TY  - JOUR
AU  - Darby,Michael R.
AU  - Zucker,Lynne G.
TI  - Star Scientists, Institutions, and the Entry of Japanese Biotechnology  Enterprises
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5795
PY  - 1996
Y2  - October 1996
UR  - http://www.nber.org/papers/w5795
L1  - http://www.nber.org/papers/w5795.pdf
N1  - Author contact info:
Michael R. Darby
John E. Anderson Graduate School of Management
University of California, Los Angeles
110 Westwood Plaza, Box 951481
Los Angeles, CA 90095-1481
Tel: 310/825-4180
Fax: 310/454-2748
E-Mail: michael.r.darby@anderson.ucla.edu

Lynne G. Zucker
Departments of Sociology & Public Policy
UCLA
Box 951551
Los Angeles, CA 90095-1551
Tel: 310/825-9155
Fax: 310/454-2748
E-Mail: zucker@ucla.edu
AB  - Advance of science and its commercial applications are in a close, symbiotic relationship in the U.S. biotechnology industry. Comparing Japan and the U.S., the structure of the science appears broadly similar, but the organization of the biotechnology industry is quite dissimilar.  In the U.S., some 77 percent of new biotechnology enterprises (NBEs) were dedicated new biotechnology firms (NBFs) started for this purpose while 88 percent of Japanese biotech firms in our data base were subunits of existing firms (NBSs).  We report pooled poisson regression estimates of the relation of NBE births in Japan to top-producing is at work in Japan and America, stars in Japan induce entry of significantly fewer NBEs than in the U.S. and preexisting economic activity plays a greater role.  We find no such significant difference for entry of keiretsu-member and nonmember firms within Japan.  We relate the significant Japan-U.S. differences to Japan's relatively compact geography and institutional differences between the higher-education and research funding systems, the venture-capital and IPO markets, cultural characteristics and incentive systems which impact scientists' entrepreneurialism, and tort-liability exposures. The relative importance of these factors and whether differences in organization of biotechnology result in substantial differences in productivity and international competitiveness are issues for future research.
ER  -