Where Innovation Happens by Tim Rowe
In this episode of Where Innovation Happens, I sit down in Tokyo with Tak Umezawa, a leading voice in Japan’s innovation ecosystem and Chairman of CIC Japan, for a wide-ranging conversation about Japan’s innovation economy. Tak has had a front-row seat to many sides of Japanese innovation. For much of his career, he led A.T. Kearney in Japan, stepping down as its Chairman last year. In that role, he served as an advisor to the CEOs of many large Japanese corporations, as well as to senior Japanese government leaders. He is known as a proponent of the idea that Japan can recognize and build on its uniqueness, not just as a technological power, but also as a cultural power. He helped spur many initiatives in this area, including the well-known Cool Japan initiative and fund. Tak also happens to have been my classmate at MIT Sloan School of Management, and a friend for 33 years. Since CIC’s arrival in Japan, Tak has helped build CIC into one of Japan’s most important startup communities. He agreed to become our Chairman a little under a decade ago, while continuing in his role at A.T. Kearney. This conversation is not just about startups. It is about the deeper question of how Japan can turn its extraordinary strengths into new global companies. And it is also two old friends catching up on a topic of shared interest. Japan is still one of the world’s great countries for quality, manufacturing, science, design, culture, and trust. But as Tak explains, having great ideas is not the same thing as innovation. Innovation requires making those ideas real. It requires commercializing them. It requires building companies that can compete in the most important markets in the world. We talk about why large Japanese companies are so good at their core businesses, but often struggle with disruptive innovation. We also talk about why Japanese startups may need to think globally from the beginning, rather than first building only for the Japanese market and expanding later. Tak makes a provocative suggestion: for some Japanese startups, getting acquired early by the right global company may actually be a smart way to bring Japanese innovation to the world faster. We also explore what Japanese innovation policy could look like if the goal were to create more globally competitive startups. Tak highlights three big ideas: Japan should attract more international investors; Japan should unlock the technology and talent trapped inside large corporations; and Japan should internationalize its people, companies, and institutions much more deeply. This leads us into a broader discussion about talent. We talk about women in Japan’s workforce. We talk about Japanese people who have lived abroad and may not feel fully welcomed back. We talk about dual citizenship, overseas Japanese talent, and what Japan might learn from countries like India and China. We also talk about Japan’s global cultural power. Food, anime, manga, gaming, beauty, fashion, and design are no longer niche interests. They are major global markets. But in many cases, non-Japanese entrepreneurs have been faster than Japanese companies at building global businesses around Japanese culture. That is both a warning and a huge opportunity. Toward the end, we talk about CIC Japan itself. Tak shares what he thinks helped CIC Tokyo develop such a strong community. He also talks about CIC Catalyst, climate innovation, life sciences, Fukuoka, Osaka, and the next stage of CIC’s work in Japan. For me, this conversation is really about Japan’s next chapter. Japan has world-class science. It has trusted brands. It has creative culture with global appeal. It has extraordinary talent. The question is how to connect those strengths to entrepreneurship, global markets, and places where innovators can find each other. That is where innovation happens. Featured guest: Tak Umezawa Chairman, CIC Japan Host: Tim Rowe Founder and Executive Chair, CIC
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