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 .