Minerva Policy Report: IT Services in Japan’s Public Sector-Pathways for European Engagement

"An analysis of Japan’s public IT services landscape, digital transformation initiatives, and potential avenues for collaboration and business development with European enterprises"

Japan is at a transformative stage in its digital trajectory. Public sector digital innovation emerges to be a strategic priority under its national Society 5.0 initiative. This vision promotes a human-centric society powered by technologies such as AI, IoT and data platforms. In parallel, the European Union (EU) is advancing a vibrant digital agenda focused on digital sovereignty, trust, and innovation. Together, these developments are creating fertile ground for deeper EU-Japan collaboration, especially in the field of public sector IT services. This offers companies and Small and Medium-sized Enterprises (SMEs) from both sides good opportunities to invest.

Japan’s tech-driven digital transformation increasingly aligns with European values and policy frameworks. At the international policy level, both sides have built a coherent foundation through a series of agreements. These include the EU-Japan Economic Partnership Agreement (EPA), the Mutual Adequacy Decision on data protection, and the 2022 Digital Partnership. Together, these instruments have reduced trade and regulatory friction. They have facilitated secure data flows and technical interoperability, strengthening digital cooperation.

The report examines how this convergence opens new opportunities for European companies and SMEs in Japan. The IT Public Sector Market in Japan has been quite challenging to penetrate by foreign companies. This is changing due to several reasons that this report will dive into.

Publication date: December 2025

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