橋本正洋
新エネルギー・産業技術総合開発機構企画調整部長

MASAHIRO HASHIMOTO
NEDO Director General of Policy Planning and Coordination Department, METI
イノベーション戦略とNEDO
第1回 DNDへの想いとNEDO
http://dndi.jp/15-hashimoto/hashimoto_1.php

Innovation Strategy and NEDO
( I ) DND and NEDO

On Launching This Special Series

The New Energy and Industrial Technology Development Organization (NEDO), an incorporated administrative agency supported by the Ministry of Economy, Trade and Industry (METI), is one of Japan's largest funding agencies for R&D. As I was recently appointed Director General of the Policy Planning and Coordination Department, I plan to share the ongoing activities of NEDO through this Innovation Strategy and NEDO site to exchange views regarding an ideal national innovation system for Japan. During my METI years, I had the opportunity to discuss innovation in the Academia-Industry Cooperation Subcommittee with Professor Kiyoshi Kurokawa, whom I had asked to chair. This NEDO series started coincidently with the timely launching of the “Innovation 25 Strategic Council,” which Professor Kurokawa is presently chairing. With the Kurokawa Strategic Council as my beacon, I aim to find the path that NEDO's strategy should take.

It should be noted that this NEDO series is the brainchild of DND's Mr. Deguchi, who told me: “No one knows about NEDO because of its clumsy public relations. I will provide you with the site, so inform everyone about what great things NEDO is doing.” Indeed, for being such a huge institution, NEDO's name is barely known and it has not even infiltrated academia like the Japan Science and Technology Agency (JST)*i) or Japan Society for the Promotion of Science (JSPS)*i). I have been told that a hurdle looms large at NEDO's doorstep, shunning one away, and I am deeply indebted to Mr. Deguchi for allowing me the opportunity to try and remedy this situation.

As mentioned in my profile, I served as Director for the Office of University-Industry Cooperation when the Technology Licensing Organization (TLO) Law was enacted, and was also the Director of the University-Industry Cooperation Division for the university-based 1000 Venture Business Project. (I was supported at this time by Mr. Ishiguro, one of the main contributors to the DND site, during his years as Director of the Industrial Revitalization Division, Director for the Office for New Business, and Director of the Policy Planning and Coordination Division.) I am delighted to have this opportunity to expand on academia-industry cooperation, university-led ventures and the national innovation system through DND's site, which is the only support site for university-based venture businesses.

What Is NEDO? *ii)

NEDO was established in 1980 as the “New Energy Development Organization,” a government−affiliated corporation for developing new oil-alternative energy technologies. It was subsequently expanded in 1988 to include an industrial technology R&D division. Re-inaugurated as a government−affiliated corporation to undertake most of the national projects of the (then) Ministry of International Trade and Industry (MITI), it was renamed the “New Energy and Industrial Technology Development Organization.” With government administrative reform and the reorganization of MITI into METI, the Agency for Industrial Science and Technology (AIST) was abolished, and part of it was reincorporated into NEDO as well as into the National Institute of Advanced Industrial Science and Technology (the present AIST). NEDO thus became Japan's largest incorporated administrative agency for implementing and managing research and development.

NEDO's six industrial technology departments (bio/medical, nano/materials, machinery systems, electronics/IT, etc.) and the departments for new energy and energy conservation technology development are similar in function to the former AIST R&D laboratories. The R&D labs implemented and managed national projects which were already planned, budgeted and launched by the bio-industry, information and communication electronics, aerospace and defense industry and other divisions of MITI. NEDO has now assumed the majority of their functions, from rockets and semiconductors to new energy and coal. NEDO covers almost every industrial technology except for oil and nuclear energy. In the area of academia-industry collaboration, it also provides matching startup funds for university-led venture enterprises as well as fellowships for development of human resources.

National Innovation System and NEDO

NEDO began to coordinate national projects linking industry and academia to establish a basis for academia-industry cooperation in the late 1990s. At present, METI is developing concrete plans for the “innovation superhighway” noted in its New Economic Growth Strategy. It plans to accelerate innovation by resorting to scientific fundamentals while reforming the system so that funding, human resources and technology from the public and private sectors can be invested readily into concentrated areas. It is thus promoting bi-directional collaboration to facilitate and accelerate the deployment of the fruits of research into markets. NEDO's technology development projects are based on this very concept, the details of which I will expand on later in this series.

‘User-friendly' NEDO

NEDO is an incorporated administrative agency, which means that the majority of its funding comes from the government in the form of operating expense allocations that are entrusted to NEDO's management. Although it is under government control, NEDO is allowed to manage its R&D projects as needed. It is not hampered by fiscal year budgets and resources can be allocated to projects in need of further development or additional funds without waiting for the next fiscal year. Carry overs to the next fiscal year or multiple fiscal year contracts are also possible, making NEDO ‘user-friendly.'

NEDO also has an independent Inspection and Operational Management Department that reviews and evaluates the research projects of other departments stringently but flexibly. By simplifying contract and management processes while also closely monitoring the outcome, it endeavors to reduce the administrative burden for those undertaking R&D.

NEDO Pursues Successful Results

Each project is subjected to interim as well as final evaluations by the Inspection and Operational Management Department, and sometimes a project is terminated before its completion. In the nanotech field, the ‘stage-gate system' has been adopted so that competition among project participants results in technology of only the highest quality. The evaluation process also considers the transfer rate of technology into an enterprise. Innovation is meaningless unless it has practical outcomes. If it is hampered, determining the impeding factor and what NEDO could have done to remove it are all part of the evaluation process. NEDO's core objective is to commercialize technology and achieve results.

As described above, NEDO's role in establishing a national innovation system as a national strategy for technology development is extremely important. I will address various aspects of this system and how national projects can be improved later in this series.


Notes:

*i) NEDO's budget for FY2006 is \229 billion, while the budgets of JST and JSPS, which are also incorporated administrative agencies, are \113.4 billion and \137.9 billion, respectively.(Source of budget data: JST and JSPS Web sites)
*ii) For more details, please visit NEDO's Web site at http://www.nedo.go.jp/english/