Investing in Japan

Kyoto

The information below is as of June 2011.

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

Basic Information

Population*1	2.64 million
Labor force*1	1.26 million
Area*2	4,613 km²
GDP*3	9,922,169 million yen
Major industries	Electrical equipment, transport equipment, precision equipment, textile and chemical industry
Developing industries	Information, environment, health and welfare, biotechnology-related industries
Offices in Japan	Tokyo
JETRO office	JETRO Osaka

*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

Kyoto has been a thriving city for more than a millennium since 794, first as the capital and then as the focal point of Japanese culture. The prefecture is the birthplace of innumerable world-renowned traditional arts---Nishijin brocade and unique Kyoto styles of Yuzen silk dyeing, dappled cloth, embroidery, braiding, Buddhist altar decorations, urushi lacquer ware, cabinet making, pottery, masonry, dolls, scroll mounting, inlaying and swords to name but a few---that are passed from generation to generation. The spirit that fostered those exacting, intricate traditional arts is the force behind the rise of many advanced technologies today: Kyoto is home to Shimadzu, Nintendo, Kyocera, Omron, Horiba, Murata Manufacturing, Rohm, NEC and other world-leading companies. Moreover, Kyoto’s smaller businesses and the unique products and technologies they come up with are another of the prefecture’s attractive features. Indeed, one of the stand-out characteristics of Kyoto’s industry is that global high-tech IT-related companies sit side-by-side with SMEs with advanced manufacturing technologies as well as traditional industries. The prefecture is working hard to develop the region into a major IT cluster by attracting new IT companies to the area and fostering new venture businesses.

Strength of the region's education/research institutes

Kyoto Prefecture has 28 universities, including Kyoto University, Ritsumeikan University and Doshisha University, as well as eighteen two-year colleges. In fact, with more university students per 100,000 people than anywhere else in the country, Kyoto has become known as a student’s town. Around 5,000 of those students graduate every year from science and engineering courses, meaning that Kyoto is a potent source of human resources. The prefecture also has numerous research facilities: In Kyoto City there is Kyoto Research Park, a facility for nurturing creative venture businesses, and Katsura Innovation Park, a government-academia-industry partnership aimed at promoting new industries; while the southern part of Kyoto Prefecture is fast becoming a center for culture, academia and research with Kansai Science City, a comprehensive complex that features information, nanotech, IT, biotech and other cutting-edge technology clusters and forums for the promotion of interaction in research.

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

<Kyoto Industry-Academia-Government Cooperative Organization>
This is a government-industry-academia partnership platform solely set by Kyoto. The organization was established together with Kyoto’s universities, research institutions, economic organizations, industrial support groups and local governments in 2003. Among its many activities, the organization holds forums to promote partnerships, maintains an information database and disseminates information.

<Kyoto Nanotech Cluster>
Kyoto has determined that nanotechnology, the art of ultra-microfabrication, is the fundamental technology for next-generation. With local universities as the spearhead, Kyoto is driving to create new businesses in areas such as electronic device development, medical and biotechnology, textiles, mechatronics and IT, under the tangible partnership among local clusters of companies looking to achieve technical innovation and the fully-equipped industrial support institutions. Specifically, the Kyoto University Katsura Campus and Katsura Innovation Park are promoting robust joint university-industry research activity, being the nucleus of the cluster movement.

<Human L-cube Industry Creation Project (Kansai Science City region)>
This project involves research into technology that supports a “richer lifestyle”; technology we call Human L-cube, and promotes researches focusing on "three Ls (life science, living technology, learning)". The areas of focus are living technologies led by life science centering on plant biotechnology, next-generation home appliances and welfare, as well as the next-generation e-learning.

Strength of the region's infrastructure

The southern part of Kyoto is geographically close to Osaka and Kobe. Indeed, these make up what is known as the Keihanshin region, a single area closely linked by rail and road. Railways are particularly prevalent in this area, with multiple lines run by JR and numerous privately owned operators and packed timetables. This provides excellent access to all parts of the region.

<Land>

By the Meishin and Hanshin Expressways and Keiji Bypass, Kyoto City is within the reach of around 40 minutes from Osaka City, an hour from Kobe City and 90 minutes from Nagoya City.

<Air>

Kyoto has an air network covering 71 cities in 31 countries, as well as 14 cities in Japan. Indeed, Kansai International Airport, a major international freight hub, is just around 75 minutes away from Kyoto City by JR’s express train Haruka . Similarly, it takes approximately 90 minutes from Chubu International airport to Kyoto City by Tokaido Shinkansen and Meitetsu Railway’s Tokoname Line.

<Sea>

Kyoto’s Maizuru Port is rapidly being equipped to become a major center for the transit of people, goods and information in the area surrounding Sea of Japan. Already, it serves as the gateway to the Kansai economic area from the side of Sea of Japan. Japan’s fastest ferry plows the route between Maizuru and Otaru, Hokkaido (one trip daily), serving as an important route connecting all the way from Hokkaido to Kansai both as passenger and freight vessels. Maizuru Port is also an international trade port with regular sailings to and from Dalian and Qingdao in South Korea (Busan), China and Vostochny, Nakhodka and Vanino in Russia. Kyoto's Maizuru Port is within a reach of a ninety-minute drive from the central of Kyoto City.

<Railway>

Kyoto Station is a core stop on the Tokaido Shinkansen, just around 140 minutes from Tokyo and 40 minutes from Nagoya. From Osaka, Kyoto Station is within a mere half hour by the JR Tokaido Line, or 14 minutes by Shinkansen.

(Related information)

• Industrial cluster, project: Kansai Science City
• Industrial cluster, project: Kyoto Environmental Nanotechnology Cluster

Foreign company(s) operating in the industry

Kyoto Prefecture hosts more than ten foreign-affiliated companies. In recent years, the technological capabilities of Kyoto businesses combined with the R&D capacity of the prefecture’s universities and research institutions have seen Kyoto become the focus of considerable attention from foreign-affiliated companies promoting R&D. Kyoto is also a high-potential area to invest for companies focusing on sales with an eye on the huge Kansai market.

Company name	Telecognix Corporation
Industry sector	Telecommunication
Date of entry	March 2007
Motivation for selecting region	Kyoto’s long history, wealth of expertise, philosophy and taste in design seemed to be an advantage when it came to creating an interface between people and machines, and that is why we chose Kyoto.
Support provided by local government or JETRO	Support for moving into premises Business set-up assistance
Comments	Kyoto is home to companies that operate on a global scale, as well as seats of learning and large-scale, national projects like the Katsura Innovation Park. Universities in Kyoto are carrying out aggressive research activities, making the accumulation of knowledge in the region. Kyoto has just the right population and scale for us. It is more a comfortable place to live in than metropolises like Tokyo. Kyoto also provides motivation and momentum to create something new, thus giving the region a considerable advantage when it comes to business development.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Support for finding customers
Listing of potential customers and partners	No	Together with economic and industrial bodies, provides a list of prospective clients.
Listing of potential customers and partners	No	Cooperates in obtaining appointments with client candidates through collaboration with economic organizations, industry organizations, and similar groups.
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Information about incubation facilities in Kyoto Prefecture is provided free of charge (tenancy is charged) .
Providing information on procedures for investing in Japan	No	Together with JETRO and the national government, information about all necessary procedures is provided.
Arranging the meetings needed to establish a base (real estate, manpower services)	No	Together with economic and industrial bodies, support for meeting arrangements is provided.
Introduction of available properties and advice on hiring personnel	No	Information about business complexes and R&D facilities in Kyoto Prefecture is provided.
Providing information on permits and licensing procedures	No	Information about procedures for obtaining accreditation and permits is provided.
Providing information on subsidy programs	No	Information about grants available from the Kyoto prefectural and municipal governments is provided.

Kyoto invests significant effort into attracting businesses from overseas, establishing new research facilities and building relationships with foreign entrepreneurs and researchers. In response to the wide-ranging support systems put in place by the national government and the Kyoto prefectural and municipal governments, the Kyoto Foreign Investment Promotion Committee (KIC) was established in April 2003. The KIC serves as a one-stop service institution for foreign businesses to learn and do everything necessary to set up a business in Kyoto, and is working to establish a support regime to further promote investment in Kyoto by foreign companies.

<Kyoto Foreign Investment Promotion Committee (KIC)>
Operators: Kyoto Prefectural and Municipal Governments, Kyoto Chamber of Commerce and Industry, Kansai Research Institute, Kyoto Research Park (JETRO Kyoto Information Desk, Kyoto Industrial Support Organization 21)

Available incentives

A whole menu of location support is available, including a maximum two billion yen local grant, low-interest loans and regional tax relief.

「Efforts to attract companies in growth industries」
（By laws pertaining to the location and development of companies aimed at creating jobs)
<50% reduction of real estate acquisition tax in manufacturing-industry cluster promotion zones>
<Industry location strategy 21 special project grant>

• Kyoto City high-level cluster zones

Open to: Plants, head offices and research facilities of manufacturers and companies in “cutting-edge” industries (e.g., IT, genome-related and nanotech-related industries) Maximum amount: 400 million yen

• Kyoto City surrounds, academic/science parks

Open to: Plants, head offices and research facilities of manufacturers and companies in “cutting-edge” industries (e.g., IT, genome-related and nanotech-related industries) Maximum amount: 800 million yen

• Mid-north, Kizu River right bank

Open to: Manufacturers’ plants and research facilities, information service industry, etc. Maximum amount: 2 billion yen *Some criteria apply with regards to business scale and selection.
<Business location promotion loans for the creation of jobs>

• Loans available at low interest, 1%, for new office set-up or existing office expansion that result in job creation Maximum amount: 2 billion yen

• Incentive: Kyoto Prefecture Support

Links to Related Websites

Local governments and related organizations

• Official website: Kyoto Prefectural Government
• Business support: Kyoto Foreign Investment Promotion Committee (KIC)

Incentives

• Incentive: Kyoto Prefecture Support
• Support services: Kyoto Foreign Investment Promotion Committee (KIC)
• Business support facility: Kyoto Research Park

Industry cluster plans

• Kansai Science City
• Kyoto Environmental Nanotechnology Cluster

Transportation / living

• International School: Kyoto International School
• International School: International University KIU Academy
• International School: Doshisha International Academy (Kansai Science City)
• Other living information : Kyoto Prefecture Daily Living Guide

Other information

• See the relating regional information.: Kyoto City