Japan's entrepreneurial culture has traditionally been characterized by strong risk aversion and a preference for employment at large corporations. However, in recent years, it has been gradually changing due to increased interest in university spin-offs and open innovation, as well as the expansion of government support measures. There is also a growing number of "social good" startups that focus on technological innovation and aim to solve social issues.

Startups based on research from universities and public research institutions (such as RIKEN and the National Institute of Advanced Industrial Science and Technology) are becoming more active. Industry-academia collaboration is advancing in various forms, including the commercialization of patents through TLOs (Technology Licensing Organizations), new technology development through joint research, and the establishment of entrepreneurial support facilities within universities. This is expected to foster the creation of "deep tech" startups with strong technological capabilities.

The Japanese government has formulated plans such as the "Five-Year Plan for Startup Development" to promote comprehensive support. Specific measures include research and development grants from JST (Japan Science and Technology Agency) and NEDO (New Energy and Industrial Technology Development Organization), startup loans from the Japan Finance Corporation, and tax incentives. There are also numerous programs to support global expansion.

Innovation is prominent in fields that leverage Japan's strengths. Specific areas include robotics, AI & machine learning, biotechnology & healthcare, cleantech (environmental technology), next-generation mobility, and the space industry. In these fields, long-cultivated manufacturing technology is combined with advanced research and development.

Challenges include fundraising (especially at the seed and early stages), securing talented personnel, stringent conditions in transactions with large corporations, and the difficulty of entering global markets. Additionally, societal tolerance for failure is said to be lower compared to Western countries, which is one factor that can cause hesitation to take on challenges. Private and public support to overcome these challenges is currently being expanded.