Technical Guidance on Expanding Startup Procurement by Local Governments

The government is working to expand procurement from startups by national and local governments, including from the perspective of socially implementing startup technologies that contribute to solving regional challenges. Startups here means small and medium-sized enterprises or small business operators founded less than 10 years ago.

The Japan Growth Strategy, approved by the Cabinet on July 21, 2026, sets out a policy of regularly surveying each fiscal year the actual procurement practices involving “Type 4 contracts awarded without competitive bidding” by local governments, providing support such as guidance encouraging active use, and promoting the broader adoption of outstanding procurement cases.

The notice, the survey of actual procurement practices, and the compilation of cases will support expanded procurement from startups by local governments and the social implementation of startup technologies.

In cooperation with the Ministry of Economy, Trade and Industry, the government issued to each local government a notice titled “Expanding Procurement from Startups through Contracts Awarded without Competitive Bidding under Article 167-2, Paragraph 1, Item 4 of the Order for Enforcement of the Local Autonomy Act.”

Actual procurement practices involving Type 4 contracts awarded without competitive bidding by each local government were surveyed, and procurement cases were compiled.

The press materials, dated August 4, 2026, announced the issuance of the notice and the survey and compilation of cases.