AbstractA century ago, Japan was extracting technical knowledge and skills by student and other exchanges with abroad — until she had acquired that information. Although excellent at commercially exploiting technology, Japan often remains dependent on technical ideas originating outside Japan. Political and other pressures are demanding more originality from Japanese science and technology. This requires a new emphasis on basic research, more tripartite co-operation between government, industry and academics, and a shift towards meritocracy in education. The militarisation of R&D must be avoided. Given Japan's technological strengths, it will not be easy to reduce the trade tensions with other countries.