Recently, I traveled to Tokyo for the first time in a while to attend UnBoxed Tokyo 2025. The next day, James and I went to a well-known omelette rice restaurant in Meguro to have lunch with Yamaguchi, who had previously worked at our company for a short period. One of the topics that came up during our conversation was the term “Tokyo Brain.” (laughs)

I felt that the expression “Tokyo Brain” was very apt, and one of the aspects that particularly stood out to me was the “efficiency-driven” mode. When I travel from Azumino to Tokyo, I’m struck by the short intervals between trains on the Yamanote Line and the lack of inefficiencies in service operations. It’s amazing to see how the social infrastructure in Tokyo is optimized to a level unmatched anywhere else in the world. (Of course, due to the aging population, digitalization is progressing more slowly than in emerging countries, but this is primarily in the analog domain.)

For example, the Tokyo train system. The intervals between trains on the Yamanote Line and subway are just a few minutes apart, and it’s taken for granted that trains run on schedule. This precision is a symbol of Tokyo’s efficiency and fosters a sense of “no waste of time” in daily life. However, in Nagano, trains are not commonly used, and most people rely on cars for transportation. When I lived in Nagano City, I realized that I didn’t experience the same “efficiency-driven” mindset that is prevalent in Tokyo. With car travel being more common, flexibility and freedom were emphasized more than efficiency.

Moreover, looking back on my time as a salaryman in Tokyo and in the early years of founding the company, I realized how much I was influenced by the efficiency-driven service infrastructure in society. For example, I used to get irritated when trains were delayed by 30 minutes, and the company culture of evaluating business people based on KPI achievements reflected the same efficiency-driven mindset. When I spent a few years in Nagano City after starting my business, I didn’t encounter the same demand for efficiency as in Tokyo, and it made me realize that the more the social infrastructure demands high efficiency, the more that expectation unconsciously extends to businesses and individuals.

What is interesting here is the common corporate mindset of moving operational work to regional branches to take advantage of cheaper labor. However, based on my understanding of “Tokyo Brain,” I believe that operational work, which requires efficiency and accuracy, actually functions better in urban areas. On the other hand, environments that foster creativity and free thinking might be better suited to regional areas rather than Tokyo.

This is the opposite of the traditional view of headquarter and branch functions. Typically, companies think, “Operational work is better done in the regions due to lower labor costs, and creative work is best done in urban areas.” But I’ve realized that, alternatively, it is possible to view it as, “Efficiency-driven work is suited to urban areas, and creative work is suited to regional areas.”

For instance, some companies have moved their headquarters functions from Tokyo to regional areas with the goal of freeing employees from the efficiency-driven mindset and encouraging creative thinking. This has led to cases where remote work and flexible working hours have been promoted in regional areas, resulting in increased employee satisfaction and productivity. By moving to the regions, employees experience “freedom of thought” and “flexible working styles” that are difficult to experience in urban areas, and this has led to new innovations.

Furthermore, with the rise of remote work, it is now possible to implement diverse working styles without having to move from the regions to the city. Companies are beginning to utilize the natural environment and open space in regional areas, providing a place for employees to focus on creative work.

An example that is highly relevant here is Sega’s initiative. Sega has set up a development base in Sapporo, where they develop games, design, and program. The charm of this base lies in the natural environment and quality of life unique to Sapporo. The fresh food and delicious meals in Sapporo, as well as the rich natural surroundings, support the physical and mental health of the development team, promoting creative thinking. (Reference: Interview with Sega Sapporo Studio Director Seiwa: The Reason Sega Established a Studio in Sapporo Due to Its Livability)

In this way, the strength of creative hubs in regional areas lies in providing an approach that differs from the efficiency-driven urban areas, fostering more diverse and innovative outcomes. By relocating headquarters functions to regional areas, companies can expand new value creation possibilities and provide an environment where employees can easily engage in free thinking.

Masaki “Mark” Iino
Founder & CEO
SOPHOLA, Inc