The Kishida Cabinet's centerpiece policy, the "Five-Year Startup Development Plan," is in full swing, and the budget proposal approved in December 2022 included an additional budget of about 1 trillion yen for startup support.
The five-year plan for startup development consists of three pillars:
In terms of funding support in particular, the government has prepared 100 billion yen to support DeepTech-related startups and 300 billion yen to support drug discovery-related startups.
The goal of the Japanese government is clear: to make Japan the largest startup hub in Asia.
According to a survey by the Ministry of Economy, Trade and Industry (METI), the rate of new startups in Japan is about 5%, half the 10% rate of Western countries.
On the other hand, the startup scene in Japan has been booming year after year, with annual procurement amounts continuing to reach record highs every year. The number of unicorn companies is also on the rise, with some startups raising more than 10 billion yen in total.
Support for foreign entrepreneurs also continues to improve.
The Japanese government launched a startup visa program in 2019, allowing local governments to issue visas to foreign entrepreneurs at their own discretion. In addition, the Tokyo Metropolitan Government offers unsecured loans of 15 million yen to foreign entrepreneurs.
The Japanese government has long emphasized DeepTech in its support of startups. In the current budget, 100 billion yen has been set aside to support DeepTech.
In Japan, it is customary for universities, research institutes, and other research and development fields to receive large-scale support from the government budget. In addition, the private sector has also provided support for R&D in areas such as semiconductors and automobiles.
Although the definition of DeepTech is vague, if it can be applied to this framework, substantial support can be expected.
In terms of markets, Japan is probably unique in the number and density of large companies. Japan is the third largest economy in the world, and much of this is concentrated in Tokyo. Doing business with a large Japanese company requires careful and ongoing communication, but once a contract is signed, a long-term relationship can be expected.
.jpg)
.jpg)
