The 5th Japan's Science and Technology Basic Plan provides many descriptions about reforming universities and enhancing their functions, including strengthening funding reform, promoting reforms in graduate school education, and developing and improving career prospects of young researchers. Each of these reforms and enhancements is an essential policy component for “Innovation.” Funding reform requires indirect costs of competitive grants in the amount of 30% of direct costs and encourages universities to enhance their basic policies, such as the employment of young researchers, female researchers, and URAs. Graduate school education reforms mean career counseling for young doctors. Many young doctors cannot find academic positions due to lack of assistance from the university. Graduate school education should prepare graduates for job hunting in the industrial sector. Career prospects of young researchers are also related to the previous two topics. Personal circulation can promote activity of university and innovation.