In October 2024, Nagoya in Aichi Prefecture will witness the grand opening of what will be the largest startup support hub in Japan, SoftBank Corp.’s (TOKYO: 9434) “STATION Ai.” Positioned as a core facility for the prefecture’s strategy to foster startups, STATION Ai aims to leverage Aichi's strengths in industrial clustering to foster new innovations by merging traditional manufacturing expertise with innovations from startups on the cutting edge. President and CEO Hirotaka Sahashi spoke about what’s on the horizon.
Hirotaka Sahashi
President and CEO, STATION Ai Corporation
After joining SoftBank Corp., Sahashi held roles in human resources and corporate strategy at SoftBank Group Corp. Following the 2011 Great East Japan Earthquake, he oversaw renewable energy projects as a director of business planning at SB Energy Corp. In 2014, he joined SB Innoventure Corp., where he led the development of in-house entrepreneurial programs and hands-on support initiatives. In September 2021, he was seconded to STATION Ai, where he now serves as President and CEO.
Aichi's industrial strength to fuel open innovation at STATION Ai
STATION Ai is opening this October in Nagoya. What’s it all about?
Designed to foster “open innovation*,” STATION Ai will be Japan's largest startup support hub. As a central facility in the “Aichi-Startup Strategy,” STATION Ai will capitalize on the region's industrial expertise to create an ecosystem that brings traditional manufacturing know-how and cutting-edge technologies together, driving new innovations and boosting industrial growth.
Aichi is home to globally recognized automotive companies and research institutions known for their technological prowess and research capabilities. By leveraging these strengths, STATION Ai aims to nurture top-tier startups within Japan and attract promising startups from around the world to establish a new global hub of innovation.
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Open innovation: the creation of new value through the combination of in-house and external technologies.
What are some of STATION Ai’s unique features?
Its standout feature is undoubtedly the number of companies it will house. We anticipate seeing around 500 companies moving in when we open in October, and have plans to expand to approximately 1,000 companies within five years. While coworking spaces for startups have become more common across Japan, a facility that brings together 1,000 companies – including startups and established businesses – together on this scale is unprecedented.
To nurture startups and promote open innovation, we’ll have dedicated community managers offering a variety of support services. In addition to connecting companies, we’ll host events aimed at assisting startups to create an environment where collaboration and new business opportunities come about naturally. This is STATION Ai’s most distinctive characteristic.
How is SoftBank involved in STATION Ai?
SoftBank was selected by Aichi Prefecture in 2021 as the representative organization to build and run its startup support program. We established STATION Ai as a wholly-owned subsidiary that’s responsible for designing, constructing, operating and maintaining the facility. SoftBank also invested in STATION Ai’s fund to promote the creation of startups. Leveraging SoftBank's global network, we aim to attract top-tier companies and startups. We’ll also offer tailored support programs for new business creation, incubation and mentoring based on SoftBank's extensive experience in supporting startups.
We also plan to incorporate advanced technologies, such as IoT, AI, robotics, and big data analysis—which are already being used at SoftBank’s smart building headquarters in Takeshiba—into STATION Ai. This will make it a facility that accelerates open innovation while enabling occupants to constantly experience advanced technologies.
Aichi has key elements for a startup ecosystem
You mentioned that Aichi is already an industrial center. How does it fare in terms of fostering startups?
Recognizing their necessity, the Government of Japan outlined a five-year plan for nurturing startups. However, the current focus is highly centered on Tokyo. To foster startups that can compete globally, a strong industrial base, top-tier research universities, a pool of talented individuals, and a robust support framework is essential. Aichi has all of these elements, making it a region with tremendous potential. The presence of manufacturing giants and the concentration of company headquarters here are major advantages. It’s the head offices that typically drive new business and open innovation initiatives.
STATION Ai offers a wide range of support programs
What are the benefits for startups that join the STATION Ai community?
For a startup to grow, support in the form of venture capital investment, access to a customer base and sales networks of large companies is crucial. Having various companies converge at a single hub offers tremendous appeal in this sense.
Not only will startups have potential business partners among those based at STATION Ai, they’ll also benefit from the presence of other startup support partners like SoftBank. Startups go through different growth stages, each with its own distinct challenges and needs for support. Having all the necessary support available under one roof at STATION Ai, regardless of a company’s growth stage, is another major advantage.
How do large companies benefit?
In the past seven to eight years, open innovation has gained momentum, and many major companies have established open innovation functions or corporate venture capital arms. However, finding and partnering with the right startups isn’t easy. We carefully screen the startups that want to join STATION Ai, ensuring that large enterprises have a high probability of encountering quality startups.
We also offer support for developing open innovation talent within large corporations. We help them understand the nature of startups, assist with setting agendas for collaboration and even help them formulate strategies before any matching takes place. With a diverse range of support services available, we believe large companies will find significant value in STATION Ai.
Making Entrepreneurship the Norm with an Oasis for Open Innovation
You opened "PRE-STATION Ai" ahead of the October launch. How has the response been so far in supporting startups?
At the end of June 2024, we had 426 companies residing at PRE-STATION Ai, a preparative initiative based at WeWork Global Gate Nagoya, which exceeded our expectations. Startups have joined us from all over Japan, from Hokkaido to Okinawa, and from 12 countries and regions around the world, reflecting a high level of interest. I've also noticed a shift in how the local community perceives startups. When I first started, Aichi was often considered a “desert for startups.” When I gave lectures at universities, I sometimes received criticism from parents, asking, “Is STATION Ai taking away the opportunity for new graduates to secure good jobs?" I feel this mindset is changing now, however.
So that means challenges specific to Aichi Prefecture are changing?
Nagoya faces the challenge of low mobility in its workforce. We want people working in large companies to also explore the startup scene. So we introduced a program called “ACTIVATION Lab” for professionals. Whether it's starting with a side job or transitioning to earn a more competitive salary, we're working to increase the number of people involved in startups.
What are the current trends among participating startups?
Aichi Prefecture has led Japan in manufacturing for 45 consecutive years. It’s home to world-class industrial clusters, including the automotive and aerospace sectors, as well as robotics, textiles and ceramics. Naturally, many businesses here are related to these industries. Given the prevalence of factories in the region, Aichi tends to attract startups with products aimed at improving efficiency in manufacturing environments in contrast to Tokyo. We also see a significant number of startups in the healthcare, medical and AI sectors.
Are there any specific fields you hope to see more startups getting involved in?
We believe it's essential to take advantage of Aichi’s unique assets. First, there’s a focus on sectors that will update the current manufacturing industry. Additionally, decarbonization and climate tech, which pose significant challenges to Japan's manufacturing sector, present enormous opportunities for startups. We also consider the healthcare sector a priority and hope to attract even more startups in that field.
A view from the STATION Ai facility while under construction
What are your aspirations for the October opening and beyond?
The gathering of startups, partner companies, and large corporations is progressing smoothly. I want to create an incubator space where people say, “If you go to STATION Ai, you can launch a new business.” I understand that it might be difficult for everyone to fully grasp the concept before the opening, but I’m confident that it’ll become an incredibly attractive environment for those interested in collaborating.
Ultimately, our goal is to make Aichi the go-to place for open innovation, with STATION Ai at its core. By successfully implementing this model in Aichi and spreading it to other parts of Japan, I hope to demonstrate the potential for regional economic growth and the excitement of expanding into global markets from Japan.
Related Article
(Posted on August 29, 2024, Original Article Posted on August 8, 2024)
by SoftBank News Editors
STATION Ai: Japan’s Largest Incubation Facility
Scheduled to open in October 2024 on the south side of Tsuruma Park in Nagoya City, STATION Ai will be Japan's largest incubation facility. Its site area spans approximately 7,300 square meters and its floor space is 23,600 square meters, with seven above-ground floors. In addition to offices for startups and partner companies, the facility will feature a tech lab, event spaces, accommodation facilities, childcare services, cafes, restaurants, and the “Aichi Founders’ Hall,” which will showcase the achievements of entrepreneurs and business leaders with links to Aichi Prefecture.
