Japan identified dozens of products and technologies as priority targets for investment, advancing Prime Minister Sanae Takaichi’s flagship economic strategy to channel public and private capital into 17 strategic sectors.

The government selected 61 items for support, according to materials released after a growth strategy panel meeting on Tuesday. The list includes 27 technologies already under early stage review, such as physical artificial intelligence systems, regenerative medicine, quantum computing and marine drones.

The selection reflects economic security considerations and export potential, the document indicated. Officials plan to present spending estimates and timelines for each item by summer as a part of an investment roadmap.

The investment plan is a pillar of Takaichi’s economic strategy that aims to boost the nation’s growth potential by offering public support to cutting-edge industries. While figures earlier in the day showed stronger-than-expected capital spending by businesses in the last quarter of 2025, the prime minister has repeatedly bemoaned the low level of long-term investment in growth areas.

Takaichi’s government last year identified 17 sectors as priorities for public-private funding, including shipbuilding, defense and critical minerals. After emerging from last month’s election with an unprecedented landslide triumph, Takaichi pledged to compile a comprehensive package for these strategic areas. Steps are expected to include incentives for corporate spending, support for overseas expansion and regulatory changes, though few details have been disclosed.

During Tuesday’s discussion, the government said Japan aims to capture more than 30% of the global AI robotics market by 2040. It is also considering a target to raise sales of domestically produced semiconductors to ¥40 trillion ($254 billion) by that year.

https://www.japantimes.co.jp/business/2026/03/10/japan-investment-targets-ai-quantum-drones/