 0.3% and 5.1%, respectively, to each make up 6% of total spending. However, R&D spending for nanotechnology fell 6.0% to account for 5% of total spending.

R&D spending for all types of research increased in fiscal 2012. The biggest increase was for basic research, for which spending rose 2.8%. Developmental research spending and applied research spending increased 1.9% and 0.6%, respectively.

Although Japan’s number of researchers increased 0.2% in fiscal 2012 to 84,440, the number of total R&D personnel, including research assistants, technical staff and administrators, declined 0.7% to 1,057,600. Researchers, research assistants, technical staff, and administrative and other personal made up 80%, 7%, 5% and 8% of Japanese R&D personnel, respectively.



Bar Graph: Total Japanese R&D Expenditures

FY08 ¥18,943.80

FY09 ¥18,800.10

FY10 ¥17,246.30

FY11 ¥17,110.00

FY12 ¥17,379.10


Column Chart: FY12 Japanese R&D Expenditures by Field

Life Science Environment Nanotechnology Energy

FY10 ¥2,705.40 ¥1,040.70 ¥907.30 ¥965.60

FY11 ¥2,774.00 ¥1,037.90 ¥939.30 ¥956.30

FY12 ¥2,772.50 ¥1,040.90 ¥882.90 ¥1,004.60


Pie Chart: FY12 Japanese R&D Spending

Developmental Research 62%

Applied Research 23%

Basic Research 15%


Column Chart: FY12 Japanese R&D Expenditures by Source

Industry Government Foreign

FY10 ¥13,682.50 ¥3,495.70 ¥68.10

FY11 ¥13,732.00 ¥3,307.20 ¥1,665.90

FY12 ¥14,069.60 ¥3,232.60 ¥1,566.80
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