Craftsmanship is at the core of Japan's manufacturing industries, and taking the initiative in nanotechnology, a field that will drive next-generation craftsmanship, is certain to have a major influence on Japan's future.

In its Science and Technology Basic Plan 2001-2005, the Japanese government has designated nanotechnology-along with life sciences, information and telecommunications, and environmental science-as one of its four priority areas. It allocated ¥55.3 billion (approx. $503 million) for nanotechnology-related initiatives in 2002, a whopping 39% increase over 2001.

Japan is said to have long been at the forefront of nanotechnology R&D, particularly for materials and precision manufacturing technology. With nanotechnology now going beyond basic research to enter the actual industrial application phase, however, Japan's position among the frontrunners no longer looks so certain.

To address this situation and support Japan's world-leading technologies, the Ministry of Economy, Trade and Industry decided to launch thirty public/private sector collaboration projects from 2003. Requesting a budget allocation of ¥150 billion (approx. $1.36 billion), the Ministry is moving quickly to enhance Japan's competitiveness by rethinking the government's traditional policy of supporting only basic research, and channeling funds to the development of application technology.