Incubate Coalition Japan Statement on the Release of the Honebuto and Japan Growth Strategy

TOKYO, JP: Incubate Coalition Japan (ICJ) welcomes the Takaichi Cabinet's approval of the Basic Policy on Economic and Fiscal Management and Reform (Honebuto) and the Japan Growth Strategy. Together, these policies recognize life sciences innovation as a strategic driver of economic growth and signal Japan's intention to strengthen its position as a destination for global investment and scientific leadership.

"Early-stage investors allocate capital globally, and they allocate it where innovation is valued," said John Stanford, Executive Director of ICJ. "Japan has world-class research institutions, talented scientists, and a strong commitment to innovation. Yet years of policy and pricing uncertainty have undermined the market's long-term attractiveness and made it harder to secure the private investment needed to fully realize Japan's potential as a global life sciences leader. This announcement sends an encouraging signal that Japan intends to compete for investment and innovation."

ICJ is encouraged by the Growth Strategy's recognition that strengthening the life sciences sector is essential to Japan's broader economic ambitions. The coalition also appreciates the Honebuto's commitment to examining how innovation is valued at launch and throughout a product's lifecycle, as well as the government's pledge to maintain an environment that supports patient access to new medicines amid evolving global policy discussions, including developments related to Most Favored Nation pricing proposals in the United States.

These priorities are closely aligned with issues discussed during ICJ's investor delegation visit to Tokyo in June, where venture capital leaders met with members of the Diet, as well as MHLW and METI officials, to share perspectives on what drives long-term investment decisions. Across those conversations, a consistent theme emerged: countries that provide a predictable and supportive environment for innovation are better positioned to attract the capital, talent, and company formation necessary to build a thriving life sciences ecosystem.

As Japan moves from strategy to implementation, ICJ looks forward to continuing its engagement with policymakers to ensure these commitments translate into policies that enable more entrepreneurs to build companies in Japan, more private capital to flow into Japanese life sciences ventures, and, most importantly, faster patient access to innovative medicines.

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