Japanese SBIR Promotion Program

Japanese SBIR Promotion Program

Funds Japanese small and medium-sized businesses with staged innovation support from concept to advanced development.

The SBIR Promotion Program is METI's designated-subsidy contribution to Japan's inter-ministerial Small Business Innovation Research (SBIR) scheme, an initiative coordinated by the Cabinet Office to accelerate R&D-led startups and the social implementation of their technologies. NEDO (New Energy and Industrial Technology Development Organization) serves as the executing body, publishing specific R&D topic calls on an annual basis. The program has operated since FY2021 with an annual budget of JPY 300 million (FY2025 figure) and covers a cross-sectoral range of technology domains, spanning healthcare, energy, AI, materials, and advanced manufacturing, in two categories: government procurement-need topics (where agencies want innovative technology to upgrade public services) and social-issues topics (where political priorities drive the call themes).

Funding is structured in two sequential phases. Phase 1, the proof-of-concept and feasibility stage, runs for up to one year: under the Once-through type, NEDO covers 100% of costs up to JPY 20 million; under the Linked type (which bridges to a separate ministry programme), 100% up to JPY 15 million. Phase 2, practical-application R&D, runs for up to two years: under Once-through, NEDO covers up to two-thirds of costs to a ceiling of JPY 100 million; under Linked, up to JPY 50 million. Phase 1 awardees pass a Stage-Gate Review before proceeding to Phase 2, and direct Phase 2 calls are occasionally published for specific topics. Only Japanese SMEs — applying individually or as a consortium — are eligible; universities, large enterprises, and non-Japanese entities cannot apply as principal recipients.

Successful applicants frame their proposals around a clearly defined topic from NEDO's annual public call list, demonstrating technical novelty relative to current state of the art (TRL 2–7 range) and a credible path to social implementation. Because topics and deadlines vary by fiscal year and call batch, founders should monitor NEDO's SBIR programme page directly for the specific theme and submission window relevant to their R&D.