Abstract
This paper studies on the employment of foreign scientists and engineers (S&E) in Japan, focusing on the reasons for the employment, the relationship between the employment and overseas activities, and their roles and contributions in non-profit research institutes, private companies emphasizing R&D, and information-service industries. One of the notable findings is that securing a certain amount of capable S&E is the most important reason for employing them; however, this does not mean hiring internationally distinguished S&E. Most foreign S&E do the same work as Japanese S&E, and their performance is of a similar level. In other words, Japanese and foreign S&E are substitutable to a large extent. This study also provides empirical evidence that organizations performing collaborative R&D with foreign organizations and/or outsourcing R&D and design overseas tend to employ foreign S&E. Foreigners' specific knowledge about foreign markets, laws, and technology, and foreign language skills are valuable for those organizations.
