Toshiaki Taira, Chief Operating Officer, Okinawa Industry Promotion Public Corporation, Japan

Current status and opportunity in Okinawa,

and expectations to OIST

Oct.6, 2010

About Okinawa Industry Promotion Public Corporation

• Established ： December.1971• Basic fund ： \36,100,000• Number of staff: about 70• Business overview　 Okinawa Industry Promotion Public Corporation

(OIPPC)is the organization that represents Okinawa and plays role as a center that support Okinawa industry development. OIPPC is 100% invested by Okinawa Prefecture.

OIPPC aims to contribute to industrial development of Okinawa in the areas with greatest potential impact for Okinawa by strategies below;

1) support the small to mid-sized firm in Okinawa by

modernization of facilities, mediating financing, exit to new sector and new business, business matching, business development to nation-wide or global.

2) support the new industry creation in Bio, IT and environment sector by supporting R&D in entrepreneurial companies in Okinawa.

Organization

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総務部

理事長・副理事長

経営支援部

中小企業支援ｾﾝﾀｰ

専務理事

産業振興部

事務局長

総務課

融資課

経営支援課 産業振興課

海外・ビジネス支援課

県　出　向： 14名

職員：ﾌﾟﾛﾊﾟｰ 13名民間出向： 5 名嘱託 賃金：･ 42 名合計　　　　 74名

●設備貸与・機械類貸与事業●融資あっ

せん事業

●海外事務所活動支援事業

●

海外事務所管理運営事業

●福建・沖縄友好会館運営

　

事業●

沖縄県内中小企業マー

ケティング支援事業

●中小企業総合支援事業

●

建設業活性化支援事業

●経営サポート事業

●情報化支援事業

●下請かけこみ寺事業

●

離島活性化総合支援モデル事業

　

　　　　　　 地域連携推

進　　　　ﾌﾟﾛｼﾞｪｸﾄﾁｰﾑ

職員の内訳職員の内訳

●おきなわ新産業創出投資事業

●おきなわ新産業創出研究開発支援事業

　　　　　　　　　　　

　　　　　　　　　　　

●沖縄イノベー

ション創出事業

●ベンチャー

育成連携事業

●

インキュ

ベー

ションサポー

ト事業

●

産業人材育成事業

●新産業創出人材育成事業

１． Okinawa’s current status and challenges（ Economic activities and industrial structure,

decreasing share of public expenditure, severe employment condition,

Okinawa’s geographical superiority ）

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沖 縄 九州６県 沖縄 九州６県 沖縄 九州６県

第１次産業 7.3 13.8 3.6 7.0 1.9 3.4

第２次産業 27.9 28.7 21.4 29.2 11.8 23.8

　 （製造業） 10.9 15.4 6.4 17.9 4.1 17.0

（建設業） 16.4 12.1 14.6 10.8 7.5 6.5

第３次産業 67.3 60.2 77.8 66.6 90.3 75.8

47昭和 年 平成元年 18平成 年

Gross Prefectural Product Rate by industry （ comparison to average of 6 prefectures in Kyushu excluding Fukuoka ） Data: “Prefectural Economic Accounting” from the Okinawa Prefectural Government Statistics Division

Employed population by industry （ comparison to average of 6 prefectures in Kyushu excluding Fukuoka) Data: “National Census” from the Ministry of International Affaires and Communications 　　　

（１） Economic activities which take advantage of regional characteristics and unique industrial structure

○Okinawa Industrial structure (2006) ：Primary Industries 1.9%, 　 Secondary Industries 11.8% 　 Tertiary Industries 90.3%

Industrial structure reflects 2 main factors below; - the economic activities of private sector which maximize regional characteristics - the demand fluctuation such as decrease in public projects

沖縄 九州６県 沖縄 九州６県 沖縄 九州６県

第１次産業 13.9 27.4 9.3 16.1 5.9 10.9

第２次産業 20.8 23.2 19.8 26.1 16.3 22.3

　 （製造業） 8.0 14.0 6.3 15.7 4.9 12.4

（建設業） 12.7 8.8 13.4 10.2 11.3 9.8

第３次産業 65.3 49.5 70.7 57.6 76.3 66.1

50昭和 年 平成２年 17平成 年

1. Primary Industries

2. Secondary Industries Manufacturing Construction

3. Tertiary Industries

1. Primary Industries

2. Secondary Industries Manufacturing Construction

3. Tertiary Industries

20061972 1989

20051975 1990

ＯＫＩＮＡＷＡ

ＯＫＩＮＡＷＡ

ＯＫＩＮＡＷＡ

ＯＫＩＮＡＷＡ

ＯＫＩＮＡＷＡ

ＯＫＩＮＡＷＡ

ＫＹＵＳＹＵ

ＫＹＵＳＹＵ

ＫＹＵＳＹＵ

ＫＹＵＳＹＵ

ＫＹＵＳＹＵ

ＫＹＵＳＹＵ

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○The proportion of military-related receipts of Gross Prefectural Income has declined In 1972 　 ： 15.5% （ 77.7 billion yen ）In 2006 ： 5.4% （ 215.5 billion yen ）

○Current land use after reversionactive economic activities which lead prefecture economy (e.g. Area of Naha new urban center)

○Challenge in the futuretime lag – it takes long time to reach productivity as high as the land itself has.

Change in base revenues (revenues generated by military-related transaction)

（２） Declining economic dependency on base

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1972 75 80 85 90 95 2000 05 060

2

4

6

8

10

12

14

16

（億円） （％）

基地関連収入（左目盛）

県民総所得（左目盛）

県民総所得に占める基地関連収入の割合　 　 　 　 　 　 　 （右目盛）

Proportion of military-related receipts of Gross Prefectural Income(right-hand scale)

Gross Prefectural Income(left-hand scale)

Military-related revenue (left-hand scale)

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（３） Declining trend in share of public expenditure○Proportion of public expenditure in prefecture economy

41.6% in 1999 -> 35.6% in 2006

18 20平成 年度都道府県別公的支出額／一人あたり支出額（全国上位 位まで）

　800

　900

　1,000

　1,100

　1,200

　1,300

　1,400

島根

県鳥

取県

高知

県秋

田県

北海

道山

梨県

鹿児

島県

徳島

県福

井県

新潟

県宮

崎県

青森

県東

京都

沖縄

県長

崎県

大分

県佐

賀県

和歌

山県

石川

県山

形県

○Okinawa promotion and development project budget443.0 billion yen in1998 -> 216.6 billion yen in 2009 　 be declining yearly

○Public expenditure per capita14th (Prefecture Ranking) in 2006 　 Not distinctively high

　 be declining yearly

2006 public expenditure by prefecture / amount per Capita (top 20 in nationwide)

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（４） Improving social capital

○Comprehensive measures based on “the Okinawa Development and Promotion Plans” have been implemented to fill the gap in social capital between Okinawa and mainland Japan since the Okinawa reversion to Japan in 1972.

○Certain progress of social capital such as road, port and harbor, housing, education institution, medical facility and dam

Need to advance “strategic social capital development that will leverage the Okinawa progress” towards the Asia Pacific exchange center formation

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（５） Severe employment condition and rich labor force

Labor population increase is bigger than job opportunities, while job opportunities has increased. Therefore, unemployment rate has not improved. (-> NEXT SLIDE )

Current status of employment ○Number of people employed (comparison between 1972 and 2008)

・ Okinawa has increase with index + 65% surpassing that of Nationwide +24% ○Employed rate (comparison between 1972 and 2008)

・ Okinawa has increase with index + 73% surpassing that of Nationwide +27%

home-oriented ○UJI turn rate （ 2005 ）

・ Okinawa UJI turn rate is 49.0% compared to average 0.9% in local prefecture (excluding urban area)

Important resource from the perspective of regional development under the circumstance of decreasing population and low birth rate and longevity in Japan

Change in the Unemployment rate

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Data: “Labor Force Survey” from the Ministry of Internal Affairs and Communications, “Labor Force Survey” from the Okinawa Prefectural Government Statistics Divisions.

(1,000)

Number of unemployed

Okinawa PrefectureNationwide

*left-hand scale indicates the # of unemployed, right-hand scale indicates the unemployment rate

%

‘72 ‘75 ’77 ‘80 ‘85 ’86 ‘87 ‘88 ‘89 ‘90 ’91 ‘92 ‘93 ‘94 ‘95 ‘96 ’97 ‘98 ‘99 ‘00 ‘01 ‘02 ’03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 Year

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（６） Prefectural Income Per Capita○Gross Prefectural Income (2006 F/Y)

・ 36th in nationwide ranking （ expansion of regional industry such as tourism and resort industry ）

○Prefectural Income Per Capita (2006 F.Y)・ Last place in nationwide ranking （ high growth rate of population, while there is industry development, etc.)　 Prefectural Income Per Capita in 2006 (Top 10/ Last 10 in Nationwide)

( 10上位 位）

東京都 61,020,110 1 12,659,172 1 4,820 1 11,192 5,452 1

愛知県 25,645,144 4 7,308,420 4 3,509 2 6,230 4,116 2

静岡県 12,868,400 10 3,797,263 10 3,389 3 3,268 3,938 4

滋賀県 4,655,442 23 1,388,833 30 3,352 4 1,176 3,959 3

神奈川県 28,754,894 2 8,829,837 2 3,257 5 7,636 3,766 5

三重県 5,979,857 19 1,872,922 22 3,193 6 1,609 3,717 6

栃木県 6,256,067 15 2,015,197 20 3,104 7 1,733 3,610 7

広島県 8,896,619 11 2,874,622 12 3,095 8 2,474 3,596 8

大阪府 27,174,222 3 8,814,722 3 3,083 9 7,597 3,577 9

富山県 3,344,842 30 1,109,983 38 3,013 10 962 3,477 10

10（下位 位）

島根県 1,794,754 45 736,544 46 2,437 38 638 2,813 38

鳥取県 1,463,218 47 604,095 47 2,422 39 522 2,803 39

熊本県 4,403,183 24 1,836,324 23 2,398 40 1,575 2,796 40

岩手県 3,224,704 32 1,374,838 31 2,346 41 1,190 2,710 41

秋田県 2,646,841 39 1,133,794 37 2,334 42 996 2,657 43

鹿児島県 3,979,294 26 1,743,001 24 2,283 43 1,495 2,662 42

高知県 1,712,801 46 789,450 45 2,170 44 690 2,482 47

長崎県 3,165,292 33 1,466,426 26 2,159 45 1,258 2,516 45

宮崎県 2,468,024 40 1,148,076 36 2,150 46 983 2,511 46

沖縄県 2,858,381 36 1,368,378 32 2,089 47 1,117 2,559 44

順位 人口（人）

一人あたり県民所得（千円）

順位 順位15歳以上

人口（人）

15歳以上人口あたり県民所得

（千円）順位都道府県 県民所得

（百万円）Prefecture Gross income

(\ 1,000,000) population

Income Per capita(\ 1,000)

Populationover 15 years old

Income per over 15 years old

(Top 10)

(Last 10)

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TAIPEI 630Km SHANGHAI 830Km

BEI Ｊ ING 1,400Km?SEOUL 1,260Km

HONG KONG 1,440KmTOKYO 1,550KmOSAKA 1,200Km

OKINAWAMAINLAND

Where is Okinawa? 　～Ｇｌｏｂａｌ～

MIYAKO Island

ISHIGAKI,IRIOMOTE

Islands

YONAGUNI Island

OKINAWA Main Land

IZENA,IHEYA Islands

BEIJING

DAITO Island

SHANGHAI HONGKONG

TAIPEI

SEOUL

ＴＯＫＹＯ

ＯＳＡＫＡ

ＦＵＫＵＯＫＡ

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Okinawa location 　～ focus on East Asia ～

２． OKINAWA 21st century Vision

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What is OKINAWA 21st century VISION○”OKINAWA 21st century VISION” is long term plan of Okinawa prefecture. It draw

out ideal future Okinawa of approximately 20 years time, based on citizen’s opinions and including directions for realization of each subjects.

○Citizen’s opinion have been collected through questionnaires, contest of essay by high school students, workshop, from each region and from each sector.

○ Citizen’s opinion have been summarized and categorized into 5 subjects for ideal future Okinawa.

○Five ideal future Okinawa subjects were discussed in the special committee and in the prefectural Diet. It is finally formed in March 2010.

First ever long term plan created by citizen’s involvements and cooperation.

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5　subjects　for　ideal　future　Okinawa

　　（１）（１） Okinawan nature, history, traditions and culture to be Okinawan nature, history, traditions and culture to be conserved as important basics for Islands’ lifeconserved as important basics for Islands’ life　　（（ Natural environment, Historical culture, landscapeNatural environment, Historical culture, landscape ））

　　（２）（２） Spiritual richness, Safety and Security compose bases for Spiritual richness, Safety and Security compose bases for Islands’ lifeIslands’ life　　（（ SocialSocial WelfareWelfare ・・ Medical careMedical care ・・ Health careHealth care ））

　　 （３）（３） Prosperous Islands full of Hope and DynamismProsperous Islands full of Hope and Dynamism　　（（ Economic & Industrial endeavorEconomic & Industrial endeavor ・・ Land use of Ex US basesLand use of Ex US bases ・・ Remote Remote IslandIsland ））

　　（４）（４） Islands for interchange and mutualismIslands for interchange and mutualism　　（（ interchangeinterchange ・・ mutualismmutualism ・・ peacepeace ））

（５）（５） Islands for exercising one’s abilities to realize its full potentialIslands for exercising one’s abilities to realize its full potential

　　（（ EducationEducation ・・ Human resource developmentHuman resource development ））

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（３）（３） Prosperous Islands full of Hope and Dynamism Prosperous Islands full of Hope and Dynamism ●Basic assignments of the subject

1)Reviving ”Van koku shin ryoh”(International exchange center of Ryukyu kingdom era) of the 21st century・ Incorporating developing Asian economies into Okinawa（ Creating Networks of Asia-Pacific regions, Creating International aviation network, International competitiveness of Naha international airport, etc ）

2)Promoting industry based on community・ Sustainable growth of the local industry（ agriculture and fisheries, manufacturing industries→Advancement of the technology, Improvement of management culture, reducing relatively high cost of air and marine transport , etc ）

3)Creating New leading industry for Okinawa・ Environment, Tourism, IT, Bio, and the health care/high-level medical service linked with those fields are the areas for promising next generation industries（ Quantitative increase of Tourism and IT industry, Enlarging added-value of these two industries, Expanding region assignment system, Creating new industry by making OIST as the core assets , etc ）

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４ )Creating employment and Securing manpower・ Securing employment, Improving working environment（ High unemployment rate in young adult segment, mismatch in the labor market, reforming awareness for working, employment measure for civilian worker of the US military, etc ）

５ )Making good use of remote islands・ Arrangement for continuous use of regional resources, Building human resources of the regions（ Falling birthrate and the aging population/population decline, Lack of human resource for the region, relatively high cost of transport, etc ）

６ ) Land use of Ex US basesLand use of Ex US bases・ Land use of the ex-US bases for the development of entire Okinawa（ Loss of profit by the existence of US bases, New legal system for promoting land-use of the ex-US bases, etc ）

７ )Ensuring financial resources・ Improving and strengthening policy-based finance（ Capital needs of the future large project, Perpetuating “Okinawa Development Finance Corporation”, etc ）

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●Promotion Strategy1) Reviving ”Van koku shin ryoh”(International exchange center of Ryukyu kingdom

era) of the 21st century・ Maintenance and improvement of IT infrastructure, airport and seaport・ Streamlining network of domestic and international transport, cost cutting・ Early implementation of Asia Gateway for mutual evolution, etc

Envisaged key measures and projectsExpansion of Naha airport runway, Expansion of international and domestic terminals, Organization and function of “Okinawa Trade Public Corporation” to be established, Consolidating international information and communication HUB function, Okinawa IT “shin ryoh” park, Maintenance and expansion of GIX(Global Internet eXchange), Initiative science and technology base

2) Promotion of local industry for continuous development ・ Creating Okinawa brand of agricultural product, Creation of new added value・ Promoting local industries of manufacturing, medical care, welfare service, nursing care・ Breeding and supporting local industry based on competitive resources, etcEnvisaged key measures and projects

Creating leading production region, Strengthening delivery and sales and processing, Collaboration with food and tourism industries, Enhancement of research and development, etc

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３ )Okinawa new leading industry development・ Formation of a destination resort reaching world standards ・ Sophisticating and diversifying IT industry

　　　　　　　・ Guiding new cluster of air/sea-side industries by forming the international logistics hub in Naha airport and Naha port, strengthening international competitiveness

　　 ・ Creating new industry with applying front-line technology through “intellectual cluster”・ Promoting frontiers in agriculture, forestry and fisheries industry・ Promoting environment-related industries such as renewable energy ・ Promoting ocean industry

●Aim to create new industries that apply cutting-edge technology in the fields of life science, medical/health by promoting to form “intellectual cluster ” that work with domestic/international R&D institutions, companies, having OIST as core center

　　・ Development of the R&D center of science and technology through cooperation with OIST and R&D institutions in Okinawa

　　・ Intellectual center development, global network and support for companies in Okinawa

　　・ Formation of comfortable living environment in the integrated with resort function such as housing, medical and child education

　　・ Attracting life science industry by upgrading of science park or incubation institution in cooperation with OIST, and creates venture companies

３． How to proceed based on 21st century vision?

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Direction of development 　 ○ How to develop industry

・ Steady development in agricultural and fishery industries, manufacturing industry that are deep-rooted in local area and become the basis for sustainable development as islands prefecture

　　　　　・ Advancement and new expansion in tourism and resort industries, information-communication related industry・ By using ANA international logistics hub that locates in Naha airport since the end of last year, new market development (such as China) in manufacturing industry (agricultural and fishery industries, manufacturing industry) and creation of new industry and new business

　 ・ Development of innovative industry (IT, Health and Bio, Environment) by university-industry-government cooperation with OIST as core institution

　 Development with new value creation in well-balanced way between Development with new value creation in well-balanced way between Okinawa’s island economic characteristics, natural environment and Okinawa’s island economic characteristics, natural environment and domestic-international exchange domestic-international exchange

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Okinawa Health Biotechnology Research & Development Center (Uruma-city)

Okiawa Prefecture Industrial Technology Center (Uruma-city)

Tropical Technology Center, Ltd.(Uruma-city)

Okinawa Institute of Science and technology(Onna-son)

University of the Ryukyus, Okinawa TLO (Nishihara-cho)

Okinawa National College of Technology (Nago-city)

Towards Okinawa Bio cluster developmentTowards Okinawa Bio cluster development

Naha Airport(Naha-city)

Okinawa Industry Promotion Public Corporation (Naha city)

Soft Coral

Hirami Lemon

A diversity of subtropical biological

resources

Ukon (Turmeric)

LandLandMarineMarine

Papaya

Choumeisou

Mozuku

Kuwansou

Marine Sponge

Okinawa major Biological ResourcesOkinawa major Biological Resources

Kubiresuta Kumisukuchin (Cats whiskers)

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Okinawa Health Food

【 Major health food 】Ukon related health foods, Moromi (fermentation broth) vinegar,

Hirami Lemon juice, Guava tea, Salt, Mozuku related health foods, etc.

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Role of BiotechnologyRole of Biotechnology

Advancement of prefecture’s industry and creation of new industries

Information related

industryBiotechnology

Environment industry

Agricultural and Fishery industries

Health service

industry

Cosmetics industry

Health and Bio industries

Health and Bio industries

Awamori industry

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Bio Research & Development landscape in OkinawaBio Research & Development landscape in Okinawa

・ Okinawa Health Biotechnology Research & Development Center ・ Okinawa Prefectural Research & Development Center (6 R&D centers - industrials, agriculture, livestock, fishery oceanography, deep seawater, forest resource) ・ University of the Ryukyus Center of Molecular Biosciences・ Tropical Technology Center, Ltd.

・ Okinawa Health Biotechnology Research & Development Center ・ Okinawa Prefectural Research & Development Center (6 R&D centers - industrials, agriculture, livestock, fishery oceanography, deep seawater, forest resource) ・ University of the Ryukyus Center of Molecular Biosciences・ Tropical Technology Center, Ltd.

R&D institutions

・ Okinawa Institute of Science and technology・ University of the Ryukyus・ Okinawa National College of Technology

・ Okinawa Institute of Science and technology・ University of the Ryukyus・ Okinawa National College of Technology

Education and Research institution

・ The Okinawa Development Finance Corporation support on investment and loan 　　

・ The Okinawa Development Finance Corporation support on investment and loan 　　

・ Okinawa Industry Promotion Public Corporation　① Okinawa New Industry Creation Funding Project　② Okinawa Innovation Creation Project・ Okinawa General Bureau (cabinet office, Government of Japan) R&D support project, etc.

・ Okinawa Industry Promotion Public Corporation　① Okinawa New Industry Creation Funding Project　② Okinawa Innovation Creation Project・ Okinawa General Bureau (cabinet office, Government of Japan) R&D support project, etc.

Other support

R&D support system

Okinawa noted for longevity

PlentifulBiological resources

Bio entrepreneurial venture

　　Assistance

・ return of investment

・ capital gain・ income gain

Financing

・ Financing・ Management

・ Decision of the investment enterprises

・Management expenses・ Success fee・ distribution

distribution

Thoroughgoing　support　of　specialist　to　the　investment　enterprises

Ｉｎｖｅｓｔｍｅｎｔ

Growth

Investors of Private enterprises ※Size　of　investment　is　2.5　hundred　　　millionPY　with　GP.

Okinawa prefecture Government

Cooperation

Inviting enterprisesEmployment creation

New Industrial Cluster

Thoroughgoing　support　of　specialist　to　the　entrepreneur　of　Research　Development　subsidy　Project　

Venture company

Venture companyInvestment to ： IT /Bio technology/ Environment

Venture companyAssistance ： Research development venture

Growth

Support

Okinawa Industry Promotion Public Corporation■Investment　size　・ 7　hundred　and　50　million　yen■Raising　and　finding　of　an　investment　・ finding　and　raising　of　venture　　　　　company　・ Hands-on　support　to　assistance　　　　company　・ Hold　seminar　for　venture　　company■Research　Development　Subsidy　　　　　　Project　・ assistance　rate　　：within　3　quarters　・ subsidy　amount： 50　million　yen　　　　(maximum)　per■Assistance　of　　LP　management　fee

Management fee

Venture Capital Limited

partnership for investment

1 billion

Limited Liability Partnership (LP)

Outline　of　Okinawa　New　Industry　Creation　Investment　Project　

Government of Japan subsidy Investment

partnership (GP) Okinawa Human Capital

Inc.

IPO

Expansion of business

scale

【 Okinawa Health Biotechnology Research and Development Center 】　・ Tropical Plant Resources Institute, Inc.　・ HiPep Laboratories　・ South Product Co., Ltd.　・ HaploPharma Inc.　・ DNA Bank Retail Inc.　・ Lequio Pharma Co. Ltd.　・ EM research Organization, Inc 　　　　

【 Okinawa Industry Support Center 】　　・ Axiohelix Co. Ltd.　　・ Somnoquest Co. Ltd.　　・ GenoLac BL Corporation　　・ OP Biofactory Co. ltd.

・ The institute of biological Resources

・ Sun Okinawa Co. Ltd.

・ Ryuku Bio Resource Co. Ltd.

【 Tropical Technology Center Ltd. 】　・ C. I. Bio Incorporated 　・ R-BIO Co., LTD

・　 OP Biofactory Co. ltd.

【 University of Ryukyus 】　・　 GenoLac BL Corporation

・ she’s Co., Ltd.

・ AMBiS Corporation

・ Lequio Pharma Co. Ltd.

・ Coral Bio Tech KK

・ Bio21 Co. Ltd・ Uruma-Bio Co. Ltd

Kume Island・ Point Pyuru ltd・ Bio marine Corporation

Major Bio company, R&D facility and support institutions in Okinawa

【 Okinawa Institute of Science and Technology 】

【Okinawa　National　College　of　Technology】

Ｔｈａｎｋ ｙｏｕ！

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