For Japan’s IT industry to gain a stronger presence on the global stage, three elements are essential: technological innovation, international standardization, and talent development.

By leveraging its strengths in manufacturing and IoT, and strengthening its focus on R&D and global talent strategy, Japan can build the next generation of global competitiveness.



In this article, we break down what it takes for Japanese IT to truly go global.

The Urgent Reality: Japan’s IT Sector Under Pressure from GAFAM

As of 2025, Japan’s IT industry continues to grow—but from a global competitiveness standpoint, major challenges remain.

While the U.S. and China lead the world in fields like AI and cloud technology, Japan’s presence is often limited to niche areas or specialized hardware. In the global cloud infrastructure market, tech giants like GAFAM dominate, and many Japanese companies rely heavily on their platforms.

Japan has also struggled to produce globally recognized AI products, and there is a significant gap in both research momentum and speed to commercialization.

According to Stanford University (Source: Stanford AI Index), building a balanced global AI ecosystem requires contributions from all countries—including Japan. That insight underscores the need for Japan to shift its strategy toward international impact.

To stay competitive, Japan must move away from an inward-focused, domestic IT strategy and toward a globally minded technological vision.

The Opportunity: R&D and International Standardization as Catalysts for Global Success

To stand out in the global market, Japan must prioritize investment in R&D and active participation in international standardization.

Historically, many Japanese companies have developed technologies primarily for the domestic market—making it difficult to keep pace with global innovation trends.

That said, Japan holds clear strengths. In manufacturing, for instance, companies are increasingly expanding into global markets with unique smart factory solutions powered by IoT and AI.

To further solidify this momentum, Japan must:

• Engage more actively with international standard-setting bodies
• Foster industry-university collaborations to boost globally competitive research
• Leverage government support, such as grants and tax incentives for innovation

These efforts will be crucial in shaping future technologies and ensuring Japan’s place at the global table.

People Are the Core: Developing World-Class IT Talent in Japan

In the global race, technology alone is not enough. Japan also needs IT professionals who can operate across borders.

This includes talent capable of negotiating in English, collaborating across cultures, and adapting to overseas markets. However, such globally minded professionals are still in short supply within Japan.

To address this gap, many companies are:

• Hiring international engineers
• Expanding global training programs
• Actively rotating young talent through overseas assignments
• Encouraging cross-border collaboration via remote international teams

Looking beyond 2025, Japan’s IT revival will depend on a holistic transformation in technology, systems, and human capital.