By Zhang Jiaming, Research Team on “Financial Support for Sci-Tech Innovation”, Research Institute of Finance, DRC

Research Report, No.248, 2021 (Total 6313) 2021-9-7

Abstract: Finance is an important means of support for sci-tech innovation. Japan’s policy-based financial system ranks among top countries of the world in its support for sci-tech innovation. On the whole, there are three pillars in Japan’s policy-based financial system for sci-tech innovation: policy-based financial agencies, the credit completion system, and governmental investment foundations. Japan’s policy-based financial agencies not only provide loans, but also value-added services for sci-tech enterprises such as consultancy and communication platform. The credit completion system combines credit guarantee and credit insurance, which effectively leverages the role of credit increase, lowers financial costs of sci-tech companies, and enhances their financial accessibility. Governmental investment foundations bring into play the role of governmental funds in guiding private capital into investments and focus on the support for initial innovation activities. Japan’s experience in supporting sci-tech innovation with the policy-based financial system is worthy of reference for China in its effort to encourage sci-tech self-reliance and self-growth through policy-based finance.

Keywords: sci-tech innovation, policy-based finance, Japan’s experience