Tokyo Offers Up to 5 Million Yen Subsidy for Product Improvement Initiatives

Tokyo's New Subsidy Program for SMEs

The Tokyo Metropolitan Government has announced a substantial initiative aimed at enhancing the capabilities of small and medium-sized enterprises (SMEs) in the region. Starting from October 17, 2023, funding applications will be open for the “Product Improvement/Compliance and Certification Support Program.” This program, facilitated through the Tokyo Small and Medium Enterprise Support Center, aims to strengthen the economic viability of local SMEs while invigorating Tokyo's industrial landscape.

What is the Program?

This newly introduced support initiative is designed to assist SMEs in making enhancements to their self-developed prototypes or already marketed products (collectively referred to as “products”). The program provides financial subsidies for expenses related to product improvements that align with domestic and international market demands, as well as costs associated with obtaining necessary certifications (such as CE marking, ISO, and IEC standards).

Key Features of the Subsidy:

1. Maximum Subsidy of 5 Million Yen: Eligible expenses include personnel costs associated with product improvements (involving aspects like user interface enhancements and miniaturization), as well as the cost of certification. For software enhancement processes, up to 3.5 million yen in personnel costs may also be covered.

2. International Standards Support: The program also covers expenses related to international standards compliance such as CE marking and UL licenses, which are crucial for firms looking to expand overseas. Notably, businesses may apply for multiple certifications simultaneously, provided that the target products remain the same.

3. Applications for Certification Alone: Even if a business seeks only to obtain certifications, the program is inclusive. This also applies to organizational management system certifications such as ISO 9001 (Quality Management System) and ISO 27001 (Information Security Management System).

Who Can Apply?

The application process has been divided into three categories, enabling SMEs to choose the option that best fits their objectives:

- Category A - Product Improvement Project: For businesses solely focused on product enhancements to meet market needs.
- Category B - Compliance and Certification Project: For those wishing to obtain certifications without needing to modify their products.
- Category C - Integrated Project: For businesses that seek to improve their products while obtaining necessary certifications simultaneously.

This structured approach allows businesses to tailor their applications according to their specific goals, whether focused on rejuvenating product features or obtaining formal recognitions.

Overview of the Funding Details:

- Maximum Amount: 5 million yen, with a minimum required expenditure of 500,000 yen.
- Funding Rate: Up to 50% of the total eligible costs.
- Eligible Expenses: Includes costs for materials, machinery, outsourced work, expert guidance, application fees for intellectual property rights, direct labor costs, and leasing expenses.

Application Timeline:

The program's funding period varies based on the chosen category. Categories 1 and 2 will have funding available from March 1, 2026, for a maximum of 1 year and 9 months, while Category 3 offers an extended funding duration of 2 years and 9 months. This flexible timeline is designed to accommodate different project needs and developments.

a## Application Procedures

Eligible companies must navigate the application process via the government’s online application system, “J-Grant,” necessitating the prior acquisition of a G Biz ID Prime account. It’s important to note that acquiring this ID can involve delays, so applicants should account for additional preparation time.

For those interested in this opportunity, further details can be referenced through the official website, where comprehensive guidelines and conditions are outlined.

Contact for Inquiries

For any questions or clarifications regarding the application process, businesses can reach out directly to the Tokyo Small and Medium Enterprise Support Center’s subsidy division at 03-3251-7894 or via email at [email protected]. The support team is ready to assist potential applicants in maximizing the benefits of this valuable program.