should carefully consider Article 35.
21
Our experience is that inventors are generally becoming more savvy about their rights to the financial rewards of their inventions
II. NATIONAL SCIENCE FOUNDATION, TOKYO REGIONAL OFFICE
In addition to Professor Kneller’s seminal work,
22
the National Science Foundation’s “NSF” Tokyo regional office also is a source for developments in Japan related to nanotechnology, IP, and technology
transfer, including AIST.
23
Most relevant to the issue of technology transfer in Japan, with a sampling of current activities, is former NSF Tokyo Director William A. Blanpied’s recent report.
24
In this report, he specifically pointed out is a separate section the “particularly noteworthy” developments at AIST:
Although most of current interest in technology transfer in Japan is focused on transfers from the academic to the industrial sector, better utilization of the research results of national
laboratories is also being emphasized. The extent of this activity seems to have increased since April 2001, when virtually all government laboratories became independent administrative
organizations. The case of the National Institute for Advanced Industrial Science and Technology AIST is particularly noteworthy. . . .
25
Blanpied’s NSF report also notes the following dramatic changes at AIST relating to collaborations with private industry, patent licensing, and venture capital we provide five direct quotations from the
report: 1 “The new AIST receives baseline funding from Ministry of Economy, Trade and Industry
METI, which replaced MITI on April 1, 2001. However, these funds are not intended to be sufficient to support all research activities in AIST’s centers and institutes. Because of this
shortfall, directors of AIST research units are strongly motivated to collaborate with, and seek support from, private industry. AIST also derives income from so-called entrusted research
projects from industry and on royalties obtained from licensing its patents.”
2 “According to Kazunobu Tanaka, a member of AIST’s Board of Trustees, the culture of AIST has changed considerably since April 2001. Researchers are now thinking more in terms
of conducting industrially-relevant research, rather than basic research undertaken for the sake of their own curiosity. There is also a great deal more interdisciplinary research that is,
research involving personnel from several AIST units, as well as substantial collaborative research with private companies.”
3 “Cooperation between AIST’s research units and privately-owned Japanese companies has increased considerably since April 2001. As of March 31, 2003, 400 researchers from private
industry were detailed by their companies to work full time in AIST.”
4 “The fact that Japanese companies have significantly increased the number and value of the licenses obtained from AIST suggests that the research conducted in AIST units is regarded as
being at least interesting and, perhaps, even useful to private industry.”
5 “The old AIST permitted its researchers to establish start-up companies based on the research they conducted in AIST institutes. However, only eleven such firms were created
between January 1988 and March 2001. In contrast, seven start-ups were established during
21
Id.
22
See note 13, supra.
23
N
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, Policy and Scientific Reports, available at http:www.nsftokyo.orgreports.html last visited Aug. 23, 2004.
24
William A. Blanpied, N
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, Technology Transfer in Japan: An Overview and Sampling of Current Activities, Spec. Sci. Rep. No. 03-03 Jul. 8, 2003, available at http:www.nsftokyo.orgssr.html.
25
Id.
JFY 2001, the first year of the new AIST; and four more were established during the first seven months of JFY 2002. . . . Although AIST receives its baseline support from METI, it appears
that MEXT is also impressed with its technology-transfer activities. AIST has received a substantial grant from MEXT to explore the problem of how to create effective spin-off firms
and make effective use of venture capital funds. MEXT also provides partial support for incubators for several start-up companies in Tokyo’s expensive Marunouchi district.”
26
Dr. Blanpied has authored another important report on Japanese technology plans and has highlighted recent changes.
27
In this Report, Blanpied stresses the many changes at AIST including a wave of research evaluations which “have been an important factor in altering the outlook of AIST
researchers.
28
Prior to 2001 many, perhaps even a majority, paid too little attention to the fact that the research they were supposed to conduct was intended to be relevant to industry and society.
29
Blanpied states that “[n]ow that these researchers are obliged to think about having their work evaluated, many
appear to be paying more attention to the roles they should play as AIST researchers.”
30
This report also reviews the “sweeping change” at AIST in the “research centers” and “research institutes.”
31
The “research centers” have finite lifetimes ranging from three to seven years and focus on specific, short-
term problems. In contrast, the “research institutes” have an indefinite lifetime and are to concentrate on basic research of interest to industry. The Report provides important comments on the independence of
AIST:
There is considerable difference of opinion about how independent AIST really is from METI. However, there seems to be a broad consensus that the conversion of the AIST system to an
independent administrative agency and its reorganization into centers and institutes has been beneficial. For example, it is now possible for company-based researchers to work within the
AIST centers and institutes, which was not possible prior to April 1, 2001. Also, there is now a considerably greater degree of cooperation with industry. Finally, AIST now has authority to
undertake new types of initiatives without first obtaining permission from METI. For example, AIST has established its own TLO and is also providing support to several venture businesses
which were created by AIST researchers but are still being incubated within the institute.
32
Another important NSF Tokyo office report is “Nanotechnology in Japan.”
33
The report was prepared by Rajinder P. Khosla, Director, Electronics, Photonics and Device Technologies Program in the
National Science Foundation’ Directorate for Engineering. Dr. Khosla states about AIST and international outreach again, we provide direct quotations from the Report:
1 “Japan is aggressively pursuing international collaboration through the AIST, JSPS, and JST. AIST has a special International Affairs Department under the leadership of Dr Hiroshi
Miyamoto. They have additional technical staff and researchers who are assigned for a one to two year-term to work in this area. The International Affairs Department is focusing on
bringing qualified scientists and engineers from around the world to work in AIST.”
26
Id.
27
William A. Blanpied, N
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, The Second Science and Technology Basic Plan: A Blueprint for Japan’s Science and Technology Policy, Spec. Sci. Rep. No. 03-02 May 19, 2003, available at
http:www.nsftokyo.orgssr.html.
28
Id.
29
Id.
30
Id.
31
Id.
32
Id.
33
Rajinder P. Khosla, N
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, Nanotechnology in Japan, Spec. Sci. Rep. No. 02-07 June 12, 2002, available at http:www.nsftokyo.orgssr.html.
http:pubs.nanolabweb.comnlbvol1iss38
2 “Dr. Naohiro Soga, Trustee of the International Affairs Department and Director of AIST Tokyo Waterfront, made a presentation on March 13, 2002,at the Tokyo International
Exchange Center, at the Symposium on International Exchange of Industrial Technology”. He spoke on the subject of “International Research Collaboration and Strategy of AIST”. In that
presentation, he said, “In order to overcome the staggering Japanese economy and the hollowing out of the domestic industry by shifting factory to abroad, it is requested for AIST to
produce new and innovative technology leading to future industry. Certainly, there exists severe international competition in high-tech field. However, in order to explore scientific
frontiers and open a new field, interdisciplinary research is indispensable. For this, the exchange of scientific information based on the personnel exchange in the domestic and
international level is very important.”
3 “With this in mind, AIST has general agreements for collaborative research with Centre National de la Recherche Scientifique CNRS in France and SISRO in Australia and are now
approaching and negotiating with research institutes in USA, Germany, UK and other countries.”
34
According to this Report, Japan’s focus on nanotechnology funding is relatively strong in semiconductor technology with applications in the electronics industry.
35
In addition to national laboratories such as AIST, RIKEN, and others, leading university research noted in the report includes
Kyoto University, Osaka University, Tokyo Institute of Technology, University of Tokyo, and Tohoku University.
Finally, on July 20, 2004, the NSF Tokyo Office released a report called “TLOs and University Intellectual Property Centers,” by Ms. Kazuko Shinohara, which lists the 37 TLOs and the 43 University
Intellectual Property Centers in Japan as of May 2004.
36
The Centers focus on the creation and protection of intellectual properties, whereas the TLOs focus on making use of intellectual properties. The
relationship between these two groups is still maturing.
37
In sum, NSF reports are also an important source of information about rapidly changing Japan Bayh- Dole and the internationalization of science and technology activities.
III. NOMURA RESEARCH INSTITUTE AND OTHERS
