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By National Research Council, Policy and Global Affairs, Technology, and Economic Policy Board on Science, Committee on Comparative Innovation Policy: Best Practice for the 21st Century, Charles Wessner, Kenneth Flamm, Masayuki Kondo, Sadao Nagaoka

Spotting means to innovate and commercialize new high-technology items is more and more a key for the industrial progress within the atmosphere of tighter environmental and source constraints, governments around the globe have taken energetic steps to reinforce their nationwide innovation structures. those steps underscore the idea of those governments that the emerging bills and dangers linked to new probably high-payoff applied sciences, their spillover or externality-generating results and the turning out to be worldwide festival, require nationwide R&D courses to aid the thoughts by way of new and current high-technology organizations inside their borders. The nationwide examine Council's Board on technological know-how, expertise, and fiscal coverage (STEP) has launched into a examine of chosen overseas innovation courses compared to significant U.S. courses. The "21st Century Innovation structures for the us and Japan: classes from a Decade of swap" symposium reviewed executive courses and tasks to aid the improvement of small- and medium-sized corporations, government-university- collaboration and consortia, and the influence of the highbrow estate regime on innovation. This booklet brings jointly the papers offered on the convention and offers a ancient context of the problems mentioned on the symposium.

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In 1998, legislation to promote the establishment and activities of Technology Licensing Organizations (TLOs) was enacted. Today there exist organizations responsible for technology transfer at all universities with major scientific and engineering research capability. After national universities were incorporated in 2004, most of 14 21ST CENTURY INNOVATION SYSTEMS FOR JAPAN AND THE UNITED STATES them adopted employment contracts containing an invention disclosure obligation for faculty members, and a transfer of ownership of inventions to the university.

Since efficient production of knowledge benefits from competition based on the priority of publications and inventions (such competition not only strengthens the intensity of a race for research results, but also helps avoid duplication in research, and facilitates the division of labor in research, both locally and globally), this policy shift seems to be clearly pointed in the right direction. S. innovation system. Although there is a long tradition of university-industry collaboration in Japan at the individual professor level, Japanese universities did not provide institutional support for such collaboration 17 INTRODUCTION until recently.

After the collapse of the so-called bubble economy in 1992, the Japanese economy went into a long and severe recession, which lasted more than a decade. ”1 The seemingly obvious cause of this prolonged stagnation was the excess capacity built up during the boom years of 1980s and the resulting sharp decline of investments in plants and equipments in the 1990s,2 which led to a steep decline in asset prices and to loan defaults. However, the “real side of the economy” may also be responsible. 3 Other researchers confirmed that 1See Hayashi and Prescott (2002).

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