RIETI-NISTEP Policy Symposium Open Innovation as a Key Driver of Japan’s Industrial Competitiveness Handout NAKANISHI Hironori Deputy Director General for Science, Technology and Innovation Cabinet Office, Japan August 21, 2015 Research Institute of Economy, Trade and Industry (RIETI) http://www.rieti.go.jp/en/index.html Approach to Open Innovation in Japan August 21st, 2015 Hironori Nakanishi Deputy director general for STI policy Cabinet Office, Japan Concept of firm’s boundary <Production> Cost of using market or internalization Transaction cost Choice of contract Boundary of firm (Make or buy?) Organize internally Using Market Q Make Buy <Innovation> Past; Small market of innovation/invention Now; Easy to valuate the purchase of technology and venture due to open innovation, university-Industry cooperation etc. University-industry cooperation in Japan Brief history of university - industry cooperation in Japan 1960’s-70’s Anti-movement in university for collaboration with industry 1998 Law for technology licensing organization 1999 Japanese Bay-Dole act 2004 Reformation of national university to independent institution Some recent progress # <Collaborative Research > Mill ¥ 30,000 Number by the scale 50,000 25,000 <1 mill ¥ 8,850 9,509 10,842 40,000 20,000 1 mill ¥-3 mill ¥ 5,840 6,700 7,178 3 mill ¥-5 mill ¥ 1,292 1,439 1,505 30,000 15,000 5 mill ¥-10 mill ¥ 909 945 988 20,000 10,000 10mill ¥‐50mill ¥ 648 652 749 47 54 74 10,000 5,000 17,586 19,299 21,336 60,000 0 2000 2005 2010 0 FY2013 FY >50mill ¥ Total 2009 2011 2013 Ave. ¥ 200K /# 3 Toward open innovation – much to be done Million ¥ <Revenue of TLOs> <Number of University start-ups in Japan > 300 2197 2074 2,500 2143 2200 2027 20Mill $ 1953 252 252 2000 1863 250 1697 226 2,000 1487 1800 210 1600 195 200 1235 167 1,500 1400 166 151 1200 150 983 1000 757 1,000 800 95 100 90 562 50 33 19 47 0 0 2000 2005 2010 FY2013 600 69 54 395 47 500 74 47 41 400 244 149 9 200 108 56 75 0 2000 2005 FY2012 Total value of start-ups from Tokyo Univ. exceeds 10bil $ 4 Fluidity of human resources !? Flow of scientist and engineer (FY2013) 8,200 7,200 Abroad Newly hired Univ. 5,200 (389 K) 19,200 200 1,200 15,200 7,400 2,100 National Lab. (86 K) 500 Company 100 (666 K) 800 1,400 12,300 5 Era of “Open innovation” Internal; Absorption ability Corporate Strategy Idea, Technology transfer Human resource management, M&A Business model External; National, Regional, Global Creative/Knowledge Commons Reduce cost of innovation in the market e.g. technology, human resources and transaction costs Soft business infrastructure, Open science Tear down walls in organization or between sectors and border!? Mediation function ? 6 How to create the future to come? Time of drastic change; Connectivity, Openness, Data-driven IoT, Industry 4.0, Smart service world, Science 2.0, Open Science Future industry and society ? Preparedness and challenge are the key; Cannot tell what happen next Investing in fundamentals (people and excellence) Role of Government; How to be an entrepreneurial state? Level playing filed, leading role for solving socio-economic issues, and more!? Revitalize neglected technologies by private sector Co-creation is the imperative for open innovation era. Inclusive innovation, User induced innovation Japan’s new national innovation system 7