Japanese biotechnology: Government,corporations, and technology transfer

In the newly emerging field of biotechnology, Japan so far is generally considered to be lagging somewhat behind the US. Through the judicious application of industrial policy to encourage the growth of the industry, however, Japan is rapidly gaining on the US lead. Joint ventures between large Japanese Companies specializing in areas such as chemicals and food and new American biotechnology companies play a key role in the technology-transfer process. This paper analyzes the dynamics and potential of Japanese efforts in biotechnology. Certain structural features of the Japanese economy, such as extensive corporate financial resources, traditional fermentation expertise, and, in particular, government policy to encourage high-technology research and development. serve to increase Japanese competitiveness in the field.