Bioentrepreneurship in Japan: Institutional transformation and the growth of bioventures

Abstract

Until recently, Japan had relatively few biotechnology start-up firms and they did not play a significant role in the commercialisation of university research results. This was surprising given the pivotal role ascribed to such firms elsewhere in the commercialisation of biotechnology. However, the system of university–industry collaboration, the management of intellectual property and the role of universities are undergoing significant transformation in Japan. These changes, and others in the financial and labour markets, are proving conducive to entrepreneurship. Consequently, there has been a dramatic increase in the number of biotechnology venture firms hoping to commercialise research results from universities.This paper gives an overview of these institutional transformations in the light of recent deregulation and legislative changes, and describes why 'bioventures' are a viable means to commercialise Japanese biotechnology discoveries. Examples are given of such bioventures, based on interviews conducted with the founders and chief scientists of these firms in Japan. Some of the salient characteristics of these firms are illustrated, including their use of university collaboration and ownership of intellectual property rights.