Indirect expense (間接経費) and the 30% rule

Japanese competitive research funding adds indirect expense (間接経費) at 30% of direct costs, paid to the host institution rather than to the researcher. It is a standardised rate applied across competitive funds, not something each institution negotiates.

Compare the three systems and the design becomes clear. Horizon Europe folds a flat 25% into the budget with no justification required. The United States negotiates a rate per organisation, producing figures from single digits to well over 50%. Japan sets one number for everyone. Japan's is the simplest and, for a well-resourced institution, often the most generous.

It sits ON TOP of the direct amount rather than inside it. A project with ¥10,000,000 of direct costs carries ¥3,000,000 of indirect expense and is funded at ¥13,000,000 in total.

Published ceilings are inconsistent about which figure they quote. Some state 直接経費 (direct costs) and some state 総額, the total including indirect. A 30% difference is more than enough to make a Japanese call look either better or worse than a European one when it is neither, so check which number the document is giving before comparing.

The money goes to the institution and is spent at its discretion on the research environment. A researcher choosing between hosts should know that the 30% follows them, which gives them more standing in a negotiation with a prospective institution than most realise.