From Labs to Industry: The "Valley of Death" Facing Japan's Deep Tech
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Turning the advanced technologies developed by Japanese researchers and engineers into companies and products has become a major challenge. Such technologies are called "deep tech" and include fields such as AI, semiconductors, and new materials. Even when research results are highly promising, a shortage of funding and talent during the commercialization stage can prevent them from reaching practical use. This period is known as the "valley of death," and it is a cause of many research projects stalling midway.
The business media outlet Forbes JAPAN reports on a panel discussion attended by investors from top-tier venture capital (VC) firms. There, the new "wall" that Japan's deep tech now faces was taken up. Participants reportedly discussed the determination with which researchers who create the technologies, investors who provide funding, and the government each should approach this challenge. It is considered necessary for those involved to cooperate in order to turn the seemingly dreamlike technologies born in laboratories into industries that are useful to society.
In Japan, efforts to increase the number of university-originated startups and to bring research results to society are ongoing. On the other hand, because these ventures require long periods and large amounts of capital, investors tend to be cautious. For researchers, acquiring business experience and management knowledge is also not easy. To improve this situation, the provision of funding, the development of human resources, and the improvement of institutional frameworks are being called for.
Attention is now focused on how Japan's deep tech will cross the valley of death. Whether researchers, investors, and the government can collaborate while each fulfilling their own role is seen as likely to determine the future of Japan's technology.
Sources: Forbes JAPAN
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