According to the Nikkei, which does not cite sources, Japan will compensate corporations for keeping secret patents with potential military applications under proposed legislation.
According to the financial daily, the patents under consideration in the proposed economic security law will include technology that can aid in the development of nuclear weapons, such as uranium enrichment and cutting-edge innovations like quantum technology.
Prime Minister Fumio Kishida promised last month that the country’s economic security would be a top concern.
According to the Nikkei, his government will compensate enterprises affected by the act with about 20 years of licencing income.
According to the newspaper, the legislation’s structure will be issued as early as next month, with cabinet approval expected in February and implementation beginning in April 2023.
In November, Japanese Prime Minister Fumio Kishida announced the creation of a $88 billion university fund to promote Japan as a science and technology nation as part of a growth strategy to transfer income to the general public.
According to government officials, several of the growth efforts, including as the university fund, would likely be included in the planned stimulus package worth many tens of trillion yen that Kishida has promised to put together around the middle of this month.
“We want to put new capitalism into gear by carrying out what needs to be tackled right away with an economic package,” Kishida said at the end of a ‘new capitalism’ panel meeting.
“To promote Japan as a science and technology nation, we will realise a 10-trillion-yen university fund by this fiscal year-end. We will develop clean energy by backing domestic production of storage batteries and promoting electric vehicles.”
In its recommendations, the panel suggested creating a dedicated fund to support multi-year research and development on digital transformation and green innovation as pillars of Japan’s new growth strategy.
The panel’s ideas for Japan’s growth plan, which were given at its Monday meeting, made no mention of the size of the stimulus or the additional budget needed to support it.
The suggestions will create the framework for Kishida’s economic policy combination of pro-growth policies and former Prime Minister Shinzo Abe’s “Abenomics” stimulus measures, as well as a more direct transfer of wealth from corporations to consumers.
In terms of wealth distribution, the group recommended overhauling the tax system to make it more favourable to businesses, hence assisting in raising employee pay through increased tax credits and other measures.
The suggestions come as Kishida’s government considers a $265 billion economic stimulus programme to alleviate the effects of the COVID-19 outbreak, a plan that would need the issuance of additional bonds, according to Kyodo news.