This report aims to provide a comprehensive and practical analysis of Japan’s high-tech industry policies for Japanese companies going abroad and Japanese start-ups. As one of the leading countries in global technological innovation, Japan has accumulated technological achievements and a complete industrial ecosystem. Recently, the Japanese government has actively promoted the development of high-tech industries, covering many cutting-edge fields such as artificial intelligence, Internet of Things, 5G communications, semiconductors, and robots. By systematically sorting out the support policies at the national and hierarchical levels, it aims to help companies understand the latest trends in Japan’s high-end industrial technology industry, seize policy dividends, and find business opportunities in Japan’s wave of technological innovation.

Overview of Japan’s high-tech industrial policies

1.1 Main policy formulation background and objectives

The formulation of Japan’s high-tech industrial policy stems from the challenges it faces from its aging population and global competitive pressures. Since the collapse of the bubble in the 1990s, Japan’s economic growth has continued to be sluggish, the problem of population aging has intensified, and traditional industries have shrunk. At the same time, the rapid rise of China, South Korea and other Asian neighbors in the high-tech field, as well as the leading position of the United States in cutting-edge technologies such as artificial intelligence and quantum computing, have put tremendous pressure on Japan. In order to revitalize economic vitality and maintain global competition, the Japanese government has made the development of high-tech industries the core of its national strategy.

In this context, the main goal of Japan’s high-tech industrial policy is to create an innovation-driven and sustainable high-tech industrial ecosystem. The government is focusing on strengthening the innovation ecosystem and accelerating the transformation of basic research results into commercial applications by promoting industry-university-research cooperation. At the same time, we will promote the digital transformation of traditional industries and enhance overall industry competitiveness. Talent cultivation and attraction is also one of the key points of the policy. It not only focuses on cultivating local high-end talents, but also actively attracts top global talents. In addition, Japan also strives to promote regional innovation and support the development of local characteristic industries to achieve balanced development of the regional economy. On the international stage, Japanese policymakers strive to protect core technologies while actively participating in international cooperation to jointly respond to global challenges.

1.2 Policy evolution

The evolution of Japan’s high-tech industrial policy can be traced back to the enactment of the Science and Technology Basic Law in 1995, which caused Japan to begin to systematically formulate science and technology innovation policies. In 2001, the Japanese government established the Comprehensive Science and Technology Conference (currently the Comprehensive Science and Technology) Innovation Conference) to further strengthen inter-departmental science and technology policy coordination capabilities. In 2013, the “Three Arrows” policy proposed by Abenomics positioned technological innovation as one of the core driving forces of economic growth, highlighting the important position of high-tech industries in the national development strategy.

2016 is an important turning point for Japan’s high-tech industrial policy. This year, the Japanese government released the “Fifth Basic Science and Technology Plan” and proposed the concept of “Society 5.0” for the first time. This concept emphasizes the use of advanced technologies such as artificial intelligence and the Internet of Things to solve social problems and achieve the coordination and unity of economic development and social progress. In 2018, Japan further formulated the “Systems and Innovation Strategy”, which clarified key development areas such as artificial intelligence, quantum technology, and environmental energy, and pointed out the direction for the development of high-tech industries.

In 2020, the outbreak of the COVID-19 epidemic became a catalyst for Japan to accelerate its digital transformation. The government announced the establishment of the “Digitalization Department” to promote the digitalization process of the public sector and key enterprises. In 2021, Japan released the “Sixth Basic Plan for Science, Technology and Innovation”, which further refines the scientific and technological innovation roadmap for the next five years and provides policy guidance for the sustainable development of high-tech industries.

1.3 Policy specific measures

In order to achieve the development goals of high-tech industries, the Japanese government has adopted a series of specific policy measures. In terms of R&D investment, the government has promised to increase the proportion of R&D investment in GDP to more than 4.5% by 2025 to provide sufficient financial support for high-tech innovation. In terms of tax policy, Japan has implemented the “Open Innovation Tax System Promotion” to provide enterprises and universities with , provide tax credits of up to 25% for R&D investments in cooperation with research institutions, and encourage industry-university-research cooperation.

In terms of talent training, the Japanese government has launched the “Artificial Intelligence Strategy 2019” and plans to train 50 artificial intelligence talents in the next few years. At the same time, by relaxing the visa policy for highly skilled talents, we will attract the world’s top scientific and technological talents to work and start businesses in Japan. In order to promote innovation and entrepreneurship, Japan has established a number of innovation funds, such as the US$1 billion “Future Investment Fund” to support the development of innovative enterprises in fields such as AI and robotics.

In terms of regional innovation, Japan’s “local creation” policy supports various regions in developing high-tech industries based on their own characteristics. For example, Fukuoka City is designated as a “National Strategic Special Zone” and uses special policies in terms of supervision and taxation to attract more people. In addition, Japan also actively promotes international cooperation, such as conducting cooperative research with the United States in fields such as quantum computing and 6G communications, while strengthening Protect key technologies and safeguard national security and industrial competition.

Key high-tech industrial fields and related policies

The Japanese government attaches great importance to the development of high-tech industries and has formulated a series of policies to support innovation and growth in different fields. The following are Japan’s key high-tech industry areas and related policy details:

2.1 Artificial Intelligence (AI)

Artificial intelligence is one of the core areas of Japan’s scientific and technological innovation strategy. The Japanese government released the “AI Strategy 2019” in 2019, aiming to make Japan a global leader in AI innovation. At present, Japan has made significant progress in research and application in the field of AI, especially in aspects such as robotics, natural language processing and computer vision. However, compared with the United States and China, Japan still has a gap in the number of AI start-ups and large-scale commercial applications. In order to accelerate the development of AI, the Japanese government established the “AI Research and Development Network” to connect AI research institutions across the country and promote knowledge sharing and collaboration. At the same time, the government is also promoting the “AI Hospital” project to apply AI technology to the medical and health field. In terms of financial support, the government provides tax credits of up to 25% for companies investing in AI technology research and development. Through the “Strategic Innovation Promotion Project” (SIP), large-scale funds are invested in AI-related research projects. In terms of talent training, Japan has formulated an ambitious plan with the goal of cultivating 500,000 AI professionals by 2025 and setting up AI-related courses in 100 universities across the country to provide sufficient talent reserves for industrial development.

2.2 Internet of Things (IoT)

IoT technology is regarded as a key infrastructure for realizing “Society 5.0”, and the Japanese government actively promotes the application of IoT in various industries. Currently, Japan is outstanding in industrial IoT, especially in the application of smart factories in the manufacturing industry. However, Japanese companies face challenges from international competitors in terms of market share of consumer IoT devices. In order to promote the development of IoT, Japan’s Ministry of Economy, Trade and Industry has launched the “Connected Industries” initiative, which aims to connect various industries through IoT technology and improve overall production efficiency. In terms of policy support, for small and medium-sized enterprises that use IoT technology to upgrade equipment, the government provides a tax credit of 30% of the equipment investment cost, which greatly reduces the technology upgrade costs of enterprises. In terms of R&D funds, through the “IoT Promotion Laboratory” project, the government provides financial and technical support for IoT innovation projects to promote industrial innovation. In the field of talent training, Japan has launched the “IoT Talent Cultivation Plan” with the goal of cultivating 100,000 IoT professionals and encouraging internal IoT skills training within enterprises to provide a continuous supply of talent for industrial development.

2.3 5G and 6G communication technology

Japan regards 5G and future 6G technologies as the key to maintaining international competitiveness and actively promotes the research, development and commercialization of related technologies. In terms of industry status, Japan has officially commercialized 5G networks in 2020, and major operators such as NTT DoCoMo, KDDI and SoftBank are actively expanding 5G coverage. At the same time, Japan has begun to proactively deploy 6G technology research and development. In order to support this strategic industry, Japan’s Ministry of Internal Affairs and Communications has released the “Beyond 5G Promotion Strategy”, aiming to lay the foundation for the development of 6G technology. The government has also set an ambitious goal to cover 98% of Japan’s population with 5G networks by 2025. In terms of financial incentives, the government provides tax credits of up to 15% for telecom operators investing in 5G infrastructure construction to accelerate network construction. In terms of R&D financial support, the government has established the “Beyond 5G Research and Development Promotion Project” to provide large subsidies for 6G-related technology research. In the field of talent training, Japan promotes industry-university cooperation and establishes 5G and 6G technology research centers in many universities to cultivate the next generation of communication technology talents and provide intellectual support for the long-term development of the industry.

2.4 Semiconductor industry

Given the strategic importance of semiconductors in the modern economy, Japan is working hard to revitalize its semiconductor industry. Although Japan remains a leader in some special semiconductor materials and equipment, it has lagged behind other countries in advanced process chip manufacturing. In order to reverse this situation, the Japanese government has formulated the “Semiconductor Digital Industry Strategy” and plans to invest approximately 520 billion yen in the next three years to support the development of the semiconductor industry. In terms of policy support, the government provides equipment investment tax credits of up to 50% for companies building advanced semiconductor manufacturing plants in Japan to attract domestic and foreign companies to invest in Japan. In terms of R&D financial support, through the “Post-Moore Semiconductor Technology Development Project”, the government provides large-scale financial support for the research and development of next-generation semiconductor technology to promote technological innovation. In terms of talent training, Japan promotes industry-university cooperation, establishes semiconductor engineering majors in many universities, and encourages companies to provide internship opportunities to cultivate semiconductor talents with practical experience and provide human resources guarantee for industrial revitalization.

2.5 Robotics

Japan has long been a world leader in robotics, and the government continues to strongly support the development of this field. At present, Japan has strong performance in the fields of industrial robots and service robots, especially in the manufacturing and medical care fields. In order to further consolidate its advantages, Japan has launched a “New Robot Strategy”, aiming to build Japan into the world’s leading “robotics innovation center.” In terms of policy support, for small and medium-sized enterprises that use robot technology to improve production efficiency, the government provides special depreciation or tax credits for equipment investment costs to lower the cost threshold for enterprises to adopt new technologies. In terms of R&D financial support, through the “Strategic Innovation and Creation Plan” (SIP), the government provides a large amount of funds for the research and development of next-generation robot technology to promote breakthroughs in cutting-edge technologies. In the field of talent training, Japan has adopted a comprehensive strategy to promote robot education in primary and secondary schools to cultivate students’ interests and basic knowledge. At the same time, it has established interdisciplinary robotics engineering majors in universities to cultivate high-level compound talents and provide a foundation for the robot industry. Continuous innovation provides talent protection.

Regional high-tech industry support policies

3.1 Tokyo

As the capital and economic center of Japan, Tokyo has a unique high-tech industrial ecosystem. The area is characterized by information technology, artificial intelligence and financial technology, attracting a large number of domestic and foreign technology companies and entrepreneurs. The Tokyo Metropolitan Government has launched the “Tokyo Innovation Strategy” to consolidate its position as a global innovation center. The strategy includes financial support for high-tech start-ups with start-up grants of up to 100 million yen. In addition, Tokyo has also established a number of professional industrial parks, such as the Tokyo Minato Innovation Center in Minato Ward, which provides rent subsidies and business consulting services to settled companies.

In order to promote industry-university-research cooperation, the Tokyo Metropolitan Government actively promotes cooperation projects between universities, research institutions and enterprises. For example, the “University of Tokyo Entrepreneurship Incubator” established in cooperation with the University of Tokyo provides space, funds and professional guidance for high-tech entrepreneurial projects. At the same time, the Tokyo Metropolitan Government also organizes regular industry-academia matchmaking meetings to build a cooperation platform for enterprises and research institutions to accelerate technology transformation and innovation. Together, these measures build Tokyo’s unique innovation ecosystem, which continues to attract top talents and companies from around the world.

3.2 Osaka Prefecture

As the economic center of the Kansai region, Osaka Prefecture has strong capabilities in the fields of life sciences, new materials and intelligent manufacturing. The Osaka Prefectural Government has formulated the “Osaka Innovation Ecosystem Construction Plan” to create a world-class innovation hub. The plan includes the establishment of the “Osaka Innovation Fund” to provide low-interest loans of up to 50 million yen to high-tech companies. Osaka Prefecture has also focused on the development of a number of characteristic industrial parks, such as Saito Life Science Park in Ibaraki City, which provides tax incentives and sharing of R&D facilities for biopharmaceutical companies.

In terms of industry-university-research cooperation, the Osaka Prefectural Government actively promotes the construction of the “Osaka University-Industrial Innovation Research Institute”, which is committed to promoting the transformation of university research results into industrial applications. In addition, Osaka Prefecture also regularly holds the “Kansai Innovation Summit” to bring together experts in industry, academic and research fields to promote cross-field exchanges and cooperation. Through these measures, Osaka Prefecture is gradually building a diversified and efficient innovation ecosystem to provide strong support for the development of high-tech industries.

3.3 Kyoto Prefecture

Kyoto Prefecture is known for its profound cultural heritage and tradition of innovation, with a particular focus on environmental protection technology, precision instruments and advanced manufacturing in the high-tech field. The Kyoto Prefectural Government has launched the “Kyoto Innovation and Entrepreneurship Ecosystem Construction Plan”, which aims to combine traditional industries with cutting-edge technology. The plan includes the establishment of the “Kyoto Future Creation Fund” to provide interest-free loans of up to 30 million yen to high-tech start-ups. Kyoto Prefecture has also focused on building the Kyoto Research Park to provide land use concessions and professional incubation services for settled companies.

Kyoto Prefecture’s industry-university-research cooperation model is quite distinctive. For example, the “Kyoto University Innovation Park” established in cooperation with Kyoto University provides full support for high-tech projects from laboratory to market. In addition, the Kyoto Prefectural Government also promotes the establishment of the “Kyoto Industry-Academic-Public Alliance” and regularly organizes exchange activities among industry, academia and government departments to promote cross-border cooperation. This unique innovation ecosystem effectively combines Kyoto’s traditional wisdom with modern technology, promoting the vigorous development of high-tech industries.

3.4 Fukuoka Prefecture

With its strategic location and open innovation policies, Fukuoka Prefecture is quickly becoming a high-tech hub in western Japan, especially in the fields of Internet of Things, game development, and smart cities. The Fukuoka Prefectural Government launched the “Fukuoka Entrepreneurship City Plan” to create Asia’s leading innovation and entrepreneurship ecosystem. The plan includes the establishment of the “Fukutsutsu Future Fund” to provide seed capital of up to 20 million yen for high-tech entrepreneurial projects. Fukuoka Prefecture has also developed the Fukuoka Software Research Park to provide rent subsidies and professional incubation services to IT companies.

In terms of industry-university-research cooperation, the Fukuoka Prefectural Government and Kyushu University jointly established the “Kyushu University Startup Park” to provide all-round support from technology research and development to commercialization for high-tech entrepreneurial projects. In addition, Fukuoka Prefecture regularly holds “Fukuoka Innovation Week” events to attract innovators and investors from around the world and promote international exchanges and cooperation. These measures have enabled Fukuoka Prefecture to cultivate a number of outstanding high-tech enterprises in a short period of time and gradually form a unique innovation ecosystem.

3.5 Aichi Prefecture

As a major manufacturing town in Japan, Aichi Prefecture is actively promoting the transformation of traditional industries into high-tech, focusing on the development of automobile electrification, aerospace and robotics. The Aichi Prefectural Government has formulated the “Aichi Innovation 2030 Plan” to create a world-class advanced manufacturing cluster. The plan includes the establishment of the “Aichi Industrial Upgrading Fund” to provide subsidies of up to 100 million yen for traditional enterprises to transform into high technologies. Aichi Prefecture has also focused on building a central airport city to provide tax incentives and professional technical support to aerospace-related enterprises.

In terms of industry-university-research cooperation, the Aichi Prefectural Government and Nagoya University have cooperated to establish the “Nagoya University-Toyota Advanced Mobility Research Institute” to promote the research and development of next-generation mobile technologies. In addition, Aichi Prefecture regularly holds the “Aichi Manufacturing Innovation Summit”, which brings together the world’s top manufacturing companies and research institutions to promote technological exchanges and cooperation. Through these measures, Aichi Prefecture is gradually building a unique ecosystem that integrates the advantages of traditional manufacturing and high-tech innovation to promote the development of industries in the direction of high added value.

3.6 Other important regions

In addition to the above-mentioned major regions, Japan also has a number of rising high-tech industrial clusters, each with its own characteristics:

Kanagawa Prefecture is building the “Kanagawa Health Innovation Zone” by leveraging its advantages in life sciences and robotics. The special zone provides R&D subsidies and clinical trial facilities for biopharmaceutical and medical device companies, with R&D funding support of up to 50 million yen available. At the same time, the Kanagawa Prefectural Government and Yokohama National University cooperated to establish the “Yokohama Robot Valley” to provide all-round support for the research and development and industrialization of robot technology.

Hyogo Prefecture focuses on the development of new energy and environmental protection technologies and launched the “Hyogo Green Innovation Plan”. The plan provides new energy companies with equipment investment subsidies of up to 30 million yen, and establishes an environmental protection technology research and development center in Kobe to promote industry-university-research cooperation. Hyogo Prefecture has also jointly established the “Kobe Marine Innovation Center” with Kobe University to promote the research and development of marine energy and environmental protection technologies.

Ibaraki Prefecture is building the “Ibaraki Science and Technology Innovation Corridor” by leveraging its advantages in the fields of materials science and quantum technology. The project provides land use concessions and R&D subsidies to settled companies, and can receive up to 20 million yen in innovation project funds. The Ibaraki Prefectural Government also cooperated with the University of Tsukuba to establish the “Tsukuba Innovation Ecosystem” to provide full-cycle support for high-tech entrepreneurial projects.

By formulating characteristic industrial policies, providing financial support, building professional parks and promoting industry-university-research cooperation, these regions are forming unique high-tech industry clusters and jointly promote the diversified development of Japan’s high-tech industry.

Implementation mechanism of Japan’s high-tech industrial policy

4.1 Responsibilities of central government departments

The formulation and implementation of Japan’s high-tech industrial policies are mainly completed in an orderly manner by multiple departments of the central government, effectively forming a complex and complicated policy implementation network. As the core department, the Ministry of Economy, Trade and Industry is responsible for formulating overall industrial development strategies and specific measures and policies. Through the Industrial Structure Review Committee and other institutions, we extensively collect public opinions from industry, academia and society to ensure that policies are heard and heard. The Ministry of Education, Culture, Sports, Science and Technology is mainly responsible for policies related to basic research and personnel training, and provides intellectual support for the development of high-tech industries through the establishment of various research funding projects and industry-university cooperation plans.

The Ministry of Internal Affairs and Communications plays a key role in promoting the development of information and communication technology and is responsible for formulating technical standards and application policies in 5G, Internet of Things and other fields. The provincial finance department provides financial incentives for high-tech enterprises through tax policies and financial support measures. The Conference on Comprehensive Science and Technology Innovation (CSTI) established under the government serves as a cross-departmental coordination agency and is responsible for formulating the country’s overall science and technology innovation strategy and ensuring the consistency and synergy of policies across departments. This multi-sector collaboration mechanism ensures the comprehensiveness and systematicness of Japan’s high-tech industrial policy, and can provide support for industrial development from multiple dimensions such as R&D, talent, capital, and market.

4.2 Role of local government

In the implementation process of Japan’s high-tech industrial policy, key roles are filled in the corners. They are not only the executors of central policies, but also the formulators and promoters of local characteristic industrial policies. Each prefectural and county government shall formulate high-tech industry development plans that are consistent with local realities based on the industrial characteristics and development needs of the region. For example, the “Tokyo Innovation Strategy” launched by the Tokyo Metropolitan Government and the “Osaka Innovation Ecosystem Construction Plan” launched by the Osaka Government fully reflect local characteristics.

Pyramid has established a dedicated science and technology innovation department to be responsible for the specific implementation and supervision of policies. They actively build infrastructure such as science and technology parks and innovation centers to provide physical space and supporting services for high-tech enterprises. At the same time, the pyramid also serves as a bridge, connecting the central government, local enterprises and research institutions, and promoting the effective docking of resources. Many fire brigades have also set up their own innovation funds or special funds for scientific and technological development to provide direct financial support to local high-tech enterprises. In addition, the fire brigade also actively organized various innovation forums, technical exchange meetings and other activities to create a good innovation atmosphere. This model of coordinated promotion between the central and local governments not only ensures the implementation of national policies, but also gives full play to local enthusiasm and foundation, forming a multi-level and multi-dimensional industrial high-tech support system.

4.3 The role of industry associations and industry organizations

In the process of formulating and implementing Japan’s high-tech industrial policies, industrial associations and industry organizations play a driver’s role. They are important links between the government, enterprises and research institutions. Japan Keidanren (Keidanren), the most influential comprehensive economic organization, regularly provides policy suggestions to the government on high-tech industry development issues, and its opinions often have an important impact on policy formulation. Industry associations in various professional fields, such as Japan Electronics and Information Technology Industries Association (JEITA), Japan Robotics Industry Association (JARA), etc., are more focused on policy research and suggestions in specific technical fields.

These organizations collect industry needs and development trends through regular surveys and seminars, and provide the government with first-hand information and professional opinions. At the same time, they are also an important channel for policy publicity and interpretation, helping member companies better understand and utilize multiple policy supports. Industry associations also organize international exchange activities to help Japanese companies explore overseas markets and introduce advanced international technology and management experience. In addition, these organizations also actively participate in the formulation of industry standards, promote industry self-discipline, and maintain market order. Industrial associations and industry organizations play a key role in improving coordination and promotion in the “formulation-implementation-feedback” cycle of Japan’s high-tech industrial policy, which effectively improves the tariff and implementation effects of the policy.

4.4 Policy implementation process

The implementation of Japan’s high-tech industrial policy follows a systematic and institutionalized process to ensure that every step of the policy from formulation to implementation can be effectively implemented. First, the policy formulation stage usually begins with the Comprehensive Science, Technology and Innovation Conference (CSTI). In addition, relevant departments such as the Ministry of Economy, Trade and Industry will organize expert committees to conduct in-depth research and discussions, extensively solicit opinions from industry, academia, and the public to form preliminary policy plans. The plan will be discussed at a cabinet meeting and submitted to Congress for review if necessary, eventually forming a formal policy.

After the policy is announced, relevant departments will formulate detailed implementation rules and operational guidelines. The central government ensures the coordination and consistency of policies of various departments through the inter-ministerial joint meeting mechanism of the government. At the same time, the central government will work with departments, industry associations, etc. to conduct policy publicity and ensure that the spirit of the policy can be truthfully conveyed to the grassroots. During the specific implementation process, relevant institutions will set up special project offices or service windows to provide policy consultation and application services to enterprises.

During the policy implementation process, governments at all levels and relevant agencies must conduct continuous monitoring and evaluation. A third-party evaluation agency is usually established to regularly monitor and evaluate the effectiveness of policy implementation. These evaluation results will be fed back to decision-making departments for policy adjustments. At the same time, industry associations and enterprises can also reflect problems and suggestions encountered during implementation through various channels and policies. This dynamic adjustment mechanism ensures that policies can respond to industrial development needs in a timely manner and maintain their efficiency and reserves.

Through six complete queue policy implementation processes, Japan ensures that high-tech industrial policy can form a closed loop from hardware design to grassroots implementation to maximize policy effects and provide guarantee for the sustainable development of Japan’s high-tech industry.

Policy support for foreign-invested enterprises

The Japanese government recognizes the important role of foreign-invested enterprises in promoting the development of domestic high-tech industries and has formulated a series of support policies aimed at attracting and retaining foreign high-tech enterprises. These policies cover many aspects such as foreign investment access, intellectual property protection, technical cooperation and talent introduction, forming a comprehensive support system. Through these policies, Japan hopes to create a fair, open, and innovative business environment for foreign-invested enterprises, promote international cooperation, and promote the further development of its high-tech industry.

5.1 Foreign investment access policy

The Japanese government has continuously improved and optimized foreign investment access policies in recent years to attract more high-tech foreign-invested enterprises to enter the Japanese market. The Foreign Exchange and Foreign Trade Law revised in 2019 further relaxed restrictions on foreign investment access, especially in the high-tech field. For example, in cutting-edge fields such as artificial intelligence, the Internet of Things, and biotechnology, foreign-funded enterprises can establish subsidiaries with 100% equity ownership. At the same time, Japan has also simplified the establishment procedures for foreign-invested enterprises and launched a “fast track” service, which has greatly shortened the time for enterprise registration.

In order to encourage foreign-invested enterprises to set up R&D centers in Japan, the Japanese government has provided a series of preferential measures. For example, foreign-invested enterprises investing in specific high-tech fields can enjoy corporate tax exemptions of up to 50%. In addition, the Japan External Trade Organization (JETRO) has established a special support window for foreign-funded enterprises to provide foreign-funded high-tech enterprises with a full range of consulting and services, including market information, partner docking, etc. These policy measures have greatly increased the attractiveness of the Japanese market to foreign high-tech enterprises and promoted the improvement of internationalization.

5.2 Intellectual Property Protection

Japan has the most complete intellectual property protection system, which is crucial to attracting high-tech foreign-invested enterprises. The Japan Patent Office (JPO) continues to optimize the patent examination process and has launched a “priority examination system” to prioritize patent applications involving important technological innovations, greatly shortening the examination time. At the same time, Japan has also established specialized intellectual property courts to improve the efficiency and professionalism of hearing intellectual property cases.

In order to help foreign-funded companies better protect their intellectual property rights in Japan, the Japan External Trade Organization (JETRO) has established an Intellectual Property Support Center to provide free consulting services to foreign-funded companies. In addition, the Japanese government has also actively promoted international intellectual property cooperation and signed Patent Prosecution Highway (PPH) agreements with many countries, allowing foreign-funded enterprises to obtain patent protection in Japan faster and easier. These measures effectively protect the innovation achievements of foreign-funded high-tech enterprises and enhance their confidence in investing and developing in the Japanese market.

5.3 Technical cooperation opportunities

The Japanese government attaches great importance to international technological cooperation and provides a wide range of cooperation opportunities for foreign high-tech enterprises. The New Energy and Industrial Technology Development Organization (NEDO) regularly issues tenders for international cooperation projects to encourage foreign-funded enterprises to participate in major scientific and technological projects in Japan. For example, in cutting-edge fields such as hydrogen energy and quantum computing, NEDO has set up special international cooperation projects to provide R&D financial support to foreign-funded enterprises.

The Japan Science and Technology Agency (JST) has also launched an open innovation plan for foreign-invested enterprises to encourage foreign-invested enterprises to cooperate with Japanese universities and research institutions. Through this program, foreign-invested enterprises can obtain cooperative research funds of up to 100 million yen. In addition, local governments in Japan are also actively promoting international industry-university-research cooperation. For example, Kyoto Prefecture’s “Kyoto International Science and Technology Innovation Center” project provides a platform for foreign high-tech companies to cooperate with local universities and enterprises. These diverse technical cooperation opportunities not only help foreign-funded enterprises better integrate into Japan’s innovation ecosystem, but also promote the implementation and application of international advanced technologies in Japan.

5.4 Talent introduction policy

The Japanese government recognizes that talent is the key to the development of high-tech industries and has introduced a series of policies to attract and retain high-end international talents. The “Highly Specialized Professionals” visa system launched in 2012 provides more convenient entry and long-term residence conditions for foreign professionals in high-tech fields. The system also introduces a points system so that foreign talents who have made outstanding contributions in specific high-tech fields can obtain permanent residence faster.

In order to help foreign-funded enterprises better recruit talents in Japan, the Japan Foreign Employment Service Center provides free recruitment consulting and matching services. At the same time, the Japanese government has also promoted a series of measures to improve the living environment for foreign talents, such as adding international schools and simplifying medical services. In terms of scientific research talents, the Japan Society for the Promotion of Science (JSPS) has established a number of international collaborative research projects to provide long-term research funding to foreign researchers and encourage them to conduct cutting-edge scientific and technological research in Japan. These comprehensive talent policies provide strong talent support for the development of foreign high-tech enterprises in Japan.

Case analysis

Next, we analyze some cases to deeply explore the effectiveness of Japan’s high-tech policies in practical applications, summarize the successful experiences of specific companies, show how supporting policies promote corporate innovation and development, and how multinational companies carry out strategies in Japan’s high-tech fields. sexual investment.

6.1 Cases of companies that have successfully used policy support

SoftBank Group is a typical representative that grew up with the support of Japan’s high-tech industrial policy. As a company that started out as a telecommunications business, SoftBank has rapidly transformed into a world-leading technology investment company with the support of the Japanese government’s policies to promote the development of 5G and the Internet of Things. In 2017, the Japanese government issued the “Future Investment Strategy”, focusing on artificial intelligence and the Internet of Things as key development areas. SoftBank seized this opportunity and established a “Vision Fund” with a scale of up to US$100 billion, focusing on investments in cutting-edge technologies such as AI and the Internet of Things.

Government policy support is reflected in many aspects. First, the Ministry of Economy, Trade and Industry provided large payments for SoftBank’s AI research and development projects to support its establishment of an AI research center in Japan. Secondly, the Japanese government has relaxed regulations on the telecommunications industry, allowing SoftBank to expand its business more flexibly. In addition, SoftBank has also taken advantage of the Japanese government’s tax incentives and obtained considerable tax exemptions through investments in specific high-tech fields. These policy supports not only help SoftBank gain a foothold in the domestic market, but also provide strong backing for its global expansion.

Today, SoftBank has become an important promoter of global technological innovation, and its investment portfolio includes many cutting-edge technology companies. SoftBank’s success not only reflects the role of Japan’s high-tech industrial policy, but also wins Japan an important position in global technology competition.

Another success story is semiconductor manufacturer Tokyo Electron. Against the background of the Japanese government’s strong support for the development of the semiconductor industry, Tokyo Electronics has made full use of various support policies and achieved rapid growth. In 2019, the Japanese government launched a series of support measures to rapidly develop the semiconductor industry as these national strategic industries. Tokyo Electronics actively responded to the policy call and increased investment in the research and development of advanced manufacturing process equipment.

The company leverages the R&D advantages of the Ministry of Economy, Trade and Industry and cooperates with a number of universities to conduct research on extreme ultraviolet lithography (EUV) technology. At the same time, Tokyo Electronics also participated in the national semiconductor technology development project led by the New Energy Industrial Technology Development Organization (NEDO) and received a large amount of technical and financial support. In addition, the company has successfully developed overseas markets by taking advantage of the Japanese government’s export support policies.

Through these policy supports, Tokyo Electronics has not only consolidated its global leadership position in certain semiconductor equipment fields, but also successfully entered new market areas. The company’s turnover and profits have achieved significant growth in the past few years, fully proving the actual effect of Japan’s high-level science and technology policy industry.

6.2 High-end investment cases of multinational companies in Japan

American technology gathering Apple Inc.’s investment strategy in Japan is the focus of multinational companies leveraging Japan’s high-tech industrial policies. Although Apple mainly sells in Japan, the company has gradually increased its investment in Japan in recent years. Japan’s investment in R&D, especially in the fields of artificial intelligence and new materials.

In 2019, Apple announced the establishment of an artificial intelligence research and development center in Yokohama, Japan. This decision is highly consistent with the Japanese government’s policy of vigorously promoting the development of the artificial intelligence industry. Japan has provided Apple with a series of support, including simplifying government administrative approval plans and providing tax incentives. At the same time, the Yokohama City Government has also provided site support and talent introduction facilities for Apple’s R&D center.

Apple also actively participates in industry-university-research cooperation projects led by the Japanese government. For example, the company collaborated with the University of Tokyo to conduct research on image recognition technology based on machine learning, and the project received research support from the Ministry of Education, Culture, Sports, Science and Technology. In addition, Apple has also joined the “AI Ethics Alliance” initiated by the Ministry of Economy, Trade and Industry and participated in the formulation of Japan’s AI ethics standards. This not only enhances the company’s influence in Japan, but also provides rich information for global AI strategies.

Through these investments and collaborations, Apple has not only deepened its ties with Japan’s high-tech ecosystem, but also strengthened an important link in its global innovation network. This demonstration case shows how Japan can attract the world’s leading technology companies to conduct high value-added R&D activities in Japan through open and supportive policies.

Another case worthy of attention is the investment of Germany’s Siemens AG in Japan. Siemens has identified Japan’s development potential in the fields of Industry 4.0 and smart manufacturing, and has significantly increased its investment in Japan in recent years. In 2018, Siemens’ investment in Japan increased significantly. Tokyo has established a “Digital Innovation Center” to focus on developing smart manufacturing solutions for the Japanese market.

The Japanese government’s “Internet Industry” strategy provides Siemens with a good policy environment. The Ministry of Economy, Trade and Industry has provided financial support for Siemens’ localized R&D projects and also helped Siemens establish cooperative relationships with local Japanese manufacturing companies. Siemens also actively participates in industry standard setting projects organized by the Japan Machinery Industry Federation, which not only helps promote the technical standards of many companies, but also deepens ties with the Japanese industry.

Through these investments and cooperation, Siemens has successfully combined its world-leading industrial digitalization technology with Japan’s cutting-edge manufacturing processes to develop a series of high-end innovative products suitable for the Japanese market. This case not only demonstrates the policy effectiveness of Japan’s attractiveness in manufacturing investment, but also reflects how multinational companies can deeply explore the Japanese market through localized innovation.

These case studies not only reflect the actual effects of the policy, but also hope to provide some useful experience and inspiration for other companies and policymakers.

Policy effect evaluation

The implementation of Japan’s high-tech industrial policy has achieved certain results, but it also faces some challenges. This section will comprehensively evaluate the implementation effects of the policy, analyze existing problems, and explore possible future policy adjustments. Through this systematic assessment, we can better understand the impact of Japan’s high-tech industrial policy and provide valuable reference for future policy formulation and implementation.

7.1 Effectiveness of policy implementation

The implementation of Japan’s high-tech industrial policy has achieved remarkable results in many aspects. First of all, in terms of R&D investment, Japan’s R&D expenditure as a share of GDP continues to remain at around 3.5%, ranking among the top in the world. This reflects that the government’s R&D support policies have effectively stimulated enterprises and research institutions to increase investment in innovation. For example, in the field of artificial intelligence, the number of patent applications in Japan increased by nearly 200% between 2015 and 2020, indicating that policies have effectively promoted the development of cutting-edge technologies.

Secondly, in terms of industrial structure optimization, the proportion of high-tech industries in the Japanese economy continues to increase. According to data from the Ministry of Economy, Trade and Industry, the added value of Japan’s high-tech manufacturing industry accounted for 28.5% of the total added value of the manufacturing industry in 2020, an increase of 3 percentage points from 2015. This shows that the policy has successfully promoted the transformation of industries into high value-added directions.

In terms of talent cultivation and attraction, the policy has also achieved positive results. The number of graduates from Japanese higher education institutions in STEM (science, technology, engineering, mathematics) fields continues to increase, with a 15% increase in 2020 compared with 2015. At the same time, the number of highly specialized professional talent visas issued is also increasing year by year, reaching approximately 20,000 in 2020, nearly double that of 2015, reflecting Japan’s progress in attracting international high-tech talents.

In terms of building an innovation and entrepreneurship ecosystem, the effect of policies is also obvious. According to the Japan Venture Capital Association, total venture capital investment in Japan reached approximately 1.8 trillion yen in 2020, more than three times that of 2015. The number of newly established high-tech startups is also growing steadily, with an increase of about 40% in 2020 compared with 2015. These data show that the policy effectively promotes the prosperity of innovative and entrepreneurial activities.

In addition, in terms of international cooperation, the number of Japanese companies and research institutions participating in international scientific and technological cooperation projects has increased significantly. For example, the number of Japanese units participating in the EU’s Horizon 2020 program more than doubled in 2020 than in 2015. This reflects the effectiveness of Japan’s policies in promoting international scientific and technological cooperation.

7.2 Existing problems and challenges

Japan’s high-tech industrial policy also faces some problems and challenges during its implementation. The first is the issue of policy coordination and coherence. Since Japan’s science and technology innovation policy involves multiple departments, such as the Ministry of Education, Culture, Sports, Science and Technology, the Ministry of Economy, Trade and Industry, and the Ministry of Internal Affairs and Communications, policy coordination between various departments is sometimes insufficient, resulting in resource dispersion and reduced policy effects. For example, in the field of artificial intelligence, support policies launched by different departments sometimes overlap, resulting in a waste of resources.

Secondly, there is insufficient flexibility and adaptability in policy implementation. Japan’s policy formulation and implementation process is often slow, making it difficult to respond in a timely manner to rapidly changing technological and market environments. For example, in the fields of emerging technologies such as blockchain and quantum computing, Japan’s policy support is relatively lagging behind, which has affected the development speed of related industries.

Furthermore, it is more difficult for small and medium-sized enterprises and entrepreneurial enterprises to obtain policy support. Although the Japanese government has launched many policies to support the innovation of small and medium-sized enterprises, in practice, large enterprises often have easier access to resources and support. According to a survey by the Small and Medium Enterprises Agency, only about 20% of high-tech small and medium-sized enterprises stated that they can make full use of the government’s support policies, which reflects that the inclusiveness of policy implementation needs to be improved.

There are also challenges facing talent policies. Although Japan has made progress in attracting international talent, it still faces difficulties in retaining talent. According to data from the Ministry of Education, Culture, Sports, Science and Technology, about 30% of foreign students choose to leave Japan after graduation, many of whom are talents in high-tech fields. Factors such as language barriers and differences in workplace culture still restrict Japan’s ability to attract and retain international talent.

Finally, Japan’s international competitiveness in some frontier technological fields has declined. For example, in fields such as 5G technology and artificial intelligence chips, the global market share of Japanese companies has shown a downward trend in recent years. This reflects the challenges Japan faces in maintaining technological leadership and also exposes the shortcomings of existing policies in supporting breakthroughs in cutting-edge technologies.

7.3 Future policy adjustment directions

Based on the effectiveness of the above policy implementation and the challenges faced, Japan’s future high-tech industrial policy may be adjusted in the following directions:

Strengthen policy coordination and systematization. Consideration can be given to establishing a cross-departmental high-tech industry development coordination agency to coordinate the policy formulation and implementation of various departments and improve resource utilization efficiency. For example, we can refer to the National Science and Technology Council model in the United States to establish a science and technology innovation strategy coordination agency directly under the cabinet, responsible for formulating national-level high-tech industry development strategies and coordinating the policy implementation of various departments.

Improve policy flexibility and pertinence. More “bottom-up” policy formulation methods can be adopted to fully listen to the opinions of industry and academia to make policies closer to actual needs. At the same time, a “quick response” mechanism can be established to respond promptly to the development needs of emerging technology fields. For example, an “Emerging Technology Development Fund” could be established to provide rapid and flexible support for potentially disruptive technologies.

Increase support for small and medium-sized enterprises and entrepreneurial enterprises. It can simplify the procedures for small and medium-sized enterprises to apply for policy support and provide more “one-stop” services. At the same time, support funds specifically targeted at high-tech entrepreneurial enterprises can be established to provide them with more financing channels. For example, you can refer to Israel’s “Technology Incubator Program” to provide comprehensive support for high-tech startups.

Improve talent policies. On the one hand, it is necessary to continue to optimize the working and living environment for international talents, such as promoting companies to adopt more international management models and providing more English services. On the other hand, it is necessary to strengthen the cultivation of local talents, especially in cutting-edge fields such as AI and quantum computing, and consider setting up special talent training programs. For example, we can cooperate with top technology companies to establish a “future technology talent training base” to provide students with practical opportunities for cutting-edge technologies.

Increase strategic investment in cutting-edge technology fields. A national-level “Frontier Technology Breakthrough Plan” can be established to pool resources to overcome key technical problems. At the same time, more attention should be paid to industry-university-research cooperation to promote the industrialization of basic research results. For example, you can refer to Germany’s “High-Tech Strategy 2025” to select a number of key technology areas and formulate long-term development plans and support policies.

Further promote international cooperation. More international joint R&D funds can be established to encourage Japanese companies and research institutions to participate in global scientific and technological innovation networks. At the same time, it is necessary to actively participate in the formulation of international science and technology rules and enhance Japan’s voice in global science and technology governance. For example, Japanese solutions can be proposed in areas such as artificial intelligence ethics and data security to promote the formation of international consensus.

Practical suggestions for enterprises

For companies hoping to develop in Japan’s high-tech sector, it is crucial to make full use of existing policy support. Enterprises should fully understand the various support policies provided by the Japanese government, including R&D subsidies, tax incentives, talent introduction support, etc. It is recommended that enterprises regularly pay attention to the official websites of the Ministry of Economy, Trade and Industry, the Ministry of Education, Culture, Sports, Science and Technology and other relevant departments to obtain the latest policy information in a timely manner. At the same time, actively participating in the activities of industry associations and chambers of commerce is also an effective way to understand policy trends. Enterprises can consider appointing a dedicated person to be responsible for policy research and docking to ensure that no potential support opportunities are missed.

When applying for government support, businesses need to pay attention to several key points. Please read the application guide carefully to ensure that the project meets policy requirements. It is recommended that before formal application, preliminary communication be conducted with relevant departments to understand the specific requirements and review focus. When preparing application materials, the innovative nature of the project and its contribution to Japan’s industrial development should be highlighted, while attention should be paid to the completeness and accuracy of the materials. For some large-scale support projects, you may consider seeking help from professional consulting agencies to increase the success rate of your application. In addition, companies should also pay attention to the application time points and make preparations in advance to avoid losing opportunities due to missed deadlines.

Taking advantage of government policy support brings opportunities but also some potential risks. An important opportunity is to obtain additional R&D funding through government programs to accelerate technological innovation. Participating in government-supported projects may also bring opportunities for industry-university-research cooperation, helping companies expand their innovation networks. On the other hand, companies also need to be wary of the risks of over-reliance on government support. Over-reliance may cause companies to neglect market-oriented innovation, affecting long-term competitiveness. In addition, some government projects may require companies to disclose part of their research results, and companies need to find a balance between obtaining support and protecting core technologies.

In order to maximize the effect of policy utilization and avoid risks, it is recommended that enterprises formulate a clear policy utilization strategy. You can combine government support with your own R&D planning, and focus on applying for projects that are consistent with the company’s long-term development direction. At the same time, enterprises should establish a sound intellectual property management system and protect technology when participating in government projects. In addition, companies should also pay attention to complying with various regulations of the project, including fund use, progress reporting, etc., to avoid affecting the company’s reputation or losing future support opportunities due to violations.

In general, Japan’s high-tech industrial policy provides valuable development opportunities for enterprises. Enterprises should proactively understand and utilize these policies, but at the same time, they must maintain strategic focus and use policy support as a supplement to promote their own development, rather than mainly relying on it. By properly utilizing policy support, companies are expected to gain an advantage in Japan’s highly competitive high-tech field and achieve sustainable development.