11.3 Sectors in Japan that make up Japan’s Bioeconomy
Agriculture, forestry, and fishing in Japan
Agriculture plays a fundamental role in Japan’s bioeconomy. It encompasses the cultivation of various crops, including rice, vegetables, and fruits. Sustainable and environmentally friendly agricultural practices, such as organic farming and reduced chemical pesticide use, are integral components of Japan’s bioeconomic strategy. GDP from Agriculture in Japan increased to 4792.70 JPY Billion in 2021 from 4641.70 JPY Billion in 2020, Agriculture, forestry, and fishing, referred to as (nōrinsuisan) in Japanese, constitute the primary sector of Japan’s economy, alongside the mining industry. However, their combined contribution to the gross national product is relatively modest, accounting for only 1.3%. Japan’s limited arable land, with only 20% suitable for cultivation, has led to significant government subsidies in support of the agricultural sector. Historically, agriculture, forestry, and fishing played a dominant role in the Japanese economy until the 1940s, gradually losing significance thereafter (as observed during the period of the Empire of Japan). During the late 19th century, particularly in the Meiji period, these sectors employed over 80% of the population. While employment in agriculture declined in the years leading up to World War II, it remained the largest employer, with approximately 50% of the workforce engaged in this sector by the war’s end. Subsequent years saw a steady decrease in the importance of agriculture, with employment figures dropping to 23.5% in 1965, 11.9% in 1977, and eventually down to 7.2% in 1988. The role of agriculture in the national economy continued to diminish rapidly. The share of net agricultural production in the Gross National Product (GNP) decreased from 4.1% to 3% between 1975 and 1989. By the late 1980s, a significant proportion of Japan’s farmers also pursued occupations outside of farming, with approximately 85.5% of them engaging in part-time farming activities. Most of these part-time farmers derived the majority of their income from non-farming sources.
Figure 2: Japan GDP From Agriculture
Japan’s Basic Fisheries Plan (also known as the Basic Plan for the Promotion of Fisheries) is a key policy document outlining the country’s approach to managing its fisheries industry. Japan has a long history of fishing and is one of the world’s leading fishing nations. The Basic Fisheries Plan is designed to ensure the sustainable management of its marine resources while supporting the livelihoods of those involved in the fishing industry.
Here are the key components and principles of Japan’s Basic Fisheries Plan:
Resource Management: The plan focuses on the sustainable management of fishery resources, which includes setting quotas and regulations to prevent overfishing and ensure the long-term health of fish stocks. Research and Data Collection: Japan invests in research and data collection to better understand fish populations and the marine environment. This information is used to make informed decisions on fishing quotas and regulations. International Cooperation: Given that many fish stocks migrate across international boundaries, Japan collaborates with other countries and regional fisheries organizations to ensure that fishing practices are sustainable on a global scale. Domestic Fleet Management: The plan includes measures for managing the domestic fishing fleet to prevent overcapacity and overfishing. This may involve subsidies for vessel retirement and stricter regulations on the construction of new fishing vessels. Promotion of Aquaculture: To reduce pressure on wild fish stocks, the plan supports the development of aquaculture (fish farming) as a complementary source of seafood production. Promoting Sustainable Practices: Japan encourages the use of sustainable fishing practices, such as selective fishing gear and techniques that minimize bycatch and environmental impact. Safety and Working Conditions: The plan includes provisions to ensure the safety of fishermen and improve working conditions in the fishing industry. Market Development: To support the seafood industry, the plan also includes initiatives to promote Japanese fish products in domestic and international markets. Disaster Management: In the face of natural disasters and unforeseen events, the plan includes provisions to respond effectively and rebuild the fishing industry. Community and Cultural Preservation: Japan recognizes the cultural and historical importance of fishing in many communities. The plan supports efforts to preserve this heritage while ensuring sustainability. It’s important to note that Japan’s Basic Fisheries Plan is periodically updated to adapt to changing circumstances and new scientific data.
The food and beverage sector is a significant part of Japan’s bioeconomy. This sector focuses on the production of high-quality and innovative food products, with an emphasis on safety and nutrition. Japan is known for its traditional and modern culinary excellence, including unique and health-conscious food and beverage offerings.In the case of Japan, this industry is in a state of constant evolution, blending tradition and innovation seamlessly. In recent years, Japanese consumers have exhibited a noticeable shift in their preferences. Instead of opting for mass-produced goods, they are increasingly choosing fresh and health-conscious alternatives. The market landscape is undergoing a transformation, and to thrive in this environment, businesses must remain adaptable, continuously aligning their offerings with consumer demands. Furthermore, it is worth noting that some Japanese food items are expected to experience price increases due to global economic challenges. However, this has not curtailed consumer spending; rather, it has encouraged more intentional and purposeful shopping. Companies that can swiftly adapt to these evolving trends stand to uncover new opportunities and rewards in the Japanese food market.
Biopharmaceutical and Healthcare Sector
Japan’s bioeconomy extends into the biopharmaceutical and healthcare industries, encompassing areas like regenerative medicine, cell therapy, gene therapy, and pharmaceutical development. With a growing emphasis on health and longevity, Japan is a hub for cutting-edge advancements in medical and biotechnological research (Tsuji & Tsutani , 2008).
In the twenty-first century, biopharmaceuticals—a class of pharmaceuticals originating from biotechnology—have become important therapeutics. In this regard, the public and healthcare policymakers are both very interested in the topic of drug lag in biopharmaceuticals. Nonetheless, there aren’t many studies discussing the topic of biopharmaceutical drug lag because of the industry’s relatively recent history. Bienz-Tadmor’s study looked at 14 novel biopharmaceuticals that were approved in the US, Europe, or Japan in the years 1982–1992. Ten of the fourteen were approved in Japan, while eleven of the fourteen were approved in the US. All fourteen were approved in Europe. Interestingly, for 75% of these products, Europe was the “first approval country”; for the remaining 25%, the US was in this position. But none of these recently created products received Japan’s initial approval. After the Bienz-Tadmor study, there haven’t been many foreign studies looking into the problem of drug lag in the biopharmaceutical industry. The approval of biopharmaceuticals in the US and the EU has been the subject of numerous studies by the Tufts Centre for the Study of Drug Development, but these studies have mostly concentrated on patterns in the development of biopharmaceuticals (Tsuji & Tsutani, 2008).