Number of University-Developed Venture Businesses Marks Record-High Growth

University-developed venture businesses (VBs) are expected to become leading players in providing innovations to the economy and society thanks to the innovative research being undertaken at universities and other institutions. The number of university-developed VBs related to Japanese universities and colleges of technology has grown to 3,782 (as of the end of October 2022), up by 477 from 3,305 in FY2021, according to the data uncovered in the FY2022 Survey on University-Developed Venture Businesses conducted by the Ministry of Economy, Trade and Industry (METI), showing a record-high for both the number of VBs and the number they had increased by.

What are university-developed VBs?

In the METI survey, university-developed VBs are defined as such enterprises as are newly established with the aim of commercializing patents, new technologies and business methods based on research results achieved at universities.

University-developed VBs also include those that have conducted joint research with a university (including a college of technology) within five years of their establishment, those that have undergone technology transfer from a university within five years of their establishment, student VBs that have a deep relationship with a university and in which current students are or were involved, and those that have a deep relationship with a university (e.g., those funded by a university).

What kinds of industries are such VBs engaged in?

According to the survey results, university-developed VBs engaged in “IT (applications and software),” except those engaged in “Other services,” were found to be the largest in number, followed by those engaged in “biotechnology, healthcare and medical equipment .” The number of such VBs engaged in “IT (applications and software)” exceeded the number of those engaged in “biotechnology, healthcare, and medical equipment,” which was the category under which the largest number of such VBs had fallen in past surveys.

Many universities are focusing on establishing VBs

Regarding the number of university-developed VBs by university, the University of Tokyo has the most university-developed VBs following on from the FY2021 survey, followed by other universities such as Kyoto University, Keio University, and the University of Tsukuba. Keio University increased the previous year’s figure by 61 VBs giving it the third place ranking in FY2022, moving up from fifth place in FY2021. Regarding the greatest increases in the number of the VBs, Professional University of Information and Management for Innovation, Akita University, Kindai University, and Kochi University increased the ratio by over 150% from the previous year. This result suggests that many universities are focusing on establishing VBs.

VBs as leading players in providing innovation

The sustainable development of the Japanese economy requires the ceaseless creation of innovation. University-developed VBs are expected to be “leading players in providing innovation” as they implement in society the results of research achieved at universities and aim to create new markets. In this context, in order to promote the further establishment and growth of university-developed VBs, METI has been advancing certain initiatives, including the Management Personnel Matching (MPM) program, focusing on securing human resources that can provide management expertise to these businesses, which is one of the challenges in the establishment and growth of university-developed VBs.

Industry-University Collaboration Office, METI