Role of Public Research Institutes in Japan’s National Innovation System: Case Study of AIST, RIKEN and JAXA

Abstract

Among the actors in the National Innovation System, Public Research Institutes (PRIs) are probably the least studied. Historically, PRIs played an important role in conducting research related to the Japanese government’s missions in defence, space exploration, health care, agriculture and industrial technology. PRIs that aimed to help industry played a significant role during the catch-up period before and after the second World War. However, throughout the 1970s and 1980s, as Japanese firms acquired new technological capabilities and crossed technological frontiers with increasing financial resources, the firms’ reliance on PRIs as a source of advanced technology decreased. At present, discussions are underway regarding the role and rationale of PRIs in Japan’s innovation system. In this article, we focus on three large PRIs in Japan—AIST, RIKEN and JAXA—and investigate their role in helping Japan’s industry by examining their patents. We briefly describe their background and history of development, which clarifies their distinctive role in Japan’s innovation systems. We use four measures drawn from patent data (technological value, exclusionary value, expected market value and knowledge spillover) to describe PRI performance. The difference between the PRIs’ patents and those of universities and firms, as well as the impact of the PRIs’ research collaboration with the private sector is analysed. We found that each of the three PRIs has its own identity and is fulfilling its specific role. In addition, we pinpoint problems concerning universities’ patenting activity. Finally, we discuss factors that might affect the research outcome.