COMMERCIALIZING BIOTECHNOLOGY RESOURCES


outflow than inflow of air through no microorganism filter). They also
eased experimental guidelines by amending rules for mass culture of mi-
croorganisms as long as the equipment met a prescribed standard in order
to give a go ahead to industrial applications of DNA technology. Prior to
this, government agents checked safety factors. They also approved plant
host experiments in order to allow for the diffusion of research from phar-
maceuticals to foods to agriculture.
SIn the typical Japanese strategic approach, they established two new
institutes for fuller utilization of biotechnology for Japan. These institutes
are the National Institute of Agrobiological Resources and the National
Institute of Agrobiological Sciences. They were directed to establish the
knowledge and know-how to utilize biotechnology for the 21st century.
They are newer institutional developments supported by the government
and industry. Some of their work is to develop plant improvements by cell
fusion, efficient production of seeds by tissue culture, and bioreactor sys-
tems for food production. They also created an international seed center
for Japan and Southeast Asia.


 ISSUES IN MANUFACTURING

 The manufacturing of U.S. innovative applications is currently being
discussed as follows:
 Perils of Integration-When can and will start-up companies become
fully integrated pharmaceutical houses? Some believe that one can build a
drug company on one successful drug. Licensing from a start-up enterprise
often means giving up a new company's future. Others believe small com-
panies cannot afford to finance and survive for the time it takes to com-
mercialize and market after clinical trials, needs for unusual observations,
and additional testing and arduous approval processes.
 Integrating Forward-This involves start-up companies linking with gi-
ant companies-domestic and foreign-already in the manufacturing and
marketing.
 Large versus Small-It is difficult to make a pharmaceutical company
out of good science alone. Small companies need to plow back their earn-
ings from revenues into R&D in order to survive in their niche markets.
They can build up their equity base and market value by building the
technology base. They can have better R&D capability than in some inte-
grated bureaucratic large companies. Of course, there will be more mer-
gers and acquisitions over time as a means to realize values developed and
earned.