Comparing National Innovation Systems in Japan and the United States : Push, Pull, Drag and Jump Factors in the Development of New Technology

What jump-starts technology commercialization, venture capital investment, and new firm formation in new technology industries? What are the most effective ways to encourage start-ups and to connect fledgling firms to critical resources? National policies targeting life science (for example, biotechnology and medical devices) in Japan and the USA are compared in the context of their national innovation systems (NIS) supporting (and hindering) new technology-based entrepreneurship as a whole. Japan has embarked on an unprecedented bet on the future potential of life science, investing nationally and locally in building up R&D and commercialization infrastructure and stimulating new business creation through its Cluster Initiative and other policies. At the same time, while the USA until now has been at the forefront in new technology entrepreneurship, national policy is currently faltering. Through an analysis of best practices in national and regional innovation systems one can get a sense of important push (for example, policy stimuli), pull (market demand), drag (capital and institutional weaknesses) and jump (targeted community-level strategies) factors underlying the ability of certain locales and countries to create competitive advantages in new technology industries