An artificial system is not necessarily controllable; it may grow into a natural system that develops according to its own laws. A good example is the market economy. The lesson of the collapse of the planned economy is that an artificial system develops fully only when dealt with as a natural system. Science and technology seen at the national level also constitute a natural system that evolves together with the society, economy and defense. Science and technology in this sense requires two targets for the national policy to pursue: first, inducing desirable evolution of the natural system by coordination of different policies covering scientific/technological, economic, social, safety, and other issues to provide favorable circumstances; second, supporting the handicapped part produced by the evolution, which is left out of the circulation of the resources, for equality and justice in social development. Outgrowing planned science and technology is one of leading ideas for the national policy on science and technology.

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The management of technology (MOT) in Japan is on the brink of an overall shift in paradigm: creation of original targets and leadership in the effort to realize them is a prerequisite for survival. How to create original targets is now the central task of the MOT, which is different in nature from the traditional "catch up" management. While the American industry has resumed growth by management innovation which overcame the management Japanese style they absorbed themselves, Japan is now urged to establish a new management methodology that surpasses the traditional style. This methodology should focus on the linkage of technology to management and higher integration of the industry, academy and government. In addition, a new metrics is needed for dynamic, high-quality management of R&D activities that form a typical complex system. This requires naturally education of MOT specialists skilled in those new methods and techniques. Strategic planning for creation of new industries is the most important task of the present Japan. For this purpose we propose creation of a new type of science/technology specialists that may be called "science & technology producers", and of a "techno-flow market" to promote technology transfer on the basis of the market mechanism. Establishing social infrastructure for R&D including these elements is an important task for Japan to live on its originality in science and technology.

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Experiences in the past 25 years in the development of sensory substitutes for the disabled have led the author to the research on the virtual reality by which sensory images are created that approximate what the lost sensory organ would sense but does not actually exist. Findings thus obtained on concept formation, sensory association and other functions of the brain have philosophical implications. The paper presents an overview of a new system of technology that emerges from the virtual reality research.

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The structure of the computer industry has experienced a change from a vertically integrated type to a multilevel horizontal network. While a mainframe machine manufacturer was producing everything from components to final products, a modern PC producer assembles components, including microprocessors, hardware, operating systems, and application software packages, provided each by many other suppliers. Similar structural changes are in progress in other sectors. The horizontal network needs collaboration and coordination of multiple units. The R&D activities in this structure will involve disclosure of ideas and organization of cooperating partners. The development process will thus imply marketing and contribute to the establishment of "de fact" standards. This type of R&D fits better to smaller ventures or industry-academy cooperation projects than to central research laboratories in large enterprises.

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The industrial society created by development in science and technology needs a particular type of specialists to maintain itself. The modern public education has provided highly skilled scientists, engineers and workers for the past 150 years. However, the sophistication and the resulting structural changes of the industry that took place for the recent decades now require structural changes also in the education sector. In parallel to these changes, the structure of research is shifting from Mode 1, based on individual disciplines each of which form its own community of researchers, to Mode 2, based on transdisciplinary groups of scientists of different disciplines corresponding to particular social needs. These changes urge the educational system to shift from the traditional schooling of the youth to a system based on lifelong education.

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Long-term growth of enterprises depends on business mix renovation to cope with changes in markets. The Japanese manufacturing companies are highly dependent on their own R&D, whose results are critical in creating new business lines. A portfolio management of R&D subjects in progress will be effective in this circumstance as a guidance to manage business mix renovation. Saving business resources is a leading principle in today's situation where growth in business scale is harder than ever. The present report describes the principle of the R&D subject portfolio, and applies it on a long-term analysis of business mix renovation I the camera industry, which has typically responded to a saturated market with new businesses developed from the traditional products.

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The present work analyzes results of long-term technology forecasts recently accomplished in Korea, Japan and Germany. A purpose of the analysis is to find the propensity of Korean view of future technology by comparing the three countries as for the respondents' expertise, and expected times of realization and obstacles perceived in the realization of forecast items. Another purpose is to discuss the direction in which science and technology will develop in future comparing the answers on the importance and expected times of realization of forecast items. Thus the study will contribute to policymaking in science and technology by governments and planning in enterprises of research and development.

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Selected thirteen statistics were used or analysis of the structure of science and technology (S&T) activities in Japan, the U.S., Germany, France and the United Kingdom. Factor analysis shows that the S&T activities in those countries share two factors: a "science-technology" factor and an "input-output" factor. The structure of the S&T activities in the five advanced economies was described in terms of these factors. In addition, recent developments in S&T in the five countries were illustrated using a newly developed general indicator of science and technology (GIST). The analysis also revealed discrepancies between definitions given in the statistical documents and the reality, which should be carefully considered in the work process of analysis. Factor analysis combined with principal component analysis revealed that the S&T activities in the developed countries can be described in terms of three factors: size; science and technology; and input and output. These results provide a measure for evaluation of the level of Japan's R&D as a whole.

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