Investing in Japan - Attractive Sectors
Medical Care
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(702KB) January 2007
Executive Summary
Longer Life Expectancies Driving Growth of the Healthcare Market
Japanese society has been aging more rapidly than other advanced industrialized societies. In 2000, Japan's rate of aging was five times faster than France and three times faster than the U.S. By the year 2050, it is projected that one out of every three Japanese will be a senior citizen. This will expand the need for greater medical and nursing care services, with the market for these services expected to grow to reach 75 trillion yen by 2010.
Dramatic Liberalization in Healthcare Regulations
Historically, the Japanese government allowed only limited private-sector access to the medical and healthcare services industry.
Recently however, the Headquarters for the Promotion of Special Zones for Structural Reform* authorized corporations (K.K.) to operate hospitals in special zones to provide high-quality imaging diagnosis, advanced regenerative medicine, and advanced gene therapy as elective medical services outside the scope of national health insurance coverage.
* Special Zones for Structural Reform: System to eliminate unnecessary regulations within a specially assigned area. Established in July 2002
Partnerships with International Companies
In the public sector, local governments are working with international companies to develop plans for R&D and providing services in the field of medical devices for senior citizens. Some are even looking to build regional research centers aimed at bringing together advanced healthcare technologies.
Attractive Industrial Clusters
In April 2001, the Japanese government launched the Industrial Cluster Plan to enhance the ability of regional areas to develop new technologies and products, and to support the creation and expansion of startup companies. Of the 19 projects implemented in Japan to date, five focused on promoting healthcare, including biotechnology. Industrial clusters fostering the development of startup companies are steadily taking shape through active collaboration between corporate managers, technical engineers and government officials.
Growing opportunities in medical care and welfare market
The healthcare industry refers to a diverse range of business activities linked to health, but can be broadly classified into the medical care and welfare sectors.
Traditionally, the medical care sector has included medical treatment services at hospitals, home medical services, drug manufacture/sales, medical devices, and medical waste and facilities management. Increasingly, new areas such as remote medical consulting services, as well as management of medical and prescription histories by means of electronic medical charts, have come to play a more prominent role in the sector.
The welfare sector includes activities that focus on the needs of elderly and disabled persons. Nursing care for the elderly, in particular, is a relatively new field, which came about as a result of the April 2000 launch of the national nursing care insurance system. In 2005, there were 4.4 million elderly people covered by the system, and the number continues to increase each year. The health care industry in Japan is a promising sector that is expected to continue growing with the trend toward longer life expectancies and the shift from multi-generational to nuclear family units.
