Tokyo’s emergence as a global startup hub marks a significant shift in Japan’s economic landscape. Traditionally dominated by large corporations, Japan’s economy is now witnessing a surge in entrepreneurial activity, particularly in its capital city. The 1990s economic stagnation, known as the “Lost Decade,” prompted a reevaluation of Japan’s economic strategies, leading to a greater emphasis on innovation and entrepreneurship.

Tokyo’s startup ecosystem has been bolstered by government initiatives, such as Abenomics, which introduced structural reforms to support startups. Policies simplifying business registration, providing tax incentives, and fostering public-private partnerships have created a more dynamic environment for entrepreneurs. The rise of co-working spaces, accelerators, and venture capital has further fueled the growth of startups in Tokyo, making the city an attractive destination for both local and international entrepreneurs.