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Hiroshima Prefecture is located in the Chugoku region on the western side of Honshu, the main island of Japan, and has prospered as a checkpoint connecting the north and south of the country. Hiroshima City, which is the location of the prefectural government, has a unique history. In 1945, the world's first atomic bomb was dropped on Hiroshima, killing hundreds of thousands of people and instantly reducing the city to rubble. The subsequent atomic bombing of Nagasaki brought an end to World War II, but the record of the damage caused by the atomic bombs remains as a warning to all of humanity.
Since that fateful day, Hiroshima has recovered and has grown to become one of Japan's leading cities. The rapid recovery of the city is supported by the unwavering determination of its people to seek world peace, of which Hiroshima has become a symbol. In this article, we will introduce the economic recovery of Hiroshima and its entrepreneurial and start-up scene.
Basic information
Hiroshima Prefecture has a population of approximately 2.8 million and is one of the most influential regions in western Japan. The prefectural capital, Hiroshima City, is home to over 1.2 million people and serves as the economic and urban center of the region. The entire prefecture covers an area of 8,480 square kilometers, and its diverse landscape ranges from vibrant urban areas to picturesque mountains, beaches, and riversides.
Economically, Hiroshima thrives on its infrastructure and manufacturing industries. This is partly due to its location connecting Honshu and Kyushu and its proximity to the Seto inland sea. The automobile and shipbuilding industries are the foundation of the local economy. Along with its neighbor, Kure, Hiroshima plays an important role in Japan's maritime trade and logistics network, facilitating the distribution of goods by sea both domestically and internationally.
Hiroshima is also a very famous tourist destination for both domestic and international visitors, being easily accessible by bullet train from Tokyo or the Kansai region. The Atomic Bomb Dome, a World Heritage Site that has been preserved in perpetuity to convey the horror of the atomic bomb. This place has become something of a pilgrimage site, visited each year by people from all over Japan and abroad who wish to pray for peace. In 2016, then-US President Barack Obama visited Japan and became the first incumbent US President to visit the Atomic Bomb Dome and pray for peace.
Hiroshima Prefecture is home to many other beautiful historical buildings outside of Hiroshima City, such as Itsukushima Shrine, a World Heritage Site. Founded in 593, the shrine’s buildings in their current style were built by Taira no Kiyomori around 1168. As it is located where the tide comes in and goes out, at high tide the sea water surges up to the Otorii (the large gate at the entrance to the shrine) and even under the shrine buildings and corridors, making it look as if it is floating on the sea when viewed from a distance. The shrine buildings are designated as national treasures for their great historical and cultural value, and are a popular spot for visitors from Japan and overseas. These two tourist attractions, along with many others, have helped make Hiroshima a premier tourist destination and played an essential part in the city's recovery.
Post-war recovery and economic growth
In this section, we will introduce how Hiroshima achieved its historic recovery and built its current industrial base.
At first, the main focus of recovery was on land readjustment and rebuilding infrastructure. One year after the bombing, over 32,000 buildings had been rebuilt, and the rate of reconstruction had increased by about 40 percent. Even so, the destruction of the city was so profound that the Hiroshima Peace Memorial City Construction Law was passed, which made it possible for the city to draw support for its reconstruction efforts from the national government. Thanks to this and other policies, Hiroshima was able to achieve rapid reconstruction, and today it has become an economic hub of western Japan.
One of the mainstays of economic growth in Hiroshima is the automobile industry, in which Mazda plays a central role. The company’s headquarters have been in Hiroshima since 1920, and its presence has helped to establish Hiroshima's position as a base for automobile manufacturing and technological innovation, a role similar to that played by Toyota in Aichi Prefecture. By developing a wide range of businesses, including assembly plants, dedicated ports and research facilities, Mazda has created many jobs in Hiroshima and linked it to the global market.
(Hiroshima Prefecture Industry and Company Information | Hiroshima Prefecture)
In addition to the automobile industry, Hiroshima is a major hub for shipbuilding and shipping in Japan. Shipbuilding and repairs are carried out in Kure by Japan Marine United, and Hiroshima Port functions as a gateway for international trade. These two ports connect Japan with the rest of the world.
In recent years, Hiroshima has been making inroads into new industrial fields such as renewable energy, biotechnology, and digital technology. Examples of this include the establishment of the Hiroshima Innovation Hub in collaboration with Hiroshima University. These initiatives focus on sustainability and technological innovation, and are also linked to the Japanese government's target of making the country carbon neutral by 2050.
In addition to these manufacturing industries, the tourism industry has also been a major factor in Hiroshima's recovery. The prefecture is home to a wealth of tourist attractions, including Hiroshima City itself and the island of Miyajima, where the aforementioned Itsukushima Shrine is located.
Start-up support
Although Hiroshima is known for its manufacturing industry, it has also been making remarkable progress in supporting start-ups in recent years. There are a wealth of programs in place to support entrepreneurs, including some that aim to create unicorns and others linked with Hiroshima's existing industrial infrastructure. In this section, we will explore three of these programs in detail.
Hiroshima Prefecture is aiming to become an innovation-driven region and is focusing on promoting growth in the local economy. The Hiroshima Unicorn 10 project is the main pillar of this initiative, and its aim is to nurture ten unicorn companies over the next ten years. Each year, more than ten promising companies will be supported through a seven-month mentoring program led by venture capitalists and experts, which will include study sessions, matching events, and results presentations. The generally accepted definition of a unicorn company is a privately held company with a valuation of at least $1 billion, usually in the technology sector, and which has been in business for less than ten years. The Hiroshima Unicorn 10 project, however, is focused not only on helping its beneficiaries achieve rapid growth and high market value, but also on encouraging them to contribute to regional development. The program is not only for traditional start-ups, but also for spin-offs from existing companies and business succession. About 20 start-ups have been selected for the program since its launch in March 2022.
Hiroshima has established an innovation hub for start-ups and entrepreneurs called Hiroshima Camps. Located in Hiroshima City, this facility provides an open environment for entrepreneurs and business owners to gather, share ideas, and develop new solutions. Hiroshima Camps hosts workshops, brainstorming sessions, networking events and more, bringing together entrepreneurs from a variety of backgrounds. The facility also connects start-ups with investors, mentors, and potential partners to support the growth and expansion of businesses.
Hiroshima Sandbox is a place for conducting demonstration experiments to solve local issues and promote industry using digital technology. Private companies, cities, towns, and universities from within and outside the prefecture bring together their respective resources (technology, expertise, infrastructure, human resources, etc.) to take on the challenge of solving local issues and promoting industry using digital technology.
Having opened back in May 2018, Hiroshima Sandbox can claim to be one of the earliest local-government-led innovation platforms. Between 2018 and 2021, the number of products and services developed and tested through the sandbox reached 108, and the number of members of the Hiroshima Sandbox Promotion Council, which was established as a place for relevant parties to exchange information, grew to about 3,000.
Conclusion
Hiroshima Prefecture is focusing on fostering new industries and supporting entrepreneurs through exciting projects in order to achieve further growth. There has never been a better time to start a business here in one of the most optimistic, forward-looking cities in Japan.
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