Japan NEDO

Japan NEDO (New Energy and Industrial Technology Development Organization) is Japan's largest public R&D management organization, providing comprehensive support for deep tech startups and innovative technology development. NEDO's Deep-Tech Startups Support Program offers up to ¥3 billion (approximately $20M USD) across three phases from seed to mass production demonstration.

The flagship program runs from FY2023-2032 with a total budget of ¥93 billion for DTSU and additional ¥30 billion annually for GX (Green Transformation) programs. NEDO also coordinates the Globalstars international co-funding scheme with 15+ partner countries including US, Canada, European nations, Singapore, South Korea, and Israel.

For ZHC builders, NEDO provides exceptional opportunities for deep tech requiring long-term R&D, substantial capital, and Japanese market entry. Programs cover quantum, AI, robotics, semiconductors, electronics, energy, biotechnology, new materials, medical devices, and aerospace technologies. International joint research programs enable global partnerships while maintaining Japanese operations.

Key Programs:

• Deep-Tech Startups Support (DTSU) - Up to ¥3B across STS, PCA, DMP phases
• GX Green Transformation - ¥30B annually for sustainability tech
• International Joint R&D - Co-funding with 15+ countries, up to ¥100M per project
• SBIR Promotion Program - POC and FS support, Phase 1 & 2 funding
• Commissioned Research - Direct government contracts for priority tech

Deep-Tech Startups Support Program

Three Phases:

Phase 1: STS (Seed To Startup)

• Duration: Up to 4 years per phase, 6 years total across phases
• Funding: ¥300-500M ($2-3.5M USD)
• Subsidy rate: 2/3 of eligible expenses
• Stage: Research, prototype development, hypothesis testing
• Requirements: 1/3 matching from VCs/CVCs/operating companies
• Goal: Product/service solving specific customer problems

Phase 2: PCA (Product Commercialization Acceleration)

• Funding: ¥500M-1B ($3.5-7M USD)
• Subsidy rate: 2/3 of eligible expenses
• Stage: Revenue generation, initial and mainstream markets
• Requirements: VC/CVC shareholders required
• Goal: Sustainable revenue model, multiple market segments

Phase 3: DMP (Demonstration of Mass Production)

• Funding: Up to ¥2.5B ($17M USD)
• Subsidy rate: 2/3 or 1/2 of eligible expenses
• Stage: Mass production system, commercial scaling
• Requirements: VC/CVC shareholders, MOU with commercialization partners
• Goal: Ready for commercial production, sustainable business model

International Joint R&D (Globalstars)

Partner Countries (15): Canada, France, Luxembourg, Belgium, Denmark, Norway, Spain, Sweden, Austria, South Korea, Lithuania, Singapore, South Africa, Israel, United Kingdom

Eligibility:

• Unlisted Japanese SMEs with main R&D base in Japan
• Principal investigators must be Japan residents
• International joint research project with partner country business
• Project duration: 2-3 years
• Maximum subsidy: ¥100M ($700K USD)
• Subsidy rate: 2/3 of total project cost

Target Technologies: Quantum, AI, robotics, semiconductors, electronics, energy and environment, biotechnology, new materials, medical devices, aerospace, mining, industrial technologies

Excluded: Nuclear power, drug discovery (development/regenerative medicine)

SBIR Promotion Program

Phase 1 (POC/FS):

• Duration: Within 1 year
• Type: Fixed-amount grant (100% NEDO covered)
• Maximum: ¥20M once-through, ¥15M linked type

Phase 2 (Practical Application):

• Duration: Within 2 years
• Subsidy rate: 2/3 or less
• Maximum: ¥100M once-through, ¥50M linked type

ZHC-Specific Fit

✅ Excellent for:

• Deep tech requiring 4-6 year development cycles
• Capital-intensive hardware and advanced materials
• Quantum, AI, robotics, semiconductor innovations
• Green transformation and energy technologies
• Japanese market entry with technology transfer
• International collaborations (Globalstars countries)
• Industrial AI and automation
• Medical devices and biotech (excluding drugs)

❌ Poor fit if:

• No Japanese presence or partnership path
• Software-only without hardware component
• Consumer apps without deep tech
• Nuclear or pharmaceutical development
• Short development cycles (< 2 years)
• Outside priority technology areas

Deep-Tech Startups Application Process

Timeline:

• Public recruitment: FY2023-FY2027 (5 years)
• Application cycles: Annual calls
• Evaluation: 2-3 months
• Stage-Gate reviews: Between phases for continuation

Application Steps:

1. Select appropriate phase - STS, PCA, or DMP based on current stage
2. Secure investor commitment - VCs/CVCs must commit 1/3+ matching funds
3. Prepare technical proposal - Detailed R&D plan, commercialization strategy
4. Submit business plan - Financial projections, market analysis, team profiles
5. Pitch presentation - Technical and commercial evaluation
6. Stage-Gate reviews - Milestone-based progression to next phase

Stage-Gate Review Process:

• Projects can continue in same phase or advance to next phase
• Maximum 4 years per phase, 6 years total across multiple phases
• Approval required to access next phase funding
• Based on technical progress, market validation, team performance

International Joint R&D (Globalstars) Process

Key Dates (2025 Call):

• Call opening: October 14, 2025
• Application deadline: January 21, 2026
• National funding procedures: April 27, 2026
• Project start: July 1, 2026 (expected)

Application Requirements:

1. Find international partner - Business operator from partner country
2. Develop joint proposal - Collaborative R&D with clear roles
3. Submit to both agencies - NEDO in Japan + partner country agency
4. Co-funding evaluation - Both agencies evaluate independently
5. Joint approval - Both sides must approve for funding
6. Consortium agreement - Required before project start

Consortium Requirements:

• Minimum 2 independent entities (Japan + partner country)
• No single entity/country > 70% of project budget
• Project duration: 12-36 months
• Civilian purpose only
• Commercial goal required

SBIR Program Process

Once-Through Type:

• METI/NEDO manages both Phase 1 and Phase 2
• Seamless progression between phases
• Focus on technology commercialization

Linked Type:

• METI/NEDO handles early phases
• Other ministries provide subsequent support
• Connects to broader government procurement

Application Timeline:

• Calls announced: Quarterly or biannually
• Evaluation: 1-2 months
• Stage-Gate review: Between phases
• Results published on NEDO website

Funding Structure

Phase	Duration	Amount	Match Required	Rate
STS	4 years	¥300-500M	1/3 VC/CVC	2/3
PCA	4 years	¥500M-1B	1/3 VC/CVC	2/3
DMP	4 years	¥2.5B	1/3-1/2 investment/loan	1/2-2/3
Globalstars	2-3 years	¥100M	Partner funding	2/3
SBIR P1	1 year	¥15-20M	None	100%
SBIR P2	2 years	¥50-100M	Project dependent	2/3

Key Requirements

For All Programs:

• Japanese legal entity (K.K. or similar)
• Main R&D base in Japan
• Principal investigator resident in Japan
• Detailed technical and business plans
• Milestone-based reporting

Investment Requirements (DTSU):

• STS/PCA: Total investment ≥ 1/3 of subsidy from VCs/CVCs/operating companies
• Largest shareholder must be VC or CVC
• Investment timing: Within specified period around application
• Convertible securities accepted

DMP Additional:

• MOU with commercialization partner required
• Mass production demonstration plan
• If loan ratio ≥ 1/2, subsidy rate reduced to 1/2

NEDO Main Contacts

• NEDO English Website
• Funding Programs List
• Email: dt.cofund@ml.nedo.go.jp (Deep-Tech Startups)
• Email: sbir_pfg@nedo.go.jp (SBIR Program)

Deep-Tech Startups Support

• DTSU Program Overview
• Startup Support Department
• Tokyo office: +81-44-520-5171

International Joint R&D (Globalstars)

• Globalstars with Japan Call
• NEDO International Projects
• Application deadline: January 21, 2026

SBIR Promotion Program

• SBIR Programme Details
• Cabinet Office (SBIR coordination)
• Inter-ministerial initiative

Support Resources

• Brochures and Publications
• International Cooperation
• Adopted Projects List (see selection lists)

Partner Organizations

• Japan External Trade Organization (JETRO)
• Japanese universities and research institutes
• Industrial technology research institutes
• Regional innovation centers