This report provides comparisons of U.S. and Japanese science resources and some initial evidence that Japan is expanding the human and financial resources for science while improving the environment for basic research. The data cover science and technology trends in research and development from 1975 to 1994, as well as more recent changes in government and university research in Japan. It also covers research trends in private industries and the training of personnel within Japanese companies and American universities. The trends show that Japan leads the United States in the percent of gross domestic product invested in total and nondefense research and development as well as government investments in civilian research and development as a percentage of gross domestic product. Japan is particularly strong in technology and trade indicators and has a higher proportion of engineers in its labor force than the United States. Japan lags behind the United States in research and development expenditures in higher education, in competitive research funding in universities, and in its share of the world's scientific articles. The report concludes with the implications of these and other changes for the United States and international research community and the need for further research. Appendices contain data tables. (PVD)