APAC Supplement

Japan’s bold 25-year funding experiment

An enormous government fund with a long horizon aims to reform Japan’s HES and improve its global standing.

By Rohan Mehra

APAC Supplement

Japan’s bold 25-year funding experiment

An enormous government fund with a long horizon aims to reform Japan’s HES and improve its global standing.

By Rohan Mehra

15 October 2026

In brief

  • Japan has launched a 25-year, US$63 billion university fund to overhaul higher education and boost its global standing.
  • The initiative drives US-style matching endowments, governance reforms, international collaboration and measurable societal impact.
  • Long-term success relies on converting funds into deep institutional reform without widening inequality across the higher education sector.

When you hear about a large research funding exercise anywhere in the world, it often comes with expectations of heightened research output, tangible economic impacts or greater focus on some specific area; AI in the US ticks those boxes. But in Japan, the Ministry of Education, Culture, Sports, Science and Technology (MEXT) has committed ¥10 trillion (~US$63 billion) over 25 years to transform universities in ways that extend beyond research output.

First awarded in 2024, MEXT’s Universities for International Research Excellence (UIRE) accreditation appears forward-thinking, socially aware and could, by accident or design, create the blueprint for Japan’s 21st-century research university.

More than a research fund

UIRE can perhaps be seen as the logical evolution of earlier instances of higher education sector reform. For example, the 2004 National University Corporation framework aimed to increase autonomy and accountability amongst the national universities, though it did not concern itself with impacts or economic matters.

UIRE builds on this, and the accreditation criteria strongly imply what MEXT thinks a world-class university ought to be, requiring not only a high standard of research, but demonstrable utilisation of it too. Other aims include increased interdisciplinarity, industrial partnerships, international cooperation, reduced administrative overhead and crucially, financial self-sustainability.

With accreditation comes some of that ¥10 trillion funding, but this is mostly a matching mechanism to encourage recipient universities, whether private or public, to raise their own funds in increasingly diverse ways. Part of the funding is matched to an institution's five-year average for non-public self-raised funds, with another chunk based on how much the institution puts into its own endowment.

For those already familiar with higher education funding, this pattern closely resembles some patterns in US higher education, though how it will translate to Japan’s unique system remains to be seen.

Professor Kotaro Inoue is the Chief Financial Officer for the Institute of Science Tokyo, which officially began in late 2024 following the merger of two other leading national universities, Tokyo Institute of Technology and Tokyo Medical and Dental University. The university received UIRE accreditation in early 2026.

“We have already strengthened our fundraising framework under the direct supervision of the President and CEO Naoto Ohtake, inspired by discussions with Harvard Management Company and Yale University,” he says. “UIRE provides a strong reason for us to think about how to revise the endowment fund to allow for greater financial autonomy in the next 25 years, for example, through increasing industrial and social partnerships.”

But money alone doesn’t translate directly to “research excellence”. If it did, there’d be an unmistakable connection between a university’s net worth and its position in the rankings, rather than a loose correlation mostly towards the top, and it would be visible over time as institutional and regional wealth ebbs and flows. So while some of the UIRE funding is intended for research, a large reason for it existing at all is actually to incentivise internal reforms in the hope that they enhance research and its societal impacts.

From research to impact

In a piece for EMBO Reports, Professor Emeritus Noriko Osumi from the Department of Developmental Neuroscience at Tohoku University — the first UIRE recipient in 2024 — observed how Japanese researchers’ attitudes can differ from elsewhere. “Traditionally, researchers in Japanese academia have shown limited engagement with practical application of their work or its social impact,” she wrote.

“However, the UIRE initiative is expected to change this mindset…”.

If that change is to happen, it will likely require changes in governance as well as funding. “The most important thing behind UIRE is the view that Japanese universities are in need of governance reform. To make the required changes, we need some money. So I think that UIRE is the opportunity the sector needs to fund reforms, as opposed to typical HES funding, which aims purely at research,” Professor Osumi, who is also Executive Director for the Japan Society for the Promotion of Science (JSPS), tells QS Insights.

“For example, we need to improve the way we support researchers by flattening traditional hierarchies to increase autonomy and by increasing our university research administrators (URA). These are things that Tohoku University had already started working on, but UIRE compels us to develop them further.”

Reform from within

Administrative reform is also high on the agenda — and has been for a while — at the third and most recent UIRE recipient, Kyoto University. Director of Global Communications David Hajime Kornhauser has been involved with several aspects of their reforms, especially its URA programme.

“Until 15 years ago, every academic centre had its own administrative section. There was a lot of discrepancy throughout the organisation. So they brought everything together into these big administrative offices, leaving only a skeleton crew of admin staff in each section,” he says.

“An unintended consequence was that researchers became more distant from administrators. Our attempt to reform that relationship, including with the URAs, predates UIRE, but the accreditation gives the university a much larger institutional framework within which to pursue it, and of course the necessary resources.”

This is a pattern across the first three UIRE recipients: the universities were already making changes that aligned with the accreditation's requirements. This is unlikely a coincidence, and suggests UIRE could be seen as an accelerator of sorts. Rather than imposing reforms, MEXT appears to be providing resources to scale and coordinate efforts that are already showing promise.

Institute of Science Tokyo clearly illustrates this. Given their recent reboot, strategic transformations and university-wide reorganisations were already taking place.

“UIRE rewards breaking away from existing frameworks, and our merger demonstrated our drive for that. But we are also undergoing a full revitalisation of our research organisation with what we call the Visionary Initiatives,” says Professor Inoue.

“The idea is for research to be focused towards vision-driven goals set in key areas such as the environment or society. Our key goal indicators will be related to social impact, so we are preparing impact reports inspired by the Research Excellence Framework report in the UK.”

A route back to global relevance

Internationalisation is another key area of UIRE — it’s in the name — and Tohoku University was already a few steps ahead. “We started programmes on internationalisation several years ago, but we still need to become more international in the way we recruit researchers and other staff,” says Professor Osumi.

“Tohoku University is famous within Japan, but it is not so well known internationally. Following UIRE accreditation, many researchers abroad, as well as international students, are paying more attention to Tohoku. This is important not just for increasing diversity, but there is data that papers based on international collaborations gained more citations compared to those authored solely by researchers based in Japan.”

That comes full circle to the origins of UIRE and the pressures behind it: Japan’s position on the global higher education stage. Japanese universities have been noticeably slipping down the international rankings for decades, a trend reflecting the nature of Japan’s economy in the post-bubble era of the late 1980s and early 1990s and strongly connected with declining research impact, a key component of university ranking.

Although there are multiple reasons already stated for UIRE’s existence, it’s undeniable that the ranking situation has played a big part. This becomes apparent when looking at the areas of current ranking methodologies that overlap with MEXT’s goals.

“There is certainly some overlap in the outcomes UIRE expects and rankings bodies observe, for example, research impact, international talent, research funding and international collaboration. But I would not regard UIRE simply as a rankings exercise,” says Asli Colpan, Professor of Corporate Strategy at Kyoto University.

“Rankings are primarily comparative measurement systems, whereas UIRE is a long-term institutional transformation programme intended to change the conditions under which excellent research is produced. For that reason, success should not necessarily be judged by whether a university moves immediately upward in a particular ranking. Improvements in research environments, researcher development, international openness and institutional capacity may take considerably longer to become visible in ranking indicators.”

The 25 year test

While most attitudes towards UIRE from players in Japan’s academic sector have been positive, there is a potential — though avoidable — downside. Accreditations so far have gone to some of the country's best performing and best equipped universities, with more likely to follow. So what will become of those lower down the ranks that arguably have more to gain from inclusion in the programme? Will there be increasing division between universities, or will the blueprint for Japan’s 21st-century research university propagate through the sector, raising the whole sector with it?

That may be the ultimate test of Japan’s bold experiment.

MEET THE AUTHOR


Rohan is a STEAM communicator based in Tokyo. He works with universities to improve the depth, breadth, quality, and quantity of their public-facing communications output. His main focus is on writing, producing short films, and lecturing postgraduates about research communication. Typical of STEAM communicators, he’s worked in a broad range of roles including as a TV producer, animator, researcher, editor, museum curator, public speaker, and journalist. Alongside these things, he’s also taught continuously since the mid 2000’s, running workshops for adults, children, and under-represented groups on film production, animation, and more.