INNOVATION DISTRICT SPOTLIGHT 10 NTT East – performance-driven governance in Japan’s 5G innovation hub Overview In 2020, NTT East – a subsidiary of Nippon Telegraph and Telephone Corporation (NTT) – established the Local 5G Open Lab in Tokyo, becoming Japan’s first innovation hub for private 5G technology following the country’s December 2019 spectrum allocation. Strategic governance This facility has demonstrated how strategic governance can transform emerging technology into a viable market through four evolutionary phases: –Proof-of-concept development. –Commercialization showcase. –Production testbed. –Business model establishment. Public-private partnership The lab provides vendors and solution providers with access to actual private 5G networks for testing devices and developing use cases, significantly lowering adoption barriers. Strategic partnerships with the University of Tokyo (5G research leader) and Tokyo Metropolitan Government (corporate digital transformation supporter) have strengthened the ecosystem. Within two years, dozens of companies conducted trials, leading to breakthrough applications in high-resolution video, robotics and end-to-end solutions. Smart factory model bridges “valley of death” NTT East positions itself as the business owner, channelling outcomes into two models: system integration for complete onsite solutions and managed “as-a-service” offerings that make private 5G accessible at affordable prices. The lab’s smart-factory environment bridges the “valley of death” between concept and deployment. This governance model has generated over ¥5 billion (approximately $35 million) in cumulative revenue. Evolution into NTT e-City Labo has expanded the focus beyond private 5G to smart agriculture and disaster prevention, attracting 20,000+ international visitors and supporting 60+ business innovation projects.Business model integration Integrating business model development into the demonstration and enablement process is critical to the success of the innovation district. For example, NTT East’s e-City Labo in Tokyo evolved strategically across four phases: proof-of-concept development, commercialization showcase, production testbed and business model establishment (see Innovation District Spotlight 10). This has enabled the hub to develop two new business models – system integration and managed private 5G services – transforming niche infrastructure into mainstream technology solutions. NTT East created a new private 5G market in Japan, generating over $35 million in revenue and securing leading market share. By engaging diverse stakeholders, including the University of Tokyo (a leader in 5G research) and the Tokyo Metropolitan Government (a supporter of corporate digital transformation), the facility has enabled dozens of companies to conduct trials of two-year periods, resulting in breakthrough applications in high- resolution video, robotics and end-to-end private 5G solutions. Source: NTT East.68 Innovation Ecosystems: A Toolkit of Principles and Best Practice 42

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