The universities have been selected as finalists for Japan’s University Endowment Fund by an expert panel at the Ministry of Education, Culture, Sports, Science and Technology (MEXT). The finalists are the University of Tokyo, Kyoto University and Tohoku University.

The 10-trillion-yen (about £55 billion) government fund has been managed by the Japan Science and Technology Agency (JST) since 2021. It was established to support young researchers, strengthen research infrastructure in emerging fields and promote university reform.

Universities accredited as a 'University for International Research Excellence', can receive subsidies worth several tens of billions of yen for up to 25 years, starting next fiscal year, based on the investment profit of the fund. The target for the fund’s operating income is 300 billion yen per year. Subsidies can be used for tuition fee exemptions and living expenses for the development of young researchers.

By April 2023, eight national universities and two private universities had applied. When narrowing down the target universities, the MEXT expert panel examined the number of research papers, financial strategies and presence or absence of a system for hiring young and female researchers.

From July onwards, the panel will conduct on-site inspections of the three finalists and expects to certify one or two universities in autumn this year.

The Japanese government set up the fund to close the financial gap with international universities such as Harvard, Yale, Stanford and Oxbridge. Despite the government’s ambition, however, the university fund has faced challenges, posting a deficit of 60.4 billion yen (roughly £330 million) for its first fiscal year, ending in March 2023, according to the operation performance report published by the JST on 7 July.

What does this mean for the UK sector?

The universities selected for the fund will have more direct funding sources, strengthened research infrastructure and a more globalised mindset/environment. MEXT also expects other domestic and overseas universities to tap into the funds through research and educational collaborations with the selected universities. The current investment target and assets model will need to be reviewed in order to secure a steady stream of profit necessary to meet the fund's goal.

The government’s plan to dramatically increase the number of PhD students through this fund will open up opportunities for more international student exchanges at the PhD level, as well as increased research collaboration with the UK, among other countries. We see this positive development as a rise in the volume of UK-Japan joint research and international student exchanges, as well as an enhanced presence and profile of UK universities through that collaboration, will encourage Japanese universities to consider expanding their partnership with the UK. Closer relationships between UK and Japanese universities and academics will also help students from both countries familiarise themselves with each country as a prospective study destination.  

Source:

• https://asia.nikkei.com/Business/Education/Japan-s-70bn-university-fund-finishes-first-year-420m-in-the-red
• https://www.yomiuri.co.jp/kyoiku/kyoiku/news/20230627-OYT1T50148/