Two years ago, Google acquired Schaft, a startup founded by two University of Tokyo professors who’d developed a robot that walks on two legs. Schaft failed to line up local venture funding before turning to U.S. giant Google. “If we don’t create a culture of [venture] investment, there will be a lot of similar examples,” says Waseda University mechanical engineering professor Atsuo Takanishi.
Japan has a built-in edge over its rivals, starting with a deep and sophisticated domestic robotics industry, says Hal Sirkin, a senior partner and managing director at Boston Consulting. In factory robotics, “they can pretty much easily produce what they need.” Cheaper sensors, motors, and computing power have driven the cost of some industrial robots to as low as $25,000, down from $100,000 just a few years ago. That means small and midsize companies can afford advanced machines. With Japan’s declining workforce, job displacement won’t be as much of a barrier to rolling out more machines as it would in the U.S. By 2025, Japan’s robots could shave 25 percent off factory labor costs, says BCG.
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