In this study, we will collect long-term data from FY2001 to FY2021 and empirically analyze the relationship between Japanese companies’ R&D investment, capital investment, and profitability. The results of the analysis of R&D investment are significantly positive in FY2000 and FY2001, but significantly negative after that. Furthermore, the results of analyzing the capital investment ratio were significantly positive until FY2008. After that, it became significantly negative. However, there was a significant positive increase in FY2019 and FY2021. However, due to the low significance level, caution should be taken in interpretation.

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