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From page 159... ... competitiveness Competitive advantage determinants, 4, 18, 67-68 external economies and, 18 in high-technology products, 21, 23, 6768 linking technology and trade policies, 47 positive feedback loops and, 15, 16, 17 skilled labor availability and, 16, 17 supplier base and, 17 Constant market shares analysis, 35, 40, 4142, 46, 47-48, 50, 51, 55-56 n.6 Read the entire page →
From page 160... ... 160 Consortia, government-sponsored, 7, 82-83, 98, 128, 130 Copyright infringement, 78-79 Countervailing duties, 8, 87-89 D Data processing systems, 44, 47, 51, 52 Defense Advanced Research Projects Agency, 125, 131 Defense technology, 3, 123 Deutch, John M., 129 Developing countries, technology transfer to, 78 Dumping defined, 80, 85 -- 86, 93 n.12, 130 joint ventures and, 129 of semiconductors by Japan, 111-114 see also Antidumping procedures Dynamic random access memory chips, 106, 107, 112, 114, 117 E Electric power, 78 Electrical machinery, 51 Electronics industry, 3, 17, 46, 131 consumer products, 18 data processing systems, 44, 47, 51, 52 components sector, 44, 47, 51, 52 office products, 47, 51, 56-57 n.13 share in world trade, by country, 40, 69 trade balance, by country, 44, 51 Engineering and Science Research Centers, 128 Engineering instruments, 51 Erasable programmable read-only memory devices, 112 ESPRIT, 7, 128, 136 n.10, 140 EUREKA, 128 Europe/European Economic Community antidumping procedures, 80, 81, 83 competition policies, 84, 140 Court of Justice, 85 electronics sector, 40, 69, 73 exports of high-technology products, 71 local content restrictions, 81 R&D policies, 132-133, 140 scale-intensive sector, 38 science-based sector, 36, 40, 69, 70, 72 share in world trade in manufactures, 34, 36-40, 69, 70, 73 specialized-supplier sector, 37 strategic technology programs, 128 subsidies for R&D, 82 trade balance in manufactures, 36-39, 72 INDEX trade performance in high-technology products, 22 trade rules, 85, 91 traditional sector, 39, 51 see also individual countries Exchange rates effects, 2, 22-23 dollar, 19-20, 21, 22, 46, 48, 49-50 fluctuations of 1980s, 23 and high-technology trade, 19-20 trade and, 24 yen, 45 F Fair market value, 80, 86, 112 Financial markets integration of, 8, 62 international trade in, 18, 27 First-mover advantages, 105- 107 Food industries, 33 Foreign direct investment flows, 110, 136 n.15 growth, 126, 135 n.4 importance, 121 multilateral rules for, 5, 83-84 policy, 8, 109 and technology transfer, 78 France constant market shares analysis, 42 electronics sector, 40, 73 exports of high-technology products, 71 food industry, 42 foreign direct investment in, 135 n.4 Japanese VCR imports, 5, 98 scale-intensive sector, 38, 42 science-based sector, 36, 40, 70, 72 share in world trade in manufactures, 34, 36-40, 70, 72, 73 specialized-supplier sector, 37, 42 trade balance in manufactures, 36-39 traditional sector, 39, 42, 51 G General Agreement on Tariffs and Trade Aircraft Code, 76 Antidumping Code, 76-77, 79-80, 86, 93 n.12 applicability to high technology, 104 dispute settlement mechanism, 94-95 n.28, 103-104, 107 government procurement code, 76 injurious subsidization, 87-88 principles, violation by U.S., 89-90 reforms needed, 91-92 subsidies, 94 n.18, 139 trade-related investment measures, 83 Read the entire page →
From page 161... ... competitiveness Government procurement practices, 5, 8, 74, 76, 78, 133 H High-technology industries competitive advantage, 67-69 defined, 13, 14, 92 n.4 161 distinguishing characteristics, 4, 103 domestic suppliers in home markets, 68 external economies, 14, 15-19, 27 government policy role, 16 historical perspective, 13-27 importance of, 7, 14-19, 26-27 intersectoral externalities, 18-19 knowledge pool, 16 labor market, 15-16, 17, 18, 25, 27 market size effects, 15, 18 measurement of production costs, 80 nationalism/regionalism in, 74 OECD categories, 92 n.4 R&D expenditures, 31, 61, 68 sectors, 14 share of total manufacturing output, 23 start-ups, 82, 83, 133-134 supplier base, 15-16, 17 technological spillovers, 16, 18-19, 31, 69, 74, 107 U.S. market share for products, 17 within-sector externalities, 15-18 see also Science-based industries; Trade in high technology High-temperature superconductivity, 128, 129, 135 n.6 High-value-added production, 97, 107 Hitachi, 130 Honeywell, 129 I IBM, 106, 128, 136 nn. Read the entire page →
From page 162... ... l 5 Joint ventures, 129, 130 Just-in-time inventory and production, 17 L Labor hourly compensation costs, 19-20 quality of, 60 relations, 2 Learning curves, 4, 105 Local content restrictions, 5, 8, 74, 81, 109 Location of industries, 17, 18 Read the entire page →
From page 163... ... INDEX M Machine tools, 45, 46, 49, 50, 52, 60 Machinery for specialized industries, 52 Macroeconomic environment and trade policy, 8 and trade trends, 19 and U.S. competitiveness, 20, 62 Management, quality of, 60 Market access, 8, 75, 89, 90-91, 111-114, 116, 125, 139 closed domestic, 25-26 effect, 40, 50, 51, 56 n.6 labor, 16, 17 size effects, 15, 18 Market share analysis, 35, 40, 41-42 n.4, 55-56 n.6 commodity effect and, 56 n.6 competitiveness effect and, 35, 40, 50, 51, 56 n.6 export, 55 n.4 predatory pricing and, 79 structural effect and, 35, 40, 50, 51, 56 n.6 Marshall, Alfred, 15 Massachusetts Institute of Technology, 129 Matsushita, 109 McDonnell Douglas, 111 Mechanical engineering, 52, 60 Mechanical industries, 55 Microelectronics, 27 Micron Technology, 115 n.5 Microsoft, 106, 107 Most-favored-nation concessions, 90 N National Center for Manufacturing Sciences, 125, 128, 131 NEC, 107, 109 Newly industrializing countries in Asia constant market shares analysis, 41 electronics sector, 40, 47, 51, 56 n.l0, 69, 73, 117 food industry, 41 scale-intensive sector, 38, 41 science-based sector, 36, 40, 70, 72 share in world trade in manufactures, 34, 36-40, 70, 73 specialized-supplier sector, 37, 41 trade balance in manufactures, 36-39, 72 traditional sector, 39, 41, 51 Nippon Electric Company, 129 o Offshore manufacturing, 17, 104, 109 Oil shocks, 46 163 Organization for Economic Cooperation and Development, 25, 92 n.4 p Patents cooperative research and, 83 compulsory licensing, 79, 83 duration, 79 infringement, 78-79 Pharmaceuticals, 50, 51 Price/pricing floors, 80 home market, 93 n.l2 life-cycle, 93-94 n.l4 minimum commitments, 80 predatory, 79, 81, 106 semiconductor memory devices, 113- 114 undertakings, 80 Product life cycles, 4, 104 Protectionism, 6, 45, 52, 69, 93, 109 R Research and development collaborative, 7, 9, 61, 84, 121, 127, 130-132 consortia, government-sponsored, 7, 8283, 98 content, value in high-technology products, 4, 105 defense, 123, 124-125 foreign participation in, 9, 74, 128-129, 130, 133-134, 139 gap between laboratory and production line, 7, 9, 139-140 human capital in, 25-26 investment risks, 105, 125 and market access, 125, 127 reciprocal access to, 134 separation from manufacturing, 107, 109 spending by high-technology industries, 13 subsidies, 8, 74, 82, 83, 121, 132, 133 tax credits, 9, 61, 133 by universities, 3, 123, 134-135 Reverse engineering, 16, 104 Rules of origin, 83-84 S Scale-intensive industries, 33 characteristics, 31 share in world trade, by country, 38 trade balances, by country, 38, 47 weights in total exports, by country, 35 see also specific countries Science-based industries, 33 Read the entire page →
From page 164... ... , 109 r ~ race barriers, 75, 77, 105 concessions, 90 and exchange rates, 24 interregional, 16 liberalization, 77, 105 managed, 8, 97 in manufactured products, volume, 92 performance, see Competition/competitiveness policy, and competitive advantage, 4-7, 104 shares, by country, in manufactures, 34 specialization differences among countries, 3, 34, 42-43 strategic theory, 93 n.6 technology and, 13, 30-33, 53 see also General Agreement on Tariffs and Trade; U.S. trade policy and laws Trade in high technology barriers and structural impediments, 74, 75-85 challenges to, 103-115 conflict management, 67-95, 98, 103 conflict sources, 75-76 exports, 14, 60, 68, 71 import share of domestic market, 21-22, 25-26, 68-69 model for policy, 111 - 114 policy perspective, 74, 103, 104-111, 116-118 problems, 105-106 multilateral trade rules, 76-85 sources of trends in, 24-26 trends, 19-26 Read the entire page →
From page 165... ... bv country, 35 Trademark protection, 79 Transportation costs, 4, 16, 105 government procurement practices, 78 U United Kingdom constant market shares analysis, 42 electronics sector, 40, 73 exports of high-technology products, 71 food industry, 42 foreign direct investment in, 135 n.4 R&D expenditures and personnel, 68 scale-intensive sector, 38, 42 science-based sector, 36, 40, 70, 72 share in world trade in manufactures, 34, 36-40, 70, 73 specialized-supplier sector, 37, 42 trade balance in manufactures, 36-39, 72 traditional sector, 39, 42, 51 United States attractiveness as a production location, 8 Committee on Medical Research, 122 dollar, value of, 19-20, 21, 46, 48, 4950, 56-57 n.13 economy, 21, 46, 126 exports of high-technology products, 71 165 foreign direct investment in, 135 n.4, 137 n.19 Ernst national nrorl~ct 21 22 25 D r import penetration by Japan, 68 Japanese investments in, 45, 62, 114 localization of industry, 17 manufacturing base, size of, 21 National Cooperative Research Act, 129 National Science Foundation, 123, 127128, 129 Office of Science and Technology Policy, 9, 118 Office of Scientific Research and Development, 122 Office of the U.S. Trade Representative, 9, 118 productivity performance, 23-24 R&D structure, 68, 126, 128-129, 136 n.11 sales by Japanese-owned manufacturing firms in, 61 savings rates, 25 scientists and engineers, 25, 27 share of world manufacturing output, 22 subsidies for R&D, 82 wage rates, 19-20, 23 weights of sectoral groups in total exports, 35 U.S. Read the entire page →
From page 166... ... technology policy access to foreign technology, 9, 139 adoption of new technologies, 8, 124, 131-133, 139 antitrust policy and, 125-126, 129, 131 approach, 3 challenges to, 124-127 commercialization agents, 123-124 and competitive weaknesses, 131, 132, 135 and cooperative research, 129, 130-132 defense R&D and, 123, 124-125, 139 elements, 6, 123-124 evaluation of response to trade challenge, 130-132 government support of civilian technology development, 9, 127-128, 139, 140 human capital investments, 8 importance, 4, 7, 98 innovation system and, 3, 48-49 intellectual property protection, 129, 131 issues for, 121-122, 132-137 investments in R&D, 6-7 manufacturing capabilities, improvement in, 7 model for, 117 new developments and challenges, 124127 oversight, 132 political dimensions, 6, 7, 9, 141 private-sector role, 7 Reagan administration, 136 n.8 responses and complications, 127- 130 spillovers to civilian sector, 125, 134 antidumping (section 731) , 5, 61, 80, 81, 85-87, 98, 107, 108 and civil-military technology relationand competitiveness, 91-92 concensus-building on, 118 concerns, 60-61 countervailing duties (section 303) Read the entire page →

From page 159...

... competitiveness Competitive advantage determinants, 4, 18, 67-68 external economies and, 18 in high-technology products, 21, 23, 6768 linking technology and trade policies, 47 positive feedback loops and, 15, 16, 17 skilled labor availability and, 16, 17 supplier base and, 17 Constant market shares analysis, 35, 40, 4142, 46, 47-48, 50, 51, 55-56 n.6

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From page 160...

... 160 Consortia, government-sponsored, 7, 82-83, 98, 128, 130 Copyright infringement, 78-79 Countervailing duties, 8, 87-89 D Data processing systems, 44, 47, 51, 52 Defense Advanced Research Projects Agency, 125, 131 Defense technology, 3, 123 Deutch, John M., 129 Developing countries, technology transfer to, 78 Dumping defined, 80, 85 -- 86, 93 n.12, 130 joint ventures and, 129 of semiconductors by Japan, 111-114 see also Antidumping procedures Dynamic random access memory chips, 106, 107, 112, 114, 117 E Electric power, 78 Electrical machinery, 51 Electronics industry, 3, 17, 46, 131 consumer products, 18 data processing systems, 44, 47, 51, 52 components sector, 44, 47, 51, 52 office products, 47, 51, 56-57 n.13 share in world trade, by country, 40, 69 trade balance, by country, 44, 51 Engineering and Science Research Centers, 128 Engineering instruments, 51 Erasable programmable read-only memory devices, 112 ESPRIT, 7, 128, 136 n.10, 140 EUREKA, 128 Europe/European Economic Community antidumping procedures, 80, 81, 83 competition policies, 84, 140 Court of Justice, 85 electronics sector, 40, 69, 73 exports of high-technology products, 71 local content restrictions, 81 R&D policies, 132-133, 140 scale-intensive sector, 38 science-based sector, 36, 40, 69, 70, 72 share in world trade in manufactures, 34, 36-40, 69, 70, 73 specialized-supplier sector, 37 strategic technology programs, 128 subsidies for R&D, 82 trade balance in manufactures, 36-39, 72 INDEX trade performance in high-technology products, 22 trade rules, 85, 91 traditional sector, 39, 51 see also individual countries Exchange rates effects, 2, 22-23 dollar, 19-20, 21, 22, 46, 48, 49-50 fluctuations of 1980s, 23 and high-technology trade, 19-20 trade and, 24 yen, 45 F Fair market value, 80, 86, 112 Financial markets integration of, 8, 62 international trade in, 18, 27 First-mover advantages, 105- 107 Food industries, 33 Foreign direct investment flows, 110, 136 n.15 growth, 126, 135 n.4 importance, 121 multilateral rules for, 5, 83-84 policy, 8, 109 and technology transfer, 78 France constant market shares analysis, 42 electronics sector, 40, 73 exports of high-technology products, 71 food industry, 42 foreign direct investment in, 135 n.4 Japanese VCR imports, 5, 98 scale-intensive sector, 38, 42 science-based sector, 36, 40, 70, 72 share in world trade in manufactures, 34, 36-40, 70, 72, 73 specialized-supplier sector, 37, 42 trade balance in manufactures, 36-39 traditional sector, 39, 42, 51 G General Agreement on Tariffs and Trade Aircraft Code, 76 Antidumping Code, 76-77, 79-80, 86, 93 n.12 applicability to high technology, 104 dispute settlement mechanism, 94-95 n.28, 103-104, 107 government procurement code, 76 injurious subsidization, 87-88 principles, violation by U.S., 89-90 reforms needed, 91-92 subsidies, 94 n.18, 139 trade-related investment measures, 83

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From page 161...

... competitiveness Government procurement practices, 5, 8, 74, 76, 78, 133 H High-technology industries competitive advantage, 67-69 defined, 13, 14, 92 n.4 161 distinguishing characteristics, 4, 103 domestic suppliers in home markets, 68 external economies, 14, 15-19, 27 government policy role, 16 historical perspective, 13-27 importance of, 7, 14-19, 26-27 intersectoral externalities, 18-19 knowledge pool, 16 labor market, 15-16, 17, 18, 25, 27 market size effects, 15, 18 measurement of production costs, 80 nationalism/regionalism in, 74 OECD categories, 92 n.4 R&D expenditures, 31, 61, 68 sectors, 14 share of total manufacturing output, 23 start-ups, 82, 83, 133-134 supplier base, 15-16, 17 technological spillovers, 16, 18-19, 31, 69, 74, 107 U.S. market share for products, 17 within-sector externalities, 15-18 see also Science-based industries; Trade in high technology High-temperature superconductivity, 128, 129, 135 n.6 High-value-added production, 97, 107 Hitachi, 130 Honeywell, 129 I IBM, 106, 128, 136 nn.

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From page 162...

... l 5 Joint ventures, 129, 130 Just-in-time inventory and production, 17 L Labor hourly compensation costs, 19-20 quality of, 60 relations, 2 Learning curves, 4, 105 Local content restrictions, 5, 8, 74, 81, 109 Location of industries, 17, 18

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From page 163...

... INDEX M Machine tools, 45, 46, 49, 50, 52, 60 Machinery for specialized industries, 52 Macroeconomic environment and trade policy, 8 and trade trends, 19 and U.S. competitiveness, 20, 62 Management, quality of, 60 Market access, 8, 75, 89, 90-91, 111-114, 116, 125, 139 closed domestic, 25-26 effect, 40, 50, 51, 56 n.6 labor, 16, 17 size effects, 15, 18 Market share analysis, 35, 40, 41-42 n.4, 55-56 n.6 commodity effect and, 56 n.6 competitiveness effect and, 35, 40, 50, 51, 56 n.6 export, 55 n.4 predatory pricing and, 79 structural effect and, 35, 40, 50, 51, 56 n.6 Marshall, Alfred, 15 Massachusetts Institute of Technology, 129 Matsushita, 109 McDonnell Douglas, 111 Mechanical engineering, 52, 60 Mechanical industries, 55 Microelectronics, 27 Micron Technology, 115 n.5 Microsoft, 106, 107 Most-favored-nation concessions, 90 N National Center for Manufacturing Sciences, 125, 128, 131 NEC, 107, 109 Newly industrializing countries in Asia constant market shares analysis, 41 electronics sector, 40, 47, 51, 56 n.l0, 69, 73, 117 food industry, 41 scale-intensive sector, 38, 41 science-based sector, 36, 40, 70, 72 share in world trade in manufactures, 34, 36-40, 70, 73 specialized-supplier sector, 37, 41 trade balance in manufactures, 36-39, 72 traditional sector, 39, 41, 51 Nippon Electric Company, 129 o Offshore manufacturing, 17, 104, 109 Oil shocks, 46 163 Organization for Economic Cooperation and Development, 25, 92 n.4 p Patents cooperative research and, 83 compulsory licensing, 79, 83 duration, 79 infringement, 78-79 Pharmaceuticals, 50, 51 Price/pricing floors, 80 home market, 93 n.l2 life-cycle, 93-94 n.l4 minimum commitments, 80 predatory, 79, 81, 106 semiconductor memory devices, 113- 114 undertakings, 80 Product life cycles, 4, 104 Protectionism, 6, 45, 52, 69, 93, 109 R Research and development collaborative, 7, 9, 61, 84, 121, 127, 130-132 consortia, government-sponsored, 7, 8283, 98 content, value in high-technology products, 4, 105 defense, 123, 124-125 foreign participation in, 9, 74, 128-129, 130, 133-134, 139 gap between laboratory and production line, 7, 9, 139-140 human capital in, 25-26 investment risks, 105, 125 and market access, 125, 127 reciprocal access to, 134 separation from manufacturing, 107, 109 spending by high-technology industries, 13 subsidies, 8, 74, 82, 83, 121, 132, 133 tax credits, 9, 61, 133 by universities, 3, 123, 134-135 Reverse engineering, 16, 104 Rules of origin, 83-84 S Scale-intensive industries, 33 characteristics, 31 share in world trade, by country, 38 trade balances, by country, 38, 47 weights in total exports, by country, 35 see also specific countries Science-based industries, 33

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From page 164...

... , 109 r ~ race barriers, 75, 77, 105 concessions, 90 and exchange rates, 24 interregional, 16 liberalization, 77, 105 managed, 8, 97 in manufactured products, volume, 92 performance, see Competition/competitiveness policy, and competitive advantage, 4-7, 104 shares, by country, in manufactures, 34 specialization differences among countries, 3, 34, 42-43 strategic theory, 93 n.6 technology and, 13, 30-33, 53 see also General Agreement on Tariffs and Trade; U.S. trade policy and laws Trade in high technology barriers and structural impediments, 74, 75-85 challenges to, 103-115 conflict management, 67-95, 98, 103 conflict sources, 75-76 exports, 14, 60, 68, 71 import share of domestic market, 21-22, 25-26, 68-69 model for policy, 111 - 114 policy perspective, 74, 103, 104-111, 116-118 problems, 105-106 multilateral trade rules, 76-85 sources of trends in, 24-26 trends, 19-26

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From page 165...

... bv country, 35 Trademark protection, 79 Transportation costs, 4, 16, 105 government procurement practices, 78 U United Kingdom constant market shares analysis, 42 electronics sector, 40, 73 exports of high-technology products, 71 food industry, 42 foreign direct investment in, 135 n.4 R&D expenditures and personnel, 68 scale-intensive sector, 38, 42 science-based sector, 36, 40, 70, 72 share in world trade in manufactures, 34, 36-40, 70, 73 specialized-supplier sector, 37, 42 trade balance in manufactures, 36-39, 72 traditional sector, 39, 42, 51 United States attractiveness as a production location, 8 Committee on Medical Research, 122 dollar, value of, 19-20, 21, 46, 48, 4950, 56-57 n.13 economy, 21, 46, 126 exports of high-technology products, 71 165 foreign direct investment in, 135 n.4, 137 n.19 Ernst national nrorl~ct 21 22 25 D r import penetration by Japan, 68 Japanese investments in, 45, 62, 114 localization of industry, 17 manufacturing base, size of, 21 National Cooperative Research Act, 129 National Science Foundation, 123, 127128, 129 Office of Science and Technology Policy, 9, 118 Office of Scientific Research and Development, 122 Office of the U.S. Trade Representative, 9, 118 productivity performance, 23-24 R&D structure, 68, 126, 128-129, 136 n.11 sales by Japanese-owned manufacturing firms in, 61 savings rates, 25 scientists and engineers, 25, 27 share of world manufacturing output, 22 subsidies for R&D, 82 wage rates, 19-20, 23 weights of sectoral groups in total exports, 35 U.S.

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From page 166...

... technology policy access to foreign technology, 9, 139 adoption of new technologies, 8, 124, 131-133, 139 antitrust policy and, 125-126, 129, 131 approach, 3 challenges to, 124-127 commercialization agents, 123-124 and competitive weaknesses, 131, 132, 135 and cooperative research, 129, 130-132 defense R&D and, 123, 124-125, 139 elements, 6, 123-124 evaluation of response to trade challenge, 130-132 government support of civilian technology development, 9, 127-128, 139, 140 human capital investments, 8 importance, 4, 7, 98 innovation system and, 3, 48-49 intellectual property protection, 129, 131 issues for, 121-122, 132-137 investments in R&D, 6-7 manufacturing capabilities, improvement in, 7 model for, 117 new developments and challenges, 124127 oversight, 132 political dimensions, 6, 7, 9, 141 private-sector role, 7 Reagan administration, 136 n.8 responses and complications, 127- 130 spillovers to civilian sector, 125, 134 antidumping (section 731) , 5, 61, 80, 81, 85-87, 98, 107, 108 and civil-military technology relationand competitiveness, 91-92 concensus-building on, 118 concerns, 60-61 countervailing duties (section 303)

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INDEX Pages 159-166

INDEX
Pages 159-166