The Japan Business Federation, known as Keidanren, proposed doubling annual research and development investment to 50 trillion yen by 2040 [1].
This proposal marks a significant shift in Japan's economic strategy as the nation attempts to regain a competitive edge against the U.S. and China. By prioritizing quantitative growth in innovation, the business group aims to transform Japan into a "science and technology nation."
The target of 50 trillion yen represents a substantial increase from the 2023 fiscal year, when research and development investment stood at 22 trillion yen [1]. Keidanren said that this goal would bring R&D spending to five percent of the nation's gross domestic product [2].
To manage this expansion, the federation proposed the establishment of a new Ministry of Science and Technology [2]. This structural change would centralize the administration of science policy and funding to ensure the country can keep pace with the rapid acceleration of artificial intelligence and other emerging technologies.
Jun Sawada, Keidanren Vice Chairman and NTT Chairman, said the proposal is a declaration that the business community will move proactively to advance investment in facilities, human resources, and research and development.
Private sector investment currently accounts for approximately 80% of the total R&D spending in Japan [1]. The new proposal calls for a coordinated increase in both public and private funding to secure the necessary scale for global competition.
Sawada said, "We will proactively move forward, starting with Keidanren, to advance not only research and development but also capital investment and human investment."
“doubling annual research and development investment to 50 trillion yen by 2040”
The proposal reflects a growing urgency among Japanese industry leaders to address a widening innovation gap. By calling for a dedicated ministry and a GDP-linked spending target, Keidanren is pushing for a systemic overhaul of how Japan funds and governs science, moving away from incremental growth toward a state-led industrial strategy designed to counter the massive R&D expenditures of the U.S. and China.
