Osaka Prefecture is moving forward with a large-scale initiative to accelerate regenerative medicine and drug discovery through industry–academia–government collaboration. The effort, centered at the new Nakanoshima Qross complex, was detailed during a recent briefing on the Future Medical Information Dissemination Project for fiscal year 2025.
Speakers from academia, industry, and government outlined strategies to strengthen Japan’s position in regenerative medicine, expand commercialization opportunities, and build a globally connected startup ecosystem. The discussions highlighted both the country's scientific strengths and the challenges in translating research into practical medical applications.
Bridging Research and Commercialization
According to Dr. Yoshiki Sawa, chairperson of the Organization of Future Medicine, Japan has world-class R&D in induced pluripotent stem (iPS) cells and regenerative medicine but lags in commercialization. “We have a very high level of R&D, but from clinical trials to actual social implementation, in that step or process regarding the number of papers and achievements, we are in the 30th or 40th in the world,” he said.
Citing start-up comparisons from 2017–2018, Sawa noted that the United States had more than 200 unicorn companies, China had around 100, and Japan had only three. Most U.S. exits occur through mergers and acquisitions (M&A), with large companies acquiring start-ups to advance new medical technologies. In Japan, by contrast, 76 percent of exits occur through IPOs.
“The development of entrepreneurs as human capital is very important,” Sawa added. “We need mechanisms to incubate startups and accelerate commercialization through mentoring and collaboration with industry.”
Nakanoshima Qross: Building a Healthcare Hub
Sawa also described the role of Nakanoshima, historically a commercial center of Osaka and now the site of a new healthcare innovation hub. The Nakanoshima Qross complex was established through a public–private partnership involving major companies such as Kansai Electric Power, Keihan Railway, and Japan Life Science Insurance, alongside universities and government agencies.
“This provides one-stop collaboration,” Sawa said. “Already more than 60 companies and entities are taking part. Occupancy is as high as 95 percent from the very beginning, reflecting a great expectation from industry.”
The facility combines R&D and medical buildings, enabling seamless collaboration from research through clinical application. The Pharmaceuticals and Medical Devices Agency (PMDA) has also established a presence, streamlining regulatory communication. Nakanoshima Qross includes dedicated space for startup incubation. By April 2025, the CIC incubation program is expected to house more than 100 companies. Global pharmaceutical companies and incubators from the United States, United Kingdom, Germany, the Netherlands, Switzerland, and Australia have already committed to mentoring and funding startups, with additional agreements underway with France and Italy.
Automation and iPS Cell Production
An interim report on the Osaka Prefecture–funded crossover project was delivered by Dr. Masayoshi Tsukahara, director of the R&D Center at Kyoto University iPS Cell Research Foundation . He explained how his team is developing automated production systems for iPS cells. Manual production of iPS cells has been labor-intensive, requiring long hours and strict sterile conditions. Automation, Tsukahara said, offers advantages in cost, stability, and scalability. “By automating craftsmanship, it can be transferred to other places. Automation is a good merit for our technology to go global,” he explained.
A key focus of the Osaka-funded project is sterility assurance in automated closed production processes. The team is working with industry collaborators to validate tube connections and other equipment to maintain sterile conditions. Results are expected to be presented at a regenerative medicine congress in spring 2025.
Government Initiatives
Dr. Yoshi Irohano (Hano), director of the Office of Pharmaceutical Industry Research and Medical Information Planning at the Ministry of Health, Labour, and Welfare (MHLW), outlined national efforts to strengthen drug discovery. Japan’s global market share in pharmaceuticals has declined from second place in 2010 to fourth today. While Japanese firms such as Takeda and Astellas remain influential, they are smaller in scale compared to multinational “megapharma” companies.
Biopharmaceuticals, including iPS-derived therapies, are increasingly dominating the global market. However, Japan has produced few venture-originated drugs. “Out of 10 in Japan, there’s no venture-derived pharmaceuticals,” Hano noted. “The venture-derived originated system is needed in Japan as in the case of the U.S.”
Government initiatives now include establishing drug-discovery cluster campuses, providing subsidies for R&D, and creating a multi-year fund to support innovative pharmaceuticals. Nakanoshima Qross is part of this cluster strategy.
Toward a Global Model
A panel discussion moderated by Atsushi Ando, editorial writer at Nikkei Inc., addressed whether the “Nakanoshima model” could expand globally.
Sawa emphasized the need to think internationally from the outset. “Going IPO within Japan doesn’t provide innovative medical solutions to patients around the world,” he said. “We really have to have a mindset for going global from the very beginning.”
Hano agreed, stressing that drug pricing and reimbursement limitations make it difficult to sustain expensive innovative therapies in Japan alone. “Going global is a very critical element,” he said. “These new medicines shouldn’t be exclusively held in Japan. Rather, they should be delivered to patients in other countries.”
Both panelists pointed to Expo 2025 in Osaka as a critical opportunity to showcase Japan’s capabilities and build international partnerships. Already, multiple memorandums of understanding (MOUs) have been signed with overseas incubators and organizations.
Nurturing Talent and Investment
Another theme was the need for entrepreneurial talent and global mentorship. Japan faces a shortage of CEOs and executives with experience scaling healthcare start-ups. Programs at Nakanoshima Qross aim to train 120 new entrepreneurs, with support from international incubators and pharmaceutical companies.
Speakers also noted that overseas investment remains limited but could increase as Nakanoshima demonstrates its ability to foster globally competitive start-ups. “If people come to Nakanoshima Qross, they would understand that we have a global start-up ecosystem from the very beginning,” Sawa said.
Looking Ahead
As Osaka Prefecture continues its Future Medical Information Dissemination Project, the speakers underscored the importance of bridging science and business, fostering start-ups, and leveraging global partnerships.
“We would like to bridge science to business to make a solid international contribution,” Sawa said. “This is not gambling, but a kind of science casino. By realizing this, we’d like to deliver science to patients and achieve sustainability.”
Upcoming events tied to the initiative include the Osaka Future Medicine Forum and the Biotech Partnering Conference 2025, both designed to strengthen collaboration between government, academia, and industry. The Nakanoshima Qross project, backed by Osaka Prefecture and national ministries, is positioning Kansai as a central hub for regenerative medicine and drug discovery. Whether the model can serve as a global template will depend on the region’s ability to attract investment, train talent, and successfully commercialize its scientific strengths.
This article was written by Sherrie Trigg, editor and director of content for Medical Design Briefs. She can be reached at
