This paper examines current changes in higher education governance in Japan, linking these with the national strategy in the light of globalisation forces. First, the author describes Japan's social economy that has heavily relied on manufacturing industry and the strong desire for internationalisation. Second, activities in the internationalisation of higher education in Japan are discussed from social and economic perspectives. Third, the current higher education reform aimed at revitalising a society facing "Identity Crisis" under the pressure of globalisation is analysed. Finally, the inconsistency of micro and macro demand, and the lack of trust in higher education are discussed as issues to be overcome for gaining global competitiveness.