Formulation of the Integrated Innovation Strategy 2026

On July 10, 2026, Prime Minister Takaichi held the 85th Council for Science, Technology and Innovation at the Prime Minister's Official Residence and discussed the formulation of the Integrated Innovation Strategy 2026.

The strategy draft was described as a compilation of priority measures for the first year of the Seventh Basic Plan for Science, Technology and Innovation, which was approved by the Cabinet in March of this year. It set out a policy to enhance science, technology and innovation capabilities and advance scientific research and social implementation in an integrated manner.

The strategy is intended to promote public and private research and development investment through expanded research funding and the use of the research and development tax incentive. The SBIR system was described as supporting the innovation ecosystem, while forming university groups was described as an initiative that would strengthen industrial competitiveness.

The policy is to make outstanding science and technology capabilities the foundation of a strong economy and, through an all-of-government effort, implement this strategy to achieve a nation built on new technologies.

In the FY2027 budget request, the government will also use the Strong and Affluent Japan Investment Framework to substantially expand Grants-in-Aid for Scientific Research and university operating grants and secure the budget necessary for the foundations of knowledge.

For the research and development tax incentive, which was fundamentally strengthened by the Amended Industrial Technology Enhancement Act, the government will develop related laws and regulations toward implementation from FY2027 and promote awareness and utilization among companies, universities, and national research and development agencies.

In compiling the Japan Growth Strategy, the government requested that it reflect the fundamental expansion of the SBIR system, which promotes government procurement of startup products and services, and consideration of forming new university groups centered on 17 strategic fields.