1. Support for Commercialization of Results of Research and Development

  2. Response to IT Revolution

In order to overcome such difficulties and limits and aim for the development of independent and creative SMEs, the State has been providing various types of support as follows: first, active support for self-help efforts of motivated SMEs for start-up, growth, and technical innovation; second, reinforcement of article-making technologies and technical development infrastructure, and promotion of smooth access to and use of management resources such as human resources, technologies, funds and information, which are insufficient in SMEs, and their support measures; third, enhancement of the potential of academia, industry, and government through promotion of collaboration among them and advancement of mutual exchange and education for article-making technologies and innovation; and lastly, holding of training workshops and seminars and improvement of the common infrastructure of SMEs to actively use IT and promote business innovation to cope with the IT revolution, which has been rapidly advancing.

In order to promote the creation of new business and employment, and to vitalize the economy of Japan, new technologies that serve as a core of industry must be generated and technical innovation should be further advanced powerfully.

Accordingly, in order for SMEs to create various types of business as well as employment in response to economic and social needs, the Small and Medium Enterprises Agency provides various types of support such as subsidies for technical research / development and promotion of collaboration among academia, industry, and government for the promotion of technical development activities, creation of value-added products, entry into new markets, and commercialization of new businesses.

(1) Support for commercialization by SMEs

a)Project to subsidize research and development for creative technologies

In order to promote technical research and development by SMEs, create value-added SME products, facilitate SMEs' entry into new markets, and upgrade fundamental technologies, for the development of new products and technologies by SMEs, etc., part of the cost of raw materials, machinery and equipment, and technical guidance for research and development, etc., are subsidized. (Subsidy rate: 1/2)

b)Project to subsidize research and development on creative technology for local revitalization

In order to create value-added local SME products, facilitate SMEs' entry into new markets, and upgrade fundamental technologies, for the development of new products and technologies by SMEs, etc., part of the subsidy by prefectural governments for the cost of raw materials, machinery, apparatus, and technical guidance, which are needed to ascertain commercial feasibility and marketability, and promotion of creative technical research and development, are subsidized. (Subsidy rate: 2/3)

c)Project to promote technical innovation for addressing issues

In order to promote creation of new business and employment, and to vitalize the economy of Japan, new technologies that serve as the core of industry must be generated and technical innovation should be further advanced. Therefore, in collaboration with relevant ministries and agencies, by presenting issues of technical development that respond to economic and social needs of small and medium venture businesses or joint research entities mainly consisting of them and soliciting solutions publicly therefrom, JASMEC entrusts feasibility studies (F/S) and research and development (R&D) to entities that present excellent proposals. Small and medium venture businesses selected for entrustment of F/S projects conduct F/S on technical and commercial feasibility, etc. to verify the feasibility. Then, JASMEC publicly solicits solutions to the issues raised by entities that have conducted F/S, and entrusts R&D to entities that present excellent proposals to promote commercialization efficiently. In addition, the results of research and development are evaluated by experts on technology and investment.

(2) Promotion of collaboration among academia, industry, and government

- Project to promote collaboration of academia, industry, and government for technical development for SMEs

In order to promote activation of SMEs and creation of new businesses and solve technical issues with SMEs that support local article-making, the State shall, in collaboration with academia, industry, and government (mainly public industrial technology research institutes), aim to improve the technical development capability of local SMEs and promote dissemination and advancement of the results of technical development.

(3) Support under the Law for Facilitating the Creation of New Business (Small Business Innovation Research [SBIR])

The Small Business Innovation Research [SBIR] has been established to activate SMEs with technology development capability and support their creative business activities. Specifically, relevant ministries and agencies and special corporations, etc. grant subsidies, entrustment expense fees, etc. (specific subsidies) for technical development by SMEs, etc. and, for consistent support for the commercialization, expand debt guarantee lines and establish special cases that need neither collateral nor a third party's guarantee.

a)Efforts to increase opportunities to spend the national budget for research and development, on SMEs

The State and special corporations (hereinafter the "State, etc.") designate subsidies, outsourcing fees, etc. for technical development for SMEs, etc.as "Specific Subsidies" and endeavor to increase opportunities for the State, etc. to spend their R&D budget on SMEs, etc. (Goal for FY2001: ¥ 18 billion)

b)Support for commercialization of results of R&D using Special Subsidies

The following exceptions are provided to support commercialization by SMEs, etc. that have received Special Subsidies.

- Exception to the Small Business Credit Insurance Law

Exceptional measures are provided for the new business exploitation insurance system such as expansion of debt guarantee lines and establishment of special cases that need neither collateral nor a third party's guarantee.

- Exception to the Small Business Investment Company Limited Law

As an exception to the object of investment by Small and Medium Business Investment and Consultation Companies, in the establishment of a company whose capital exceeds ¥ 300 million, procurement of funds for implementing business activities by a company with the capital of more than ¥ 300 million may be an object of investment.

- Exception to the Law on Subsidy for Facility Introduction Funds for Small-Scale Enterprises

The ratio of lending by lending institutions under the small business facility funds system is expanded to 2/3 from 1/2. (Measure under the Law on Special Measures for Industrial Revitalization for a limited period until the end of FY2002)

- Special loan system of the Japan Finance Corporation for Small Business

The Japan Finance Corporation for Small Business lends funds for facilities and long-term operation to businesses with technology whose research and development have been implemented using Specific Subsidies at a special interest rate.