Known for its ageing population as well as its disruptive technology, Japan is compelled to invest in MedTech
With a quarter of its nationals over 65 years old, Japan’s is the oldest world population; hence, the resulting demographic gap is a constant preoccupation for its government, as birth rates are steadily low and immigration is difficult due to cultural and administrative barriers. The ‘generational’ challenge has reached a key level: while in the foreseeable future a growing number of elderly people will require more care, there will just not be enough caretakers.
As the healthcare system is facing ever-stronger financial and social pressure, the development of innovative MedTech alternative solutions is critical to address the issue. Which is why research in fields including artificial intelligence and virtual reality is topping the priority list of innovators, as well as corporations and investors.
According to a recent McKinsey report, MedTech may not only help solve healthcare problems but also induce more competitivity and productivity in the country. After all, Japan is the third largest medical device producer globally, though it is still struggling to be among the most innovative technology-driven ones. Capital is available – Japanese companies hold an estimated US$ 2,4 trillion in cash, just waiting to find the right investment.
Over three-quarters of the top 20 largest companies in Japan are already investing or making acquisitions in the sector. In the last few years, alongside the major automotive industry giants, blue chip corporations including Canon, Konica and Nikon have invested billions in healthcare technology.
While the market has been moving, other stakeholders are pushing forward their Research and Development policies in order to build resources for the upcoming MedTech revolution. Initiatives like Japan Biodesign, a medtech fellowship program which gather universities to support aspiring innovators, and the Japan Organization for Medical Device Development (JOMDD), a private venture firm and incubator focused in medtech projects, are only two examples of the efforts that many actors are now putting into the sector.
Yet, there are some challenges the MedTech revolution has to overcome before it turns into reality. Most importantly, Japan, where failure is not an option, must significantly foster and stimulate entrepreneurial spirit, without which no new business can survive and succeed.
MedTech is one of the main topics of discussion at SIGEF, the Social Innovation and Global Ethics Forum, which will take place in Tokyo on 18-19 September, 2019. Want to know more about this game changing event? Click here to register!