Economic Implications of Intellectual Property Rights for the Biotechnology Sector: A Comparative Analysis of the European-Japanese Situations.

Under the assumption of similar general legal environments, the following analysis suggests that a strategy of confidential secrecy in R&D is less significant for Japanese enterprises. Founded upon this difference the amount of patent induced information disclosure effects for Japan is not as essential as it is for Europe. Consequently, the blockade effect in Japan is comparatively dominant, i.e. in Japan the negative aspects of patent protection effect the system more immediately. Thus, one might argue that less patent protection is more fruitful for Japan. Given this analysis, the current endeavours of the USA, the European Union and Japan to harmonize patent legislation for the biotechnology sector appears to be flawed.