Investing in Japan

Regional Information

Osaka

Choose Osaka! An international city of industry packed with benefits for your business

Your Regional Guide: Shigemichi Mori

Osaka Pref. Concierge

Investment Promotion Division
Tanimachi Bld.8F, 1-2-12 Otedori, Chuo-ku, Osaka-city, Osaka Prefecture 540-0021
TEL: +81-6-6944-8160 FAX: +81-6-6944-6721

Basic Information
Regional Profile
Services for investment in Japan
Available incentives
Living environment for foreigners
Links to Related Websites

Basic Information

Population	8.82 million (Male: 4.27 million, Female: 4.55 million) (April 2008)
Labor force	4.39 million (Male: 2.60 million, Female: 1.79 million) (2007)
Area	1,898km² (2007)
GDP	38,992 billion yen (2006)
Major industries	Metal, textile and plastic products, electrical devices and machinery
Developing industries	Biotech, intelligent household appliances, environment, contents and robotics-related
Offices overseas	Rotterdam, Kingdom of the Netherlands/Singapore/Shanghai, China/Sidney, Australia/San Francisco, USA
Offices in Japan	Tokyo
JETRO office	JETRO Osaka Nakanoshima Mitsui Bldg. 5F, 3-3-3, Nakanoshima, Kita-ku, Osaka-city, Osaka Prefecture 530-0005 TEL: +81-6-6447-2309 (IBSC Osaka) FAX: +81-6-6447-2336 E-mail: ibscosaka@jetro.go.jp

Regional Profile

Strength of the region's industries and economy

Osaka Bioscience Institute Foundation With a population of more than 8.8 million, Osaka Prefecture represents a large market. The prefecture’s GDP is approximately 40 trillion yen—around 8% of Japan’s overall GDP, and similar in size to Sweden. It also accounts for more than 10% of Japan’s exports and imports in terms of trade value, meaning Osaka has high economic potential.

Strength of the region's education/research institutes

Osaka is working to restructure its high schools to ensure greater specialization and emphasis on schools’ unique characteristics. The prefecture also has a wide range of academic institutions, including urban universities and institutes actively involved in R&D through industry-academic-government partnerships. Osaka has 56 universities, 36 two-year colleges and 285 high schools (as of May 1, 2007)

Industry-government-academia collaboration

Saito (International Culture Park) in northern Osaka is the center of a cluster of research and education institutions including Osaka University, known for its world-class biomedical research, the National Cardiovascular Center and the Osaka Bioscience Institute. The cluster is home to numerous industry-academy-government partnerships, and is rated Japan’s best biotech cluster. There is also a cluster of pharmaceutical manufacturers, including Japan’s top drug maker, Takeda Pharmaceutical, in Osaka City’s Dosho-machi. The prefecture is also home to numerous companies that underpin the country’s global competitiveness such as Panasonic Corporation, Sharp and Sanyo Electric, not to mention clusters of companies with information technologies, nanotech and other advanced technologies that can be put to use in state-of-the-art industries like satellites and robotics. With such a formidable intellectual infrastructure and industrial clusters in such convenient proximity, Osaka Prefecture offers overseas companies countless business opportunities. The prefecture is also pursuing its Hi-tech Bay Plan, which so far has seen Sharp begin work on its world-class LCD panel plant in Sakai City on the Osaka Bay coast in 2007. Moreover, US glass substrate giant Corning and its related companies are forming a cluster in the area. With investment totaling around a trillion yen, the Osaka Bay coast is transforming into an industrial complex for the next generation.

Strength of the region's infrastructure

Kansai International Airport is Japan’s first 24-hour offshore airport. It is an important international logistics hub, just as Osaka International Airport in Itami City is a major part of the domestic logistics network. The area surrounding the Osaka and Sakai Semboku ports form a major international harbor with an extensive range of logistics facilities.

<Air>

The one-hour route from Haneda (Tokyo) to Osaka International Airport (Itami City) is served by 29 flights a day (approximately one every half hour)
Kansai International Airport runs 24 hours a day, and has regular flights to Europe and America. The airport currently serves 75 cities in 31 countries and regions around the world, as well as 18 cities in Japan, thus making it a true travel hub for smooth access to any destination.

<Railway>

Osaka is the focal point of the Kansai region; major cities such as Kobe and Kyoto are only 20-30 minutes away by train. It is also possible to make an one day trip to Tokyo and other major cities of Japan from Osaka.

Foreign company(s) operating in the industry

Recent examples of companies setting up factories in Osaka Prefecture include Corning Japan (US), Item Japan (Germany) and Salvagnini Japan (Italy). Information on foreign companies investing in Osaka is available at the Osaka Business and Investment Center (O-BIC) website in the case studies section.

Company name	Corning Japan K.K.
Industry sector	Special glass and ceramics manufacturing
Date of entry	December 2007
Motivation for selecting region	Sharp, a client of ours, is located in the area; and grants.
Support provided by local government or JETRO	Osaka Prefecture’s grant for advanced industries

Company name	ITEM Industrietechnik GmbH
Industry sector	Precision aluminum structural materials
Date of entry	March 2008
Motivation for selecting region	Geographical reasons: Osaka is in the center of the industrial belt between Keihin and Kitakyushu. Lower costs compared to Tokyo, meaning better cost efficiency. Many of our clients are in Kansai. Osaka is active in attracting foreign companies to the area, and it offers grants.
Support provided by local government or JETRO	Help finding factory real estate Grants Rent-free offices

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Advice on market participation	No	The Osaka Prefectural and Municipal Governments as well as the Osaka Chamber of Commerce and Industry have jointly set up the Osaka Business and Investment Center (O-BIC; located inside the chamber of commerce building) as a one-stop center where overseas companies considering investing in Osaka can receive a range of services for free.
Consulting by external experts and advisers	Yes	See above. First consultation free
Arranging appointments with potential customers and partners	Yes	See above. Outsourced by O-BIC to third-party experts.
Support for establishing a base
Monitoring surveys (evaluation of products and services)	Yes	See above.
Listing of potential customers and partners	No	See above.
Listing of potential customers and partners	No	See above.
Support for establishing a base
Providing incubation facilities or other facilities	Yes	See above. O-BIC introduces prefectural and municipal incubation facilities to clients.
Providing incubation facilities or other facilities	No	See above.
Providing information on procedures for investing in Japan	No	See above.
Arranging the meetings needed to establish a base (real estate, manpower services)	No	See above.
Introduction of available properties and advice on hiring personnel	No	See above.
Providing information on permits and licensing procedures	No	See above.
Providing information on subsidy programs	No	See above.

Support service

Being established jointly by the Osaka Prefectural and Municipal Governments, as well as the Osaka Chamber of Commerce and Industry, the Osaka Business and Investment Center (O-BIC) is a one-stop, comprehensive source for overseas companies looking for information about markets, potential business partners, incentives, offices and local living. The center also provides free and thorough support for the challenges that tend to make foreign business hesitate to invest in Japan, such as immigration issues, incorporation procedures, hiring staff and taxation.
Osaka Business and Investment Center (O-BIC)
Operators: Osaka Prefectural and Municipal Governments, Osaka Chamber of Commerce and Industry (which also acts as the O-BIC secreatariat)

Available incentives

Hi-tech businesses investing, for example in the Osaka Bay area are eligible for grants of up to Yen15 billion.

· O-BIC’s Incentive Program for Foreign Affiliated Companies: Fifty (50)% of the applicable expenses. Maximum amount is Yen 500,000 per applicant.

The Osaka Business and Investment Center (O-BIC) serves as a one-stop center for various services needed when investing in Osaka.

Subsidy for cutting-edge Industry: Subsidizing companies that will have a new factory or R&D facility for cutting-edge enterprise approved in the field of Bio-life science, Robot, Home Information Appliance or New Energy. Maximum amount is Yen15 billion for one applicable area.
Subsidy for Investment Promotion　（Integrated the subsidies for Hi-Tech Industry and for SMEs）: Subsidizing companies that newly build, expand or reconstruct a plant or R&D facility.

<Tax relief>
The Tax System for Promotion of Industrial Clusters (reduction of real estate acquisition tax)
Real estate acquisition tax is halved for those who purchase land or buildings in designated industrial cluster promotion zones.

<Loans>
Preferential Loans for Industrial Location Promotion
Low-interest loans extended to those who set up a business in industrial areas in Osaka Prefecture.

<Other assistance>
Rent Reduction
Rent relief for cutting-edge industry companies setting up a business in the area.

Osaka business and Investment Center

Living environment for foreigners

International schools	Senri International School is just one of a number of international schools in Osaka Prefecture that accept foreign children.
Health services catering to foreigners	Osaka Prefecture has many medical institutions where English is spoken, as well as those accommodating speakers of German, Chinese and other languages. Osaka Medical facilities Information System
Other	There are over 1,000 foreign researchers at Osaka University, and the surrounding area has the residential environment and all the services needed to make life comfortable for foreign residents.

International schools

Senri International School is just one of a number of international schools in Osaka Prefecture that accept foreign children.

Health services catering to foreigners

Osaka Prefecture has many medical institutions where English is spoken, as well as those accommodating speakers of German, Chinese and other languages.

Osaka Medical facilities Information System

Other

There are over 1,000 foreign researchers at Osaka University, and the surrounding area has the residential environment and all the services needed to make life comfortable for foreign residents.