Key Players in Japanese Innovation Ecosystem

Listed by for Startups, Inc. under the commission by JETRO
（Updated: January 31, 2023）

Provide financial support to startup companies.
Venture capitals are the main players that invest in unlisted companies with high growth potential. Recently, large corporates have started venture investment to seek the possibility of new businesses. And government agencies have also formed large funds to create new industries in Japan. Additionally, there are various actors in the venture capital field such as financial companies, universities etc.
Moreover, the number of accelerators is increasing. They support startups to grow by providing consultation, mentoring etc. Also, financial support for various stage of startups become available these days.

Public research institutes are important actors in the innovation ecosystem; there are many research institutes in Japan that aim to explore research in various fields and explore their potential for social implementation. There are various research laboratories, varying in areas such as research fields and the entity that established them, which are expected to be important starting points for technological innovation discovery in Japan.
The number of university-launched startups has been increasing in recent years, and according to the “FY 2020 Industrial Technology Survey (FY 2020 Survey on University-Oriented Venture Businesses)” published by the Ministry of Economy, Trade and Industry, it has been increasing continuously since 2019, with 2,901 companies announced in FY 2020. Efforts to strengthen the ecosystem for social implementation of research technology, such as the establishment of venture funds for startups from universities and the incorporation of management personnel from organizations other than research institutes, are increasing. 

It is very important for startups to work with the media in their hiring and marketing strategies. In the past few years in Japan, startups have attracted a lot of attention, and startups and new technologies are increasingly being featured in mass media such as television, newspapers, radios, magazines, and online media. Media coverage is important for startups because it leads to attention from the potential business partners, investors, new employees and so on. Hence, media has a big impact on growth of the startups.
Recently, lots of media has started working together with venture capitals and universities to cultivate high-potential news sources.

Lately in Japan, there has been a movement to increase support to startup in countrywide. With the movement of each Ministry and Agency, the government is aiming for dynamic development through comprehensive support measures such as deregulation and subsidies, in addition to matching with public organizations and overseas operators. Furthermore, local governments across Japan are also promoting their own initiatives, and each region is forming its own community.
In the creation of the startup city announced by the Cabinet Office, local governments, universities, and private organizations have been forming committees to strengthen the coordination of existing ecosystems, and thereby aim to create a larger ecosystem that transcends regions and organizations. In this way, by promoting policies and cooperation between the public and private sectors, they are trying to create and grow startups.

There are various places to create encounters of the stake holder in the innovation ecosystem. These include real-world communities, such as conferences and closed events. Also, a lot of online services to provide information regarding potential partners are available.
There is a type of communities created by venture capitals. On the other hand, there are companies and organizations who are developing the communities as their main businesses. Some of those events and services are open to foreign companies’ participation. The globalization of those communities are in progress.