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    • Jun 19
    • 3 min read

Japan's 'Rocket Island' Looks to Startups, Tech Jobs, and Immigration for Revival

Tanegashima Island, home to Japan's rocket launch center, seeks to combat rural decline and depopulation. The island aims to diversify its industries beyond space, focusing on startups, tech jobs, and attracting immigrants. Efforts are being made to attract digital nomads, develop tourism, and offer attractive wages in industries like renewable energy.


With a population of fewer than 30,000 people, the island is best known as the home of Japan's rocket launch center. However, the sporadic rocket launches have not been enough to sustain the local economy, which relies heavily on fishing and sugarcane farming. To combat rural decline and depopulation, Tanegashima is now turning to startups, tech jobs, and immigrants.


Prime Minister Fumio Kishida has designated the space sector as a pillar of long-term economic growth and national security. Japan aims to achieve 30 commercial rocket launches per year by the mid-2030s. However, local businesspeople and officials believe that the island needs to diversify its industries beyond space. They are focusing on private enterprise, including startups, AI tech projects, and attracting digital nomads and immigrant workers.


Shuhei Sato, president of the artificial intelligence startup Village AI, emphasises the need to move away from relying solely on the island's location as a launch site. He believes that the island can attract tech talent and high-paying work, leveraging its remote location and cost-efficient launches to an orbit widely used by communication and weather satellites.


While the boost in rocket launches may not come until the mid-2030s, the town of Minamitane, where JAXA's local offices are located, cannot wait that long. Its population has dwindled to just over 5,000, and officials are actively seeking ways to attract industries beyond rocket launches. The island's pristine beaches and surfing swells have untapped tourism potential, and efforts are being made to develop this sector.


Early signs of change are already visible on Tanegashima. Digital nomads have started moving to the island, proving that tech jobs can be done remotely despite its remote location. Existing companies are also stepping up by offering attractive wages and focusing on industries like renewable energy. Additionally, tech workers from across Asia are being invited to relocate to the island.


Village AI, based in Minamitane, is developing AI applications and providing online training in digital technology. The company aims to develop a pool of tech talent by starting a digital technology course at a local high school. The goal is to attract IT investment to the island and establish it as a hub for high-paying work.


While challenges remain, such as Japan's overall population decline and the expectation of being overtaken by India in terms of economic ranking, Tanegashima is determined to turn things around. Efforts are being made to attract families by offering subsidised yearlong homestays for elementary school children, with the hope that their families will decide to relocate. The island is also seeing a shift in demographics, with younger individuals being elected as local council members.


Local businesses like Ultra-X Asia Pacific, a Tokyo-based software maker, have set up offices on Tanegashima. They are taking advantage of the island's affordable rental offers and teaching programming skills to high school interns. The company believes that attracting IT talent and embracing remote work and "workation" trips will be crucial for the island's economic growth.


Tanegashima's sugarcane industry is also diversifying by joining a biofuel project that aims to produce fuel from sugarcane residue. This initiative, overseen by Sumitomo and Solariant Capital, showcases the island's commitment to adapting to demographic changes and exploring new opportunities.

 

  • Tanegashima Island, home to Japan's rocket launch center, seeks to combat rural decline and depopulation.

  • The island aims to diversify its industries beyond space, focusing on startups, tech jobs, and attracting immigrants.

  • Efforts are being made to attract digital nomads, develop tourism, and offer attractive wages in industries like renewable energy.


Source: NIKKEI ASIA

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