In September 2023, Tohoku University was selected as a candidate for the International University of Excellence, supported by a university fund. With a fund size of 10 trillion yen, expectations are high, but can it curb the decline in research capabilities? This article analyzes its system design and policy process. The university fund, managed by the Japan Science and Technology Agency, involves borrowing financial investment funds to create and market-manage a fund that supports specific universities in becoming world-class research universities. The plan is to contribute 300 billion yen annually. For universities to be accredited, they need to strengthen their research and administrative systems. Government documents appraise universities like Harvard...

Japanese companies and their leaders’ risk-averse nature have led to missed growth opportunities in the global market. To overcome this, a fundamental enhancement and development of management personnel are crucial. Entrepreneurship involves understanding one’s capabilities and taking on market and technological risks while developing unique strategies for creating new value and returns. However, a study by Yasuhiro Arikawa, an associate professor at Waseda University, in 2017 showed that Japanese companies ranked 26th out of 27 major countries in risk-taking and last in return on assets (ROA). This highlights the issue of low returns due to a lack of risk-taking. Japanese firms face various challenges due to this risk aversion. They...

Nikkei Inc., renowned for its economic news coverage, is set to cease publication of two of its specialty papers, Nikkei Sangyo Shimbun and Nikkei Veritas, by the end of the year. This decision comes amidst a challenging climate in the declining newspaper industry, exacerbated by surging costs for newsprint and a shortage of writers. Despite Nikkei’s relative advantage over other national newspapers, its flagship paper has seen its circulation halve from its peak, and growth in digital subscriptions has stagnated. The company marks the 50th anniversary of the Nikkei Sangyo Shimbun this October, a publication born to compete with the Nikkan Kogyo Shimbun during the industrial boom. It is known...

The recent depreciation of the yen has ignited a multifaceted discussion about its consequences and the evolving landscape of Japan’s economy. While this depreciation has certainly bolstered the export sector and improved corporate performance, it has also raised concerns about the impact on the average citizen’s purchasing power. Japan’s persistent structural trade deficits and its significant reliance on government spending have provided a safety net against fiscal collapse. However, this approach has come at the cost of eroding the credibility of its currency on the global stage. The currency markets bear the brunt of these adjustments, leading to the continuous depreciation of the yen. While this may benefit exporters and...