Abstract
Japan's university system confronts difficult problems in its promotion of research and development. University budgets have been adversely affected by governmental cutbacks. Fewer graduate students are enrolled as they prefer to work for industry where research and environment is better. Basic research at universities has reached a critical stage. Although there is consensus on the need to improve the Research and Development (R&D) situation, action is slow as many believe that the univerity system itself should be overhauled completely rather than piecemeal. The traditional system is attacked for its lack of responsiveness to the popularization of higher education, shift from elitist patterns, and the very sophistication of research and development. Before university R&D can progress, attention must be given to Japan's administration and funding system that controls academic R&D.
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