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Hokkaido Biotech Industry Growth Strategy
 Aiming to create a good cycle in the bioindustry and local industries
Overview: The Hokkaido Biotech Industry Growth Strategy is working towards a fusion of Hokkaido's strengths in agriculture, forestry, fisheries, and foods with the biotech industry in the aim of boosting the competitiveness of regional industry.
With a focus on the fields of health and medical, the Strategy initiative is leveraging the cutting-edge R&D seeds of the biotech held by Hokkaido's universities and other research institutions and the region's rich natural resources to create a group of companies that are known worldwide in areas such as functional foods and cosmetics, medicine and pharmaceuticals, and research support.
Industry to focus: Health and medicine (functional foods, cosmetics, medicine and pharmaceuticals, research-supporting business)
Target areas: Entire region of Hokkaido
Promotion organization: Hokkaido BIO Technology Industrial Cluster Forum
URL : http://www.noastec.jp/biocluster/cgi-bin/index.cgi
Northern Advancement Center for Science and Technology (NOASTEC)
TEL: +81-11-708-6392 FAX: +81-11-747-1911
Collaborating key organizations: Hakodate Regional Industry Promotion Organization, Organization for the Promotion of the Tokachi Area, NPO Hokkaido Bioindustry Association (HOBIA)
Outline of project promotion system
Outline of industry-university-government network:
The network consists of 113 companies, 22 universities and public examination and research institutes, 2 local governments, and 109 financial institutions and other organizations.
Characteristic efforts of the project:
As the biggest managerial issue for Hokkaido's biotech firms is improving marketing capabilities, the initiative's FY 2009 efforts are to strengthen the marketing of functional foods and cosmetics and support for alliances among pharmaceutical companies to foster further growth among the biotech companies of the region.

STEP1Skill upgrading: Via managerial seminars and other means, show successful management strategy examples and broadly share marketing strategy drafting processes to help upgrade skills such as product development, PR, and negotiating.
STEP2Business matching meetings: Meetings with functional foods and cosmetics companies from around the country provide a forum for real bridge building to foster sales network expansion and alliances among the biotech firms in Hokkaido.
STEP3Establishing permanent online exhibitions: Even after holding such business meetings, setting up permanent online exhibitions offers the opportunity for virtual bridge building.
Philosophy and efforts for business creation:
The project is engaged in promoting technological tie-ups between universities, public examination and research institutes, and companies for the creation of more original technologies and business models. In addition to meetings to match up cutting-edge technological seeds and biotech company needs, the project also holds matching exchanges between biotech companies and doctorate researchers and post-graduate students to help companies secure personnel for technological development. On the funding side, the R&D support portion of the project introduces companies with an array of options in accordance with their needs, as well as fiscal advice.
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Key person
Hisato Doi Hokkaido is blessed with a concentration of researchers and research seeds as well as ample natural resources, which combine with the rising number of players in the biotech field and the presence of face-to-face networks offer high growth potential for the biotech industry. Moreover, support systems in cooperation with related government agencies help bring about favorable results, such as the commercialization of the products of R&D.
We will continue to make the most of the expertise taken from successful cases to offer the best in management techniques, as well as coordinating business match-ups in the fields of functional foods and cosmetics and in medicine and pharmaceuticals, and tie-ups with other clusters overseas.
Hisato Doi
Cluster Manager, Hokkaido Bio Technology Industrial Cluster Forum (CEO and President, Human Capital Management Inc.)
Norihiro Nishimura
Norihiro Nishimura
Cluster Manager, Hokkaido Bio Technology Industrial Cluster Forum (Professor at Graduate School of Medicine, Mie University)
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Project achievements
Sales: ¥39.5 billion(In FY 2008 projections)
About 3.2 times the sales achieved before the launch of the Strategy (In 2000)
Target figure
[plan period: FY 2007 - 2010]
Sales(FY 2010):¥50 billion
Research and development investments(FY 2010):¥5 billion
Number of new companies expanding overseas:30 companies in 4 years
Number of new businesses launched:
2,000 businesses in 4 years
(Of which 1,000 projects use local resources in 4 years)
Main Participants of the Project
Private companies (113 companies): Amino Up Chemical Co.,Ltd., Evec Incorporated, Noth Japan Chemical Co.,Ltd., Institute of plant Breeding Co.,Ltd., Gene Techno Science Co.,Ltd., Three-B Co.,Ltd., Nissei Bio Co.,Ltd., Biomatec Japan Inc., Bio Lafar Inc., Hokkaido System Science Co.,Ltd., Hokkaido Soda Co.,Ltd., Hokkaido Bio-Industry Corporation, etc.
Related administrative organizations (34 organizations): Hokkaido Regional Bureau of Health and Welfare, Hokkaido Regional Development Bureau, Hokkaido Laber Bureau, Hokkaido Government, Sapporo city, etc.
Universities and public examination and research institutes (22 organizations): Hokkaido University, Obihiro University of Agriculture and Veterinary Medicine, Sapporo Medical University, Asahikawa Medical College, National Agricultural Research Center for Hokkaido Region, AIST Hokkaido Center, etc.
Financial institutions (33 institutions): The Industrial Cluster Support Financial Committee in the Hokkaido area
Others: Partners outside Hokkaido in the Bio Industry Clusters (68 companies), etc.
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Example
ACHIEVEMENT EXAMPLE 1 Marketing alliance support (1)
- Nationwide biotech business matching in Sapporo 2008
Regional Bureaus of Economy, Trade, and Industry and biotech industry cluster groups from around the country partnered to hold the "Nationwide biotech business matching in Sapporo 2008" event in September 2008 in order to promote sales network expansion and alliances among functional foods and cosmetics companies. 76 companies from areas around Japan participated.
Unlike at usual exhibitions, the biggest focus here was on meetings, and the finely tuned understanding of the needs of participants led to effective appointment scheduling, with some 300 meetings held. Another such event is planned for September 2009.
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ACHIEVEMENT EXAMPLE 2 Marketing alliance support (2)
- Women's perspective marketing project
Hokkaido's biotech companies and women marketers from the MaM-CaN housewife network jointly implemented the "Women's perspective marketing project," a marketing strategy for skincare, metabolic, and senior-oriented products. The initiative built upon women's consumer perspective in product naming, package design, pricing, and PR strategies, and created cosmetics and supplements from new product concepts.
The project website was updated as the project progressed, a marketing guidebook was published, and numerous new product development and sales strategy hints and tips were made available.
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Women's perspective marketing project kick-off meeting

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Women's perspective marketing project skincare product packages
ACHIEVEMENT EXAMPLE 3 Overseas developments (1)
- Large-scale licensing contract signed with major overseas firm
Based on the research results of Professor Kenzo Takada, MD of Hokkaido University's Institute for Genetic Medicine, Evec Inc. (based in Sapporo) is developing fully-human antibodies using purely domestic technology that does not rely on any patents in the US or the EU.
In September 2008, major German pharmaceutical manufacturer Boehringer Ingelheim took note, and signed a large-scale licensing contract for one type of antibody. In addition to a one-time payment of 55 million euros (roughly 8.8 billion yen at the then-current exchange rate) and later milestone payments, the contract also includes provisions for Evec to receive licensing fees based on final sales, marking the first big success of a Japanese bioventure company in signing a large-scale licensing deal with a major Western pharmaceutical manufacturer.

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Evec's research into fully-human antibodies
ACHIEVEMENT EXAMPLE 4 Overseas developments (2)
- Overseas expansion stepping up upon receiving US GRAS certification
Amino Up Chemical Co., Ltd. has developed oligonol, a low-molecular-weight polyphenol derived from lychee fruit. The company has received approval for this new material from the US Food and Drug Administration (FDA), and sales of functional food ingredients are expanding not just in Japan but overseas now too.
In February 2009, the company received Self-Affirmed Generally Regarded As Safe (GRAS) certification from the US FDA. This allows for a full-scale entry into the US functional food and beverages market, and management anticipates substantial demand growth.
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Amino Up Chemical's oligonol supplement (left) and lychee fruit

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