An increase in artificial intelligence startups and incubation facilities is bringing the Tokyo district of Hongoto the forefront of technology and innovation, JLL says.

A well-known academic district with a rich literary history, Hongo houses a variety of educational institutions, schools and traditional universities, while also being close to Chiyoda-ku ward and Ochanomizu area in the southern part and Ueno district and Akihabara area in the eastern.

But JLL Research Analyst Asako Nakamura said the establishment of co-working spaces for start-ups across the past few years had prompted a cultural shift in the area.

At a glance: 

• The Tokyo district of Hongo is developing into a technology and innovation hub, according to JLL.
• The region has a growing community of start-ups, many of which specialise in artificial intelligence products.
• One of Japan's largest real estate companies, Mitsubishi Estate collaborated with the University of Tokyo to open a facility in Hongo to support new businesses.

"Start-ups that delve in artificial intelligence (AI) products and services are concentrated here, which is why this area is also called 'Hongo Valley'," she said.

"The accumulation of AI start-ups and incubation facilities is a driving force behind innovation and growth in the district.

"Already a highly convenient location for transportation, more development is expected in the future."

JLL Research Analyst Asako Nakamura. Source: JLL

The potential of the region has already been identified by one of Japan's largest real estate companies, Mitsubishi Estate, which collaborated with the University of Tokyo to open a facility in Hongo to support new businesses.

Launched in 2018, the facility is designed to accommodate start-ups established by graduates, researchers and students at the university by providing free office space such as private rooms, co-working spaces and conference rooms.

In addition to space, the company also provides services, such as business development support, educational programmes and necessary knowledge for entrepreneurs.

Ms Nakamura said the program was an example of how startups were allowed room to flourish in the region.

"Through this support, companies may cultivate business development knowledge and skills, accelerating opportunities for innovation and for generating new businesses," she said.

"We expect the growing interest in Hongo to proactively work in terms of industry-academia partnerships for an innovative ecosystem."

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