NEDO's Technology Strategy Center (TSC) published "Innovation Outlook Ver1.0" on July 1, 2025, a comprehensive report that analyzes domestic and international market, technology, and policy trends to identify and propose new areas Japan should focus on. This report systematically presents frontier areas that Japan should newly address, existing areas requiring additional or accelerated efforts, and areas where inter-domain fusion should be promoted to solve social challenges.
As a formulation approach, in addition to the conventional technology (T) driven approach, the report adopts the MFT Logic Model, which emphasizes a mission (M) driven approach. This framework addresses diversifying and increasingly complex social challenges by considering required new functions and value propositions (F), and derives solutions by combining existing and new functions and technologies. The framework references technology management methods developed by Arthur D. Little and extracts functions and value propositions required for solving social challenges through a backcasting approach.
Version 1.0 identifies 13 frontier areas based on TSC's previously created "Prosperous Future" vision. The selection criteria include five perspectives: "Future potential (growth and social challenges)," "Innovation in technology and ideas," "Japan's competitive advantages," "Difficulty for private sector alone," and "Critical economic security technologies."
As specific priority frontier areas, the "Frontier Development Project" has been launched in two domains: "Extreme Materials" and "Natural Hydrogen." In the Extreme Materials domain, the project aims to induce material-driven innovation by maximizing material characteristic functions such as heat resistance, strength, and corrosion resistance, as well as material physical properties including optical characteristics, thermal conductivity, and electrical conductivity, thereby contributing to carbon neutrality and circular economy realization. In the Natural Hydrogen domain, research explores the potential as a future low-carbon hydrogen source through elucidating generation, migration, and accumulation mechanisms in deep underground formations.
Looking ahead, NEDO aims to promote a comprehensive management flow from frontier area exploration to development, implementation as national projects or private ventures, and social implementation, targeting social deployment around 2040. The organization seeks to contribute to developing innovative technologies that achieve both decarbonization and economic growth while building sustainable industrial foundations.