A super-lightweight material developed by Assistant Professor Tomoe Ueno at a laboratory at Nagoya University has the surprising property of floating in the air when warmed by shining a light on it. She launched the startup Solamaterial with the aim of commercializing the material for use in the aerospace field in applications such as heat and sound insulation.

However, the company's president, Tomoki Osato, noted that the comany’s biggest hurdle was not the technology, but rather the lack of human resources.

“We are completely lacking in the number of people to grow — including finding a CTO,” he said. “The company is aiming to increase the current number of three to more than ten people, including business partners, by 2025. Even if you have the technical skills, the problem for startups in the Chubu region is that there is a lack of human resources to develop them as a business.”

Aichi Prefecture has a strong history in manufacturing and other industries, but the number of employees working in startups is less than one twentieth of the number in Tokyo. The outflow of young people from the prefecture is a serious problem, and the population of Aichi Prefecture has been declining for four consecutive years. In particular, young women tend to move to the Tokyo metropolitan area for further education or employment and not return because employment tends to be concentrated in the manufacturing industry, a traditionally male-dominated environment.

Furthermore, the amount of funding raised for start-ups is only around 2% of the national total, and there are also significant funding issues. There are almost no independent VCs based in the Chubu region, and it is difficult to raise funds.

However, support is beginning to be provided, with the opening of incubator StationAi and the establishment of a VC management company by the Tokai National University Organization. How much they can overcome the human and financial barriers that stand in the way of startups will be key to determining the sustainability of growth in the region.

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