Hokkaido Japan's Startup Ecosystem: Leveraging Unique Strength

"Every entrepreneur is trying to figure out where is the best place in Asia to start a company ... so there's a real opportunity to attract great talent and to incentivize the local talent in Japan." - Ben Horowitz, Source: Nikkei

To capture this opportunity, Hokkaido aims to stand out in Japan's evolving start-up landscape. The region is strategically capitalizing on its geographical strengths, actively nurturing start-ups specializing in AI, biotech, agritech, and the space industry. Hokkaido is cultivating its distinctive innovation culture by concentrating on four key drivers: accessible funding, proactive government support, robust support networks, and active university collaborations.

Government Contribution

To energize the start-up landscape, the government is taking decisive steps to nurture an ecosystem conducive to entrepreneurial success. Their primary method involves removing bureaucratic barriers and offering platforms for innovation. This strategy offers entrepreneurs a robust market for growth and innovation, thereby propelling economic advancement.

Furthermore, the government is deeply invested in open innovation, by matching corporate businesses, government organization, and start-ups to address key issues. Many of these initiatives leverage Hokkaido’s strength such as agriculture, space-tech, and AI. These collaborations between public and private sectors tap into the agility and creativity of start-ups to overcome complex challenges across industries with the support and financial backing of corporations.

There's also a significant push towards developing human resources. This involves directing skilled managers to R&D-centric start-ups and prioritizing entrepreneurial education for the youth. Additionally, the start-up visa program attracts global talent, contributing further to this vibrant ecosystem. Collectively, these actions are shaping a dynamic and productive start-up environment, one that not only drives economic growth but also nurtures innovation and equips the next wave of entrepreneurs to achieve their ambition.

Supporting Network

Specialized accelerators focusing on industries that utilize Hokkaido's strength are nurturing innovation and driving economic growth. To support entrepreneurs, programs are being carefully crafted to provide the necessary guidance and resources for their ventures, fostering a culture of innovation and risk-taking.

• J-Startup Hokkaido stands out by propelling startups towards significant growth. It achieves this through comprehensive support and partnerships with both public and private entities.
• Open Network Lab hosts a four-month accelerator program for developing startups helping them through activity funding, office spaces, and help for polishing your business, as well as mentoring by specialists in various fields.

Putting together this support network are start-up events, such as TechBBQ, Hokkaido Space Summit, No Maps and Hokkaido Innovation Week. These events create an opportunity for people from not only Hokkaido but all over the world to network and brainstorm ideas for future innovation. Developing a tight knit community of people that are willing to help each other to succeed in their ventures.

University Collaboration

Hokkaido University, Future University Hakodate, and Otaru University of Commerce has become a driving force behind the region's startup ecosystem, fostering student talent and pushing the boundaries of research and technology. Embracing a modern mindset the universities have focused heavily on their strength, SDG, AI, primary, and space-tech, which has put them in a position of great potential for the next years to come. Not only is their research highly pertinent to today's society the school has committed to making their support and research easily accessible to those who seek it.

Already, many start-ups have realized the potential of collaboration. There have been 93 start-ups that have come out of Hokkaido University, some of the notable ones being AWL and Letera. AWL is a company that came out of the AI research lab of Hokkaido University that is utilizing cutting edge technology to human vision to cameras while maintaining affordability and reliability. Letera is a space-tech company that has developed the worlds first eco-friendly plastic fuel modular propulsion system. As evident by the growth of start-ups coming out of Universities the future is bright as more innovation and eager students join the ecosystem.

Funding Options

One of the key funding initiatives led by the government is the development of a flexible financing environment that caters to companies in their critical seed period, allowing both debt and equity options. On top of that, there is a development and exit support strategies that adapt to the unique needs of startups at various stages of their journey.

Hokkaido is starting to attract the attention of financial institutions, venture capitalists, and investors from not only local organizations but around Japan. There is growing funding formation to support start-ups innovation in the industries utilizing Hokkaido’s natural strength.

Summary: Hokkaido Unique Innovative Ecosystem

Japan's Hokkaido region is emerging as a promising hub for entrepreneurial innovation in Asia. Harnessing its strategic location, Hokkaido is ambitiously cultivating a dynamic start-up ecosystem that maintains a distinct identity. Central to this growth are four key pillars: robust government initiatives that eliminate bureaucratic barriers and promote open innovation; dedicated support networks including accelerators and networking events; collaborative endeavours with universities and research institutes in Hokkaido; and flexible funding opportunities that cater to the unique requirements of ventures. Collectively, these measures are setting the stage for Hokkaido to become a beacon of technological advancement and entrepreneurship in the region.

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