The Startup Ecosystem of Tokyo Area

Tokyo’s startup ecosystem thrives on strong connections with established corporations, as many large Japanese companies actively engage with startups through partnerships, investments, and corporate venture capital funds. This collaborative approach allows startups to tap into the resources and expertise of established players in their respective industries.

Contributing to the ecosystem’s success, Tokyo’s highly educated and skilled workforce places a strong emphasis on technological expertise. The city is home to renowned universities and research institutions, providing a rich talent pool of individuals eager to work in startups. In fact, Japan ranks 4th in the world and 3rd in Asia in terms of its educational system, with a focus on STEAM education. Moreover, Tokyo’s market size, ranked second globally in 2021, consists of 35 million people and presents a significant opportunity for startups looking to expand or relocate.

Tokyo’s startup ecosystem is at the forefront of emerging technologies such as artificial intelligence (AI), robotics, blockchain, biotech, and fintech. The city also ranks 7th worldwide in hardware and IoT. Startups in these sectors benefit from access to cutting-edge research, technological advancements, and a market that embraces innovation.

The Japanese government has implemented various initiatives to foster entrepreneurship and support startups. Organizations like the Ministry of Economy, Trade and Industry (METI) and the Japan External Trade Organization (JETRO) provide resources, funding, and mentorship programs to nurture the growth of startups.

Additionally, the Tokyo Metropolitan Government has established Invest Tokyo, a program that supports foreign companies in seizing business opportunities and expanding their presence in Tokyo. With offices in Singapore, London, Hong Kong, and Paris, Invest Tokyo facilitates a virtuous cycle of innovation and economic growth, offering a range of incentives for foreign companies considering business expansion in Tokyo. The Comprehensive Special Zone for International Competitiveness aids in this as well by providing a one-stop consultation desk in the English language to allow foreign companies to conduct business smoothly in special zones, ensuring that their employees and their families can feel reassured about living in Japan.