Technology policy and industry growth: the power of local cluster

      This research focuses on technology policy for the regenerative medicine industry in Germany and Japan, and it suggests the effectiveness of Germany policy, which transfers authorization to the local government. Germany and Japan have common points. Both have restricted dealing with ES cell from ethical viewpoint and have firms with high capability of manufacturing, which provide a strong base for them to build competitive advantages in cell culturing equipment. The focus of technology policy in the regenerative medicine industry is categorized into two types: the first focuses on supporting firms which provide final products such as iPS cell. The second focuses on firms which provide the other production process products, such as cell culturing equipment. Common situation shows that German and Japanese firms should emphasize on supplying the latter products. However, while there are only two product marketed in Japan, Germany has already marketed 29 products. This research explains the cause by the different technology policy. The difference in their technology policy is that the power to implement the policy in Germany is mostly authorized to the local government more than in Japan. Local government has easier accesses to the small and medium size firms in the region and has built a network with the local research institutes. That is why they are superior to finding the appropriate support for the local firms needs and for making a tie between firms and research institutions. The result is that there are some local clusters with definite characteristics in Germany. On the other hand, in Japan, the most authorization to implement them is still in the central government. In the dawn of the industry, interdisciplinary knowledge is needed to overcome high uncertainty. In Germany, diversity of the authorized local clusters realizes that.
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