Government resource mobilization and innovation creation in the Japanese healthcare sector: Comparison between pre- and post-japan revitalization strategy implementation

Since the bursting of its bubble economy, Japan has experienced recession for more than 30 years, with little innovation in the healthcare sector. This study examines the effectiveness of government investment in healthcare through the 2013 Japan Revitalization Strategy. The study compares patent applications, medical scientific policies and research and development (R&D) budget in Japan before and after 2013. Additionally, Japanese data are compared with those of other countries over the past 20 years. Survey data from research institutes on newly created medical ventures are also analyzed. Despite active resource mobilization, the average annual growth rate in patent applications and scientific publications in Japanese healthcare reduced after 2013. Furthermore, Japan’s R&D budget remains one tenth of that in the USA. Japanese investment in healthcare innovation remains low. The results of this study suggest that the Japan Revitalization Strategy has not yielded expected outcomes, confirming that growth has been stagnant in the healthcare sector for 20 years. To address this, policymakers should consider increasing R&D investment and fostering stronger collaboration between government, industry and academia to create a more robust innovation ecosystem.