Japan Unveils 3-Pillar Startup Strategy at SusHi Tech 2026

Tokyo, Japan - Prime Minister Sanae Takaichi outlined a three-pillar government strategy to accelerate startup growth and deep-technology integration at the SusHi Tech Tokyo 2026 conference on Monday.

The event, in its fourth year, drew over 60,000 participants, including startup founders, enterprise representatives, venture capitalists, and municipal leaders.

Startups account for 4% of Japan's nominal gross domestic product, representing a 32% increase over the past two years, according to Takaichi.

The government plans to expand operational grants for universities and national research institutes to fund basic research.

The initiatives fall under the government's five-year startup nurturing plan and are overseen by the Japan Growth Strategy Council.

The framework addresses scale-up operations, deep-tech support, and regional development.

The first pillar targets financial reinforcement and the creation of an ecosystem that cycles funds and personnel.

It includes measures to attract foreign investment, talent, and startups, positioning Tokyo as a gateway to the global ecosystem.

The second pillar calls for continuous developmental support for artificial intelligence, semiconductors, and 17 strategic fields, spanning from initial research and development to commercialization.

The government will strengthen its Small Business Innovation Research program to drive demand.

Ministries will also be required to establish testing frameworks and introduce startup technologies to reduce government procurement barriers.

The third pillar emphasizes entrepreneurial education and the commercialization of technologies from regional universities and technical colleges. It also seeks to encourage local municipal procurement of startup technologies.

Tokyo Governor Yuriko Koike, who co-presented the keynote, said the Tokyo Metropolitan Government would align with national policies to stimulate the local economy and support the integration of startups.