The key to Japan’s growth strategy: ‘Proactive’ economic security

A Kawasaki Heavy Industries humanoid platform places a garbage bag in a trash can during an exhibition in Tokyo last December. Japan has long led in humanoid robotics and is well positioned to supply the components behind next-generation automation systems. | REUTERS

Oct 26, 2026

In June, Prime Minister Sanae Takaichi unveiled a long-term economic development plan calling for more than ¥370 trillion ($2.3 trillion) in public and private investment in 17 “strategic sectors” through 2041. The plan aims to create a “strong and prosperous investment framework” and earmarks ¥101.6 trillion for artificial intelligence and semiconductors alone, alongside investments in defense, space, shipbuilding and other strategic industries.

The challenge now is to turn that ambition into sustainable growth by strengthening economic security and developing technologies and industries that can compete globally. The 17 sectors span national defense, critical infrastructure, emerging technologies such as quantum computing and fusion, and food, health and energy security. Their breadth reflects the range of capabilities essential to Japan’s security.

The strategy encompasses “crisis-management investment,” including disaster preparedness, as well as economic security. It is also intended to drive economic growth. This dual purpose is both its strength and its challenge.

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