High-Tech Start-Ups in Japan: The Case of the Biotechnology Industry

Abstract

This chapter explores the high-tech start-ups in the biotechnology industry in Japan. I provide evidence that many biotechnology start-ups originate from universities and that the emergence of some biotechnology start-ups is significantly associated with R&D activities in universities. I also find that emerging stock markets in Japan play a critical role in equity financing for biotechnology start-ups. Moreover, I examine whether biotechnology start-ups improve performance by going public. The results reveal that biotechnology start-ups increase equity financing, although they do not improve their performance after initial public offering.