Article 1The purpose of this Act is to maintain and strengthen the international competitiveness of Japanese industries, amid the dramatic changes in the industrial structure and conditions for international competition due to the rapid progress in technological innovation in recent years in the field of information technology, in view of the fact that there is a risk of significant deterioration of the international competitiveness of Japanese industries unless measures are quickly taken to achieve productivity improvement of Japanese industries in a short period by carrying out, in an intensive and integrated manner, initiatives for productivity improvement in a short period through innovative business activities such as promoting the testing of new technology, etc. and promoting innovative use of data for industrial activities, and thereby contributing to the enhancement of the lives of the people and the sound development of the national economy.

Article 2(1)The term "innovative business activity" as used in this Act means a business activity which belongs to a business field for which Japan's international competitiveness should be quickly strengthened, and which is conducted by using a technology or technique that is innovative in the business field.

(2)The term "testing of new technology, etc." as used in this Act means what falls under both of the following items:

(3)The term "special measures on regulations" as used in this Act means measures concerning special provisions of an Act separately provided for by law with respect to regulations prescribed by law, or measures concerning special provisions of a Cabinet Order or an order of the competent ministry (hereinafter referred to as "Cabinet Order, etc." in this paragraph) separately provided for by Cabinet Order, etc. with respect to regulations prescribed by Cabinet Order, etc., which apply to the testing of new technology, etc. implemented in accordance with the approved plan for the testing of new technology, etc. prescribed in Article 13, paragraph (2).

(4)The term "innovative use of data for industrial activities" as used in this Act means an innovative business activity which collects information (excluding information that is likely to damage national security, hinder the maintenance of public order, or be an obstacle to the protection of public safety; hereinafter referred to as "data") contained in electronic or magnetic records (meaning records created in electronic form, magnetic form, or any other form that cannot be perceived by the human senses) by using an innovative technology or technique, and uses such information in industrial activities.

Article 3In view of the fact that, amid the dramatic changes in the industrial structure and conditions for international competition due to the rapid progress in technological innovation in recent years in the field of information technology, there is a risk of significant deterioration of the international competitiveness of Japanese industries unless measures are quickly taken to achieve productivity improvement of Japanese industries in a short period, the productivity improvement through innovative business activities must be carried out in principle through enterprises' voluntary and proactive efforts made to improve productivity in a short period through innovative business activities such as the testing of new technology, etc., innovative use of data for industrial activities, and research and development and securing of human resources that contribute to innovative business activities, while promptly and appropriately promoting management reforms, with the State developing necessary business environments by means such as implementing support measures for enterprises and reviewing regulations, intensively within the plan implementation period (meaning the plan implementation period prescribed in Article 8, paragraph (1); the same applies in the following Article), for achieving productivity improvement in a short period.

Article 4(1)The State is responsible for promoting initiatives for productivity improvement in a short period through innovative business activities in an intensive and integrated manner within the plan implementation period and to implement them promptly and without fail, pursuant to the basic principles prescribed in the preceding Article.

(2)In promoting initiatives for productivity improvement in a short period through innovative business activities, the State is to develop necessary business environments by means such as implementing support measures for enterprises and reviewing regulations intensively within the plan implementation period, in order for enterprises make voluntary and proactive efforts to improve productivity in a short period through innovative business activities, such as the testing of new technology, etc., innovative use of data for industrial activities, and research and development and securing of human resources that contribute to innovative business activities.

Article 5Each enterprise must, pursuant to the basic principles prescribed in Article 3, endeavor to make voluntary and proactive efforts to improve productivity in a short period through innovative business activities, such as the testing of new technology, etc., innovative use of data for industrial activities, research and development and securing of human resources that contribute to innovative business activities, while promptly and appropriately promoting management reforms in light of the environments surrounding its business, such as the supply and demand trends of goods or services or the state of competition among enterprises in the relevant field of business to which the enterprise belongs.

Article 36(1)The Minister of Economy, Trade and Industry is to establish guidelines for promoting installation of cutting-edge equipment, etc. (meaning facilities, equipment, apparatus, devices, or programs (meaning the programs prescribed in Article 2, paragraph (2) of the Act on Facilitation of Information Processing (Act No. 90 of 1970)) which use cutting-edge technology such as technology that enables higher data processing throughput as compared to the conventional throughput, and which are specified by Order of the Ministry of Economy, Trade and Industry as those whose prompt installation is indispensable for productivity improvement of small and medium-sized enterprises; the same applies hereinafter) in small and medium-sized enterprises (meaning the small and medium-sized enterprises prescribed in Article 2, paragraph (1) of the Act for Strengthening the Management of SMEs, etc. (Act No. 18 of 1999); the same applies hereinafter) (the guidelines are hereinafter referred to as the "installation promotion guidelines").

(2)The installation promotion guidelines are to specify the following:

(3)The Minister of Economy, Trade and Industry is to make changes to the installation promotion guidelines when any need arises due to changes in the situation such as fluctuations in the state of the economy.

(4)When the Minister of Economy, Trade and Industry intends to establish the installation promotion guidelines or make changes thereto, the minister is to consult with the head of the relevant administrative organ in advance.

(5)When the Minister of Economy, Trade and Industry has established the installation promotion guidelines or has made changes thereto, the minister is to make public without delay, the established or changed installation promotion guidelines.

Article 37(1)A municipality (including a special ward; the same applies hereinafter) may prepare a basic plan for promotion of the installation of cutting-edge equipment, etc. (hereinafter referred to as a "basic plan to promote installation") based on the installation promotion guidelines, and consult with and seek the consent of the Minister of Economy, Trade and Industry pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.

(2)The basic plan to promote installation is to specify the following:

(3)If the basic plan to promote installation falls under all of the following items, the Minister of Economy, Trade and Industry is to give a consent thereto:

(4)When a basic plan to promote installation has received the consent referred to in the preceding paragraph, the municipality must make the plan public without delay.

Article 38(1)When a municipality intends to make changes to a basic plan to promote installation which has received the consent referred to in paragraph (3) of the preceding Article, the municipality must consult with and obtain the consent of the Minister of Economy, Trade and Industry pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.

(2)If the Minister of Economy, Trade and Industry finds that a municipality is not promoting installation of cutting-edge equipment, etc. in accordance with the basic plan to promote installation that has received the consent referred to in paragraph (3) of the preceding Article (if a consent has been given for changes under the preceding paragraph, the plan after the change; hereinafter referred to as a "consented basic plan to promote installation"), the minister may rescind the consent.

(3)If the Minister of Economy, Trade and Industry finds that a consented basic plan to promote installation no longer falls under any one of the items of paragraph (3) of the preceding Article, the minister may direct the municipality that has prepared the consented basic plan to promote installation to make changes to the consented basic plan to promote installation or may rescind the consent.

(4)When the Minister of Economy, Trade and Industry has rescinded the consent referred to in paragraph (3) of the preceding Article pursuant to the provisions of the preceding two paragraphs, the minister is to make that fact public.

(5)The provisions of paragraphs (3) and (4) of the preceding Article apply mutatis mutandis to the changes to a basic plan to promote installation referred to in paragraph (1).

Article 39(1)In order to contribute to the preparation of a basic plan to promote installation and achievement of a consented basic plan to promote installation by a municipality, the State is to endeavor to collect, organize, analyze, and provide information on the local economic trends and necessary information for the municipality to promote installation of cutting-edge equipment, etc., and to provide means for enabling collection, organization, and analysis of those information.

(2)The State is to give necessary advice to a municipality to which a consented basic plan to promote installation pertains concerning the smooth and reliable implementation of the consented basic plan to promote installation.

Article 40(1)A small and medium-sized enterprise that intends to implement installation of cutting-edge equipment, etc. based on a consented basic plan to promote installation (hereinafter referred to as "installation of cutting-edge equipment, etc.") may prepare a plan for the installation of cutting-edge equipment, etc. to be implemented (hereinafter referred to as an "installation plan for cutting-edge equipment, etc." in this Article and the following Article), and submit it to the specified municipality (meaning a municipality that has prepared a consented basic plan to promote installation; the same applies hereinafter) that has jurisdiction over the location of the cutting-edge equipment, etc. to be installed to seek approval therefor, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.

(2)When two or more small and medium-sized enterprises intend to jointly implement installation of cutting-edge equipment, etc., the two or more small and medium-sized enterprises may jointly prepare an installation plan for cutting-edge equipment, etc. to seek the approval referred to in the preceding paragraph.

(3)An installation plan for cutting-edge equipment, etc. must contain the following:

(4)When a specified municipality has received an application for the approval referred to in paragraph (1) and finds the installation plan for cutting-edge equipment, etc. to conform to both of the following items, the municipality is to approve the plan:

(5)If a specified municipality has granted the approval referred to in paragraph (1), the municipality is to notify the Minister of Economy, Trade and Industry of that fact without delay.

Article 41(1)When a small and medium-sized enterprise that has obtained the approval referred to in paragraph (1) of the preceding Article (hereinafter referred to as an "approved enterprise installing cutting-edge equipment, etc.") intends to make changes to the installation plan for cutting-edge equipment, etc. to which the approval pertains, the enterprise must seek the approval of the specified municipality that has granted the approval, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.

(2)If a specified municipality finds that an approved enterprise installing cutting-edge equipment, etc. is not implementing installation of cutting-edge equipment, etc. in accordance with the installation plan for cutting-edge equipment, etc. to which the approval pertains (when an approval has been granted for changes under the preceding paragraph, the plan after the change; hereinafter referred to as the "approved installation plan for cutting-edge equipment, etc."), the municipality may rescind the approval.

(3)If a specified municipality finds that an approved installation plan for cutting-edge equipment, etc. no longer conforms to either of the items of paragraph (4) of the preceding Article, the municipality may rescind the approval.

(4)When a specified municipality has rescinded the approval referred to in paragraph (1) of the preceding Article pursuant to the provisions of the preceding two paragraphs, the municipality is to notify the Minister of Economy, Trade and Industry of that fact.

(5)The provisions of paragraphs (4) and (5) of the preceding Article apply mutatis mutandis to the approval referred to in paragraph (1).

Article 42(1)Regarding the insurance relationships of ordinary insurance, unsecured insurance, or special small business insurance that pertain to a small and medium-sized enterprise which has received a guarantee related to installation of cutting-edge equipment, etc. (meaning a guarantee of obligations as prescribed in Article 3, paragraph (1), Article 3-2, paragraph (1), or Article 3-3, paragraph (1) of the Small and Medium-sized Enterprise Credit Insurance Act that pertains to funds necessary for installation of cutting-edge equipment, etc. to be implemented in accordance with an approved installation plan for cutting-edge equipment, etc.; hereinafter the same applies in this Article), with respect to the application of the provisions of the same Act set forth in the left-hand column of the following table, the phrases set forth in the middle column of the same table that are used in these provisions are deemed to be replaced with the phrases set forth in the right-hand column of the same table.

(2)With respect to the application of the provisions of Article 3, paragraph (2) and Article 5 of the Small and Medium-sized Enterprise Credit Insurance Act pertaining to the insurance relationships of ordinary insurance that pertain to a guarantee related to installation of cutting-edge equipment, etc., the phrase "70 percent" in Article 3, paragraph (2) of the same Act and the phrase "70 percent (or 80 percent for unsecured insurance, special small business insurance, current assets insurance, pollution prevention insurance, energy conservation insurance, overseas investment-related insurance, new business development insurance, corporate rehabilitation insurance, and specific corporate bond insurance)" in Article 5 of the same Act are deemed to be replaced with "80 percent."

(3)The amount of insurance premiums relating to the insurance relationships of ordinary insurance, unsecured insurance, or special small business insurance that pertain to a guarantee related to installation of cutting-edge equipment, etc. is to be the amount obtained by multiplying the insurance amount by a rate specified by Cabinet Order that falls within two percent per annum, notwithstanding the provisions of Article 4 of the Small and Medium-Sized Enterprise Credit Insurance Act.

Article 43The State is to endeavor to secure necessary funds for an approved implementer of the testing of new technology, etc., approved enterprise implementing innovative use of data for industrial activities, or approved enterprise installing cutting-edge equipment, etc. to smoothly implement an approved plan for the testing of new technology, etc., approved plan for innovative use of data for industrial activities, or approved installation plan for cutting-edge equipment, etc. in a short period.

Article 44In order to ensure that enterprises make flexible and accurate business judgments for making active efforts to improve productivity in a short period through innovative business activities, the State is to endeavor to take necessary measures for promoting management reforms of enterprises, such as building a framework for effectively securing transparency and objectivity in enterprises' decision-making process, intensively within the plan implementation period.

Article 45In order to promote innovative business activities, the State is to endeavor to develop business environments necessary for promoting research and development and smoothly implementing the results thereof into practice, intensively within the plan implementation period.

Article 46Given that human resources with diverse and advanced abilities and experience are important actors of innovative business activities in Japanese industries, the State is to endeavor to implement necessary initiatives intensively within the plan implementation period for facilitating enterprises to secure human resources, while closely coordinating and cooperating with universities, colleges of technology, inter-university research institutes, and enterprises.

Article 47The State is to endeavor to ensure that social capital, such as telecommunication systems that contribute to promotion of innovative business activities, including innovative use of data for industrial activities, is developed intensively within the plan implementation period.

Article 48The State is to give consideration so that investments in efforts toward sustainable development of the economy and society, such as environmental conservation and rational use of energy, which contribute to promotion of innovative business activities are encouraged within the plan implementation period.

Article 49Since productivity improvement of small and medium-sized enterprise is indispensable for improving the productivity of Japanese industries, the State, local governments, and the Organization for Small & Medium Enterprises and Regional Innovation are to endeavor to comprehensively promote provision of necessary advice, training, or information concerning methods of management or technology as well as other necessary initiatives for small and medium-sized enterprises that intend to implement the testing of new technology, etc., innovative business activity such as innovative use of data for industrial activities, or installation of cutting-edge equipment, etc.

Article 50(1)The competent minister may request reports from approved implementers of the testing of new technology, etc. or approved enterprises implementing innovative use of data for industrial activities with respect to the implementation state of an approved plan for the testing of new technology, etc. or approved plan for innovative use of data for industrial activities.

(2)The Minister of Economy, Trade and Industry may request reports from specified municipalities with respect to the implementation state of a consented basic plan to promote installation.

(3)The mayor of a specified municipality may request reports from approved enterprises installing cutting-edge equipment, etc. with respect to the implementation state of an approved installation plan for cutting-edge equipment, etc.

Article 51When the relevant administrative organs of the State promote initiatives for promoting innovative business activities, they are to make necessary cooperation with each other in order to achieve coordination with related initiatives, such as initiatives for strengthening the competitiveness of Japanese industries, initiatives for revising regulations, initiatives for promoting smooth distribution of information, and initiatives for comprehensively and effectively promoting regional revitalization.

Article 52(1)The competent ministers under this Act are the heads of administrative organs (if the administrative organ is an organ based on a council system, the administrative organ; hereinafter the same applies in this paragraph) specified in the following items for the respective categories of the matters set forth in those items:

(2)An order of the competent ministry under this Act is an order issued by the competent minister.

(3)Notwithstanding the provisions of the preceding paragraph, the order of the competent ministry referred to in Article 2, paragraph (3), Article 11, paragraph (3), item (vii), and Article 15 is a Cabinet Secretariat Order (including a public notice), Cabinet Office Order (including a public notice), or Ministerial Order (including a public notice) of the Cabinet Secretariat, Cabinet Office, or the ministry with jurisdiction over Acts and orders based on Acts (excluding Rules of the National Personnel Authority, Rules of the Fair Trade Commission, Rules of the National Public Safety Commission, Rules of the Personal Information Protection Commission, Rules of the Environmental Disputes Coordination Commission, Rules of the Public Security Examination Commission, Rules of the Central Labor Relations Commission, Rules of the Japan Transport Safety Board, and Rules of the Nuclear Regulation Authority) that provide for regulations; provided, however, that with respect to regulations under the jurisdiction of the National Personnel Authority, the Fair Trade Commission, the National Public Safety Commission, the Personal Information Protection Commission, the Environmental Disputes Coordination Commission, the Public Security Examination Commission, the Central Labor Relations Commission, the Japan Transport Safety Board, or the Nuclear Regulation Authority, the order of the competent ministry is Rules of the National Personnel Authority, Rules of the Fair Trade Commission, Rules of the National Public Safety Commission, Rules of the Personal Information Protection Commission, Rules of the Environmental Disputes Coordination Commission, Rules of the Public Security Examination Commission, Rules of the Central Labor Relations Commission, Rules of the Japan Transport Safety Board, or Rules of the Nuclear Regulation Authority, respectively.

Article 53The authority of the Minister of Economy, Trade and Industry and the competent minister under this Act may be delegated to the head of a local branch or department, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry with respect to the authority of the Minister of Economy, Trade and Industry, and pursuant to the provisions of order of the competent ministry with respect to the authority of the competent minister.

Article 54A person who has violated the provisions of Article 28, paragraph (5) is punished by imprisonment for not more than one year or a fine of not more than 500,000 yen.

Article 55If falling under any of the following items, the person who has committed the violation is punished by a fine of not more than 300,000 yen:

Article 56If the representative of a corporation or an agent, employee, or any other worker of a corporation or an individual has committed the violation referred to in the preceding Article in connection with the business of the corporation or individual, in addition to the offender being subject to punishment, the corporation or individual is subject to the punishment referred to in the same Article.