Following a $45 million investment from Tokyo-based Takeda Pharmaceuticals in September 2023, key figures in the state of Minnesota, led by Gov. Tim Walz, Destination Medical Center, and Greater Minneapolis Saint Paul Regional Economic Development Partnership (Greater MSP), are looking to explore more economic partnerships and investment opportunities with Japan this 2024.
Why Japan?
Greater MSP CEO Peter Frosch stressed: “Over the past four years, there has been a nearly 50% increase in Japanese firms doing business in Minnesota.” The CEO shared that more than 40 Japanese companies are currently doing business in Minnesota and thatconversely, around 30 homegrown Minnesota companies operate across 1,000 business locations in Japan including industry giants like Cargill, 3M, and Ecolab.
Minnesota boasts nearly $2 billion in annual exports to Japan, with investments totaling around $2.1 billion and accounting for 10,800 new jobs, according to the Minnesota Department of Employment and Economic Development (DEED).
Frosch attributes the thriving Japan-Minnesota bilateral relations to “cultural affinity and sectoral synergy,” particularly in fields like medical technology and microelectronics. With Japan's expertise in value-added manufacturing, constituting over 20% of its GDP, opportunities for collaboration abound.
According to Greater MSP's website, Frosch's team is working closely with Japanese-owned Polar Semiconductor and Takeda, as both companies are projected to double the region's semiconductor sector's size and create thousands of high-paying jobs.
Meanwhile, Japan America Society of Minnesota (JASM) Board Member Peter Hill said: “Japan and Minnesota share a culture of teamwork, humility, and respect. This makes it easy for our citizens to relate to each other. This mutual affection is demonstrated by the seven sister city relationships between Minnesota and Japan, including the oldest in the country: St. Paul-Nagasaki.”
JASM's efforts over 50 years to promote Japanese culture in Minnesota, coupled with ongoing initiatives to facilitate understanding of Japanese business practices, reinforce this bond. But, a few challenges persist, particularly in integrating Japanese expatriates into local operations.
Despite these challenges, the shared interests between Japan and Minnesota, namely in burgeoning sectors like sustainable aviation fuel and biotechnology, point towards a promising future of collaborative innovation and economic growth.
