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• W1601091254 abstract "It's been 10 years since Japan's Science and Technology (S&T) Basic Law was enacted. Japanese policymakers have accomplished many of the reforms needed to build the world-class science and technology infrastructure they believe is needed to maintain a strong, growing, competitive economy. The reforms, though sometimes small and incremental, are one factor in Japan's recent economic expansion. Its real GDP grew by 2.7 percent in 2005, making it the fastest growing of the G-7 economies. The OECD stated in its July 2006 survey that it expects the Japanese economy to remain strong with real GDP expanding 2.8 percent in 2006 and 2.2 percent in 2007. The International Monetary Fund also predicts a growth rate close to 3 percent this year. In the near-term, Japan's fortunes are quite positive. Japan also has improved its overall financial picture, which has stimulated economic growth. Its banks are healthier, with nonperforming loans down to 2.4 percent of total outstanding loans in 2005. Its companies are stronger with improved profits and balance sheets. Excess capacity has shrunk. Land prices have bottomed out and begun to rise. And, labor costs have improved. Japan's overall research and development spending continues to be higher than that of most of its major competitors. Spending on R&D as a percent of GDP in 2004 reached 3.15 percent compared to an average of 1.9 percent in the European Union, with only Finland (3.51 percent) and Sweden (3.74 percent) higher than Japan. In the United States, R&D spending reached 2.59 percent of GDP, exceeding Germany (2.49 percent), France (2.16 percent), China (1.44 percent), and Korea (2.63 percent). According to the OECD, Japan remained the second largest R&D spender worldwide in 2004 when calculated using purchasing power parities. Japan accounted for 13 percent of the world's $836 billion spent on R&D, behind first-place U.S. at 38 percent and barely ahead of China at 12 percent. Germany (7 percent), France (5 percent), the United Kingdom (4 percent) and Korea (3 percent) were the next largest. Long-term Hurdles Japan still faces major economic hurdles in the long-term. It must deal with mounting demographic pressures (e.g., a declining labor force and a rapidly aging population) and a high public debt. And, Japan has to deal with the major development of the 1990s--the rapid emergence of other Asian S&T powers. For example, while China spent just 17 percent of what Japan spent on S&T in 1991, by 2003 China spent 74 percent. According to the National Science Foundation, while Japan remains the largest foreign filer of U.S. patent applications, applications from China and eight other Asian countries (South Korea, India, Indonesia, Malaysia, Philippines, Singapore, Taiwan, and Thailand) rose 800 percent from 1990 to 2003 compared to a 75 percent increase from Japan. Moreover, while the number of first university degrees in science and engineering in Japan grew from 284,617 in 1991 to 384,529 in 2002, the rate of growth for similar degrees in China between those years was much faster (181,770 to 357, 282). Japan recognizes that, in order to overcome these hurdles, advances need to be consolidated, reforms must continue, and the economic challenge posed by its Asian neighbors faced. Therefore, in April 2006, Japan began its third five-year plan to implement its Science and Technology Basic Law. Japanese policymakers, determined to keep their nation competitive, called for continuous intensive investment in S&T to create competitive new industries to generate high-quality employment, increase people's income, increase tax revenue, and minimize environmental and societal burdens. New 5-Year Plan How does this plan differ from the previous two? The first five-year plan to implement the S&T Basic Law was completed in 2000. It called for an expansion in R&D. …" @default.
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• W1601091254 date "2006-11-01" @default.
• W1601091254 modified "2023-09-23" @default.
• W1601091254 title "Japan's Fortunes Turn Positive as Third 5-Year Science/tech Plan Begins" @default.
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