Innovation Policy Challenges

partnership. 
National 
universities 
and 
independent 
administrative institutes (an organizational form of most Japanese 
government research laboratories) are not allowed to invest in private 
companies in general. However, an R&D partnership can attract them 
as a participant by asking for in-kind (non-cash) contributions only.
In the case of an LLP, patents are owned by each participating 
company, so commercialization of R&D becomes tricky if even one 

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Motohashi / Innovation Policy Challenges in Japan 
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patent-holder does not agree to it. However, under this new system, 
the agreement of two-thirds of participants is required. This entity is 
also suitable for university start-ups. A university can participate in 
this partnership and attract partnership fees from private companies 
since the R&D tax credit applies to participation fees.
It is too early to evaluate the impact of this organizational 
innovation, but it is likely to facilitate open innovation in Japan. 

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© Ifri