The INCJ was established as a temporary (15 years) corporate entity[6] on July 27, 2009; with the prime objective of "boosting the competitiveness of Japanese firms by promoting a philosophy of 'open innovation' and creating next-generation businesses in promising new technologies by providing capital and managerial support, through private-public partnership.

[1] The INCJ was created to make investments aimed at creating an ecosystem of innovation and fostering an “open innovation” model, i.e. “flow of technology and expertise beyond the boundaries of existing organisational structures" — be it start-up companies, medium-sized enterprises or large, established firms.

In September 2018, the INCJ was reorganized with Japan Investment Corporation (JIC) being spun-off as a new separate entity following the enforcement of the amendment to the Act on Strengthening Industrial Competitiveness.

[7] The primary objective is to provide capital and managerial support to boost the competitiveness of Japanese firms and create next-generation businesses in promising new technologies, which contribute to innovative transformation of Japan’s industrial structure.

This funding is used partly as a combination of venture capital and “buyout fund” to provide risk arbitrage to support a growth strategy of small and mid-size companies and to facilitate consolidation among established companies for the purpose of helping them become global leaders, as well as directly invest in new ventures.