Fostering Startups for Innovation-Driven Economic Revival in Japan: Cluster-Networks' Challenges and Strategies

Abstract

Innovation is a key driver of economic growth, especially in Japan, where collaboration between industry, academia, and the government has been pivotal in fostering innovation. However, Japan faces a pressing challenge in promoting startup growth. Research conducted from 2004 to 2020 using data from various sources, including the World Development Indicators and International Telecommunication Union's Statistics, examined the impact of startup promotion on GDP per capita growth in 20 OECD economies, including Japan. The panel-data analysis found that fostering startups significantly contributed to economic growth in Japan. The lack of interest in starting businesses among Japanese citizens, coupled with inadequate support and education for entrepreneurship, was identified as a major hindrance. To address this, a strategic framework was proposed, emphasizing the integration of problem-setting, strategy, and tactics. The study recommended policies to facilitate research seed discovery, improve international competitiveness, and enhance collaboration between researchers and business leaders. Moreover, it called for enhanced business education, including startup promotion within school curricula, as a fundamental strategy for fosterting long-term innovation-driven economic revitalization.