Nearly 4 years has already passed since the Ministry of Education, Culture, Sports, Science and Technology (MEXT) started the "Knowledge Cluster Initiative" in 2002. 18 areas have been chosen and an intermediate evaluation was done last year. The efforts in order to form a local innovation-system towards a cluster have been improving in these years, but they still have some problems.
The purpose of the "Knowledge Cluster Initiative" is to accelerate the early-stage process of the cluster forming, and MEXT set a 5 years' period for implementing this project. Therefore, most of the areas will enter the last year of the project. The new policy for the next period is required, which will start in 2007 and make full use of the results of the Knowledge Cluster Initiative. MEXT has already started examining measures of the new policy under "the 3rd Basic Plan on Science and Technology in Japan".
At this article, the author is discussing on issues, problems and future MEXT's policy on the local innovation systems towards forming clusters.

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NEDO has conducted many R&D projects. Some projects have led innovation, but others have not. What is a turning point? I analyzed this problem based on 90 evaluation reports on NEDO projects. I found the importance of appropriate "industrializing Scenario" and its 4 necessary conditions, which are (1) defining targeting new business, (2) goal setting based on market competition, (3) defining subjects for R&D, (4) prospect of technology seeds or research methods. This should be applied to university-industry partnership projects.

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Requisites for industrializations are discussed on four cases, namely, developments of corrosion inhibiting system in wire cut discharge machining, millet containing bread, shape measurement system for artificial relics and maintenance-free fish road in sabodam, accomplished by the Industry-University-Government Collaboration Program supported by Ministry of Education, Culture, Sports, Science and Technology and Japan Science and Technology Corporation. Every research and development promoted should be based on a definite need, but they are not always actualized, so some devices of entering into markets are indispensable. Originalities of researchers in a university sector and developing powers in an industrial sector and so forth are other requisites, but some cases are lead by the university sector. Features of two university-venture companies founded by this program are discussed. Liaison activities based on a distinct recognition for the industrializations are desirable, besides economic supports for the researches and developments.

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The research position of empirical software engineering aims at improving productivity and quality based on measurements. To do this, it is important to use real software development projects for research. However, in Japan, academia has traditionally had relatively little access to real software developers, nor has industry had access to the expertise accumulated in academic institutions.
Since 2003, the authors have been field testing a new framework for academic-industry collaboration aimed at resolving this issue.
This paper describes the framework used in a project in terms of its conception, two years in initial use, and implications for implementing sharing of field data between industry and academia. It also describes a generalized approach to the intermediary role between academia and industry suggested by the concepts of technology arbitrage and the market make method in the financial field.

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Public research organization has a different characteristic from university and is an important player for industry-academia collaboration. Its situation has been substantially changed recently because of the transformation into independent administrative institution, and it is required to promote unique strategy for the collaboration. By analyzing the joint research of the National Institute of Advanced Industrial Science and Technology as a case example, this study has revealed the tendency from the view point of location, partner, research unit and per researcher. 4 items are indicated as the problems for strengthening the collaboration, which are a) penetration into regions, b) enhancement of presence, c) collaboration methods suitable for various research units, and d) improvement of the quality of joint research. 3 items are proposed for the strategy, which are (1)cultivation of regions by utilizing regional centers as front-line bases, (2)comprehensive proposal activities based on an overall view of research and development reaching social needs, and (3)systematic outside fund acquisition and project management.

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A follow-up survey was conducted to managers of small and medium-sized enterprises collaborated with National Institute of Advanced Industrial Science and Technology for the product development. The authors concluded five secrets of success for public research institutes to collaborate effectively and efficiently. 1) Collaborating with high-technique enterprises and to bring out their ability, 2) collaborating with enterprises owing strong will to grow in future and to proceed R&D, 3) sharing image of the markets, the products, and the customers, 4) leading the circumstance change toward business success, 5) organizing appropriate member in each collaborating group.

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The Focus Center Research Program (FCRP) initiative was launched in 1998 in the United States of America. FCRPs, which are programs for the semiconductor field, are based on inter-university collaboration and funded by both the industry and the government. From the industry, the Semiconductor Industry Association (SIA) and related companies such as equipment manufacturers have taken part in the funding of FCRPs. The Microelectronics Advanced Research Corporation (MARCO) was established in 1997 to manage FCRPs from the industry side. From the government, the Defense Advanced Research Project Agency (DARPA), Department of Defense, and two related organizations have participated. Five FCRPs are currently being executed by the respective virtual research bodies, each of which is composed of a core university and eight to fifteen other universities. It should be noted that the industry, universities and the government share the common policy to realize the best combination of universities for the highest research productivity.

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Universities are expecting to play a core role of forming the industrial clustering since M. Porter's theory. The object of this paper is to clarify the causes for a poor industrial clustering in Tochigi area. In order to accomplish this purpose, we have conducted the follow-up survey of joint researches in Utsunomiya University. The causes are as follows.
1) The joint researches in Utsunomiya University are not so fruitful in a couple of years.
2) The middle sized and small businesses are shaping the thin supply chain with the big manufacturers in Tochigi.
3) Entrepreneur-ship has been lacking for the middle sized and small businesses.
We discovered a few innovations through university-industry activities based on the face-to-face and direct relationship. Consequently the industrial clustering will be forming gradually in Tochigi.

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