It is frequently contended that as for research and development (R&D), the scientific basis of innovation, Japan has been a freerider with respect to the international community. It is generally accepted, both within and outside the country, that, be that as it may, Japan as an important frontier economy can no longer rest on this position (e.g., cf. Ueda, 1996, p. 22). This paper is about one possible way out of this unsatisfactory situation, i.e. (research) alliances among companies, in order to complement their weak basis of scientific knowledge in one of the most advanced fields of scientific research and most promising fields of business interest: new biotechnology. With respect to such alliances, there is always the fear that the game is not strictly played by the rules, i.e. that one partner will cheat - or at least will try to cheat - the other. Does this apply to Japan, particularly if foreign companies are involved: are partners milked, or is there a symbiotic know-how enhancement, fruitful for all participants?
Alliances can be established with scientific institutions or other companies, among them potential competitors, at a national and/or an international level. As for national alliances, government-sponsored R&D consortia can play a major role. How do these relationships work and what are their results? Surveying the relevant literature, several hypotheses can be put forward. With respect to international alliances, it is frequently suggested that an uncontrolled dissemination of technological know-how from the foreign to the Japanese partner may take place, which could be a major reason for failures of co-operative ventures. On the other hand, Japanese research consortia are often seen in Western literature as an effective tool of technology creation, because of the extensive potential information exchange (cf. Audretsch, 1988, 1989, Saxonhouse, 1985, 1986, Ouchi/Bolton, 1988). This reasoning suggests that the fruitful sharing and accumulation of information and technology is indeed p
