This paper points out the problems in education in graduate school of engineering and science and of national policies, and discusses what to do. The most important thing to do is to reform each class or course work and heavily research-oriented education. Namely, the education should be changed from lecture-based one into the education with proper combination of lecture, exercise, laboratory, project, homework, research and product development. The government should induce the reform strategically by encouraging and supporting various initiatives from the planning stage.