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Startup Creation and University Collaboration: Evaluating Japan’s Support Programs
Friday, November 14, 1:45 to 3:15pm, Property: Grand Hyatt Seattle, Floor: 1st Floor/Lobby Level, Room: EA AmphitheaterAbstract
This study evaluates the policy effectiveness of Japan’s university-based startup support programs—EDGE (FY2014–FY2016), EDGE-NEXT (FY2017–FY2021), and START (from FY2020 onward), implemented by the Ministry of Education, Culture, Sports, Science and Technology (MEXT). It particularly focuses on the impact of consortium-based programs that involve a wide range of universities, including non-top or local institutions. The analysis adopts a two-step approach: (1) examining the adoption of support mechanisms—such as entrepreneurship education, acceleration programs, and venture capital collaboration—as intermediate outcomes, and (2) assessing the annual number of university spin-off startups as the final policy outcome.
With Japan’s startup entry rate at only 4%, fostering entrepreneurship has become a national priority. Prior research has shown that university involvement in entrepreneurship programs plays a vital role in developing startup ecosystems across diverse country contexts. MEXT has expanded its support programs, and since FY2022, the national government has advanced the Startup Development Five-Year Plan as a comprehensive strategy to build a robust startup ecosystem.
Drawing on a panel dataset of approximately 1,050 universities and higher education institutions from FY2014 to FY2023, this study employs difference-in-differences (DiD) and fixed effects models to assess policy impacts. It compares outcomes between program participants and non-participants, while controlling for institutional characteristics such as student enrollment, research budgets, and patent output, to estimate the additional effects of program participation.
This research underscores both the effectiveness and limitations of university consortia in promoting spin-off startups. It offers practical insights for policymakers and university leaders and aligns closely with the conference theme by providing empirical evidence on how inter-university collaboration can foster transformative and resilient policy solutions.