In 2023, indirect government support through subnational R&D tax incentives in Japan stood at an estimated 3.92 billion Japanese Yens. The forecast for 2024 through 2028 suggests a gradual decline, with values decreasing from 3.89 billion in 2024 to 3.77 billion in 2028. This period marks a consistent annual reduction, with compounded year-on-year variations averaging around -0.7%. Over the next five years, the overall Compound Annual Growth Rate (CAGR) is negative, indicating a slow but steady contraction of government support in this domain.
Future trends to watch for include potential policy adjustments by the Japanese government to reinvigorate subnational R&D efforts or to reevaluate tax incentive strategies. Additionally, monitoring global economic conditions and technological advancements could provide further insights into investment shifts that might influence this fiscal domain.
