The Japanese government plans to contribute as much as 10 trillion yen to establish a fund in fiscal 2021 to strengthen university research by allocating profits from investment management. The Ministry of Education, Culture, Sports, Science and Technology (MEXT) has included the plan in its requests for budget allocations for the next fiscal year, several Japanese media reported.
The private sector will be commissioned to manage and diversify investment in a wide variety of stocks and bonds. The goal is to provide several hundred billion yen of support each year.
Universities to receive investment profits are to be focused on the ones with strong international competitiveness in terms of research capabilities such as the University of Tokyo and Kyoto University. The additional income is expected to be used for advanced experimental equipment, digitization of research data, fostering of young researchers and also improving their working conditions. Other ideas include establishment of start-up support hubs.