Japan is reigniting its innovation engine. Once a powerhouse in global research and development, Japan saw its share of global innovation slip following the 1990s. Today, the government is making a renewed effort to revitalize its R&D landscape.
In 2023, Japanese corporates invested more than ¥15 trillion ($102 billion) in R&D, ranking the country third globally — and first among major economies in R&D spend as a share of GDP, surpassing the United States and China. The government’s 6th Science, Technology and Innovation Basic Plan (2021–2025) targets ¥120 trillion ($812 billion) in public and private R&D spending over five years and raising R&D spend to 4.0 percent of GDP.
Alongside funding, Japan is pursuing a range of policies to boost R&D. For instance, the government has formulated its Bioeconomy Strategy, which aims to create a ¥100 trillion ($677 billion) market by 2030 across bioeconomy sectors including biopharma, regenerative
