Hitachi receives greater subsidy for R&D than 5 million small businesses combined

A study shows that the government incomparably favors large manufacturers in providing research and development subsidies. In fiscal 2003, Hitachi Ltd. received 8.7 billion yen from the Economy, Trade, and Industry Ministry. The amount is far greater than the 7.3 billion yen for all 5 million small- and medium-sized enterprises combined.

The revelation was reported in Akahata on May 10 based on a study published by Japanese Communist Party House of Representatives member Shiokawa Tetsuya.

The top three recipients of R&D subsidies, Hitachi, Mitsubishi Heavy Industries, and Toshiba Corp., are vice presidents of the Japan Business Federation (JBF or Nippon Keidanren) which has recently resumed corporate donations to the ruling Liberal Democratic and Komei parties as well as the opposition Democratic Party.

Shiokawa said, "The LDP-Komei Party Cabinet under Prime Minister Koizumi lavishes tax money on projects that are lucrative to large corporations. The cabinet must recognize that Japan's economy can only revive if small- and medium-sized enterprises are supported as the real key players in the national economy that is suffering in the present prolonged economic recession." (end)