1. Introduction

What is the Innovation Leaders Summit (ILS): its significance, location, participants, and relevance for startups and SMEs.
The Innovation Leaders Summit (ILS) is Asia's largest open innovation event, launched in 2014 under the patronage of the Ministry of Economy, Trade, and Industry. Its mission is to connect major corporations with startups to create new, innovative businesses. The main matching program, “POWER MATCHING,” saw the participation of 105 major companies and 625 promising startups in 2023, recommended by 102 prominent venture capitalists, government agencies, and other national and international organizations. Over four days, 2,890 business meetings were held, and 969 cases of collaboration opportunities were identified for follow-up.

With its high-precision matching program, where one in three matches leads to collaboration, ILS offers a platform to rapidly accelerate open innovation initiatives. The ILS 2024 event was held at the Toranomon Hills Mori Tower, one of Tokyo’s most iconic skyscrapers, situated in the Toranomon district—one of the city’s key economic hubs.

Why MATIX chose to participate and initial expectations.
MATIX decided to participate because the Japanese market represents a significant opportunity. Japan's industrial production is strong in automotive, white goods, home appliances, and other sectors that align perfectly with MATIX's target industries. Furthermore, Japan is synonymous with process optimization and efficiency—values that MATIX embodies and expects to resonate well with industries in the Land of the Rising Sun.

"Smart Manufacturing and Advanced Industry" and "Software and SaaS" are two of the seven Japanese industrial trends identified by the ITA in the Japan 2024 report. Moreover, Japan is home to many large supply chain leaders—ideal clients for MATIX. The mission’s objective was clear: to secure the first client in Japan.

2. The ILS Experience

The Event Atmosphere: Networking, Environment, and Innovation Level.
The event unfolded across four main halls, where startups showcased their products, and major corporations presented their needs. The same format applied to specific pitch events. The Power Matching meetings, pre-arranged through the ILS online platform, took place in dedicated areas. Additionally, the “MUGENLABO Café” allowed startups to approach major corporations without prior appointments and pitch their products.

Networking sessions, held throughout the day, facilitated a more informal yet targeted way of building connections. The event was carefully designed to foster discussions, with participants eager to share ideas and listen. The compact, “Japanese-style” layout (small spaces) helped break down social barriers, as anyone passing by the MATIX booth would stop to ask about the product—a stark contrast to large American trade fairs.

The level of innovation was exceptionally high, with startups spanning robotics, quantum computing, AI across various industries, defense, and telecommunications.

The Numbers:

• 113 major corporations participated in POWER MATCHING.
• 812 promising startups were recommended by 106 Japanese and international VCs, government agencies, and organizations.
• Over 3,121 business meetings took place over 16 days.
• 1,032 collaborations were identified as opportunities for follow-up.

Key Sessions and Meetings: Highlights.
Notable experiences included the “MUGENLABO Café”—networking sessions where startups could literally queue up to pitch their products to industry giants like Mitsubishi, Sharp, Panasonic, and NEC. On the other side, dedicated innovation managers were ready to listen and absorb the opportunities presented.

3. What Japanese Startups Teach Us

Japan’s Innovation Culture: Technological Development and Collaboration Models.
Japanese venture capital funds have grown significantly in size and investment capabilities. In the past three years, thirteen funds worth over JPY 30 billion each have been created, reflecting an increasing availability of financial resources to support ambitious, long-term projects.

Major Japanese corporations often operate their own Corporate Venture Capital (CVC) arms, designed to finance—and eventually absorb—startups. Japan stands out for its cutting-edge technological innovation, supported by a rapidly expanding startup ecosystem. The nation’s focus on key sectors, such as robotics, deep tech, clean tech, and life sciences, underscores its competitive edge, driven by advanced technological expertise, targeted government support, and corporate involvement in financing and collaboration.

Emerging Trends: Technological and Industrial Developments.
Key emerging sectors in Japan include:

• Robotics and Drones
• Deep Tech
• Clean Tech and Climate Technology
• Life Sciences
• Smart Manufacturing and Advanced Industry
• Software and SaaS
• Aerospace

These trends provide valuable inspiration for the Italian market, highlighting opportunities for collaboration and technological exchange.

4. Opportunities for Italian SMEs

How to Leverage Global Events Like ILS: Practical Tips for Success.

• Study the event manual and organization thoroughly to make the most of a structured, rich event calendar.
• Hire an interpreter: Overcoming the language barrier is critical in Japan.
• Master your 5-minute pitch: Explaining complex, high-tech products clearly and concisely is essential. Tailor your explanation to your audience.

5. Key Takeaways

Personal and Professional Lessons Learned:

• Japan has one of the highest concentrations of major corporations (keiretsu) globally, but over 99% of businesses are SMEs, similar to Italy.
• Building trust-based relationships is central to doing business in Japan. Initial meetings focus on personal introductions rather than business discussions.
• Starting a project in Japan can take over a year, but once trust is established, relationships are long-lasting.
• Japan is a closed market. Companies are cautious about foreign products, rigorously testing them—often through subsidiaries abroad—before adoption.
• Language and distance barriers are significant. Japanese companies expect local support and business conducted in their native language.
• Despite its technological advancement, Japanese business culture remains analog and face-to-face. Personal interactions are highly valued.
• Ultimately, business decisions rely on clear numerical evidence. After the initial rapport-building, discussions proceed only if the supplier demonstrates precise savings and value.

For MATIX, Japan represents an exciting yet challenging market. Being among the first to introduce its technology would be a significant competitive advantage.