international es to supply needed funding for OJA slowed its release. Still, two further reports will be forthcoming—one on innovation in Japan and horizons in educational initiatives between the two countries—before OJA calls it quits due to lack of funding. Last year, it issued a report on defense aspects of the science and technology relationships between the two countries. At a briefing July 28 on the report's findings, Bloch was joined by Jim F. Martin, director of the Rockwell Science Center's Palo Alto, Calif., laboratory, and David A. Duke, retired vice chairman of It thus behooves leaders in the U.S. to Corning Inc. Martin headed a competiovercome their "complacency" toward tiveness task force under the Bloch comJapan and rethink how the two countries mittee and Duke was a member of it. ought to relate in changing times, says The Rockwell center and Corning both the report. Entitled "Maximizing U.S. In- have active affiliations with Japan. terests in Science and Technology," it All three agreed that the two countries was issued by NRC's Office of Japan Af- need each other a great deal, especially in fairs (OJA) by a panel headed by former the face of growing and tangled relations National Science Foundation Director with China and other newly emerging Erich Bloch. Asian countries. It is a complex set of relaThe report is essentially a handy sum- tionships. One theory holds that China, mation of where things appear to stand which has replaced Japan as the U.S.'s top between the two countries. It covers vari- Asian concern, will mimic Japan in protecous statistical comparisons derived pre- tionist policies. The report makes a brave dominantly from the 1996 Science & Engi- attempt at unraveling the significant issues neering Indicators issued by the National and reflects their underlying complexities. Science Board. It includes such data as the All rued the "pattern of complacency" that industrial performance of the two coun- marks industrial and governmental relatries, comparative shares of the world tions with Japan. technical literature, balance of trade fig"The predominant pattern of [Japanures in various technologies, comparative U.S.] interaction," said Bloch, "is and probranking of various critical technologies, ably will continue to be one of asymmetry. and receipts and payments of royalties and Many more Japanese scientists and engilicensing fees on patents. In trade in ad- neers visit the U.S. than vice versa. U.S. orvanced technologies for 1994, for exam- ganizations license much more technology ple, Japan enjoyed a $14.3 billion advan- to Japan-based companies than Japanese tage over the U.S. organizations license to U.S. companies. Among the issues the U.S. should be concerned about in these times are manufacturing and product development gaps. These are narrowing, the panel says, but they are still important. The U.S. auto industry, still angry at the Japanese for dragging their feet on new car dealerships, has pretty much closed the technological gap, but not completely. "In automobiles, semiconductor devices, and other manufacturing industries," the report points out, "Japan still has a manufacturing edge." The U.S. must press ahead across a swath of areas—from improving precollege education to producing needed manufacturing talent and improving savings rates for a healthy investment flow—to keep the gap from widening. The study was first conceived late in 1992 and should have appeared two years ago. But the reluctance offinancialsourc- I Martin: protecting intellectual property
WAKE-UP CALL ON JAPANESE SCIENCE
Report urges U.S. leaders to overcome 'complacency' toward Japan and rethink relationships between the two countries WilLepkowski C&EN Washington
J
apan might be the last thing on people's minds these days, but it shouldn't be, says a report issued late last month by the National Research Council (NRQ. Though down in the dumps of late and rife with financial scandals, Japan is still the same technological machine it's always been, and it's probably getting better. The country, which leads all other countries with 2.7% of its gross domestic product devoted to research and development in 1994 (versus 2.5% for the U.S.), is increasing its R&D spending even more and is expected to surpass the U.S. in total spending by 2002. Moreover, Japan is leading the general technological surge much of the rest of Asia is undergoing. It also is fast adopting the Western capitalist model of open financial markets, which means an even moreflourishingatmosphere for technological interaction with all countries. In other words, everyone who closely follows Japan knows it will be back.
Bloch : monitor developments in Japan
AUGUST 11, 1997 C&EN 3 3
international And Japan sells about twice the amount of high-technology products to the U.S. as Report recommends actions by government, industry, and we sell to them." academia Japanese science and technology will To improve science and technology pol- • Keep encouraging Japan to use its scicontinue to be important to the U.S., icies toward Japan, the U.S. government ence and technology for global benefit Bloch added. Japan boasts undiminished should: • Step up efforts to ensure that invenprowess in electronic hardware, advanced • Keep up its modest programs of as- tions by U.S.firmsare more easily patmaterials, and advanced manufacturing. Jasisting scientists and engineers to par- entable and better protected in Japan. pan has big R&D spending plans, whereas ticipate in research and development in Industry and trade associations should: those of the U.S. are diminishing. Japan is Japan. overhauling basic research in its universi• Maintain support for translating • Keep pressing for expanded particiJapanese technical information into pation in Japan's markets and its techties with the aim of eventually matching nology and participate more in policy English. the U.S. in both the volume and quality of debates both in Japan and the U.S. • Persuade Japan to make available, fundamental research. preferably electronically, documents Universities, government, and industry "If the U.S. is complacent and underthat indicate how foreign countries can should: estimates Japan's ability to bounce back," better participate in Japan's markets • Cooperate more with one another in said Bloch, "we could find ourselves facand technological relationships. R&D related to national needs. At the same ing some of the same problems we faced • Use the U.S.-Japan science and tech- time, they should keep seeking ways of inin the early 1980s when complacency nology agreement to track progress in volving foreign interests more in such rewas rampant. We need to maintain our further opening up the Japanese techni- lationships while entering the same cal and industrial system. capabilities to monitor developments in kinds of relationships in those countries. Japan and apply what we learn. We also need to continue efforts to improve our own ability to innovate." The same week the NRC report was strongly engaged in Japanese science and Martin broke down his concerns to technology, the U.S. government has a released, a paper was presented at the lithree points. First is that Japan's high- particularly important role to play in pur- brary of Congress during a joint meeting tech markets such as telecommunica- suing reciprocal science and technology between U.S. and Japanese experts in intions and information technology still re- relations with Japan over the long term." formation technology. R. D. Shelton, of main largely closed to U.S. products. Third, Martin said, the U.S. experi- the International Technology Research In"Sales in Japan provide income to develop ence with Japan represents an important stitute (formerly the Japan Technical Evalnext-generation products," he said. "Work- set of lessons for U.S. dealings with the uation Center) at Loyola College in Baltiing with sophisticated Japanese customers other Asian countries, which themselves more, said the question of Japan's coming often spurs product and process improve- have big ambitions in science and tech- back is moot. It never went away. ments beyond the products introduced in nology. He said the U.S.-Japan relationShelton based his remarks on several Japan. And the prospect of sales in Japan ship will increasingly affect other interna- studies the center had done over the past gives U.S. companies the incentives to tional relations. "Perhaps most important five years—evaluations of optoelectronics, build organizational capabilities in Japan as Asia becomes stronger technological- electronic manufacturing and packaging, for manufacturing, marketing, and re- ly," he said, "we will need to make per- biodegradable polymers, human-computer search and development." sistent long-term efforts to ensure U.S. interaction, and casting, among others. All Martin was especially forceful in noting access to Asia's high-technology markets are technologies with high economic impact. "Japanese R&D strengths are compaasymmetries in intellectual property rela- and technological capability." tions. "Inability to protect intellectual Martin's panel in its various recommen- rable to those of the U.S. and they continproperty has hindered the ability of some dations doesn't go beyond what had already ue to improve," Shelton said. U.S. companies to gain access to the Japa- been seen as necessary policies during the Bloch, Martin, and Duke refused to nese market," he pointed out. Martin's 1980s—more Americans willing to learn specifically name any centers of complapanel wants U.S. patent applications in Ja- Japanese and spend time doing research in cency toward Japan, although Bloch did pan to be monitored for restrictive practic- Japan, for example. What has happened indicate the demise of NRC's Japan office es. Some industries, especially those in in- has resulted in "important benefits," might qualify. Phyllis Genther Yoshida, formation, have already succeeded in pro- which he said will become more critical in who heads the Japan office in the Comtecting their interests there. the future. But little in the way of a spec- merce Department, told C&EN that the complacency lays not so much with Martin said his second concern is the tacular response has taken place. need in the U.S. for persistence in dealKenneth Flamm, a Brookings Institu- those in industry and government who ing with the Japanese. The U.S. has al- tion scholar who has been studying Japa- deal with Japan daily but with higher-ups ways had to fight for concessions from a nese science and technology for several in their organizations. The general opinJapan that has wanted to keep the trade years, said the NRC report was "just about ion, she said, is that Japan is on the destatus quo. It still does. The process that right." He added: "It's about right if the cline, but it isn't. It is getting ready for bears watching in coming months, Mar- general message was to keep your eye on the next wave of industrial technology. tin said, is the rewriting of the basic the ball. Japan and the U.S. are clearly The OJA studies were funded by the framework science and technology peers now in terms of technological so- National Science Foundation and the Deagreement between the two countries. phistication. And other folks—Taiwan, partments of Commerce, State, Defense, As Martin explained it, "Since market South Korea, and Singapore—are beginning and Energy. The Japan study is available at forces have not provided the U.S. indus- to look like Japan did 20 years ago. So in a http://www.nap.edu/readingroom/books/ try with the necessary incentives to stay sense, the report is not only about Japan." max/ or by calling (800) 6246242.^ 34 AUGUST 11, 1997 C&EN
