Change or die: The adoption of biotechnology in the Japanese and U.S. pharmaceutical industries

Biotechnology revolutionized drug discovery in the pharmaceutical industry, making adoption a key determinant of long-term survival in the industry. In the U.S., where and when firms adopted biotechnology was largely determined by location of actively publishing academic “star” bio-scientists. The location of “stars” in Japan had a similar effect but significantly lower impact. Restrictions on stars in national universities on holding equity interest or founding roles in new firms (in contrast to their American colleagues) were especially important. In general, Japanese institutions reduced the importance of star scientists in developing a biotechnology industry in Japan compared to the U.S.