Abstract
The Science and Technology Basic Law, enforced in 1995, gave science and technology top priority in the national policy. It also requires the Government to formulate the Science and Technology Basic Plan. The current plan is the second one covering FY2001-2005. Its main goal is not only to facilities and equipment increase the science and technology budget, but to create a more dynamic, competitive R&D systems driven by individuals' creativity. Various reform measures have been implemented. However, Japan has yet to solidify its strategic programs and systems to survive global competition and to cope with changes in the domestic environment such as the decreasing birth rate and growing interest in safety and security. Now, vigorous discussion is expected to develop the 3rd Basic Plan.