This article analyzes various aspects of the introduction and use of innovative technologies in Japanese industry, with an emphasis on green transformation and sustainable development. The authors consider the influence of Japan’s strong innovation base and technological potential on the development of green technologies, covering various sectors of the economy. The main focus is on government policies aimed at accelerating the introduction of environmentally friendly technologies, as well as the role of private capital in this process. We discuss the key factors contributing to the transformation of Japanese industry, including demographic changes, declining productivity and international competitiveness. The article emphasizes the importance of industrial agglomeration and cooperation in enhancing competitiveness. The study is of interest to researchers and practitioners working on sustainable development and industrial policy.