An Incorporated Administrative Agency (独立行政法人, Dokuritsu gyōsei hōjin, Dokugyo in abbreviation), or Independent Administrative Institution, is a type of legal corporation formulated by the Government of Japan under the Act on General Rules for Incorporated Administrative Agencies (Act no. 103 of 1999, revised in 2014).[1] The independent agencies are not under the National Government Organization Act that provides for the ministries and agencies of Japan.
Originally proposed by the Administrative Reform Council, the independent agencies are created based on the concept of separating the ministries and agencies of the government into planning functions and operation functions. Planning functions remain within government-based ministries and agencies while operating functions are transferred to the independent agencies.
Incorporated Administrative Agencies utilize management methods of private-sector corporations and are given considerable autonomy in their operations and how to use their given budgets. In April 2001, the government first designated 59 bodies as the independent agencies, among which were many research institutions and some museums.