Independent Innovation Among Chemical Powers——The Third of Development Strategy of Chemical Technology in Japan

From the end of World War II to the early 1960s, Japan's chemical industry was primarily focused on expanding its scale, relying heavily on imported technology from abroad. However, as the decades progressed, especially after the 1960s, Japan began to shift its strategy. While it continued to adopt foreign technologies, it also placed a strong emphasis on developing its own technological capabilities. This strategic move proved effective, and Japan eventually emerged as a global leader in the chemical industry. Following the oil crisis, Japan faced significant challenges that forced it to accelerate its technological innovation. In response, it introduced the "Principal Technology Research and Development Grant System" to stimulate innovation and improve efficiency. By the 1980s, the focus of technology importation had shifted from quantity-driven growth to a more quality-oriented approach centered on independent research and development. The Ministry of International Trade and Industry (MITI) played a central role in driving industrial innovation, particularly in the chemical sector. Throughout the 1960s and 1970s, MITI initiated several large-scale R&D projects. For example, between 1966 and 1971, over 2.6 billion yen was invested in desulfurization technology. Another major project from 1967 to 1972 focused on new olefin production methods, with 1.1 billion yen allocated. Additionally, 6.7 billion yen was spent on seawater desalination and by-product utilization between 1969 and 1971. After the energy crisis, Japan significantly increased funding for raw material optimization and the development of alternative energy sources. By the 1980s, Japan had already undergone a period of rapid technological growth, and the government recognized the importance of basic research and long-term technological development. In 1980, the Japanese government officially adopted the policy of "building a country through science and technology" in its Science and Technology White Paper. This marked a clear shift from reliance on foreign technology to the pursuit of original, self-developed innovations, with chemical industry advancements being a key component. As a result, the research investment of the Japanese chemical industry grew rapidly. According to the Science and Technology Policy Research Institute, while Japan’s applied technology was strong, its fundamental scientific research lagged behind the U.S. To address this, Japan proposed in 1995 the need to "build the country through scientific and technological innovation," aiming to transform from a technology-based nation to one driven by scientific innovation. Since the 1990s, the focus of R&D in the Japanese chemical industry has gradually shifted toward basic research. In the early 1980s, basic research accounted for 10.1% of R&D spending, rising to 14.2% in 1992 and 14.3% in 1995. Over time, the proportion of application-focused development decreased, while investment in fundamental research increased. By 1995, R&D spending in the chemical industry reached 5.33% of sales, second only to the electronics and machinery sectors. Today, Japan remains a global leader in chemical engineering technology, with continuous investments in research under various government policies. After structural adjustments, the industry experienced renewed growth. In 1990, Japan's chemical sales reached $177.13 billion, accounting for 13.3% of global chemical sales. By 1995, this figure had risen to $255.28 billion, representing 18.6% of the world market. Japan has effectively integrated advanced technologies from around the world, enhancing the overall productivity of its industrial sector. Technological innovation became a key driver of economic growth, significantly boosting labor productivity. Despite a decline in the number of workers in the chemical industry since 1970—down by 16.6% between 1970 and 1980—labor productivity rose sharply, from an average of $28,000 per worker in 1970 to $194.3 million per person by 1981. As a resource-poor country, Japan imports 90% of its chemical raw materials. The product structure reflects a focus on high-value-added products: 40% of annual production consists of basic chemicals, while 60% are high-tech fine chemicals. This strategy highlights Japan's commitment to maximizing value through deep processing, which explains why the industry contributes 7.3% to GDP but generates 9.5% of total added value. This success is largely due to advanced chemical production technologies, offering valuable lessons for countries like China.

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