Research on the Change in Competitiveness of the Japanese Medical Device Industry: Focus on Domestic Market Share and International Competitiveness

This study examines the changes over the past two decades in domestic market share and international competitiveness in Japan’s medical device industry. By comparing data from 1999–2003 and 2019–2023 based on the Statistics of Production by Pharmaceutical Industry, we assess structural transitions over the past two decades. The analysis shows that nearly half of the 27 product subcategories experienced declines in both domestic share and international competitiveness, while some, such as blood testing devices, improved their export-oriented competitiveness despite reduced domestic presence. Regression analysis confirmed that international competitiveness remains a significant positive factor for domestic share, whereas high market growth unexpectedly correlated negatively, suggesting missed opportunities in expanding fields. Cluster analysis classified the industry into four categories, revealing that low-risk but low-competitiveness areas are emerging, highlighting the reduced explanatory power of product risk. These findings highlight persistent structural stagnation in the industry and underscore the need for targeted policy support for exportable mid- and low-risk devices, as well as for fields with expanding domestic demand where Japanese manufacturers remain underrepresented.