This week, the innovation and business conference Japan Innovation Day 2025 was held in Tallinn to strengthen cooperation between Estonia and Japan in the rapidly developing field of deep tech. The event brought together Estonian and Japanese tech companies (Mitsubishi, Dentsu Soken, Toyota and Hitachi), government institutions, and key figures in business diplomacy to discuss the development of next-generation technologies—such as artificial intelligence, green innovation, and robotics.
Opening remarks were delivered by Priit Kallakas, Director General of the Business Diplomacy Department at the Estonian Ministry of Foreign Affairs. Estonia has identified 20 priority countries for its foreign trade efforts—and Japan is among them, emphasised Priit Kallakas in his opening speech.
“Estonia is still too focused on nearby markets. If something happens close to us, we are immediately affected. That’s why it is crucial to diversify our export destinations. This is the responsibility of both the Ministry of Foreign Affairs and Enterprise Estonia,” said Kallakas. “Real business happens between people and companies—governments can only help bring the right partners together,” he added.
Follow-up meetings between Japan and Estonia have begun
According to Ambassador of Japan to Estonia Koichiro Nakamura, the conference offers a valuable opportunity for business networking and meetings between Estonian and Japanese companies, but it is not enough.
“The reality is that the global economic centre is shifting increasingly toward the Asia-Pacific region. And frankly, nothing will happen if you just sit and wait here in Estonia. In Japan, international trade fairs are held almost every month. We hope that Estonian companies will actively participate in business delegations organised by the EU and Enterprise Estonia, attend business events in Japan, meet our people, visit our country, and build stronger relationships with Japanese companies,” he told Estonian entrepreneurs. “Please visit Japan,” he added.
“These (decarbonisation, demographic shifts, defence, and digitalisation) are exactly the fields where Japan is actively seeking cooperation with European, including Estonian, companies—especially in green tech and defence.”
James Francis, Head of Business Development (EMEA & Japan) at Intralink
According to Marek Roostar, Head of the Asia Region at Enterprise Estonia, the event’s real significance lies on the business side. “The conference was attended by a buyer delegation from Japan, including companies such as Mitsubishi, Dentsu Soken, Toyota and Hitachi. Estonian tech companies were also strongly represented and delivered their presentations. We already know that several follow-up meetings between Japanese and Estonian companies have been initiated,” Roostar noted.
Physical presence in Japan is needed
James Francis, Head of Business Development (EMEA & Japan) at the international consultancy Intralink, which specialises in Asian markets, highlighted that Japan currently faces four major challenges: decarbonisation, demographic shifts, defence, and digitalisation. “These are exactly the fields where Japan is actively seeking cooperation with European, including Estonian, companies—especially in green tech and defence,” said Francis.
He also offered concrete advice to Estonian companies looking to enter the Japanese market. “You cannot approach the Japanese market half-heartedly—it is a detail-oriented and unique environment where only those who are fully committed will succeed. Too often companies make critical mistakes early on: they fail to do their research, talk to the wrong people, deliver a non-functioning demo, or miss deadlines. These things are not forgotten. And remember—news about your hot Estonian startup often won’t reach Japan. You have to go there yourself and build trust through presence.”
This was echoed by Nina Lubbe, Trade and Investment Advisor at JETRO Warsaw, the Japan External Trade Organization. “Currently, Japan is actively looking for cooperation particularly in the fields of healthcare technology, AI, mobility, agritech, and smart cities. If a European company wants to enter the Japanese market, the first and most important step is finding a trustworthy local partner—and that is not easy. To make anything happen, the company must have a physical presence in Japan,” Lubbe explained.
Opportunities for cooperation
Insights into entering the Japanese market were shared by Raul Allikivi, a long-time Estonian entrepreneur operating in Japan, and Chie Ito, Executive Officer at Dentsu Soken, who presented opportunities for cooperation. “When entering Japan, I recommend starting with Estonia’s strong reputation as an IT and startup country—Japanese companies recognise that and it gives you an advantage,” said Allikivi.
“To succeed in Japan, you need to follow three key principles: first, your product or service must be of the highest quality; second, you must build mutual trust—kizuna; and third, you need a clear, long-term vision. Also, be aware that Japanese people rarely say ‘no’ outright, so finding partners who will speak to you honestly is vital.”
Chie Ito, Executive Officer at Dentsu Soken
“Secondly, don’t be afraid to stand out—being different might be your strength. Thirdly, don’t choose a partner based solely on size. Smaller companies are often more motivated to co-develop something new with you. Also, avoid the ‘proof of concept’ trap—innovation projects and real business don’t always align. And never underestimate cultural differences: polite agreement does not always mean real approval, so it’s crucial to double-check and seek clarity,” he advised. “And finally—success in Japan is not a sprint, it’s a marathon. You need to go there, build relationships, and keep returning.”
Chie Ito from Dentsu Soken added: “To succeed in Japan, you need to follow three key principles: first, your product or service must be of the highest quality; second, you must build mutual trust—kizuna; and third, you need a clear, long-term vision. Also, be aware that Japanese people rarely say ‘no’ outright, so finding partners who will speak to you honestly is vital. Lastly, participate in visible and functioning communities—this is where trust and opportunity are created.”
Estonian businesses are seeking partners in Japan
The conference also featured strong practical focus and company presentations. Estonian startups—Auve Tech, Artec Design, UP Catalyst, 5.0Robotics, Cleveron, Stargate Hydrogen, Insevo, MindChip, and ÄIO —presented their solutions and explored potential cooperation with Japanese partners. For the first time, a Japanese company, Toppan Digital Inc., also took the stage as a presenter.
„Japan Innovation Day 2025 reaffirmed the strong international potential of Estonia’s deep tech ecosystem and highlighted Japan as a strategic and valuable partner in this field,“ concluded Tsubasa Yoshito, Export Adviser to Japan at Enterprise Estonia.
The conference was organized by the Enterprise Estonia, the Ministry of Foreign Affairs of Estonia, international consultancy Intralink, and the Japan External Trade Organization (JETRO).
The conference was funded by the European Union’s recovery instrument “NextGenerationEU”.
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