Lessons from Japan: Promoting entrepreneurship in Fukuoka
Kenjiro Takenami, Director of Ruby Software Business Development Project at Fukuoka Prefectural Government, spoke to an audience at Stanford about the government’s success in promoting entrepreneurship in the Fukuoka region of Japan, at a seminar organized by the SPRIE-Stanford Project on Japanese Entrepreneurship (STAJE) on November 3rd, 2011.
In Takenami’s presentation, he discussed that Fukuoka now has over 800 local software and digital content companies with the number of companies increasing 20% annually. It is ranked 5th in Japan for the total number of software businesses and total software sales revenue. He described that in the past, Fukuoka had faced challenges in promoting entrepreneurship because of the lack of investment, mentors, and innovators. In an attempt to solve these challenges, the Fukuoka government created new programs that financed local start-up companies and supported venture capital funds. However, these programs failed to boost entrepreneurship and regional development.
Takenami revealed that the turning point for the Fukuoka government’s success was the decision to support research and development for Ruby, a dynamic, open source programming language developed in Japan. The government committed to build a community around the programming language and helped entrepreneurs and businesses develop new technologies that used Ruby. They launched multiple incubators for developers and held periodic conferences for the community members to inspire and learn from each other.
Fukuoka prefecture has a population of five million and a GDP of over 180 billion US dollars. The city of Fukuoka, which was selected as one of the “Hot Cities The Top 10” by Newsweek in 2006, has been attracting the attention of foreign investors. It is located on the northern tip of Kyushu and is geographically closer to China and South Korea than any other major Japanese city. Historically, it has been the hub for business and trade to continental Asia. The prefecture is ranked 2nd in Japan for the number of universities and colleges specializing in science and engineering, with approximately 7,000 graduates every year.
Takenami concluded the seminar by highlighting that eight times as many local companies in Fukuoka develop using Ruby since they began in 2008. He also shared success stories of companies which began in Fukuoka, but are now internationally known, such as Nautilus Technologies.
ABOUT THE Speaker
Kenjiro Takenami is Director of Ruby Software Business Development Project, Commercial and Industrial Policy Division of Fukuoka Prefectural Government and is responsible for the Fukuoka’s software industry development efforts. Takenami is the former Executive Director of the Fukuoka Center for Overseas Commerce in America, based in Silicon Valley.
Following the seminar, SPRIE-Stanford Project on Japanese Entrepreneurship (STAJE), Stanford Graduate Business School and US-Asia Technology Management, Stanford School of Engineering co-hosted the Fukuoka Ruby Night Event, an annual Ruby developer conference, organized by the Fukuoka Center for Overseas Commerce in America (FCOCA).
The video clips for the keynote presentations of this event can be found here.