Fostering a new generation of entrepreneurs in Hokkaido to drive positive global change

This article was published in the Spring 2023 issue of Litterae Populi. The full issue can be found here.

The Hokkaido Transformation Cross Space (HX) is a hub of support for R&D-oriented startups in Hokkaido. It helps researchers and students start businesses through widely differing programs, including an entrepreneurship development program, a human resources matching program, and networking events for experts, researchers, and representatives from companies.

Staff members of HX (from the left): managers Shinta Yanagihara, Yosuke Takita, and Haruka Chiwaki.

The brain drain from Hokkaido has also cast a cloud over sustainable development of industries. Particularly noticeable is the outflow of talented young people, as many Hokkaido University graduates find jobs outside Hokkaido.

To help transform Hokkaido from a region with advanced challenges to an affluent, livable region, the Hokkaido Startup Future Creation Development by Mutual Support Network, or HSFC (pronounced eichi force, which means the power of wisdom.) for short, was established in 2021 Yosuke Takita, a manager at HX, comments, “HSFC is an academia-centered industry-government-banking collaboration platform that includes 15 Hokkaido-based universities and technical colleges centered around Hokkaido University, Sapporo City and other local governments, and financial institutions. Here, universities and collaborating institutions join hands to create R&D-oriented startups.” The goal goes beyond simply creating a large number of startups and helping them achieve economic prosperity; HSFC endeavors to build a startup support system as a framework for solving the challenges facing Hokkaido.

In October 2021, Hokkaido Transformation Cross Space (HX) was launched to bolster this network of universities and collaborating institutions and implement initiatives to accelerate business creation.

The exterior of HX, located on the Northern Campus (Kita 21, Nishi 11).

Entrepreneurial consultation services to catalyze the formation of new industries

The name “HX” is derived from the concept of transforming the conventional industrial structure by multiplying (X) the wisdom (H) of Hokkaido. The word “wisdom” is “eichi” (叡智) in Japanese, a homophone for the alphabet H. HX has four major initiatives: support of entrepreneurial activities, entrepreneurship development, the development of an entrepreneurial environment, and the formation of entrepreneurial ecosystems.

Manager Takita explains, “In our support of entrepreneurial activities, we work closely with researchers (faculty members) and students who wish to start their own business. Entrepreneurship development is aimed at students with the main goal of fostering an entrepreneurial mindset and teaching them how to start a business. The development of an entrepreneurial environment is exactly what HX is about. As we see HX as a pre-incubation facility for the next step, we encourage anyone wishing to start a business to freely contact us. The formation of entrepreneurial ecosystems means building a solid structure for startups by strengthening not only intra-university networks, but also networks with industry, government, and financial institutions.”

The first in line to accelerate job creation

HX serves as a hub of networks as its members include not only staff affiliated with Hokkaido University, but also faculty members of Otaru University of Commerce and other outside advisors.

“Examples of matters that faculty members often seek advice on include things to consider when building a startup, such as patents and trademarks, as well as post-launch fundraising issues. We actually offer fundraising coordination services,” comments Haruka Chiwaki, a manager at HX.

Advice seekers include students who have only a vague idea about starting a business. “To students thinking about launching a business rather than finding a job, I explain the business sector and the process of establishing a company based on my own experience,” says Shinta Yanagihara, another manager.

At a press conference held when HX was launched in October 2021, Kiyohiro Houkin, President of Hokkaido University, and Makoto Anazawa, President of Otaru University of Commerce, joined forces to create startups.

HX was launched during the COVID-19 pandemic. After more than a year, the number of face-to-face consultations is gradually increasing, as is the number of events.

“We want to engage students not only in science, but also in the humanities. To raise awareness of entrepreneurship, we held social business events in 2022. For the events, we partnered with the managers of four incubation centers in Sapporo, including EZOHUB at a Satudora (short for Sapporo Drug Store, a drug store chain headquartered in Sapporo) outlet, and took turns hosting events on social business once a week. Those events attracted a total of about 100 people and were supported by the City of Sapporo, the Hokkaido Government, and the Sapporo Electronics and Industries Cultivation Foundation,” remarks Manager Takita.

Manager Chiwaki adds that they have also started holding events to match researchers with business owners. When starting a business, researchers often face the problem of having no one to serve as a manager. This has led to the organization of such matching events in partnership with K-NIC (the Kawasaki-NEDO Innovation Center, a one-stop support center for entrepreneurs operated by the tripartite collaboration of the New Energy and Industrial Technology Development Organization (NEDO), the City of Kawasaki, and the Kawasaki Institute of Industrial Promotion). HX has received many consultation requests from business owners interested in research seeds at Hokkaido University.

“The work here is more rewarding than challenging,” says Manager Chiwaki. “Faculty members who come to us for advice have one thing in common: their strong desire to use their expertise to bring positive change in the world. I’ve seen the power of people and networking every day as I’ve realized how working together opens new horizons.”

In the long history of the University, some research projects have developed alongside Hokkaido’s industries. With practical learning upheld as one of the University’s fundamental philosophies, HX is committed to tackling the challenges facing Hokkaido and creating new sustainable industries.

This article was published in the Spring 2023 issue of Litterae Populi. The full issue can be found here.