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 p...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-01-01
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| Series: | Nutrients |
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| Online Access: | https://www.mdpi.com/2072-6643/15/2/476 |
| _version_ | 1797437964880445440 |
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| author | Keigo Sato Kota Kodama Shintaro Sengoku |
| author_facet | Keigo Sato Kota Kodama Shintaro Sengoku |
| author_sort | Keigo Sato |
| collection | DOAJ |
| description | 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 (<i>p</i> < 0.01, Wilcoxon rank sum test). We also found that companies with FFC products have larger revenue growth (<i>p</i> = 0.01). A multiple regression analysis revealed that FFC product sales increased with in-house clinical testing (coefficient: 26.8, <i>p</i> < 0.0001), diverse active ingredients (coefficient: 7.6, <i>p</i> < 0.001), and the claim of new functions (coefficient: 10.2, <i>p</i> < 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. |
| first_indexed | 2024-03-09T11:30:16Z |
| format | Article |
| id | doaj.art-1c562f5513de4f3da02d2ce774bd5924 |
| institution | Directory Open Access Journal |
| issn | 2072-6643 |
| language | English |
| last_indexed | 2024-03-09T11:30:16Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Nutrients |
| spelling | doaj.art-1c562f5513de4f3da02d2ce774bd59242023-11-30T23:52:22ZengMDPI AGNutrients2072-66432023-01-0115247610.3390/nu15020476Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in JapanKeigo Sato0Kota Kodama1Shintaro Sengoku2Department of Innovation Science, School of Environment and Society, Tokyo Institute of Technology, Tokyo 108-0023, JapanGraduate School of Technology Management, Ritsumeikan University, Osaka 567-8570, JapanDepartment of Innovation Science, School of Environment and Society, Tokyo Institute of Technology, Tokyo 108-0023, JapanRegulation 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 (<i>p</i> < 0.01, Wilcoxon rank sum test). We also found that companies with FFC products have larger revenue growth (<i>p</i> = 0.01). A multiple regression analysis revealed that FFC product sales increased with in-house clinical testing (coefficient: 26.8, <i>p</i> < 0.0001), diverse active ingredients (coefficient: 7.6, <i>p</i> < 0.001), and the claim of new functions (coefficient: 10.2, <i>p</i> < 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.https://www.mdpi.com/2072-6643/15/2/476functional foodsdietary supplementsfoods for specified health usesfoods with function claimsregulationinnovation |
| spellingShingle | Keigo Sato Kota Kodama Shintaro Sengoku Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan Nutrients functional foods dietary supplements foods for specified health uses foods with function claims regulation innovation |
| title | Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan |
| title_full | Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan |
| title_fullStr | Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan |
| title_full_unstemmed | Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan |
| title_short | Optimizing the Relationship between Regulation and Innovation in Dietary Supplements: A Case Study of Food with Function Claims in Japan |
| title_sort | optimizing the relationship between regulation and innovation in dietary supplements a case study of food with function claims in japan |
| topic | functional foods dietary supplements foods for specified health uses foods with function claims regulation innovation |
| url | https://www.mdpi.com/2072-6643/15/2/476 |
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