TOKYO (Taiwan News) — Since marketing technology startup Appier was listed on the Tokyo Stock Exchange two years ago, Taiwanese startups have accelerated their expansion into the Japanese market. 

At the same time, the Japanese government is investing heavily in its startup ecosystem. In 2022, Japan's Prime Minister Kishida Fumio launched an ambitious five-year plan to transform its startup ecosystem. 

Led by the Ministry of Economy, Trade and Industry (METI), the plan aims to create 100,000 new startups and nurture 100 unicorns—startups valued at over US$1 billion (NT$32.37 billion). Key components of the plan involve boosting funding avenues, enhancing entrepreneurial education, and establishing global startup campuses. 
 

The strategy also emphasizes increasing the number of young entrepreneurs benefiting from these programs from 70 to 500 annually, fostering innovation across various sectors, including deep tech and biotechnology.

This year’s annual startup exhibition, Sustainable High City Tech Tokyo (SusHi Tech Tokyo) the Global Startup Program, hosted by the Tokyo Metropolitan Government was held May 15-16. Taiwan's startup ecosystem was one of the most proactive among the various international startups. 

The expo almost doubled in scale from 26,764 attendees to 40,000 this year, while the number of exhibitors grew from 328 to 430. It drew participants from 48 countries, cities, and regions, including 18 from Japan and 30 from overseas, with 60% of the attendees from abroad.

Led by Taiwan’s government startup project, Startup Island Taiwan, over 40 Taiwanese startups joined the exhibition. Taiwan had the largest national pavilion in a prime spot directly facing the main stage, ensuring high foot traffic. Tokyo Governor Koike Yuriko and Taiwan envoy in Japan Frank Hsieh (謝長廷) both visited to show their support.
 

During the pitch competition, Taiwanese healthcare startup Cancerfree stood out among 507 startups from 43 countries, making it into the top seven and winning the Shimizu Corporation special prize, which includes the chance to do proof of concept collaboration. Last year, Taiwanese startup Turing Space also made it into the top seven.

Startup Island Taiwan also led a delegation of over 100 Taiwanese to visit several key Japanese startup players, including Tokyo Venture Capital Hub, Shibuya Startup Support, Tokyo’s biggest startup hub CIC, and the Tokyo Innovation Base launched by the Tokyo Metropolitan Government. 

In July, Startup Island Taiwan will lead another delegation to visit partners in the Kansai area and attend IVS, one of the biggest startup exhibitions in Kyoto. Following that, Startup Island Taiwan will support the Okinawa startup exhibition, Kozarocks, and recommend Taiwanese startups to attend the pitch competition in Okinawa.

Meanwhile, the most important startup event between Taipei and Tokyo, the Japan-Taiwan Startup Summit, takes place in September. Organized by the National Development Council and Startup Island Taiwan, this is the third year of the summit and is expected to welcome hundreds of startups, investors, and ecosystem builders. 

Japan's proximity to Taiwan and cultural similarities can facilitate market entry and collaboration. This dynamic cross-border expansion underscores the synergistic potential between Taiwan's innovative capabilities and Japan's mature market, making Japan a crucial destination for Taiwanese startups seeking to enhance their global footprint. With the support of the Taiwanese government, it is foreseeable more Taiwanese startups will expand into the Japanese market.