TOKYO -- More than 50 companies in fields such as drones and robotics have set up facilities in coastal Fukushima prefecture, which was hit hard by the 2011 tsunami and nuclear disaster but now has plenty of space for startups.

Dozens of Japanese and foreign investors gathered last month at a test site in the city of Minamisoma operated by Zip Infrastructure, a developer of urban autonomous ropeway systems. Visitors rode the company's prototype ropeway over a roughly 120-meter stretch.

The demonstration was part of a two-day investor tour organized by startups operating in Minamisoma, much of which was located within the evacuation zone following the Fukushima Daiichi nuclear power plant accident.

Participants visited the headquarters and factories of seven companies. This was the second such tour after the inaugural event last year.

"We saw actual investment deals as a result of the previous tour," said Tasuku Nakai, CEO of Tetra Aviation, a company based in Minamisoma that develops flying cars and the host of this year's event. "We'd like to hold this event every year." The region's appeal stems from the availability of two resources critical for research and development: land and funding. Companies working on large machinery or next-generation mobility systems require expansive testing grounds where they can operate full-scale prototypes.

Zip Infrastructure uses a test site in Minamisoma to develop autonomous gondolas for urban environments.

Since the 2011 disaster, parts of eastern Fukushima have been redeveloped to accommodate such projects. Companies can also access subsidies from national and local governments. That combination of infrastructure and financial support has become a draw for manufacturing startups.

Under the central government's Fukushima Innovation Coast Framework, efforts have been underway to foster new industries across an area that has suffered from depopulation and a loss of local industries like fishing. The prefecture's designation as a national strategic economic zone in 2024 has further improved business conditions, including relaxed drone flight regulations in some areas.

One of the flagship facilities in the region is the Fukushima Robot Test Field in Minamisoma, which fully opened in 2020. The site was created for drone and robotics research, development and testing. It includes mock infrastructure like bridges and tunnels, simulated disaster zones and dedicated drone runways.

Man-Machine Synergy Effectors, a Japanese robotics startup, is using the facility to develop robots for seismic reinforcement work on bridges.

Hama, a company in Minamisoma developing seaplane-type drones for information gathering, uses nearby waters for testing aircraft. A prototype flying car made by Tetra Aviation. The region has also been attracting space startups.

Interstellar Technologies, a rocket developer based in the northern island of Hokkaido, set up a manufacturing facility in Minamisoma in December 2025. AstroX, which is developing rockets that can be launched from high-altitude balloons, also operates a factory in the city.

More recently, Issei Yamamoto, head of Tokyo self-driving startup Turing, launched a new company in Minamisoma in October to develop reusable rockets.

Okuma, one of the towns that is home to the Fukushima Daiichi nuclear plant, has attracted startups focused on nuclear decommissioning technologies.

Ookuma Diamond Device, based in the northern city of Sapporo, plans to begin mass-producing diamond semiconductors at a plant in Okuma as early as fiscal 2028. The semiconductors are expected to withstand high radiation levels and extreme temperatures, making them suitable for decommissioning work.

The local industrial supply chain is another advantage. The region hosts precision metal-processing companies that support the automotive and electronics industries.

The economic benefits of this activity are beginning to spread locally. Transactions between robotics, aerospace and other startups and local businesses totaled about 520 million yen ($3.29 million) in fiscal 2025, according to Minamisoma municipal officials, up more than 20% from the previous year. Financing will be a challenge moving forward.

National and prefectural reconstruction budgets have shrunk over time. While subsidies for incoming businesses remain generous, government reconstruction programs and related bond issuances are scheduled to run only through fiscal 2030. It is unclear whether substantial support will continue beyond that.

Many startups that have moved into the area are still in the demonstration phase and have yet to reach mass production or actual sales. Policymakers and local stakeholders will be watching to see whether these companies can establish a lasting presence in eastern Fukushima and generate sustained employment and business opportunities.