Investing in Japan
Regional Information
Kyoto
Kyoto, Japan’s ancient capital living in the past and the future-the coexistence of artistic traditional industries and cutting-edge industries.
- Your Regional Guide
Inquiry form
Trade and Commerce Division, Department of Commerce, Labor and Tourism
Yabunouchi-cho, Nishiiru, Shinmachi, Shimotachiuri-dori, Kamikyo-ku, Kyoto-city Kyoto Prefecture 602-8570
TEL: +81-75-414-4840 FAX: +81-75-414-4870
- Basic Information
- Regional Profile
- Services for investment in Japan
- Available incentives
- Living environment for foreigners
- Links to Related Websites
Basic Information
| Population | 2.63 million (FY 2008) |
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| Labor force | 1.74 million (FY 2006) |
| Area | 4,613 km² (FY 2008) |
| GDP | 10,029 billion yen (FY 2005) |
| Major industries | Electrical equipment, transport equipment, precision equipment, textile and chemical industry |
| Developing industries | Information, environment, health and welfare, biotechnology-related industries |
| Offices overseas | Shanghai, China (operation outsourced to private sector) |
| Offices in Japan | Tokyo |
| JETRO office | JETRO Osaka |
Regional Profile
Strength of the region's industries and economy
Kyoto has been a thriving city for more than a millennium since 794, first as the capital and then as the focal point of Japanese culture. The prefecture is the birthplace of innumerable world-renowned traditional arts—Nishijin brocade and unique Kyoto styles of Yuzen silk dyeing, dappled cloth, embroidery, braiding, Buddhist altar decorations, urushi lacquer ware, cabinet making, pottery, masonry, dolls, scroll mounting, inlaying and swords to name but a few─that are passed from generation to generation. The spirit that fostered those exacting, intricate traditional arts is the force behind the rise of many advanced technologies today: Kyoto is home to Shimadzu, Nintendo, Kyocera, Omron, Horiba, Murata Manufacturing, Rohm, NEC and other world-leading companies. Moreover, Kyoto’s smaller businesses and the unique products and technologies they come up with are another of the prefecture’s attractive features. Indeed, one of the stand-out characteristics of Kyoto’s industry is that global high-tech IT-related companies sit side-by-side with SMEs with advanced manufacturing technologies as well as traditional industries. The prefecture is working hard to develop the region into a major IT cluster by attracting new IT companies to the area and fostering new venture businesses.
Strength of the region's education/research institutes
Kyoto Prefecture has 28 universities, including Kyoto University, Ritsumeikan University and Doshisha University, as well as eighteen two-year colleges. In fact, with more university students per 100,000 people than anywhere else in the country, Kyoto has become known as a student’s town. Around 5,000 of those students graduate every year from science and engineering courses, meaning that Kyoto is a potent source of human resources. The prefecture also has numerous research facilities: In Kyoto City there is Kyoto Research Park, a facility for nurturing creative venture businesses, and Katsura Innovation Park, a government-academia-industry partnership aimed at promoting new industries; while the southern part of Kyoto Prefecture is fast becoming a center for culture, academia and research with Kansai Science City, a comprehensive complex that features information, nanotech, IT, biotech and other cutting-edge technology clusters and forums for the promotion of interaction in research.
Industry-government-academia collaboration
<Kyoto Industry-Academia-Government Cooperative Organization>
This is a government-industry-academia partnership platform solely set by Kyoto. The organization was established together with Kyoto’s universities, research institutions, economic organizations, industrial support groups and local governments in 2003. Among its many activities, the organization holds forums to promote partnerships, maintains an information database and disseminates information.
<Kyoto Nanotech Cluster>
Kyoto has determined that nanotechnology, the art of ultra-microfabrication, is the fundamental technology for next-generation. With local universities as the spearhead, Kyoto is driving to create new businesses in areas such as electronic device development, medical and biotechnology, textiles, mechatronics and IT, under the tangible partnership among local clusters of companies looking to achieve technical innovation and the fully-equipped industrial support institutions. Specifically, the Kyoto University Katsura Campus and Katsura Innovation Park are promoting robust joint university-industry research activity, being the nucleus of the cluster movement.
<Human L-cube Industry Creation Project (Kansai Science City region)>
This project involves research into technology that supports a “richer lifestyle”; technology we call Human L-cube, and promotes researches focusing on "three Ls (life science, living technology, learning)". The areas of focus are living technologies led by life science centering on plant biotechnology, next-generation home appliances and welfare, as well as the next-generation e-learning.
Strength of the region's infrastructure
The southern part of Kyoto is geographically close to Osaka and Kobe. Indeed, these make up what is known as the Keihanshin region, a single area closely linked by rail and road. Railways are particularly prevalent in this area, with multiple lines run by JR and numerous privately owned operators and packed timetables. This provides excellent access to all parts of the region.
<Land>
By the Meishin and Hanshin Expressways and Keiji Bypass, Kyoto City is within the reach of around 40 minutes from Osaka City, an hour from Kobe City and 90 minutes from Nagoya City.
<Air>
Kyoto has an air network covering 71 cities in 31 countries, as well as 14 cities in Japan. Indeed, Kansai International Airport, a major international freight hub, is just around 75 minutes away from Kyoto City by JR’s express train Haruka . Similarly, it takes approximately 90 minutes from Chubu International airport to Kyoto City by Tokaido Shinkansen and Meitetsu Railway’s Tokoname Line.
<Sea>
Kyoto’s Maizuru Port is rapidly being equipped to become a major center for the transit of people, goods and information in the area surrounding Sea of Japan. Already, it serves as the gateway to the Kansai economic area from the side of Sea of Japan. Japan’s fastest ferry plows the route between Maizuru and Otaru, Hokkaido (one trip daily), serving as an important route connecting all the way from Hokkaido to Kansai both as passenger and freight vessels. Maizuru Port is also an international trade port with regular sailings to and from Dalian and Qingdao in China and Vostochny, Nakhodka and Vanino in Russia. Kyoto's Maizuru Port is within a reach of a ninety-minute drive from the central of Kyoto City.
<Railway>
Kyoto Station is a core stop on the Tokaido Shinkansen, just around 140 minutes from Tokyo and 40 minutes from Nagoya. From Osaka, Kyoto Station is within a mere half hour by the JR Tokaido Line, or 14 minutes by Shinkansen.
Foreign company(s) operating in the industry
Kyoto Prefecture hosts more than ten foreign-affiliated companies. In recent years, the technological capabilities of Kyoto businesses combined with the R&D capacity of the prefecture’s universities and research institutions have seen Kyoto become the focus of considerable attention from foreign-affiliated companies promoting R&D. Kyoto is also a high-potential area to invest for companies focusing on sales with an eye on the huge Kansai market.
| Company name | Telecognix Corporation |
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| Industry sector | Telecommunication |
| Date of entry | March 2007 |
| Motivation for selecting region | Kyoto’s long history, wealth of expertise, philosophy and taste in design seemed to be an advantage when it came to creating an interface between people and machines, and that is why we chose Kyoto. |
| Support provided by local government or JETRO |
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| Comments |
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Services for investment in Japan
| Menu of services | Fees charged? | Content of services |
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| Providing market information | ||
| Advice on market participation | No | JETRO Kyoto Information Desk provides all necessary advice. |
| Consulting by external experts and advisers | No | JETRO Kyoto Information Desk provides all necessary advice. |
| Support for establishing a base | ||
| Listing of potential customers and partners | No | Together with economic and industrial bodies, provides a list of prospective clients. |
| Listing of potential customers and partners | No | Cooperates in obtaining appointments with client candidates through collaboration with economic organizations, industry organizations, and similar groups. |
| Support for establishing a base | ||
| Providing incubation facilities or other facilities | Yes | Information about incubation facilities in Kyoto Prefecture is provided free of charge (tenancy is charged) . |
| Providing information on procedures for investing in Japan | No | Together with JETRO and the national government, information about all necessary procedures is provided. |
| Arranging the meetings needed to establish a base (real estate, manpower services) | No | Together with economic and industrial bodies, support for meeting arrangements is provided. |
| Introduction of available properties and advice on hiring personnel | No | Information about business complexes and R&D facilities in Kyoto Prefecture is provided. |
| Providing information on permits and licensing procedures | No | Information about procedures for obtaining accreditation and permits is provided. |
| Providing information on subsidy programs | No | Information about grants available from the Kyoto prefectural and municipal governments is provided. |
Support service
Kyoto invests significant effort into attracting businesses from overseas, establishing new research facilities and building relationships with foreign entrepreneurs and researchers. In response to the wide-ranging support systems put in place by the national government and the Kyoto prefectural and municipal governments, the Kyoto Foreign Investment Promotion Committee (KIC) was established in April 2003. The KIC serves as an one-stop service institution for foreign businesses to learn and do everything necessary to set up a business in Kyoto, and is working to establish a support regime to further promote investment in Kyoto by foreign companies.
<Kyoto Foreign Investment Promotion Committee (KIC)>
Operators: Kyoto Prefectural and Municipal Governments, Kyoto Chamber of Commerce and Industry, Kansai Research Institute, Kyoto Research Park(JETRO Kyoto Information Desk, Kyoto Industrial Support Organization 21)
Available incentives
A whole menu of location support is available, including a maximum two billion yen local grant, low-interest loans and regional tax relief.
「Efforts to attract companies in growth industries」
（By laws pertaining to the location and development of companies aimed at creating jobs)
<50% reduction of real estate acquisition tax in manufacturing-industry cluster promotion zones>
<Industry location strategy 21 special project grant>
- Kyoto City high-level cluster zones
Open to: Plants, head offices and research facilities of manufacturers and companies in “cutting-edge” industries (e.g., IT, genome-related and nanotech-related industries)Maximum amount: 400 million yen
- Kyoto City surrounds, academic/science parks
Open to: Plants, head offices and research facilities of manufacturers and companies in “cutting-edge” industries (e.g., IT, genome-related and nanotech-related industries)Maximum amount: 800 million yen
- Mid-north, Kizu River right bank
Open to: Manufacturers’ plants and research facilities, information service industry, etc. Maximum amount: 2 billion yen *Some criteria apply with regards to business scale and selection.
<Business location promotion loans for the creation of jobs>
- Loans available at low interest, 1%, for new office set-up or existing office expansion that result in job creation Maximum amount: 2 billion yen
Living environment for foreigners
| Living environment | With the Sea of Japan on its northern coast, lush forest in the middle and a unique balance of tradition and modernism in the south, each part of Kyoto is filled with a variety of attractive features. For more than a thousand years, Kyoto thrived as Japan’s capital. Indeed, it is the city living in the past and the future, and a veritable treasure trove of historical and cultural artifacts. As well as being a city of learning, Kyoto is also known for being an international city having foreign students and many other foreign nationals as its residents─thus making Kyoto a very attractive place to live. |
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| International schools |
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| Health services catering to foreigners |
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| Other | The Kyoto Prefectural International Center and the Kyoto City International Foundation are open to all foreigners, and provide a range of services to Kyoto’s foreign residents. In addition to these officially run organizations, there are also many international interaction groups operated by the citizens of Kyoto Prefecture and City, thus making Kyoto a hub for international communication activity. |
Links to Related Websites
