Accelerating innovation for the benefit of society

accelerating innovation, circular economy
© Hakan Can Yalcin

Open Access Government highlights the priorities of The New Energy and Industrial Technology Development Organization (NEDO), as it works to advance innovation and combat global environmental issues

The New Energy and Industrial Technology Development Organization (NEDO) is one of the largest public research and development management organisations in Japan, and it works with the government to implement economic and industrial policies. NEDO acts as an innovation accelerator, contributing to solving social issues by developing and demonstrating high-risk innovative technologies and strategies. As part of its project management, NEDO also establishes project implementation frameworks by combining the capabilities of industry, academia, and government. In 2020, NEDO’s budget was approximately $1.44 billion.

NEDO champions two overarching missions; addressing energy and global environmental problems, and enhancing industrial technology. These two missions work separately to achieve their individual goals but also come together, sharing the joint end goal of promoting the ongoing development of the three essential social systems necessary to realise a sustainable society; Circular Economy, Bio[1]Economy, and Sustainable Energy.


Developing new energy and energy conservation technologies and conducting research to verify technical results are responsibilities that NEDO actively undertakes.

Through these efforts, NEDO promotes greater utilisation of new energy and improved energy conservation both nationally and internationally.

For example, March 2021 marked the start of a new demonstration project of advanced digital solutions by NEDO and Marubeni Corporation (Marubeni) which includes research into:

  • Increasing the reliability of power generation facilities.
  • Optimising power generation.
  • Using AI and big data analysis to predict plant abnormalities before a failure.
  • Reducing greenhouse gas emissions due to the improvement of fuel efficiency.
  • Quantifying greenhouse gas emission reduction through the Joint Crediting Mechanism (JCM) and disseminating the information.

Industrial technology

With the aim of raising the bar for industrial technology, NEDO also pursues research and development of advanced new technology. Drawing on its considerable management know-how, NEDO carries out numerous projects to explore future technology seeds as well as mid- to long-term projects that then form the basis of industrial development. Furthermore, NEDO supports research related to practical application.

NEDO is currently carrying out its Fourth Five-Year Plan that began in April 2018 with a focus on its three pillars:

  • Achieving results for practical application through technology development management: NEDO is striving to further strengthen its management capability to promote challenging research and development activities based on technology strategies – utilising R&D development results as much as possible.
  • Fostering technology-based start-ups: Establishing consistent support from the seed phase to practical application is essential to successfully develop and implement various support measures which will foster human resources and technology-based start-ups. NEDO’s activities include giving assistance to discover human resources capable of bringing about innovation, thus creating new industries. In addition, NEDO facilitates open innovation and cooperates and exchanges information with other public organisations with similar aims.
  • Providing a new direction for mid- and long-term technology development: This will lead to cultivation and practical use of innovation in the future.

Open innovation

NEDO also facilitates open innovation in 2021 and beyond. As international competition intensifies, it is important to promote open innovation that utilises a large variety of technologies, ideas and resources to lead the global market. It will also be vital to tie this effort to the creation of new products and business models.

NEDO is currently strengthening its promotion of open innovation by organising activities such as matching events that lead to the creation of joint research and technology alliances between NEDO project participants and outside businesses, universities, and other organisations.

“NEDO will continue to make every effort to contribute to society by providing opportunities to produce innovation through industry-academia-government collaboration and achieving results in a timely manner,” stated the NEDO Chairman ISHIZUKA Hiroaki in the Chairman’s message.


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