2. Promotion of Business Innovation and Start-Ups Among SMEs

(1) Promotion of Business Innovation

"Business Innovation" means to seek substantive managerial improvements through the development and manufacture of new products, the development and provision of new services, the introduction of new methods of production and sales, introduction of new methods of providing services, and implementation of other new business activities.

- Support for business innovation of SMEs under the Law on Supporting Business Innovation of Small and Medium Enterprises

In order to support SMEs in carrying out business innovation, the State shall take measures such as providing low-interest loans and special tax reductions to SMEs that conduct business innovation, including development or manufacture of new products, in accordance with a "business innovation plan," which is approved by the central government, or the prefectural governor under the Law on Supporting Business Innovation of Small and Medium Enterprises.

(2) Promotion of Start-Ups

In order to promote start-ups, the State shall endeavor to increase national interest in and understanding of the significance and necessity of start-ups, as well as to take necessary measures such as the provision of information and enhancement of training concerning start-ups and of the smooth fund supply needed for start-ups.

(3) Promotion of Creative Business Activities

"Creative Business Activity" means to make use of remarkably novel technology or original business management methods among business activities subject to business innovation and start-ups, that is, the so-called business activities of venture companies.

- Support based on the Temporary Law concerning Measures for the Promotion of the Creative Business Activities of Small and Medium Enterprises

In order to support SMEs that plan to enter new business fields through start-ups, research and development, and commercialization, the State shall take steps to provide subsidies, low-interest loans, and special tax reductions for SMEs that conduct business in accordance with a "business plan for research and development, etc.," which is approved by the prefectural governor under the Temporary Law concerning Measures for the Promotion of the Creative Business Activities of Small and Medium Enterprises.

- Support based on the Law for Facilitating the Creation of New Business

-- Support for technological development based on the Japanese-Style SBIR (Small Business Innovation Research) system

In order to activate SMEs with technology development capability and support business activities with originality, relevant ministries and agencies collaborate to grant subsidies and spend outsourcing expenses centering on SMEs, for development of new technologies that lead to the creation of new businesses, and take special measures such as expansion of the scope covered by the credit guarantee system to consistently support the commercialization of new businesses.

- Subsidies for SME creative technological development (a project to assist research and development of creation technology)

With the aim of promotion of research and development by SMEs, creation of high value-added products by SMEs, facilitation of SMEs' entrance into new fields, etc., the State shall grant subsidies for part of the cost for raw materials, machinery, and equipment, needed for the development of new products and technologies by SMEs.

- Support for technological development by public industrial technology research institutes and the Japan Small and Medium Enterprise Corporation (JASMEC), etc.

-- Support for technology development by JASMEC (a project to promote technical innovation to address issues)

By presenting technical development issues to small and medium venture companies which respond to economic and social needs and publicly collecting their solutions in collaboration with relevant ministries and agencies, JASMEC commissions feasibility study (F/S) and research and development (R&D) for outstanding proposals.

-- Technical development by public industrial technology research institutes (a project to promote collaboration among industry, academia, and government for technical development by SMEs)

In order to promote activation of SMEs and creation of new businesses and to solve technical issues with SMEs that support local manufacturing industries, the State shall promote joint development of technology by industry, academia, and government centering around public industrial technology research institutes.

-- Provision of information concerning technology (techno-knowledge network project)

In order to address various problems with SMEs, the State shall promote collaboration among researcher at public industrial technology research institutes, general industrial technology institutes, universities, etc. and provide timely technological information that meets the needs of SMEs by creating a database of the knowledge and experience of such researcher.