Social Impact Assessments (Logic Model and KPIs)

Dialogue between issue finder and co-creator

Interviewer: Hideki Kimura (Mitsui & Co., right)
Interviewee: Yoshinori Odagiri (SPACE COTAN, left)

Kimura: Mr. Odagiri, would you begin by telling us what motivated you to establish SPACE COTAN?

Odagiri: The launch of space-related activities in Taiki-cho dates back to around 1985. At that time, there was a nationwide debate about what we should do in the years leading up to the 21st century. The Hokkaido-Tohoku Development Finance Public Corporation (now the Development Bank of Japan) and the Hokkaido Prefectural Government were leading efforts to revitalize and unearth a variety of industries. Around 15 concepts were proposed for Hokkaido, and one of them was the idea of attracting a space industry base to the town of Taiki-cho. In this context, a project called “Hope” was launched. Hope aimed to develop a Japanese space shuttle, driven by National Aerospace Laboratory (NAL) and the National Space Development Agency (NASDA), which later merged to form JAXA, and Taiki-cho emerged as a candidate location for the project’s test site. The town government fully embraced the concept and started lobbying central government agencies to turn the spaceport concept into reality, including the construction of a runway. While the project ended at the subscale testing stage, this has led to today’s Hokkaido Space Port (HOSPO) program.

Taiki-cho’s space-related initiatives, which were ongoing and inspired by enthusiastic support from the townspeople and successive mayors of Taiki-cho, began to gather pace again in the latter half of the 2010s. As the private space sector has made significant strides, a renewed push to fully commit to these space initiatives has emerged. We started to think that we should turn the municipal-project-level initiatives into a corporate organization. Around 2019-2020 our concept was solidified, and SPACE COTAN was finally established in 2021. This company, which is now in its fifth year, continues to work closely with the government of Taiki-cho.

The launch of the new company coincided with the onset of the COVID-19 pandemic. This prevented an immediate transition to concrete activities, and initially the company focused mainly on surveys and research. Business plans and future concepts began to take shape gradually around 2022-2023, just as Japan was rewriting its Basic Plan on Space Policy and formulating the Space Technology Strategy. One of the concrete measures to emerge from this process was the establishment of the Space Strategy Fund, which has led to the rapid acceleration of activities since 2024.

Kimura: What propelled the concept toward realization was the strong determination of those involved. Enthusiasm is really vital.

Odagiri: That’s true. Of course, I’m sure that a number of serendipitous factors were also involved, but ultimately it all comes down to people’s passion. Nothing will happen without the drive of committed people. If we were looking for reasons to give up and, for example, whining about the decreasing population, the project would have ended before it even began. I truly believe that the progress we’ve made so far is attributable to the hard work and commitment of all concerned.

Kimura: How did you learn about the Mitsui & Co. Co-creation Fund?

Odagiri: The initial inspiration came from a program in an action plan formulated by the Hokkaido Economic Federation to realize its concept of creating a “Space Silicon Valley” by 2030. The decisive turning point came when staff from Mitsui & Co.’s Hokkaido Office, including yourself, Mr. Kimura, visited Taiki-cho and gave us the opportunity to present our plan to create a Space Silicon Valley centered on HOSPO. Your visit coincided with the establishment of the Mitsui & Co. Co-creation Fund, so we were able to learn specific information about the Fund.
It was a trial-and-error process, in part because we were the first project selected by the Fund. However, our co-creators effectively guided us toward a concept that seemed feasible, and we were able to shape a strategic direction for the project. We’re extremely grateful for your input.

Kimura: I think it was you that guided us. At that time, the Hokkaido Office was struggling to find ways to become involved in the space business, especially the spaceport project. Then the Mitsui & Co. Co-creation Fund was started up, and we learned that you were trying to solve the issue of a lack of launch sites for private sector rockets. We realized that if we could participate in your project, with the aim of a building a private sector space industry like that in the United States, we could engage in the space business from a long-term perspective.
The necessary systems were still being developed, which brought a certain degree of turbulence at times. However, I found the process to be very positive, since it allowed us to build strong relationships as partners who are committed to pursuing answers for various social priorities, such as greenhouse gas measurement, disaster responses, and the elimination of the digital divide, through orbital rocket launches and the collection and utilization of satellite data.

Odagiri: I see the experience of struggling and striving together as a very important part of the process of moving forward with a project. In that sense, too, it was an extremely valuable time for building shared awareness.

Kimura: What was your impression of the Mitsui & Co. Co-creation Fund after actually using it?

Odagiri: The basic position now is that Taiki-cho will develop a launch site, and that we will operate and manage that facility as a service provider. Since we do not plan to hold substantial assets as a company, we frequently struggle to raise the funds needed to develop actual facilities. So, we were extremely grateful to receive a grant from the Mitsui & Co. Co-creation Fund. In particular, we were able to develop the LP12 Launch Pad for sub-orbital rockets thanks to the grant. We initially planned to fund that work with loans, but we were able to use the grant from the Mitsui & Co. Co-creation Fund instead. As a result, we were able to launch a rocket funded by Taiwanese capital. That was a truly happy moment.

Kimura: そIndeed. The launch pad developed by using the grant from the Mitsui & Co. Co-creation Fund became the first such facility in Japan to be used to launch a rocket funded by foreign capital. I was present at that launch, and while it did not go entirely according to schedule, the launch represented the kick-off of a thriving private sector space industry in Asia, as advocated in the application form of the Mitsui & Co. Co-creation Fund. It was a deeply moving moment.

Odagiri: After the launch was completed, the CEO of the Taiwanese company told us that they wanted to launch their next rocket from our facility again. We will continue to provide support to ensure that they can fully realize their mission next time.

Kimura: What are your expectations toward your co-creators, and what value is being created through collaboration?

Odagiri: We have pledged to create a “Space Silicon Valley” in Hokkaido. To achieve that, I believe that we will need to build more concrete business partnerships with companies in Hokkaido. For example, we are collaborating with local companies on the development of the facilities that we plan to create with the Mitsui & Co. Co-creation Fund grant. Local electrical engineering and construction firms have received orders for a Space Strategy Fund project, and we have also started to place orders with other Hokkaido companies. I see these economic knock-on effects as highly significant for the region. The emergence of these trends through the Mitsui & Co. Co-creation Fund itself is a value. At the same time, we need to effectively communicate these activities and their significance externally.

Kimura: You referred to the Space Strategy Fund. What does Space Cotan need for solving this specific issue, beyond the support of the Mitsui & Co. Co-creation Fund?

Odagiri: There are still many challenges that we need to overcome. One urgent priority is the funding for the construction of Launch Complex 2 (LC2), a site designed for frequent launches, as planned by the Japanese government. Since the Space Strategy Fund is a part of the Ministry of Education, Culture, Sports, Science and Technology’s research budget, it cannot be allocated to the construction of launch pads or other facilities. The core facilities for LC2 alone are expected to cost tens of billions of yen, and the source of those funds is a question that needs to be addressed. Rocket launch sites are social infrastructure, and it would be unrealistic to develop them using only private sector money. Because launch sites are positioned as public infrastructure, we believe that they should receive support from public entities such as central and local governments. We recognize that we need to participate in the formulation of schemes and take the preparations to a stage at which we can look to the government for support. Advice from and lobbying by our friends at Mitsui & Co. will make a big difference for the achievement of these goals, as will support from businesses and economic organizations.

Kimura: A spaceport is expected to function as basic infrastructure for the space industry. Globally as well, there is a trend toward the provision of public support for the operation of these facilities. In that sense, I feel that coordination with central and local governments will be essential, and we are happy to work with you on that.

Kimura: What are your expectations toward the future role of the Mitsui & Co. Co-creation Fund as well as its ecosystem?

Odagiri: Our understanding is that Mitsui & Co. will continue to operate the Mitsui & Co. Co-creation Fund system. In that sense, I believe that it would be really meaningful if our efforts could be shared to some extent as best practices for future issue finders. I also think that it would be great if there were a network of Mitsui & Co. Co-creation Fund alumni, who could hold regular meetings to discuss subsequent developments. Ties among people in totally different sectors and industries sometimes become inspiration for new concepts and new business ideas. That would be a valuable development. When we talk to people in our own industry, we inevitably tend to discuss things that we already know. But conversations with people working in completely different fields can lead to various insights and often we see the potential application of their approaches in our own fields, and vice versa. In that sense, I would be happy to see the creation of a mechanism that would lead naturally to the formation of lateral ties across industry boundaries.

Kimura: That’s a wonderful suggestion. Mitsui & Co.’s activities span a wide variety of business domains, and we place a high value on the amplifying power of cross-industry collaboration. It would be great if we could realize cross-industry ideas through a Mitsui & Co. Co-creation Fund network.

Kimura: When we trace the history of the prewar Mitsui conglomerate, we find that Mitsui was deeply involved in the development of Hokkaido. Mitsui people in those days worked with a pioneering spirit to create new industries, such as coalmining, timber, and finance. Similarly, we are now involved in the efforts to build a new space industry in Hokkaido. It’s a great honor to be able to get involved in this process.

Odagiri: Thank you. I also learned something interesting from studying the history of this region. There was a time when Hokkaido was the engine of Japanese industry. Surprisingly, there was also a time when Hokkaido was the most heavily populated part of Japan. These things happened because somebody believed in the great potential of resources in this land and called on people to start businesses here. Some people’s passion moved the whole region. The space industry seems to have a similar model.

Kimura: I really believe that the time has come for Hokkaido to become Japan’s engine once again. Thank you for your time today, Mr. Odagiri. I’m looking forward to the further success of Space Cotan, and to the future of the Japanese space industry.

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