Category: News

International Growth: The Japan Market 2026 & Osaka’s Innovation Ecosystem is a must‑attend webinar for European startups and scaleups looking to build resilient growth beyond today’s volatile global markets.

Organised by Business Turku, Enterprise Europe Network (EEN) and Ciriot Inc., the session brings together leading Japan market experts, Osaka ecosystem leaders and venture capital voices to share practical, real‑world insights on entering and partnering in Japan. Speakers include Jarkko Jussila (CEO, Ciriot Inc.), representatives from the International Business Promotion Center Osaka (IBPC Osaka), and Osaka University Venture Capital, covering market opportunities, soft‑landing support, investment trends and concrete market‑entry cases.

REGISTER TO THE EVENT: International Growth: The Japan Market 2026 & Osaka’s Innovation Ecosystem 13.5.2026 | Business Turku

The webinar is scheduled to EET/Finland time 9-10:30 & JST 15-16:30. Welcome!

Why Japan – and why now?
In a time of global economic uncertainty and geopolitical tension, Japan stands out as a stable, predictable and innovation‑driven partner market. While many economies face increasing fragmentation, Japan is actively opening its market to international collaboration—lowering entry barriers, encouraging foreign innovation, and seeking technology and business partners that can support long‑term competitiveness. Japanese corporates, cities and investors are increasingly looking outward, making this an exceptional moment for European companies to form deep, trust‑based growth partnerships rather than short‑term market plays.

The webinar places a special spotlight on Osaka, one of Japan’s fastest‑growing innovation and startup hubs, known for its strong manufacturing base, global mindset and public‑private programmes designed specifically for inbound companies. Participants will leave with a clear understanding of where demand is emerging, how to access the ecosystem, and how to turn today’s global disruption into sustainable growth opportunities with Japanese partners.

The FINESTJAPAN project

Co‑funded by the EU Interreg Central Baltic program and implemented by Green Net Finland and Tehnopol, the FINESTJAPAN project supports Finnish and Estonian SMEs, primarily from GreenTech and HealthTech sectors, in seeking to enter the Japanese market.

The project and Ciriot as the local partner, aims to help companies secure new business or cooperation agreements in Japan while strengthening their understanding of Japanese business culture and improving their visibility in the market.

The project’s final joint export trade mission will take place 22–28 April 2026, targeting SMEs with export‑ready products or services to the Japanese markets. Before the export mission, the participants receive free coaching, expert “sparring,” and information of networking opportunities.

For the export trade mission, there will be a partial travel‑cost support, with no separate participation fee—though companies must commit to project activities and their own export efforts. Support also includes access to Ciriot sales channel development support, providing business‑expert assistance with engaging Japanese business partners and even direct customers.

Earlier missions have demonstrated strong traction. In May 2025, the project participated in the SusHiTech Tokyo expo, facilitating meetings with corporations, banks, prefectures, and cities. Companies represented included nollaE, Helsieni, TUGE Energia, and R8 Technologies. In October 2025, a mission to Osaka and Kyoto featured briefings by IBPC Osaka, a networking event on sustainability and digital solutions, and visits to Kyoto Research Park and ACT Kyoto. Osaka trade mission has generated so far two direct sales deals with Ciriot’s help: One for an Estonian AI Startup, and another one for a Finnish SaaS Startup.

Interested SMEs in Estonia and Finland can inquire participation by contacting: ciriot contact email.

Ciriot role in co-funded export project

Expert Advisory Before Missions

Ciriot participates in the project’s preparation phase by offering expert sessions to ensure SMEs are ready for meetings and negotiations in Japan.

On‑Mission Support in Japan

During missions to Japan (e.g., Tokyo, Osaka, Kyoto), Ciriot helps organize meetings and provides hands‑on support in navigating the business environment. Their experts are available to help companies during the mission with business relationship making with Japanese companies within the project’s resource limits.

Target is a Commercial Deal

Ciriot Inc. plays a central enabling role by giving Finnish and Estonian SMEs direct access to Japanese market expertise, bridging cultural and business‑practice gaps, and increasing the likelihood of securing real commercial deals—which the project has already begun to achieve in earlier missions.

Japan’s New Wave of Innovation Offers Great Opportunities

Japan has entered a new era of growth, powered by strategic investment in the technologies shaping the future. From next generation semiconductors and artificial intelligence to green energy, digital transformation, and advanced healthcare, government and industry leaders are accelerating innovation to enhance sustained economic growth and competitiveness in global markets. These initiatives are strengthening Japan’s industrial backbone, modernizing infrastructure, and unlocking smarter, more sustainable solutions across society.

As the nation invests in AI driven automation, quantum technology, hydrogen energy, and transformative digital platforms, new opportunities are emerging for businesses, partners, and innovators ready to be part of Japan’s next chapter.

With large scale national programs strengthening industrial resilience, advancing green technologies, and modernizing digital infrastructure, Japan is positioning itself as a stable, innovation driven economy with long term growth potential. Backed by robust policy support, rising domestic demand, and a renewed focus on supply chain security, Japan offers an attractive environment for international companies and investors seeking reliable returns and strategic footholds in Asia’s most technologically advanced markets.

Large-Scale Investments in Semiconductors and AI

• The government has committed $65 billion in public aid to boost semiconductor and AI industries, aiming to catalyze over ¥50 trillion in combined public–private investment through 2030.
• Stimulus packages also target AI-powered semiconductors, supply chain resilience, and cybersecurity infrastructure for chip plants.
• TSMC, Rapidus, Renesas and Kioxia have already launched or launching production in 2026 or 2027.
• Japan currently has approximately 46–54 data centers that are launched recently, under construction, or otherwise in the “upcoming” project pipeline.
• Target: Japan to reestablish itself as a world class chip and AI hub.

Step into a market where technology meets long term vision—and where the future is already taking shape.

Photo credit: Laura Ockel

Japan’s ongoing industrial transformation—combined with demographic pressures, digitalization, and sustainability mandates—creates strong openings for international high‑technology firms. Between 2026 and 2030, the following areas provide the strongest opportunities:

1. Artificial Intelligence & Digital Transformation (DX)

Japan’s AI market is projected to grow from USD 780 million in 2023 to USD 11.74 billion by 2030, driven by corporate DX adoption and rising government investment.
Opportunities for overseas firms include:

• Generative AI platforms adapted to Japan’s linguistic and regulatory needs.
• B2B SaaS and cloud‑based workflow tools for SMEs still using legacy systems.
• AI‑powered automation tools for logistics, finance, manufacturing, and retail.
• Foundational cloud and model‑training infrastructure, as Japan pushes for domestic AI capacity.

Foreign companies such as OpenAI and NVIDIA have already established Japan presences, signaling robust entry conditions for global AI players.

2. Cybersecurity, Web3, and Metaverse Technologies

Cybersecurity needs are increasing as Japan modernizes its digital infrastructure, and foreign companies already hold a strong presence in this segment. Web3 and metaverse technology have also gained policy support, with business environments improving for foreign entrants.
Opportunity areas:

• Enterprise cybersecurity solutions for finance, government, and critical infrastructure
• Web3 identity, asset‑management, and compliance platforms
• Metaverse applications for training, retail, education, and urban planning

3. Green Technology, Hydrogen, and Renewable Energy

Japan’s carbon‑neutrality targets and GX transformation program—valued at USD 150 billion—create major opportunities across clean technology.
Foreign firms can benefit in:

• Hydrogen production, storage, and AI‑optimized electrolysis systems (a rapidly growing field tied to Japan’s large‑scale hydrogen roadmap)
• Hydrogen transport and safety technologies
• Offshore wind and solar supply‑chain technologies
• Smart grid, energy‑management software, and digital twins for utilities

4. Robotics, Automation & Advanced Manufacturing

Japan’s aging population and chronic labor shortages are accelerating demand for foreign robotics and automation technologies. The country remains a global manufacturing powerhouse with world‑leading R\&D capacity.
Strong market openings exist in:

• Warehouse robotics, autonomous logistics, and AI‑driven industrial automation
• Medical robots, elder‑care automation, and mobility assistance systems
• Predictive maintenance and factory AI for energy‑intensive sectors

The government’s Regulatory Sandbox makes Japan especially attractive for piloting advanced AI, IoT, and automation technologies.

5. Health Tech, MedTech & Biotechnology

Japan’s aging demographics create sustained demand for advanced medical technologies, pharmaceuticals, and digital health solutions. The U.S. Commercial Guide highlights strong opportunity areas in medical devices, robotics‑assisted care, and biotech manufacturing.

6. Cross‑Border E‑Commerce, Fintech & Digital Payments

Japan’s fintech sector increasingly relies on foreign innovators, with strong openings in payments, banking APIs, and cross‑border commerce platforms. The fintech environment is becoming more open due to regulatory reform and international partnerships.

Conclusion

Japan’s industrial policy from 2024–2026 represents a comprehensive overhaul aimed at strengthening industrial competitiveness, securing critical technologies, and ensuring long‑term economic resilience.

For overseas high‑technology companies, the period from 2026 to 2030 offers one of the most favorable environments in decades: rapid AI adoption, demographic‑driven automation needs, energy‑transition investments, and proactive government support are aligning to open new frontiers for high‑tech market entry and growth partnerships with Japanese companies.

Photo credit: Michael Pointner

Japan’s industrial policy has entered a period of profound transformation, driven by intensifying geopolitical pressures, rapid technological change, and the country’s long‑standing need to revitalize domestic productivity and investment. Between 2024 and 2026, the Japanese government has adopted a more assertive, mission‑oriented approach that reshapes how industry, technology, and national security intersect.

A Mission‑Oriented, Long‑Term Strategy for National Renewal

The Ministry of Economy, Trade and Industry (METI) has advanced its long‑term New Direction of Economic and Industrial Policies, reframing major societal challenges—such as demographic decline, climate transition, and digitalization—as engines for economic growth. METI’s plan employs coordinated tools including subsidies, tax programs, regulation, and public–private partnerships. Key measures include approximately 20 trillion yen of GX climate‑transition support, expanded semiconductor incentives under the 5G Act, a national startup development plan, and 1 trillion yen over five years dedicated to workforce reskilling.
To reinforce this agenda, Japan set an ambitious goal of 115 trillion yen in domestic investment by FY2027, signaling deep structural reform and long‑term industrial repositioning.

Economic Security and Strategic Domestic Manufacturing

Rising global uncertainty and intensified competition from China, South Korea, and Taiwan have elevated economic security as a core pillar of Japanese industrial policy. Studies highlight that Japan is now shifting from a “catch‑up” to a “keep‑up” industrial model, emphasizing safeguarding supply chains and enhancing domestic resilience.

The 2025 revision of the Industrial Competitiveness Enhancement Act marked a turning point. Effective April 2025, it introduced major tax credits and investment incentives for industries considered strategically vital—such as electric vehicles, green steel, sustainable aviation fuel (SAF), green chemicals, and semiconductors. The reform also expands support for SMEs and startups, recognizing their importance for innovation diffusion and supply‑chain diversification.

Innovation, R&D, and Human Capital as Central Pillars

Japan’s Integrated Innovation Strategy 2025 identifies science, technology, and innovation as core national strengths under the Sixth STI Plan. With rapid advancements in AI, robotics, quantum technology, and automation emerging globally, Japan seeks to expand its research capabilities, strengthen talent pipelines, and build innovation ecosystems. The strategy positions innovation as both an economic driver and a key component of national security, essential in a world where technological leadership determines geopolitical influence.

Automation and robotics are particularly vital as Japan confronts severe labor shortages; the government emphasizes AI‑driven productivity tools, robotics integration, and disaster‑resilience technologies as priority development areas.

Global Partnerships to Enhance Competitiveness

Japan is increasingly leveraging international partnerships to accelerate innovation and supply‑chain security. For instance, the EU–Japan Competitiveness Alliance, formalized in July 2025, exemplifies this approach. It promotes collaboration e.g. in next‑generation critical technologies and cyber- and infrastructure technology. Another commitment for deeper collaboration between EU and Japan is EU-Japan Economic and Industrial Cooperation Program, reaffirmed September 2025. Cooperations areas within this program are e.g. advanced batteries, solutions for decarbonization and biotechnology.

Photo credit: Takashi Miyazak