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INDEX 261 Index A compared to integration strategies, Aircraft and airlines industries, innova- 80-85 tions in, 34 integration strategy for access to 76-77, imitators profiting from, 67 79-85; standardization of, 74 see also Integration strategy Antitrust policies, affecting international loose, 68, 74, 80, 81, 82, 90-91 competitiveness of United States, parterning strategy concerning, 3, 78-79, 174-175 90, 102, 103, 107, 115 Apprenticeship system, 208 and profitability, 67-68, 72-76 Appropriability of innovations, 67-68, in international wade, 90-93 89-90 specialized, 71 72, 75-76, 84 access to complementary assets affect- strategies for access to, 76-88 ing, 70-72, 77, 80, 89-90 AT&T industry differences in, 89-90 breakup of, 132-133 and profitability, 67-68, 72-76 worldwide affiliations of, 138 in international trade, 90-93 Automation Assets required for commercialization of in process innovations, 26 innovations, 21, 23, 26, 39-40, in services sector, 125, 133, 137 70-72, 76-88 Automobile industry contractual strategies concocting, 73-74, complementary assets in, 71 77-79 innovations in, 34, 38-39, 40 combined with integration strategies, standardization of, 74 85
INDEX 262 B breakup of, 132-133 Banking and financial services, see Finan- worldwide affiliations of, 138 cial and banking services and automation of data flow, 137-139 Black & Decker Corporation, revitalizing improvements in product manufacture and design in, and economies of scope, 137-138 3, 50-62 and globalization of industries, 98-99, impact on new product development, 107, 161-162 61-62 interaction of corporate and government by increasing integration, 58-59 interests concerning, 254 Brazil, interaction of government and cor- and protectionist issues concerning porate interests in, 250 international data flow, 111-113 transfer of technology in, see Transfer C of technology Competitiveness, international, of United Capital availability of, for financing innovations, States, 9, 160-166 202 antitrust policies affecting, 174-175 and investments in human capital, 233 communication and transportation improvements affecting, 98-99, 107, in Japan 215-216 161-162 in services sector, 123-124 costs and benefits of changes in, 166-168 Centralization of activities in consolidation phase of technological decline of, 160-166 trajectory, 225, 227-228, 229-230 education affecting, 170-172 management techniques affecting, in integration strategy, see Integration strategy 164-165, 174-176 requirements for future growth of, in Japan, 221, 229-230 in mission-oriented technology policy, 168-169 193-194, 234 services sector affecting, 6-7, 144-152, in research and development programs, 157 104-107 tax policies affecting, 173, 177 trade policies affecting, 162-163, in services sector, 132-137 165-166, 177, 178-186 Chemical industries appropriability of innovations in 72-73, value of dollar affecting, 165 77 wages as measure of, 8, 9, 168, 178 in Federal Republic of Germany, Swe- Complementary assets, see Assets required for commercialization of den, and Switzerland, 206, 210 innovations China, People's Republic of, interaction of Computer industry government and corporate interests in, 248, 249-250 access to complementary assets in, 70, 76, 78-79, 85, 86-88, 90 Cola beverages, imitators profiting from development of, 66-67 in automation of insurance industry, importance of flexible designs in, 137 COMETT (Community in Education and Training for Technology), 254 imitators profiting from innovations in, 66-67, 86-87 Communications and AT&T
INDEX 263 interaction with government interests, defense expenditures in, 212 251, 252, 254 economic and institutional framework partnering strategy in, 78-79, 90 of, 206-212 standardization of innovations in, 74, education and training in, 206, 207-208, 87-88 210 worldwide affiliations in, 138 effectiveness of, 210, 212-214 Computerized axial tomographic scanner, industrial standards in, 209 imitators profiting from development research and development in, 209-212 of, 65-66, 85-86 specialization pattern in, 213 Consolidation phase in technological tra- transfer of technology in, 210, 233 jectory, 225, 227-228 Diffusion of technology, see Transfer of in Japan, 229-230 technology Containerized shipping, 71-72 Distribution systems, globalization trends Contractual strategies for access to com- in, 4-5, 96-118; plementary assets, 73, 76-79 see also Globalization of industries combined with integration strategies, 85 Drug industry, appropriability of innova- compared to integration strategies, 79-85 tions in, 89 Cooperation interfirm, in Japan, 220-221 E university-industry, 200-201, 208, 210 Education Corporate strategies, interaction with gov- in diffusion-oriented technology policy, ernment policies, 11-12, 246-256 206, 207-208, 210 common interests in, 250-251 apprenticeship system in, 208 new approaches in, 253-256 as investment in human capital, sources of conflicts in, 251-253 215-216, 233 in Japan, 216 D in mission-oriented technology policy, Data flow, see Communications 200-201, 204-205, 207, 208 Decentralization of technology policies, national differences in, 217 205-206, 207, 233-234 quality of, affecting international com- Defense industries petitiveness of United States, 170-172 government expenditures on, 172-173, and university-industry links, 200-201, 193, 197, 198-199, 212 208, 210 national differences in, 193 Emergence phase in technological trajec- interaction of government and corporate tory, 225, 227, 228 interests in, 248-249 Engineering industries, mechanical, requirements for, 169-170 206-207, 209, 213 role of services sector in, 156 Entrepreneurs, role in organizational struc- Diffusion-oriented technology policy, ture and manufacturing innovations, 192, 205-214 27-33 decentralization of activities in, Environmental differences in national 205-206, 207 technology policies, 200-203, 232
INDEX 264 Equipment in manufacturing France, technology policy in, 192, and process innovations, 23-26, 29 203-204, 223, 224 and product innovations, 21, 22 and accessibility of scientific informa- ESPRIT (European Strategic Program for tion, 200 Research and Development in Infor- and defense expenditures, 193 mation Technology), 115, 254, 255 and design of research and development EUREKA projects, 113-114, 255 programs, 198, 199 European Economic Community, technol- effectiveness of, 196 ogy strategies of, 254 and funding of research and develop- Evolution in manufacturing industries, ment programs, 194, 198, 199 2-3, 16-48 interaction of corporate and national life cycle concept in, see Life cycle con- strategies in, 255 cept, technological and labor force involved in research and Exchange rate fluctuations development programs, 200, 202 affecting globalization of industries, and labor mobility, 201 101, 110-111 and shifting to new uses of resources, affecting international competitiveness 224, 228, 229 of United States, 165 and technological trajectory, 228-229 Exports and transfer of technology, 232 of product innovations, 25, 42, 43 of United States G decline-in, 161 GAFF (General Agreement on Tariffs and with military applications, restrictions Trade), 180, 181, 182, 183 on, 113 Germany, Federal Republic of, technol- ogy policy in, 192, 207, 210, F 211-212, 223, 224 Financial and banking services and deepening uses of resources, 224, 229 automation of, 133 and defense expenditures, 193 changes in scope of, 138-139 and education, 208 competition in, 142-143 and funding of research and develop- complexity of, 140 ment programs, 194, 198, 211-212 international, 146-147 and industrial standards, 209 Fluid phase of innovations, 19, 21, 23, 29, and industry-university links210 69 and labor force involved in research and organizational structure in, 27, 31 development programs, 200, 211 in process innovations, 23, 29 and technological trajectory, 229 in product innovations, 19, 21, 25 Globalization of industries, 3-8, 96-118 profits in, 74-75 compared to centralization of research Fragmentation of industries, compared to and development activities, 104, 107 globalization trend, 4-5, 96-118; driving forces for, 100-102, 107 see also Globalization of industries empirical evidence of, 102-104
INDEX 265 enabling conditions for, 98-99, 107 on shifting and deepening uses of historical development of, 96-97 resources, 222-231 limits to, 108-115 supporting national industries, 104, organizational structure of companies 162-163, 216-217. affecting, 99, 114-115 in Sweden, 192, 193, 194, 210, 212 protectionist policies affecting, 111-114 in Switzerland, 192, 193, 198, 206, 207, services sector changes affecting, 208, 210 146-152, 157 and technological trajectories, 225-231 Government policies, 8-12, 191-245 on trade, international, 177, 178-186 cross-national comparison of 10-11 affecting profits from innovations, decentralizaion of, 205-206, 207, 91-92 233-234 General Agreement on Tariffs and diffusion-oriented, 192, 205-214; Trade in, 180, 181, 182, 183 see also Diffusion-oriented technology import restrictions in, 163, 175-179, policy 151-152, 184 diversity of, 232 liberalizing measures in, 183, 184, 185 environmental differences in, 200-203, protectionist, 97, 184 232 special interest groups affecting, 184, in France, see France, technology policy 185 in voluntary export agreements and in Germany, see Germany, Federal orderly marketing agreements in, Republic of, technology policy in 181-182 and globalization or fragmentation of on transfer of technology, 200-201, 210, industries, 97, 101, 103, 110 232-233 incentives provided in, 235 in United Kingdom, see United King- interaction with corporate strategies, dom, technology policy in 11-12, 246-256 in United States, 9-10, 192, 196-205, common interests in, 250-251 223, 224 new approaches in, 253-256 Gross national product of United States sources of conflicts in, 251-253 components of, 122 and international competitiveness of manufacturing sector in, 6, 161 United States, 162-163, 165-166 services sector in, 6 antitrust prances affecting, 174-175 in education, 170-172 H in research and development, 172-174 Health services tax programs affecting, 173, 177 complexity of, 141-142 trade legislation affecting, 177, 178-183 integration of, 133-137 on investment in human capital, 215-216, 233 I in Japan, see Japan, technology policy in IBM Corporation mission-oriented, 192, 193-205, 232; access to complementary assets of, 78, see also Mission-oriented technology 85, 86-85 policy
INDEX 266 interaction with foreign governments, research and development investment 251, 252, 254 decisions concerning, 88 partnering strategy of, 78 in small and large firms, comparison of, worldwide affiliations of, 138 88-89 Imitation of innovations, 3, 4, 65-95 specific phase of, 21, 22-23, 25, 26, 29 access to complementary assets affect- competition in, 35-37 ing, 70-72, 76-88 organizational structure in, 31, 32-33 emergence of dominant design affect- in process innovations, 26, 29 ing, 68-70, 74-76, 87-88 in product innovations, 21, 22-23, 25 in international trade, 90-93 transitional phase of, 19-22, 23-26, 29 Imports of United States, government organizational structure in, 27-32 restrictions on, 163, 178-179, in process innovations, 23-26, 29 181-182, 184 in product innovations, 19-20, 25 Incentives in national technology policies, uncertainty concerns in, 19, 22, 25 235 Insurance industry, changes in scope of, Innovations in manufacturing industries, 137 16-48, 52, 58-62 Integration strategy, 76-77, 79-85 appropriability of, 67-68, 89-90; combined with contract strategies, 85 see also Appropriability of innovations compared to contract strategies, 80-85 assets required for commercialization and globalization of industries, 96-118 of, 21, 39-40, 70-72, 76-88; limits to, 108-115 see also Assets required for commercial- and innovations, 29, 40-41 ization of innovations and profits from innovations, 3, 79-85 comparative analysis of, 39-42 in services sector, 133-137 and competition between productive Interest groups affecting government trade units, 17, 35-37 policies, 184, 185 emergence of dominant design of, International companies, see Multina- 68-70, 74-76, 87-88 tional companies fluid phase of, 19, 21, 23, 29, 69 International competitiveness of United organizational structure in, 27, 31 in process innovations, 23, 29 in product innovations, 19, 21, 25 profits in, 74-75 government policies stimulating, 172-174 imitation of, see Imitation of innovations and integration strategies, 29, 40-41 and international trade, 42-44, 90-93 legal protection of, 67-68, 72-73, 89-90 and organizational structure, 18, 27-33 relationship to international trade, 42-44 in paradigmatic stage, 68-70, 75-76 in pre-paradigmatic stage, 68-70, 74-75 in process, 16, 17, 23-27; see also Process innovations in product, 16, 17, 18-23; see also Product innovations productive trait in analysis of, 17-18 profits from, 19, 25, 65-95; see also Profits from innovations radical and evolutionary patterns of, 33-35 rate of, affecting output and productivity levels, 18-22
INDEX 267 States, see Competitiveness, interna- and investments in human capital, tional, of United States 215-216, 233 International trade, see Trade, international in manufacturing Irons, steam and dry, revitalizing manufac- location advantages in cost of, 110 ture and design of, 63-64 and process innovations, 26, 27, 29 mobility of, 201-202 J in services sector, 123 Japan and average wages, 152-153 interaction of government and corporate and number of job opportunities, interests in, 249, 253-254 152-153, 154 productivity of services sector in, 149 Legal protection of innovations, 67-68, technology policy in, 192, 214-222, 223, 72-73, 89-90 224-225 Licensing agreements for access to com- and centralized programs, 221, 229-230 plementary assets, 3, 72-73, 77 and competition, 219-220 Life cycle concept, technological, 2-3 and defense expenditures, 193 and competitiveness of productive units, development strategy in, 215-218 35-37 and education, 216 and distribution of profits from innova- effectiveness of, 218-222 tions, 68-70, 74-76 and funding of research and develop- and international trade, 4, 42-44 ment programs, 194 and organizational structure, 27-33 and interfirm cooperation, 220-221 and process innovations, 23-27, 29 and investment in human capital, and product innovations, 18-23, 25 215-216 and revitalizing manufacture and design and labor force involved in research of mature products, 49-64 and development programs, 200 and technological trajectories, 225-231 and lifetime employment system, 216, three-stage pattern of, 12-13 220 Lifetime employment system in Japan, and promotion of certain industries, 216, 220 216-217 and shifting and deepening uses of M resources, 224-225, 229-230 Management techniques affecting interna- and technological trajectory, 229-230 tional competitiveness of United and transfer of technology, 217-218 States, 164-165, 174-176 trade relationship with United States, 180 Manufacturing industries transfer of technology to, concerns antitrust policies affecting, 174-175 about, 112 changing role of, in United States, 148, transfer of technology within, 217-218 153, 160-166 communication and transportation L improvements affecting, 98-99, 107, Labor force 161-162
INDEX 268 costs and benefits of changes in, 166-168 Medical services defense-related, see Defense industries complexity of, 141-142 globalization of, 98-104, 107 integration of, 133-137 limits to, 108-111 Mergers government policies affecting, 162-163, antitrust policies concerning, 174-175 165-166, 172-174 in services sector, 132, 134-135 innovations and evolution in, 2-3, 16-48; Military power, see Defense industries see also Innovations in manufacturing Mission-oriented technology policy, 192, industries 193-205, 232 management techniques affecting, accessibility of scientific information in, 164-165, 174-176 200-201 organizational structure of, 27-33; competition in, 201-203 see also Organizational structure of concentration of activities in, 193-194, manufacturing industries 234 productivity of, 170-177 design of research and development pro- rate of innovations affecting, 18-22 grams in, 198-199 requirements for future growth of, education and training in, 200-201, 168-169 204-205, 207, 208 services sector changes affecting, effectiveness of, 195-198, 203-205 147-148 direct, 195-197 standardization in, see Standardization secondary, 197-198 in manufacturing environmental differences in, 200-203 trade policies affecting, 177, 178-186 labor mobility in, 201-202 unit production costs in, compared to transfer of technology in, 200-201, 232 volume of production, 27 Multinational companies value of dollar affecting, 165 antitrust policies affecting, 175 Market segments, 17 communication and transportation competition in, see Competition in prod- improvements affecting, 161-162 uct markets in globalization of industries, 96-118, 162 homogenization of, and globalization of historical development of, 96-98 industries, 98, 107 interaction with government policies, Marketing systems, globalization trends 246-256 in, 4-5, 96-118; common interests in, 250-251 see also Globalization of industries new strategies in, 253-256 Materials required for commercialization sources of conflicts in, 250-251 of innovations, see Assets required for commercialization of innovations N Matrix organization of companies, 114-115 National policies, see Government policies Mature phase of technological trajectory, National security, see Defense industries 225, 227, 228 Norway, research and development pro- in Federal Republic of Germany, 229 grams in, 200, 210 Mechanization in services sector, 125, 133
INDEX 269 O revitalizing mature products, 49-64, Organizational structure of manufacturing 50-62, 63-64 industries, 27-33 uncertainty concerns in, 19, 22, 25 entrepreneurial roles in, 27-32 Product(s) interchangeable with services, and globalization trend, 99, 114-115 131, 144 and innovative capacity, 18, 27-33 Production systems relationship to international trade, globalization trends in, 4-5, 96-118; 42-44 see also Globalization of industries mantrix, 114-115 process innovations in, 16, 17, 23-27; mechanistic, 32 see also Process innovations organic, 27 unit costs in, compared to volume of production, 27 P Productive units in manufacturing, 17-18 competition between, 17, 35-37 Paradigmatic stage of innovations, 68-70, 75-76 hierarchical arrangement of, 17 Productivity Partnering strategy, 3, 78-79, 90, 102, factors enhancing, 170-177 103, 107, 115 education, 170-172 Patents protecting innovations, 67-68 innovations, 172-174 affecting distribution of profits, 72-73 management techniques, 174-176 industry differences in, 89 rate of innovations affecting, 18-22 Performance criteria in product innova- of services sector, 149 tions, 19, 25 increases in, 125-128 Petroleum industry, appropriability of problems in measurement of, 130 innovations in, 72-73, 77 Profits Polarization, economic, in United States, from globalization of industries, 100 166-168, 172 limits to, 108-111 reduction of, 176-178 from innovations, 3-4, 19, 25 Power tool industry, revitalizing manufac- access to complementary assets affect- ture and design of mature products ing, 3, 70-72, 76-88, 90-93 in, 50-62 appropriability affecting, 67-68, Pre-paradigmatic stage of innovations, 72-76, 90-93 68-70, 71, 74-75 distribution of, 65-95 Price of product, innovations affecting, emergence of dominant design affect- 19, 22, 25, 57-58, 62 ing, 68-70, 74-76 Process innovations, 16, 17, 23-27, 29 in international trade, 90-93 cost of, 26, 29 in product innovations, 19 revitalizing mature products, 49-64, research and development investment 50-62, 63-64 decisions affecting, 88 trade secrets protecting, 68 in small and large firms, comparison affecting distribution of profits, 72-73 of, 88 transitional phase of, 23-26, 29 Protectionist trade policies, 10, 97, 184 Product innovations, 16, 17, 18-24 affecting globalization of industries, and emergence of dominant design, 111-114 68-70, 74-76
INDEX 270 R competition in, 142-144 RACE (Research in Advanced Communi- complexity in output of, 139-142 cations in Europe), 113, 254 concentration of, 125, 132-137 Rental agencies, changes in scope of, 139 definition of, 119-121 Research and development programs problems in, 130 centralization of, compared to globaliza- and distribution of wealth, 152-155 tion of marketing and manufacturing, growth of, 168-169 104-107 and interchangeability of products and and diffusion of new technology, 232-235 services, 131, 144 government policies stimulating, 172-174 in international trade, 6-7, 130-131, 132, in Japan, 194, 200, 218 144-152, 156-157 in mission-oriented technology policy, labor in, 123 193-205 and average wages, 152-153 design of programs in, 198-199 and number of job opportunities, effectiveness of, 195-198 152-153, 154 environmental differences in, 200-203 limits of current data on, 129-131 labor force involved in, 200, 202 mechanization and automation of, 125, national differences in funding of, 194, 133, 137 198 mergers in, 132, 134-135 and profitability of innovations, 88 myths about, 121-128 in technological trajectory, 225-230 and power of society, 156 Resources, industrial productivity of, 149 required for commercialization of inno- increases in, 125-128 vations, see Assets required for problems in measurement of, 130 commercialization of innovations scale of activities in, 132-137 shifting and deepening uses of, 222-231 scope of activities in, 137-139 structural changes in, 131-153 S technological intensity of, 124-125 value of activities in, 121, 128 Scale, economies of Soviet Union, transfer of technology to, and globalization of industries, 96-118 112-113 and profitability of innovations in small Specific phase of innovations, 21, 22-23, and large firms, 88 25, 26, 29, 69-70 and relationship of unit production costs competition in, 35-37 to volume of production, 27 organizational structure in, 31, 32-33 in services sector, 132-137 in process innovations, 26, 29 Semiconductor industry, innovations in, in product innovations, 21, 22-23, 25 33-34, 40 Standardization in manufacturing Services sector, 5-6, 119-159 affecting distribution of profits, 74-75, 87 affecting manufacturing industries, in Black & Decker program, 51, 53-55, 59 147-148 capital intensity of, 123-124
INDEX 271 and competition between productive domestic impact of, 9 units, 35-37 dynamic networks in, 91 in emergence of dominant design, exports of United States in 68-70, 74-76 decline in, 161 and international trade, 42 with military applications, restrictions organizational changes in, 32 on, 113 in process innovations, 23-26 General Agreement on Tariffs and in product innovations, 22 Trade concerning, 180, 181, 182, 183 Steel industry, international agreements and globalization of industries, 96-118 concerning, 176 government policies concerning, 177, Supplies required for commercialization 178-186 of innovations, see Assets required import restrictions in, 163, 178-179, for commercialization of innovations 181-182, 184 Sweden, technology policy in, 192 liberalizing policies concerning, 183, and defense expenditures, 193, 212 184, 185 and funding of research and develop- net balance of United States in, 149, ment programs, 194 150, 151 and industry-university links210 of product innovations, 25, 42, 43 Switzerland, technology policy in, 192, protectionism affecting, 10, 97, 198, 206, 207 111-114, 184 and defense expenditures, 193 relationship to innovation and industry and education, 207, 208 structure, 42-44 and funding of research and develop- services sector in, 6-7, 130-131, 132, ment programs, 198 144-152, 156-157 and industry-university links, 210 special interest groups affecting, 184, 185 voluntary export agreements and orderly T marketing agreements on, 181-182 Target uncertainty of product innovations, Trajectory, technological, 225-231 19, 22 in Federal Republic of Germany, 229 Tax policies in France, 228-229 affecting international competitiveness in Japan, 229-230 of United States, 173, 177 phases in, 225, 227-228 stimulating research and development in United States, 228 programs, 173 in vacuum tube industry, 225-227 Technical uncertainty of product innova- Transfer of technology, 200-201, 210, tions, 19, 22 232-233 Technology transfer, see Transfer of tech- decentralization of policies affecting, nology 233-234 Textile industries, 42 incentives affecting, 235 Trade, international investments in human capital affecting, adjustment programs concerning, 177 233 data flow concerns in, 111-113 in Japan, 112, 217-218 distribution of profits from innovations in, 90-93
INDEX 272 Transitional phase of innovations, 19-22, 23-26, 29, 69 organizational structure in, 27-32 in process innovations, 23-26, 29 in product innovations, 19-20, 25 Transportation and containerized shipping, 71-72 improvements in, and globalization of industries, 98-99, 107, 161-162 and innovations in airlines industries, 34 imitators profiting from, 67 standardization of, 74 U United Kingdom, technology policy in, 192, 203 and accessibility of scientific informa- tion, 200 and defense expenditures, 193 and design of research and development programs, 198, 199 effectiveness of, 195-196 and funding of research and develop- ment programs, 194, 198, 199 and labor force involved in research and development programs, 200, 202 and labor mobility, 201 University-industry links, 200-201, 208, 210 V Vacuum tube industry, development of, 225-227 Value of dollar, and exchange rate fluctuations affecting globalization of industries, 101, 110-111 affecting international competitiveness of United States, 165 of innovations, and distribution of prof- its, 65-95 of services sector activities, 121, 128 and national wealth, 152-155 W Wages and international competitiveness, 8, 9, 168, 178 in services sector, 152-153 Wealth, national, services sector affecting, 152-155
