Nae Nakamura (Osaka Innovation Hub)

The blackbox editorial team visited Japan’s second-largest city, Osaka. They interviewed the “OIH,” an innovation creation center established by Osaka City in 2013.OIH is located in the Grand Front Osaka complex in Umeda and operates under the theme “From Osaka to the World.” It serves as a gathering place for entrepreneurs and technologists, supporting the creation of new businesses and their scale-up efforts. Through approximately 200 events and programs annually, OIH facilitates the exchange of diverse people and ideas, contributing to developing an innovation ecosystem in the Kansai region.
For this interview, Nae Nakamura, the director of OIH’s Startup Support Division, discussed the organization’s activities and Osaka’s appeal.

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Tell us about how you joined OIH and your career background?‍

I worked as a public servant for about 13 years. Initially, I worked at a citizen service counter, but after a personnel transfer, I moved to the Economic and Industrial Promotion department. There, I became involved in initiatives related to new industry creation, which led to interactions with venture companies, companies with advanced technologies, and universities.
Through this experience, I became interested in city development that fosters innovation and supports the overseas expansion of venture companies. Simultaneously, I wanted to work abroad, so I transitioned to the private sector and gained about four years of experience in overseas-related sales and finance.
Later, I learned about the existence of Osaka Innovation Hub (OIH) and thought I could do what I wanted there, so I joined about six years ago. OIH supports startup growth and builds networks with overseas institutions and companies, which aligned with my experience and interests, ultimately leading to my decision to join.
I studied abroad in Finland for a year as a second-year high school student. During this time, I learned the fascination of cross-cultural exchange and the importance of challenging oneself in new environments. This experience has led to my current support for startups from a global perspective.

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Please share with us in detail what you're currently working on.

I currently serve as the director of the startup support division at OIH, where I am responsible for the Osaka Innovation Hub's overall facility management and business operations.
I'm also focusing on building a startup ecosystem. We're promoting this initiative in cooperation with external companies and institutions and with national, Osaka prefectural, and Osaka city administrations. I'm also in charge of the secretariat for this consortium, working with participating companies and institutions to promote information dissemination and various initiatives related to startup support.
OIH has about 30 staff members, each utilizing their expertise to support startups.

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Please tell us about OIH's specific support services.

At OIH, we provide support from the pre-startup stage. Specifically, we assist in creating business plans, mentoring, and programs to learn the knowledge and skills necessary to start a business.
After startup, we support business growth through acceleration programs. These programs include guidance from experienced mentors, business model refinement, and fundraising support.
We also regularly hold pitch events, providing opportunities for startups to interact with each other and for interaction between large corporations and startups. We are creating opportunities for business matching and collaboration.
We also organize meetups with venture capitalists (VC) about once every two months. At these events, startups can present directly to VCs, increasing their chances of securing funding.
Furthermore, we provide individual, hands-on support from our staff. We offer detailed support tailored to each startup's growth stage and challenges. For example, we collaborate with external experts when specialized advice is needed in areas such as legal affairs, finance, or intellectual property rights.
We provide a wide range of support across all stages of startup development (laughs).

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What are the strengths of Osaka's startup ecosystem?

One of Osaka's strengths lies in the high technological and manufacturing capabilities of its small and medium-sized enterprises. Many companies in the manufacturing sector have world-class technologies. We believe there's a high potential for innovative products and services to emerge through collaboration between these companies and startups.
Also, the Kansai region, including Osaka, has a concentration of many universities and research institutions, offering high potential in deep-tech fields. For example, there are numerous national universities like Osaka University, Kyoto University, and Kobe University, as well as many public and prominent private universities in Kansai, and we're seeing an increase in university-originated startups.
Geographically, there's good access between major cities like Osaka, Kyoto, and Kobe, allowing for the possibility of building ecosystems that leverage the characteristics of each region. For instance, we can expect unique business creation by combining Osaka's commercial dynamism, Kyoto's traditional techniques and cutting-edge research, and Kobe's international character.
Moreover, Osaka is home to many large companies' headquarters, increasing the potential for collaboration with startups. In particular, I feel that Osaka's corporate culture allows for relatively flat relationships, making it easier to facilitate business matching. This "openness" is one of Osaka's strengths.
Another characteristic is the abundance of support organizations and private companies engaged in support activities. Many organizations and activities support public and private startups, creating a supportive environment for entrepreneurs. OIH is one of these, but there are also various other support organizations, such as the Osaka Industry Bureau, Osaka Chamber of Commerce and Industry, and private incubation facilities.

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Please tell us about the support for foreign investors.

We're receiving an increasing number of inquiries from overseas investors. When they visit Japan, we arrange meetings and introduce startups in their fields of interest.
Companies and VCs also work with OIH to support startups' joining as partners. We open our facilities to these partners, and foreign investors and VCs can also use our space as a workspace when visiting Japan if they become partners. This creates an environment where they can more smoothly engage with Japan's startup ecosystem.
Specifically, we share startup information with foreign investors and introduce companies that match their interests.
Furthermore, we regularly hold pitch events that connect foreign investors with Japanese startups. These events are conducted in English and provide opportunities to receive feedback from a global perspective.
However, we also face challenges. We're not always able to provide up-to-date information on startups, and we need to strengthen our connections with overseas VCs and global companies. In the future, we'd like to focus on expanding our network of foreign investors and creating mechanisms for regular information exchange.

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Please tell us about your future vision.

We aim to see more startups born and grow in Osaka and the Kansai region. We want to strengthen collaborations with domestic and international investors and large corporations and establish a system to support startup growth.
Specifically, we plan to pursue the following initiatives:

1. Strengthening university collaborations: We plan to support the creation and growth of deep tech startups utilizing research results from universities like Osaka University and Kyoto University.

2. Promoting collaboration between large corporations and startups: We plan to create opportunities for matching between large companies and startups to promote open innovation.

3. Supporting global expansion: We plan to strengthen connections with advanced startup ecosystems overseas and support the international expansion of Osaka startups.

Attracting investment from overseas is also an important issue. We believe that increasing opportunities for investment in Japanese startups will revitalize the entire ecosystem. To this end, we will focus on building networks with overseas VCs and companies.
In the future, we aim for OIH to become a hub connecting startups, investors, and large corporations and the center of innovation creation for the entire Osaka and Kansai region. We hope it will become a vibrant place where young students and entrepreneurs gather.

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Lastly, please tell us about Osaka's appeal.

One of Osaka's charms is the friendliness and flexibility of its people. Flat communication is relatively easy, even in business settings, and there's a foundation for accepting new ideas and businesses. This "give it a try" spirit creates an environment suitable for startup growth.
Also, while Osaka is traditionally a commercial city, it's proactive about innovations. Long-established companies and emerging startups coexist, holding the potential for new business models that leverage both strengths.
Furthermore, the Kansai region is a major attraction because it can fuse the characteristics of each city nearby—Osaka's commercial aspect, Kyoto's tradition and cutting-edge technology, and Kobe's international character. It's possible to build a unique startup ecosystem by leveraging these regional characteristics.
The cost of living is relatively reasonable compared to major cities worldwide, making it an environment where startups can quickly launch their businesses. The relatively low office rents and living costs are a significant advantage for startups with limited funds.
Osaka's food culture and tourism resources also present business opportunities for startups. For example, startups are emerging that leverage Osaka's characteristics, such as technology services for inbound tourists or food tech for reducing food waste.
However, there are also challenges. For instance, the funding environment for startups is not yet sufficient compared to Tokyo. Securing global talent is also one of the challenges. However, governments, private companies, and universities are collaborating to address these issues.
We want to nurture an open, vibrant startup community unique to Osaka and Kansai while leveraging these attractions. We hope to see innovations that can compete globally emerge from this region one after another.
Lastly, I believe Osaka's charm lies in its "people." The Osaka people's spirit of challenge and fearlessness of failure are essential for startup growth. Also, the culture that values "laughter" creates a positive atmosphere even in a stressful startup environment.
We at OIH consider it our mission to build a globally competitive startup ecosystem while maximizing Osaka's strengths. We sincerely look forward to the day when innovations that change the world are born in Osaka.