123 White House, Proclamation on the Suspension of Entry as Nonimmigrants of Certain Students and Researchers From the Peoples Republic of China, May 29, 2020, https://www.whitehouse.gov/presidential-actions/proclamation-suspension-entry-nonimmigrants-certain-students-researchers-peoples-republic-china/. Successful endowment examples of this kind exist between Israel and the United States and the United States and India.196 In an era of significantly strained resources, this kind of endowed and coordinated investment can pay dividends efficiently year after year. China has a "stunning lead" ahead of the US in high-impact research across critical and emerging technologies, according to Canberra-based independent think tank Australian Strategic Policy . The bilateral Comprehensive Dialogue on Space began that same year. Special Advertiser Feature As the global economy recovers from its prolonged downturn, investors from all nations are increasingly looking to Japan. 1 (Winter 1992): 144, https://scholarship.law.unc.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1471&context=ncilj. 73 Peter Lichtenbaum, Victor Ban, and Lisa Ann Johnson, Defining Emerging Technologies: Industry Weighs In on Potential New Export Controls, China Business Review, April 17, 2019, https://www.chinabusinessreview.com/defining-emerging-technologies-industry-weighs-in-on-potential-new-export-controls/. It might be possible for a pool of close allies to consider this kind of approach for a wider range of sensitive high-tech products. Revisit the bilateral S&T agreement: On the offensive side, the United States and Japan should consider updating their 1988 agreement on S&T cooperation to address two areas of imbalance, namely insufficient coordination between the public and private sector for R&D investments and inadequate flexibility on dual-use technologies. To preserve their technological edge, the United States and Japan should: Tokyo and Washingtons overall goal should be to compete effectively with Beijing in ways that elicit broad international collaboration. See Leika Kihara, U.S., Japan Fail to Bridge Gap on Trade in Economic Talks, Reuters, October 16, 2020, https://www.reuters.com/article/us-usa-japan-dialogue/u-s-japan-fail-to-bridge-gap-on-trade-in-economic-talks-idUSKBN1CL2FM. Part of Japans pandemic response legislation included funds to support domestic companies in realigning or supplementing supply chains for medical equipment to increase flexibility. These committees draw attendees from many different agencies to government-wide meetings to promote information sharing and high-level policy attention to potential collaborative projects (see figure 2). But with government resources stretched by the response to the coronavirus pandemic and spread across so many different priorities simultaneously, it will be essential for Tokyo and Washington to build technology-based alliances and ecosystems and expand their intellectual, material, and financial resource bases.136 The U.S.-Japan alliance is well positioned to contribute to these goals. Many Japanese and U.S. firms have mutually beneficial high-tech research centers in the other country. 145 Japan External Trade Organization, Japan-U.S. Investment Report, 2019, https://www.jetro.go.jp/usa/japan-us-investment-report-2019.html. Israel lags all these countries in smartphone penetration and its population does not score very highly on internet usage. Such a framework could include harmonized rules for researcher mobility and research integrity and transparency. It is fortunate that U.S. policymakers did not become overly protective of Motorola, because neither it nor Toshiba were destined to remain on the cutting edge of a changing marketplace.22. 148 Japan-U.S. Digital Innovation Hub Workshop, University of Tsukuba Center for Artificial Intelligence Research, June 10, 2019, https://air.tsukuba.ac.jp/en/workshop2019/. The two governments had touched on such subjects in the past primarily regarding energy, but, in 2010, they launched a new Dialogue on the Internet Economy to consider the policy implications for these new technological markets and how they might affect businesses.53 Part of this dialogue involved sessions with private sector representatives via the U.S. Chamber of Commerce and Japans business federation Keidanren, underscoring the close link between technological innovation and its impact on companies competitiveness and economic prospects. 87 Maggie Miller, Lawmakers Introduce Measure to Freeze Out Huawei From Financial System, Hill, March 12, 2020, https://thehill.com/policy/cybersecurity/487252-lawmakers-introduce-measure-to-freeze-out-huawei-from-financial-system. For its part, Japans AI R&D strategies should probably focus more on international collaboration, specifically with the United States and other traditional technology partners. The Super 301 clause was actually a reference to section 310 of the 1988 legislation. 74 For more information, see the following government website: What Is Regulations.gov Beta?, Regulations.gov, https://beta.regulations.gov/. 26 Sherisse Pham, How Much Has the US Lost From Chinas IP Theft? CNN, March 23, 2018, https://money.cnn.com/2018/03/23/technology/china-us-trump-tariffs-ip-theft/index.html. When it comes to U.S. exports, Japan is among the most trusted countries that face the fewest restrictions, given its membership in all major international nonproliferation regimes.56 In 2018, for example, the United States Bureau of Industry and Security reviewed 1,903 export/reexport applications from Japan valued at $5.0 billion. 4 Why is Japan so advanced in technology? Meanwhile the Japanese government is also striving to make it easier for foreign students in Japan to start their own companies by expanding residency options and even subsidies from the Ministry of Economy, Trade and Industry for such new businesses.159, The Japanese private sector is particularly important, given the high percentage of Japanese R&D activity that takes place there. 135 See, for example, White House, Artificial Intelligence for the American People, April 15, 2020, https://www.whitehouse.gov/ai/; National Quantum Initiative Act (Public Law No: 115-368), December 21, 2018, accessed April 15, 2020, https://www.congress.gov/bill/115th-congress/house-bill/6227; Japanese Government, Innovation Japan, accessed April 15, 2020, https://www.japan.go.jp/technology/innovation/; and Japanese Government, Society 5.0, accessed April 15, 2020, https://www.japan.go.jp/technology/#society. In this sense, the agency has some organizational similarities to the National Science Foundation, although the agency tends to be more mission-driven rather than curiosity-driven, and its total annual budget (roughly $1.2 billion) is 15 percent the size of the U.S. foundations $8 billion allotment.50, The Obama administration expanded on the Bush eras emphasis on security for U.S.-Japan S&T cooperation with a return to more traditional applications like clean energy, cancer treatment (including vice president Joe Bidens Cancer Moonshot initiative), outer space, natural disaster response, and human resources development in the sciences.51 Later, the JWLC introduced new priority areas in data science (including AI, big data, and the IoT), many of which were highlighted in a 2015 joint statement that Obama and Japanese Prime Minister Abe Shinzo signed after the two governments extended their S&T cooperation agreement in 2014.52. This manual also outlines a minimum level of investments in physical security, the management of subcontracts, and a wide range of other security-related details. 93 Lucy Fisher, Downing Street Plans New 5G Club of Democracies, Times, May 29, 2020, https://www.thetimes.co.uk/article/downing-street-plans-new-5g-club-of-democracies-bfnd5wj57. 157 Franco Ordonez, Jared Kushner Privately Working on Reshaping Legal Immigration, McClatchy DC, February 20, 2019, https://www.mcclatchydc.com/news/politics-government/white-house/article226462025.html. See Japanese Trade and Investment Statistics, Japan External Trade Organization, https://www.jetro.go.jp/en/reports/statistics.html. China, after all, consumes about half of the worlds semiconductors and accounts for roughly one-third of U.S. semiconductor revenues. In both cases, there are disincentives to overcome due to costly additional bureaucratic layers and commercial sensitivities to military applications of these technologies, but these barriers are more significant in Japan. Congress gave more discretion back to the executive branch starting in 2013. Above and beyond export controls, protecting information from theft has become an increasingly important and difficult task for governments, private companies, and universities. I also appreciate the research assistance I received from Sylvie Zhong and David Song, as well as the top-notch support team at Carnegie including Alex Taylor, Ryan DeVries, Amy Melon, and Jocelyn Soly. They aren't just way ahead of us technology wise, they are musically too. The emergence of this new format of allied technology policy dialogues reflects the partners closer economic interdependence, similar policy views, and deeper mutual trust when it comes to national competition. Esper told NATO and other allies that reliance on Chinese 5G vendors could . In a sign of Chinas progress on this front, its largest semiconductor maker announced in 2020 that it will be selling some of the worlds most advanced chips before the end of the year, on an accelerated schedule due to U.S. trade restrictions. However, the new format has not yet been applied explicitly to collaboratively funded R&D programs. Rob the American company of its intellectual property, replicate the technology, and replace the American company in the Chinese market and, one day, the global market. To underscore this point, he highlighted a recent case involving a U.S. semiconductor firm called Micron Technologies that has accused a Chinese rival of intellectual property theft.31. 14 From 1996 to 2000, Japans total outward FDI in the three NAFTA member countries increased roughly 50 percent to $140 billion, and it had grown another 89 percent to $265 billion by 2010. More than 85% of the South Korean public oppose Japan's plan, according to a survey last month by local pollster Research View. Another area that both countries are prioritizing is quantum science and quantum computing. Douglas Rake, the author, and several others have collaborated to realize this concept known as the Japan-U.S. Strategic Science and Technology Innovation Initiative (JUSSTII). . For many years, Japans Institute of Physical and Chemical Research (also known as RIKEN) was one of the few domestic examples of successful partnerships between a public institute and the private sector, stretching as far back as the 1930s and the RIKEN Industrial Group.160, Japanese firms have traditionally been more active partnering with research universities overseas, but, in 2016, the government introduced an investment matching program for domestic partnerships. 12 things you should never do in Japan Isabel Putinja , Oyster.com Sep 12, 2017, 12:18 PM PDT Brush-up on these etiquette tips before going to Japan. Japans relatively low level of central government funding gives it fewer tools to entice visiting researchers to stay in Japan, but Tokyo knows that it needs to expand this pool to help compensate for the countrys demographic decline in terms of its working-age population: If we rely only on domestic scientific talent, our impact globally will decline, said one Cabinet Office official.158 This is why the Japan Science and Technology Agency and the New Energy and Industrial Technology Development Organization are actively recruiting foreign-born researchers to submit proposals under the Moonshot program. Japan, for its part, will need to take more significant steps to upgrade its technological and information security if it wants to take full advantage of its alliance with the United States, and this includes investments in its intelligence and defense enterprises. 85 Yu Yifan, U.S. Fortunately, Japans need for a replacement fighter aircraft for its F-2 gives the allies an opportunity to upgrade how they cooperate on defense technology, if they can overcome differences in the ways that they approach these kinds of defense development programs. During Abes first stint as prime minister, his government allowed mention of these goals (that is, to strengthen mechanisms to protect classified materials) as part of public readouts from their 2+2 minister-level meetings with the Americans. 3 (2013): 594. That is how nowadays Japan is qualified as one of the most powerful tech giants all over the world. The National Industrial Security Program Operating Manual (NISPOM) provides detailed requirements for how classified and unclassified information must be stored and transferred in connection with a government contract. One difference of this approach compared to how the JHLC functions now is that such a change would allow a wider range of scientific leaders (in academia, national labs, and the business world) to contribute to bilateral government discussions on S&T priorities, going beyond lists of activities to strengthen partnerships and the collaborative infrastructure in select strategic areas. It doesn't work in many places," he said. The meetings are steered by offices within Japans Ministry of Foreign Affairs and the U.S. Department of State (especially for the JWLCs work). 66 In 2019, annual arms exports from the United States, which is the largest exporter of weapons in the world, amounted to $10.8 billion; the number for Japan was less than $500,000. Still, the council is likely to play a more important leadership role on the Japanese side if the prime minister gives the office sufficient support. 127 Losing Ground: U.S. Competitiveness in Critical Technologies, (opening statement by Diane Souvaine, chair, National Science Board before the House Science, Space, and Technology Committee, January 29, 2020), https://docs.house.gov/meetings/SY/SY00/20200129/110401/HHRG-116-SY00-Wstate-SouvaineD-20200129.pdf. Australia's S&P/ASX 200 gained 0.4% to 7,126.50. Companies must comply with the minimum standards and approval processes that governments set, and they also can employ their own industrial security practices to protect trade secrets that in some cases go beyond government requirements. The two committees are led collectively by the White House Office of Science and Technology Policy, Japans minister of state for science and technology policy, and Japans Ministry of Education, Culture, Sports, Science and Technology. But just in the last few decades, a lot has changed. Also based on an author interview with a U.S. government defense official, April 23, 2019. 197 White House, Joint Press Release from Vice President Mike Pence and Deputy Prime Minister As Tar on the U.S.-Japan Economic Dialogue.. 37 Note that U.S.-Japan energy cooperation has gone through several iterations from the 1989 Reagan-Nakasone Energy Cooperation Agreement to the 2009 fact sheet and action plan as well as the 2011 Japan-U.S. Clean Energy Policy Dialogue. 43 James E. Auer U.S.-Japan Center and the Stimson Center, Report on the 30th U.S.-Japan Technology Forum, May 2122, 2019. Answer (1 of 6): The US is a third word country compared to Japan when it comes to technology, compare the Tokyo metro to NY subway!, everyone is connected to the internet 24/7, compare the JR system to Chicago rapid transit (basically a pile of rusted junk I'm ashamed to say), their cars are sti. Tokyo and Washington should also coordinate bilaterally and act multilaterally to explore the creation of a new trusted network of information sharing and technology security that could include other countries beyond the Five Eyes partners, including France, South Korea, and possibly Taiwan. The allies should also seek some common understanding of how globalization is evolving and the goals they want to pursue. 108 of 2013), accessed April 15, 2020, https://www.loc.gov/law/foreign-news/article/japan-act-on-protection-of-specially-designated-secrets/. David Vergun, Addressing China Threats Requires Unity of U.S., World Effort, Esper Says, U.S. Department of Defense, DOD News, January 24, 2020, https://www.defense.gov/Explore/News/Article/Article/2065332/addressing-china-threats-requires-unity-of-us-world-effort-esper-says/. The decision was reaffirmed in 2001 and again in 2010. This change became known as the Super 301 clause, which further expanded the governments ability to penalize countries over disputes about specific products and made it possible for Washington to target a wide range of trade practices it deemed unfair.12, This era also led to the Federal Technology and Transfer Act of 1986, which was meant to make U.S. firms more competitive, boost Defense Department funding for a U.S. consortium of semiconductor and equipment manufacturers called SEMATECH (established in 1987) to help regain an edge over Japan and enact a variety of protectionist trade policies, including export restraint agreements and tariff threats to extract concessions from partners with persistent trade surpluses.13, As the 1990s wore on, however, the perceived economic threat posed by Japan receded, globalization accelerated, and multinational supply chains proliferated, causing technonationalism to become less of a government priority. Japan also made large investments in the United States and other NAFTA countries in response to U.S. pressure. See [Confirming the importance of U.S.-JapanSouth Korea cooperation for security], Asahi Shimbun, September 26, 2019, 1. Fear of losing this competition is fueling an unprecedented scale of investment and a zero-sum mentality that could tempt countries to overreact in ways that would damage their national interests and broader global interests. This council could draw from top laboratories and corporations to help policymakers leverage allied S&T collaboration in new ways and delineate clear priorities amid fiscal constraints. 103 Jackson, CFIUS Reform Under FIRRMA.. 75 Federal Register, Review of Controls for Certain Emerging Technologies, November 19, 2018, https://www.federalregister.gov/documents/2018/11/19/2018-25221/review-of-controls-for-certain-emerging-technologies. Over the years, these initiatives have produced direct lines of communication and strong institutional relationships between specific U.S. and Japanese government offices and the research community in both countries that their funding supports. The team includes 16 scientists and other experts selected by NASA including retired astronaut Scott Kelly, the first American to spend nearly a . Such collaboration allows each country to increase the number of active test beds (or research platforms) focused on an issue of shared interest, sometimes permits them to share data sets, and allows them to leverage a larger number of unique and expensive research assets such as supercomputers or special laser platforms. Hayashi said Japan will still aim to invest in emerging technology to maintain its edge and stay ahead of the curve technologically. See James Manyika, William H. McRaven, and Adam Segal, Innovation and National Security: Keeping Our Edge, Council on Foreign Relations, September 2019, https://www.cfr.org/report/keeping-our-edge/. But a variety of remaining challengessome already mentionedmake effective U.S.-Japan cooperation on technonationalist policies more difficult than it could be. 194 NTT Research to Work with Caltech, Cornell, Michigan, MIT, NASA, Stanford, Swinburne, and 1Qbit; and National Science Foundation, 2020 Dear Colleague Letters, June 23, 2020, https://www.nsf.gov/news/news_summ.jsp?cntn_id=127138. Japan also decided in late 2018 to limit the domestic use of Huawei products, but it did so more subtly than Washington did.94 Tokyo prohibited potentially compromised equipment on government networks without mentioning specific company names. Global Wealth Report (2010), Credit Suisse Research Institute, October 2010, https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/credit-suisse-global-wealth-report.pdf; and World Bank Group, Poverty, accessed March 19, 2020, https://www.worldbank.org/en/topic/poverty/overview. The following steps would make a good starting point. 128 Author interview with U.S. and Japanese officials who were involved, April 2019. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) eased 0.17% to 519.96, having touched a more than one-month peak of 521.94 earlier in the session. 68 U.S. Department of State, Facility Security Clearance (FCL) FAQ, accessed April 15, 2020, https://www.state.gov/facility-security-clearances-faq/. 143 Japanese Ministry of Education, Culture, Sports, Science and Technology, Statistics, https://www.mext.go.jp/en/publication/statistics/index.htm. While conditions are changing, Tokyo has still not reached the levels of bureaucratic access that some of Washingtons most trusted allies receive. 4489 (1981): 13901396. The allies have already identified some promising technological areas but have yet to pursue them with any new collective effort. The future environment for international technology standards and data treatment is clouded too, as these arenas become new geopolitical battlegrounds that could turn even more tumultuous as countries suffer economically and look to either China or the United States for aid and investment. 90 Maggie Miller, Lawmakers Introduce Measure to Freeze Out Huawei From Financial System; Office of Congressman Mike Gallagher, Gallagher, Cotton, and Colleagues Introduce Bill to Freeze Huawei From U.S. Financial System, March 12, 2020, https://gallagher.house.gov/media/press-releases/gallagher-cotton-and-colleagues-introduce-bill-freeze-huawei-us-financial. . 84 U.S. Department of Commerce Press Release, Commerce Addresses Huaweis Efforts to Undermine Entity List, Restricts Products Designed and Produced With U.S. Technologies, May 15, 2020, https://www.commerce.gov/news/press-releases/2020/05/commerce-addresses-huaweis-efforts-undermine-entity-list-restricts; and. U.S. government security clearances cannot be issued to foreign companies or even U.S. companies if they are under foreign ownership, control, or influence, unless the U.S. government is satisfied that the foreign connection poses no risk.68 This stipulation can be mitigated by various means, including a special security agreement (SSA), although such bureaucratic safeguards add costs for the companies involved and will often limit a foreign management teams access to information related to the U.S. firm in question.69, The Nippon Telegraph and Telephone Corporations (NTT) acquisition of Dell Services in 2016 required this kind of special security clearance permission, given Dells existing contracts with the Department of Defense. See the Arms Export Control Act of 1976 (Title II of Pub.L. Japan's Foreign Minister Tells Media to Change the Order, NPR, May 22, 2019, https://www.npr.org/2019/05/22/725753561/shinzo-abe-or-abe-shinzo-japans-foreign-minister-tells-media-to-change-the-order. 125 Bill Chappell, Acclaimed Harvard Scientist Is Arrested, Accused of Lying About Ties to China, NPR, January 28, 2020, https://www.npr.org/2020/01/28/800442646/acclaimed-harvard-scientist-is-arrested-accused-of-lying-about-ties-to-china; and U.S. Department of Justice, Information About the Department of Justices China Initiative and a Compilation of China-Related Prosecutions Since 2018.. See Japanese Prime Minister and Cabinet, [Review Committee on the Enhancement of Intelligence Functions], February 14, 2020, www.kantei.gojp/jp/singi/zyouhou/index.html. Only a collaborative, multilateral response among like-minded democracies can sustain technological leadership and an open, stable international system during these tumultuous times. This last point when combined with a cultural stigma in Japan that discourages academic and private sector researchers from doing direct military workwith some exceptionslimits opportunities for bilateral R&D that might have defense applications.59. That said, because private sector R&D focuses more on proprietary and profit-driven applications, private firms tend to prioritize research that is qualitatively different and less widely shared than public sector basic science research. to Block Sales to Chinese Tech Company Over Security Concerns, New York Times, October 29, 2018, https://www.nytimes.com/2018/10/29/us/politics/fujian-jinhua-china-sales.html. Japan and the United States have watched warily as Chinas economic heft has grown and as the technological sophistication of its manufacturing base has increased. 189 For more information, see the following website. The allies goal should not be to defeat China but instead to sustain their own high level of competitiveness and foster an open global economy with enforceable rules that maximize international involvement, encouraging Chinese participation whenever possible as an equal member. At a congressional hearing in 2020, the vice president for research at the Georgia Institute of Technology urged lawmakers to increase our cooperation with allies who share our values in pursuit of technical and policy solutions to solve global problems, and to safeguard the resulting technologies . In Japan, the ratio of government-funded research has been low traditionallyless than 20 percent of total R&D spending domestically.143 And with the highest government debt-to-GDP ratio among members of the Organization for Economic Co-operation and Development (OECD), Japan is always looking for ways to leverage partnerships and maximize its limited government R&D investments.144 Chinas spending on R&D in terms of GDP eclipsed that of Japan around 2009, and it rocketed up to three times larger than Japans total over the decade that followed (see figure 4). Neither the United States nor Japan can afford to enter this competition ill-prepared or on its own. In fact, at least a few universities have even embraced this as an opportunity to attract top Chinese talent, if the United States decides to reject them.130 Needless to say, Japanese officials who share U.S. government concerns are dismayed by any downplaying of the risks associated with Chinese researchers and scientific funding, and they want to avoid a scenario in which a U.S.-blacklisted Chinese grad student winds up at a high-profile Japanese university. However, science and technology developed rapidly after the Second World War, which has affected the advancement of vehicle technology, consumer electronics . In the United States, this impetus produced the Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018.103 FIRRMA strengthened the role of CFIUS in reviewing any noncontrolling investment in U.S. businesses involved with critical technologybeyond defense interestsor collecting Americans personal data. The challenge for Tokyo and Washington is to leverage their common concerns about Beijings economic behavior and minimize the differences between their respective approaches. Strengthen the fundamentals of information and technology security: Building up Japans absorptive capacity on the technology security front is an important part of improving bilateral coordination on technonationalist policies, as is less U.S. rigidity over the acceptability of Japanese security processes that focus more on achieving equivalent effects rather than uniformity of processes. It is possible that some of these areas would include applied research with military relevance that could be classified, but the majority of it would be open, perhaps carried out under a more broadly designed and rigorous concept of research integrity to which all participating partners would agree. For more information, see Laurel Wamsley, Shinzo Abe or Abe Shinzo? There are also gaps that could be filled between Japanese and U.S. technonationalist approaches to further improve bilateral collaboration. TOKYO -- China is overtaking the U.S. in artificial intelligence research, setting off alarm bells on the other side of the Pacific as the world's two largest economies jockey for AI supremacy. According to earlier research the China AI Development Report 2018 project, which one of us (Li) helped spearhead as well as an ongoing study of the economic and social impacts of AI. Finally, for certain end uses and users linked to possible cases of weapons proliferation, many countriesincluding the United States and Japanuse a catch-all system to make sure even unlisted items are not exported to certain people and places that might try to use the products for nuclear, chemical, or other weapons programs.65, Japan only began allowing defense equipment sales overseas starting in 2014 (effectively), and its exports are negligible compared to U.S. exports.66 The few defense goods Japan exports must be approved by the Ministry of Economy, Trade and Industrys trade control department, and if the exports are politically sensitive enough, the National Security Council must decide. Japans new economic security team at the National Security Council can help with these objectives, but it will need a clear and empowered counterpart within the U.S. government. Strikingly, Japanese companies were the second-largest group of investors in local R&D among foreign companies invested in the United States, and they likely exceeded UK firms when the numbers for 2020 are tallied. 6 Organisation for Economic Co-operation and Development (OECD), Research and Development Statistics, accessed April 13, 2020, https://stats.oecd.org/Index.aspx?DataSetCode=MSTI _PUB. In addition to its own classified information management system, the U.S. government created a National Industrial Security Program in 1993 to protect classified information as it contracts with the private sector and academia. In December 2019, the allies signed an agreement on quantum cooperation that could facilitate some jointly funded research in the coming years.188 Private companies in both countries are making major investments and reporting important breakthroughs, but this is a decades-long R&D marathon to which China is equally committed. The prevailing innovation model has changed dramaticallyaway from one characterized by government-supported domestic basic science and defense research to one that is more dual-use oriented, reliant on the private sector, and international. Chapter: Japan Previous: III. In the last few years, Tokyo and Washington have each made a variety of policy and legal changes related to how they approach this challenge, but coordination has been difficult with an unpredictable U.S. administration led by President Donald Trump. Toshiba was the first to produce them for a mass market. 45 Author interview with a former American participant in the JHLC, March 9, 2018. Chinas per-capita gross domestic product (GDP) remains low, for example, ranking seventy-three in the world behind countries like Botswana and Turkmenistan.33. Wassennar Arrangement, About Us, accessed April 15, 2020, https://www.wassenaar.org/. Moreover, the budgets of the firms overseeing the certification process come from fees submitted by applicant companies, creating some concerns about potential conflicts of interest. And with the coronavirus pandemic simultaneously deepening U.S.-China strategic competition, all of these factors combine to challenge any single countrys ability to manage the ensuing dynamics coherently. . A total of 1,688 (88.7 percent) of the applications valued at $4.7 billion were approved, a higher percentage than the United Kingdoms (UK) proportion (1,739 or 85.5 percent of its applications) and those of all overall destinations worldwide (29,032 or 85.8 percent of applications).57 No such Japanese applications have been denied since 2015. 60 Although the Department of Defense does not have a Security of Supply arrangement with Canada, it is included in this number because the U.S. Department of Commerce has a memorandum of understanding with Canadas Department of Public Works and Government Services to mutually provide support. See BIRD Foundation, What Is BIRD?, https://www.birdf.com/What-is-BIRD/ and Indo-U.S. Science and Technology Forum, About Us, https://www.iusstf.org/about-iusstf. The Japanese government was waiting for this appointment before it engaged fully on a new S&T cooperation agenda, because it believed that a JHLC meeting without such an appointee would be an empty vessel.180 The meeting finally occurred in May 2019 on short notice, and the resulting joint statement highlighted AI, quantum science and technology, and bilateral space cooperation.181 By extension, data governance and data sharing will be important components of such collaboration too. 155 Demetri Sevastopulo and Yuan Yang, Ex-Google Chief Warns of Need for AI Cooperation with China, Financial Times, November 4, 2019, https://www.ft.com/content/6a1de5b6-ff5f-11e9-b7bc-f3fa4e77dd47. The U.S.-Japan alliance has never been just a security pact. The long-term impact of the pandemic is unclear at this stage. Similarly, Tokyo and Washington created companion-type dialogues in 2013 by way of the U.S.-Japan Cyber Dialogue and the Cyber Defense Policy Working Group, which promoted an interagency cooperative approach to capacity building, openness, and interoperability in cyberspace as well as strengthening cybersecurity and accountability. Kanuman/Shutterstock In a country with a. For example, all the work on AI and robotics that the Toyota Research Institute carried out at its facilities in Massachusetts, Michigan, and California counts as U.S.-based research. 105 James Politi and Eric Platt, US Exempts Allies From Some National Security Deal Reviews, Financial Times, January 13, 2020, https://www.ft.com/content/41d71314-364d-11ea-a6d3-9a26f8c3cba4. Mark Zuckerberg's Meta is pushing ahead with plans to launch a rival to Twitter because public figures reportedly want a . 136 Promotion of technology alliances and ecosystems is one of the four key pillars for a new U.S. innovation strategy advocated by a Council on Foreign Relations task force report. Global, Networks / Cyber, Pentagon, Threats; China Leads US In 3 Of 6 AI Areas: Bob Work The US has a narrow edge in its talent pool, its hardware and its algorithms, but China is ahead in . Kurtis J. Zinger, An Overreaction That Destroyed an Industry: The Past, Present, and Future of US Satellite Export Controls, University of Colorado Law Review 86 (2015), http://lawreview.colorado.edu/wp-content/uploads/2015/07/13.-86.1-Zinger_Final.pdf. Therefore, the country has started to invest in technological innovation early in time. Hello. Bush administration hailed a series of agreements with Japanprompted by threats of Super 301 tariffsthat opened Japans market for supercomputers and satellites, among other products. The Trump administration has explored the idea of making it easier to control some fundamental research and its dissemination, but a report commissioned by the National Science Foundation on this issue reaffirmed the value of traditional U.S. policy.141 The report recommended that the foundation should discourage the use of new CUI [controlled unclassified information] definitions as a mechanism to erect intermediate-level boundaries around fundamental research areas. Still, as noted previously, the report also suggested that research integrity should be defined more broadly to include full disclosure of commitments and actual or potential conflicts of interest so as to actively engage foreign researchers in the United States to foster [such] openness and transparency in fundamental research, nationally and globally.. These developments reflect the expansion of national security concerns to include safeguarding economic competitiveness and protecting domestic innovation. Other than American music, I think overall my favorite location is Japan. 77 (New York: Council on Foreign Relations, 2019), 29, https://www.cfr.org/report/keeping-our-edge/. But if technonationalism becomes a broader and more intense practice that many other countries around the world widely copy, it will stunt growth and limit humanitys ability to address collective challenges. Japan and the United States are not unique in wanting to attract high-level engineers and scientists. It is worthwhile to assess some of the most important measures the U.S. and Japanese governments have employed to try to protect classified and proprietary information while keeping their technological edge. "I think there is a consensus that without increasing . doi: 10.17226/2030. 192 White House, Executive Order on Establishing the National Quantum Initiative Advisory Committee, August 30, 2019, https://www.whitehouse.gov/presidential-actions/executive-order-establishing-national-quantum-initiative-advisory-committee/; and Noriaki Koshikawa, Japan Plots 20-Year Race to Quantum Computers, Chasing US and China, Nikkei Asian Review, November 23, 2019, https://asia.nikkei.com/Business/Technology/Japan-plots-20-year-race-to-quantum-computers-chasing-US-and-China. Since then, new multiyear initiatives have been launched between SoftBank and the University of Tokyo on AI, Hitachi and Kyoto University on smart cities, and between several other partners in other areas. Science and technology in Japan has helped fuel the rapid industrial and economic development of the country.Japan has a long history and tradition for scientific research and development, stretching as far back as the Meiji period.. Combining stable growth with continual. The index is up 4% for . 91 Office of Senator Rick Scott, Sen. U.S. firms prospered because of their ability to innovate and compete effectively, not because of such technonationalist or protectionist measures. in science and technology relations with Japan . One possible approach is outlined below (see figure 5), developed by the author and an experienced consultant for U.S.-Japan science collaboration programs, Douglas Rake.175 The primary benefit of this approach is that it puts a wider range of scientists and technology specialists in closer and more regular contact with policymakers from both countries. Also based on author interview with an METI official, June 22, 2017. While Congress argued over whether and how to support American chip makers and research in. A fundamental challenge for the allies is that China is a massive economy with a powerful and expanding military, not afraid to flex its muscles even though it still has some characteristics of a developing economy. These limitations are both a legacy of the U.S.-Japan innovation rivalry in the 1980s and a product of Japans different standards for export controls and classified information. In addition, movement toward drafting the state secrets legislation of 2014 began in December 2006 when the first Abe administration established the Review Committee on the Enhancement of Intelligence Functions (). 154 Rob Portman and Tom Carper, Threats to the U.S. Research Enterprise: Chinas Talent Recruitment Plans, U.S. Senate Permanent Subcommittee on Investigation, Committee on Homeland Security and Governmental Affairs, November 18, 2019, https://www.hsgac.senate.gov/imo/media/doc/2019-11-18%20PSI%20Staff%20Report%20-%20China%27s%20Talent%20Recruitment%20Plans.pdf. . 39 The Systems and Technology Forum was reorganized in 2003 during the Bush administration. Hitachi, for example, warned in its formal comment submission on proposed export controls that an overly broadeven ambiguousdefinition for emerging technologies could . The biggest worry that triggered this policy shift has been the billions of dollars Chinese firms have sought to invest in innovative U.S. high-tech start-up companies.104 FIRRMA also allows CFIUS to discriminate based on the source country of investment, which is how the Department of Treasury created exemptions for Australia, Canada, and the United Kingdom.105 This special treatment was credited to these three countries robust intelligence-sharing and defense industrial base integration mechanisms with the U.S. This is a level of U.S. confidence that the Japanese government aspires to reach. This approach makes little sense when one compares the depth and breadth of U.S.-Japanese military interactions with those between the United States and New Zealand, for example. For example, the United States has security-of-supply arrangements with nine other countries but not with Japan.60 These agreements allow for the mutual supply of defense goods and services on a priority basis, when requested. The U.S.-Japan alliance has changed the least in the area that now matters the most: high-tech competitiveness and innovation. 3 How is Japan more technologically advanced? Ahead of Kishida's meeting with United States President Joe Biden on Monday, experts say the world's third-largest economy is reevaluating its approach to deterrence and showcasing itself as a . The Japan Foundation Center for Global Partnership and the Carnegie Endowment for International Peace provided vital financial support. Meanwhile, dual-use technology will continue to be politically sensitive in Japan for the foreseeable future, but there should be ways to respect this reality while expanding the cross-fertilization of ideas in ways that a separate track of bilateral cooperation can follow up on (by means of, say, a handoff of sorts between bilateral S&T collaboration and the Systems and Technology Forum). 146 Exascale computers can attain computing power of 1018 floating-point operations (or exaflop) per second. 1779 Massachusetts Avenue NW 82 Asa Fitch and Bob Davis, U.S. Japan also quietly strengthened penalties for violating export controls in 2017.97 When Japan has made headlines with unilateral moves on export controls in recent years, it has been either to relax rules for Japanese defense equipment exports (in 2014) or as part of a bilateral dispute with South Korea that had nothing to do with protecting domestic industry.98, When Japan has been more aggressive in other areas of defensive technonationalismmost notably by imposing additional restrictions on inward FDI and protecting national secrets and intellectual propertyits actions have been due at least partially to encouragement or prompting from the United States. . [and] a decoupling at the human level would hurt the United States.155 The chairwoman of Americas National Science Board also points out that as of 2017, over 40 percent of our doctoral-level science and engineering workforce was foreign born . The technonationalists believed that national interests were best served by protecting and subsidizing certain domestic firms and limiting technological collaboration with other countries. It could be significant in differenteven conflictingways: for instance, the worldwide response could accelerate the adoption of new technologies and spur countries to compete to adapt to more virtual activities in light of social distancing imperatives, or it could perhaps slow things down as government and corporate debts pile up and as R&D funding sources are diverted. This AI network could include more coordinated AI R&D spending and cooperative arrangements in data sharing, hardware, export controls, and talent exchanges, along with collective efforts to build a more robust AI-literate workforce in participating countries.184 They could more efficiently allocate alliance resources and . Japan generally handles such contract requirements on a ministry-by-ministry basis (rather than a national basis), a point that has generated some alliance friction when government-protected information is at stake and private companies are involved. See White House, Adjusting Imports of Automobiles and Automobile Parts Into the United States, May 17, 2019, https://www.whitehouse.gov/presidential-actions/adjusting-imports-automobiles-automobile-parts-united-states/. Meanwhile, government-affiliated research institutions have picked up the slack and are carrying out this work, in many cases through joint appointments whereby university scientists can be affiliated with an outside research lab.177 Overall, Japan should continue looking for ways to promote greater cross-fertilization between nondefense and defense-related science R&D communities so that potentially dual-use technology areas benefit fully from the countrys scientific expertise.178. The world could be in for an extended era of technonationalism lasting several decades. 151 Cabinet Office of Japan, Science, Technology and Innovation, https://www8.cao.go.jp/cstp/english/index.html. Japan's new National Security Strategy, which will be released later in 2022, will likely address similar technology-related issues as key to both national security and economic security. 161 Japans Electronics Makers Break the Bank to Woo Talented AI Engineers, Japan Times, December 23, 2019, https://www.japantimes.co.jp/news/2019/12/23/business/corporate-business/japan-electronics-makers-ai-engineers/#.XuBqZFNKjVq; and Ichiko Fuyuno, In Japan, Corporates Make Reluctant Partners, Nature Index, December 20, 2017, https://www.natureindex.com/news-blog/in-japan-corporates-make-reluctant-partners. 166 James Manyika and William H. McRaven (chairs) and Adam Segal (project director), Innovation and National Security: Keeping Our Edge Independent Task Force Report No. For example, the giant defense contractor Lockheed Martin budgeted only $1.2 billion for R&D in 2018, or about ten times less than Apple and twenty times less than Amazon.166 Together, the top five U.S. companies spent around $76 billion on R&D in 2018, and analysts forecast that they will likely spend more than $160 billion in 2022.167 Meanwhile, the top five defense contractors spent a combined $8 billion in 2018. Now these firms possess some of the worlds most coveted technology, investing more than most governments do to push new boundaries and accelerate change through design and systems integration. 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