High-tech gateway to Asia by leader6


									                         Cultivation of Asian Entrepreneurs in Kawasaki
                     - Through the Concept of Asian Venture Business Town -

                                        Fumito NAGASAWA
   International Economic Affairs and Asian Venture Business Promotion Office, Kawasaki City
                    1 Miyamoto-cho, Kawasaki-ku, Kawasaki 210-8577, JAPAN

Kawasaki City has joined ASPA since April 2008 (it is the first case as a local government).
Kanagawa Science Park (KSP), a pioneer in science parks in Asia, is located in the middle of
Kawasaki, and the KSP project was promoted with the initiative of Kanagawa Prefecture and
Kawasaki City.
We Kawasaki City really appreciate that ASPA gives us an opportunity to make a presentation at
2008 IASP-ASPA Joint Conference. It is my pleasure to introduce Kawasaki and a case that the City
Government is directly implementing an incubation project through the Concept of Asian Venture
Business Town. I hope it will be a great chance to exchange information with members of ASPA and
In this paper, I will first generalize Kawasaki’s Industry and then I shall show you some facilities
and projects that support and activate corporate innovation. Finally, I will explain the Concept of
Asian Venture Business Town in detail.

1. Kawasaki – Heartland of Japanese Industry
1-1 Outline of Kawasaki City
Kawasaki City, located in the center of the Tokyo metropolitan area, offers direct access to the
largest consumer market in Japan as well as excellent domestic and international transportation links.
Directly northeast of the city is Tokyo’s Haneda Airport, which is a central airport for domestic
flights, can be reached within only 14 minutes. When the airport begins operation as an international
airport in 2010, it is expected to trigger the development of our city as a gateway to Asia.
While to the east is the Port of Kawasaki, a fully equipped international harbor that maintains
shipping lines with major ports from around the world. Additionally, Kawasaki’s connection to the
country’s extensive network of rail lines and roads provides for quick and easy links to Japan’s major
urban areas.
Kawasaki City has a hundred-year long history as an industrial powerhouse. It was organized as a
municipality in 1924 and had roughly 50,000 citizens at the time. The city has now become an
international metropolis with a population of 1.4 million and GDP of ¥4.7 trillion ($44.6 billion).
Major Industries are steel, electronics, communication, machinery, oils, chemistry, information, and
service. Kawasaki has the highest percentage of manufacturing in GDP among major cities in Japan.
1-2 Accumulation of Excellent Companies
Kawasaki City, blessed with such exceptional geographic location, over the years has accumulated
numerous research and development institutions as well as cutting edge industrial technologies,
making it one of the more prominent high-tech centers in all of Japan. Kawasaki is home to many
global enterprises such as NEC, Canon, Toshiba, Fujitsu who are one of the most prominent
international information and communication enterprises, JFE Steel which owns a high level
preservation technology for environmental sustainability, and Ajinomoto which is a food and amino
acids manufacture.
Kawasaki city has amassed over 200 research and development institutions representing various
fields including the IT, electronics, machinery, and biotechnology industries. As a result, the
percentage of the workforce employed at scientific-related research and development organizations
is number one in Japan.
Also small and medium-sized enterprises (SMEs) who own a world class high-level technology are
concentrated inland of the city. Therefore, it is very easy to procure parts and components
manufactured by highly matured skills. Kawasaki proudly calls itself one of Japan’s major industrial

1-3 Major Advantages of industrial location
Kawasaki has six advantages of industrial location.
1) Convenient access
2) Huge market
3) Home to major worldwide enterprises
4) Bringing together industrial technology and R & D capabilities
5) Excellent human resources
6) Three science parks to support the development of new enterprises
It is necessary for us to utilize these advantages and play a role in supporting corporate innovation.

2 Organizations and Activities for Supporting Corporate Innovation
2-1 Three Science Parks Devoted to Creating New Businesses
Kawasaki is a home to three science parks giving rise to new business. KSP is the first (established
in 1989) and the largest science park in Japan. 148 research and development companies are located
as of May 2008. KSP is fostering entrepreneurs and supporting venture firms actively as an
New Kawasaki Science Park that is an academic-industrial cooperative research base contains “K2
Town Campus” (research project offices of Keio University, one of the top private universities in
Japan) and Kawasaki Business Incubation Center (KBIC), while Techno Hub INnovation Kawasaki
(THINK) is run by a private sector.
These three separate science parks promote both R&D at the cutting edge of science and technology,
and product development through several activities such as industry-university collaborations. Their
efforts make it possible to establish new venture firms or make advances into new fields.

2-2 Asian Intellectual Property Forum in Kawasaki
Enhancing intellectual property (IP) rights is one of key issues for development of the region. For
the purpose of encouraging the creation, protection and utilization of IP, Kawasaki City formulated a
Kawasaki IP Strategy in February 2008.
On April 19, 2008, Kawasaki City launched the Asia Intellectual Property Forum in Kawasaki in
conjunction with Microsoft Corp. Dr. Lee Jong-Hyun, Chairperson of ASPA, and many other experts
from various organizations and cities which have friendly relations with Kawasaki City attended
from Japan and overseas, and exchanged lively opinions as speakers and panelists. To wrap up the
forum Kawasaki City Mayor Takao Abe signed the Declaration of Cities Advanced in Intellectual
Property Ethics.
Through the forum, we are aiming for the realization of a society which understands and appreciates
IP in order to sustainably develop regional economies in the global community, and in the future, we
hope to hold the forum in other Asian cities.

2-3 Kawasaki International Eco-Tech Fair
To promote the transfer of environmental technology to the international community, Kawasaki City
will hold the Kawasaki International Eco-Tech Fair in February 2009, which will showcase the
environmental technologies, products and services that companies and other organizations in
Kawasaki have. It is planned to transmit information from Kawasaki to the rest of the world about
our efforts against environment and companies’ technologies of energy-saving during the production
process. This Eco-Tech Fair will be a great opportunity for foreign visitors to see such technology
and discuss business opportunities with exhibitors.
Kawasaki City has a wealth of eye-opening cutting-edge environmental technology. Chinese
president Hu Jintao visited in May, and inspected the JFE Group’s plastic bottle recycling facility in
Kawasaki, a bike-mounted water purifier was given to him as a gift by our Mayor Takao Abe.
We sincerely welcome the participation of business operators, managers and persons in charge
corporate purchasing, environmental management or product development, public officers in charge
of environment, industrial and commercial organizations, and consumers in general from home and
abroad. Kawasaki City contributes to a better world by spreading environmental technology and
products worldwide while also paying close attention to the protection of IP.

3. The Concept of Asian Venture Business Town
3-1 Target
Nowadays, the number of business visitors to Kawasaki from the Asian countries is on the rise since
their interest grows as they are attracted more. A necessity to make a plan that will bring a mutual
benefit and make a contribution to the world in the coastal area through nurturing this momentum
has grown.
Since 2004, Kawasaki City has been going ahead with a strategic approach called “the concept of
Asian Venture Business Town”. By utilizing the power of Asia that is rapidly expanding in the global
industry and market, we are promoting to create a venture business primarily led by entrepreneurs in
Asian region, and establish companies who are capable to operate globally. We are aiming to raise
new industry which is capable to contribute to the world from the community (town) for joint
research or an industry based in Kawasaki.
By deploying the Concept of Asian Venture Business Town, Kawasaki City will accelerate
developing a business, exchanging people, fostering entrepreneurs and raising a business opportunity
between Asian cities and Kawasaki and also will strive to contribute to the world by transferring the
environmental technology that possessed by companies in the coastal area.

3-2 Assistance and Incentives
Kawasaki City maintains a comprehensive one-stop-service to actively support foreign researchers
and venture firms looking to develop their research ideas and business in Kawasaki. When the
companies that we have attracted initially set up business in Kawasaki, we offer them support
coordinating with related bodies such as Kawasaki Institute of Industrial Promotion and KSP.
Through utilization of the facilities’ in-depth experiences and noted achievements, the venture firms
will be given support for the creation of new, innovative companies and educational training
The Asian Venture Business Town is based at THINK. The foreign researchers and venture firms
moving to the Town have received reduced-rent office space for two years (50% the first year and
30% the second year in 2008).
In the next stage, we encourage them to establish mutually beneficial relationships with Japanese
companies, to help them do business in Japan and also to grow into companies that can contribute to
their own countries’ development when the companies’ heads return there.

3-3 Information of Tenant companies
Since Vietnamese and Korean companies entered into the Town as the first tenants in November
2004, there have been 23 companies from 5 countries/regions in total. They operate their business
actively, and there are some which act as bridges between their home country and Japan. The tenant
list of the Town is shown as below.
               Company name                                                                Description of operations
                                               Place of birth
 VTM Co., Ltd.                                Ho Chi Minh,          Development of applications for mobile phones and of firmware for digital
 (former VTECHMATE Co., Ltd.) (Graduated) Vietnam                   electronic equipment
 Ecotronix Corp.                                                    Development and sale of DVR (surveillance) systems, sale of chips for
                                              Seoul, Korea
                                  (Graduated)                       reception of one-segment broadcasting
 FECO Co., Ltd.                                                     Manufacture and sale of industrial materials (container bags) from waste
                                              Shanghai, China
                                  (Graduated)                       plastics
 Japan Hundsun Software Co., Ltd.                                   Outsourced development of software, fostering of bridge system
                                              Zhejiang, China
                                  (Graduated)                       engineers (BSE), consulting, technical support
 RE BIRTH, Inc.                                                     Technology for preventing leaks of electronic information, personal
                                              Shanghai, China
                                  (Graduated)                       computer recycling, consulting on resource circulation
China Yixing Industrial Park for Environmental
                                               Yixing, China        Joint Japan-China project, Environment-related technology transfers
Science & Technology,             (Graduated)
 Kakei Ceramic Material Research Laboratory,       Shanghai,       Research on new ceramic materials created using low-pressure injection
 Ltd.                               (Graduated)    China           molding technology
 Integrative Healthcare Institute Co., Ltd.                        Research and development in health care and nursing care systems using
                                                   Jilin, China
                                     (Graduated)                   IT
 ITMG Co., Ltd.                                    Inner Mongolia, Search engine service (the 4th generation search engine), especially for
                                     (Graduated)   China           EC
 E-Service Co., Ltd. (former RES Co., Ltd.)                        Development, manufacture and sale of equipment for transforming waste
                                                   Seoul, Korea
                                     (Graduated)                   plastics into oil
 UbiNavi Co., Ltd.                  (Graduated)    Shanghai, China Development of AI applications for software and systems
 Eco-Vehicle                       (Graduated) Shanghai, China R&D and manufacture of electrically-powered bicycles
 Hui He Co., Ltd.                  (Graduated) Jilin, China      Development of embedded control software and Web systems
 JHC Co., Ltd.                                   Shanghai, China Development, production and sale of ceramics products
                                                                 Development of audiovisual personnel training programs for shared
 CJ Niche Co., Ltd.                              Jilin, China
                                                                multinational use
                                                                 East Asian market research study and service, development of search
 NEXT ASIA INTERNATIONAL Co., Ltd.               Taipei, Taiwan  system for international information for Japanese SME, and international
                                                                 business matching
 Easter Envi-Tech                                                Development, research and sale of equipment to collect steel caddy’s
                                                 Seoul, Korea
                                     (Graduated)                 aluminum lid
                                                                 Technology development of silicon, R&D of conductive rubber for
 Tokyo Electronic Industry Co., Ltd.             Hunan, China    communication equipment, import/export of silicon RM and rare metals
                                                                 related product, investment consulting
 Luvina Software Co., Ltd.                       Hanoi, Vietnam System integration, software outsourcing
 Kenho Biotechnology Co., Ltd.                   Jilin, China    Research and development of biotechnology, international trade
                                                                 Research and development of information processing, information
 Chusei Software Co., Ltd.                       Jiangxi, China
                                                                 processing and information providing services
                                                 Tamil Nadu,     Dispatch of Indian IT professionals specialized in CAD(Computer Aided
 market-i Co., Ltd.
                                                 India           Design) and financial market, on-shore/off-shore software development
 Renacentia Co., Ltd.                              Hanoi, Vietnam   Development of applications for mobile phones

Reflecting Kawasaki’s industrial location and activities of supporting corporate innovation as the
background of the Concept of Asian Venture Business Town, I have briefly described our support for
Asian human resources development that accepts entrepreneurs in Asia. We also feel that it is
necessary to establish a systematic means of collaborating with the municipalities and governments
of other countries by utilizing these human resources.

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