No. 115: Kyoto University Generates 1.5 Billion Yen in Annual Intellectual Property Revenue—The Potential of IP Strategy for University Management—
It is not uncommon for a lack of research funding to be discussed as a major challenge for universities.
Since incorporation, base funding has been in a difficult situation, and the acceptance rate for Grants-in-Aid for Scientific Research (Kakenhi) is by no means high.
Therefore, for many universities, securing external funds such as joint research and donations has become a critical management issue.
However, what is often surprisingly overlooked in that discussion is intellectual property revenue.
In fact, according to the 'University Factbook 2026' from the Ministry of Economy, Trade and Industry and others, Kyoto University's revenue from intellectual property rights and the like in fiscal year 2024 was approximately 1.52 billion yen, ranking first in the country. The University of Tokyo was approximately 940 million yen, and Osaka University was approximately 720 million yen.
The amount of 1.5 billion yen is by no means small.
It is an amount that could support over 100 internal research grant projects for young researchers.
If such revenue can be generated continuously, it would contribute significantly to strengthening the university's research capabilities.
IP revenue is a valuable financial resource that universities can utilize themselves
Universities have various external funding sources.
However, many of them have restrictions on their use.
Kakenhi requires execution in accordance with the research plan.
Joint research funds must also follow the terms of the contract.
On the other hand, IP revenue is a financial resource that universities can utilize with a relatively high degree of freedom.
For example:
Research support for young researchers
Expansion of internal competitive research grants
Updating research equipment
Startup support
Strengthening industry-academia collaboration systems
securing technology transfer personnel
and can be used for other purposes.
In other words, intellectual property revenue is not just profit; it can be a source of funding for universities to enhance their research capabilities.
Kyoto University has a 'mechanism to turn patents into revenue'
Many patents are filed at universities every year.
However, filing alone does not generate revenue.
It only leads to revenue when it is licensed to companies and actually utilized.
Kyoto University is not only ranked first in the nation for intellectual property rights revenue, but also first in the nation for patent implementation revenue. In fiscal year 2024, patent implementation revenue was approximately 1.38 billion yen. (Incidentally, it also ranks first in the nation for patent implementation revenue per researcher.)
This is not just about holding a large number of patents.
It shows that the mechanism for bridging research results to companies and connecting them to social implementation is functioning.
Universities are entering an era of competing on 'utilization' rather than the number of patents
In university intellectual property activities, the number of patent applications and holdings sometimes attracts attention.
However, what is truly important is
whether those patents are being used in society
.
It costs money just to obtain a patent.
It also costs money to maintain them.
Holding a large number of patents that do not generate revenue can sometimes be a burden on university management.
That is precisely why
which patents to file
Which patents to maintain
Which companies to license to
These intellectual property strategies are becoming increasingly important.
A new option to supplement research funding shortages
Of course, not every university can generate the same scale of IP revenue as Kyoto University.
There are also differences in research fields.
Strengths in medical and engineering fields also have an impact.
Even so,
"Research funding is insufficient"
"Operating expense grants are decreasing"
Simply lamenting these facts will not change the situation.
Developing a system to implement research results produced by universities into society and returning the proceeds to the university will become increasingly important in the future.
Conclusion
A university's IP strategy is not merely a revenue-generating business.
It is an activity to deliver research results to society and a mechanism to reinvest the income obtained as a result back into research.
Kyoto University's annual IP revenue of over 1.5 billion yen demonstrates this potential.
If each university can further strengthen its IP strategy and reinvest that income into supporting young researchers and challenging research, could it not lead to an improvement in Japan's research capabilities?
Gaikibu Shikin Japan
Gaikibu Shikin Japan provides support for creating grant applications to secure external funding. If you are interested, please feel free to contact us at the address below.