What Is a Think Tank? Job Responsibilities, Company Examples, and Average Salaries Explained

Among those interested in the consulting industry, many may have also considered “think tanks.” Some may be unsure about what think tanks do and how they differ from consultants.

A think tank is an organization that conducts research and studies on social and economic issues, publishes findings, and proposes solutions.

The topics covered span a wide range, including:

• Urban planning
• Infrastructure
• Education and welfare
• Environmental issues

Think tanks have been rapidly expanding in recent years and are a popular career choice among those interested in the consulting industry. This article provides a comprehensive explanation of think tank job responsibilities, the skills needed for career development, and the differences from consulting.

What Is a Think Tank? Meaning and Types Explained

A “think tank” is a research institution that investigates and studies all kinds of issues—social, economic, scientific, and technological—analyzes them, and proposes solutions.

In English, it is written as “think tank.” “Think” means “thought” and “tank” means “reservoir” or “storage container.” Loosely translated, it means a “brain trust” or “comprehensive research institute.”

It is said to be called a think tank because it is an institution where various experts (= thoughts) gather.

Think tanks are classified into two types: private-sector think tanks and government-affiliated think tanks. Let’s understand what each does.

Private-Sector Think Tanks

The main activities of private-sector think tanks include corporate strategy planning and strategy implementation support.

A key characteristic is that they are often subsidiaries of large companies such as financial institutions and trading companies. For example, Nomura Research Institute and Mizuho Information & Research Institute fall into this category.

Government-Affiliated Think Tanks

Government-affiliated think tanks are research institutions established for the purpose of economic analysis and policy planning and recommendation.

Since their research results and recommendations often have a significant impact on public administration, they tend to collaborate with public institutions for joint research. Unlike private-sector think tanks, they are funded by public money, and their staff are national civil servants.

List of Think Tank Companies! Comparing Features and Average Salaries

Here are some representative companies from both private-sector and government-affiliated think tanks.

Average salaries for each company are also included for comparison.

6 Private-Sector Think Tanks

Let’s compare the leading private-sector think tanks in Japan. The main companies are summarized in the table below.

Company Name	Features	Average Annual Salary
Nomura Research Institute (NRI)	Top-tier profitability through strengthening core domains and expanding global operations	¥10.18M
Mitsubishi Research Institute (MRI)	Broad client base across government agencies, finance, and general industry	¥9.09M
Mitsubishi UFJ Research and Consulting	Problem-solving capabilities leveraging strengths in research, consulting, and IT/digital	¥8.72M
Japan Research Institute	Rooted in a financial group, with a focus on IT and finance	¥7.07M
Mizuho Research & Technologies	Formed by integrating three Mizuho affiliates, maximizing strengths such as expertise and insight	¥7.27M
Daiwa Institute of Research	Founded in 1989, with long-standing expertise and knowledge in research, systems, and consulting	¥7.19M

All are rooted in financial institutions and are think tanks with strengths in finance and economics.

Private-sector think tanks also include “Hakuhodo Institute of Life and Living,” which is rooted in an advertising agency and specializes in consumer trends, and “Fujitsu Research Institute,” rooted in a major integrated electronics manufacturer.

5 Government-Affiliated Think Tanks

The five representative government-affiliated think tanks are as follows.

Organization Name	Supervising Ministry
Economic and Social Research Institute	Cabinet Office
National Institute of Advanced Industrial Science and Technology (AIST)	Ministry of Economy, Trade and Industry
National Institute for Defense Studies	Ministry of Defense
Research Institute of Economy, Trade and Industry (RIETI)	Ministry of Economy, Trade and Industry
Japan Institute of International Affairs (JIIA)	Cabinet Office

Average salaries for government-affiliated think tank organizations are not publicly disclosed.

However, since staff are national civil servants, estimates can be made based on average monthly salaries and bonus amounts for national civil servants.

The results of the “Reiwa 7 National Civil Servant Salary Survey” and the average bonus payments for June and December of Reiwa 6 are as follows:

• Average monthly salary: ¥424,979
• Summer bonus: ¥706,700
• Winter bonus: ¥702,200

Based on these figures, the estimated average annual salary at government-affiliated think tanks is approximately ¥6.5M.

4 Differences Between Think Tanks and Consulting Firms

Think tanks conduct project research alongside their main activities such as economic analysis and strategy planning. Consulting firms, on the other hand, differ in that they provide clients not only with strategy planning but also with implementation support.

However, as more think tanks are making consulting services their primary business, there is no major difference in basic operations. That said, the following four differences can be identified between think tanks and consulting firms.

• Business model and client companies
• Fields and domains of consulting
• Required skills
• Required educational background

Each of these will be explained in detail below.

1. Business Model and Client Companies

The business model and client companies represent a major difference between think tanks and consulting firms.

Think tanks primarily serve government agencies as clients and participate in competitive bidding for publicly announced projects. The company that submits the lowest bid wins the contract. Compensation is paid as a performance-based fee at a set rate for each project.

In contrast, consulting firms primarily serve private-sector companies, with contract periods and compensation determined through negotiations. Consultants with appropriate skills are dispatched to meet client needs, and the firm receives compensation in return.

The main differences between think tanks and consulting firms are summarized below.

	Think Tank	Consulting Firm
Product	Information	People
Business Model	Per-project fee	Staffing fee
Main Clients	Government agencies	Private companies

Another difference is that think tanks treat information as their product, while consulting firms treat human resources as theirs.

2. Fields and Domains of Consulting

Think tanks and consulting firms also differ in the fields and domains in which they provide consulting services.

Think tank projects are mainly requested by personnel responsible for specific fields or domains. As a result, the consulting fields and domains tend to be predetermined. Since the focus is primarily on public government policy, activities are often non-profit, and research and survey results are published as reports.

Consulting firms handle not only specialized consulting such as management strategy and M&A strategy, but also comprehensive consulting. They frequently engage in discussions with clients to develop strategies, and since reports contain confidential information, they are generally not made public.

3. Required Skills

Think tanks and consulting firms also differ in the skills they require.

Think tanks place emphasis on the following skills:

• Perseverance to tackle long-term projects
• Knowledge and experience in specialized domains
• Communication skills
• Logical thinking ability

In the case of private-sector think tanks, alignment with the company’s culture and characteristics is also an important consideration.

At think tanks, knowledge and experience in specialized domains are essential, and one must be familiar with the business content and trends for each client.

Since much of the work involves progressing projects collaboratively with clients, communication skills are also necessary. Logical thinking ability is indispensable for think tanks’ traditional work of research and investigation.

Consulting firms deal mostly with private-sector projects, so work is generally carried out by small teams. In addition to logical thinking and presentation skills, the ability to build good relationships with clients is also important.

4. Required Educational Background

While neither think tanks nor consulting firms explicitly state that they use educational filters, it is a fact that a large number of hires come from top universities.

Think tanks in particular tend to have a higher proportion of graduate school alumni. In some companies, a graduate degree or higher may be listed as a requirement for application. This is thought to be because those who attended graduate school tend to have more specialized knowledge and stronger skills in writing papers and reports.

While consulting firms do hire undergraduate graduates, the majority still tend to come from prestigious national universities such as the University of Tokyo and Kyoto University, or private universities such as Waseda and Keio.

However, since consulting has a meritocratic culture, the chances of being hired increase based on what you studied at university and what qualifications you hold. For example, if applying for an IT consultant position, having majored in computer science or information technology is advantageous.

Main Job Responsibilities and Roles at Think Tanks

While think tanks operate in a similar domain to consulting firms, the scope of work is wide-ranging. Think tank responsibilities can be broadly classified into the following three categories:

• Research and study work
• Management strategy
• Operations and systems

The details of each area of work are explained in the following sections.

Research and Study Work

Research and study work currently accounts for a smaller proportion of think tank activities overall, but it is work unique to think tanks. Researchers with expertise in various fields create and publish survey reports based on client requests.

In government-affiliated think tanks, the primary work involves conducting various surveys and analyses to inform social development and policy decisions, and then making policy recommendations. Since these recommendations are often reflected in actual policy, government-affiliated think tanks can be considered important institutions with considerable influence.

Management Strategy

Private-sector think tanks conduct management strategy support and research and analysis to inform strategic decision-making. The specific work involves formulating management strategies and providing advice based on research gathered from consumers or clients about actual products and services.

When it comes to management strategy, there is no significant difference in job content between think tanks and consulting firms, which operate in similar domains. As with consulting firms, projects may be tackled by small teams, and for large-scale projects, teams of dozens of people may be assembled.

Operations and Systems

Many think tanks have parent companies that are major banks or large securities firms, giving them strengths in financial IT solutions. As a result, IT-focused think tanks are characterized by playing the roles of application engineers and systems design engineers.

For example, they may conduct application system design or develop the foundational architecture of an entire system optimized for a particular business operation.

Job Responsibilities Also Vary by Position

A characteristic of think tanks is that job responsibilities change according to one’s position. While the titles vary by organization, the typical order of promotion is as follows:

• Consultant or Researcher (Associate Researcher)
• Senior Consultant (Researcher)
• Senior Manager or Manager (Deputy Chief Researcher)
• Principal or Director (Chief Researcher)

In the first one to two years, employees work as Consultants or Researchers, with their main duties being support tasks such as information gathering and document preparation.

Many are promoted to Senior Consultant around years three to four, at which point they take on a larger share of the actual work.

Upon reaching the Principal level, which is a managerial position, the main duties shift to overseeing projects, receiving project assignments, and making recommendations to clients—making it easier to maintain motivation.

Working Style at Think Tanks

The main work at think tanks—consulting—is conducted on a project-by-project basis in response to client requests.

Since each professional applies their unique expertise to serve a variety of clients, the working style varies depending on the project. Each person is a specialist handling their own area of responsibility, so tasks cannot be delegated to others. On the flip side, you can progress work at your own pace, making it an ideal environment for those with strong schedule management skills.

Whether the project involves working on-site at the client’s office or remotely will affect the working style. For on-site assignments, it is generally expected to match the client’s working hours.

Project Managers May Experience Extended Working Hours

Project managers, by virtue of their oversight responsibilities, may find their working hours extending. The increased number of internal meetings and subordinate reviews tends to consume more time for preparation and confirmation tasks.

Project managers who lean toward micromanagement also tend to work longer hours. Micromanagement refers to a management style in which superiors or leaders closely monitor subordinates’ actions and excessively intervene.

Characteristics include frequently requesting progress updates or giving detailed instructions on how to make phone calls or word emails.

3 Attractions of Working at a Think Tank

Think tanks offer the following appealing aspects:

• Opportunities to gain diverse experience
• Attractive compensation and high earning potential
• Strong career prospects going forward

If you find these aspects attractive, you may be able to thrive at a think tank—which demands long-term commitment and specialization—without a mismatch.

1. Opportunities to Gain Diverse Experience

Think tanks that primarily serve government agencies allow you to work on government projects that are rarely accessible in ordinary companies. The work—such as research and investigation into social challenges—is highly demanding, making it an environment where you can continuously grow.

Think tanks also attract specialists with knowledge across diverse fields, and the research they conduct is unique to think tanks. By competing and learning from fellow experts while meeting client needs, you can gain a wide range of experience.

2. Attractive Compensation and High Earning Potential

Think tanks are known for offering high salaries despite being Japanese companies, with average annual salaries ranging from ¥8M to ¥12M.

Compared to the national average of ¥4.78M from the “Reiwa 6 Private Sector Salary Statistics Survey” published by the National Tax Agency, think tanks offer attractive compensation and high earning potential. There is even a possibility of exceeding ¥10M in annual salary as early as your 30s, meaning high earnings can be expected from a young age.

Compensation consists of a fixed base salary and performance-based bonuses that vary according to individual performance. In fact, many people have successfully increased their income through a career change to a think tank.

The main reasons why salaries at think tanks are high are as follows:

• Consulting work related to risk management and compliance
• Consulting services related to internal auditing, misconduct, and scandal response
• Research on employment, labor, and human resource development for government agencies as primary clients

3. Strong Career Prospects Going Forward

When making a career change from a think tank, the most common paths are to a business company or to another think tank or consulting firm. For example, transitions to foreign strategy firms or comprehensive consulting firms, as well as to executive or executive-candidate roles at business companies, are all possibilities.

Examples of business companies as career destinations include:

• Venture companies
• Foreign-affiliated business companies
• Major Japanese business companies

Those with research experience at government-affiliated think tanks may also transition to other think tanks or research institutions. Those from economist divisions sometimes move into analyst roles at financial institutions, making future career paths promising.

When you become a think tank manager, be careful not to engage in excessive micromanagement.

Project Case Studies from Think Tanks

Think tanks provide consulting services to many companies. The following are examples of initiatives actually carried out by think tanks.

Mitsubishi Research Institute Project Case Study

The following is a project case study from Mitsubishi Research Institute. The institute analyzed and evaluated the state of technological development and future outlook, focusing on the following four technology themes:

• Genomic medicine that simultaneously investigates and treats multiple genes
• Human augmentation (human enhancement) that challenges the limits of human capability
• Artificial general intelligence (AGI) with human-like sensibility and original thinking
• Quantum computers as next-generation computing platforms aimed at dramatically faster processing

In the field of genomic medicine, for example, efforts to build large-scale databases of cancer patients’ genetic information are drawing attention. However, there is also concern that advances in cancer treatment ahead of Alzheimer’s treatment could lead to an increase in dementia patients.

Reference: https://www.mri.co.jp/service/pjt_cases/tech-megatrends/index.html

Daiwa Institute of Research Project Case Study

Daiwa Institute of Research has been supporting the growth of ORIX Life Insurance Corporation, providing shared services and ongoing operational support. Around 2012, ORIX Life Insurance was experiencing an increase in the number of insurance contracts, and conventional business processing had reached its limits, making hardware changes necessary.

While the timing coincided with the end of hardware OS support, there were no spare human resources to allocate to the task. However, since a replacement was essential, ORIX Life Insurance requested maintenance services from Daiwa Institute of Research.

In 2014, Daiwa Institute of Research executed a corporate transformation (shared services) that consolidated core operations—which had been run from two locations—along with multiple indirect departments into a single location. Subsequently, in 2017, the two-zone operation was consolidated into a single zone, generating three major benefits:

• Effective utilization of resources
• Centralized management
• Improved usability

Reference: https://www.dir.co.jp/business/case/orixlife.html

Mitsubishi UFJ Research and Consulting Project Case Study

Mitsubishi UFJ Research and Consulting has been engaged in the space sector—a field that has seen remarkable growth in recent years. This project showcases the strengths of Mitsubishi UFJ Research and Consulting, which has knowledge and relationships spanning both the public and private sectors.

It was a researcher serving on a lunar exploration technology review committee who proposed private-sector initiatives focused on ESG and SDGs. As a result, a consultant from Mitsubishi UFJ Research and Consulting became involved in a joint project with JAXA.

With finance perspectives also incorporated, this can be considered a new model of consulting contribution in the context of launching new industries.

Reference: https://www.murc.jp/thinktankxconsulting/

Think Tank or Consulting Firm: Which Should You Choose for a Career Change?

When choosing between a think tank and a consulting firm, we recommend focusing on the following two key points:

• Choose based on what you want to do
• Choose based on your own aptitude

Each of these points is explained in detail below, so use them as a reference to determine which suits you better.

Choose Based on What You Want to Do

Since think tanks and consulting firms require different abilities, it is important to choose based on what you actually want to do.

Think tanks have a stronger research-oriented culture, so they tend to attract individuals who can persistently dedicate themselves to individual work and research. Many who have made the switch to a think tank have expressed satisfaction with being able to participate in a wide range of projects, from national-level assignments to local SME engagements.

However, since consulting firms primarily serve private-sector clients, communication skills—in addition to research ability—tend to be more heavily required.

It is important to choose based on your own preferences by considering whether you prefer working individually or as part of a team.

Choose Based on Your Own Aptitude

Think tanks require strong research skills and expertise for policy planning. Compared to consulting firms, investigations tend to be more detailed, which means they often involve long-term engagements. Therefore, think tanks are well-suited for those who can analyze from a long-term perspective and leverage their specialized knowledge.

Consulting firms require hypothesis-based strategy formulation, system conceptualization, and implementation support. In addition to research skills similar to those required by think tanks, logical thinking and decisive action for policy planning and operational improvement are also necessary.

Those who have broad theoretical knowledge, enjoy a coordination role, have strong physical stamina, or are capable of logical thinking may be well-suited for consulting.

It is important to assess which path you are better suited for and choose accordingly.

Conclusion

In this article, we have explained think tank job responsibilities and career development.

A think tank is a research institution that investigates and studies all kinds of issues—social, economic, scientific, and technological—analyzes them, and proposes solutions. They are divided into government-affiliated and private-sector types, each with different roles.

Government-affiliated think tanks primarily conduct economic analysis and policy planning and recommendations for government agencies. Private-sector think tanks support corporate strategy planning and strategy implementation.