Japan's ability to conduct independent research and development became a decisive factor in boosting the nation's competitiveness.
Japan spent US$39.1 billion on government and private research and development in 1987, equivalent to 2.9 percent of its national income (the highest ratio in the world).
Although the United States spent around US$108.2 billion on research and development in 1987, only 2.6 percent of its income was devoted to that purpose, ranking it third behind Japan and West Germany.
Most research and development is private, although government support to universities and laboratories aid industry greatly.
Research emphases in the 1980s were in alternative energy, information processing, life sciences, and modern industrial materials and supplies.