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Expanding Access to Precompetitive Research in the United States and Japan: Biotechnology and Optoelectronics Office of Japan Affairs Office of International Affairs National Research Council NATIONAL ACADEMY PRESS Washington, D.C. 1990

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NOTICE: The project that is the subject of this report was approved by the Goveming Board of the National Research Council, whose members are drawn freon the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for Heir special competences and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Frank Press is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal govemment. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Robert M. White is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. Ibe Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Samuel O. Thier is president of the institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal govemment. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Frank Press and Dr. Robert M. White are chairman and vice-chairman, respectively, of the National Research Council. This report is based on work supported by the Sloan Foundation and the National Science Foundation under Grant No. INT-8904494. Any opinions, findings, and conclusions or recommendations expressed in this publication are those of the authors and do not necessarily represent the views of the sponsoring agencies. Available in limited supply from: Office of Japan Affairs National Research Council 2101 Constitution Avenue, N.W. Washington, DC 20418 Printed in the United States of America

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OFFICE OF JAPAN AFFAIRS Since 1985 the National Academy of Sciences and the National Academy of Engineering have engaged in a series of high-level discussions on advanced technology and the international environment with a counterpart group of Japanese scientists, engineers, and industrialists. One outcome of these discussions was a deepened understanding of the importance of promoting a more balanced two-way flow of people and information between the research and development systems in the two countries. Another result was a broader recognition of the need to address the science and technology policy issues increasingly central to a changing U.S.-Japan relationship. In 1987 the National Research Council, the operating arm of both the National Academy of Sciences and the National Academy of Engineering, authorized first-year funding for a new Office of Japan Affairs (OJA). This newest program element of the Office of International Affairs was formally established in the spring of 1988. The primary objectives of OJA are to provide a resource to the Academy complex and the broader U.S. science and engineering communities for information on Japanese science and technology, to promote better working relationships between the technical communities in the two countries by developing a process of deepened dialogue on issues of mutual concern, and to address policy issues surrounding a changing U.S.-Japan science and technology relationship. Staff Martha Caldwell Harris, Director Donna J. Audntsh, Research Associate Karen Duffy, Research Intem Maki Fife, Program Assistant Sabina Javits, Consultant . . .

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COMMITTEE ON JAPAN The Committee on Japan was established to advise the Office of Japan Affairs on its programs and to assist in defining the contribution that the Academies can make in enhancing U.S. interests through science and technology exchange with Japan. Justin Bloom Technology Intemational, Inc. Lewis Branscomb Harvard University Mac Destler University of Maryland Ellen Frost United Technologies Corporation Lester Krogh 3M Company James Merz University of Califomia, Santa Barbara Yoshio Nishi Hewlett-Packard Company Terutumo Ozawa Colorado State University Ex Officio Members: Gerald Dinneen, Foreign Secretary, National Academy of Engineering William Gordon, Foreign Secretary, National Academy of Sciences 1V Harold Brown (Chairman) Johns Hopkins Foreign Policy Institute Daniel Okimoto (Vice-Chairman) Stanford University Susan Pharr U.S.-Japan Relations Program, Reischauer Institute John D. Rockefeller IV U.S. Senate Richard Samuels MIT-Japan Science and Technology Program Roland Schmitt Rensselaer Polytechnic Institute Hubert J. P. Schoemaker Centecor, Inc. Ora Smith Conductus, Inc. Susumu Tonegawa Massachusetts Institute of Technology

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PARTICIPANTS "Expanding Access to Precompetitive Research in the United States and Japan: Biotechnology and Optoelectronics" January 22-23, 1990 United States Gerald Dinneen (Cochairman) National Academy of Engineering Robert Burmeister Saratoga Technologies Ronald Cape Cetus Corporation James Merz University of California, Santa Barbara Robert Nerem Georgia Institute of Technology Richard Samuels Massachusetts Institute of Technology Hubert Schoemaker Centocor, Inc. Japan Michiyuki Uenohara (Cochairman) NEC Corporation Isao Karube Research Center for Advanced Science and Technology, University of Tokyo Fumio Kodama National Institute for Science and Technology Policy Takanori Okoshi Research Center for Advanced Science and Technology, University of Tokyo Terumichi Ono Toray Industries, Inc. Seichi Takeuchi Sumitomo Electric Industries, Ltd. Masao Tanaka Marine Biotechnology Institute Katsuhiko Masuda National Institute of Science and Technology Policy

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Preface In January 1990 the Office of Japan Affairs of the National Research Council and the Japan Society for the Promotion of Science (JSPS) jointly held the second of a series of meetings on the subject of "symmetrical access" to research and development (R&D) in Japan and the United States. Recognizing structural and systemic differences that have created imbalances, the meeting was organized to examine in more detail the circumstances of "access" in each of two important fields and to explore new approaches to address the problems. Biotechnology and optoelectronics were selected as two important areas in which precompetitive research can theoretically benefit both countries and where the competitive circumstances are different. Participants from both countries sought to identify opportunities for collaboration in precompetitive research, keeping in mind the realities of market competition in the application of technologies to products. The meeting was a sequel to a workshop held in spring 1988 on the general concept of symmetry in R&D and the specific structural differences between the two countries that pose obstacles to symmetrical access. The meeting on "Expanding Access to Precompetitive Research in the United States and Japan: Biotechnology and Optoelectronics" brought together experts in biotechnology, optoelectronics, and science policy from both countries to examine the current R&D structure in each country and to develop potential means for expanded access and cooperation. The East-West Center acted as a cooperating organization. This report, prepared by the Office of Japan Affairs, is a synthesis of the major ideas garnered from the two-day meeting. It is not a proceedings of the meeting, nor does it represent the consensus of the participating members. The report also covers a preliminary survey conducted by the Office of Japan Affairs as well as insights gained by U.S. participants and National Research Council staff in preparing for the meeting and in reflecting on He discussions. . . V11

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