On November 25, news emerged that Japan is set to designate six technology sectors — encompassing artificial intelligence (AI), nuclear fusion, and biotechnology — as "national strategic technologies." The country will accord priority to these areas by providing research funding and tax incentives, aiming to bolster sectors vital for economic growth and to draw in private investment. At present, Japan is embroiled in fierce global competition across these fields.

The designated strategic technologies are anticipated to include artificial intelligence and sophisticated robotics, quantum technology, semiconductors and telecommunications, biotechnology and healthcare, nuclear fusion, as well as space exploration. Supportive measures may encompass broadening the scope of R&D tax deduction benefits, with more generous deduction rates being offered for partnerships with institutions boasting robust research capabilities. The Japanese government has outlined plans to amend the tax law for the 2026 fiscal year, which commences in April of the following year.