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Some measures taken by Japanese small and medium enterprises in the recent two decades to promote research and development activities and suggestions for Vietnam

The article briefly analyzed some key challenges for research and development (R&D) of Japanese small and medium enterprises (SMEs)2 in recent two decades, including the funding and human resource development issues. Then, some solutions were presented in the paper to remedy obstacles and promote R&D activities of Japanese SMEs. Finally, based on those lessons learnt, some recommendations were made to promote R&D of SMEs in Vietnam. | JSTPM Vol 5, No 2, 2016 37 SOME MEASURES TAKEN BY JAPANESE SMALL AND MEDIUM ENTERPRISES IN THE RECENT TWO DECADES TO PROMOTE RESEARCH AND DEVELOPMENT ACTIVITIES AND SUGGESTIONS FOR VIETNAM M.Sc. Vu Tuan Anh1 Science and Technology Department, Vietnam National University, Hanoi M.Sc. Tran Xuan Dich National Agency for Technological Entrepreneurship and Commercialization Development Abstract: The article briefly analyzed some key challenges for research and development (R&D) of Japanese small and medium enterprises (SMEs)2 in recent two decades, including the funding and human resource development issues. Then, some solutions were presented in the paper to remedy obstacles and promote R&D activities of Japanese SMEs. Finally, based on those lessons learnt, some recommendations were made to promote R&D of SMEs in Vietnam. Keywords: Japanese SMEs; R&D; Challenges; Solutions. Code: 16052301 1. Introduction SMEs play a very important role and position in the Japanese economy. According to the Japan Small and Medium Enterprise Agency (2014), Japanese SMEs play a key role in supporting for local economic development, solving social problems and creating employment. Quantitatively, SMEs not only accounted for nearly 99.7% of total number of businesses in Japan and created about 70% of jobs in business sector, but also was the major contributor to the GDP of the country. Only the manufacturing SMEs shared more than 53% of Japan's GDP (Japan Small and Medium Enterprise Agency, 2013). Blair (2010) assessed that SME was 1 2 The author’s contact is at vtanh@vnu.edu.vn, tranxuandich74@yahoo.com Presently, the concept of Japanese SMEs is defined according to 1999 Basic Law on SMEs, using 2 criteria as starting capital (VKD) and number of employees (SLD) of the enterprise. SME’s specific criteria depending on specific industry sector, namely: (i) for SMEs in manufacturing sector, VKD ≤ 300 million Japanese Yen (JPY) and number of Labor ≤ 300; (ii) for SMEs in wholesale sector,