Abstract
This paper reveals how cooperation between universities and industry in Japan has developed and what issues have been faced in the development of this relationship. Both sides agree that a positive and constructive relationship between universities and industry is vital because any nation that does not have the support of institutions of higher learning cannot sustain itself, and, similarly, healthy higher education institutions cannot sustain themselves without solid economic foundations. University–industry cooperation has only recently begun in Japan, and it includes joint research, commissioned research, exchange of researchers, acceptance of research funding, among other things. The two major resources for research are people (intellectual resources) and money (funding). The efficiency of research results depends on how effective a balance is achieved between the distribution of these two resources. The exchange of intellectual resources effects the transfer of research results from universities to industry. Various devices for promoting cooperation also have an impact on university finances. As a result of these mechanisms, issues such as intellectual property rights and the diversification of university finances at national universities in particular will have to be addressed.
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