This article describes several aspects concerning the R&D planning for new businesses and new products by Mitsubishi Electric Corporation. The R&D organization of Mitsubishi Electric Corporation consists of two layers, one comprising thirteen R&D laboratories in the Corporate R&D Headquarters, and the other gathering a number of R&D units set up within the factories of the business groups. The R&D expenditures are distributed regardless of the company's sales/profit ratio. Two fifths of the R&D budget is assigned to the corporate laboatories and the rest to the R&D units in the factories. The criteria for allocating the R&D funds are described. Further, the article describes the fields of research the company is engaged in, the management of the R&D projects, and the decision-making process for selecting the R&D themes. Finally, the article discloses the technologies that Mitsubishi Electric Corporation considers will become the sources of major future business and products.