Transformative technology and institutional transformation: Coevolution of biotechnology venture firms and the institutional framework in Japan

Japan is developing a national strategy for biotechnology, which it sees as a transformative technology of strategic importance. Significant institutional transformation has occurred, including changes to the legal structure of universities, partly in an effort to enhance technology transfer. These and other institutional changes are proving conducive to entrepreneurship, and have developed alongside an increase in the number of biotechnology venture firms. This paper presents an overview of these institutional transformations, in the light of recent deregulation and legislative changes. It posits that the emergence of bioventure firms, the increase in their number and, arguably, their changing nature are manifestations of the coevolution of organizations with changes to the institutional framework. Finally, it gives examples of several bioventures, based on interviews conducted with the founders and chief scientists in Japan, and reveals some of the salient characteristics of these firms.