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Good practice Imported

Fukuoka City Startup Special Zone — Japan's First Global Startup Deregulation Zone

Japan · Fukuoka · See the Japan profile · See the Fukuoka profile

Evidence: Observational / pre–post Top 10% 86/100 · Ask Evidence Copilot about this practice

Japan's first startup deregulation zone (2014) and first city to introduce a Startup Visa (2015). Public incubator FGN helped 98 companies raise ¥42.2B by 2024; 1,406 startups registered; 82% five-year survival rate; 7.3% founding rate — outpacing Tokyo and Osaka.

23 measures
Deregulation measures enacted (to July 2024)
68 businesses
Certified businesses operating under zone exemptions (July 2024)
98 companies
Companies supported by Fukuoka Growth Next (FGN) (to March 2024)
42.2 JPY billion
Cumulative funds raised by FGN-supported companies (to March 2024)
82 %
Five-year survival rate of municipal incubator graduates (n/a)
1,406 startups
Registered startups in the city (2024)
7.3 %
Startup founding rate (2024)
31.4 %
City tax revenue growth (2014-2024)
Fukuoka City Startup Special Zone — Japan's First Global Startup Deregulation Zone

Details

Maturity
Established
Promoter
Fukuoka City Government
Period
2014–present
Keywords
startups, entrepreneurship, deregulation, special zone, talent attraction

Context

In May 2014, Fukuoka became one of Japan's inaugural National Strategic Special Zones -- and the only one designated specifically for global startup creation and job growth -- granting the city authority to implement regulatory reforms ahead of national adoption.

Objectives

Use special-zone deregulation authority and dedicated visa/incubation instruments to attract and grow startups, particularly foreign entrepreneurs.

Activities

As of July 2024, the city has enacted 23 deregulation measures (third-highest nationally), with 68 certified businesses operating under zone exemptions. Its Startup Visa, launched December 2015 (the first of its kind in Japan), enables foreign entrepreneurs to obtain a six-month Business Manager visa without the usual capital/employee prerequisites, with rent subsidies and free English-language legal advice; since June 2020, certified co-working spaces can be used for visa renewal. Fukuoka Growth Next (FGN), the principal public-private incubation facility, had supported 98 companies by March 2024.

Results

FGN-supported companies raised a cumulative JPY 42.2 billion (~US$290 million) by March 2024. Graduates of municipal incubators achieve an 82% five-year survival rate, well above Japan's national average of ~50%. As of 2024 the city hosts 1,406 registered startups; its founding rate of 7.3% outpaces Tokyo (6.1%) and Osaka (4.8%). City tax revenue grew 31.4% between 2014 and 2024 to JPY 370.6 billion; commercial land prices rose 99.3%.

Conclusions

Governance is multi-stakeholder, with Fukuoka City Government leading alongside Bank of Fukuoka, Kyushu Electric Power, Nulab Inc., Kyushu University and national government (METI and Cabinet Office); the ecosystem has produced zero unicorns and only three Series C+ rounds since 2020, reflecting a ceiling on late-stage capital.

Implementation
Indicative cost
Medium (€50k–€500k) — Combines regulatory deregulation (no major capex) with incubator funding and visa/legal support services; no total public budget figure found in source.
Time to results
Long (> 3 years) — Special Zone designated May 2014; Startup Visa launched December 2015; 10+ years of continuous operation and expansion to 2024.
Staffing & skills
Fukuoka City Government, Bank of Fukuoka, Kyushu Electric Power, Nulab Inc., Kyushu University, national government (METI, Cabinet Office)

Conditions for success

  • National Strategic Special Zone regulatory authority granted by national government
  • Dedicated startup visa removing standard capital/employee prerequisites
  • Six-actor public-private-academic governance structure

Common failure modes

  • Zero unicorns and only three Series C+ rounds since 2020 indicate a structural ceiling on late-stage capital availability

Where it fits

Governance type
city government operating under a national special-zone deregulation designation
Scale
city-wide (Fukuoka)
Income level
high-income country (Japan)

Commonly funded by

National / regional programmes

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Data sources

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