What Financing Mechanisms and Organizations of Business Entities Best Facilitate Innovation?

Joint ventures among existing firms and new venture businesses have long been recognized as important from the point of view of promoting innovation, and are becoming increasingly critical for Japan.

For instance, in the case of large corporations, liquiditization consisting of conducting smooth collaboration with other firms and utilizing its own assets effectively, and leading finance into that firm are of great concern for businesses. At the same time, for new venture businesses, how to adapt their strategies according to the stage of corporate development, and which kind of "exit" to consider (such as IPO) are crucial.

However, to what extent a firm can attract risk money and risk capital depends on the form of the business entity, the possible method of financing of its activities, and also on the nature of the market for financing, and the institutional background of the country, including the legal framework.

Through this symposium, participants will discuss the ideal form of financing according to the stage of corporate growth, legal framework concerning corporatization by examining overseas cases, and will try to provide insight as to the future direction of policymaking in this area and the market environment. In particular, overseas scholars will be invited to present cases of corporate legislation in Europe, for which information is relatively hard to obtain in Japan, to examine the commonalities with Japan and shared problems and deepen the scope of discussion. Concrete themes such as the issue of vehicle (including disclosure, pass-through, service contribution and minimum capital) will be addressed.

The first day of the two-day event will be of a high academic standard, targeted mainly at professional practitioners and researchers who wish to deepen their understanding of the issues. The symposium in the afternoon of the second day will target a wider audience, and will recap the discussions of the previous day and provide policy implications.