Nagoya: where the start-up era meets innovation and craftsmanship

Nagoya is the capital of Aichi Prefecture, which lies right in the center of Japan’s main island of Honshu. Aichi Prefecture is an economic powerhouse, second only to Tokyo in terms of GDP and per capita income, and is the host to a nascent start-up boom.

I grew up in Toyota City, close to Nagoya. I was lucky enough to study abroad, and the exposure to English that this afforded me sparked a desire to become an international worker. This, in turn, led me to attend events and interact with other internationally-minded professionals, and eventually, to an understanding of the concept of the modern start-up and the broader start-up ecosystem. However, in my experience, this kind of exposure remains uncommon among Nagoya’s youth.

For those born and raised in Nagoya, a conventional path to success typically involves attending a prestigious school, securing employment at a major corporation based in Nagoya, enjoying a stable income, starting a family, and buying a home. The region provides ample resources to support this traditional route, which contributes to its stability but also poses challenges for fostering a start-up culture and innovation due to the limited mobility of resources.

Despite these challenges, Nagoya’s start-up ecosystem has undergone significant changes in recent years. Notably, the establishment of STATION Ai, an incubation facility supported by Aichi Prefecture and SoftBank, marks a major development. Alongside this initiative, there has been a rise in accelerator programs and entrepreneurial support systems, demonstrating a growing commitment to fostering start-ups in the region.

This article will highlight unique start-up support systems in Nagoya and Aichi, including programs aimed at international start-ups, and examine the region’s evolving start-up ecosystem.

Start-up support in Nagoya and Aichi

Open innovation

Nagoya is home to many large manufacturing companies, giving it a unique advantage in leveraging abundant resources within the manufacturing sector to promote start-up innovation. For example, Suzuki Motor Corporation is actively collaborating with start-ups, including partnerships aimed at developing flying cars. The government and local municipalities are also strengthening collaboration between start-ups and established enterprises in the region.

Aichi start-up visa

Aichi Prefecture offers two types of visas to support foreign entrepreneurs. The first grants a six-month residence status to help launch business activities, while the second provides a visa valid for up to one year for foreign entrepreneurs aiming to establish IT-related businesses in Aichi. The one-year visa requires applicants to meet conditions related to education, work experience, and business content. Certified business advisors assess whether each applicant’s business activities align with strengthening Aichi’s industrial competitiveness and its role as an international economic hub, and they also review the feasibility and reliability of the applicant’s business plan.

To renew the start-up visa, applicants must normally maintain a dedicated office space. However, Aichi Prefecture has certified coworking spaces, including STATION Ai and facilities directly connected to Nagoya Station, which fulfill the visa requirements, significantly easing the burden on start-ups during the crucial early stages of business. These coworking spaces not only help satisfy visa renewal criteria but also offer valuable networking opportunities with other foreign entrepreneurs, local start-ups, and major corporations.

Global Start-up Matching Program

Aichi Prefecture has also launched a Global Start-up Matching Program aimed at attracting foreign start-ups to the region and encouraging cooperation with local enterprises. In this program, 15 overseas start-ups focused on sectors such as automotive, manufacturing, mobility, and energy participated in a collaboration with accelerator 500 Global. The program included training sessions on expanding business operations in Japan, mentorship from experts experienced in Japan-foreign start-up partnerships, and matchmaking support with local enterprises. Conducted entirely in English, this initiative is one of Nagoya’s most exciting support programs for foreign start-ups.

J-Startup CENTRAL

Another notable initiative is the J-Startup CENTRAL program, which selects and supports promising start-ups headquartered in Aichi Prefecture and the neighboring Hamamatsu area aiming to expand globally. This is a regional incarnation of Japan’s national J-Startup program, offering additional support through national partnerships. Benefits provided by the program include subsidies related to the Ministry of Economy, Trade, and Industry, business matching services provided by local governments and support organizations, and prioritized promotion on websites and other platforms.

Start-ups eligible for this program must have been founded within the past 10 years and are evaluated based on the following criteria:

• Vision: Clear goals addressing social challenges.
• Innovation: Advanced technologies or unique approaches.
• Competitiveness: Market-fit solutions with a competitive edge.
• Growth Potential: Sustainable and fast-growing business models.
• Global Outlook: High potential for international expansion.

Currently, over 35 start-ups in fields such as IoT devices, ICT, aerospace, AI, robotics, energy/environment, and bio/meditech are part of J-Startup CENTRAL. Many of these actively seek collaborations with overseas businesses, making this program an excellent platform for finding global partnerships.

Start-up community and incubation facilities

STATION Ai

Following its grand opening in 2024, STATION Ai is the largest incubation facility in Japan. Located just a few minutes' walk from Tsuruma Station, two stations away from Nagoya Station, this facility offers various services aimed at creating and nurturing start-ups and promoting open innovation. More than 1,000 companies are using the facility, including start-ups from overseas. STATION Ai not only provides working spaces, opportunities, and events, but also offers financial support. Deep Core and STATION Ai jointly established the STATION Ai Central Japan No.1 Fund to invest in seed and early-stage start-ups from member companies. The fund receives LP investments from SoftBank, Aichi Prefecture, Nagoya City, financial institutions, and local businesses.

In addition to offering opportunities for collaboration with large companies in the Nagoya area, STATION Ai regularly hosts pitch events, study sessions for entrepreneurial development, and other events. Start-ups looking to collaborate with manufacturing companies with abundant resources will find many opportunities here.

NAGONO Campus

NAGONO Campus is located a seven-minute walk from Nagoya Station and was established as an incubation facility to foster entrepreneurs and venture companies. A renovated building of a former elementary school, it is now used as a coworking space, shared office, and event space. This facility hosts various events, such as networking events, talk sessions, pitch contests, and workshops, which are open to non-members. The facility also has a playground, gymnasium, and cafeteria, offering an ideal place not just to work but also to refresh and relax.

The coworking space is open from 10:00 AM to 9:00 PM on weekdays, and from 10:00 AM to 6:00 PM on weekends and holidays. The shared office is available 24/7.

Currently, there aren't many staff who can communicate in English, but as the trend of globalization accelerates in Aichi's start-up ecosystem, it's hoped that English-speaking support will become available in the future.

NAGOYA Innovator’s Garage

NAGOYA Innovator's Garage is an incubation facility located in the Sakae district, one of the most accessible and convenient areas in Nagoya. It brings together people working on entrepreneurship and business reform, offering support through regular pitch events, entrepreneurial mentoring, and workshops. A key feature of this facility is that its members include well-known local companies of different sizes, creating opportunities for start-ups to network not only with other start-ups but also with business development personnel from regional companies.

TOIC Nagoya

TOIC Nagoya is an incubation facility that promotes open innovation, focusing on advanced materials, carbon neutrality, and DX (digital transformation), and leveraging the research resources of national universities in the Tokai region. Run by Nagoya University, a globally renowned research institution that has produced many Nobel laureates, and ATOMica Inc., this facility fosters a community centered on research and innovation. It offers a coworking area for researchers and students, as well as an incubation area for pre- and post-start-up businesses connected to universities in the Tokai region. The facility includes an Open Innovation Office area for industry-academia-government collaborations and a Joint Research Area containing corporate labs leveraging Nagoya University's industry-academia-government collaboration system.

Startup Events

Tech GALA

The Central Japan Startup Ecosystem Consortium, consisting of Aichi Prefecture, Nagoya City, the Chubu Economic Federation, Nagoya University, and others, will host the first-ever Tech GALA start-up conference in Nagoya from February 4 to 6, 2025, focusing on five core themes: Mobility, Sustainable Environment (addressing global efforts to build a resilient Earth), Material (innovation and evolution in industrial materials), Life Science/Well-Being (advancements in health and well-being), and Advanced Technology (AI, robotics, and societal and industrial transformation). The event will feature talk sessions, pitch contests, exhibitions, and matchmaking programs. The talk sessions will share cutting-edge global insights and discuss the future of the Earth, and speakers will include university professors and researchers providing valuable insights into the latest technologies. International experts and notable figures will also participate, and some sessions will be conducted in English.

Personally, I look forward to seeing how Tech GALA will engage with talent and how it will evolve after its first iteration this February. Although the content of this year's talk sessions will mostly be in Japanese, I’m particularly interested to see how the event will overcome language barriers, allowing international and local participants to share their perspectives and cutting-edge insights. I’m also excited to see how young people, who have the greatest capacity to shape the future, will engage with the conference.

NAGOYA CONNÉCT

NAGOYA CONNÉCT is a collaboration with Venture Café, an event program that originated in Boston and now has a presence in ten cities in five countries, to hold events at NAGONO Campus on the second and fourth Fridays of each month. Venture Café aims to build a global network and foster innovation. It provides opportunities for learning through panel sessions, lectures, workshops, as well as networking and exhibitions. Entrepreneurs, aspiring entrepreneurs, new business development personnel from companies, investors (VC/CVC), incubators, accelerators, government officials, university representatives, researchers, and other diverse innovators gather at these events. Free 30-minute mentoring sessions are also available for those interested in entrepreneurship or new business development.

Conclusion

What I have described in this article is just the beginning of Aichi and Nagoya’s journey to create a truly global start-up ecosystem. Partnerships and collaborations with start-up support organizations from other countries are picking up steam, as shown by the increasing number of overseas start-up representatives visiting places like STATION Ai. The region has learned from Silicon Valley’s example, and is doing everything it can to entice the best talent from around the globe. The revitalization of Nagoya's start-up scene is still in its early stages, and I can’t wait to see its efforts to increase the flow of talent pay off in the near future.

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