Investing in Japan

Hokkaido

The information below is as of June 2011.

• 
• 
• 

• Basic Information
• Regional Profile
• Services for investment in Japan
• Available incentives
• Links to Related Websites

Basic Information

Population*1	5.51 million
Labor force*1	2.66 million
Area*2	83,457 km²
GDP*3	18,359,541 million yen
Major industries	Food products; pulp, paper, and paper products; petroleum and coal products; iron and steel; transport equipment instruments
Developing industries	Automotive-related industries; information and communications-related industries; software industry; biotech-related industries; recycling industry
Offices overseas	Yuzhno-Sakhalinsk, Russian Federation / Seoul, South Korea
Offices in Japan	Tokyo / Osaka City, Osaka Prefecture / Nagoya City, Aichi Prefecture
JETRO office	JETRO Hokkaido

*1 Population Census 2010, Ministry of Internal Affairs and Communications　*2 Area data 2010, Geospatial Information Authority of Japan *3 Prefectural Citizens' Economic Accounts 2008, Cabinet Office

*Ask the local government for the latest data.

Regional Profile

Strength of the region's industries and economy

Hokkaido continues to attract attention as a cluster region for the manufacturing industry. In particular, the recent large-scale capital investment by leading automotive-related companies has motivated related companies to expand into the Hokkaido region, spurring a dramatic expansion in the local concentration of automotive and electronic parts companies.
Also, there has been a steady increase in the number of information and communications-related companies with their sights set on the global market, as represented by the growth of "Sapporo Valley." Furthermore, measures to reduce energy consumption for cooling purposes at data centers, a sector expected to experience significant market expansion in the future are resulting in moves for promotion of Hokkaido as a cluster region for super low-power-consumption type of data centers that take advantage of the island’s snowy and cold climate. Such developments are garnering domestic and international attention. Hokkaido is also becoming the site of one of Japan’s leading biotechnology clusters, due to such factors as the numerous biotech venture companies springing from the region’s universities.

Strength of the region's education/research institutes

With 28 graduate schools, 38 universities, 21 two-year colleges, 5 technical colleges and numerous higher educational institutions, Hokkaido is a major producer of talented human resources. In addition, there are 20 public testing and research institutions which provide support to corporate activities.
The sprawling northern section of Hokkaido University’s campus is home to the university’s research facility, the Creative Research Initiative “Sousei”, the Institute of Low Temperature Science and the Graduate School of Veterinary Medicine; in addition, it is home to the Northern Advancement Center for Science and Technology, a private facility established in accordance with the Law for Facilitating Governmental Research Exchange. Furthermore, publicly-owned land adjacent to the university campus is home to public research and testing facilities, such as the Hokkaido Industrial Research Institute, as well as the Japan Science and Technology Corporation’s JST Innovation Plaza Hokkaido. This area represents a cluster of scientific and technological research and development capability and industry-academia-government collaboration and is known as the “Hokkaido University North Campus and Surrounding Area”. It is an area of steadily accumulating cutting-edge research which is capturing attention as a global trendsetter for collaboration on research and development between industry, academia, and the government.

Strength of the region's industry-government-academia collaboration

Hokkaido’s regional industry cluster planning seeks to create a virtuous circle between the areas of IT and biotech - where innovation is expected - with those local industries, such as the agriculture, forestry and fisheries industry and the food and tourism industries - which represent Hokkaido’s strengths. Towards this end the “Hokkaido Innovation Strategy” and the “Hokkaido Biotechnology Industry Growth Strategy” have been created along with 10 support projects currently underway. Also, the “Innovation COE Program for Future Drug Discovery and Medical Care”, centered on Hokkaido University’s Graduate School of Life Science and Faculty of Advanced Life Science and Graduate School of Medicine, is a creative research initiative involving Shionogi Co., Ltd. and Hitachi, Ltd. which aims to create a fusion of next-generation medicines which utilize protein repair technology with individually tailored medical therapies utilizing optical measurement technology. In May 2008, work on the Shionogi Innovation Center for Drug Discovery - one of the core facilities in this program - was completed. The facility is the first private research facility in Japan to be constructed on the campus of a national university, and it is expected to accelerate the pace of future research.

Strength of the region's infrastructure

Hokkaido offers 13 airports and 43 ports, making it highly accessible to both overseas and domestic locations. Also, in 2005 work started on the Hokkaido shinkansen (bullet train), which is expected to bolster ease of access to the Tokyo metropolitan area.

<Land>

Work is progressing on expressways and other roads within Hokkaido in order to facilitate automobile transportation. Currently there are 811km of roads connecting the main cities in Hokkaido; after work is completed this will increase to 1,825 km. Access from the main distribution points of New Chitose Airport and Tomakomai Port to different cities is well-established.

<Air>

Of the 13 airports in Hokkaido, nine provide access to Tokyo and other major cities. In particular, the New Chitose Airport offers 26 domestic routes and 9 international routes which, combined, service approximately 18,360,000 people a year (2007). Of these routes, the route between New Chitose Airport and Tokyo International Airport services more than 10 million passengers a year, making it one of the world’s busiest air routes.

<Sea>

Hokkaido has 43 sea ports and maintains 10 cargo ship routes with destinations outside of Hokkaido. In addition, the Ishikari Bay New Port, Tomakomai Port and others maintain 12 outgoing cargo ship routes.

<Railway>

In 2005 work began on the Hokkaido shinkansen (bullet train). When it is completed, it is expected to serve as a main transportation line between the Tokyo metropolitan area and Sapporo, going between the two in approximately four hours.

(Related information)

• Education: Hokkaido University

Foreign company(s) operating in the industry

Hokkaido is pursuing the sophisticated technological capability demanded by companies expanding worldwide and is actively establishing itself as a technological center for software development, etc. In 2006 the Japanese arm of the global management consulting firm Accenture established its system development center in Sapporo.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Support for establishing a base
Introduction of available properties and advice on hiring personnel	No	Handled by the Office of International Business, Bureau of Business Support, Department of Economic Affairs (Japanese only).
Providing information on permits and licensing procedures	No	Handled by the Office of International Business, Bureau of Business Support, Department of Economic Affairs (Japanese only).
Providing information on subsidy programs	No	Given on the website of the Office of International Business, Bureau of Business Support, Department of Economic Affairs.

Available incentives

With the establishment of the Hokkaido Code on Industrial Promotion, the Government of Hokkaido this year began a new support system for site location. Up to 3.5 billion yen (automotive-related industries) is available for automotive-related industries, electric and electronics industries, and the pharmaceutical industry.

Links to Related Websites

Local governments and related organizations

• Official website: Hokkaido Government

Education

• Hokkaido University

Transportation / living

• Airport: New Chitose Airport Terminal
• Healthcare: Foreign Resident's Guide
• Other living information : Hokkaido GURURI-TABI

Other information

• See the relating regional information.: Sapporo City