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When Japan’s Prime Minister Fumio Kishida announced his August 2024 departure, it sparked familiar debates about economic leadership and innovation — conversations Canadians know well as we grapple with our own innovation strategy.

But beneath Japan’s political transitions lies a business culture offering Canada a game-changing model: one that marries Silicon Valley’s rapid experimentation with the career sustainability our founders desperately need.

The stats are sobering in North America.

Research by Dr. Michael A. Freeman from the University of California San Francisco reveals entrepreneurs experience significantly higher rates of mental health challenges than other groups, with depression occurring at roughly twice the national average and substance abuse at about three times the rate.

Meanwhile, while half of all Canadian small businesses survive five years, tech startups face brutal 20-25 per cent survival rates — and too many talented founders never return after their first knockout.

Japan’s entrepreneurial ecosystem offers a different game plan. The “fail-fast” model isn’t broken — it’s what happens after failure that separates heroes from casualties. Japanese business culture creates what innovation experts call “psychological safety,” transforming calculated risks and early setbacks into learning experiences rather than career obituaries.

“Compared to North America’s hustle culture, Japanese innovation may appear slower. Yet behind this lies a workplace built on long-term employment, teamwork, and careful consideration of risks — an environment that fosters steady, sustainable growth,” explains Noriko Kishida, CEO of Insight Core Inc. in Tokyo. “Rather than chasing disruptive breakthroughs at all costs, Japan’s strength lies in complementing startups’ hustle-driven energy with the stability of large firms, creating fertile ground for long-term, sustainable innovation.”

This philosophy shows in the numbers. While Japanese funding involves longer due diligence, it emphasizes ‘second acts’ — supporting founders who stumble to re-enter stronger. In 2024, Japanese startups attracted record capital inflows exceeding hundreds of billions of yen, but with a twist: prioritizing sustainable scaling over the blitz growth that burns out founders.

The sector focus tells the story. Japan’s most valuable startups emerge from deep-tech domains — AI, synthetic materials, biotechnology, space technology — capital-intensive fields rewarding persistence over quick marketing wins. These aren’t businesses built on hype cycles; they’re marathons requiring founders with elite endurance.

“Japanese businesses tend to be very loyal customers and take a deliberate approach to buying,” notes Jim Weisser, a U.S.-born serial entrepreneur who sold his startup PBXL K.K. to BroadSoft (later acquired by Cisco). “That’s a double-edged sword: the upside is low churn and stable revenue; the downside is slower customer acquisition compared to Western markets.”

Canada can adapt these lessons without losing our competitive edge. Two power-play strategies stand out: venture studios and massively expanded corporate venture capital.

Venture studios provide shared infrastructure and experienced operators, letting founders fail fast on specific ventures while building durable entrepreneurial careers. Think of them as training facilities where players develop skills across multiple games rather than betting all on one shot.

Corporate venture capital delivers patient capital and industry expertise, helping founders learn from setbacks instead of being benched permanently. Together, these create more ‘ice time’ — more opportunities to nurture skills across ventures and convert early losses into later victories.

The mental health crisis demands this shift. Freeman’s research shows financial stress and economic instability drive founder struggles, but systems providing stability, mentorship, and re-entry pathways can dramatically reduce that burden.

The policy playbook writes itself. Canada should incentivize venture studios linked to university tech transfer and regional innovation hubs, and expand tax programs that attract corporate venture capital alongside independent funds.

Equally important: fund founder re-entry programs with targeted support for second and third attempts, and reward competitive, performance-based procurement that builds long-term supplier relationships rather than chasing lowest-cost contracts.

Canada’s fledgling “more shots on net” strategy needs an upgrade — more players who can stay in the game. Venture studios and corporate venture capital represent our power play: keeping talented entrepreneurs on the ice longer, learning from each attempt, ultimately scoring the goals that drive sustained economic growth.

Championship hockey teams aren’t built on individual theatrics — they’re built on depth, resilience, and the wisdom that comes from playing multiple seasons.

Japan shows us the playbook for developing entrepreneurial dynasties, not just one-hit wonders.

Time for Canada to execute.