Summary Objectives In Japan, strong reimbursement pricing control measures for existing medical device products have rendered new medical device reimbursement pricing critical for manufacturers. Few studies have been conducted on this aspect; therefore, this paper (1) clarifies whether evaluation of innovation is appropriate or not and (2), if not, investigates its background. Methods In this research, 319 C1/C2 government decisions for new medical devices in the 10 years from April 2008 to March 2018 were analyzed. Evaluation of innovation was considered in terms of the reimbursement price, as well as the foreign average price ratio. Results Considering the degree of evaluation of innovation, the average premium rate for the similar function category comparison method was 10.2% during 2008 to 2010 (this means the newly set reimbursement price was 10.2% higher than that of corresponded exiting categories); it declined consistently thereafter, to 3.2% during 2016 to 2018. Moreover, evaluation of innovation by the foreign average price (FAP) ratio was 1.04 in 2008 to 2010, consistently decreasing to 0.88 in 2016 to 2018. The period from product approval to the non‐Special Designated Treatment Material (non‐STM) (a part of technical fee) price listing is much longer than that of the STM (own reimbursement price) listing. Conclusion Several reasons were considered for the decline in innovation evaluation: (1) the lowering of the FAP upper limit ratio, (2) the possibility that there was not enough evidence at the time of price listing, (3) and the more rigorous standards to create a new separate functional category. However, some aspects were attributable to reimbursement system reform.

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The purpose of this research is to create an optimal strategy to convert the Japanese medical device industry into a highly competitive power in the field by analyzing its corporate activity ． In this second report ， we are analyzlng the corporate activity of the Japan and U ． S． Companies in the period from l999 to 2003， the influence that the devel 〔 〕 ped products give to profit and risk was studi − ed ． Multiple linear regression analysis was applied to l4 Japan and U ， S． Companies of medical devices ． In the first analysis ， a dependent variable was the Operating Profit ， Earnings bef ｛ ) re income taxes， and explanatory variables inc ！ uded ； quantity of innovadve products， high risk products and low risk products． In the second analysis ， a dependellt variable was number of recall of products， and explanatory variables included ：number of innovative products ， high risk products and low risk products ， As a result of the first analysis ， it was revealed that the number of innovative products give a positive correlation with the Operating Profit ． As a result of the second analysis ， it was revealed that the number of innovative products give a positive correlation with the number of recall of products ． It was suggested by these two arlalytical results that the cornpanies ， where the strong safe security system coexists with high creatbn power of the innovative products ． maintain a high competitive power ． In addition ， it is necessary to research 匸 he product development process to create the innovative products ．

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