Predictability of Stock Price Fluctuations Based on Business Relationships: A Comparison of Normal and the COVID-19 Pandemic Periods in Japan

The stock prices of a company are significantly influenced by changes of its business relationships. However, the effectiveness of stock price prediction based on such inter-firm business relationships has been partially confirmed in limited region and/or timeframe cases. In particular, it has not been verified under highly volatile market conditions such as those caused by the COVID-19 pandemic. To address these issues, we analyzed the impact of supplier–customer relationships on stock prices in the case of the Japanese stock market using The Fama-French three-factor model and publicly available information of business relationships. The subjects were classified into two conditions—normal and COVID-19—and the stock price predictability associated with changes of stock prices of related companies for both short and long holding periods. As a result, the significance of stock price predictability was confirmed on a daily and monthly basis in the given region. In addition, specific factors including a volatile event caused by a customer company, a stock price downturn, and the company size of a customer particularly improved stock price predictability in the pandemic

Perceived incentives to transdisciplinarity in a Japanese university research center

As a method of investigating complex socially relevant phenomena, transdisciplinary research (TDR) is gaining increasing centrality as a model of knowledge production. However, it is being discouraged by a scientific reward system based on disciplinary logic. The disincentive is even stronger for junior scholars who should be developing the capabilities necessary for achieving long-term scientific excellence. Building on theories of the coordination of scientific communities and using the case of a research center of Kyoto University investigating the boundary between cell and material sciences, we aim to disentangle the interplay between institutional incentives and intrinsic motivation in the prioritization of TDR over monodisciplinary research. We find that, despite strong interest in TDR among scientists and the center's mission to promote this orientation, only a minority of scientists prioritize this approach. Choice of research strategy is associated with its perceived benefits for idea generation, publication opportunities, intellectual effort required, the costs of team coordination, and satisfaction with organizational resources. Furthermore, the propensity to prioritize TDR drops among scientists beginning their careers. Therefore, we recommend the development of evaluation schemes grounded in activity-based measures and the granting of permanent positions to scientists pursuing TDR

Redefining the concept of standardization for pluripotent stem cells.

In this report we review the concept of standardization and propose an exhaustive framework for the proper management of technology on pluripotent stem cells based on studies of global and regional initiatives. We demonstrated detailed observational analysis on global initiatives for the standardization of related technologies as well as regional attempts with particular interest in the cases of the UK, the US and Japan. Consequently, we came up two fundamental issues: first, these initiatives and attempts tend to be limited to each of currently existing categories of pluripotent stem cells, whereas the technological opportunity to enable clinical/commercial application is equally open to all stem cell types. Second, the subject to be examined for standardization is set to a quite narrow range compared to precedent practices in other industrial sectors. To address these issues, we propose a strategic framework for standardization with an emphasis on comprehensiveness covering various technological opportunities and consistency to learning in the management science. By utilizing this framework development of intellectual property rights not only through patents but through taking leadership in standardization can be considered as means for improving research and development competence. Of particular concerns is the formation of quality standards for final products/services and core elemental technology, especially specific pluripotent stem cell lines. Furthermore, we inferred two stages of the standardization process, individualization where a particular product/service is qualified by the market, then standardization where the elemental technology is subsequently established as compatibility standards

Structure, Management and Performance of Drug Discovery Firms in Japan

一般講演要

Cancer Prevention Using Machine Learning, Nudge Theory and Social Impact Bond

There have been prior attempts to utilize machine learning to address issues in the medical field, particularly in diagnoses using medical images and developing therapeutic regimens. However, few cases have demonstrated the usefulness of machine learning for enhancing health consciousness of patients or the public in general, which is necessary to cause behavioral changes. This paper describes a novel case wherein the uptake rate for colorectal cancer examinations has significantly increased due to the application of machine learning and nudge theory. The paper also discusses the effectiveness of social impact bonds (SIBs) as a scheme for realizing these applications. During a healthcare SIB project conducted in the city of Hachioji, Tokyo, machine learning, based on historical data obtained from designated periodical health examinations, digitalized medical insurance receipts, and medical examination records for colorectal cancer, was used to deduce segments for whom the examination was recommended. The result revealed that out of the 12,162 people for whom the examination was recommended, 3264 (26.8%) received it, which exceeded the upper expectation limit of the initial plan (19.0%). We conclude that this was a successful case that stimulated discussion on potential further applications of this approach to wider regions and more diseases

Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan

Regulation has long been a counterpart of innovation in the health care industry, and recent cases have demonstrated that appropriately designed regulations can both coexist with and promote innovation. This study is the first study to explore how the regulatory environment affected the innovation process during the transition of the regulations for functional foods in Japan by examining quantitatively the impact of the foods with function claims (FFC) system on industry, companies, and products. Based on a dataset of Japanese dietary supplement manufacturing companies (n = 169) and their products (n = 731) in 2019, we found that companies that have newly entered the FFC system are smaller in scale than existing companies (p p = 0.01). A multiple regression analysis revealed that FFC product sales increased with in-house clinical testing (coefficient: 26.8, p p p < 0.05). These results suggested that the FFC system facilitated the market entry of small and mid-size enterprises and promoted the creation of high-value products through innovative company efforts

The Significance of Alliance Networks in Research and Development of Digital Health Products for Diabetes: Observational Study

BackgroundDigital health has been advancing owing to technological progress by means of smart devices and artificial intelligence, among other developments. In the field of diabetes especially, there are many active use cases of digital technology supporting the treatment of diabetes and improving lifestyle. In the innovation ecosystem, new alliance networks are formed not only by medical device companies and pharmaceutical companies, but also by information and communications technology companies and start-ups. While understanding and utilizing the network structure is important to increase the competitive advantage of companies, there is a lack of previous research describing the structure of alliance networks and the factors that lead to their formation in digital health. ObjectiveThe aim of this study was to explore the significance of alliance networks, focusing on digital health for diabetes, in effectively implementing processes, from the research and development of products or services to their launch and market penetration. MethodsFirst, we listed the companies and contracts related to digital health for diabetes, visualized the change in the number of companies and the connections between companies in each industry, and analyzed the overview of the network. Second, we calculated the degree, betweenness centrality, and eigenvector centrality of each company in each year. Next, we analyzed the relationship between network centrality and market competitiveness by using annual sales as a parameter of company competitiveness. We also compared the network centrality of each company by industry or headquarters location (or both) and analyzed the characteristics of companies with higher centrality. Finally, we analyzed the relationship between network centrality and the number of products certified or approved by the US Food and Drug Administration. ResultsWe found the degree centrality of companies was correlated with an increase in their sales. The betweenness and eigenvector centralities of medical devices companies located in the United States were significantly higher than those outside the United States (P=.04 and .005, respectively). Finally, the degree, betweenness, and eigenvector centralities were correlated with an increase in the number of Class III, but not of Class I nor II, medical device products. ConclusionsThese findings give rise to new insights into industry ecosystem for digital health and its requirement and expect a contribution to research and development practices in the field of digital health

Innovation Process and Industrial System of US Food and Drug Administration–Approved Software as a Medical Device: Review and Content Analysis

BackgroundThere has been a surge in academic and business interest in software as a medical device (SaMD). SaMD enables medical professionals to streamline existing medical practices and make innovative medical processes such as digital therapeutics a reality. Furthermore, SaMD is a billion-dollar market. However, SaMD is not clearly understood as a technological change and emerging industry. ObjectiveThis study aims to review the landscape of SaMD in response to increasing interest in SaMD within health systems and regulation. The objectives of the study are to (1) clarify the innovation process of SaMD, (2) identify the prevailing typology of such innovation, and (3) elucidate the underlying mechanisms driving the SaMD innovation process. MethodsWe collected product information on 581 US Food and Drug Administration–approved SaMDs from the OpenFDA website and 268 company profiles of the corresponding manufacturers from Crunchbase, Bloomberg, PichBook.com, and other company websites. In addition to assessing the metadata of SaMD, we used correspondence and business process analysis to assess the distribution of intended use and how SaMDs interact with other devices in the medical process. ResultsThe current SaMD industry is highly concentrated in medical image processing and radiological analysis. Incumbents in the medical device industry currently lead the market and focus on incremental innovation, whereas new entrants, particularly startups, produce more disruptive innovation. We found that hardware medical device functions as a complementary asset for SaMD, whereas how SaMD interacts with the complementary asset differs according to its intended use. Based on these findings, we propose a regime map that illustrates the SaMD innovation process. ConclusionsSaMD, as an industry, is nascent and dominated by incremental innovation. The innovation process of the present SaMD industry is shaped by data accessibility, which is key to building disruptive innovation