Tokyo has been the capital city of Japan since approximately 1869. Located in the geographic center of this long, narrow archipelago, the city was always perfectly placed to become the heart of the country, and ever since becoming the capital, it has come to dominate Japanese politics, economics, and culture.

Whereas the previous capital, Kyoto, boasts a plethora of historical buildings, Tokyo is perhaps the archetypal modern city. Devastated by the Great Kanto Earthquake of 1923 and heavily bombed during World War II, little remains of Tokyo’s structural heritage. In addition to these natural and wartime disasters, Tokyo’s modern urban development has been guided by a trend known in Japan as “scrap and build,” in which older structures are frequently demolished to make way for new ones. This has profoundly transformed Tokyo’s landscape and skyline many times over, with small- to medium-sized buildings frequently being replaced by high-rise developments that better meet the needs of a rapidly modernizing and expanding urban environment. This ever-changing cityscape reflects the scintillating energy and rapid pace of life in one of the world’s most exciting cities.

Tokyo’s role as the primary political and economic hub of Japan adds another layer to its significance. As the capital city, it naturally houses key government institutions, including the National Diet Building, where legislative activities take place, the Supreme Court, which oversees the judiciary, and the offices of major central government ministries and agencies. Over the years, there have been discussions about relocating Japan’s capital, spurred by factors such as the cost of further expansion and the risks posed by natural disasters and potential security threats. However, despite these concerns, many government agencies and core administrative functions remain concentrated in Tokyo, particularly in the Kasumigaseki area, which is synonymous with the nation’s bureaucratic and legislative power.

Tokyo stands as one of the world’s most vibrant financial centers, home to the headquarters of countless global firms. As a result, it unsurprisingly tends to be the first location for foreign companies seeking to enter the Japanese market to set up their operations. Tokyo’s gross metropolitan product is estimated at around 113.7 trillion yen, a figure which rivals the GDP of entire nations. This level of economic output reflects Tokyo’s intense commercial and financial activity.

Cementing Tokyo’s status as the capital of Japan, the Emperor himself resides in the Imperial Palace, located close to Tokyo Station. The palace grounds cover a vast area in the heart of the city, large parts which are open to the public, making it a popular tourist attraction as well as a green haven amidst the bustling metropolis. The Japanese Constitution describes the Emperor as the "symbol of the State of Japan," marking him as a figure of cultural significance rather than political authority.

In summary, Tokyo’s evolution from the ancient town of Edo to a sprawling, high-tech metropolis has been shaped by a complex interplay of historical events, urban-planning policies, and economic priorities. Today, Tokyo stands as a city that harmonizes tradition and modernity, embodying both the achievements and challenges of Japan’s rapid modernization.

・Tokyo and the Capital Region

Have you ever heard of Kanagawa, Chiba, or Saitama? These three prefectures, along with Tokyo itself, make up the Tokyo Metropolitan Area, which is often perceived as a single, expansive urban region. While Tokyo itself is an international hub for commerce, culture, and politics, and as such, it alone cannot accommodate the tremendous number of companies and people that it attracts. The prefectures of Kanagawa, Chiba, and Saitama have thus developed to help manage this overflow, providing housing and services outside the city limits for people who work in Tokyo. These suburban regions are well connected to central Tokyo, ranging from around 30 to 60 minutes away by train, and feature dense developments of high-rise apartment buildings and single-family homes. If you’ve ever looked at a Tokyo train map, you’ll see multiple train lines radiating outward from the city center, illustrating how Tokyo’s influence extends into neighboring regions. These train networks, operating at a level of efficiency that makes them the envy of the world, allow people to commute to and from Tokyo, shaping the radial layout of population distribution across the metropolitan area.

If you ever find yourself taking the train from central Tokyo to Narita Airport, pay close attention to the landscape during your journey. At first, you are surrounded by tall buildings, but as you move farther away from the city, the buildings gradually become shorter, and the number of two-story homes increases. Closer to Narita, the residential buildings almost vanish entirely, replaced by open fields and expansive farmlands. This gradient—from a dense urban center to a sprawling suburban area and finally to rural farmland—reflects the radial structure of the Tokyo Metropolitan Area. This pattern of urban, suburban, and rural zones can be observed not only from the ground but also from the air. If you’re flying out of Narita Airport, take a look out the window after takeoff: you’ll be able to see the vast Kanto Plain, where the city’s radial networks of roads and railways extend across the landscape, each line representing the movement of people between central Tokyo and its outer suburbs. At night, the city lights form a glowing map that reveals the density and uneven distribution of population across the metropolitan area.

If you’re flying out of Haneda Airport, I recommend traveling to the airport by car along the expressway. Driving from central Tokyo to the bay area provides a unique perspective on Tokyo’s urban layout. You’ll pass through districts lined with skyscrapers before reaching the waterfront, where high-rise apartment buildings overlook the Tokyo Bay. The bay area plays a crucial role in supporting Tokyo’s population density, and much of it is reclaimed land that has been converted into new residential and commercial spaces. By constructing vertically in this area, Tokyo is able to accommodate even more people within its limited land space, maximizing every available square meter. Tall residential buildings provide homes for thousands of residents, making it possible for Tokyo to manage its population despite its limited area.

The suburban areas of the Tokyo Metropolitan Area have especially developed along major railway lines, which extend out from Tokyo’s core into Kanagawa, Chiba, and Saitama. In Japan, these suburban communities are often referred to as "bed towns"—a Japanese-English term describing towns where people mostly return home to sleep after spending their working day in the city. These bed towns generally lack extensive commercial facilities, meaning that the daytime population in these areas is much lower than the nighttime population. Commuter trains are thus filled with passengers in the morning as they head into Tokyo and again in the evening as they return home, with unusually crowded conditions during rush hours.

Within these suburban areas, certain cities have also emerged as business hubs. In Kanagawa Prefecture, for example, Yokohama and Kawasaki serve as major urban centers, while in Chiba Prefecture, cities like Chiba and Narita have developed as commercial centers. These cities are strategically positioned along railway lines that link Tokyo with its suburban regions and have become more commercially active than the surrounding residential suburbs. The growth of these areas is partly due to practical needs, as they provide necessary services and employment for the suburban population. Additionally, the Japanese government, specifically the Ministry of Land, Infrastructure, Transport, and Tourism, has actively promoted the development of these suburban business hubs. Concerned about Tokyo’s overpopulation, the ministry has encouraged the growth of commercial areas outside of central Tokyo to decentralize business functions and prevent an excessive concentration of people in the capital.

While these suburban business centers may not be the typical destinations for tourists, they offer a unique window into the everyday lives of people in the Tokyo Metropolitan Area. Visiting these areas allows you to see a different side of Japan, one where residential life, suburban industry, and commuter culture intersect. In Yokohama, for example, you can see a thriving port city with its own urban character, offering a blend of modernity and tradition. Kawasaki, on the other hand, is known for its industrial zones and factories, which highlight the role of manufacturing in Japan’s economy. Chiba, with its expansive shopping centers and entertainment facilities, serves as a commercial hub for its surrounding communities, while Narita offers a unique mix of international access via Narita Airport and traditional Japanese temples, such as Naritasan Shinshoji Temple.

In essence, the Tokyo Metropolitan Area is a fascinating study in urban planning, population management, and transportation efficiency. This area, with its blend of densely populated urban centers, carefully planned suburban developments, and well-connected transportation networks, showcases Japan’s efforts to balance rapid modernization with the limitations of geography. By exploring not only Tokyo but also Kanagawa, Chiba, and Saitama, you can gain a fuller appreciation of Japan’s urban landscape and the intricate systems that support one of the world’s most populous metropolitan areas.

・Tokyo’s start-up ecosystem

As Japan’s political, economic, and cultural center, it’s not surprising that Tokyo is taking the lead in the nation’s burgeoning start-up ecosystem. The concentration of business resources, infrastructure, and talent in the capital makes it the ideal environment for start-ups. In fact, Tokyo has the largest number of start-ups of any region in Japan, fueling the city’s ambition to be a significant player in global innovation.

Silicon Valley is famously known as the start-up capital of the United States. In Japan, an area of Tokyo’s vibrant Shibuya district has taken on a similar mantle. Its nickname, “Bit Valley,” is a clever pun: the kanji for Shibuya (渋谷) literally mean “bitter” (渋) and “valley” (谷) in English, so abbreviating the translation of the first kanji produces a nickname that implies Shibuya’s role as a growing tech-focused start-up hub. Indeed, Bit Valley has become synonymous with innovation and digital technology, attracting ambitious entrepreneurs, engineers, and creative thinkers from all over the country and beyond.

Bit Valley owes its success in no small part to Shibuya Ward’s active promotion of start-ups by offering support tailored to their needs. The 23 special wards of Tokyo, of which Shibuya is one, are unique to Tokyo, each operating similarly to cities in other prefectures and taking responsibility for managing local services like education, welfare, and business regulations. Shibuya Ward, in particular, has made substantial investments in its start-up ecosystem, securing over 300 million yen in its 2023 budget to foster entrepreneurial activities. As part of this initiative, Shibuya Ward selected a number of promising start-ups and invited them to implement their services in the Ward Office’s main building, providing them with invaluable exposure and real-world testing opportunities.

Shibuya’s efforts to support start-ups go beyond financial support for existing companies; the district aims to become an attractive entry point for foreign entrepreneurs. The ward’s Startup Welcome Service assists non-Japanese entrepreneurs in overcoming hurdles such as visa acquisition and navigating administrative procedures. Recognizing the importance of comprehensive support, Shibuya provides not only business assistance but also aid for settling in Japan. To increase its visibility among international entrepreneurs, Shibuya actively maintains a digital presence through Shibuya Startup Support, a dedicated information and support portal that actively engages with foreign talent on social media platforms. Blackbox, the platform where this article is published, was also launched as part of Shibuya Ward’s efforts to connect with and foster an international start-up community. These efforts extend offline, with Shibuya hosting networking events at PORTAL POINT SHIBUYA, a dedicated support space that fosters direct interaction and collaboration among entrepreneurs.

The Tokyo Metropolitan Area’s overarching start-up strategy is embodied in Global Innovation with STARTUPS. This initiative underscores Tokyo’s awareness of its need to stay competitive with other rapidly advancing regions in Asia. The strategy is comprehensive, aiming not only to attract global venture capital and accelerator programs but also to cultivate an ecosystem of resources that support sustained innovation. Tokyo Innovation Base, one of the central elements of this strategy, brings together start-ups, investors, and innovators from Japan and abroad to promote collaboration, resource sharing, expertise, and market access. These large-scale initiatives show Tokyo’s commitment to positioning itself as a critical node in the global network of start-up ecosystems.

Japan’s start-up ecosystem is a source of optimism in a period of economic challenges. Although the country achieved phenomenal growth after World War II, its economy has slowed in recent decades. The start-up sector represents a fresh path forward, with the potential to address stagnation and regain international competitiveness. In particular, Tokyo is ambitiously focusing on nurturing unicorns—start-ups that reach a valuation of one billion dollars—aiming to produce companies capable of succeeding on the global stage. Tokyo’s initiatives in the start-up sector focus on two essential components: building a collaborative ecosystem and reforming restrictive regulations.

Creating opportunities to build a robust ecosystem

Tokyo Innovation Base was established as a comprehensive resource center, designed to facilitate networking and provide various forms of administrative support for entrepreneurs. It enables face-to-face interactions between entrepreneurs and mentors, organizes pitch events for start-ups to showcase their innovations, and provides high-tech equipment like 3D printers and laser cutters. Tokyo has also hosted influential conferences, including City-Tech.Tokyo and the Startup Ecosystem Summit, creating spaces for networking, collaboration, and international exposure.

Additionally, Tokyo is actively promoting entrepreneurship at all educational levels. The city has initiated programs that cultivate entrepreneurial skills in students from elementary school to university, aiming to embed entrepreneurial thinking into Japan’s educational fabric. By hosting courses, workshops, and competitions, Tokyo aspires to inspire the next generation of innovators and problem-solvers.

Regulatory reform to empower start-ups

Japan’s regulatory environment has long been a challenge for new businesses. Many start-ups face barriers to progress in the form of rigid regulation. Tokyo’s government is working to address this on multiple fronts, including relaxing visa requirements to attract skilled foreign professionals and making it easier for start-ups to participate in public contracts. Traditionally, public procurement in Tokyo has required companies to go through a competitive bidding process, which incorporates a ranking system that often disadvantages new start-ups. To counter this, Tokyo is creating a system that allows start-ups to bid regardless of rank and provides support with the registration process. Winning government contracts not only provides start-ups with valuable revenue but also enhances their reputation, giving them a foundation for further growth. By positioning itself as a “first customer” for start-ups, Tokyo aims to fuel their growth and solidify their market presence.

Overall, Tokyo is a remarkably attractive city for start-ups, with its extensive market, strategic resources, and proactive government support. Language and cultural barriers have historically made Japan a challenging destination for foreign entrepreneurs, but these obstacles are steadily diminishing. Shibuya Ward and Tokyo as a whole are actively fostering a welcoming environment for international talent. Tokyo’s start-up landscape also remains less competitive compared to that of the U.S. and other countries.

For innovators who yearn to explore, Tokyo offers a unique combination of opportunity, support, and ambition. The city not only welcomes tourists to experience its culture and history but also invites entrepreneurs to build and expand their dreams within its dynamic and rapidly evolving start-up ecosystem. Why not consider Tokyo as your next destination—whether as a tourist or as an entrepreneur ready to make an impact?

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