In July 2011, METI compiled the Basic Policy for Reconstruction from the Great East Japan Earthquake, in which it was clearly stated that the government would take measures to subsidize the domestic bases of production and R&D in order to avoid the possible acceleration of hollowing out of domestic industry in the wake of the Earthquake.

Based on the Basic Policy for Reconstruction from the Earthquake, public offering was implemented for subsidizing to (a) the irreplaceable parts and material industry which plays the core role of supply chain; (b) the growing high-value added industry to support future employments; (c) a group of the small and medium-sized industries supporting the business in the fields described above (a) and (b).

In November the third supplementary budget was formulated and the initial public offering started. It was followed by a reviewing committee held 2 times on each 3 fields, and the selection proposal was resolved in January. The selected cases of business were announced to the public on February 3.

A total of 748 cases (358 cases from small and medium-sized enterprises) were applied and 245 cases were selected (81 cases from small and medium-sized enterprises) including Solar Frontier for example. The subsidy amounted to about 202.3 billion yen in total. Screening was carried out by an independent panel, based on the criteria with regard to the effects for employment creation, seriousness of concern about outflow to overseas, contribution to the reinforcement of supply chain as well as the ripple effects to competitiveness, technological power and regional economy.

According to METI, the expected economic effects from now on will include a stimulus towards capital investments which are estimated to be about 6 times (about 1.26 trillion yen) as large as the subsidy amount and also a creation of yearly demand amounting to about 4.9 trillion yen for the supporting industries. In addition, the ministry expects to create an employment of about 2 billion people including the supporting industries.