Reason2. Japan is open as an Innovation Hub

Reason2. Japan is open as an Innovation Hub

Industrial Cluster



No. 1


    (World Intellectual Property Organization)


(Evaluated on R&D expenditures as a percentage of GDP, the number of scientific publications and citations, etc.)


No. 1

  1. The Global Competitiveness Report 2019

    (World Economic Forum)

Patent applications

(per million population)


No. 1

  1. The Global Competitiveness Report 2019

    (World Economic Forum)

R&D expenditure as a percentage of GDP: No. 1 (out of G7). Japan 3.3%, Germany 3.1%, the United States 2.8%, France 2.2%, the United Kingdom 1.7%, Canada 1.5%, and Italy 1.4%.

Number of researchers per 1 million population: 5311. Japan 5311, Germany 5212, France 4715, United Kingdom 4603, United States 4,412, Canada 4,264, Italy 2,307.
Number of universities in Japan: 780. There are 86 national universities, 90 public universities, and 604 private universities (as of October 2020).

Startup Ecosystem

Japan will support startup ecosystems外部サイトへ、新しいウィンドウで開きます in eight cities under seven strategies over the next three years.

Strategy 1:Formation of startup ecosystem cities. Strategy 2: Strengthen ecosystem centered on universities. Strategy 3: Providing world-class acceleration programs. Strategy 4: Promote gap funds for tech startups. Strategy 5: Governments and local governments to encourage challenges as customers. Strategy 6: Enhancing ecosystem networks and fostering momentum. Strategy 7: Promote the mobility of R&D personnel. Base cities: Sapporo and Hokkaido Startups Ecosystem Promotion Council, Sendai Startup Ecosystem Promotion Council, Hiroshima Regional Innovation Strategic Meetings, Kitakyushu City SDGs Startup Ecosystem Consortium. Global base cities: Startup Ecosystem Tokyo Consortium, Central Japan Startup Ecosystem Consortium, Fukuoka Startup Consortium.
  1. * Acceleration Programs : Programs to support refining startups' business models and accelerate growth.

    ** Funds to fill the gap between basic research and commercialization, such as prototype development costs

    [Source] Prepared from materials from the Integrated Innovation Strategic Meetings (7th) and the Comprehensive Science, Technology and Innovation Event (50th)

Smartizing the whole city

Japan aims to provide highly convenient and efficient services by revising The National Strategic Special Zones Law and introducing advanced services such as drone delivery, tele medicine and nursing care, and autonomous driving.

1: Mobility (e.g. automated passenger transport), 2: logistics (e.g. delivery by drone), 3: payment (e.g. promoting digital money), 4: administration (e.g. one-stop contact), 5: medical and nursing care (e.g. remote medical care using IT), 6: education (e.g. online education), 7: energy and water (e.g. optimal management of infrastructure), 8: environment and waste (e.g. integrated recycling), 9: crime prevention (e.g. patrol robots), 10: disaster prevention (e.g. implementation of autonomous driving rescue vehicles)
  1. [Source] Prepared from the "Supercity" concept (September 2020) of the Cabinet Office Regional Revitalization Promotion Secretariat

Open Innovation Promotion Tax System

Open Innovation Promotion Tax System外部サイトへ、新しいウィンドウで開きます
If a Japanese corporation or corporate venture capital (CVC) invests more than a specified amount in unlisted startups less than 10 years old for the purpose of conducting open innovation, it is eligible for a 25% income deduction.

Requirements for investments eligible for the 25% income deduction 1: investment of 100 million yen or more. 10 million yen or more if the investor is an SME. 500 million yen or more for an investment in an overseas startup. 2: Equity investments to provide new funds to startup companies rather than stock trading between shareholders. 3: The maximum amount of deduction per case is 2.5 billion yen, and the maximum amount of deduction per year is 12.5 billion yen. 4: The investing corporation must hold the acquired shares for five years or more. Investing company 1: A corporation or organization located in Japan. 2: CVC formed by the above. Startups 1: Companies with novelty and growth potential that are less than 10 years old and unlisted. 2: Companies that are not part of the investor companies' or other companies' group. (applicable until March 31, 2022)
  1. [Source] Prepared from METI's Fiscal 2020 Tax Reform for Economy, Trade and Industry (December 2019)

JETRO's support for collaboration between Japanese and overseas companies

JETRO launched a DX portal to support companies seeking to collaborate with overseas companies that utilize digital technologies.

DX platform-based support

We aim to develop cooperation and collaboration projects through online webinars , matching, hackathons, and other

Global Acceleration Hub

We have established the JETRO Global Acceleration Hub to support the global expansion of Japanese startups in collaboration with leading local accelerators and other partners in advanced startup ecosystems around the world.

Support for demonstration projects (pilot projects)

By promoting demonstration projects between ASEAN and Japanese companies, we support companies in implementing digital technologies in their fields.

Open Innovation related events

We support cooperation and collaboration (open innovation) between promising startups around the world and Japanese companies.

DX Related News & Related Measures

This section provides information on DX related businesses and related measures.

"J-Startup" public private intensive support program for startups

To boost the global expansion of Japanese startups utilizing overseas funding, human resources, and technology, we will establish J-Startup pavilions at five leading overseas startup-related events to support Japanese startups' participation.

Reason3. Excellent Business Environment

Adequacy of regulatory and administrative systems

2nd in the world

Reason3.Excellent Business Environment

WHY JAPAN? "5 Reasons to Invest in JAPAN"

  1. Reason 1 World's third largest economy

  2. Reason 2 Open as an innovation hub

  3. Reason 3 Excellent business environment

  4. Reason 4 Stable infrastructure

  5. Reason 5 Livable society

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