11 of successful startup examples. Recognizing the importance of startups for economic growth, the government declared 2022 as the ‘First Year of Startup Creation.’ To foster a thriving startup ecosystem and spark a new wave of entrepreneurship, they launched a ‘Five-Year Startup Development Plan.’ This plan focuses on three main areas: building talent and networks; enhancing funding and diversifying exit strategies; and promoting open innovation. The government has designated Tokyo, Central Japan (consisting of Nagoya and neighboring areas), Osaka/Kyoto/Hyogo, and Fukuoka as Global Hub Cities. In Tokyo alone, the number of new university spin-offs has grown significantly from 533 in 2020 to 1,643 in 2023.” Complementary market dynamics “Israeli companies have a strong presence in the North American and European markets while Japanese companies have a strong business foundation in Asia, including Japan, which creates a complementary market dynamic,” adds Shingo. “The Japanese market is one of the largest in the world, and its unique practices and systems make Japanese companies valuable partners for Israeli companies looking to expand beyond Western markets.” As Masato says: “Israel’s open and collaborative startup culture offers Japanese companies a refreshing alternative to the more closed and competitive environment of Silicon Valley. Japanese investors often highlight Israel’s accessibility, with meetings and introductions to startups and VCs being significantly easier to arrange. This cultural openness makes Israel an ideal destination for Japanese businesses seeking agile partners in the med-tech and health-tech sectors.” Patience and planning are vital While the opportunities are immense, understanding the respective cultural and regulatory landscapes is paramount. Chairman of the IJCC for the past decade, Gilad is well placed to comment on the cultural nuances. “Japan’s business culture is very different from the Western style of doing business which we are more familiar with in Israel through our work with partners in Europe, USA, and Australia. Also, the market entry barriers to Japan are relatively higher than in other places. Processes take much longer time
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