The overall structure of Japan's funding system has changed greatly since the 1990s. Rapid increases in the number and scale of competitive funds, along with the establishment of relevant rules and institutional mechanisms, have stimulated R&D activities at Japanese universities. So far, however, the competitive funds have not been designed based on rigorous policy analysis. In operating and improving the competitive funds, it is important for Japan to learn from the historical experience of the United States, which is by far the most advanced country in the operation of grant systems. It is also necessary to identify problems for competitive funds in Japan from the perspective of university researchers who actually conduct R&D.