Biotechnology An Industry Comes of Age (1986) / Chapter Skim
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Biotechnology in Japan: A Challenge to U.S. Leadership?
Biotechnology in Japan: A Challenge to U.S. Leadership?
Pages 107-116
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From page 107... ...
trade deficits, the balance of trade in high-technology products inevitably draws special attention. The United States currently enjoys a sizable lead in transforming the This chapter includes material from the presentations by Gary R
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From page 108... ...
As a result, Johnson feels that "the United States may well be flirting with the loss of its current, but in my view fragile, competitive lead." The country expected to be the United States' leading competitor in commercializing genetic engineering is Japan. A major contributor to the strength of the Japanese effort has been the Japanese government's promotion of the field.
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From page 109... ...
"At the 1983 economic summit held in Williamsburg, Virginia, Prime Minister Nakasone astounded the other participants, and particularly, I am told, President Reagan, by spending as much as 15 or 20 minutes attempting to enlighten the President on the nature of recombinant DNA and its prospects for the future, an example of a strategy for industrial development in both Japan and the United States that Prime Minister Nakasone alleged would lead to more harmonious economic relations." But even though the Japanese interest in biotechnology is strong, its origins are relatively recent, according to Saxonhouse. Not until 1980, with the success of Genentech's public stock offering and the Supreme Court's decision allowing the patenting of microorganisms, did the Japanese government begin to expand its previously low-key efforts in biotechnology.
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From page 110... ...
The coordinating apparatus among these government agencies looks no better than the coordinating apparatus that you would probably find in the United States among the many different government agencies here that have an interest in biotechnology research." Also, Saxonhouse believes that governmental support for biotechnol
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From page 111... ...
With a handful of exceptions in the European Economic Community, there are no start-up biotechnology firms outside the United States. In Japan there are more than 200 firms working on the commercial applications of biotechnology, but they are all established firms from traditional industrial sectors.
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From page 112... ...
The Regulation of Biotechnology Many foreign countries, including Japan, generally followed the United States' lead in first establishing guidelines on recombinant DNA research and then gradually easing them as the initial fears proved groundless. However, the guidelines in Japan remain significantly stricter than in the United States, which may prevent some promising research from being done there.
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From page 113... ...
Japan's strict health and safety guidelines regarding genetic engineering may also restrict the patenting of organisms viewed as hazardous. The Availability of Trained Personnel The biotechnology industry has already created some 5,000 to 10,000 jobs in the United States.
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From page 114... ...
International Technology Transfer The imbalance between foreign researchers studying in this country and American researchers studying abroad is one way in which technology moves out of the United States. Another is joint ventures between American and foreign biotechnology firms.
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From page 115... ...
At one extreme, it could adopt some of the more overt targeting practices of foreign countries, including direct development aid to private companies, industrywide assistance through low-interest loans or tax credits, or interagency oversight to coordinate federal policies and industrial R&D. However, it is highly unlikely that many of these options would be accepted in the United States, given the traditional roles of government and industry.
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From page 116... ...
• Clarify and update the tax code to provide incentives to conduct research and development in biotechnology. • Reexamine antitrust regulation to further cooperation among companies conducting basic research in biotechnology.
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