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In East Asia, technology and innovation have long converged in Japan.
FREMONT, CA: Despite the pandemic, Japan maintains a strong international ranking among the best startup environments. Japan ranks sixth among Asia-Pacific nations, and Tokyo ranks fifth among world cities. The creators of German businesses should be aware of Japan's lengthy history as an Asian hub for international trade as they turn east for expansion.
Japan is well-known throughout the APAC area for its business friendliness and the amount and calibre of its international startups. The Japanese government has supported startups, even in light of COVID-19. The public and commercial sectors have invested in entry support, and top research centres are still sharing their business expertise in Asia-Pacific. The largest startup investment in Japan's history, at over USD eight billion in 2021, is expected to be at least as high in 2022.
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At the same time, Japan is becoming aware that startup success requires more than just financing. The government established the Digital Agency in 2021 to hasten the digitalisation of social and business infrastructures. As a result, there are more chances for startups to support efforts related to digital transformation.
Additionally, a new branch of the Ministry of Economy, Trade, and Industry (METI) has been established with the express purpose of assisting the Japanese startup ecosystem. METI developed Kyoto and Fukuoka as the top startup hotspots in Japan in 2021. With new state-sponsored financing and programs, company incubation and support will accelerate even more in 2022.
Renewable Energy & Climate Tech
The Japanese market presents many opportunities for entrepreneurs operating in the GreenTech and Climate Tech areas. Japan has set some challenging sustainability goals, like doubling its share of renewable energy by 2030 and becoming a net-zero society by 2050. Due to these objectives, the Environment, Social, and Governance (ESG) sector has received large investments, and the demand for GreenTech skills has grown rapidly.
Japan's METI created its Green Growth Strategy for 2050 carbon neutrality in December 2020. Four Climate Tech industries are among the 14 core sectors the strategy focuses on.
- Offshore wind power
- Fuel ammonia
- Hydrogen fuel cells
- Nuclear energy
The national policy has made the Japanese market an open field of opportunity for businesses specialising in climate technology or renewable energy.
Healthcare & Life Sciences
There is numerous potential for German startups in the Japanese market's healthcare and life sciences sectors.
Pharmaceuticals, medical devices, preventative healthcare, regenerative medicine, and nursing care services are well-established sectors in Japan. However, these industries are anticipated to expand in tandem with Japan's growing ageing population. Japan will require more research and innovation in the field of health technology as the country's digitisation of healthcare quickens.
The Japanese government is explicitly supporting international businesses and start-ups in the life sciences sector. A number of healthcare firms have found success in Japan as an incubator.
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