Japan innovation: Brains, budgets, and breakthroughs

June 9, 2025

The flow of data across a connected world. (World Map Courtesy of NASA: https://visibleearth.nasa.gov/view.php?id=55167) — Image: © imaginima | iStock

Professor Himanshu Rai, Director at the Indian Institute of Management Indore, guides us through concepts of brains, funding, and breakthroughs in Japan’s master plan for innovation

Japan stands out globally as a leader in innovation, as a country driven by a deep commitment to scientific knowledge and discovery. It is a place where research plays a part in everyday life, in a country that ensures that science is not something separate

Academic research is the backbone of Japan’s strength in science, technology, engineering, and mathematics (STEM). This is because, in Japan, a culture of inquiry thrives in which scientists, scholars, and students pursue ideas with curiosity and purpose. In this environment, transformative solutions often emerge, impacting the fields of medicine, transportation, communication, climate resilience, and beyond.

Ministry of Education, Culture, Sports, Science and Technology (MEXT)

In Japan, academic research is a national mission steered by MEXT, the Ministry of Education, Culture, Sports, Science and Technology. This organisation wears many hats, but one of its core missions is encouraging academic research, which generates diverse and original knowledge. The ministry supports universities and inter-university research institutes, encouraging them to push the boundaries of thought and discovery, and fuels idea generation with funding. ⁽¹⁾

In 2024, Japan’s budget request for science and technology hit 2,400.8 billion yen ⁽²⁾, an increase of 342.9 billion yen from the previous year. Much of this funding goes to Grants-in-Aid for Scientific Research (KAKENHI)⁽³⁾, Japan’s most prestigious academic funding scheme, which empowers researchers to explore novel, high-risk ideas without being shackled to immediate commercial outcomes, resulting in profound innovation.

Japan has long understood that basic research is the bedrock of real-world breakthroughs, whether it’s the blue LED that revolutionised lighting and won a Nobel Prize in Physics in 2014 or the neutrino research at Super-Kamiokande that led to Takaaki Kajita’s Nobel Prize in Physics in 2015. The world-changing discoveries by Japan were not flukes but the result of decades of well-funded research and a culture that prioritises curiosity.

MEXT has expanded its footprint, backing major international projects under the large-scale academic frontiers project.⁽¹⁾ This helps to form world-class research infrastructure and international research hubs in Japan. These hubs act as magnets, pulling in top researchers from every corner of the globe, all working together in open, collaborative ecosystems.

One of Japan’s most ambitious scientific initiatives is the World Premier International Research Center Initiative (WPI), launched by MEXT in 2007. ⁽⁴⁾ It serves as a global model for promoting elite research centres that combine international visibility with groundbreaking innovation. These institutes produce world-class science and encourage open collaboration and cross-disciplinary thinking. Japan’s scientific vision goes beyond discovery and focuses equally on application.

Japan pushes science and technology frontiers

Through its concept of a “super smart society”, Japan has placed advanced digital technologies like AI, IoT, robotics, and big data into every aspect of daily life. This includes the use of technology in almost every segment, from healthcare and education to urban planning and disaster preparedness.

With its strong scientific roots, Japan has emphasised fundamental and widespread training in physics, chemistry, and bioengineering, and continues to double down on foundational science education to strengthen its scientific roots. As a result of this, the country ranks consistently among the top 20 countries worldwide for research output and technological innovation. It is still pushing to maintain its international competitiveness by nurturing the next generation of scientists and engineers.

MEXT is actively investing in STEM education from early schooling to postgraduate levels. It’s also working to make Japanese research institutions more globally competitive by promoting English-language programmes, international exchanges, and collaborative PhD pathways.⁽⁵⁾ To ensure Japan maintains its position, it invests in people, projects, and possibilities before the world even realises it needs them.

Innovation, funding, and breakthroughs in Japan

Looking ahead, Japan continues to push the frontiers of science and technology, from quantum computing labs in Tokyo to AI models revolutionising elderly care and satellites mapping climate change with centimetre-level precision. Japan is actively shaping the future through innovation by embracing the modern needs of today.

As India and Japan celebrate the 40th anniversary of their science and technology cooperation, designating the year as the “India-Japan Year of Science, Technology and Innovation Exchange”, it is noteworthy that India, too, is making significant strides in the field. ⁽⁶⁾ With a robust network of research institutions, a burgeoning startup ecosystem, and a government committed to innovation, India is positioning itself as a global leader in various scientific domains.

The country’s advancements in space exploration, biotechnology, and information technology reflect its growing capabilities and ambitions. This milestone highlights the deepening ties between the two nations, focusing on collaborative research, technological development, and innovation. Joint initiatives, such as the India-Japan Science & Technology Seminar and partnerships in space technology, exemplify the shared commitment to addressing global challenges through scientific collaboration.

As both countries look to the future, one no doubt increasingly powered by technology, their partnership serves as a shining example of international cooperation in the pursuit of knowledge and innovation.