The government has decided to hand back intellectual property rights to private- sector researchers who conducted research and development on its behalf, Trade Minister Kaoru Yosano told biotechnology leaders Wednesday.

It is hoped the rights transfers will result in a strengthening of the nation's industrial competitiveness on the order of that experienced by the United States in the 1980s, according to officials of the Ministry of International Trade and Industry.

Yosano made the pledge at a meeting between his Cabinet colleagues and nine representatives of the biotechnology industry, including Health and Welfare Minister Sohei Miyashita and Shoichi Nakagawa, minister of agriculture, forestry and fisheries, the officials said.

The reversion measures will resemble the U.S. 1980 Bayh-Dole Law, which mandated that patent rights, among other agreements, be returned to businesses and universities that developed technologies with state funds.

The government is expected to submit the measures to the Diet next month as part of legislation to improve industrial competitiveness, the officials said.

During the meeting, the business leaders urged the government to work out a national strategy to enhance cooperation between state, industry and academia to promote biotechnology as a leading industry in the 21st century.

Katsuhiro Utada, chairman of the Japan Bioindustry Association, urged the state to "support" efforts by the private-sector to transform research and development in biotechnology into new businesses, especially since the private sector finances 80 percent of statewide R&D expenditures in the field.

He also asked the government to further promote the role that intellectual property plays in biotechnology so that Japan can survive cutthroat competition with Europe and America.

Other business representatives stressed the need for both the private sector and government to work together to enhance individual efforts to strengthen the nation.

State efforts to promote biotechnology began in January, and the ministers agreed that opinions and requests from the business world will be reflected in future industrial policy as much as possible.

The government is expected to seek a budget for the strategy, the officials said.