Going With the Flow of Global Innovation

I’d like to begin by discussing the concept of Monozukuri, if that’s alright. Traditionally, Monozukuri refers to the Japanese spirit of manufacturing centered around craftsmanship, perfection, and meticulous attention to detail. Today, it also involves flexibility in responding to customer needs and delivering added value. How would you define Monozukuri, and what does it mean to you and your company?

In general, Monozukuri can be thought of as a “product-out” approach where the driving force is the product itself. In many Western countries, including the United States, the philosophy tends to be “customer-first, technology-second.” If a company doesn’t have a certain technology in-house, they can simply purchase it or acquire another company, integrate the technology, and deliver the final product to the customer. In contrast, in Japan and particularly within our company there is a stronger emphasis on “technology-first, customer-second.” I’m not necessarily saying one is better than the other; each has its merits depending on the context. But our belief is that true Monozukuri starts with a deep mastery and prioritization of technology.

There is a downside to this approach: once a company becomes deeply committed to a certain technological path, it becomes more difficult to pivot quickly in response to market changes. But despite the risk, I intentionally choose to stay on that path. I believe that in today’s world where there’s so much hype around AI and where many products are becoming commoditized it’s essential to differentiate ourselves. At Takasago, we don’t chase trends. We aim to remain true to our core strengths. While others move toward mass production and automation, we stay focused on advanced, specialized technologies. In a rapidly changing and diverse global market, this approach might appear to be a risk, but it’s also our greatest differentiator. Ultimately, I believe that holding firmly to our strengths what we’re truly good at will position us to lead the global competition among small and medium-sized enterprises in Japan.

That’s a very insightful answer. I’d like to continue on that theme of competitiveness. Despite increasing pressure from regional competitors in countries like China, Vietnam, and South Korea, Japanese manufacturers continue to lead in high-precision, niche B2B markets. What enables Japanese manufacturers to maintain this competitive edge?

That’s a great question. I just returned from India last weekend, where I visited a number of local manufacturers. I brought along our Chief Management Officer, who is also an engineer, and we closely examined their technologies. To be quite candid, the quality was extremely poor. There are three main reasons why I believe Japanese manufacturers continue to excel, particularly in high-precision fields.

First, it’s the Japanese mindset. As a culture, we are quite sensitive almost to a fault. People here are often afraid of making mistakes or being reprimanded. That fear of failure creates an innate desire to produce something that is flawless. Japanese people don’t want to cause problems, so they naturally aim for high-quality outcomes. This personality trait contributes directly to the precision and attention to detail in Japanese manufacturing. Second is a cultural factor: origami. From a young age, many Japanese people practice origami, which strengthens fine motor skills and hand-eye coordination. This tradition has created a population that is, on the whole, very dexterous and capable of working with tiny, intricate parts. This naturally translates into high-precision industries like machinery and electronics. Third, based on my own professional experience, I’ve observed that manufacturers in countries like China and South Korea tend to avoid engaging in precision work because it’s less profitable. Their focus is on mass production and lowering costs. They don’t want to deal with small-volume, detail-oriented production it simply doesn’t yield the same returns. That’s why Japanese manufacturers, who are willing to take on this work, continue to be sought after. So, to summarize: cultural discipline, a tradition of manual precision, and a willingness to focus on low-volume, high-complexity manufacturing are what differentiate Japanese companies in these markets.

Let’s now turn to Japan’s demographic challenges. Population decline is not a new issue it’s been discussed since the 1970s but it’s now becoming critical. Japan’s population is expected to drop below 100 million by 2050, and by 2040, a 12% labor shortage is projected. OECD data suggests Japan will need over 7 million foreign workers just to sustain 1.25% annual growth. How is your company responding to this challenge? Do you see opportunities within this crisis?

We’re tackling this challenge from two key directions. First, we’re embracing artificial intelligence. We’ve formed a dedicated internal AI team not including myself, but led by a capable member tasked with shifting daily operational tasks from humans to AI systems. It’s still early, but we’re actively moving in that direction. Second, we’re proactively recruiting highly-skilled foreign engineers. At the end of this month, for example, I’ll be traveling to Jakarta to recruit engineering talent from Indonesia. Last October, I went to Mongolia with the same objective. This is a deliberate strategy.

Do you have a specific target in mind for international recruitment?

Yes. Our target is for over 51% of our team to be non-Japanese by 2030. As of today, we’re already at 33.3%. This approach is deeply influenced by my own experience. I spent 2 years working with MIT’s physics department. Our team was incredibly diverse members came from Spain, Turkey, Russia, China, the U.S., and of course, Japan. Each of us brought different perspectives, and that diversity fueled creativity and innovation.

At my previous company, Menicon, they supported my time at MIT financially. But at Takasago, we don’t have the budget to send employees to top international universities. So instead, we bring global diversity here. In 2022, I hired four engineers from IIT in India. In 2023, I expanded recruitment to include Muslim engineers from Indonesia. We’ve since brought in talent from Pakistan, Mongolia, Bangladesh, and Afghanistan. I’m now extending this effort to the Middle East and eventually to Africa.

Product manufacturing cleanroom

Let’s now talk about your company’s international strategy. Takasago currently exports to more than 50 countries, has a manufacturing subsidiary in Suzhou, China, and maintains a strong global distribution network. Could you speak to the importance of China in your overall business strategy?

I’ve visited our factory in China many times. What makes that facility unique is that its culture and structure closely mirror Japanese factories, which makes it easier to manage. It’s a top-down organization where instructions are followed without resistance. That obedience, in a positive sense, ensures high operational efficiency.

We originally entered China because one of our major clients relocated their operations there, and we followed to support them. Compared to France where I once managed a factory and encountered strong pushback from employees China offers a more compliant and responsive environment. India, by contrast, presents different challenges. Workers often prefer to do things their own way, and adherence to standard procedures can be inconsistent. That said, China is not without its challenges. There are growing geopolitical risks and uncertainties. Because of that, we are planning to build a second manufacturing facility, likely in India. I’m visiting frequently to move that forward.

Beyond China, where do you see the strongest growth opportunity for

India, without a doubt. Prime Minister Modi’s “Make in India” initiative was introduced in 2014, and I’ve seen both the potential and the challenges during my visits. The reality is, a lot of what’s marketed as “Made in India” is still heavily dependent on components imported from China. The final products are assembled in India, but the core manufacturing isn’t happening there yet.

I’m working to change that by helping train young Indian engineers. By doing so, I hope to elevate India’s manufacturing capabilities from the ground up. If we succeed, India won’t just be assembling it will be innovating. Takasago is a B2B company. Our clients span many industries: medical, automotive, semiconductors, aerospace, cosmetics, agriculture. If India’s manufacturing base matures, we stand to gain tremendously.

May I ask about your strategy for India? You mentioned earlier that India is your strongest opportunity. Will your approach involve opening a new subsidiary, pursuing M&A, or forming partnerships?

The Indian market is still very price-driven. Low-cost Chinese and Indian manufacturers dominate the space, which makes it difficult for a high-end company like ours to compete directly. So instead of going head-to-head, we’re building brand awareness through long-term investment in education.

One initiative we’ve launched is the “delivery internship.” Rather than inviting students to Japan, our employees travel to Indian universities during business trips, give lectures, and issue official certificates. When students express interest in joining Takasago, we decline not because we don’t value them, but because we want them to first join Indian manufacturers and help raise the level of the local industry. This grassroots strategy will take time, but in the future, when those students become professionals or executives, they’ll remember Takasago. That recognition will open doors for us when we eventually enter the market directly. This year, I became a visiting professor at two universities in India including SRM University AP. This allows me to build deep relationships and provide high-end education, while simultaneously enhancing Takasago’s brand presence. It’s a win-win especially since we don’t have a large marketing budget.

Various Miniature Solenoid Valves and Fluidic Components produced by Takasago Electric

May I ask about your strategy for India? You mentioned earlier that India is your strongest opportunity. Will your approach involve opening a new subsidiary, pursuing M&A, or forming partnerships?

The Indian market is still very price‑driven low price, low price, low price. Indian and Chinese manufacturers already offer extremely cheap products. Takasago cannot compete in that space. Our position is in the high‑end segment. To succeed there, we first need people to know the Takasago name. So instead of competing directly in the marketplace, we focus on long‑term brand building in India. Instead of asking students to come to Japan, when our employees travel to India for business, they visit universities to teach engineering concepts and fluidic control technologies. After each session, we issue certificates to the students.

Many of them ask to join Takasago, but I intentionally decline. Instead, I encourage them to join Indian manufacturers. If they help raise the skill level of Indian industry from within, the entire “Make in India” ecosystem will grow. And in the future, those same engineers may become our customers or business partners. This is a slow, long-term strategy: cultivate talent, elevate the industry, and build trust. We also give workshops at top universities, speak at startup hubs, and even run a “two-way business school” where we teach both technology and business perspectives.

This year, I became a visiting professor at two universities in India including SRM University AP—starting in October. I don’t just deliver lectures; I build lasting academic and industrial relationships. And because the university covers my airfare and hotel once a year, I also use the opportunity to visit our customers in India. It’s efficient and cost‑effective. We have no marketing budget. So instead, we use creativity and education to build Takasago’s brand from the ground up.

That’s a very innovative approach. I’d like to turn to your global partnerships. You have collaborated with institutions such as JAXA, NASA, MIT, Harvard, as well as major companies like GE Healthcare, Hitachi, Shimadzu, and others. Why do these advanced organizations choose your company? What is Takasago’s competitive advantage?

Our biggest competitive advantage is customization. Many companies only sell standard catalog products. They may require a minimum purchase quantity 10 units, 50 units, 100 units before they will accept an order. They work with molds and standardized designs.

Takasago is the opposite. We design from scratch according to the customer’s individual requirements. Even if the order is only for one unit, we will create a custom design, build a prototype, and revise it repeatedly until the customer is satisfied. This is a low-margin, labor‑intensive business. Most companies will not do it. Chinese manufacturers certainly won’t they focus on volume. As a result, research institutions often approach our competitors first. They go to companies like CKD or Parker, and those companies decline because it’s not profitable enough. So finally, the customer comes to Takasago the “last resort.” And we always say, “Welcome.” This reputation has been built slowly over 66 years. That’s why these institutions trust us.

I found a JETRO recruitment page mentioning that Takasago is developing technologies related to mobility, including EVs and air mobility such as flying taxis. Could you elaborate on your activities in this field?

That statement is general, but I can share how I’m thinking about mobility applications today, especially using drones. For example, imagine convenience stores. When a robbery happens, all we have is CCTV footage. But what if a drone with AI camera could detect suspicious behavior, pursue the suspect, and even drop a dye marker an orange liquid to tag them?

We don’t make the drones ourselves, but we can provide the modules, cartridges, and valves. If the interface matches, our components can be used with any drone. Another example is bear encounters in Japan. Bear sightings are increasing. We cannot legally kill the bears, but  a drone could chase them away with noise or strong smells again using our cartridges. The goal is to make the bear associate human areas with a terrible experience so they avoid returning.

We are already developing prototypes, including a drone system for removing beehives. Elderly people often suffer heatstroke while doing this manually. A drone can spray pesticide safely. We have already made a prototype and uploaded videos. These ideas all connect to Japan’s shrinking population. Drones can take over dangerous or labor-intensive jobs in rural communities. That’s our perspective.

That’s fascinating. Moving to other areas of growth: Takasago serves sectors such as semiconductors, cleanrooms, gas analysis, miniature thruster valves, and regenerative medicine. Which application field do you see as offering the strongest growth opportunity? Are there new segments you want to enter?

The answer is definitely space. Thanks to Donald Trump ironically. When he increased tariffs and tensions, European and Indian space agencies began distancing themselves from American suppliers. The largest global competitor for our space valves is in the U.S., but geopolitical shifts opened the door for us. At the same time, global instability Russia and Ukraine, China and Taiwan, U.S.–China tensions has accelerated investment in space. Satellites are critical during modern conflict: communications, surveillance, drone control, GPS, missile systems. Space is no longer niche.

Beyond defense, space is also tied to future technologies like robotic surgery. Current robotic surgery has a time lag. With 5G it’s still too slow. We’ll need 6G, 7G, 8G and that relies on space infrastructure. Our valves are essential in small satellites, and we already supply four or five types. Sales in this segment grew 20–30% this year. Tomorrow morning I leave for Bremen for the Space Tech Expo Europe, where we have a booth. The timing is excellent for us.

Are there challenges you face in growing your space business?

Yes. One challenge is cost. We currently outsource welding, which is very expensive. To address this, we are building an internal welding team four members to bring the work in-house and reduce cost. Space applications require extremely high‑precision welding.

Multinational team

I’d like to talk about your technology. Your miniature chemically inert solenoid valves offer contamination‑free flow paths and microliter‑level precision. What makes your valves special, and how do you overcome the challenges involved in creating such advanced products?

We continuously develop new mechanisms not only traditional solenoids. For example, we’re working with shape‑memory alloys and piezoelectric elements. Piezo components vibrate fluid at high precision. We’re also developing electro‑osmotic pumps. We have many different pumping and valve mechanisms because we’re always trying new technologies. These developments come directly from customer requests, not from marketing. If NASA or Tesla asks, “Can you make this?” we try it. That’s our daily routine.

Japan spends more of its GDP on R&D than many countries. Could you explain Takasago’s R&D philosophy?

Because our main business model is customization, we don’t have a traditional R&D plan. Every day, requests come in from Harvard, from NASA, from IIT. We discuss, design, and prototype. That is our R&D. Unfortunately, our workforce is shrinking because Toyota is nearby and pays much higher salaries. When employees leave, we lose the capacity to pursue long-term R&D projects. Right now, we can only handle daily operations and customer‑driven development. But over time, this customization has led to more than 10,000 different product models. We’ve created around 400 drawings per year. Our accumulated technical base is enormous.

Let’s discuss regenerative medicine. We saw that you exhibited new pump platforms at the 2025 Regenerative Medicine Expo. What role do you see for Takasago in regenerative medicine and cell processing?

Our first device was a portable medium‑exchange system for microbiologists. But that field requires heavy customization, so it’s not profitable. That’s why I’m shifting toward IVF in vitro fertilization. IVF uses sperm and eggs in standardized processes: fertilization stages of 2, 4, 8 cells. Every clinic uses similar setups. There is no customization, and all components must be disposable. That makes it highly scalable and profitable.

Last month, I invited former colleagues from Menicon who are active in the IVF space. Together, we visited clinics to understand their needs. Now we’re starting to design prototypes. The market potential is huge especially with global fertility challenges. And there is virtually no competition in fluidic systems for IVF.

Company exterior

Do you have a timeline for the IVF initiative?

Not yet. We were delayed by COVID-19, because clinics could not meet visitors. But now we’ve resumed interviews and development. It has just begun.

I’d like to ask about your future ambitions. You recently reached ¥3.9 billion in revenue and aim for ¥5 billion soon and eventually ¥10 billion. What strategies will help you reach these goals?

Our strongest client is Hitachi, particularly in medical devices. They continue to grow, and we will grow alongside them. With that alone, we expect to reach about ¥7 billion steadily. To reach ¥10 billion and beyond, we will rely on India and aerospace as major growth engines. And as additional support, we will develop new businesses like IVF and drones.

Imagine we return in five years for another interview. What would you like to have achieved by then?

In five years, I want Takasago to have full subsidiaries in both India and Germany. We already have Takasago China. With Takasago India and Takasago Europe, I want to operate as a true global group. My goal is to become a global head spending time in India one week, Germany the next, then Japan and China. I want my team members to serve as presidents of each subsidiary. That is my vision for five years from now.

Final question. Newsweek is influential among manufacturers, investors, and global talent including foreign professionals searching for meaningful opportunities in Japan. In one sentence, how would you describe the essence and appeal of your company to this audience?

Helping innovators realize their dreams. Our customers work in the earliest stages of R&D in space, semiconductors, automotive, medical devices. They are innovators. We support their visions through precise fluidic control. That is our mission.

For more information, visit their website at: http://www.takasago-elec.com.cn/takasago/