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Environment for Startups in Japan and Initiatives in the Regional Japan

Author

Listed:
  • Yusuke Itai

    (Bank of Japan)

  • Ryota Maeno

    (Bank of Japan)

  • Akira Miyoshi

    (Bank of Japan)

  • Asuka Nishino

    (Bank of Japan)

Abstract

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.

Suggested Citation

  • Yusuke Itai & Ryota Maeno & Akira Miyoshi & Asuka Nishino, 2024. "Environment for Startups in Japan and Initiatives in the Regional Japan," Bank of Japan Review Series 24-E-5, Bank of Japan.
    • Handle: RePEc:boj:bojrev:rev24e05
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    File URL: https://www.boj.or.jp/en/research/wps_rev/rev_2024/data/rev24e05.pdf
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    More about this item

    Keywords

    Startups; Startup investments; Startups in regional Japan; Entrepreneurial ecosystem; Regional entrepreneurial ecosystem;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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