Which Industries Are Most Science-Based?

Author Name GEMBA Kiminori  (Assistant Professor, Graduate School of Engineering Management, Shibaura Institute of Technology) /TAMADA Schumpeter  (Fellow) /KODAMA Fumio  (Faculty Fellow)
Creation Date/NO. March 2005 05-J-009
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Many industrial innovations would not have occurred without substantial delay if there had not been academic research behind them, and the linkage between industrial innovation and academic research is now gaining much more attention because of the increasing complexity of technologies. The authors have shown that a particularly high degree of science linkage is observed in the area of biotechnology, based on an analysis of the number of citations of scientific papers in patents (science linkage) by type of technology (RIETI DP 04-E-034). Building on this previous analysis, the present research project aims to provide quantitative evidence showing the degree to which Japanese technology development is dependent on science by type of industry. The data on the degree of science dependence is extremely important from the viewpoint of formulating science and technology policies, such as support for scientific research, as well as in implementing industrial policies such as those designed to promote new businesses. Conventional discussions of science dependence, however, have mostly been based on the ratio of research and development (R&D) expenditures to total sales. In contrast, our analysis of science linkage directly examines how technology development in each industry is influenced by science. This enables us to get a clear picture of science-based industries. The analysis shows a high degree of science linkage in the pharmaceutical, food, and chemical industries, with the remaining industries showing a relatively low linkage. This result indicates that the characteristics of technology development differ substantially depending on the type of industry, and therefore that such differences need to be taken into account in formulating industrial policies.