The Japanese government has approved a bill to amend the Industrial Competitiveness Enhancement Act, aiming to accelerate R&D in strategic technology fields and reinforce collaboration between industry and academia.

The proposed legislation introduces a framework to designate “priority industrial technologies,” including AI, advanced robotics, quantum computing, semiconductors, and communications. Companies will be able to receive official certification for R&D plans in these areas, while universities and research institutions can be accredited as qualified partners with the necessary talent, infrastructure, and capabilities.

To incentivize participation, the bill expands R&D tax credits. Certified companies can deduct up to 40% of eligible R&D expenses, rising to 50% for joint research with accredited institutions. The reform also streamlines administrative procedures, allowing companies to consolidate approval processes when repurposing subsidized equipment for new R&D projects.

In addition, the framework enhances regulatory flexibility by linking certified projects to Japan’s regulatory sandbox system, enabling faster social implementation of emerging technologies. Public agencies such as NEDO and JST will provide advisory support and strategic information.

The bill reflects Japan’s broader push to strengthen its deep tech ecosystem and global competitiveness through coordinated public-private innovation.