If done right, Japan’s new national endowment fund to support university research could yield massive benefits. But the next several years will be critical for putting its asset portfolio on a better footing, selecting appropriate recipients, and setting conditions to shape how its resources are deployed.
TOKYO – Rightly concerned about a decline in Japanese universities’ research capabilities, the Japanese government has created a ¥10 trillion ($67 billion) fund to address the problem. While cash accounts for around 11% of the new University Fund of Japan (UFJ), the remaining 89% takes the form of a 20-year “loan” from the government, which borrowed the money from the market at a very low interest rate.
TOKYO – Rightly concerned about a decline in Japanese universities’ research capabilities, the Japanese government has created a ¥10 trillion ($67 billion) fund to address the problem. While cash accounts for around 11% of the new University Fund of Japan (UFJ), the remaining 89% takes the form of a 20-year “loan” from the government, which borrowed the money from the market at a very low interest rate.