The Development Bank of Japan has published a report analyzing the current situation and issues in the startup industry in the Tohoku region.

According to the report, although the number of startups originating from universities is increasing, there is a risk that growth will stagnate due to a lack of collaboration with companies and financial institutions, and a tendency to over-favor the local area. In Sendai in particular, the involvement of local companies and financial institutions is limited, and the absence of large companies to take a leading role has exposed the inadequacy of its designation as a support hub.

The problem is amplified by the few venture capital firms based in Tohoku, with an urgent need to build a concentrated support system for the return of entrepreneurial talent and the development of human resources. The number of university-based venture businesses in Miyagi Prefecture is increasing at a high rate, comparable to Tokyo and Kyoto Prefecture in terms of the number of businesses per capita, but the exit rate remains at 3.2%, and there is a view that there is room for improvement in the environment for commercializing research.

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