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Star Scientists, Institutions, and the Entry of Japanese Biotechnology Enterprises

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  • Michael R. Darby
  • Lynne G. Zucker

Abstract

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.

Suggested Citation

  • Michael R. Darby & Lynne G. Zucker, 1996. "Star Scientists, Institutions, and the Entry of Japanese Biotechnology Enterprises," NBER Working Papers 5795, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:5795
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    References listed on IDEAS

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    1. Lynne G. Zucker & Michael R. Darby & Marilynn B. Brewer, 1994. "Intellectual Capital and the Birth of U.S. Biotechnology Enterprises," NBER Working Papers 4653, National Bureau of Economic Research, Inc.
    2. Wooldridge, Jeffrey M., 1991. "On the application of robust, regression- based diagnostics to models of conditional means and conditional variances," Journal of Econometrics, Elsevier, vol. 47(1), pages 5-46, January.
    3. Steven Klepper & Elizabeth Graddy, 1990. "The Evolution of New Industries and the Determinants of Market Structure," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 27-44, Spring.
    4. Zucker, Lynne G. & Darby, Michael R., 1994. "The Organization of Biotechnology Science and Its Commercialization in Japan," Institute for Social Science Research, Working Paper Series qt9qf459t4, Institute for Social Science Research, UCLA.
    5. Lynne G. Zucker & Michael R. Darby & Jeff Armstrong, 1994. "Intellectual Capital and the Firm: The Technology of Geographically Localized Knowledge Spillovers," NBER Working Papers 4946, National Bureau of Economic Research, Inc.
    6. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
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    Cited by:

    1. Rong Qian & Carmen M. Reinhart & Kenneth S. Rogoff, 2011. "On Graduation from Default, Inflation and Banking Crises: Elusive or Illusion?," NBER Chapters,in: NBER Macroeconomics Annual 2010, Volume 25, pages 1-36 National Bureau of Economic Research, Inc.
    2. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
    3. Gatti, Anna & Vendelø , Morten Thanning, 2005. "The Impact of Institutional Settings on Learning Behavior by Venture Capitalists and Start-Ups," Working Papers 2005-5, Copenhagen Business School, Department of Informatics.
    4. Lynne G. Zucker & Michael R. Darby & Maximo Torero, 2002. "Labor Mobility from Academe to Commerce," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 629-660, July.
    5. repec:wsi:ijitmx:v:11:y:2014:i:05:n:s021987701450031x is not listed on IDEAS
    6. Lynne G. Zucker & Michael R. Darby & Yusheng Peng, 1998. "Fundamentals or Population Dynamics and the Geographic Distribution of U.S. Biotechnology Enterprises, 1976-1989," NBER Working Papers 6414, National Bureau of Economic Research, Inc.
    7. Chesbrough, Henry W., 2003. "Environmental influences upon firm entry into new sub-markets: Evidence from the worldwide hard disk drive industry conditionally," Research Policy, Elsevier, vol. 32(4), pages 659-678, April.
    8. Annaleena Parhankangas & Åsa Lindholm-Dahlstrand, 2011. "Spin-offs to stock markets as a complementary form of entrepreneurship: Contrasting US, UK and Japanese experiences," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(5-6), pages 307-335, March.
    9. Yusheng Peng & Lynne G. Zucker & Michael R. Darby, 1997. "Chinese Rural Industrial Productivity and Urban Spillovers," NBER Working Papers 6202, National Bureau of Economic Research, Inc.
    10. Zucker, Lynne G & Darby, Michael R, 2001. "Capturing Technological Opportunity via Japan's Star Scientists: Evidence from Japanese Firms' Biotech Patents and Products," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 37-58, January.
    11. Sambidi, Pramod R. & Harrison, R. Wes, 2006. "Spatial Clustering of the U.S. Biotech Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21360, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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