ened the role of Council for Science and Technology Policy (CSTP). Even though each ministry still maintains strong influence on technological development in its area, overall technology policy planning and coordination at the CSTP became visible and important. The long-term consequences of this remain to be seen.

The reform of higher education began with the rather short-term focus of encouraging universities to work more closely with industries as a means of revitalizing the economy. In response to the prominent role that universities played in strengthening the U.S. information technology and biotechnology industries, Japan placed an early emphasis on the creation of technology licensing offices at the universities, Bayh-Dole type arrangements to encourage patenting, and efforts to stimulate the creation of spin-offs. It is needless to say that the basic roles of universities in a national innovation system are creating and pooling knowledge and educating students. From this viewpoint, the early policies were not enough. More policy emphasis should be directed to strengthening these fundamental functions of universities.


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