Since the number of Japanese students studying in the United States peaked 10 years ago at more than 47,000, slow growth has given way to decline and there is concern that the growing number of other Asian students overseas could hurt Japan's future.
"In macro terms, there is no question that Japan's competitive advantage and edge is being eroded" by this trend, said David H. Satterwhite, executive director of the Fulbright Commission Japan.
The commission has funded educational exchanges for Japanese students since 1952.
While the trend has longer term implications within 15 to 30 years, it is a "trend to be concerned about nonetheless," he said.