The Launch of a New Cross-Industry Innovation Consortium in Japan
In an era where rapid technological advancements and shifts in the global economy dominate, traditional industry growth strategies may no longer suffice in maintaining competitive advantages. Recognizing this urgent need for transformation, three prominent companies—Relic, Industry One, and Hakuhodo—have joined forces to establish a Cross-Industry Innovation Consortium. The consortium aims to cultivate innovation that transcends industry boundaries and to explore novel business opportunities that can significantly impact the Japanese economy.
Background of the Consortium
In Japan, the delay in digital transformation (DX) is projected to lead to an economic loss of up to 12 trillion yen by the year 2025, a phenomenon often referred to as the "2025 Cliff." Consequently, inter-company collaboration beyond industry confines has become imperative. The Japanese government's plan to mobilize private capital amounting to approximately 150 trillion yen for Green Transformation (GX) and digital initiatives underscores the necessity for large corporations to share risks and collectively develop new ventures. Recent studies from Japan's Ministry of Economy, Trade, and Industry indicate that collaboration between foreign entities and Japanese firms fosters open innovation, yielding new business models and technological advancements. Therefore, the consortium aspires to integrate the resources and technological capabilities of diverse industrial giants to create new markets and tackle societal challenges.
Objectives and Goals
The Cross-Industry Innovation Consortium serves as a central hub for driving innovation that transcends traditional industry frameworks. By leveraging each company's unique strengths and resources, the consortium will facilitate transformation across various sectors while promoting collaborative endeavors. Relic, as the founding entity, will oversee operations by leading projects and establishing joint ventures among member companies, ensuring an infrastructure for innovative collaboration. Importantly, the consortium welcomes future participants without requiring them to possess similar cross-industry functionalities. This flexibility encourages diverse engagement based on individual strengths and resources.
The consortium's activities are not merely limited to network expansion; participants will engage actively in pilot experiments and business development. Relic will assume a pivotal role in driving practical co-creation projects, tightly coordinating with each member enterprise.
Key Activities
- - Exploration of Market Needs and Social Issues: Relic will utilize its innovation database alongside member companies' assets to identify significant market demands and societal challenges that can promote cross-industry innovation.
- - Business Model Development and Ecosystem Building: Through partnerships, investments, and mergers & acquisitions across various sectors, the consortium aims to construct a robust network that includes startups, large enterprises, academia, and local governments. Relic will also collaborate on managing a cross-industry startup studio.
- - Research and Development of Cutting-Edge Technologies: The consortium will promote joint research and development in key fields such as AI and deep tech, working towards selecting and nurturing technologies that can compete on a global scale.
- - Support for Business Development and DX Initiatives: Leveraging accumulated knowledge and its Business Technology & Creative (BTC) organization, Relic will assist member companies in their business development and digital transformation efforts, facilitating business matchmaking for collaborative opportunities.
- - Building and Promoting Innovation Capital: The consortium will encourage cooperation among companies and the exchange of personnel to cultivate a new generation of innovators, systematically compiling and sharing knowledge and successful case studies within the consortium.
Roles of the Participating Companies
- - Relic Inc.: With substantial experience aiding over 20,000 projects across 4,000 companies, Relic will design processes to commercialize the technologies and assets of member companies, ensuring rapid business deployment.
- - Industry One Inc.: Operating under the vision of leading the implementation of DX in society, Industry One will leverage its expertise in digital services built for Mitsubishi Corporation, striving to accelerate business growth and bolster competitiveness among Japanese firms.
- - Hakuhodo Inc.: Renowned for its unparalleled creativity and marketing prowess, Hakuhodo aims to increase the accuracy of market adaptation through new business verification processes, supporting the development of innovative ventures.
Future Developments
The consortium will initially commence activities involving these three companies, building projects that capitalize on their varied strengths and experiences, alongside collaborative research and development efforts. Eventually, efforts will be made to engage additional businesses to fortify Japan’s broader innovation ecosystem.
Statements from Company Leaders
- - Takao Kitajima, CEO of Relic: "We are honored to have leading enterprises in Japan join this consortium. Relic is committed to leveraging its extensive network and knowledge base to contribute to the innovation ecosystem in Japan."
- - Tsubasa Endo, President of Industry One: "Through collaborative endeavors combining our digital implementation strengths and open innovation capabilities, we aim to accelerate structural changes in industries and address social challenges."
- - Hiroyuki Miyai, Director at Hakuhodo: "We believe that interdisciplinary efforts are essential in this era where business and science converge, and we aim to enhance communication among various stakeholders, fostering the emergence of new industries."
Overview of Open Innovation Debt
Open Innovation Debt is a venture debt model developed by Relic that combines the characteristics of traditional debt financing and equity financing. It is a unique fund designed to promote open innovation and venture funding without necessitating an early exit through IPOs or M&As, fostering sustainable growth for aspiring startups. Further details regarding this model can be found on the
Relic website.