BIOINDUSTRY

New Bio Growth
Strategy by Japan

Boosting Open Innovation & Investment
Japan Bioindustry Association (JBA)
BioJapan 2011 Interview with Tsukamoto Yoshiaki, JBA Executive Director
Japan’s bioindustry is starting to produce results along with the progress in joint research as well as
development efforts involving research institutes, attached to academia and government as well as
the private sector. One event which is playing a central role in pushing forward this trend is BioJapan,
held under the auspices of the Japan Bioindustry Association (JBA). In an interview with the Japan
Journal, JBA Executive Director Tsukamoto Yoshiaki expressed his hopes that the participants this year
in particular will “turn this annual BioJapan event into a focal point for monitoring industry trends
upon promoting Open Innovation.”
The Japan Journal: The BioJapan
2011 event being held from
October 5 through 7 at thePacifico Yokohama Convention
Center will be the thirteenth timesuch an event will be held. Uponconsidering further developmentof bioindustry in Japan, how would
you describe this event’s role?

JBA Executive Director TsukamotoYoshiaki: There are two aims set forBioJapan. First is the holding of seminars and the like, providing a “Forum”
in the bigger sense of the word. Issues
to be covered include Life Innovation(encompassing not only the biomedical field but also items such as medical devices and functional foodstuff),
Green Innovation (with most environment-related aspects being covered),plus Clusters/Ventures (as related togovernment, industry, academia andpolitical circles).
Second is business matching/partnering—innovation in actual business,
an “Arena of Open Innovation” allowing
businesses large and small to networkwith each other as well as academic researchers and others concerned. In thepast it was enough just to publicize theresults of research but now it is essential
18

The Japan Journal AUGUST 2011that the results are utilized
in a practical manner.
Japan’s bioindustry
has been able to successfully produce results based
upon promoting joint
R&D between the various
players involved therein.
These players compriseacademic institutions thatcarry out research activities, venture businesses
and major corporations
such as pharmaceuticalcompanies and the like;for them, the annual venue
provided by BioJapan isfilled with opportunities tomeet up with a variety ofentities. It is hoped that
this will enable the participants there to discuss andconverse widely with potential partners. Indeed it
can be said that theBioJapan event will help
improve the chances thatthe joint endeavors or alliances formed succeed, yet
furthermore BioJapan enables, for example, venture businesses to learn ofJapan Bioindustry Association Executive Director
Tsukamoto Yoshiaki is a former professor at theTokyo Institute of Technology and a former
director-general of the Shikoku Bureau of METI.

Figure 1: Ratio of Visitors to BioJapan 2010 by Industry(Total No. Visitors: 15,175)

nering efforts at BioJapan has grown overthe past several years, starting at 450
such cases, then growing to 860 followedby 1,160 cases until last year this figure
reached the 2,000 mark. This year wehope to expand the number even further.
What reasons do you attribute tobusiness partnering becoming everso popular?

Figure 2: Ratio of Visitors to BioJapan 2010 by Job Category(Total No. Visitors: 15,175)

The truth is, the exhibitors’ booths atBioJapan are not just booths but also double as meeting rooms, and this function
is becoming even more important of late.
In particular at the pharmaceutical firms’
booths, all types of dialogue have been
taking place in advance of joint R&D andalliance formation. As frontline researchers and mid-level managerial staff are
involved in such dialogue, together withdecision-makers, BioJapan underpins
the fact that the “Open Innovation” hasbecome a social phenomenon.
The expansion of business partnering efforts and of the numberof exhibitors simultaneously indicates that the future of bioindustry in Japan could be bright…?

the needs of pharmaceutical majors
while allowing big corporations to findout what kind of progress has takenplace on the venture business side. In
many cases, regardless of the respective
participant’s stance it becomes possible
for the participants to clarify the directions being taken by the research activities that will help further development
upon which future alliances can beformed. As such, I should think that
BioJapan affords a place where thetrends can be monitored and scrutinized.
It is therefore important for BioJapan tofulfill and heighten its function in becoming an “arena” that will power thesocial phenomenon known as “OpenInnovation”—and likewise, as its spon-sor, JBA also has a crucial role to fill.
Upon considering “OpenInnovation” as a concept, is thisnot an avenue for enhancing bioclusters as well?

Yes, of course! Since almost all those
involved in the biocluster efforts
around the world will be exhibiting at
BioJapan, this will indeed be the case.
Although there had been some adverse
impact due to the occurrences of March
11, a multitude of participants will
gather from around Asia as well as
Europe and the Americas.
Until now, the number of thoselinked up as a result of the business part-True, since it is said that Japan has hit aceiling in terms of industrial competitiveness and while starting to slip in its
standing internationally, upon pushing
forward with “Open Innovation” Japan
has an advantage. That is, the potential
strength which Japan’s academia possesses is very high. But the transformation of such potential of academia into
realizing an actual system was difficult.
What needs to be done by Japan is tochannel the academic potential, a major
sticking point. The role here of BioJapan
must become one of a conduit for both
Japanese and non-Japanese in becoming
a center for Open Innovation in Asia.
Fulfilling the role of Asia’s “OpenInnovation” hub is within purview
then?

Correct, as there are limits as to what
Japan can do alone, we cannot handle everything so we ask neighboring nations—such as Korea and China—to consider
linking up with us for innovation. I think
it is possible to help Asia and Japan lead
The Japan Journal AUGUST 201119BIOINDUSTRY
in this field at the same time.
What are the features of BioJapan
2011?

First, not only will there be people fromthe pharmaceuticals and biotech industries, but as a prominent business leader,Takeda Pharmaceutical Co. President
Hasegawa Yasuchika is scheduled todeliver the keynote speech, where he is
to talk about the growth strategy ofJapan’s bioindustry. Another keynote
speaker is the chairman of EuropaBioand proponent of the biotech-based
economy Stephan B. Tanda, who is amember of the Managing Board at
Royal DSM N.V. (popularly recognized by the Royal Dutch/Shell name).
As both these speakers are people
who are standard bearers for Open
Innovation, it is hoped that their words
will stimulate activities related toJapan’s bio-based strategy as well asbioindustry in Japan in addition to Asia.
Other than the keynotes, what are
the focal points for the variety ofseminars and sessions being held?

First there is the Life Innovation
Summit. This is a seminar that has as its
central theme the alliance-building between pharmaceutical companies andventure businesses/universities. Thisseminar will be moderated by Dr.
Teshirogi Isao who is president of theJapan Pharmaceutical Manufacturers
Association (JPMA), who will enhance
the interactions between large pharmaceutical corporations and academia.
Then there is the Green Innovation
Summit, with participants discussing thepromotion of Green Innovation. Japan
Chemical Industry Association (JCIA)
Chairman Fujiyoshi Kenji will top thelist of this Summit’s participants. In addition there is the seminar concerning
global networking of bioclusters; seminars as well as sessions with the input ofpeople from bioclusters around theglobe will gather, with presentations
being made by representatives of entities
ranging from academia to pharmaceutical majors.
Recent years have seen various“key persons” talking at the20

The Japan Journal AUGUST 2011

Japan Bioindustry Association (JBA)JBA is a nonprofit organization dedicated to the promotion of bioscience, biotechnology and bioindustry in both Japan and the rest of the world. Established through thesupport and cooperation of industry, academia and government, JBA is the only organization of its kind in Japan. JBA’s roots date back more than fifty years to the establishment of the Japanese Association of Industrial Fermentation. Today, like its predecessor organization, the JBA functions as a think tank and platform for communicationbetween scientists, technologists, policymakers and managers.

event, but who are slated to speak
this year?

As was the case last year, we will have
Professor Yamanaka Shinya of Kyoto
University giving us a presentation on
the current status of induced pluripotent
stem (iPS) cell research.
Furthermore, since the Okinawa
Institute of Science and Technology
School Corporation is planning to open
the Okinawa Institute of Science andTechnology as a higher institute oflearning from September of 2012, weare asking its president-designate, Dr.
Jonathan Dorfan, to speak to us while hevisits Japan so he can tell us about thevision he has for the graduate school
being opened in the near future, on theopening day of BioJapan 2011.
This graduate school is being established for promotion of interdisciplinary
research covering natural sciences from
biology, physics, chemistry, mathematics and computational science, but it has
already started employing researchers in
the aforementioned fields, with the mainconcepts being threshed out in detail.
Since Dr. Dorfan is director emeritus of the SLAC National Accelerator
Laboratory at Stanford, the expectations
are that he will provide leadership as hehas headed up many top-level international joint projects.
Moreover, as something thatshould be highlighted there is the ideaof a “Special International Strategic
Administrative District for LifeSciences” that is being sponsored by
the cities of Yokahama and Kawasaki,in addition to Kanagawa Prefecture
which is the seat of these two cities.
This idea is being unveiled in details atBioJapan 2011.
Speaking of Professor Yamanaka’spresentation, what other medicine-oriented activities will there
be this year?

The Regenerative Medicine Innovation
Forum which was established just thisJune will be holding a large-scale seminar at BioJapan 2011. Along withProfessor Yamanaka’s event, the exhibit
scale for medicine-oriented entities has
been expanding, as regenerative medicine is a topic that cannot be missed.
Additionally, the medU-net, which
is an alliance of medical schools established in June of 2010, will be taking
part in this year’s BioJapan as well.
Comprising some 111 entities centering
on non-profit organizations, businesses
and prominent individuals, the organization was established with the objectiveof simulating industry-academiagovernment alliances that have come toplay such prominent roles in promotinginternational research and education for“Life Innovation” (that is, the biomedical field), enhancing international competitiveness and realizing internationalcontributions. It is believed that participation by such groups will lead to alarger goal in the future.
So, BioJapan is to become thecomprehensive “arena” for bioindustry including the biomedicalfield?

Exactly! We have been able to gain
new momentum from the many recent
success stories as related to partnershipbuilding. And overall, the quality has
begun to improve, and we are ready toride the mounting wave of “Open
Innovation.” It is my fervent wish thatvisitors make the greatest use of the“Open Innovation” provided byBioJapan 2011.

BIOINDUSTRY

In August, Japanese heavy industry
firm IHI Corp. along with twobiotech venture firms, Neo Morgan
Laboratory and Gene & Gene
Technology, will be setting up a jointcompany to research and develop biofuels
made from algae. They will combine planttechnology and biotechnology in the newvessel, named IHI NeoG Algae Joint
Corp., based in the city of Kawasaki inKanagawa Prefecture. IHI, formerly
known as Ishikawajima-Harima HeavyIndustries, is known as a major constructorof petrochemical plants around the world.
Its partners this time are Neo Morgan
Laboratory based in Kawasaki, involved
in development of biological stocks withsome fifty firms around the world, while
Gene & Gene Technology is a Kobe
University spin-off venture business basedin Osaka. The Osaka bioventure is known
for its prowess in handling microalgae.
Marine microalgae, namely oceanic
photosynthetic organisms, have contributed to changes in the global environment
from prehistoric times. And such change

has been the motive force for the evolution of microalgae during three billion
years. For example, focusing on the “coccolithophorids,” they are able to produce
fuel oil in addition to carrying out CO2fixation. Biotech researchers in Japan areattempting to unravel their mechanisms for
CO2 fixation and bio-oil production. But
the microalgae coccolithophorids are unicellular calcifying algae and althoughlarge blooms havebeen found on theoceans using satellite
observations, they aredifficult to handle.
What is known now
is that they have contributed to the production of petroleum
and limestone during
the Cretaceous era.
Now, returning
to IHI NeoG AlgaeJ.C., it is capitalized
at 26 million yen,with IHI planning

Professor Yamanaka to Offer Progress
Report on iPS Cell at BioJapan 2011
The induced Pluripotent Stem (iPS) cells have been at thecenter of worldwide attention since 2007, when Professor
Yamanaka Shinya of Kyoto University succeeded in producing said iPS cells from adult skin cells, through introduction of four genetic factors into those skin cells.
Professor Yamanaka will make a presentation during theBioJapan 2011 event as to iPS cells, adult cells that can be
genetically reprogrammed to turn into cells like those of thenerves and of organs such as the heart and the kidney inaddition to body tissues; the cells are applicable for pathogenesis research, not to mention drug discovery/development and regenerative organ transplantation.
This biotechnological breakthrough, despite issues
such as carcinogenesis resulting from the facilitated differentiation of these cells, has since led to adult cells being
differentiated into iPS cells around the globe. Professor
Yamanaka has now also been granted a patent by theEuropean Patent Office (based in Munich, Germany) forthe production method he had discovered.
Kyoto University had gained some iPS cell production
patents from the bioventure iPerian Inc. of California earlier.
The U.S. company had European as well as Japanese andU.S. patents held by Germany’s Bayer Schering Pharma
AG, based on work by a scientist working at their Bayer
Yakuhin subsidiary’s former Kobe Research Center.

over the next two years to invest a totalof 40 million yen in order to conduct
basic research as well as experiments for
producing biofuels that can later be usedpractically in fueling automobiles and thelike. Unlike the abovementioned “coccolithophorids” the algae being research
will be the type which exudes oil. The
new company is targeting commencing
sample shipment of the fuel product,
which is to be much less expensive thanconventional biofuels that use grain andthe like while using easy-to-culture algae,
from around year 2014.

COURTESY OF IHI, G&GT AND NEO MORGAN LABORATORY

Japanese Businesses Looking
To Fuel Business Using Biotech

BioJapan 2011 - World Business Forum
From October 5 (Wednesday) to 7 (Friday)
On the basis of “Life Innovation” (ranging the gamut from cosmetics, drug discovery and functional foods to healthcare, medical
devices and supportive equipment) and “Green Innovation” (biorefinery, biomass, environment and general foodstuff provided byagriculture/fisheries) having been selected as priority policies for thescience and technology area by the Japanese government, Japan’sbiotechnology industry has continued to grow exponentially.
Despite the current economic stagnation, biotechnology industry continues to grow. It is also firmly incorporated into
Japan’s growth strategy. BioJapan was started in 1986, and has
been developing smoothly since then, now having become themost influential event in Asia’s biotechnology market. In addition
it also has expanded into biotechnology-related fields comprehensively, not only just to cover drug discovery but also nutraceutical food, medical devices and the environment. In 2011
BioJapan is held based upon the three major topics of Life,
Green and Bio-clusters & Ventures.
A variety of concept-based exhibition zones and organizer’sseminars are planned as well. By participating in BioJapan, which
provides the opportunity to exploit “Open Innovation” as a platform, it will offer you the best selection of prospective business
partners from all over the world. An original web-based businessmatching tool called the “Business Partnering Matching System”
will assist those who have made appointments and conduct business meetings efficiently.

The Japan Journal AUGUST 201121