Martial Arts: "Korea Should Pursue 'Win-Win' Through Startup-Manufacturing Collaboration Like Japan"

[Asia Economy Reporter Hwang Yoon-joo] As the manufacturing paradigm changes with the utilization of digital technology and customized, flexible production, cooperation between the manufacturing industry and hardware startups in Japan is rapidly emerging as a new win-win business model, prompting calls for Korean companies to quickly establish such cooperation models.

According to the report "Win-Win Cooperation between Japanese Hardware Startups and Small and Medium Manufacturing Enterprises" released on the 19th by the Korea International Trade Association's Institute for International Trade and Commerce, collaboration between hardware startups that develop and sell new hardware products or provide services and small and medium manufacturing enterprises is actively taking place in Japan. Startups succeed in commercialization while manufacturing companies find opportunities to discover new revenue sources and strengthen competitiveness, spreading win-win cases.

The report states that although the threshold for starting hardware startups has been significantly lowered thanks to the spread of 3D printers and the activation of crowdfunding, many startups face setbacks in prototype production and mass production stages due to lack of manufacturing experience. Additionally, most Japanese and domestic startups focus on the service sector, resulting in insufficient cooperation with the manufacturing industry. Meanwhile, small and medium manufacturing companies with excellent facilities, personnel, and know-how are struggling to respond to paradigm changes such as the Fourth Industrial Revolution. The report suggests cooperation between the two parties as a solution.

In fact, Hilltop in Japan, which had most of its sales from mass production of automotive parts, has seen prototype development and production account for 80% of its sales since it started producing prototypes for hardware startups in 2009. This collaboration has also enabled successful entry into new industries such as medical and aerospace.

Hamano Seisakusho, which started as a mold manufacturer and mass production factory for metal parts, shifted to prototype production and small-lot production systems from the 1990s to strengthen competitiveness. By supporting manufacturing and design for startups, it has not only improved its own technological capabilities but also enhanced its ability to respond to upstream manufacturing processes and currently provides manufacturing consulting services.

Japan has been linking hardware startups and small and medium manufacturing companies since 2018 through the "Startup Factory Construction Project," aiming to become a global hub for prototype production and mass production. Promising startups are attracted to Japan regardless of nationality to support prototype production, and for stages requiring mass production, production is transferred to places like Shenzhen, China, envisioning a global cooperation model.

Lee Hye-yeon, senior researcher at the Korea International Trade Association, said, "In Korea, the manufacturing industry can help hardware startups reduce trial and error, shorten delivery times, and cut costs, while hardware startups can provide the manufacturing industry with opportunities to learn various product designs and new business models, thereby enhancing global competitiveness." She added, "Government support is needed to lead win-win cooperation by linking hardware startups and the manufacturing industry, similar to Japan's Startup Factory Construction Project."

This content was produced with the assistance of AI translation services.