The U.S.-Japan Business Council’s Healthcare Innovation Working Group has focused on digital innovation as a critical area of reform to reconfigure Japan’s healthcare and regulatory frameworks to better support innovation and meet the evolving needs of its society.
Since 2020, USJBC and its partner, the Japan-U.S. Business Council, have issued recommendations to the U.S. and Japanese governments urging greater public-private cooperation and bilateral collaboration in four key areas:
- Cross-Border Data Flows and Privacy;
- Telemedicine and Remote Care;
- Digital Therapeutics; and
- Data Utilization and Artificial Intelligence Diagnostic Development
Building on these efforts, a new whitepaper called Digitization Delivers analyzes the state of Japan’s digital transformation and identifies additional opportunities for collaboration between the United States and Japan, particularly within the private sector. USJBC believes there are ample areas for further leadership and improvements that can enhance patient access, improve health outcomes, lower costs, and promote innovation.
Report Takeaways
- Japan is in the midst of a digital revolution in healthcare in the areas of telemedicine, digital therapeutics, and the development of AI-based diagnostic tools. The Japanese government has advanced significant regulatory changes to embrace digitalization and strengthen Japan’s global competitiveness, as well as address gaps revealed during the COVID-19 pandemic and the challenges it faces as an aging society.
- The developments have been reinforced by U.S.-Japan public and private cooperation in areas ranging from R&D to commercialization, with both governments offering significant support at the highest levels for further academic and research collaboration.
- Japan still faces significant challenges in building a globally competitive health technology development ecosystem. These challenges extend to critical areas, including the collection, storage, and transfer of electronic medical records (EMRs) and interoperability in cross-border data flows.
- To strengthen Japan’s digital health infrastructure, the Japanese government should promote U.S.-Japan and other international cooperation on privacy and cybersecurity. Additionally, it should enact legislation that facilitates cross-border data exchange while protecting privacy.
- Investment in digital health systems, particularly in underserved rural areas, should be encouraged through tax incentives, subsidies, and innovative financing models like development impact bonds. Additionally, Japan should review policies on responsible AI use in healthcare research and explore harmonizing AI ethics frameworks.
Download the full report below.
