Japanese Prime Minister Sanae Takaichi supports a plan by Japanese companies to double research grants, focusing investment on cutting-edge technology development to restore Japan's international competitiveness. She has proposed a "New Technology Nation" strategy, which will include establishing a research accreditation system for Japanese universities and funding the training of top-tier scientific and technological talent.
In the 2025 Global Innovation Index, Japan ranks 12th, behind South Korea (4th), Singapore (5th), and China (10th), highlighting Japan's declining technological dominance in Asia.
On Wednesday (May 13), Sanae Takaichi accepted a proposal from the Japan Business Federation (Keidanren), Japan's largest business lobbying group, to increase research and development funding. The proposal aims to increase public and private R&D investment from the current 20 trillion yen (approximately S$161.2 billion) to 50 trillion yen by 2040.
When submitting his proposal, Keidanren Chairman Yoshinobu Tsui pointed out that to improve Japan's technology sector, private companies must shift their management policies from a cost-cutting model to an investment-driven model. He also emphasized the need for the Japanese government to expand R&D subsidies to support companies in developing new technologies.
Kaohsiung City Mayor agreed with the Japan Business Federation's plan to double research funding. She emphasized that a strong economic foundation lies in outstanding scientific and technological strength, which aligns with the government's goal of building a technologically advanced nation. She also pledged to include the R&D subsidy program in the "Japan Growth Strategy" guidelines to be formulated this summer (July).
Takashi City also announced plans to expand the functions of the National Institute of Advanced Industrial Science and Technology (AIST) to promote the social application of new technologies developed by government-affiliated research institutions. Furthermore, it plans to create a new university accreditation system, aiming to build universities with advanced scientific research capabilities and achieve world-class research standards.
Japanese media reports that the Takaichi Cabinet's "New Technology Nation-Building Strategy" uses a five-year period starting in fiscal year 2026 as a period of intensive reform. Her goal is to make Japan a world leader in specific research fields, enabling it to demonstrate its advantages and international competitiveness. Priority will be given to developing 17 fields, including artificial intelligence, quantum mechanics, biomedicine, and materials science.
Furthermore, Japan is also following the example of the United States and the United Kingdom by applying artificial intelligence to scientific research. The Japanese Ministry of Education has announced an allocation of approximately 32 billion yen to establish a special fund to promote research projects over the next three years.