Japan’s new IP strategy plan calls for companies to invest more in IP and make it core to business strategy; also covers threats and opportunities from AI

Photo by David Edelstein on Unsplash

The Japanese Government has just updated its IP strategy plan, and is now calling for the country’s businesses to boost investment in their IP to build value. The document also covers issues relating to IP security in the AI age, international standardisation relating to IP, data as IP, and support for start-ups. 

The new guidance says companies should make intellectual property a core part of their business strategy, instead of seeing it just as a legal or compliance issue. 

The full text of the Intellectual Property Promotion Plan 2026 (in Japanese) can be found here: https://www.cas.go.jp/jp/seisakukaigi/titeki2/260612/keikaku_all.pdf 

The introduction to the document says*: 

“Investments in IP and intangible assets play a crucial role in achieving a high-value-added economy. The technology and intellectual property held by companies directly contribute to differentiating products/services from competitors and enhancing added value, thereby serving a central role in business value creation.” 

It references the 2025 IP plan, published in June 2025. This set targets for increasing the contribution of intangible assets (including IP) to the market capitalisation of the main Japanese stock market index, the Nikkei 225, to 50% or more by 2035. The 2026 plan says this target has already been reached, with intangibles accounting for 52% of the market capitalisation of companies in the Nikkei 225 Index, a rise of 20 percentage points since 2020. 

But it points out that the intangibles contribution of the market capitalisation of the US S&P 500 index (the 500 biggest companies listed on US stock exchanges) is now over 90%. 

The Intellectual Property Promotion Plan 2026 says Tokyo Stock Exchange changes to its rules on the information disclosed to investors and the Stewardship Code, which highlighted the need for more information on IP and intangible investment and value, were a significant factor in the rise in intangibles over the past five years. 

The plan also reviews AI. While AI will up-end traditional economic and social structures, which may have negative impacts on companies and employment, there may also be benefits for Japan, as an AI boost to creativity should counter the impact of Japan’s shrinking population: “the active utilization of AI presents a decisive opportunity to complement creativity and labour power while updating industrial structures.” 

The latest version of the IP plan also points out the major contribution being made to the Japanese economy by the international success of Japanese media and related cultural exports – often referred to as ‘Cool Japan,’ a term which became popular around the year 2000. ‘Cool Japan’ received a significant boost with the launch of the Japanese Creative Industries Promotion Office in 2010. 

Japanese content contributed ¥6.1 trillion (US $38.33 billion or £28.27 billion) in 2024, while tourist visits to Japan exceeded 40 million in 2025, with spending reaching ¥9.5 trillion (US $59 billion US Dollars, £44 billion). 

The plan also reinforces the Japanese Government’s commitment to use investment and also AI to make the country more innovative, with the target of ranking in the top four countries in WIPO’s Global Innovation Index (GII) by 2035. In 2025, Japan was ranked 12th, one place up on 2024; but the IP plan points out that South Korea was 4th and China 10th. 

*AI has been used to translate the text. AI can make mistakes. This post will be updated if necessary once an official translation is published.