Interview

Accelerating Global Investment in Kansai: Building a Sustainable Ecosystem for Innovation

Kansai boasts a rich environment of cutting-edge technologies developed by its universities and research institutions, all supported by a robust regional ecosystem. As an emerging hub for deep tech and innovation, the region is attracting increasing global attention. With the upcoming “Global Startup EXPO 2025,” Kansai is set to leverage the power of its people and communities to co-create the future. Expectations are high that the region will continue to produce globally competitive startups. Buzz Palmer, CEO of MedTech Actuator—a leading Australian accelerator with a base in Osaka—states, “Investment in Kansai is set to accelerate, driving sustainable growth for its startup ecosystem.”

Key Takeaways from the Article

• Osaka has a well-established culture of collaboration with regional support organizations such as JETRO and the Osaka Chamber of Commerce, fostering a solid foundation for startup growth.
• The Kansai region is at the forefront of innovation in fields like precision medicine and stem cell research, delivering world-class research results.
• By increasing the number of successful startup cases in the global market and leveraging them as models, Kansai has the potential to strengthen its international competitiveness.

――What kind of services does MedTech Actuator offer to Japanese deep tech startups?

“To bring Japan’s advanced medical technologies to the world, we provide comprehensive programs that support global expansion.”

Our services focus on supporting the commercialization of medical technologies. We hold Japanese technology in high regard, considering it “gold-class,” and act as a bridge to bring it to the global stage. Specifically, we run accelerator programs designed to help startups understand commercialization processes and implement effective strategies. Additionally, we build global networks that connect startups with international mentors, experts, and corporations. We also work to develop sustainable local ecosystems by leveraging regional technologies and resources.

――Why did you choose Osaka as your base when entering Japan?

“It’s the integrated, innovation-driven environment across the region that attracted us.”

The decision was based on the unique characteristics and maturity of the local ecosystem. Unlike Tokyo, Osaka offers an optimal scale and provide excellent access to neighboring cities like Kyoto and Kobe, creating an ideal environment for synergy across the Kansai region. Additionally, there is strong collaboration with local support organizations, such as JETRO and the Osaka Chamber of Commerce, which foster a well-established culture of nurturing startups. For startups seeking for global expansion, Osaka truly stands out as an optimal base.

――What are the unique features of the Kansai ecosystem?

“University-driven technologies, especially in precision medicine and stem cell research, are fueling regional innovation and driving startup growth.”

Kansai is home to leading universities in medicine, such as Kyoto University, Osaka University, and Kobe University, which produce world-class research in areas like precision medicine, stem cell research, oncology, and more. A strong emphasis is placed on commercializing these technologies through partnership with industry, and Kansai-based startups that have developed globally recognized technologies in fields like regenerative medicine and medical imaging. The region also benefits from robust manufacturing and distribution capabilities of large medical device and pharmaceutical companies, which provide a solid foundation for realizing research into real-world applications. University-driven innovation is further accelerating startup growth, with strong support from major corporations, local governments, and national policies, all of which contribute to Kansai’s competitiveness in the global market.

――What are the current challenges compared to overseas ecosystems?

“The investment environment for healthcare and deep tech is still developing.”

While Kansai’s universities and research institutions conduct world-leading research—a significant strength—the investment environment for healthcare and deep tech in Japan remains underdeveloped compared to overseas hubs like Boston in the US or London in the UK. Investment amounts are notably lower, and there is a scarcity of serial entrepreneurs—those who repeatedly launch and grow new ventures. Additionally, examples of entrepreneurs successfully scaling up their businesses for a second time are rare.
Japanese startups also tend to be modest in their approach, with comparatively weaker marketing and self-promotion skills, often influenced by cultural factors. To address these challenges, it is crucial to adopt a more global mindset and perspective.

――What is needed to support global expansion?

“Support for international fundraising and cultural/language assistance is essential.”

MedTech Actuator’s “Global Navigator” program helps startups connect with customers and investors in new markets, and I believe such programs should be fully leveraged. Support for international fundraising is also crucial. Government initiatives can assist in establishing overseas subsidiaries while allowing companies to maintain their headquarters in Japan. To operate effectively in foreign markets, cultural and language support is vital. As mentioned earlier, a deep understanding of differences in language and business customs is an unavoidable but crucial challenge for successful global expansion. Another important factor is the creation of success stories. By increasing the number of globally successful startups and using them as role models, we can energize the Kansai startup ecosystem and boost its competitiveness on the international stage.

――How will the Osaka-Kansai Expo and Global Startup EXPO 2025 (GSE) impact the Kansai startup ecosystem?

“They are likely to stimulate interest and activity from investors and companies worldwide.”

The Osaka-Kansai Expo provides an excellent platform to showcase Kansai’s technological capabilities and ecosystem to a global audience, drawing international attention. Investors and companies from around the world will visit Kansai, seeking collaboration with startups and explore investment opportunities, which will accelerate the inflow of capital and formation business partnerships. Additionally, it provides a chance to shift the perception of Tokyo as Japan’s sole hub of innovation and highlight Kansai’s untapped potential to both domestic and international audiences. I look forward to seeing the Kansai startup ecosystem continue to develop and strive sustainably, even after the Expo concludes.