Table of Contents

Japanese Investment in the World Economy

Japanese Investment in the World Economy

A Study of Strategic Themes in the Internationalisation of Japanese Industry

New Horizons in International Business series

Roger Farrell

This book examines Japanese Foreign Direct Investment (FDI) in the world economy over more than five decades. It provides a unique focus on the internationalisation experience of selected industries, such as forestry, textiles, electronics, motor vehicles, steel and services as well as case studies of individual firms. Japanese Investment in the World Economy is distinctive in that it examines overseas investment by firms in the primary, manufacturing and services sectors over the period in which the Japanese economy became the second largest in the world.

Chapter 14: Internationalisation of Pharmaceuticals

Roger Farrell

Subjects: asian studies, asian business, asian economics, business and management, asia business, international business, economics and finance, asian economics


OVERVIEW Over time, Japan’s changing comparative advantage has seen a decline in domestic production of price sensitive organic and inorganic chemicals and chemical fibres, while the more research-intensive pharmaceuticals industry has expanded because of increased demand for medical services. The Japanese pharmaceuticals industry was an early investor in overseas markets and by 1970 had already established fifteen subsidiaries for the manufacture and importation of its products outside Japan. By 2000, Japanese pharmaceutical companies had a network of 188 overseas salespromoting bases and another hundred subsidiaries involved in overseas manufacture. Expansion by firms such as Takeda and Shionogi into the United States, Europe and other markets led to rising overseas sales. By 2000, overseas sales exceeded ¥1 trillion or 20 per cent of total sales for the 30 leading manufacturers. Overseas employment exceeded 20,000 and 24 overseas research institutes had been founded in the United States, the UK and Germany (JPMA, 2004). Japanese firms initially expanded internationally through licensing agreements, joint ventures and limited overseas production and direct sales. Japanese firms have invested in the US market or sought US joint venture partners as a means of corporate survival and to access technology and finance. Many firms have sought joint ventures because of the considerable costs of developing or modifying pharmaceuticals for the Japanese market, as well as the regulatory constraints to research and innovation (2004). Some of the larger Japanese pharmaceuticals companies, such as Takeda, became more international through overseas acquisitions. By 2004, Takeda had completed a series of...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information