Japanese companies are rethinking how they innovate as AI, changing consumer expectations, and shorter technology cycles reshape global markets.
Rather than relying primarily on in-house research and development, many large enterprises are increasingly collaborating with start-ups, venture capital firms, universities and cross-border technology ecosystems to access new ideas, accelerate product development and commercialise emerging technologies.
This shift was a recurring theme during the Enterprise Reverse Pitch session at BEYOND Expo’s Japan Tech Forum, a global platform to explore the latest developments in China-Japan innovation and unlock new growth opportunities. At the forum, executives from Panasonic, Mizuho Leaguer Investment, Shenzhen Fan and Sony China discussed how partnerships are becoming central to corporate innovation strategies.
While each organisation outlined a different approach, speakers agreed that future competitiveness will depend on combining the scale and industrial expertise of established companies with the agility and specialised capabilities of external innovators.
Moving beyond internal innovation
For Panasonic, the shift reflects changing consumer expectations. According to Jiajia Zeng, Director of Panasonic Holdings’ Mobility Ecosystem Investment Office, the company’s established strengths in engineering, manufacturing and supply chain management remain important, but they are no longer sufficient on their own.
Consumers increasingly evaluate products not only on functionality but also on the experiences and services surrounding them. As a result, Panasonic believes some future product ideas are more likely to emerge from start-ups that can respond quickly to changing market demands.
Rather than relying solely on acquisitions to enter new markets, the company increasingly collaborates with start-ups in adjacent sectors to explore new technologies and business opportunities.
Zeng said Panasonic’s corporate investment activities help identify emerging market trends, better understand evolving customer needs, and evaluate potential future product categories alongside their financial potential.
Panasonic’s current areas of interest include healthcare, lifestyle technologies, robotics, longevity, agriculture, entertainment, and creator-focused technologies. Zeng noted that AI is increasingly blurring the boundaries between these sectors, creating opportunities for manufacturers and technology start-ups to develop products together.
Looking beyond generative AI
The growing importance of AI was also highlighted by Ichio Cho, Partner, Mizuho Leaguer Investment, who argued that the next phase of AI development will extend beyond large language models and software applications.
He pointed to growing interest in what is often described as “physical AI” — the integration of AI with robotics, advanced semiconductors, industrial automation and intelligent hardware.
Cho observed that while China has moved rapidly in integrating AI with hardware, Japan continues to have significant strengths in precision manufacturing, engineering, and industrial systems. Rather than competing directly, he suggested these complementary capabilities create opportunities for greater collaboration across Asia.
He also identified power-efficient computing, edge AI, and technologies that reduce the computational demands of AI training as areas likely to attract continued investment.
According to Cho, successful investment depends not only on identifying promising technologies but also recognising when they are ready to move from research into commercial deployment.
Building cross-border innovation ecosystems
Several speakers highlighted the importance of cross-border collaboration as innovation increasingly depends on combining different areas of expertise.
Established companies typically contribute manufacturing capability, operational scale, and mature supply chains, while start-ups often bring greater speed, technical experimentation and flexibility. Bringing these strengths together is becoming more important as AI accelerates product development and creates new technology categories that combine hardware and software.
Zeng said Panasonic intends to continue engaging with venture investors, accelerators, and start-up communities as part of its broader innovation strategy.
Daichi Araki, founder of Shenzhen Fan, focused on another challenge: strengthening links between Japanese companies and China’s technology ecosystem.
He said many Japanese businesses remain unfamiliar with Shenzhen despite its reputation as a major centre for electronics manufacturing and hardware innovation. Shenzhen Fan seeks to provide entrepreneurs and technology professionals with practical information, local networks, and market insights to help lower barriers to engagement.
Araki added that AI is being used to improve multilingual information services and make it easier for Japanese users to access local resources.
Collaboration becomes central to corporate innovation
Sony China also highlighted collaboration through a pre-recorded presentation from its research institute. The company said it works with universities and research organisations on research spanning mobility, entertainment, sustainability, and AI.
Although the participating organisations represented different industries and investment models, their perspectives reflected a broader shift taking place across Japanese industry.
As AI accelerates technological change and shortens product development cycles, many enterprises are placing greater emphasis on partnerships that provide access to specialised expertise, emerging technologies, and new markets.
Rather than viewing innovation as something developed entirely within corporate research laboratories, companies are increasingly treating collaboration with start-ups, investors, and research institutions as an important part of their long-term innovation strategy.
