Reason2. Japan is open as an Innovation Hub

Industrial Cluster
(Tokyo-Yokohama)
World
No. 1
-
“The GII Top Science and Technology Clusters” in The Global Innovation Index 2021 (p.35)
Research&Development
(Evaluated on R&D expenditures as a percentage of GDP, the number of scientific publications and citations, etc.)
World
No. 1
-
The Global Competitiveness Report 2019
(World Economic Forum)
Patent applications
(per million population)
World
No. 1
-
The Global Competitiveness Report 2019
(World Economic Forum)



Digital Transformation (DX) Investment Promotion Tax Incentive
Digital Transformation (DX) Investment Promotion Tax Incentive has been established. For digital-related investments using cloud technology necessary to realize digital transformation, companies can select either a tax credit of 3% of the acquisition price (5% for data linkage with businesses outside the group) or a special depreciation of 30%.
[Applicable] until March 31, 2023
Name of Tax Incentive | Requirements | Eligible Facilities | Details of Measures |
---|---|---|---|
Digital Transformation (DX) Investment Promotion Tax Incentive |
Digital (D) requirements
|
Software Deferred assets Machinery and equipment Furniture and fixtures |
Tax credit of 3% (5% for data linkage with external parties) or, Special depreciation of 30% |
Corporate transformation (X) requirements
|
-
[N.B.]
1. The maximum amount of capital investment under the Digital Transformation (DX) Investment Promotion Tax Incentive is 30 billion yen. 2.The maximum tax credit applicable is 20% of the corporate tax amount in total of the investment promotion tax incentives for carbon neutrality and digital transformation.
-
[Source]
Prepared based on "FY 2021 Tax Reform" (Ministry of Finance), and materials from the Agency for Natural Resources and Energy, METI
Startup Ecosystem
Japan will support startup ecosystems
in eight cities under seven strategies over the next three years.

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* Acceleration Programs : Programs to support refining startups' business models and accelerate growth.
** Funds to fill the gap between basic research and commercialization, such as prototype development costs
[Source] Prepared from materials from the Integrated Innovation Strategic Meetings (7th) and the Comprehensive Science, Technology and Innovation Event (50th)
Smartizing the whole city
Japan aims to provide highly convenient and efficient services by revising The National Strategic Special Zones Law and introducing advanced services such as drone delivery, tele medicine and nursing care, and autonomous driving.

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[Source] Prepared from the "Supercity" concept (September 2020) of the Cabinet Office Regional Revitalization Promotion Secretariat
JETRO's support for collaboration between Japanese and overseas companies
JETRO launched a DX portal to support companies seeking to collaborate with overseas companies that utilize digital technologies.
DX platform-based support
We aim to develop cooperation and collaboration projects through online webinars , matching, hackathons, and other
Global Acceleration Hub
We have established the JETRO Global Acceleration Hub to support the global expansion of Japanese startups in collaboration with leading local accelerators and other partners in advanced startup ecosystems around the world.
Support for demonstration projects (pilot projects)
By promoting demonstration projects between ASEAN and Japanese companies, we support companies in implementing digital technologies in their fields.
Open Innovation related events
We support cooperation and collaboration (open innovation) between promising startups around the world and Japanese companies.
DX Related News & Related Measures
This section provides information on DX related businesses and related measures.
"J-Startup" public private intensive support program for startups
To boost the global expansion of Japanese startups utilizing overseas funding, human resources, and technology, we will establish J-Startup pavilions at five leading overseas startup-related events to support Japanese startups' participation.
Reason3. Excellent Business Environment
