At the main stage of IVS 2024, top Japanese leaders and finance experts explored the challenges and opportunities in Japan’s evolving innovation landscape, focusing on removing longstanding barriers to growth, modernizing infrastructure, and fostering cross-sector collaboration. Moderated by Forbes JAPAN’s Yuka Tanimoto, the panel featured:

• Takatoshi Nishiwaki, Governor of Kyoto Prefecture
• Shoichi Iwanaga, President and Representative Director of Resona Bank
• Nobuo Sayama, Partner at Integral Corporation
• Fumiaki Kobayashi, Member of the House of Representatives

Insights

The Need for Regulatory Reform

Panelists agreed that outdated regulations have long held back Japan’s progress. Fumiaki Kobayashi stressed that removing unnecessary rules—he mentioned “abolishing 10,000 barriers”—can open the door to modern technologies such as automation and digital tools. This change is essential for improving efficiency and reducing operational costs, benefiting startups and established companies alike.

Modernizing Local Ecosystems

Governor Nishiwaki pointed out that while Kyoto has a strong cultural and industrial base, it needs to improve its living and working conditions to attract global talent. Simple upgrades, such as better public facilities and more diverse amenities, can help create an environment that supports innovation. For finance leaders, these changes could lead to a more vibrant local economy and stronger business performance.

Strengthening Cross-Sector Collaboration

The discussion also highlighted the importance of working together across industries. Shoichi Iwanaga of Resona Bank explained how banks are exploring new financial products like venture debt to support startups, while Nobuo Sayama recommended creating special zones with favorable tax conditions and better infrastructure. Such collaboration can help bridge the gap between traditional industries and new digital ventures, ultimately supporting sustainable growth.

Our Thoughts

At Headline Asia, we share the view that Japan’s future growth depends on clear, practical changes. We believe in leveraging local networks and modern technology to overcome traditional barriers. By focusing on regulatory reform, infrastructure improvements, and cross-sector partnerships, we aim to support ventures that drive long-term growth and stability. This approach aligns with the panel’s insights and our own investment philosophy.

Takeaways

▪️Focus on Regulatory Change:

Encourage efforts to simplify compliance and remove outdated rules. This can improve efficiency and free up resources for innovation.

▪️Invest in Local Infrastructure:

Upgrading facilities and services in key regions like Kyoto can attract global talent and stimulate economic growth.

▪️Promote Collaboration:

Build partnerships between banks, investors, and industry players to create supportive environments for startups and traditional companies alike.

▪️Explore New Financial Models:

Consider financial products such as venture debt to provide flexible support for early-stage companies.

These insights point to a future where practical reforms and stronger partnerships lead to sustained economic growth. For founders and finance executives, the clear message is to focus on removing barriers, modernizing local ecosystems, and embracing collaboration. Such actions can help shape a more competitive and resilient market in Japan and beyond.

Want to learn more about our next IVS event or get insider perspectives from top industry experts and Headline Asia’s leadership? Reach out to Guillaume Defer to gain exclusive access to expert insights on the latest challenges and opportunities.