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Environment for Startups in Japan and Initiatives in the Regional Japan


June 12, 2024
ITAI Yusuke, MAENO Ryota, MIYOSHI Akira
Research and Statistics Department

Kyoto Branch


The importance of startups is attracting renewed attention in discussions about improving productivity and stimulating innovation in Japan. Although most startups are still located in Tokyo, there have been positive changes in recent years, such as an increasing trend in startup funding in regions outside of Tokyo. However, the amount of funding raised by startups in Japan is still small compared to that in the United States and Europe. In addition, various issues regarding startups have been raised, including a lack of diversity in the investor base and a shortage of personnel at the executive level. This article provides an overview on recent positive trends among startups in Japan and challenges for future development. It also introduces the current situation and initiatives for development of startups in regional Japan.


The Bank of Japan Review Series is published by the Bank to explain recent economic and financial topics for a wide range of readers. This report, 2024-E-5, is a translation of the Japanese original, 2024-J-4, published in April 2024. Views expressed are those of the authors and do not necessarily reflect those of the Bank.

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