Located about 50 km from Tokyo, Tsukuba City is not exactly famous among tourists. However, it does have a reputation among scientists and researchers, being home to one of Japan's leading universities, the University of Tsukuba, as well as many national and corporate research institutes.

Having developed primarily as a research and education city, Tsukuba has a limited industrial presence. Interviews with city officials revealed that there is concern regarding the absence of a major industry and the contribution in terms of tax revenues that such an industry would make (see reference). The city’s population is increasing—generally considered good news in a country where the population has been declining since 2010—but this is also leading to an increase in the costs of administrative services and demand for childcare and education. Looking further ahead, the babies being born today will need employment opportunities when they grow up.

To these ends, Tsukuba has been making efforts to attract and support start-ups, leveraging its status as a leading research and education hub. According to a survey conducted by the Tsukuba Science City Network, there are more than 12,000 researchers in Tsukuba, of which approximately 7,800 hold doctoral degrees (see reference), mainly belonging to The University of Tsukuba and the National Institute of Advanced Industrial Science and Technology (AIST). AIST, in particular, boasts approximately 2,300 researchers, making it one of the largest research institutes in Japan. The concentration of research institutes and the work they produce are among Tsukuba’s greatest assets, and the city has taken great strides in using them to attract and sustain a thriving start-up community.

Tsukuba's start-up ecosystem

The Tsukuba Startup Ecosystem Consortium is spearheading the development of the local start-up ecosystem. A collaboration between private companies, public institutions, and educational institutions, the consortium provides demonstration spaces for various advanced technologies, promotes social implementation, attracts human resources and funds from Japan and abroad, and strengthens cooperation with other cities that serve as hubs for the ecosystem. The consortium includes the Japan External Trade Organization (JETRO), the Japan International Cooperation Agency (JICA), major banks, the municipal governments of Tsukuba City, Ibaraki Prefecture, Tsukuba University, and many national research institutions. Only a city like Tsukuba, with its concentration of research institutions and technology development leadership, could attract such a partnership.

One of the consortium’s primary functions is to provide support to start-ups in two crucial periods: helping entrepreneurs to form start-ups in the first place, and then helping those start-ups commercialize their ideas. The consortium identified a number of challenges in these areas, including a lack of professional human resources, a lack of affordable office space for small- and medium-sized businesses, and a lack of financial support. In light of this situation, Tsukuba’s start-up ecosystem aims to quadruple the number of start-ups under its umbrella raising funds of 100 million yen or more per year from the current level of four to 16 over the next 10 years, and to increase investment in start-ups from the current level of 6.8 billion yen per year to 57 billion yen per year.

Start-up support from AIST

AIST has launched 155 start-up companies based on technologies developed at AIST (see reference). In fact, AIST has been supporting the commercialization of advanced technologies and the promotion of business expansion since around 2002. In April 2023, AIST established a wholly owned subsidiary, AIST Solutions, Inc. as part of its efforts to strengthen open innovation, build an ecosystem, and create new businesses through active publicizing of research results (see reference). AIST Solutions facilitates the provision of technological assets, joint research, and business co-creation. In particular, AIST Solutions provides consulting and accelerator-like support services to start-ups, while at the same time leveraging its own advanced R&D capabilities to provide services such as verification of technology principles, rental of laboratory facilities, and support in formulating strategies for standardization of intellectual property. In addition to its home base in Tsukuba, AIST Solutions also has an office in Tokyo, which provides access to Tokyo's start-up ecosystem.

The type of collaboration offered by AIST Solutions varies, and is not limited to simply providing information or sharing tasks.

Start-up support from the University of Tsukuba

With approximately 16,000 students and over 1,700 faculty members, the University of Tsukuba has a very large presence in the Tsukuba area and plays a crucial role in the start-up ecosystem. Already, more than 240 start-ups have been born at the University of Tsukuba, and this number is set to grow. The University of Tsukuba Venture Certification Logo is granted to start-ups affiliated with the university, allowing them to benefit from its influence via their corporate branding. However, recipients are also expected to play an active role in the start-up community. A list of start-ups that have been awarded this title can be found on the University of Tsukuba's website (see reference).

Another of the university’s key initiatives supporting entrepreneurship is the Tsubasa Project. This project aims to produce start-ups with growth potential based on technologies and ideas developed at the university. Around six teams are selected each year, and each team is assigned a mentor to help them reach commercialization, providing support in areas such as proof of concept, intellectual property creation, and needs assessment. In recent years, the program has also provided financial support of up to 10 million yen per team. By bridging the gap between research and development and commercialization, the Tsubasa Project is helping motivated students and researchers to create successful start-ups. The recipients of the program’s support in 2024 were given to teams working on: AI-based fraudulent accounting detection; functional microbial capsules for greening former mining sites; brain-wave sleep analysis; computational imaging technology; LLM-based medical image analysis; and Ai-based video recognition and annotation software.

Start-up support from Tsukuba City

It is not only private research institutes and universities that provide start-up support in Tsukuba; public support is also available, courtesy of Tsukuba City. Tsukuba City's start-up strategy provides a roadmap for growth with specific KPIs (see reference). In addition to intercity networking opportunities, this strategy also includes providing support for foreign entrepreneurs, including assistance in obtaining the necessary visas to run or exit a business and understanding of Japanese employment rules, and procedural support for hiring foreign nationals. In fact, the proportion of foreign residents in Tsukuba is higher than the national average, again largely thanks to the concentration of research institutes.

Invaluable to the city’s efforts to promote start-ups and entrepreneurship is Tsukuba Startup Park, an incubation facility with a focus on technology start-ups. The facility is staffed by people who have knowledge and experience in entrepreneurship, including a qualified small-business consultant, and regularly hosts events related to entrepreneurship and business management. Some of these events offer professional support, such as legal consultation and advice on obtaining grants. Please note that registration is required to use many of the facilities on offer (see reference).

We hope that you have been able to understand Tsukuba’s efforts to promote entrepreneurship and create new industries throughout the city by taking advantage of its unique strengths. Although it lacks the size and economic capacity of major metropolises like Tokyo, the city’s compactness allows it to foster an agile and close-knit community of start-ups and entrepreneurs. If you are considering starting a business in Japan, especially in the tech sector, there’s nowhere quite like Tsukuba.

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