The Ideal Environment for Innovation

Japan’s R&D Push Could Help Your Business to Innovate

G7 Countries Ranked by R&D (2023)
Rank Country Score
1 United States of America 77.2
2 Japan 71.5
3 United Kingdom 71.3
4 Germany 69.6
5 France 62.5
6 Canada 56.0
7 Italy 43.4
  1. Source:

    World Intellectual Property Organization (WIPO) (2023). Global Innovation Index 2023: Innovation in the face of uncertainty. Geneva: WIPO. DOI:10.34667/tind.48220External site: a new window will open

Japan ranks second among the G7 countries in a comprehensive research and development ranking, evaluated based on indicators such as the number of researchers and R&D expenditure. Combined with its wealth of intellectual resources, this powerful commitment to innovation presents a prime opportunity for your business to create new value in Japan.

Seize Opportunities in Japan’s Technology Cluster Cities

Japan’s technology cluster cities are drawing interest worldwide.

Bringing tech companies into proximity with research institutions, these buzzing urban hubs are fostering the kind of collaboration and competition that sparks technological innovation. With a business presence in one of these cities, you’ll be right where the magic happens, able to tap into up-to-the-minute R&D development, and primed to create cutting-edge products and services. Many global companies have already leveraged these vibrant environments to generate new value.

Source: World Intellectual Property Organization (WIPO) (2023). Global Innovation Index 2023: Innovation in the face of uncertainty. Geneva: WIPO. DOI:10.34667/tind.48220External site: a new window will open

Open Innovation Initiatives with Japanese Companies and Universities, Conducted or of Interest to Foreign-affiliated Companies

Collaboration and partnerships with domestic companies and institutions in Japan can be a key strategy for expanding your business in the country. A JETRO survey of foreign-affiliated companies based in Japan revealed that 80% of companies considering collaboration and over 70% of those already engaged in it are motivated by a desire to strengthen and expand their business.

By combining your business strengths with the unique advantages of Japanese companies, you can energize your business and enhance your competitiveness.

Source: JETRO "2023 Survey on Business Operations of Foreign-affiliated Companies in Japan”

Japanese Government Incentives and Grants Could Take Your Startup to the Next Level

Global startups in Japan now enjoy a supportive environment in terms of funding , with plenty of government incentives and grants available. This has opened up a host of new possibilities on the Japanese market, and over the past decade, startup investment in Japan has actually grown tenfold approximately.

Total funding amount. 87.7 billion yen in 2013. 142.4 billion yen in 2014. 2015 201.8 billion yen. 256.5 billion yen in 2016. 357.6 billion yen in 2017. 486.8 billion yen in 2018. 600 billion yen in 2019. 555.4 billion yen in 2020. 850.8 billion yen in 20

Domestic Startup Funding Amount in Japan (Unit: 100 million yen) (Value: Total amount raised)
*1 The values for each year are based on observations made up to the time of aggregation.
*2 Due to the nature of the data, the figures, including those in the past, fluctuate depending on the progress of the survey. The smaller the value of a project, the more likely it is to be affected by the progress of the survey, and the number of procuring companies is particularly susceptible to change.
Source: Created by JETRO based on SPEEDA "Speeder Startup Information Research (as of January 19, 2023)"

Tokyo Ranks in the World's Top 10 Startup Cities

Global Startup Ecosystem Ranking (2024)
Rank City
1 Silicon Valley
2 New York City
2 London
4 Tel Aviv
4 Los Angeles
6 Boston
7 Singapore
8 Beijing
9 Seoul
10 Tokyo
  1. Source:

    Startup Genome LLC "The Global Startup Ecosystem Report 2024 (GSER 2024)"

Tokyo is ranked in the top 10 globally for startup ecosystems. High R&D spending, a large number of patent applications and robust government support have put Tokyo firmly among the world’s top startup locations, attracting the attention of overseas companies. The world is watching as Tokyo the startup city takes off. Now is the time to get on board.

Scale Up with Japan’s Unique Startup Support Ecosystem

Japan’s startup ecosystem offers an array of unique initiatives designed to promote innovation. As well as delivering startup support, it provides help with attracting venture capital, education for entrepreneurs, and matchmaking for R&D collaborations between industry, government, and academia. Offering comprehensive support at every stage from founding to growth and eventual success, this ecosystem is open to global startups and investors.

8 cities with startup ecosystem bases.

Startup Ecosystem Cities
*1-4: Global startup cities, 5-8: promotion hub cities
Source: Created by JETRO based on the Office for Science and Technology Innovation Promotion, Cabinet Office "Overview of Startup Ecosystem Hub Cities (As of September 2021)"

  1. 1.

    Startup Ecosystem Tokyo Consortium 

  2. 2.

    Central Japan Startup Ecosystem Consortium 

  3. 3.

    Osaka, Kyoto, Hyogo Kobe Consortium 

  4. 4.

    Fukuoka Startup Consortium 

  5. 5.

    Sapporo/Hokkaido Startup Ecosystem Promotion Council 

  6. 6.

    Sendai Startup Ecosystem Acceleration Council 

  7. 7.

    Hiroshima Strategy Council to Promote Regional Innovation 

  8. 8.

    Kitakyushu SDGs Startup Ecosystem Consortium

Streamlined Visa Support Helps Overseas Companies Focus on Business

The Highly Skilled Professional residency status may be offered to employees of global companies, provided they meet certain criteria in areas such as education, work experience, and income level. Having obtained this status, your team will be able to focus on your business without worrying about immigration issues. Additionally, international entrepreneurs can apply for a Startup Visa enabling the holder to stay in Japan for one year while preparing to start a business. With comprehensive, one-stop support available for everything from immigration to company registration, you can confidently launch your business in Japan.

Explore more: Setting Up Business

Setting Up a Company in Japan is Easier Than You Think

In Japan, the system for establishing a company has been made simple and straightforward. A business can be registered with as little as 1 yen in capital, and minimum setup costs can be kept at around 15 million yen, so setting up is more accessible than you might expect. The procedures involved can be carried out online, and plenty of support is available for visa applications. You’ll be surprised by how easy it is to get started in Japan.

Explore more: Setting Up Business

Contact Us

Investing in and collaborating with Japan

We will do our very best to support your business expansion into and within Japan as well as business collaboration with Japanese companies. Please feel free to contact us via the form below for any inquiries.

Inquiry Form

JETRO Worldwide

Our network covers over 50 countries worldwide. You can contact us at one of our local offices near you for consultation.

Worldwide Offices