Japan Life Science Industry Report 2025

Analysis of Japan's life science industry: biocommunities, facilities, market dynamics, and investment opportunities

Table of Contents

Executive Summary

Japan's life science ecosystem spans regenerative medicine, medical devices, bio-manufacturing, and pharmaceutical research. The Bioeconomy Strategy (2019, revised 2024) targets world-leading bioeconomy by 2030, with a projected global market size of 200-400 trillion yen by 2030-2040.

Japan's pharmaceutical trade deficit reached 4.6 trillion yen in 2022, highlighting competitiveness challenges. The country's largest biomedical cluster (KBIC) employs 12,700 people across 363 organizations, compared to Boston's 116,000 employees and 1,700+ companies, indicating scale gaps relative to leading U.S. clusters.

200-400
Trillion Yen Global Market (2030-2040)
47
GTB Organizations
1,500
Biotech Companies in GTB
980K
Life Science Researchers (2023)

1. Japan's Bioeconomy Strategy

1.1 200-400 Trillion Yen Global Market Target by 2030-2040

Japan's Bioeconomy Strategy (2019, revised 2024) targets world-leading bioeconomy by 2030. The strategy focuses on bioprocess incorporation, environmental burden reduction, supply chain strengthening, sustainable food systems, global biopharmaceutical rollout, and increasing healthy life expectancy through medical and healthcare cooperation.

McKinsey Global Institute Analysis (2020) projects global bioeconomy market size of 200-400 trillion yen by 2030-2040. The U.S. estimates bio-manufacturing could replace one-third of global manufacturing within ten years, with market size potentially reaching $30 trillion.

1.2 Global Competition Intensifies as Major Economies Launch Bioeconomy Strategies

United States: Executive Order on Advancing Biotechnology and Biomanufacturing Innovation (September 2022). Bio-manufacturing could replace one-third of global manufacturing within ten years. Market size potentially reaching up to $30 trillion. "Bold Goals for U.S. Biotechnology and Biomanufacturing" announced in March 2023.

European Union: Focus on circular bioeconomy based on biomass. Regulatory strategies including Renewable Energy Directive (RED III).

China: 14th Five-Year Plan for Bioeconomy Development (2022). Goal: Achieve comprehensive capability at world-class level by 2035. Key areas: Medical/healthcare and green/low-carbon emissions.

United Kingdom: Synthetic biology positioned as key technology. "National Vision for Engineering Biology" published in 2023.

2. Biocommunities Across Japan

2.1 Four Global Biocommunities Lead National Network

Japan has established a network of certified biocommunities to strengthen the innovation ecosystem. Four global biocommunities include Greater Tokyo Biocommunity (GTB), Biocommunity Kansai (BiocK), Hokkaido Prime Bio Community, and Fukuoka Biocommunity.

Regional biocommunities include Tsuruoka Bio Community, Nagaoka Bio Community, Tokai BioCommunity, and Okinawa BioCommunity. Gunma Green Innovation Platform operates at the nurturing stage.

2.2 KBIC Leads with 12,700 Employees as Clusters Trail U.S. Scale by 9x

Japan's largest biomedical cluster (KBIC) employs 12,700 people across 363 organizations, compared to Boston's 116,000 employees and 1,700+ companies. This 9.1x scale gap reflects the government-driven cluster formation model versus autonomous U.S. ecosystem development.

Cluster Name Location Established Scale & Description Website
KOBE Biomedical Innovation Cluster Kobe City 1998 Japan's largest biomedical cluster with 12,700 employees and 363 member/partner companies and institutions Website
KING SKYFRONT Kawasaki City 2011 Open innovation hub with 5,200 people and 70 institutions (MEXT) Website
Shonan Health Innovation Park - 2018 Private-sector initiative with 2,500 people and 150 companies (Takeda Pharmaceutical) Website
Tsuruoka Science Park Yamagata Prefecture 1999 Alliance between Keio University's Institute of Advanced Biosciences and Yamagata prefecture cities. 22 organizations including research institutes, large companies, and startups Website
Nakanoshima Qross Osaka Prefecture & City 2019 (Main building: June 2024) International Center for Future Medicine established by 21 private companies and Osaka prefecture Website

2.3 Non-Geographic Networks Support Innovation Across Regions

DSANJ (2005), LINK-J (2016), and iD3 Booster (2017) operate without geographic concentration, matching academic research with pharmaceutical companies and accelerating translation of basic research into medicines.

3. Greater Tokyo Biocommunity (GTB)

3.1 47 Organizations Coordinate World's Premier Innovation Center

GTB's vision targets making the Tokyo Metropolitan Area the world's premier innovation center. Network organization: Japan Bioindustry Association (JBA). Total organizations: 47 (as of January 2024).

GTB ranks second globally in papers cited, patents filed (~5,000), and papers published (~35,000), trailing only Boston among 12 major metropolitan areas including London, Paris, Stockholm, Munich, Singapore, San Diego, Copenhagen, Basel, and Tel Aviv.

3.2 Biotech Employees Lead Global Concentration

GTB's GDP reached 1,828 billion USD (2018), largest among major cities. Biotech industry employs 347,000+ people, highest globally. Member companies: 1,500 biotechnology organizations covering all nine priority areas of Japan's Bioeconomy Strategy.

Approximately 50% of Japan's biotech startups are located in the Tokyo area, making it the leading region for startup formation and growth.

3.3 690 Billion Yen Private Investment Over Three Years (2021-2024)

GTB Bio-innovation Promotion Center investments (as of June 2024) include 175 billion yen over 7 years (2023-2030) for R&D facilities and 230 billion yen in government subsidies for 12 production sites and HQ.

Category Investment
R&D (24 Countries Project) Up to 200bn yen / 10 years (2021-2030)
Venture Support (Gov't) ~175bn yen / 7 years (2023-2030)
Production Facilities 12 production sites and HQ, Gov't subsidies ~230bn yen
Private Investment Total ~690bn yen / 3 years (2021-2024)

3.4 Strategic Locations Drive Ecosystem Formation

GTB promotes ecosystem formation from eight strategic locations: Tsukuba (world-class science city), Kashiwanoha (international innovation campus), HOTS HILL (largest academia concentration), Nihonbashi (international life science business hub), Chiba/Kazusa (cutting-edge genomic research), Shonan (world's largest life science research clusters), Yokohama (major biotechnology hub), and additional strategic areas.

3.5 134,355 Tsubo Leasable Lab Space Commands $49-$54 per sqm in Tokyo CBD

Greater Tokyo offers 134,355 ('000 tsubo) of leasable wet lab space. New construction lab rents in Tokyo CBD range $49-$54 per sqm. Life science researchers reached 980,000 in 2023, up from 680,000 in 2003.

Lab Space Distribution by City in Greater Tokyo

Life Science Researchers Trend (2003-2023)

4. Kansai Biocommunity (BiocK)

4.1 16 Subcommittees Drive Open Innovation Across Bio-Fields

Biocommunity Kansai (BiocK) is recognized as "Global Biocommunity" by Cabinet Office. Vision: Spreading a bio-first approach to build a Global Biocommunity and realize a sustainable society. Goal: Creating an ultimate ecosystem for bio-fields in Kansai. Keyword: Shifting from "Accumulation" to "Collaboration".

Network Organization: Kinki Bio-Industry Development Organization, Urban Innovation Institute. Base Location: Grand Green Osaka (TBD). 16 active subcommittees promote open innovation across biomethane, bioplastics, mental health, biofoundry, smart cultivation, and startup support.

Subcommittee Name Lead Organization Focus Area
Biomethane Subcommittee Osaka Gas Co., Ltd. Carbon neutralization of energy
Plastic Subcommittee Saraya Co., Ltd. Bioplastic development
Mental Health Subcommittee Shionogi & Co., Ltd. Improving social productivity
Personal Data Subcommittee NTT West Corporation Use of personal data in healthcare
Wellbeing Subcommittee on Aspergillus Gekkeikan Sake Co., Ltd. Health and cosmetic effects research
Life Style DX Subcommittee Suntory Global Innovation Center Digital healthcare lifestyle updates
Toilets Subcommittee TOTO Ltd. Physical wellbeing support
Tea and Frailty Research Subcommittee Kyoeiseicha Co., Ltd Health care & food technology innovations
Smart Cultivation Subcommittee Yanmar Holdings Co., Ltd. Biotechnology in primary industry
Wood and CLT with DX Subcommittee TAKENAKA CORPORATION Large-scale wood construction
Forest Environment Subcommittee C-TECH CORPORATION Forest conservation and biodiversity
Biofoundry Cluster Subcommittee Bacchus Bio innovation Co., Ltd. Biomanufacturing value chain
Analysis and Measurement Technologies Subcommittee Shimadzu Corporation Promoting bioindustry through analysis
Space Biological Experiments Subcommittee IDDK Co., Ltd. Space biological experiment platform
Biotechnology by Sound Subcommittee Onkyo Corporation Sound applications in biotechnology
Start-up Subcommittee Sumitomo Mitsui Banking Corporation Support for startups in Kansai

4.2 Doshomachi Pharmaceutical Heritage Supports 25% Manufacturing Share

Doshomachi Area (Osaka) dates to Edo period as historical "Pharmaceutical Town," housing numerous pharmaceutical companies and headquarters of Japan's leading pharmaceutical firms.

Manufacturing sector accounts for ~25% of economy (vs. 22% nationally). ~30% of globally competitive niche top companies concentrated in Kansai. ~20% of Japan's universities, including world-class institutions, located in Kansai.

4.3 Six Major Bio-Related Hubs Concentrated Within 50km Radius of Osaka

All hubs within ~50km radius of Osaka, creating dense innovation network with complementary strengths across drug discovery, regenerative medicine, medical devices, and bio-manufacturing.

4.4 Bio-Manufacturing Excellence

5. Regenerative Medicine Facilities

5.1 38 Trillion Yen Global Market Projected by 2050

Market size projections: Domestic market: 2.5 trillion yen by 2050. Global market: 38 trillion yen by 2050.

Key challenges include technical issues related to safety and manufacturing technology, high costs associated with research and development, and need for further enhancement of basic research. Applications span regenerative medicine, disease cause elucidation, and new drug development.

5.2 Yamanaka's 2006 iPS Discovery Wins 2012 Nobel Prize

Professor Shinya Yamanaka at Kyoto University first reported iPS cell technology in 2006. Awarded Nobel Prize in Physiology or Medicine (2012). Technology enables pluripotent stem cells created from somatic cells, capable of differentiating into various tissues and organs, with capacity to proliferate almost indefinitely.

5.3 Key Facilities

Center for iPS Cell Research and Application (CiRA), Kyoto University operates ~30 research groups with ~500 researchers. Nakanoshima Qross (Osaka) opened main building in June 2024 as International Center for Future Medicine, established in 2019 by 21 private companies and Osaka prefecture.

Facility Name Location Established Key Information Website
Center for iPS Cell Research and Application (CiRA), Kyoto University Kyoto 2010 ~30 research groups, ~500 researchers. Purpose: Medical application of iPS cells. Facilities: Animal Research Facility, Drug Discovery Technology Development Office, Common Equipment Management Office Website
CiRA Foundation Kyoto - Supports iPS cell research and applications Website
Nakanoshima Qross Osaka 2019 (Main building: June 2024) International Center for Future Medicine. Established by 21 private companies and Osaka prefecture. Facilities: Future Medicine MED Center, Future Medical R&D Center, Nakanoshima International Forum. One-stop support for regenerative medicine supply chain Website
Graduate School of Engineering, The University of Osaka Osaka - Research Base for Cell Manufacturability, TechnoArena. Focus: "Kotozukuri" (manufacturing) in bio-products. Activities: Manufacturing technology development, Human resource development, Standardization and regulatory strategy development -
Graduate School of Medicine, The University of Osaka Osaka - TheCenter of Medical Innovation and Translational Research (CoMIT). Primary Research Fields: Immunology and regenerative medicine. Facilities: Institute of Large Laboratory Animal Sciences, Operating rooms and imaging analysis rooms -
Kobe University Hospital International Clinical Cancer Research Center (ICCRC) Kobe - Location: Kobe Biomedical Innovation Cluster (KBIC). International hub for research and education. Related Facilities: "hinotori™" Robotics Training Center, Medtech Innovation Center (MIC) -
International Advanced Medical Center Kobe Kobe - Creating healthy "life" for people. Sub-sections: Development Center (biodesign process), Dental Pulp-related Business, 8K Imaging, Perioperative Medical Business -
Center for Medical Transformation (CMX), Kobe University Kobe - Six research groups supported by two platforms (Imaging Research, AI & Digital Health Research). International collaborations with University of Washington, University of Oslo, University of Pittsburgh, Boston Children's Hospital, UT Southwestern Medical Center Website

5.4 Support Network

Kansai Regenerative Medicine Industrial Consortium (KRIC)

5.5 Key Projects

CiRA Foundation 'my iPS Project'
Goal: Develop closed automated culture system through joint research. Target: Reduce manufacturing costs of autologous iPS cells. Timeline: Aim to start clinical trials using autologous iPS cells by FY2028. Cost Target: Provide autologous iPS cells for ~1 million yen. Challenges: Development of closed culture system, establishment of suitable culture protocols, development of non-destructive quality inspection methods.

CUORIPS Inc.
Location: Osaka and Tokyo. Achievement: Filed application for manufacturing and marketing approval (April 2025). Product: World's first iPS cell-derived regenerative medicine product (myocardial cell patch). Technology: Allogeneic cell therapy product primarily composed of cardiac cells (iPS cardiomyocytes) derived from human iPS cells, processed into sheet form for transplantation.

VCCT Inc. (Kobe)
Project: Environmental Improvement Project for Social Implementation of Regenerative/Cell Medicine and Gene Therapy. Focus: Retinal regenerative medicine. Activities: Establishing therapy chain and medical platform for domestic and international dissemination.

6. Medical Device Industry

6.1 Kansai Hosts Five Major Global Medical Device Manufacturers

Kansai region leverages diverse manufacturing technologies and strong R&D capabilities to promote new entries and development in the medical device field. Major manufacturers include NIPRO CORPORATION, OMRON CORPORATION, SHIMADZU CORPORATION, SYSMEX CORPORATION, and ICON.

6.2 17-Organization Support Network Facilitates Cross-Regional Collaboration

Geographic distribution: Kansai hosts significant share of companies with high global market share. Concentration of excellent companies in niche sectors. Companies dealing in parts and materials becoming more important in supply chain.

Major Global Medical Device Manufacturers in Kansai:

6.3 PMDA Kansai Branch Relocated to Nakanoshima Qross (December 2024)

PMDA Kansai Branch functions: Relief Services for Adverse Health Effects, Product Reviews (Ensuring positive Benefit-Risk Balance), Post-marketing Safety Measures. Services: Respond to inquiries from academia and companies regarding early stages of development. Mission: Help improve public health in Japan.

6.4 Kansai Medical Device Industry Support Network (KMSN)

KMSN (nickname: "Kamesan Net") operates as network of 17 industrial support organizations. Established to support manufacturing companies, venture companies, and businesses entering medical device industry.

Main activities: Training and sharing of support human resources/coordinators, Hands-on support across regional borders, External promotion/overseas expansion support, Promotion of medical innovation through fusion of different fields. Services include: Expert consultation for commercialization, Support for concept and product evaluation, Support for prototype development, Alliance support with manufacturing and sales companies, Support for exhibition participation, Project development program aimed at overseas expansion.

6.5 Key Supporting Organizations

Osaka Chamber of Commerce and Industry - Medical Device Industry Forum
Target: Nationwide. Status: One of the largest nationwide medical-industrial collaboration platforms in Japan. History: Over a quarter of a century of comprehensive support programs.
Activities: Annual meetings (7 times per year): ~40 medical field needs presented by doctors and researchers. Opportunities for meetings with doctors for interested companies. Building support system at every stage, from identifying needs to market expansion. Cooperative relationships with global medical device development hubs (Minnesota, Europe, Singapore). Partnership with MEDTECH ACTUATOR (Australia-based global healthcare startup accelerator).
Achievements (as of March 2025): Commercialization Achievements: 74 Cases. Cumulative Matching Achievements (Since 2003): Number of Proposed Issues: 999, Number of Matches: 3,446, Number of Progressions After Meetings: 498
https://www2.osaka.cci.or.jp/mdf/

Advanced Science, Technology & Management Research Institute of Kyoto (ASTEM) - Kyoto Lifetec Innovation Support Center (KLISC)
Target: Within Kyoto City. Location: Clinical Research Center for Medical Equipment Development at Kyoto University Hospital.
Activities: Connecting industry, academia, and government to support medical device and pharmaceutical development.
Grant Program: Kyoto-based Innovative Medical Technology Research and Development Grant Program - Supports researchers at universities and SMEs in Kyoto City. Focus: Developing new medical devices and pharmaceuticals.
https://www.astem.or.jp/

Foundation for Biomedical Research and Innovation at Kobe (FBRI) - Support for Commercialization of Medical Devices
Target: Companies in Kobe City.
Services: Consultations on medical device business matters, Development support, Regulatory strategy, Market development research, Support for commercialization and international expansion.
Resources: Dedicated coordinators and external advisors.
Trade Shows: Joint Exhibition at International Trade Shows - Medical Fair Asia (Singapore), Medical Fair Thailand. Support from preparation to follow-up.
https://www.fbri-kobe.org/english/

7. Bio-Manufacturing Facilities

7.1 101 Papers Represent 40% of Japan's Bio-Manufacturing Research Output

Bio-manufacturing involves production of substances using cells from microorganisms, plants, and animals, leveraging genetic technologies. Applied across chemical materials, fuels, pharmaceuticals, animal fibers, and food sectors.

Kansai's research output: 101 papers (40% of Japan's total of 250 papers). Share per GRP: ~2.5 (highest in Japan, vs. ~1.0 for Kanto). Traditional strengths: Fermentation and brewing industries. Biofoundry Cluster Subcommittee led by Bacchus Bio innovation promotes biomanufacturing value chain development.

7.2 Key Hubs Drive AI Control and 3,000L Fermentation Capacity

Organization/Facility Location Focus/Technology Facilities & Capacity Activities
Chitose Laboratory Corporation, Kyoto University - Production Process Development Center Kyoto Development of AI Control Technology and Demonstration of its Application 30L scale fed-batch / Parallel cultivation Examination of Process Optimization and Automated Control
Kobe University - DBTL Cycle Smart Cell Development Center Kobe Biofoundry Laboratory - High-Speed Microbial Breeding Platform. Combining Digital Technology and Biotechnology Build (High-Throughput Microbial Construction System, Long-Chain DNA Synthesis System), Design (Information Analysis, Communication Space, Knowledge Server Space), Test (Automated Preprocessing System for Metabolome Analysis, High-Speed/High-Precision Metabolome Analysis System, High-Throughput Evaluation System), Learn (Continuous improvement cycle) High-Speed Microbial Breeding Platform development
Research Institute of Innovative Technology for the Earth (RITE) - Bio-Manufacturing Platform - "Smart Cell Creation Technology" and "RITE Bioprocess". Focus: Corynebacterium Process: Cultivation and Reaction → Cell Separation → Concentration → Crystallization → Purified Sample. Raw Materials: Non-food sugar raw materials Research and Development, and Practical Production Technology Development
Green Earth Institute - Production Demonstration Center - Operation of fermentation production processes Fermentation tanks with maximum capacity of 3,000L Verification of up-scaling, Examination of process conditions for cultivation, pretreatment, and purification, Development of Bio-science Specialists through courses with practical exercises
Osaka Research Institute of Industrial Science and Technology Osaka End-to-End Support from Research and Development to Manufacturing - Support for New Entrants and Business Development. Services: Technical consultation and collaborative research in bio-related fields
Kyoto Municipal Institute of Industrial Technology and Culture Kyoto Separation and Purification, Analysis and Measurement Open Lab for Advanced Bio-related Equipment Human Resource Development through Workshops, Support for New Entrants
Osaka Institute of Technology & Osaka University - Production Process Development Center Osaka Small-Scale Process Development and Practical Verification Development of Bio-Production HR Screening - Small Scale 0.25L X 24 Parallel Fermenters, Education / Small Scale Fed-batch Cultivation Use 1L X 12 Parallel Fermenters Small-scale process development and verification

7.3 NEDO Bio-Manufacturing Project Supports Foundation Building

Organization: NEDO (New Energy and Industrial Technology Development Organization) - National research and development agency. Foundation: Building foundation for bio-manufacturing industry.

Support areas: Collecting and converting unused resources into raw materials, Developing modification technologies (e.g., microorganisms), Advancing production, separation, purification, processing technologies, Necessary systems and standards for social implementation. Active participation: Companies and organizations in Kansai actively participating. Goals: Demonstrate technologies and social systems for diverse raw materials and products, Promote conversion to bio-manufacturing processes, Facilitate social implementation of bio-manufacturing products, Strengthen Japan's industrial competitiveness, Address social issues.

7.4 Expected Advanced Bio-Manufacturing Projects

R&D Items and Companies:

7.5 Bio-Manufacturing Manufacturing Flow

Key stages: (1) Development of improving technology for industrial microorganisms - DBTL Cycle (Design, Build, Test, Learn), AI analysis, Improving microbial development efficiency. (2) Procurement of unused resources, demonstration for conversion into raw materials - Unused resources: Discarded clothing, Food residual, Used paper and pulp, Municipal waste/sludge. Pretreatment and raw material conversion: Saccharification, oilification. Stable supply of raw materials through domestic supply chain. (3) Development and demonstration of production technology using microorganisms - Culture method development, Scaleup technology development, Scale-up and manufacturing cost reduction. (4) Development and demonstration of separation, purification and processing technology - Cell separation, Concentration and purification (Yield improvement, Waste liquid reduction), Reaction (Treatment process development). (5) End product - Changes in LCA evaluation, product labeling.

8. Real Estate Market Analysis

8.1 Tokyo Grade A Vacancy Drops to 3.6% as Rents Spike 2.7% Q-o-Q

Tokyo Grade A vacancy rate: 3.6% (down 0.6 pp. q-o-q). Grade A rent: Significant spike of 2.7% q-o-q. Average achievable rent: ~37,450 JPY/tsubo (Grade A). Forecast: Grade A rents to increase by 6.0% over next 12 months. Net absorption: Grade A 105,000 tsubo (new quarterly record). New supply: 110,000 tsubo across 10 buildings, ~80% occupancy.

Osaka Grade A vacancy rate: 4.0% (down 0.9 pp. q-o-q). Grade A rent: Significant spike of 1.9% q-o-q. Average achievable rent: ~26,000 JPY/tsubo (Grade A). Nagoya Grade A vacancy: 2.3% (down 1.5 pp. q-o-q) - Below 3% threshold for first time since Q1 2021.

8.3 Office Fit-Out Costs Rise 8.0% Year-Over-Year

Most expensive cities: Tokyo (1,092,102 JPY/tsubo), Osaka (1,069,700 JPY/tsubo), Nagoya (1,047,298 JPY/tsubo). Construction Cost Index: Rose 8.0% year-over-year (significantly outpacing 2.7% CPI growth). New Overtime Cap Regulation (April 2025): Aiming to reduce working hours by 20%, extending relocation periods by 1.5 to 2.1 times. Osaka Expo Impact: Starting April 2025, costing around JPY 334 billion (JPY 100 billion cost overrun), resulting in constrained labor conditions and higher construction cost growth.

8.4 Regional Cities Show Mixed Vacancy Trends

Vacancy rates declined in 7 cities: Yokohama (-0.7 pp.), Saitama, Kanazawa (-1.3 pp. to 13.0%), Takamatsu (-0.7 pp.), Fukuoka (-0.7 pp.), Sendai, Sapporo. Yokohama: Vacancy rate fell by 3.6 pp. over last 12 months (largest decline among major cities). Kanazawa: Steepest decline in vacancy (1.3 pp. q-o-q). Rents increased in 8 cities, with Saitama showing most significant increase (+0.7% to JPY 20,000/tsubo).

8.2 185% Growth Forecast as Rental Lab Stock Expands 480,000 sqm by 2030

Rental lab stock trends (Japan): Historical growth (2010-2020): +110,000 sqm (+73%). Forecast growth (2020-2030): +480,000 sqm (+185%). Total leasable space: 134,355 ('000 tsubo) of wet labs in Greater Tokyo.

U.S. market comparison: Occupied rental spaces for R&D (life science only) increased by +58% vs 2014Q4, while office spaces decreased by -3% over the same period, demonstrating strong growth in life sciences real estate demand. Market definition includes rental spaces for scientific experiments and R&D activities, plus conversion properties explicitly accommodating laboratory use.

9. Investment Trends

9.1 Greater Tokyo Life Sciences VC Funding Peaked at $700M in 2021

Trend (2019-2024): 2019: ~$100 million, 2020: ~$200 million, 2021: ~$700 million (peak), 2022: ~$350 million, 2023: ~$150 million, 2024: ~$140 million. Source: PitchBook Data, Inc., CBRE Research Q1 2025.

9.2 U.S. Lab Leases and VC Deployment

U.S. VC Deployment (Millions USD): 2014: ~$13,000 million, 2018: ~$31,000 million, 2020: ~$55,000-56,000 million (peak), 2021: ~$40,000 million, 2022: ~$26,000 million, 2023: ~$30,000 million, 2024: ~$26,000 million, 2025 (pace): ~$26,000 million. U.S. Lab Leases (# of Deals): 2014: ~220 deals, 2019: ~350 deals, 2020: ~380 deals, 2021: ~530 deals (peak), 2022: ~380 deals, 2023: ~390 deals, 2024: ~320 deals, 2025 (pace): ~350 deals.

9.3 AI Natives in Biotech VC Deals Reach 15% Share in 2024

"AI natives" share of all U.S. biotech VC deals: 2012: 0%, 2014: ~1%, 2016: ~2%, 2018: 4%, 2020: ~4.5%, 2022: ~9%, 2024: ~15%. Trend: Gradual increase from 2012-2020, followed by steep acceleration from 2020-2024.

9.4 JETRO Subsidy for Projects to Stimulate Direct Investment in Japan

Purpose: Support introduction and expansion of innovative technologies and business models by foreign and foreign-affiliated companies. Provide subsidies for feasibility studies related to investment, business expansion, and collaboration with Japanese companies.

Target Companies: 1. Foreign-affiliated companies in Japan (independently or in collaboration with Japanese companies/research institutions), 2. Japanese companies (in collaboration with foreign companies or foreign-affiliated companies in Japan). Target Fields: Manufacturing, healthcare, green technologies, digital-related fields (mobility, fintech, wholesale/retail). Emphasis: Semiconductors and microelectronics, life sciences, decarbonization sectors. Project Requirements: Foreign-affiliated company in Japan or foreign collaboration partner must have project for investment, business expansion, or collaboration in Japan. Implementation must promote investment or creation of collaborative partnership projects in Japan.

Subsidy Amount: Up to ¥20 million per project. Small and medium-sized enterprises: Subsidy of up to 1/2 of eligible expenses. Large enterprises: Subsidy of up to 1/3 of eligible expenses.
Contact: Invest and Alliance Division, Innovation Department, JETRO
Website: https://www.jetro.go.jp/en/invest/
TEL: +81-3-3582-5644

9.5 Recent Major Investments

Rakuten Medical

Raised $100 million in fundraising round (WSJ report)

GTB Private Investment

Total ~690bn yen / 3 years (2021-2024)

Government Support

R&D: Up to 200bn yen / 10 years (2021-2030), Venture support: ~175bn yen / 7 years (2023-2030), Production facilities: ~230bn yen (12 production sites and HQ)

10. Key Facilities and Incubation Centers

10.1 Incubation and Lab Facilities in Kansai

10.2 EXPO 2025 Osaka, Kansai, Japan

Dates: April 13 to October 13, 2025

Theme: "Designing Future Society for Our Lives"

Biotechnology Exhibitions:

12. Market Outlook

12.1 1 Trillion Yen Budget Allocation Supports Bioeconomy Strategy Growth

Government support: Bioeconomy Strategy with 1 trillion yen budget allocation. Research excellence: World-class research institutions including CiRA (30 research groups, 500 researchers). Industry clusters: Well-established biocommunities (GTB: 47 organizations, BiocK: 16 subcommittees). Infrastructure: Growing lab space supply (185% forecast growth by 2030). Market demand: Aging population driving healthcare needs.

12.2 Challenges

12.3 38 Trillion Yen Global Regenerative Medicine Market by 2050

Regenerative medicine: Large market potential (2.5 trillion yen domestic, 38 trillion yen global by 2050). Bio-manufacturing: Strong research output (40% of Japan's papers from Kansai, 101 papers). Medical devices: Strong manufacturing capabilities with five major global manufacturers. International collaboration: Attractive investment environment with JETRO support. Digital integration: AI and digital technologies in biotech (CMX AI & Digital Health Research platform).

12.4 200-400 Trillion Yen Global Bioeconomy Forecast by 2030-2040

Lab space: Continued growth in rental lab supply (+185% forecast by 2030). Office market: Continued rent increases (Tokyo Grade A: +6.0% forecast), low vacancy rates (Tokyo: 3.6%, Osaka: 4.0%). VC funding: Recovery expected after 2021-2023 decline. Bioeconomy: 200-400 trillion yen globally by 2030-2040.

13. Data Sources and References

This report is compiled from official government sources, industry reports, academic research, and market data. All sources are publicly available and cited below.

13.1 Official Government Sources

13.2 Industry Reports

13.4 Additional Resources

13.3 Key Organizations and Websites

Biocommunity Organizations

Support Organizations

Research Institutions

Incubation and Lab Facilities

14. Appendices

14.1 Glossary

14.2 Conversion Factors

14.3 Key Dates

Report Title: Japan Life Science Industry Report 2025

Report Date: January 2025

Prepared by: AnalystAI

This report has been compiled from publicly available sources including government publications, industry reports, academic research, and market research data. All data sources, references, and organizational contacts are detailed in Section 13: Data Sources and References.

© 2025 AnalystAI. All rights reserved. This report is for informational purposes only.