Biotechnology in Japan

Japan views biotechnology as a very important industry, old biotechnology industries such as fermentation, enzyme production, product additives and fermented foods play an extremely important role in Japanese industry. Edition during the past century.

Biotechnology in Japan

Japan views biotechnology as a very important industry, old biotechnology industries such as fermentation, enzyme production, product additives and fermented foods play an extremely important role in Japanese industry. Edition during the past century. Japan also has very strong markets using the achievements of new biotechnology industries such as the pharmaceutical industry as the second largest market in the world, the health care industry under great pressure to reduce costs. , the strong food processing industry desires new products, along with two growing industries, bioremediation and the environment.

Change model

However, Japan believes that they are slipping behind in the extremely important new biotechnology industries such as recombinant DNA (recombinant DNA) technology, genetic engineering and genetic analysis. and lagging behind in supporting industries in these areas. This concern has spread to the highest levels of government in the time when Japan faced a change in many areas: the influence of China flourishing in Asia, the economy. continued deflation, a large state budget deficit and structural problems including weak competitiveness in some sectors.

In the past, Japan tried to select technologies and industries related to the future of the country and build bureaucracy to support this reorientation. However, the government has realized that this model has changed and at the beginning of this century, government departments began to consolidate to create super ministries in an effort to bring about unified methods and appropriate to change the whole government.

Important changes to the biotechnology industry are the decision to promote biotechnology by creating the highest level Biotechnology Strategy Council, improving tax incentives to support research and developing, facilitating clinical testing networks and more openly in accepting exchanges between university researchers and industry.(Japanese academia has two roles: through meeting and publishing activities, they create exchanges between researchers in universities and industry; and through participation. Different government projects, they outlined the technology orientation.)

Current and future markets

In 2002, the Japanese Ministry of Economy, Trade and Industry (METI) published the following information about the current market of new and projected biotech products for the next decade. according to the.

Japan Biotechnology Market 2001/2010

Branch

2001

2010

Speed ​​requires annual development

Human health

536

8400

36%

Agricultural food

367

6300

37%

Biological processes

244

3600

35%

Environment and resources

3

600

80%

Biological tool

140

3100

41%

Bioinformatics

29

2200

62%

Services and other industries

26

800

forty six%

total

1344

25000

38%

Source: METI 2002

Unlike the Japanese industry, the new biotechnology industry, different from the previous food additive and fermentation industry, almost completely focused internally on some of the exports and the following chart breaks down. The industry is a smaller industry with major products in each industry.

Major biotechnology industries and products

Branch

Market share

Product

Human health

40%

Erythropoietin (EPO), a factor that stimulates the endogenous endogenous granulocyte line (G-CSF), monoclonal antibodies (Monoclonal Antibodies), Growth Hormone, Insulin

Agricultural food

27%

corn, functional foods, special health foods

Biological processes

18%

Enzymes for food and detergents

Biological tool

ten%

Biological inducers, analytical equipment

Bioinformatics

2%

Multiply the complementary DNA line

Environment

-

Biodegradable technology

Service

2%

 

Research and development in Japan

Statistics on research and development costs in Japan in the 2002 fiscal year showed that 16,675 Japanese yen was used in research on development, about 3.35% of GDP. The cost is divided according to the following chart and in this total cost of life science accounts for about 10%.

These data show that the main driver of biotechnology in Japan is business with government guidance and university support.

Government direction

At the highest government level, there is the Biotechnology Strategy Council, consisting of Prime Minister, Cabinet Secretary, Minister of Science and Technology Policy, five key ministers on education, agriculture, industry, health and environment and 12 experts selected.

Under Council, there are 4 ministries with huge budget resources related to biotechnology

The Ministry of Economy, Trade and Industry (METI) is generally responsible for Japanese industry and has a modest biotechnology budget to support research institutes such as the Public Science and Technology Institute. NIAIST National Advanced Industry and National Institute of Human Biology and Technology NIBHT. METI also works with industry through intermediaries such as Japan Biological Industry Association and Research Society for Biotechnology.

The Ministry of Education, Culture, Sports, Science and Technology (MEXT) manages universities and has a significant budget to support biotechnology. The ministry also supports many research institutes such as the Research Institute of Physics and Chemistry (RIKEN) and the Research Organization for Information and System ROIS, which has just been established from the National Genome Institute, the National Electrode Institute, National Institute of Informatics and Institute of Statistical Mathematics. The ministry also supports the establishment of about 43 Technology Licensing Organizations to promote the adoption of university-developed technology for industrial use.

MAFF has a relatively small biotech budget to support about 18 agricultural research institutes in Japan. However, the ministry has more control over the entry of agricultural products that are genetically modified grains or vaccines into the country, in consultation with Japanese agricultural cooperatives. The ministry also works with industry through organizations such as Japan Association for Technology Initiative for Agriculture, Forest Products and Fisheries.

The Ministry of Health, Labor and Social Affairs MHLW has a huge budget to support the development of pharmaceuticals, medical devices and diagnostics in Japan and also manage products participating in the Japanese market. . The Ministry cooperates with industry through the Health Science Foundation.

Another management organization that has developed over the past decade is the local government at the district level and the government is working to support the establishment of industrial clusters. At the end of 2004, about 42 biological clusters were established and only clusters in Tokyo, the Osaka and Hokkaido had enough size to create synergies (see the following map). The local government also supports collaboration between local governments and local businesses and sponsors regional institutions, especially the Osaka region, where biotechnology is supported by the Osaka government. Due to the strong pharmaceutical industry.

Reorganize the structure of special fields

Japanese companies: Distribution, Development and Direction

An internal database analysis of more than 2000 biotech companies in Japan shows that biotech companies focus on clusters mainly in Tokyo then to Osaka / Kyoto / Kobe. (Hyogo) with fewer companies in Hokkaido and Nagoya.

The distribution of biotech companies in Japan

In addition, while there has been a continuous establishment of biotech companies during the past 75 years in Japan, there are three important stages of development shown in the following chart: Post-war reconstruction phase In the late 1980s, when new biotechnology industries were first promoted and then in the past few years, more than 50 new companies were established each year.

The establishment of Japanese biotechnology companies

The following chart clearly shows that large-scale companies have shifted to a number of new biotech fields, but in the area of ​​commercial exploitation with less availability, the The company supports spin-offs models or develops reckless projects. New venture projects have recently encountered issues similar to those faced by new biotech ventures in other countries, which are the lack of market interest and limitations. institutional funding. (The model of spin-off company is a company that separates a part of its activities to establish a new independent company. Shares of the new company are divided to existing shareholders of the company.)

The development of spin-off company models and start-up companies

The database of Japanese companies shows that about a quarter of Japanese biotech companies are in the medical and medical industries including medicine, treatment and diagnosis, a quarter of other companies. specialized in instrumentation and laboratory support, 12% of companies specialize in food industry, 10% of agriculture / aquaculture and 9% of environmental sector (see below).

Distribution by industry of Japanese biotech companies

Areas of opportunity

The most obvious area of ​​opportunity for biotechnology in Japan is the pharmaceutical industry. Only this market in Japan is very large, about 6,000 billion yen with about 50% of the market occupied by local companies and more than 20% of the market by local companies with foreign licenses. hold. Because there are so many companies in this industry, the industry has a great competition and has undergone a major transformation in the last decade with more changes expected.

With great pressure to be restrained from health budgets, opportunities for local companies to expand are limited and many pharmaceutical companies are looking for foreign markets to expand and survive. These companies are primarily established in the United States and Europe to increase research and development and participate in new markets and are relying on revenue streams in the Asia Pacific region for immediate growth. Other companies may merge or in many cases disappear.

Another important market in Japan is the medical equipment market with about 3,000 billion Japanese yen, nearly 60% of this market is met by local companies, but there is a large import of medical implants. born. In addition, local developers are interested in tissue recovery techniques in this area as well as developing materials for making artificial organs in the body (directly attached to living tissues) for use in implant.

The in vitro diagnostic market is another major market using biotech products and the market for these products in Japan is about 500 billion yen. While about 50% of immune test products are imported, the test industry is strong in this area and competition to produce new products and processes is fierce, leading to developments. bigger.

In agriculture, the practical application of new biotechnology industries is quite limited and limited to research institutes. There is a great interest in the application of biotechnology to commercially important transgenic plants and a large number of genetically modified plants have been tested.

However, the market is becoming more sensitive to genetically modified foods and this may inhibit developments in this area in the future. Many companies are interested in exploiting biotechnology in the animal industry by developing new vaccines and improved embryo-use techniques, which Japan has a reputation for.

However, once again the sensitivity of the market limits the pace of development and the introduction of new traits. Future biotech developments in the agricultural sector will be controlled by the industry based on the strengths of the industry, mainly in the seed industry, with a focus on rice and vegetables. The most integrated sectors are pesticides, seeds, soft drinks, alcohol and agricultural cooperatives.

The food and processing industry is a strong and highly competitive industry based on imported materials. The industry is formed with a long history of fermentation to produce food with adaptation to other industries rather than expanding existing industries. The market orientation of this industry has led to the rapid adoption of new technologies to develop novel products and is currently focusing heavily on the use of biotechnology to develop health foods. healthy or new and special functions, these foods filled the gap between the food industry and the pharmaceutical industry.

Biotools market (roughly translated: the market of biological tools is the market for software and databases used to analyze and understand biological data) is a new field that receives great support from government, building on the industry specializing in powerful laboratory equipment and electronics in Japan. The industry is relying on an increase in demand for development and is being boosted by the development of nanotechnology, first in electronics, then in medicine and chemistry. medical.

Bioinformatics in Japan is considered to be a lagging field compared to other advanced countries and this has created great support from the government with the establishment of the Genome Science Center at RIKEN, Helix Research Institute with funding from government and industry and the use of important strategic methods is to patent in this area.

The environmental market in Japan is huge at 25 trillion yen and has an annual growth rate of about 4%. This industry has great competition, especially in controlling industrial pollution but there is increasing interest in the application of biotechnology in the treatment of waste and treatment of soil and water pollution. and other related services. It is expected that the main development in the future will be the land and water pollution treatment industry, the pollution prevention and energy saving services and the management and biotechnology can play a role. Useful in applying new methods.

Areas of improvement

With the industry that has a great influence on the adoption and adoption of biotechnology in Japan, the industry is left to government-related organizations to review regulations and support the development of technologies. new for the future, identify weaknesses and promote cooperation between industry and non-industrial sectors.

Lack of discussion at the government level and University about some of the restrictions in Japan include:

- Lack of integration between academic and industrial research, including pharmaceuticals.

- Lack of venture biotech projects in Japan due to the shortcomings of the Japanese system including the lack of cooperation between government agencies, lack of encouragement to develop new and commercial technologies. turning them up, lacking translational research centers and a system that is closely aligned with an inflexible research structure does not promote independence among young researchers.

- A complex and bureaucratic operating system in the health and agriculture / food industries.

- Limits on the extent to which academia in universities can exchange, link with industry.

- Following other countries for recombinant DNA research, gene analysis and diagnosis, gene therapy, anticancer drugs, drug delivery systems and bioremediation technology.

Initiatives and the future

To a certain extent, the Japanese government has begun to address at least some of these issues. The government has invested 500 billion yen in research and development of sciences in life in 2002 and has supported the establishment of 43 Technology Licensing Organizations, which have promoted the transfer of cities. Research achievements from universities for industry. Under this arrangement, the operating costs of these organizations are partially funded, inspection fees for exemption and small or medium-sized businesses receive partial financial support when they are organized. Licensing Technology transfers licenses to them. In this direction, more than 1,000 joint venture companies based on technology developed by universities were established before April 2005 and many of these companies specialize in biotechnology.

Support systems for venture biotechnology projects have also been improved with the consolidation of the sets mentioned at the beginning of this article and with the establishment of the Biotechnology Strategy Council. However, historically, Japan has not created much incentive to support the development of new technologies in companies and only recently created incentives in this area, there is much encouragement. more for small and medium enterprises compared to large businesses. The government's main incentive is to use direct funding for research and development projects rather than offering tax incentives.

In the field of governance, there has been a strong incentive for changing the administration of the pharmaceutical and medical equipment industry. The Japanese health care system, especially the pharmaceutical sector, is undergoing a major evolutionary period with legislative changes to create more consistency in the operations of American and European partners. Europe uses, while at the same time, protecting against the future weakness of the domestic pharmaceutical industry. Under these changes, bureaucratic obstacles will be removed so that foreign companies are interested in the Japanese market and the responsibility to place on the shoulders of domestic companies will be heavier in offering a system. A more active support system to introduce cheaper and more effective health care systems. Many issues continue to be addressed in implementing these regulatory changes and these issues will become more apparent when legal changes are made.

There are still limits that academia can link, exchange with industry, although the government has great determination in facilitating these exchanges. Previously, National University professors were prohibited from holding concurrently as executive directors in private schools. Because of this, a University professor cannot transfer to a private enterprise along with the project he is leading, to ensure that the industry can make the best use of technology transfer. Obstacles are still valid through the National Public Law. As the government pushes to reduce the limits of interaction between universities and industry and is criticized by professors about these restrictions, there has been a growing trend in recent years. Use a more flexible method to allow university professors to work in the industry.

For the weaknesses in competing with other countries in the biotechnology industry, the Japanese government, at the national and local levels, can only participate on the fringes by financing projects. and supporting certain technologies in the hope that the industry with greater strengths will see opportunities and put into use biotechnology.

One of these initiatives is Genome Bay, which intends to link genome research labs in the Tokyo riverfront into a collaborative organization that brings together businesses, academia and publicity. . Participating centers include Tokyo University, Kazusa DNS Research Institute, RIKEn Genome Science Center in Yokohoma, IMSUT and CBRC Computer Biology Research Center. Support organizations include Mitsubishi Chemical, Mochida Pharmaceutical, Tokyo Metropolitan Government, Tokyo University and Tokyo Chamber of Commerce and Industry.

Japan recognizes that biotechnology offers a lot of opportunities for both the society and the industry of the country in the future and has begun to find ways to take advantage of these opportunities at times of great change. domestic and regional. The establishment of the Strategic Biotechnology Council led by the Prime Minister and including top ministers as well as outstanding business and research representatives is a clear demonstration of this. How this Council addresses issues in key areas of government, in academic activities and in the industrial sector will foster further development of biotechnology in Japan in next year.

Thanh Van (According to Dr. Maurice Venning, Valutech & Dr. Takao Yukawa, Dong Nai Department of Science and Technology)