Boston, not Silicon Valley, is Kansai’s model at Global Startup Expo 2025

JStories ー The Greater Kansai region has long been seen as a poor cousin to Tokyo ー and even to Nagoya and Fukuoka ー when it comes to being a base for start-up and tech entrepreneurs. But that is changing as Kansai ー a region in the south-central part of Japan’s main island, Honshu, including Osaka, Kyoto and surrounding prefectures ー carves out a different path in Japan's startup landscape to position itself more like Boston: a research- and medtech-driven ecosystem built on universities, hospitals, and industrial heritage. That distinction became clear at the Global Startup Expo 2025, held alongside the Osaka Kansai World Expo and showcased the region’s potential.

“Unlike Tokyo, which can feel overwhelming due to its vast size and numerous stakeholders, Kansai offers a more cohesive community where stakeholders are aligned and work collaboratively toward common goals,” said Takuko Sawada, Vice Chair of the Kansai Economic Federation.

Instead of trying to beat Tokyo or Fukuoka, regional leaders have focused on finding a way to expand on Kansai’s unique strengths. The model most often cited was not Silicon Valley’s disruption-focused, venture capital-led approach. Rather, it’s another American hub that built its startup culture by expanding on existing strengths instead of creating one from scratch: Boston.

With the Osaka World Expo seeing record attendance  as it draws to a close, 2025 could turn out to be a bumper year for Kansai, after hosting numerous startup and tech gatherings in the first three quarters. It's all part of the region's broader plan to showcase its growing potential and, at the same time, connect with potential partners from around the world.

While the Global Startup Expo, organized by the Japan Venture Capital Association within the grounds of the Osaka World Expo, was the headline event, it was just one of many held in September in Kansai. Tech Osaka 2025 was at the Osaka Innovation Hub in the Umeda business district, the International Frontier Industries Messe 2025 was in Kobe, and an Open Innovation Showcase was held in Kyoto, along with more than a dozen side events across the region.

“These events are expected to foster collaborations between international companies, VCs, Kansai startups, and large corporations,” said Sawada.

At the Global Startup Expo, there were more than 140 startups exhibiting, including numerous Kansai-based ones, such as Ooyoo and Enecoat, cleantech startups based in Kyoto; JiMED and Luxna, healthtech startups based in Osaka; and others from the region, such as mobility startups newmo and LOMBY.

In 2024, when MedTech Actuator – a globally recognized accelerator for MedTech, HealthTech, and BioTech ventures – was deciding where to set up their first Japan office, they realized that Kansai was the right fit.

“Osaka is big enough that wonderful research, capital, and corporate partners are here, and it's beautifully connected to everywhere in Japan, so we felt it was an excellent place to launch the next wave of global medtech startups,” said Vishaal Kishore, MedTech Actuator's Chief Strategy Officer, shortly after the new office was opened.

According to Yoshiki Sawa, a Kansai native, formerly a medical professional and now director of the Organization for Advanced Healthcare Innovation, there is immense, unrealized potential in medicine and science in the region.

“We have more than 12 medical schools in the Kansai area, which means that there are many seeds in the field of healthcare, and we have such great potential to produce startups and unicorns,” said Sawa. “But unfortunately, we are not good at implementation.”

In fact, several of Asia’s top research universities are located in the region, including Osaka University, Ritsumeikan University, and Kobe University. But, so far, the path from turning research innovations into a marketable product has been lacking. 

Sawa’s organization played a role in the development of what he hopes will be a catalyst for science-driven innovation – Nakanoshima Cross, which opened in 2024 as a center for medical innovation in the heart of Osaka.

“We are just starting to develop an ecosystem with industry, the public, and academia,” said Sawa. “I hope that so many people, including also from other countries, will help us and do great collaboration.”

It was a surprise when Switzerland, a country known for its scientific and research prowess, decided to set up its first Japan-based Swissnex Center in Osaka instead of Tokyo or Nagoya. Since 2023, they’ve been enabling exchanges between Japan and Switzerland in areas such as healthcare, energy, art, and more.

“Basically what you get in the Kansai region is all the ingredients that you need for successful startups,” said Felix Moesner, CEO and Consul for SwissNex Osaka. “So obviously we connect very strongly with the Kansai region’s strengths.”

Located near Osaka Station, SwissNex Japan’s mission is to connect Switzerland with Japan and the rest of the world. It has already brought more than 150 startups to Japan. There are just six SwissNex centers around the world, in cities where they see potential to enable collaboration. One, notably, is in Boston.

“We usually pick one of the most dynamic spots around the world for SwissNex,” said Moesner. “In Japan, it's needless to say that one of the best bets is definitely the Kansai region.”

For Kansai, the hope is that others will follow in SwissNex’s footsteps. And there are signs showing it might not need to wait long. In early September, the Indian city of Bangalore signed an agreement with Osaka, seeing the potential of linking its technology with Osaka’s manufacturing and industrial strengths. Despite being only the fifth-largest metro region in the country, Bangalore is widely considered the center for Indian startups and tech entrepreneurs.

Officiating President of the Bangalore Chamber of Industry and Commerce, K Ravi compared the partnership to creating a bridge between innovation and industrial production. “Our start-ups can scale with Osaka’s manufacturing prowess and their industries can modernize with our technological agility,” he said. 

Written by Nithin Coca

Edited by Kwee Chuan Yeo | JStories

Top photo: Moritz Brinkhoff | JStories

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