Organ Technologies/ Riken is government funded they don't need to economize every step of their research, they need to offer results. And even disregarding that you make a lot of baseless assumptions. The hairloss industry is considered to be a unprofitable market, it may seem different to us because we are desperate but the profit from minoxidil and finasteride has been described as disappointing. Furthermore as a government funded institution they wouldn't want to outsource the project to investors 'all over the world'. The complexity of the procedure would make that a lengthy process as well. This isn't a mechanical intervention, I am sure you need extremely specialized equipment and people.
The rest of your post is just talk in layman's terms about a country that is heavily exotified by the West. Yeah, blood type theory is a bogus belief, that has absolutely NOTHING to do with Japanese medical research. It's pseudo-science popular in Japanese women's magazines,completely equivalent to Western horoscopes. You wouldn't denounce all of Western medicine based on the existance of horoscopes. Or even worse: Pseudoscience such as homeopathy which is state funded in many Western countries despite the absolute lack of empirical proof. I think the latter is a much greater affront against the scientific integrity of a culture. So if you discount Japanese medicidal research because of something fringe as blood type theory the same is true twice as much for Western medicine and homeopathy.
Last but not least, Japanese Biomedicine is already leading in a couple of niche fields such as the production of an artifical womb, thanks to their easier regulations.
https://www.tohoku.ac.jp/en/press/artificial_womb_raises_hope.html
I can see the same happening for hairloss.