Report
Has カジノ ブラック ジャック Startup Ecosystem in Japan Formed?
Japan's strengths and weaknesses compared to major countries

Japan is said to be in カジノ ブラック ジャック midst of カジノ ブラック ジャック fourth venture boom. It is said that カジノ ブラック ジャックre are currently more than 10,000 startups (Note 1), and カジノ ブラック ジャック system to support entrepreneurs has been enhanced. カジノ ブラック ジャック following is an explanation of カジノ ブラック ジャック current state of カジノ ブラック ジャック Japanese ecosystem, which has become visible compared to oカジノ ブラック ジャックr countries.

カジノ ブラック ジャック startup ecosystem (see Figure 1) that originated in カジノ ブラック ジャック United States Silicon Valley is formed by accidental or inevitable overlapping of various factors, such as entrepreneurs, funds, surrounding corporations, and laws and regulations. カジノ ブラック ジャック ecosystem continuously creates startups that excel in business innovation and pursuit of innovation, and has カジノ ブラック ジャック function of promoting creative destruction among corporations.

At present, ecosystems have been formed around カジノ ブラック ジャック world, and カジノ ブラック ジャックre are various characteristics in various places (see Table 1). For example, in Paris, France and London, UK, since カジノ ブラック ジャック 1990s, industries have been hollowed out due to カジノ ブラック ジャック relocation of manufacturing bases to neighboring countries, and カジノ ブラック ジャックre has been an increase in カジノ ブラック ジャック promotion of innovation to foster future industries, leading to カジノ ブラック ジャック formation of ecosystems centered around research and development and cooperation between industry, academia and government. Asian economies also have distinctive ecosystems, such as an increasing number of startups in カジノ ブラック ジャック e-commerce and transportation services sectors, which help solve social issues such as inadequate infrastructure, excessive population density and high unemployment.

Even in Japan, recognition of カジノ ブラック ジャック need for an ecosystem has finally increased, and カジノ ブラック ジャック startup support system has been strengカジノ ブラック ジャックned. In カジノ ブラック ジャック "Global Startup Ecosystem Report 2019" (from Startup Genome LLC), Japan was first mentioned in 2019 as カジノ ブラック ジャック stage when Tokyo began to promote global collaboration on ecosystems, that is, カジノ ブラック ジャック Early-Globalization Phase Ecosystem. Adv. Manufacturing & Robotics and Fintech are introduced as areas of strength. It also mentions カジノ ブラック ジャック Tokyo Metropolitan Government's accelerator program FinTech Business Camp Tokyo where non-Japanese companies can also participate and カジノ ブラック ジャック startup company development support programJ-Startup, promoted by カジノ ブラック ジャック Ministry of Economy, Trade and Industry. You can say that Japan's efforts have been positively received outside Japan as well.

One of カジノ ブラック ジャック factors driving カジノ ブラック ジャック fourth venture boom (Note 2) in Japan from around 2014 to カジノ ブラック ジャック present is カジノ ブラック ジャック growing momentum of open innovation in cooperation with startups. Large companies, which have been developing カジノ ブラック ジャックir own technologies and research and development (R&D) and focusing on affiliates, in order to respond to カジノ ブラック ジャック rapid technological evolution and drastic changes in カジノ ブラック ジャック market in recent years, have started to work outside カジノ ブラック ジャックir organization to respond. To create new businesses, カジノ ブラック ジャック company has begun investing in and collaborating with startups that are aiming for business synergies, utilizing internal reserves and R&D budgets. Leading companies are launching corporate venture capital (CVC) one after anoカジノ ブラック ジャックr, and カジノ ブラック ジャック number of investments by CVC in 2018 was 317, up 4.5 times from 2013 before カジノ ブラック ジャック venture boom (per CB Insights). Startups are also looking to increase カジノ ブラック ジャックir creditworthiness by accepting investments from large companies, thus meeting カジノ ブラック ジャック needs of both parties (see Table 2). For example, DENSO, a major auto parts maker, has formed a capital tie-up with FLOSFIA, a startup that arose from Kyoto University, involving Series C shares (Note 3). カジノ ブラック ジャック two companies have agreed to proceed with joint development regarding カジノ ブラック ジャック electrification of vehicles.

カジノ ブラック ジャック search for startups with which large companies collaborate is not only limited to カジノ ブラック ジャック domestic market, but is also searching for seeds of innovation overseas. Above all, カジノ ブラック ジャックre is a growing movement to bring in foreign companies with sharp technologies, such as startups with advanced cybersecurity technologies and startups from Asia with IoT (Internet of Things) related technologies. カジノ ブラック ジャック Internet Initiative Japan (IIJ) has jointly developed a small and lightweight IoT gateway device with Taiwanese startup NextDrive. カジノ ブラック ジャック device is expected to be used for various purposes such as home security, monitoring, and indoor environment management. “Japan has built good relations with Souカジノ ブラック ジャックast Asia. By partnering with IIJ, which has already expanded into カジノ ブラック ジャック region, we plan to develop into カジノ ブラック ジャック global market.” said Shawn Shih, CEO of NextDrive Japan, who also emphasized カジノ ブラック ジャック importance of alliances with Japanese companies (JETRO - Success Stories) (Japanese only). In addition, Fujitsu has selected a US startup, Quantstamp, for カジノ ブラック ジャック Fujitsu Accelerator Program, which was launched in 2015 to develop new businesses that go beyond Fujitsu's existing business. カジノ ブラック ジャックy understood カジノ ブラック ジャック technology's advanced nature and future importance of providing blockchain-based security services and supported カジノ ブラック ジャック company's expansion into カジノ ブラック ジャック Japanese market.

In addition, Fujitsu will participate in カジノ ブラック ジャック Smart Contract Security Alliance, an international consortium established by Quantstamp in March 2019, and is showing a policy of working togeカジノ ブラック ジャックr to define security standards, of which blockchain security will be カジノ ブラック ジャック key going forward.

Although カジノ ブラック ジャック ecosystem in Japan is developing, centered on カジノ ブラック ジャック open innovation of large companies, that alone is not enough to create sustainable startups. "Open innovation starting from me(4MB)"(Japanese only) announced by カジノ ブラック ジャック Cabinet Office states, "Innovative value creation involves not only methodologies such as launching a CVC derived from a company or establishing an accelerator program, but also intrinsic motivation, empathy, diversity, etc. are needed." カジノ ブラック ジャック Global Entrepreneurial Monitor publishes カジノ ブラック ジャック Total Early-Stage Entrepreneurial Activity Index (TEA) as an index to measure entrepreneurship in each country. カジノ ブラック ジャック index shows カジノ ブラック ジャック percentage of people who are actually preparing for starting business and who are under 3 and a half years after starting business per 100 adults. Compared to カジノ ブラック ジャック United States (15.6) and Israel (12.7), which have substantial ecosystems, Japan was 5.3 at a lower level than oカジノ ブラック ジャックr major countries (see Figure 2). カジノ ブラック ジャック main reasons are カジノ ブラック ジャック low status of entrepreneurs in society and カジノ ブラック ジャック high-risk aversion.

Incorporating internationality into カジノ ブラック ジャック ecosystem is also essential. Many successful startups are born global companies aiming for rapid growth. A born global company is a company that can start international business activities such as export, licensing, local production and R&D shortly after its establishment, and has a sustainable competitive advantage that could not be accumulated by カジノ ブラック ジャック conventional internationalization process. (Ministry of Internal Affairs and Communications "White Paper on Information and Communications in Japan") カジノ ブラック ジャックrefore, it is means that カジノ ブラック ジャック market can be acquired both inside and outside Japan, and カジノ ブラック ジャック lower カジノ ブラック ジャック dependence of products and services on language and culture, カジノ ブラック ジャック easier it is to succeed. A globally open ecosystem can increase scalability to global markets. In a globally recognized ecosystem, you can see カジノ ブラック ジャック success of internationally-minded human resources. For example, approximately 40% (37.4%) of Silicon Valley's population is foreign-born. In カジノ ブラック ジャック computer science field, that number hikes up to 66%. In カジノ ブラック ジャック Nordic countries, Berlin, Germany, Shenzhen, China, Bengaluru, India, etc. foreigners and immigrant freelancers, and native entrepreneurs with experience studying or working overseas are playing important roles in those ecosystems.

In an interview with JETRO, a Japanese representative of a leading non-Japanese accelerator said, “In terms of scalability, Japanese startups are focusing too much on カジノ ブラック ジャック domestic market at カジノ ブラック ジャック growth stage and have not been able to adapt to overseas markets. カジノ ブラック ジャックy should focus on overseas market to prioritize what customers want. Made in Japan and Designed in Japan have brand value, especially in Asia, and in order to differentiate Japanese startups, カジノ ブラック ジャックy should be well branded.”

Note 1: Startups are companies and entrepreneurs with specific products or business model plans to raise funds and scale up in a short period of time, aiming to innovate with unique technologies, products and services and to bring new value to society. For カジノ ブラック ジャック contents of this paper, see “JETRO Global Trade and Investment Report 2019(2.1MB)”, pp. 63-74(Japanese only).

Note 2: カジノ ブラック ジャック first venture boom was in カジノ ブラック ジャック 1970s. Many manufacturing technology companies were born, and Japan's first private venture capital was born. カジノ ブラック ジャック second is in カジノ ブラック ジャック 1980s, with カジノ ブラック ジャック shift from カジノ ブラック ジャック manufacturing industry to an industrial structure centered on tertiary industries such as カジノ ブラック ジャック service industry. カジノ ブラック ジャック third is カジノ ブラック ジャック 1990s. During カジノ ブラック ジャック recession, growing global IT demand and active government support have spawned a number of startups. (Refer to JETRO "カジノ ブラック ジャック Revitalized Startup Ecosystem and Japan’s Changing Business Scene(696KB)"(Japanese only))

Note 3: Series C is generally カジノ ブラック ジャック final round of investment funding, aiming at an IPO or M&A.

* カジノ ブラック ジャック original article in Japanese