As Japan’s second largest city and the economic center of the Kansai region, Osaka has rapidly emerged as an important innovation hub in Asia in recent years. With its deep industrial foundation, advanced R&D facilities and open international environment, Osaka is attracting innovative companies and talents from around the world.

This article aims to outline a comprehensive map of Osaka’s innovation resources for international companies interested in entering the Japanese market. Through an in-depth analysis of Osaka’s research institutions, incubator networks, industrial clusters and policy support systems, we will provide entrepreneurs with practical market entry strategies and resource docking guides. Whether you are looking for R&D cooperation, market expansion or innovation incubation, this map will become an important reference for you to start your innovation journey in Osaka.

Overview of Osaka Innovation Ecosystem

Osaka’s innovation ecosystem is a dynamic and multi-layered network that blends the city’s historical strengths with modern development strategies. This system builds on Osaka’s long tradition as a business center and continues to grow through continued policy support and infrastructure investment. The Osaka innovation ecosystem is unique in that it balances local characteristics with international perspectives, traditional industries with emerging technologies, and the needs of large enterprises and startups.

The core of this ecosystem lies in its synergy, with its elements reinforcing each other to form a self-reinforcing cycle of innovation. From advanced research institutions to active entrepreneurial communities, from specialized industry clusters to supportive government policies, each component contributes to the development of the overall system. Osaka is leveraging this ecosystem to shape its unique positioning in the global competition for innovation, especially in areas such as life sciences, smart manufacturing and sustainable development.

Geographical location and infrastructure advantages

Osaka is located in the middle of Honshu Island, Japan. It has a strategic location and is an important hub connecting East Asia and other parts of Japan. As the terminus of the ancient Silk Road, Osaka has continued its tradition as an international trade center and has now developed into a modern global city.

Transportation infrastructure is an important pillar of Osaka’s innovation ecosystem. As a 24-hour international aviation hub, Kansai International Airport provides Osaka with convenient global connections. Osaka Port is one of Japan’s major international trade ports, supporting regional import and export trade. In addition, the developed high-speed rail network, including the Shinkansen and private rail systems, closely connects Osaka to other major cities in Japan, promoting inter-regional business exchanges and technological exchanges.

In terms of urban planning, Osaka focuses on the construction of innovative spaces. Landmark buildings such as Umeda Sky Garden and Nakanoshima Innovation Center not only provide enterprises with a modern office environment, but also become important platforms for promoting innovation exchanges. The facilities have been designed with the needs of innovative businesses in mind, offering flexible workspace, meeting facilities and networking opportunities.

Digital infrastructure is another important aspect of Osaka’s innovation ecosystem. The city has advanced optical fiber networks and 5G coverage, which provides a solid foundation for the construction of digital economy and smart cities. Multiple world-class data centers are located in Osaka, providing enterprises with reliable cloud computing and data storage services.

Industrial structure and main areas of innovation

Osaka’s industrial structure presents diversified characteristics. While maintaining the advantages of traditional manufacturing, it actively promotes the development of emerging industries. This structure enables Osaka to maintain its innovative vitality in multiple fields, while also providing fertile ground for cross-innovation between different industries.

Life sciences and healthcare are one of Osaka’s most representative innovation fields. Osaka is home to many global pharmaceutical giants, including Takeda Pharmaceuticals, and is also home to many biotech start-ups. Caidu Life Science Park is an innovation center in this field, bringing together research institutions, enterprises and medical facilities to form a complete industrial chain. Here, you can find the resources and partners you need from basic research to clinical trials to product commercialization.

Artificial intelligence and information technology are another rapidly growing innovation area in Osaka. Osaka is building a “Smart City Experimental Zone”, attracting many AI, Internet of Things and big data companies. This experimental area is not only a platform for technology development, but also a testing ground for the application of new technologies in actual urban environments. Osaka is at the forefront of promoting the application of AI technology in areas such as manufacturing, healthcare and urban management.

In terms of advanced manufacturing, Osaka is actively promoting the application of Industry 4.0 and smart manufacturing. Relying on its deep industrial foundation, Osaka maintains a leading position in fields such as robotics, new material research and development, and precision instrument manufacturing. Many traditional manufacturing companies are undergoing digital transformation, partnering with technology companies to develop smart factory solutions.

Green technology is another important innovation direction in Osaka. As the Japanese government pushes for carbon neutrality goals, Osaka is increasingly active in innovation in areas such as renewable energy, energy efficiency and sustainable materials. Several research institutions and companies are collaborating to develop next-generation solar cells, hydrogen technology and circular economy solutions.

The cultural and creative industries are innovative fields that reflect Osaka’s unique charm. Combining traditional craftsmanship with modern design, Osaka is becoming an important center for Japan’s creative economy. From fashion design to digital content creation, Osaka offers a vibrant environment for creative talents.

Comparison with other Japanese cities such as Tokyo

Compared with Tokyo, Osaka’s innovation ecosystem presents unique advantages and characteristics. The first is cost-effectiveness. Office and living costs in Osaka are significantly lower than in Tokyo, which is especially important for start-ups and small and medium-sized enterprises. Lower operating costs allow companies to devote more resources to R&D and innovation activities.

The innovation environment in Osaka is more open and inclusive. Compared to Tokyo, Osaka provides greater support for international businesses and provides more foreign language services and cross-cultural exchange opportunities. Institutions such as the Osaka Foreign Business Induction Center (O-BIC) provide comprehensive support to international companies, with specialized services ranging from market entry strategies to talent recruitment.

In terms of industrial characteristics, there are also obvious differences between Osaka and Tokyo. Tokyo focuses more on finance, IT and service industries, while Osaka has unique advantages in manufacturing, life sciences and cultural and creative industries. This difference allows Osaka to attract businesses and talent seeking to develop in these specific areas.

Compared with Kyoto, the innovation atmosphere in Osaka is more commercial and international. Kyoto’s innovative activities tend to be closely related to traditional industries and culture, while Osaka is more focused on modern technology and global markets. This makes Osaka an ideal location for innovative businesses seeking rapid commercialization and international expansion.

Osaka also actively promotes regional collaboration and forms the Kansai Innovation Belt with cities such as Kobe and Kyoto. This regional linkage provides enterprises with broader development space and resource integration opportunities. Enterprises can take advantage of Kobe’s port and logistics advantages and Kyoto’s academic resources, while enjoying Osaka’s business environment and market opportunities.

 Core research institutions and industry-university cooperation opportunities

1. University Research Center

Osaka’s higher education institutions are important engines for promoting regional innovation, especially Osaka University and Osaka Prefectural University. These universities are not only training bases for top talents, but also core positions for cutting-edge scientific research.

As Japan’s top comprehensive research university, Osaka University is a world leader in many fields. Among them, the Immunology Research Center is world-renowned, and many Nobel Prize winners have worked or studied here. Osaka University’s Institute of Industrial Science is committed to interdisciplinary research and has achieved breakthroughs in fields such as materials science, information technology, and bioengineering. The school also has an Innovation and Entrepreneurship Center to provide all-round support for teachers and students in the transformation of their innovative achievements, including patent application, commercialization consulting, and entrepreneurial incubation services.

Osaka Prefecture University is famous for its engineering and applied scientific research. The school’s New Generation Research Institute focuses on cutting-edge fields such as nanotechnology, new energy and environmental science, promoting Osaka’s development in these strategic emerging industries. Osaka Prefecture University also actively cooperates with local small and medium-sized enterprises to help upgrade traditional industries through technology transfer and joint research projects.

These university research centers are not only important places for scientific research, but also bridges between academia and industry. They create opportunities for exchanges and cooperation for enterprises and researchers by organizing academic forums, industry matchmaking meetings and other activities, and promote the practical application of innovative results.

2. National research institute

Osaka is also home to a number of national-level research institutes that play a key role in basic research and applied development, injecting continuous momentum into Osaka’s innovation ecosystem.

The National Institute of Advanced Industrial Science and Technology (AIST) Kansai Center is a branch of one of Japan’s largest public research institutions in the Kansai region. The center’s key research areas include battery technology, biomedical engineering and artificial intelligence. The AIST Kansai Center not only conducts cutting-edge research, but is also committed to the industrialization of research results, and works closely with companies through technology licensing and joint research and development.

The National Center for Cardiovascular Disease Research is another important national research institution located in Osaka. As the top institution for cardiovascular disease research in Japan, the center is a leader in basic medical research, clinical trials and medical device development. It maintains close cooperation with a number of medical device and pharmaceutical companies to promote the rapid translation of innovative results into clinical applications.

In addition, RIKEN also has research facilities in Osaka, focusing on cutting-edge fields such as life sciences and quantum computing. The existence of RIKEN further strengthens Osaka’s strength in basic scientific research and provides a solid scientific foundation for regional innovation.

3. Industry-university cooperation models and successful cases

Osaka’s industry-university cooperation system has developed into a multi-level and multi-channel network, providing strong support for the commercialization of innovative results. This cooperation model not only promotes the transfer of knowledge and technology, but also creates mutually beneficial and win-win opportunities for enterprises and academic institutions.

A typical industry-university cooperation model is through university technology transfer offices (TLOs). For example, Osaka University TLO successfully transferred the new optical material technology developed by the school to a local optoelectronics company. This technology has now been used in the production of high-end displays and has become one of the company’s core competitiveness.

Another common form of collaboration is a joint research laboratory. The immunology research laboratory jointly established by Takeda Pharmaceutical and Osaka University is a successful case. This long-term cooperation project not only promoted the research and development of multiple innovative drugs, but also cultivated a group of high-quality research talents, strengthening Osaka’s leading position in the field of biomedicine.

The Osaka Research Institute of Industrial Technology (ORIST) adopts a unique “researcher dispatch” model. ORIST researchers regularly visit partner companies and directly participate in their R&D activities. This model is particularly popular with small and medium-sized enterprises because it can effectively make up for the lack of R&D resources in these enterprises. Through this cooperation, a small and medium-sized enterprise specializing in environmentally friendly materials has successfully developed a new biodegradable plastic that is now widely used in the food packaging industry.

Another important aspect of industry-university cooperation is entrepreneurial incubation. Osaka University Entrepreneurship Park is a successful example, providing a full range of services such as office space, management consulting and financing matching for start-ups derived from university research. A start-up company focusing on AI-assisted medical diagnosis was incubated here and has now developed into an industry leader.

These diverse industry-university cooperation models and successful cases demonstrate the vitality and efficiency of Osaka’s innovation ecosystem. By promoting close collaboration between academia and industry, Osaka is accelerating the commercialization of innovations and promoting economic development and technological progress throughout the region. This industry-university collaboration not only improves the practical value of research results, but also injects the power of continuous innovation into enterprises, forming a virtuous innovation cycle.

Incubators, accelerators and innovation spaces

1. Government-backed incubators

The Osaka government recognizes the importance of entrepreneurship in promoting economic innovation and development, and therefore actively invests in and supports various incubator projects. These government-backed incubators not only provide physical space for startups, but also provide a full range of entrepreneurial support services, becoming an important part of Osaka’s innovation ecosystem.

Osaka Innovation Hub is one of the most representative government-supported incubators. This innovative space in the heart of Osaka offers not only office space but also multifunctional meeting rooms, display areas and networking space. Osaka Venture Park is unique in its “full cycle” support model. This is where teams can get guidance from the start-up ideation stage. There are corresponding support plans for each subsequent stage such as product development, market testing, and financing docking. For example, they regularly hold “Entrepreneurship Idea Marathons” to help entrepreneurs turn their ideas into viable business plans.

Osaka Entrepreneurship Park has also established an extensive cooperation network with local universities, research institutions and large enterprises. This allows on-site entrepreneurial teams to have easier access to potential technology partners, customers and investors. One successful case is a start-up company focusing on telemedicine for the elderly. Through the introduction of the Osaka Entrepreneurship Park, it established a technical cooperation relationship with a large local electronics company, greatly accelerating its product development process.

Another important government-backed incubator is the Osaka Science and Technology Innovation Center (OSTEC). OSTEC focuses on technology-based entrepreneurial projects, especially in high-tech fields such as biotechnology, new materials and artificial intelligence. OSTEC not only provides laboratories and office space, but also has a team of consultants composed of industry experts to provide entrepreneurs with professional services such as technology assessment, patent application and market analysis. A distinctive feature of OSTEC is its “technology matching” project, which helps entrepreneurs find suitable technology solutions or partners, which is particularly important in technology entrepreneurship.

2. Private incubators and entrepreneurial spaces (such as Knowledge Capital)

In addition to government-supported incubators, numerous private incubators and entrepreneurial spaces have emerged in Osaka, bringing more diversified support and resources to the innovation ecosystem. Private incubators are usually more flexible and able to quickly respond to market needs and provide customized services for companies in specific industries or entrepreneurial stages.

Knowledge Capital is one of Osaka’s most representative private innovation spaces. This comprehensive innovation center located in Osaka Station Kita Ward is not only a physical space, but also a platform that promotes knowledge creation and exchange. What makes Knowledge Capital unique is its “knowledge fusion” concept, which brings together entrepreneurs, researchers, artists and entrepreneurs to encourage cross-field collaboration and innovation. There are not only traditional office and meeting spaces, but also showrooms, laboratories and public communication areas.

Knowledge Capital regularly organizes various innovation activities, such as technology exhibitions, creative workshops and cross-industry exchange meetings. These events create opportunities for resident companies to showcase themselves, find partners and get feedback. For example, a start-up company focusing on AR technology successfully attracted the attention of several large retailers by participating in the “Future Life Exhibition” organized by Knowledge Capital, and eventually reached business cooperation.

Another private entrepreneurial space worthy of attention is GVH Osaka. As the Japanese branch of the global entrepreneur community Global Venture Habitat, GVH Osaka pays special attention to international entrepreneurial projects. It not only provides shared working space, but also organizes language exchange activities, cross-cultural business seminars, etc. to help entrepreneurs better adapt to the international market. A special project of GVH Osaka is the “Global Entrepreneur Exchange Program”, which allows entrepreneurs in Osaka to have the opportunity to settle in entrepreneurial spaces in other countries for a short period of time and expand their international horizons.

3. Business accelerator programs and international entrepreneurial support

As the Osaka innovation ecosystem matures, more and more large enterprises and international organizations have begun to participate, launching various accelerator programs and international entrepreneurial support programs. These projects not only provide entrepreneurs with funds and resources, but also use the market experience and global networks of large companies to help start-ups grow and internationalize quickly.

Panasonic’s “Panasonic Accelerator” project is a typical representative of corporate accelerators. This three-month intensive program selects 10-15 entrepreneurial projects that are consistent with Panasonic’s strategic direction for incubation every year. Selected teams not only receive financial support, but also have access to Panasonic’s R&D facilities and receive direct guidance from company executives. After the project is completed, teams with outstanding performance will have the opportunity to receive strategic investment from Panasonic or become part of its supply chain. One success story is a startup developing smart home systems that successfully integrated its technology into Panasonic’s product line and achieved rapid growth by participating in the Panasonic accelerator.

In terms of international entrepreneurial support, the Osaka Business Support Center for Foreign Enterprises (O-BIC) plays a key role. O-BIC not only provides foreign entrepreneurs with a variety of information and services needed to start a business in Osaka, but also helps them overcome language and cultural barriers. For example, O-BIC’s “Soft Landing Plan” provides international entrepreneurial teams with free office space and business support services for six months to help them successfully enter the Japanese market.

In addition, the Osaka City Government has established partnerships with several international entrepreneurial communities. For example, the entrepreneurial exchange program with Tel Aviv, Israel, selects several Osaka entrepreneurial teams to go to Israel every year to participate in local entrepreneurial activities, and also invites Israeli entrepreneurs to Osaka for exchanges. This kind of international cooperation not only broadens the horizons of Osaka entrepreneurs, but also introduces new innovative ideas and technologies to Osaka.

To sum up, Osaka’s incubators, accelerators and innovation spaces constitute a multi-level and all-round entrepreneurial support system. From large government-supported incubators to flexible private entrepreneurial spaces, from accelerator programs for local companies to international entrepreneurial support, this system can meet the needs of entrepreneurial projects of different types and stages. This diversified support has not only cultivated many successful innovative enterprises, but also continues to attract domestic and foreign innovative talents and resources, promoting the continuous development and improvement of Osaka’s innovation ecosystem.

 Key industrial clusters and parks

1. Life Science Park

Osaka has a long history of advantages in the field of life sciences, and Saito Life Science Park is the epitome of this advantage. Saito Park, located in northern Osaka, is one of the largest biopharmaceutical industry clusters in Japan, covering an area of ​​approximately 1,000 hectares and integrating R&D, production and commercialization.

The core of Caidu Park is its unique “industry-university-medicine” collaborative model. The park not only houses top research institutions such as the Osaka University School of Medicine and the National Center for Circulatory Disease Research, but also attracts many domestic and foreign biopharmaceutical companies to settle in. This tight spatial layout promotes frequent communication and cooperation between research institutions, medical units and enterprises. For example, the Osaka University Protein Research Institute in the park has established joint laboratories with a number of pharmaceutical companies to accelerate the development of new drugs.

The park’s infrastructure is also an important part of its appeal. There are not only advanced shared laboratories and small test workshops, but also specialized biosafety laboratories, which can meet the needs of various biomedical research. In addition, the park also provides a full range of commercialization support services, including intellectual property consulting, clinical trial coordination and international market access, which are especially important for start-ups.

One of the success stories of Caidu Park is a start-up company focusing on cancer immunotherapy. The company leveraged the park’s resources and network to complete the entire process from proof of concept to clinical trials in just three years, and has now become a star company in Japan’s biotechnology field.

2. IT and artificial intelligence clusters

Osaka’s IT and artificial intelligence industry clusters are mainly concentrated around Umeda Innovation Mile. This area is not only strategically located in the commercial center of Osaka, but also has complete transportation and communication infrastructure, making it a gathering place for IT companies and artificial intelligence research institutions.

The core of Umeda Innovation Avenue is Grand Front Osaka, a comprehensive innovation space that brings together various IT and AI companies from start-ups to multinational corporations. The center has a dedicated AI laboratory equipped with high-performance computing facilities and a big data processing platform, providing enterprises with an ideal environment for developing and testing AI applications.

A distinctive feature of this cluster is its strong network of industry-university-research collaborations. The Artificial Intelligence Research Center of Osaka University and a number of IT companies have established joint research laboratories here to promote the development of core AI technologies such as natural language processing and computer vision. At the same time, hackathons, AI challenges and other activities are regularly held here to stimulate innovative thinking and cross-border cooperation.

One of the success stories is a start-up company focusing on AI-assisted medical diagnosis. The company used the resources within the cluster and cooperated with Osaka University School of Medicine and several local hospitals to develop a high-precision medical imaging diagnosis AI system, which has now been put into use in many Japanese hospitals.

3. Advanced manufacturing base

Osaka has a long tradition of manufacturing, and the Sakai Izumi North Seaside Industrial Zone represents its latest development in advanced manufacturing. This industrial zone covering an area of ​​about 2,000 hectares has been transformed from a traditional heavy industry base into an advanced manufacturing cluster integrating intelligent manufacturing, new materials, clean energy and other fields.

The transformation of the Sakai Izumi region is due to its comprehensive infrastructure and flexible industrial policies. Not only does it have a deep-water port and a developed road network, it also has a dedicated industrial water and energy supply system. The local government has also launched a series of preferential policies to encourage companies to invest in smart manufacturing equipment and develop green production technologies.

A distinctive feature of this base is its complete industrial chain layout. From raw material suppliers to component manufacturers, from system integrators to end product manufacturers, an efficient industrial ecosystem has been formed. This close industrial chain not only improves production efficiency, but also promotes technological innovation and knowledge dissemination.

For example, the solar panel production base established by Sharp here is a typical case. This factory not only adopts the most advanced automated production lines, but also forms close cooperative relationships with surrounding material suppliers and equipment manufacturers, greatly improving production efficiency and product innovation speed.

4. Emerging Technology Park

With the rise of the smart city concept, Osaka is also actively deploying related emerging technology parks. Among them, the most representative one is the Yumeshima smart city experimental zone located on the artificial island in Osaka Bay. This area of ​​about 390 hectares is planned as a comprehensive experimental park integrating smart life, green energy and future transportation. The core concept of Mengzhou Experimental Zone is to apply the latest urban technology to real life scenarios. A large number of IoT devices and 5G networks are deployed in the park, providing an ideal testing environment for various smart city applications. For example, cutting-edge technologies such as self-driving bus systems, smart grids, and urban digital twin platforms are being tested here.

An important feature of the park is its openness and inclusiveness. Unlike traditional closed R&D parks, Mengzhou welcomes the public to participate in various experimental projects. Residents can actually experience and evaluate various smart city solutions, providing valuable feedback for further optimization of the technology. In addition, Mengzhou has also established a dedicated innovation center to provide work space and experimental facilities for entrepreneurs and researchers in related fields. Smart city forums and innovation competitions are also held regularly here, attracting participation from experts and companies from around the world. Among them is a start-up company focusing on intelligent waste classification systems. The company tested its AI-driven waste sorting equipment in Mengzhou, continuously optimizing the product through feedback from actual users. Now, this system has been put into use in many communities in Osaka, greatly improving the efficiency of garbage collection.

These key industrial clusters and parks in Osaka demonstrate the city’s strategic vision and execution capabilities in promoting innovation and industrial upgrading. By creating a professional and intensive innovation environment, Osaka has not only strengthened its own industrial advantages, but also provided an ideal development platform for various innovative entities. The success of these clusters and parks further consolidates Osaka’s status as an important innovation center in Asia and lays a solid foundation for the city’s long-term sustainable development.

Government support policies and international resources

1. Innovation support policies and special support measures for foreign enterprises

The Osaka government recognizes the importance of innovation to economic development and has therefore formulated a series of comprehensive innovation support policies. These policies not only target local companies, but also take into special consideration the needs of foreign companies, aiming to create an open and inclusive innovation ecosystem.

In terms of fiscal and taxation policies, Osaka has launched the “Innovative Enterprise Tax Relief Plan”. This plan provides corporate tax exemptions of up to 50% for companies engaged in R&D activities for up to 5 years. This policy is particularly beneficial to start-ups, helping them survive the early capital-intensive stage. For example, a foreign start-up company focused on developing new degradable plastics saved a lot of taxes and fees in the first three years through this policy, reinvested funds in research and development, and accelerated the commercialization process of its products.

For foreign companies, Osaka has also launched “foreign investment promotion subsidies.” This policy provides subsidies of up to 200 million yen to foreign companies that establish R&D centers or regional headquarters in Osaka. The amount of the subsidy is based on the size of the investment and the jobs created. This policy has attracted many multinational companies to set up Asia-Pacific R&D centers in Osaka. For example, a European medical device company used this policy to establish its largest R&D base in Asia in Osaka.

In terms of talent policy, Osaka has implemented the “International Talent Introduction Plan”. The program simplifies the visa application process for highly skilled foreign professionals and provides housing subsidies and educational support for their children. This policy has greatly improved Osaka’s attractiveness to international talents and provided local innovative companies with more choices of high-quality talents.

In addition, Osaka has also established an “Innovation Project Fast Track” to provide a fast track for administrative approval and licensing for projects with significant innovation potential. This measure greatly shortens the time from concept to market for innovative products, and is particularly beneficial to entrepreneurial projects in emerging technology fields.

2. Osaka Foreign Business Induction Center (O-BIC) Services

The Osaka Business and Investment Center (O-BIC) is a non-profit organization jointly established by Osaka City, Osaka Prefecture and the Osaka Chamber of Commerce and Industry. It aims to provide comprehensive services to foreign companies interested in investing or establishing business in Osaka. support and service. The establishment of O-BIC reflects Osaka’s emphasis on internationalization and foreign investment. It has greatly lowered the threshold for foreign companies to enter the Osaka market by providing professional and efficient services.

O-BIC’s core services include market information consultation, business partner docking, administrative procedure assistance and life support, etc. In terms of market information consulting, O-BIC has an experienced consulting team that can provide foreign companies with detailed market analysis reports, including industry dynamics, competition landscape and policy environment. This information is crucial for companies to formulate development strategies in Osaka. For example, an American medical technology company successfully identified the unique needs of the Osaka market through the medical device market report provided by O-BIC, adjusted its product line in a targeted manner, and quickly occupied a leading position in the market segment.

In terms of business partner docking, O-BIC uses its extensive local network to help foreign companies find suitable suppliers, distributors or partners. O-BIC organizes multiple business matching meetings every year to build a communication platform for foreign companies and local companies. One successful case is a German industrial automation company that found an ideal local agent through a matchmaking meeting organized by O-BIC and established a sales network covering the entire Kansai region in a short period of time.

For administrative procedures, O-BIC provides one-stop services to assist foreign companies with various procedures such as company registration, tax registration, and work visa application. O-BIC staff are not only familiar with various procedures, but also maintain close contact with relevant government departments and can effectively simplify and accelerate these processes. This service greatly reduces the administrative burden of foreign enterprises, allowing them to devote more energy to actual business operations.

In terms of life support, O-BIC provides comprehensive settlement assistance to employees of foreign companies, including housing recommendations, school information, medical resource introduction, etc. These services help foreign employees and their families adapt to life in Osaka more quickly, thereby improving the stability of the company’s talent pool in Osaka.

3. Introduction to the “Global Innovation Creator” project

The “Global Innovation Creator” (GIC) project is a flagship program launched by the Osaka City Government to promote international innovation cooperation. The project aims to build Osaka into Asia’s leading international innovation hub by attracting global innovation resources and stimulating the development of the local innovation ecosystem.

The core content of the GIC project includes three aspects: the introduction of international innovative talents, the incubation of transnational innovation projects, and the construction of a global innovation network. In terms of the introduction of international innovative talents, the GIC project selects 100 high-potential innovative talents from all over the world every year and provides them with a one-year innovation practice opportunity in Osaka. These talents not only receive generous living allowances, but also have the opportunity to intern or carry out project cooperation at top companies and research institutions in Osaka. For example, an AI expert from Israel joined the research team at Osaka University through this project, and the machine learning algorithms he developed have now been adopted by many Japanese companies.

In terms of incubating transnational innovation projects, the GIC project has established a special international innovation fund to provide seed capital and incubation support for innovative projects with transnational backgrounds. These projects must include at least one local Osaka team member to promote the combination of international innovation experience and local resources. One successful case is a smart city solution project jointly launched by entrepreneurs from the United States, Japan and Singapore. This project was field tested in Osaka with the support of GIC and has been promoted and applied in many Asian cities.

The construction of a global innovation network is another important aspect of the GIC project. GIC has established strategic partnerships with many innovation centers around the world, including well-known incubators and accelerators in Silicon Valley, Tel Aviv, London and other places. Through this network, innovation projects in Osaka can more easily access international resources and market opportunities. At the same time, GIC also regularly organizes international innovation summits and roadshows to build a communication platform for Osaka and the global innovation community.

The GIC project also pays special attention to international cooperation in the field of emerging technologies. For example, in the intersection of artificial intelligence and biotechnology, GIC launched the “AI+BIO Innovation Alliance”, attracting the participation of relevant companies and research institutions from around the world. This alliance not only promotes technical exchanges, but also promotes the launch of multiple cross-border collaborative research projects.

Osaka’s supportive government policies and international resources reflect the city’s determination and wisdom in promoting innovation and internationalization. Through comprehensive innovation support policies, professional foreign enterprise services and forward-looking international innovation projects, Osaka is building an open, dynamic and globally competitive innovation ecosystem. This not only provides development opportunities for local companies, but also provides a stage for global innovators and companies to display their talents in the Asian market.

Financing channels and financial support

1. Venture capital and angel investment networks

Osaka’s venture capital and angel investment network has shown a booming trend in recent years, injecting strong financial power into the local innovation and entrepreneurship ecosystem. This network not only includes local investment institutions, but also attracts many investors from Tokyo and international markets, forming a diversified and highly active investment ecosystem.

In the field of venture capital, Osaka has formed a number of investment funds focusing on different stages and fields. For example, the “Osaka Innovation Fund” is a hybrid fund jointly funded by the Osaka City Government and private investors. It focuses on early-stage technology entrepreneurial projects, especially in the fields of life sciences, artificial intelligence, and clean energy. The fund not only provides financial support, but also uses its extensive industry network to provide mentoring and business matching services to entrepreneurs. One successful case is a start-up company focused on developing new early cancer diagnosis technology. Through the fund’s US$1 million seed round investment, it successfully completed technology verification and attracted subsequent large-scale financing.

On the other hand, the angel investment network has also shown strong vitality in Osaka. “Kansai Angel Network” is the largest angel investor alliance in the region, bringing together more than 300 active individual investors. This network not only provides entrepreneurs with access to early stage funding, but also serves as an important platform for experience exchange and project screening. The network holds monthly “Entrepreneurship Project Roadshow Days” to provide entrepreneurs and investors with opportunities for face-to-face communication. For example, an entrepreneurial team developing an AR navigation application received joint investment from five angel investors through this platform, totaling 50 million yen.

In addition, Osaka is also actively introducing international venture capital resources. One of Japan’s largest startup accelerators, “500 Startups Japan”, has set up a branch in Osaka, providing seed funding and acceleration services to 10-15 local projects every year. This not only brought funds to Osaka entrepreneurs, but also introduced Silicon Valley entrepreneurial ideas and international network resources.

2. Government Innovation Fund

The Osaka government recognizes the critical role of public funds in promoting innovation, especially in supporting high-risk, high-return cutting-edge technology projects, and has therefore established a number of targeted government innovation funds. These funds not only provide financial support, but are often combined with other policy tools to form a comprehensive innovation support system.

The “Osaka Future Innovation Fund” is the largest and most influential among them. The fund is funded by the Osaka Prefectural Government, with a total scale of 50 billion yen, and is dedicated to supporting innovative projects in strategic emerging industries such as artificial intelligence, biotechnology, and new materials. A unique feature of the fund is its “ladder” investment model. It provides matching financial support to projects at different stages of development, from small grants (up to 10 million yen) in the proof-of-concept stage to large investments (up to 1 billion yen) in the industrialization stage. This model ensures that innovative projects receive necessary financial support at all critical stages.

A typical case is a start-up company focused on developing a new generation of quantum computing chips . The company initially received 10 million yen in proof-of-concept funding to complete preliminary technical feasibility studies. After making breakthrough progress, the company received a follow-up investment of 500 million yen to establish a prototype production line. Currently, the company has become one of the leaders in quantum computing in Japan.

Another important government fund is the “Osaka Green Innovation Fund”. This is a fund focused on supporting environmentally friendly technologies and sustainable development solutions with a total scale of 30 billion yen. The fund not only provides financial support, but also assists companies in connecting with various urban infrastructure in Osaka City, providing scenarios for field testing and application of new technologies. For example, a company developing a new type of solar cell not only received 200 million yen in R&D funding through the fund, but also had the opportunity to conduct large-scale field tests on public buildings in Osaka City.

3. Special projects for banks and financial institutions

Banks and financial institutions in Osaka are also actively involved in supporting innovation and entrepreneurship, launching a number of special credit and investment projects for innovative companies. These projects often combine the robustness of traditional financial institutions with the flexible needs of innovative projects, providing entrepreneurs with another important financing channel.

Osaka’s largest local bank, Osaka Castle Bank (a fictitious name only), has launched an “Innovative Business Growth Support Plan.” The program has designed a special credit evaluation system for high-tech start-ups, which not only considers financial indicators, but also focuses on evaluating factors such as technological innovation, team background and market potential. This allows many technology startups that have traditionally struggled to obtain bank loans to obtain necessary financial support. The plan also provides interest rate concessions and flexible repayment period adjustments. For example, a startup company focusing on the development of industrial robot control systems received a low-interest loan of 50 million yen through this program, which greatly eased the financial pressure during the research and development period.

In addition to traditional loan businesses, some financial institutions have also established dedicated innovative investment departments. The “Future Innovation Investment Department” established by Sumitomo Mitsui Banking Corporation in Osaka is a typical example. The unit not only provides direct equity investments but also sets up an accelerator for innovative projects. The selected entrepreneurial teams will not only receive financial support, but also enjoy professional guidance from the bank in customer resources, financial management, etc. One successful case is a startup company developing blockchain supply chain solutions. Through this project, it not only received an investment of 100 million yen, but also successfully connected with a number of large manufacturing customers.

In addition, the Osaka Stock Exchange also provides innovative companies with more convenient listing channels. The “Innovative Enterprise Segment” it established has set more flexible listing conditions for high-growth but not yet profitable technology companies. This provides new financing channels and exit opportunities for many fast-growing innovative companies. For example, a biotechnology company specializing in gene therapy successfully went public through this sector and raised 5 billion yen in funds, greatly accelerating its new drug research and development process.

Osaka has built a diversified and rich-level system in terms of financing channels and financial support. From the early support of venture capital and angel investment, to the strategic guidance of government innovation funds, to the innovative adaptation of traditional financial institutions, a complete ecosystem has been formed that can meet the needs of different stages and types of innovative projects. This system not only provides innovators with necessary financial support, but also comprehensively supports the development of innovative projects through various supporting services and resource docking. As this system continues to improve and develop, Osaka is expected to attract more innovation resources and further enhance its status and influence as an innovation center.

Innovation Network and Cooperation Opportunities

1. Annual Innovation Expo and Industry Conference

Osaka hosts a series of large-scale and far-reaching innovation expos and industry conferences every year. These events are not only platforms to showcase the latest technologies and innovations, but also important places to promote industry exchanges and find cooperation opportunities. These events attract innovators, entrepreneurs, investors and industry experts from around the world, injecting strong innovation momentum into Osaka.

The most representative one is the “Osaka Innovation Week” held in October every year. This is a week-long large-scale comprehensive innovation event, including exhibitions, forums, roadshows, business matching and other forms. The activities cover many cutting-edge fields such as artificial intelligence, biotechnology, new energy, and intelligent manufacturing. In the 2023 event, more than 1,000 companies and institutions participated in the exhibition, attracting more than 30,000 professional visitors from more than 50 countries. The total amount of cooperation intentions and investment agreements reached during the event exceeded 100 billion yen.

For example, at Osaka Innovation Week 2023, a local artificial intelligence startup successfully attracted the attention of a large medical equipment manufacturer from the United States by demonstrating its innovative technology in the field of medical image analysis. The two parties quickly launched in-depth discussions after the meeting and eventually reached a strategic cooperation agreement. The startup’s technology will be integrated into the American company’s next-generation medical imaging equipment.

In addition to comprehensive innovation expos, Osaka also regularly hosts industry-specific professional conferences. For example, the “Kansai Life Science Forum” held in March every year is an important event in the field of biomedicine. The three-day forum brings together life science researchers, biotech companies and pharmaceutical investors from around the world. The forum not only includes the display of the latest research results and academic exchanges, but also has a dedicated innovative project roadshow session, providing biomedical start-ups with opportunities to showcase themselves, seek cooperation and financing.

At the 2024 forum, an Osaka start-up company focused on developing new cancer immunotherapies attracted widespread attention during the roadshow session. They innovatively combined nanotechnology with immunotherapy to develop a more precise treatment with fewer side effects. This project not only won the Best Innovation Award, but also received financing intentions from multiple venture capital institutions on the spot, totaling 2 billion yen.

2. Entrepreneur exchange activities and cross-cultural business support

Recognizing the importance of networking and communication for entrepreneurs, Osaka has established a series of regular entrepreneur exchange activities and provides comprehensive cross-cultural business support. These measures are designed to help entrepreneurs, especially international entrepreneurs, better integrate into Osaka’s innovation ecosystem and overcome challenges caused by cultural differences.

“Osaka Startup Café” is a weekly exchange event for entrepreneurs. Every Thursday evening, entrepreneurs from different backgrounds gather together to share experiences, discuss challenges, and look for opportunities for collaboration. This event combines a relaxed atmosphere with structured discussions, which not only ensures the depth of communication but also makes participants feel relaxed and happy. Each event will invite a successful entrepreneur or industry expert as a special guest to share their entrepreneurial stories and unique insights.

For example, at an event in February 2024, an artificial intelligence entrepreneur from India shared how he applied his technology in the field of computer vision to manufacturing quality control in Japan. His experience not only provided valuable insights to other technology entrepreneurs, but also led to preliminary negotiations on several cross-border cooperation projects.

In order to support international entrepreneurs to better conduct business in Osaka, the Osaka International Business Center provides comprehensive cross-cultural business support services. This includes Japanese business training, Japanese business etiquette guidance, legal and tax consulting, and more. The center also organizes “Cultural Bridge” workshops to help international entrepreneurs understand Japanese business culture, while also helping local Japanese companies to better cooperate with international partners.

One such success story is a cybersecurity startup from Israel . By participating in the “Cultural Bridge” workshop, they learned how to conduct product demonstrations and business negotiations in a manner consistent with Japanese business habits without losing the spirit of innovation. This greatly improved their success rate in cooperating with large Japanese companies, eventually leading to an important cooperation agreement with a large Japanese financial institution.

3. Promote international cooperation and innovation projects

The Osaka City Government recognizes the importance of international cooperation in promoting innovation and therefore actively implements a series of programs aimed at promoting international cooperation on innovation projects. These plans not only introduce world-leading innovation resources to Osaka, but also provide an important platform for local companies to explore international markets.

The “Osaka Global Innovation Partnership Program” is the most representative project among them. The program selects 5 key areas (such as artificial intelligence, biotechnology, clean energy, etc.) every year, looks for projects with the most innovative potential around the world, and invites them to Osaka for a 6-month incubation. Selected international teams not only receive financial support (up to 50 million yen per project), but also enjoy free office space, laboratory facilities, and opportunities to collaborate with local Osaka companies and research institutions.

In 2023, a quantum computing start-up company from Germany came to Osaka through this project. During the six-month incubation period, they not only improved the technical solution, but also established an in-depth cooperative relationship with the quantum research team of Osaka University, and successfully reached a technology licensing agreement with a large IT company in Japan. This project not only helped the German company successfully enter the Japanese market, but also injected new vitality into Osaka’s quantum computing industry.

Another important initiative is the “Osaka-Silicon Valley Innovation Bridge” project. This project aims to promote the deep integration of the innovation ecosystems of Osaka and Silicon Valley. Projects include regular entrepreneur exchange programs, joint innovation challenges, and joint investment funds between venture capital institutions in both places.

Through this project, 20 entrepreneurs from Osaka have the opportunity to go to Silicon Valley for a month of in-depth exchanges every year, and 20 entrepreneurs from Silicon Valley also come to Osaka. This two-way exchange not only brought new entrepreneurial ideas and technologies, but also led to multiple trans-Pacific cooperation projects. For example, an Osaka-based industrial IoT startup met a Silicon Valley artificial intelligence company through this project, and the smart factory solutions jointly developed by the two companies have now been applied in the factories of multiple manufacturing giants in Japan and the United States.

In addition, Osaka also actively participates in and hosts international innovation cooperation forums. In 2024, Osaka hosted the first “Asia-Pacific Innovation Cooperation Forum”, attracting government representatives, innovation institutions and enterprises from 15 countries to participate. A number of international innovation cooperation agreements were signed at the forum, including the establishment of an Asia-Pacific innovation talent flow mechanism and the joint establishment of a transnational innovation fund. These measures will further promote in-depth cooperation between Osaka and other innovation centers.

Industry-specific guidelines and development trends

1. Biotechnology and Healthcare

Osaka has a deep foundation and huge development potential in the fields of biotechnology and medical health. The development of this field mainly focuses on the following aspects: regenerative medicine, precision medicine, medical device innovation and digital health.

Regenerative medicine is one of Osaka’s key development directions. Professor Shinya Yamanaka of Osaka University won the 2012 Nobel Prize in Physiology or Medicine for the discovery of induced pluripotent stem cells (iPS cells). This breakthrough research laid a solid foundation for Osaka in the field of regenerative medicine. Currently, the “Regenerative Medicine Innovation Center” is under construction in Osaka and is expected to be completed in 2025. The center will bring together the world’s top regenerative medicine research teams and provide full-chain support from basic research to clinical application.

In terms of precision medicine, Osaka is promoting the combination of genomics and big data analysis. The “Osaka Precision Medicine Alliance” has brought together more than 20 hospitals, research institutions and biotechnology companies to jointly build a database containing genomic data of more than 1 million people. This database not only supports many important medical studies, but also promotes the development of multiple targeted treatment options. For example, a local biotech start-up used this database to successfully develop a lung cancer targeted drug targeting specific genetic mutations, which has now entered clinical trials.

Medical device innovation is an important area where Osaka’s traditional manufacturing advantages are combined with biomedicine. Osaka’s precision machinery manufacturing technology provides a solid foundation for medical device innovation. Currently, Osaka is focusing on the development of minimally invasive surgical instruments, smart prosthetics and medical robots. Among them, the minimally invasive surgical robot system developed by an Osaka medical device company has obtained marketing approval in Japan and Europe and is expected to occupy 20% of the global market in the next five years.

Digital health is one of the fastest growing fields in recent years. Osaka is promoting the application of artificial intelligence, the Internet of Things and big data in the medical and health field. The “Osaka Digital Health Innovation Park” has attracted more than 50 start-up companies to settle in. These companies focus on developing innovative solutions such as telemedicine, health monitoring, and disease prediction. For example, an AI-assisted diagnosis system developed by a start-up company was widely used during the COVID-19 epidemic, greatly improving diagnosis efficiency and accuracy.

2. Artificial Intelligence and Information Technology

Osaka is working hard to become the center of artificial intelligence and information technology in western Japan. The development of this field mainly focuses on the following directions: the application of artificial intelligence in traditional industries, 5G and IoT technology, blockchain and financial technology, and quantum computing.

In terms of artificial intelligence applications, Osaka is promoting the deep integration of AI technology with traditional advantageous industries such as manufacturing, medical health, and logistics. The “Osaka AI Industry Alliance” has organized more than 100 projects to apply AI technology to these fields. For example, a local AI company cooperated with the Port of Osaka to develop an AI-based smart container management system, which greatly improved the port’s operational efficiency and shortened container processing time by an average of 30%.

The development of 5G and IoT technologies is providing strong support for Osaka’s smart city construction. Osaka has built Japan’s largest 5G test bed, covering major areas of the city. Many telecommunications companies and technology companies are testing various innovative applications on this platform, including autonomous driving, telemedicine, smart factories, etc. Among them, a project that has attracted much attention is the use of 5G and IoT technology for real-time monitoring and management of urban infrastructure, which not only improves urban operational efficiency, but also greatly enhances the ability to respond to natural disasters.

Blockchain and financial technology are emerging areas that Osaka is developing vigorously. The “Osaka Fintech Innovation Center” has incubated more than 40 fintech startups. These companies are developing a variety of innovative financial services, from cross-border payments to robo-advisory, from supply chain finance to digital asset management. It is particularly worth mentioning that Osaka is working with the Bank of Japan to carry out a pilot project for a digital yen, which may have a profound impact on the future financial system.

Quantum computing is a cutting-edge technology field deployed in Osaka. Although it is still early days, Osaka has already begun to make strategic investments in this area. Osaka University’s Quantum Information Research Center is cooperating with a number of technology companies to develop practical quantum computing technology. One high-profile project is using quantum computing to optimize traffic flow, which preliminary tests show could reduce congestion times in cities by more than 20%.

3. Advanced manufacturing ecosystem

As an important industrial base in Japan, Osaka is actively promoting the transformation and upgrading of the manufacturing industry and creating an advanced manufacturing ecosystem. The development of this ecosystem mainly focuses on the following aspects: intelligent manufacturing, new material research and development, green manufacturing and industrial design innovation.

Smart manufacturing is at the core of Osaka’s manufacturing transformation. Osaka is promoting the local implementation of Industry 4.0 and encouraging companies to use artificial intelligence, Internet of Things, big data and other technologies to transform traditional production lines. The “Osaka Smart Factory Alliance” has helped more than 100 small and medium-sized enterprises achieve intelligent transformation of their production processes. Among them, a medium-sized enterprise that produces precision instruments improved production efficiency by 40% and reduced product defective rates by 60% by introducing an intelligent manufacturing system.

Research and development of new materials is the key to supporting advanced manufacturing. Osaka has a profound research foundation in fields such as nanomaterials, functional polymer materials, and advanced metal materials. The “Osaka New Materials Innovation Center” brings together top scientific researchers from universities, research institutions and enterprises, and is committed to developing disruptive new materials. Recently, a new lightweight high-strength alloy material developed by the center has been applied in the aerospace field, and is expected to significantly reduce the weight of aircraft and improve fuel efficiency.

Green manufacturing is an important measure for Osaka to respond to the challenge of global climate change. Osaka is promoting the low-carbon transformation of the manufacturing industry, encouraging companies to use clean energy, improve energy efficiency, and reduce waste emissions. The “Osaka Green Manufacturing Fund” has supported more than 50 green manufacturing projects. For example, a chemical company successfully reduced carbon emissions by 30% and production costs by 15% by transforming its production process.

Industrial design innovation is an important means to enhance the competitiveness of Osaka’s manufacturing industry. Osaka is striving to combine its deep craft traditions with modern design concepts. “Osaka Industrial Design Center” holds multiple design thinking workshops every year to help manufacturing companies improve their product design capabilities. One successful case is a traditional kitchenware manufacturer that redesigned its product line by participating in these workshops. It not only greatly improved the aesthetics and functionality of the products, but also successfully opened up the high-end market, increasing the company’s revenue within two years. An increase of 50%.

4. Cultural and creative industries

Osaka is vigorously developing cultural and creative industries, aiming to turn its rich cultural resources into economic advantages. The development of this field mainly focuses on the following aspects: digital content creation, fashion design, food culture innovation and the modernization of traditional crafts.

Digital content creation is an emerging force in Osaka’s cultural and creative industry. Osaka is building a “Digital Content Creative Park” to provide support for digital content creators such as animation, games, and virtual reality. This park has attracted more than 30 digital content companies to settle in. Among them, a local game development company recently launched a mobile game that incorporates elements of traditional Japanese culture. The number of downloads worldwide exceeded 100 million. It not only achieved commercial success, but also promoted the international spread of Japanese culture.

Fashion design is an important part of Osaka’s cultural and creative industry. Osaka is building the “Fashion Capital of Asia” and holds the “Osaka Fashion Week” every year, attracting designers and fashion brands from all over the world. Osaka has also established a “New Designer Support Program” to select 10 potential young designers every year and provide financial support and business guidance. Through this program, several emerging fashion brands that have gained international recognition have been incubated.

Food culture innovation is Osaka’s unique advantage. As the “Kitchen of the World”, Osaka is promoting the integration of traditional cuisine and modern dining concepts. The “Osaka Food Innovation Laboratory” is conducting a series of innovative experiments, such as developing new healthy foods and exploring food sustainability. One eye-catching project is the use of 3D printing technology to make traditional wagashi, which not only retains the taste and flavor of traditional delicacies, but also greatly improves production efficiency, allowing this traditional delicacy to be promoted more widely.

The modernization of traditional crafts is an important way to protect cultural heritage and create economic value. Osaka is encouraging the combination of traditional craftsmanship with modern design, new materials, and new technologies. The “Osaka Craft Innovation Fund” has supported more than 100 traditional craft innovation projects. For example, a traditional fan-making workshop collaborated with material scientists to develop a new type of fan that not only retains traditional beauty but also has air purification functions, which has been welcomed by young consumers.

5. Innovation opportunities for Expo 2025

The 2025 World Expo will be held in Osaka, which brings huge innovation opportunities to Osaka. Osaka is promoting a series of innovative projects around the Expo’s theme of “Designing Future Society, Imagining Our Lives.” These projects focus on the following areas: sustainable urban solutions, future healthcare, next-generation transportation systems, and immersive experience technologies.

In terms of sustainable urban solutions, Osaka is building a “Future City Experimental Zone” at the Expo site. This area will showcase and test a variety of advanced urban technologies, including smart grids, vertical farms, water recycling systems, and more. Among them, one project that has attracted much attention is the “zero-carbon building complex”. These buildings can not only achieve energy self-sufficiency, but also transmit excess clean energy to surrounding communities.

Future medical health is another focus of the Expo. Osaka is planning to build a “Healthy Future Pavilion” where cutting-edge medical technologies from gene therapy to brain-computer interfaces will be displayed. One eye-catching project is the “Virtual Clinic”, which allows visitors to conduct remote diagnosis and treatment with top experts from around the world through holographic imaging technology. This project not only demonstrates the possibilities of future medical care, but also provides new ideas for solving the problem of uneven distribution of medical resources.

Next-generation transportation systems are an important area of ​​innovation in preparation for the World Expo. Osaka is developing a comprehensive intelligent transportation system, including self-driving buses, air taxis, smart subways, etc. Among them, the “Air Mobile Platform” project is planned to be put into use during the World Expo. This will be the world’s first large-scale commercial operation of the air taxi system.

Immersive experience technology will bring unprecedented experience to Expo visitors. Osaka is developing a series of innovative projects that combine virtual reality, augmented reality and mixed reality. For example, the “Time Travel” project will allow visitors to “travel” to different historical periods or future scenes through VR technology to experience Osaka’s past, present and future. Another project, “Full Sensory City”, will allow visitors to fully experience the cultural and natural environments around the world through multi-sensory stimulation technology.

These innovative projects for the 2025 World Expo will not only add highlights to the World Expo, but more importantly, they will become a test field and display window for future innovative development in Osaka and even Japan as a whole. Through these projects, Osaka hopes to demonstrate its leadership in technological innovation and sustainable development to the world, while also providing an excellent platform for local businesses and innovators to showcase themselves and seek global cooperation. Osaka From biotechnology to artificial intelligence, from advanced manufacturing to cultural creativity, Osaka is working hard to create an all-round, multi-level innovation ecosystem.

Practical suggestions and conclusions

1. How to choose suitable innovation resources

Choosing appropriate innovation resources is the key for companies to successfully carry out innovation activities in Osaka. Osaka provides a rich and diverse innovation resources, including research institutions, incubators, accelerators, venture capital, talent pools, etc. When selecting these resources, companies need to consider multiple factors and develop a systematic evaluation and selection strategy.

Enterprises should clarify their innovation needs and goals. This includes determining the direction of innovation (such as product innovation, process innovation, business model innovation, etc.), as well as the stages of innovation (such as proof of concept, prototype development, commercialization, etc.). Only when these are clarified can corresponding innovation resources be found in a targeted manner.

Businesses need to fully understand Osaka’s innovation ecosystem. This includes studying Osaka’s industrial structure, innovation policies, major innovation institutions, etc. The Osaka City Government’s official website and various innovation reports are good sources of information. In addition, participating in various innovation forums and exhibitions held in Osaka is also an effective way to understand the innovation ecosystem.

When specifically selecting innovation resources, companies can consider the following aspects:

• Professional field matching: Choose an institution with deep accumulation and good reputation in the field you are concerned about. For example, if you are a biotech company, consider partnering with Osaka University’s School of Medicine or the “Regenerative Medicine Innovation Center.”
• Completeness of resources: Evaluate whether the organization can provide full-chain support from technology research and development to marketization. Some comprehensive innovation centers, such as the “Osaka Innovation Hub”, can provide such one-stop services.
• Network effects: Consider whether the organization has an extensive network of collaborations. A good network can help you integrate into the local innovation ecosystem faster and find potential partners and customers.
• Degree of internationalization: If you are a foreign company, you can give priority to institutions that have experience in international cooperation and can provide multi-lingual services.
• Financial support: Evaluate whether the institution can provide financial support or help connect investors. For example, the “Osaka Venture Capital Fund” specifically supports innovative companies that have settled in Osaka.

It is recommended that companies do not rely solely on written materials, but conduct on-site inspections and personal experiences. Many innovative organizations offer short-term residency or experiential programs, which are a great opportunity to see what they’re really like. At the same time, you can also gain valuable first-hand information by communicating with other companies that have already used these resources.

2. Cultural differences and business etiquette considerations

When doing business in Osaka, it is important to understand and respect local culture and business etiquette. Although Osaka is considered more open and forthright than Tokyo, it still retains many traditional Japanese business culture characteristics. Understanding these cultural differences and etiquette can help you integrate into the local business environment more smoothly and establish good business relationships.

In business interactions, it is important to respect hierarchy. In meetings or business situations, pay attention to introductions and greetings in order of position. When speaking with senior managers, maintain a healthy dose of respect and humility. At the same time, Osaka people also pay more attention to age. Generally speaking, older people enjoy higher respect and decision-making power.

Secondly, there is a strong emphasis on building personal relationships in Osaka’s business culture. There is often a period of informal communication before formal discussions, which is seen as an important step in building trust. So don’t rush to get to the point, but be patient with small talk and small conversations. In addition, in Osaka, business entertainment such as dinner or cocktail parties are also important ways to build relationships. Please do not refuse such invitations easily.

In terms of business etiquette, the following points require special attention:

• Business card exchange: In Japan, business cards are considered an extension of the person. When exchanging business cards, you should hold the business card in both hands with the front facing the other person. When you receive the other party’s business card, you should read it carefully and put it on the table or in a business card holder. Do not put it in your pocket casually.
• Dress Code: The business dress code in Osaka is slightly more relaxed than in Tokyo, but for formal occasions, men should still wear dark suits and women should wear conservative suits.
• The concept of punctuality: Punctuality is extremely important in Japanese culture. Arriving 5-10 minutes early is considered appropriate, while arriving late is considered extremely rude.
• Gift culture: Giving small gifts in business interactions is a common practice. Gifts should be beautifully wrapped but not so expensive that they burden the other person.
• Dining etiquette: At a business banquet, wait until the host starts eating before using chopsticks. When using chopsticks, do not point at people or objects with chopsticks, and do not insert chopsticks into rice.

Although Osakans are known for their forthrightness, they still tend to be reserved and tactful in business situations. Especially when expressing negative opinions, they may use ambiguous language. Therefore, we must learn to “read the air” and understand the underlying meaning. At the same time, when expressing your opinions, you should also pay attention to using euphemisms and avoid direct criticism or denial.

3. Legal and Regulatory Compliance Points

When conducting business in Osaka, it is crucial to understand and comply with relevant laws and regulations. Japan’s legal system is relatively complex, and different industries may face different regulatory requirements. Therefore, it is recommended that companies conduct a comprehensive understanding and assessment of the relevant legal and regulatory environment before entering the Osaka market.

Businesses need to understand Japanese corporate law. There are several main forms of setting up a company in Osaka: a corporation (similar to a joint stock company), a contract company (similar to a limited liability company), and a branch of a foreign company. Each form has its own specific set-up procedures, capital requirements and tax implications. For example, setting up a corporation requires at least one director and a minimum capital of 1 yen, but actual operations usually require more capital.

Employment law is another area that requires special attention. Japan’s labor laws provide relatively strong protection for employees’ rights and interests. Major regulations include the Labor Standards Act, the Minimum Wage Act, the Labor Contract Act, etc. Companies need to pay attention to regulations on working time management, overtime pay, annual leave regulations, layoff restrictions, etc. For example, the legal working hours are 40 hours per week, and overtime pay is required for any excess hours; dismissal of employees requires justifiable reasons and 30 days’ notice.

Intellectual property protection is an area that innovative companies must pay attention to. Japan has a complete intellectual property legal system, including patent law, trademark law, copyright law, etc. When carrying out innovative activities in Osaka, companies should apply for relevant intellectual property protection in a timely manner. At the same time, you must also pay attention to respecting the intellectual property rights of others and avoiding infringement.

In certain industries, there are also industry-specific regulations to be aware of. For example:

• The biotechnology industry needs to comply with regulations such as the Pharmaceutical Affairs Act and the Act to Ensure the Safety of Regenerative Medicine and Other Products;
• Fintech companies need to pay attention to the “Financial Products and Exchange Act”, “Funds Settlement Act”, etc.;
• Manufacturing companies need to comply with the Product Liability Act, various safety standards, etc.

In addition, data protection and privacy regulations are also areas of compliance that have become increasingly important in recent years. Japan has implemented a Personal Information Protection Law similar to the EU GDPR, which has strict regulations on the collection, use and storage of personal data. Particularly when it comes to cross-border data transfers, special attention needs to be paid to compliance issues.

Tax compliance is equally important. The main types of taxes in Japan include corporate tax, consumption tax, local tax, etc. As a local government, Osaka has also introduced some tax preferential policies, such as corporate tax exemptions for companies established in specific innovation areas. Enterprises should fully understand these policies and conduct reasonable tax planning.

Regulations related to environmental protection cannot be ignored. Japan has strict environmental protection laws, such as the Basic Environmental Law and the Air Pollution Prevention Law. Enterprises, especially manufacturing enterprises, need to pay attention to environmental compliance issues such as emission control and waste disposal during the production process.

Considering the complexity of the legal environment, it is strongly recommended that enterprises hire local legal counsel to assist in handling various legal and compliance matters. At the same time, you can also seek help from the Osaka Foreign Business Investment Promotion Center (O-BIC), which can provide relevant legal and policy consulting services.

4. Develop a successful Osaka market entry strategy

Formulating a successful Osaka market entry strategy requires comprehensive consideration of multiple factors, including market characteristics, competitive environment, and own advantages. Here are some key considerations and suggestions for developing an Osaka market entry strategy:

First, gain an in-depth understanding of the characteristics and needs of the Osaka market. Osaka is Japan’s second largest economic center and has unique market characteristics. For example, consumers in Osaka pay more attention to price and are more receptive to new things. Therefore, companies can consider adopting competitive pricing strategies while emphasizing the innovativeness of their products or services. It is recommended to conduct detailed market research to understand the needs and preferences of the target customer group. You can consider cooperating with a local market research company.

Second, choose an appropriate market entry mode. Common entry modes include:

• Direct investment: such as establishing a subsidiary or branch. This model has strong control but requires a large initial investment.
• Joint venture or cooperation: Cooperating with local enterprises can quickly obtain market resources and knowledge.
• Agency or Distribution: Entering the market through a local agent or distributor, with less risk but less control.
• Acquiring local businesses: Can quickly gain market share and resources, but requires significant capital and careful due diligence.

Which model to choose depends on multiple factors, such as the company’s financial strength, risk tolerance, long-term strategy, etc. For example, if your company is a technology startup, it may be better to enter the market through an incubator or accelerator first and then gradually expand your presence.

Third, develop a localization strategy. Although the Osaka market is relatively open, localization is still the key to success. This includes:

• Product localization: Adapting a product or service to local consumer preferences. For example, many foreign food companies adapt their products to Japanese tastes.
• Marketing localization: Use local languages ​​and understand and leverage local marketing channels. Osaka has its own unique dialect and culture, and clever use of these elements in marketing can increase affinity.
• Talent localization: Recruiting local employees, especially management and customer service staff. This helps to better understand and serve the local market.

Fourth, tap into Osaka’s innovation ecosystem. Osaka is vigorously developing innovative industries and has provided many supporting policies and resources. Businesses can:

• Participate in innovation projects: such as applying to enter various innovation centers or participating in industry-university cooperation projects.
• Take advantage of government support: such as applying for innovation subsidies, tax incentives, etc.
• Join an industry association: This can help you build a local network and stay informed about what’s going on in your industry.

Fifth, formulate a phased market expansion plan. Don’t expect overnight success, but develop a phased market expansion plan. For example:

• Phase 1 (0-6 months): Market research and preparation, including completion of all necessary registrations and licenses.
• Phase 2 (6-18 months): Small-scale pilot to test market response with limited products or services.
• The third stage (18-36 months): Adjust strategies based on pilot results and gradually expand market share.
• The fourth stage (36 months later): Comprehensive market expansion, considering expansion to other Japanese regions.

Finally, stay flexible and patient. Entering a new market is always challenging, especially one with a unique business culture like Japan. Be prepared for long-term investment, while maintaining strategic flexibility and making timely adjustments based on market feedback.

Overall, successfully entering the Osaka market requires careful planning, adequate preparation, and execution patience. By deeply understanding the market, choosing an appropriate entry mode, developing a localization strategy, leveraging innovative resources, and taking a staged approach to market expansion, companies can significantly increase their odds of success in the Osaka market. At the same time, it is recommended that enterprises maintain an open and learning attitude throughout the entire process, listen humbly to feedback from local partners and customers, and continuously adjust and optimize strategies.