The , headquartered in
Tokyo
Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and List of cities in Japan, largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, ...
,
[
] is a
public-private partnership between the
Japanese government and 19 major corporations.
The INCJ was established as a temporary (15 years) corporate entity
[ on July 27, 2009; with the prime objective of "boosting the competitiveness of Japanese firms by promoting a philosophy of 'open innovation' and creating next-generation businesses in promising new technologies by providing capital and managerial support, through private-public partnership."][
]
The business and investments of INCJ are supervised by the Ministry of Economy, Trade and Industry of Japan (METI)
The or METI, is a ministry of the Government of Japan. It was created by the 2001 Central Government Reform when the Ministry of International Trade and Industry (MITI) merged with agencies from other ministries related to economic activities, ...
.
History
In early 2009, the Japanese government along with major Japanese corporations conceptualized the legal framework
A legal doctrine is a framework, set of rules, procedural steps, or test, often established through precedent in the common law, through which judgments can be determined in a given legal case. A doctrine comes about when a judge makes a ruling ...
of a corporate entity - whose aim is ''to leverage Japanese technological and industrial prowess to create sustainable next-generation businesses using a philosophy of "Open Innovation" and enhance the value of Japanese businesses.''[ The INCJ was created to make investments aimed at creating an ecosystem of innovation and fostering an “open innovation” model, i.e. “flow of technology and expertise beyond the boundaries of existing organisational structures" — be it start-up companies, medium-sized enterprises or large, established firms.
The primary objective is to provide capital and managerial support to boost the competitiveness of Japanese firms and create next-generation businesses in promising new technologies, which contribute to innovative transformation of Japan’s industrial structure.
]
Organisation and leadership
The INCJ is headquartered at Tokyo and has a flat management structure centered around CEO and COO
Its current CEO is Kimikazu Noumi[Bloomberg Business week executive profile , Kimikazu Noumi]
/ref> and COO, Haruyasu Asakura.[Bloomberg Business week executive profile , Haruyasu Asakura]
/ref>
Investments
Investors
The INCJ is capitalized at 112 billion yen. The Japanese government also provides guarantees up to a total of 1,800 billion yen for INCJ investments. This funding is used partly as a combination of venture capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to start-up company, startups, early-stage, and emerging companies that have been deemed to have high growth poten ...
and “ buyout fund” to provide risk arbitrage Risk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions. An investor that employs this strategy is known as an arbitrageur. Risk arbitrage is a type of even ...
to support a growth strategy of small and mid-size companies and to facilitate consolidation among established companies for the purpose of helping them become global leaders, as well as directly invest in new ventures.
The breakup of investors and their investments made are the following,
Japanese Government
The Japanese government provides 102 billion yen[ out of the total capital of 112 billion yen. The government also provides guarantees up to a total of 1,800 billion yen for INCJ investments, giving it an investment capability of approximately 1,900 billion yen (US$24 billion).
]
Corporate investors
The following 19 major Japanese companies have made a total investment of 10 billion JPY.[ Each investor has contributed 500 million yen, with the exception of DBJ, which has contributed 1 billion yen.
* Asahi Kasei Corporation
* Osaka Gas Co., Ltd.
* ]Sharp Corporation
is a Japanese multinational corporation that designs and manufactures electronic products, headquartered in Sakai-ku, Sakai, Osaka Prefecture. Since 2016 it has been majority owned by the Taiwan-based Foxconn Group. Sharp employs more than 5 ...
* The Shoko Chukin Bank, Ltd.
* Sumitomo Chemical Co., Ltd.
* Sumitomo Corporation
* Sumitomo Electric Industries, Ltd.
* Takeda Pharmaceutical Company Limited
* Tokyo Electric Power Company, Inc.
* Toshiba Corporation
, commonly known as Toshiba and stylized as TOSHIBA, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. Its diversified products and services include power, industrial and social infrastructure syste ...
* JGC Corporation
* Development Bank of Japan Inc.
* Panasonic Corporation
formerly between 1935 and 2008 and the first incarnation of between 2008 and 2022, is a major Japanese multinational conglomerate corporation, headquartered in Kadoma, Osaka. It was founded by Kōnosuke Matsushita in 1918 as a lightbulb s ...
* East Japan Railway Company
* Hitachi, Ltd.
() is a Japanese multinational conglomerate corporation headquartered in Chiyoda, Tokyo, Japan. It is the parent company of the Hitachi Group (''Hitachi Gurūpu'') and had formed part of the Nissan ''zaibatsu'' and later DKB Group and Fuyo ...
* Mizuho Corporate Bank, Ltd.
, or MHCB, was the corporate and investment banking subsidiary of Mizuho Financial Group, the second-biggest Japanese financial services conglomerate, prior to the reintegration of investment banking services under the Mizuho Bank name in July 20 ...
* MUFG Bank, Ltd.
General Electric Company,Japan
* JX Nippon Oil & Energy Corporation
See also
* Enterprise Turnaround Initiative Corporation of Japan
References
External links
Official web site
The Nature of Capitalism and Finance
(ICNJ COO Haruyasu Asakura and Globis University Graduate School of Management)
{{Electronics industry in Japan
Japanese companies established in 2009
Financial services companies established in 2009
Venture capital firms of Japan
Public–private partnership projects
Government-owned companies of Japan