Digital investment by small and medium-sized enterprises surged, with the January-June first half reaching a record high. The level was approximately twice that before the COVID-19 pandemic, and momentum for a productivity revolution is building against a backdrop of labor shortages.
Digital investment by small and medium-sized enterprises has surged, reaching a record high for the January-June first half. The scale was approximately twice that before the COVID-19 pandemic.
According to data from the Ministry of Finance, software investment by small and medium-sized enterprises averaged ¥273.8 billion on a half-year basis from 2015 to 2019, but surged after the COVID-19 pandemic. It exceeded ¥500 billion for the first time in 2023. Related trends have also been reported for the latest January-June period in 2026.
Small and medium-sized enterprises, which account for approximately 70% of domestic employment, have long been considered a factor behind the low productivity and stagnation of the Japanese economy. Against a backdrop of severe labor shortages, momentum is building for reform through digital investment.
The promotion of digitalisation among small and medium-sized enterprises is viewed, together with the expansion of software investment, as an effort aimed at improving productivity.