INDEX
A
Agro-industrial products, 52
Airbus consortium, 14, 76, 98, 111, 131
Aircraft industry, 76
Antidumping procedures
enforcement of findings, 81
GATT, 76, 79, 80, 93-94 n.14, 18
investigation approach, 81, 94 n.24, 112
multilateral rules for, 8, 79-81
nuisance cases, 81
objective, 79
proposed U.S. reforms, 85-87
targets of suits, 94 n.16
and technology policy, 129-130
see also Dumping
Antitrust policy, 3, 61-62, 75, 76, 84, 89, 125-126, 131, 137 n.17
Automobile industry, 7, 48, 50, 62
B
Biotechnology products, 79
Boeing, 14
Bush, Vannevar, 123
C
mobility, 4, 104, 105, 109, 126
for technological innovation, 62
Chemical industries, 50, 51, 55
Clothing industry, 48
Commercial counterfeiting, 78
Commission of the European Communities, 130
Comparative advantage
indicator, 43
Ricardian model, 13
Competition/competitiveness ''beggar-thy-neighbor,'' 83
commodity effect and, 40, 41, 46
determinants, 67-68
first-mover advantages, 105-107
indicators, 33
location and, 83
market and organizational contexts, 3, 46
multilateral rules for, 5, 83-84, 99
structural differences and, 75-76, 77, 84, 91, 98-99
supranational policy, 79, 81, 84
technology and, 13, 30-33, 53-54
see also Global competition;
Japanese competitiveness;
U.S. competitiveness
Competitive advantage
external economies and, 18
in high-technology products, 21, 23, 67-68
linking technology and trade policies, 4-7
positive feedback loops and, 15, 16, 17
skilled labor availability and, 16, 17
supplier base and, 17
Constant market shares analysis, 35, 40, 41-42, 46, 47-48, 50, 51, 55-56 n.6
Consortia, government-sponsored, 7, 82-83, 98, 128, 130
Countervailing duties, 8, 87-89
D
Data processing systems, 44, 47, 51, 52
Defense Advanced Research Projects Agency, 125, 131
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
EUREKA, 128
Europe/European Economic Community
antidumping procedures, 80, 81, 83
Court of Justice, 85
electronics sector, 40, 69, 73
exports of high-technology products, 71
local content restrictions, 81
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
trade performance in high-technology products, 22
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
importance, 121
multilateral rules for, 5, 83-84
and technology transfer, 78
France
constant market shares analysis, 42
exports of high-technology products, 71
food industry, 42
foreign direct investment in, 135 n.4
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
trade-related investment measures, 83
Uruguay Round, 77, 85, 93-94 nn.14, 18, 104, 132
General Motors, 62
Germany (West) constant market shares analysis, 41, 50, 51
economy, 52
electronics sector, 40, 51, 52, 56 n.13, 73
exports of high-technology products, 71
foreign direct investment in, 135 n.4
fuels, 35
hourly compensation costs, 19-20
human capital, 25-26
indicator of contribution to trade balance, 51, 52
innovation development and diffusion and, 52, 55
productivity performance, 23-24
protectionist policies, 52
raw materials, 35
R&D expenditures and personnel, 68
scale-intensive sector, 35, 38, 41, 50, 51, 52, 54, 55
science-based sector, 35, 36, 40, 51, 52, 54, 55, 70, 72
share in world trade in manufactures, 34, 36-40, 50, 70, 73
specialized-supplier sector, 35, 37, 41, 46, 50, 51, 52, 55, 60
structural advantages and disadvantages, 50, 51
trade performance, 50-53, 54-55
trade specialization patterns and, 50, 52, 53, 54-55
traditional sector, 35, 39, 41, 51, 52, 54
weights of sectoral groups in total exports, 35
Global competition
changing nature of, 2
historical perspective, 13-27
industrial structure and, 30-33
innovation and, 2-3
structural differences and, 84
see also Competition/competitiveness;
Japanese competitiveness;
U.S. competitiveness
Government procurement practices, 5, 8, 74, 76, 78, 133
H
High-technology industries
competitive advantage, 67-69
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
measurement of production costs, 80
nationalism/regionalism in, 74
OECD categories, 92 n.4
sectors, 14
share of total manufacturing output, 23
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
Indicator of contribution to trade balance, 43-45, 51, 52, 56 n.8
Indicator of relative competitive position, 55 n.5
Industrial machinery, 50
Industries
linkages among, 30
"positive feedback loops" of interaction, 2
sectoral taxonomy, 30-31
strengths of, 2
structure, 30-33
supplier-dominated sector, 32, 33
technological linkages among, 31-32
see also Scale-intensive industries;
Science-based industries;
Specialized suppliers;
Traditional manufacturing industries ;
specific industries
and countervailing duties, 88-89
multilateral rules for, 5, 82-83
and U.S. trade policy, 61
Innovation
capital availability for, 62
continuous process and product improvements, 97-98
development and diffusion, 48-49, 78
and global competition, 2-3, 48-49, 61, 97, 121
and intellectual property protection, 78
intersectoral transmission mechanisms, 45, 54
knowledge base and, 30
producer-user interaction, 45, 49, 53, 54, 61
Intellectual property protection
importance, 4, 8, 104, 105, 121, 131
multilateral rules for, 5, 78-79
World Intellectual Property Organization, 78
Interest rates, 62
International Trade Commission, 80
Italy
constant market shares analysis, 42
food industry, 42
intersectoral linkages, 61
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, 46
trade balance in manufactures, 36-39, 72
J
Japan
access to research in, 134
exports of high-technology products, 71
foreign direct investment in, 135 n.4
import penetration by U.S., 68, 90-91, 113
National Health Insurance Reimbursement system, 77
technology development programs, 128-129
sales by U.S.-owned manufacturing firms in, 61
subsidies for R&D, 82
Japanese competitiveness
capital costs and, 24-25
closed market and, 25-26
competitiveness effect and, 35, 40-41
constant market shares analysis, 35, 40, 41
continuous improvement and, 2
direct foreign investments and, 45, 109
electronics sector, 40, 44, 46, 47, 49, 53, 56 n.10, 73, 106
fuels, 35
human capital and, 25-26
imports and, 61
indicator of contribution to trade balance, 43-45
industrial restructuring and, 43-44
intersectoral linkages and, 2, 44-45, 54, 61
keiretsu, 62
productivity performance, 23-24
protectionist barriers and, 45
raw materials, 35
savings rates and, 25
scale-intensive sector, 35, 38, 41, 43, 45, 50, 54
science-based (high-technology) industries, 22, 23, 25-26, 33, 35, 36, 40, 41, 43, 44, 45, 51, 60, 69, 70, 72
share in world trade in manufactures, 34, 36-40, 69, 70, 73
specialized-supplier sector, 35, 37, 40, 41, 43, 44, 45, 46, 49,54, 60
specific market-commodity effect and, 40, 41
structural effect and, 35, 40, 41, 42
success factors, 4, 40, 42, 44-45, 140
trade balance, 34, 36-39, 43, 44, 45, 72
trade specialization and, 2-3, 42-45, 67
traditional sector, 35, 39, 41, 43, 45, 53-54
upsurge in world markets, 33-46, 53-54
weights of sectoral groups in total exports, 35
yen revaluation and, 45
Joint European Semiconductor Silicon Initiative, 82, 93, 136 n.15
Just-in-time inventory and production, 17
L
Labor
hourly compensation costs, 19-20
quality of, 60
relations, 2
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
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
Most-favored-nation concessions, 90
N
National Center for Manufacturing Sciences, 125, 128, 131
Newly industrializing countries in Asia
constant market shares analysis, 41
electronics sector, 40, 47, 51, 56 n.10, 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
Organization for Economic Cooperation and Development, 25, 92 n.4
P
Patents
cooperative research and, 83
duration, 79
infringement, 78-79
Price/pricing floors, 80
home market, 93 n.12
life-cycle, 93-94 n.14
minimum commitments, 80
semiconductor memory devices, 113-114
undertakings, 80
Protectionism, 6, 45, 52, 69, 93, 109
R
Research and development
collaborative, 7, 9, 61, 84, 121, 127, 130-132
consortia, government-sponsored, 7, 82-83, 98
content, value in high-technology products, 4, 105
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
reciprocal access to, 134
separation from manufacturing, 107, 109
spending by high-technology industries, 13
subsidies, 8, 74, 82, 83, 121, 132, 133
by universities, 3, 123, 134-135
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
benefits to the economy, 2-3
characteristics, 31, 92-93 n.5
protectionist treatment, 69
role in manufacturing systems, 55 n.2
share in world trade, by country, 36, 46-48, 70
trade balance, by country, 36, 72
weights in total exports, by country, 35
see also High-technology industries;
specific countries
Sematech, 7, 82, 117-118, 127-128, 130, 131, 132, 136 n.14, 141
Semiconductor industry
antidumping procedures applied to, 83, 86, 112-114
chip design protection, 79
dynamic random access memory chips, 106, 107, 112, 114, 117
erasable programmable read-only memory devices, 112
foreign investment in U.S., 114
foreign market share in Japan, 113
spillovers in technology, 18-19
trade conflicts, 103
Semiconductor Industry Association, 115 n.3
Service industries, 117
Servizi Informativi per l'Estero-World Trade data base, 32-33, 58
Specialized-supplier industries, 33
benefits to the economy, 2-3
characteristics, 31-32
restructuring of, 50
share in world trade, by country, 37, 47-48
trade balances, by country, 37
weights in total exports, by country, 35
see also specific countries
Standards and switching costs, 5, 8, 105, 106, 121, 126
Steel industry, 107
Subsidies
and countervailing duties, 87-89, 98
effects in high-technology sector, 106, 116, 117
multilateral rules for, 76, 82-83
R&D, 8, 74, 82, 83, 121, 132, 133
T
Technology
diffusion, 16
drains, 133-134
drivers, 18
dual-use, 121
flows, 76
and international competitiveness, 30-33
misappropriation of, 78
reverse engineering, 16
and trade performance, 13, 30-33, 53-54
Technology policy
and competitive advantage, 4-7
defined, 121
national reforms, 85-91
see also High-technology industries;
U.S. technology policy
Telecommunications, 44, 76, 77, 78, 103, 107, 109
Television, high-definition, 103, 109
Texas Instruments, 115 n.5, 130
Thomson (of France), 109
Trade
concessions, 90
and exchange rates, 24
interregional, 16
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
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
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
Trade rules, 3
antidumping procedures, 79-81, 85-87, 116
bilateral approaches to, 5-6
competition policy, 84-85
compliance monitoring, 77
dispute settlement mechanism, 4, 77, 85, 116
government procurement practices, 78
foreign direct investment policy, 83
importance for technology-intensive industries, 77-78
industrial targeting, 82-83
intellectual property protection, 78-79
precision in, 76-77
purpose of, 77
reforms needed, 98-99
see also U.S. trade policy and rules
Traditional manufacturing industries
characteristics, 104
dispute resolution, 106
share in world trade, by country, 39
trade balances, by country, 39, 47
trade policy role, 107
weights in total exports, by country, 35
Trademark protection, 79
Transportation
government procurement practices, 78
U
United Kingdom
constant market shares analysis, 42
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, 49-50, 56-57 n.13
exports of high-technology products, 71
foreign direct investment in, 135 n.4, 137 n.19
gross national product, 21, 22, 25
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, 127-128, 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
weights of sectoral groups in total exports, 35
U.S. competitiveness
antitrust policies and, 61-62
and civilian technology policy, 5, 7
constant market shares analysis, 41, 46, 47-48
coordination between agencies and, 9
cyclical economic trends and, 47, 49, 54
deterioration of, 2, 3, 46-50, 54, 56 n.10, 60, 126
electronics sector, 40, 46, 47, 60, 69, 73
exchange rates and, 48
fuels, 35
innovation development and diffusion and, 48-49, 54, 61
manufacturing capabilities and, 2, 3, 7
market effects and, 46
penetration of Japanese markets, 68, 90-91
raw materials, 35
scale-intensive sector, 35, 38, 41, 47, 48, 49, 54
science-based (high-technology) sector, 17, 19, 20, 21, 22-23, 27, 35, 36, 40, 46, 47-48, 49, 56 n.12, 60, 61, 68, 69, 70, 72
scientific prowess and, 135 n.3
semiconductor industry, 14
share in world trade in manufactures, 34, 36-40, 46, 47, 69, 70,73
specialized-supplier sector, 35, 37, 41, 46, 47-49, 54, 60
structural disadvantages and, 46, 48, 49, 54, 125-126
technology flows and, 76
technology policy and, 131, 132, 135
trade balance in manufactures, 20-22, 34, 36-39, 46, 47, 72
trade specialization patterns and, 48, 49, 54
traditional sector, 35, 39, 41, 47, 48, 49
U.S.-Japan Scientific Cooperation Agreement, 135 n.1
U.S.-Japan Semiconductor Trade Agreement, 4-5, 6, 90, 111-114, 116, 117
U.S. 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
evaluation of response to trade challenge, 130-132
government support of civilian technology development, 9, 127-128, 139, 140
human capital investments, 8
innovation system and, 3, 48-49
intellectual property protection, 129, 131
investments in R&D, 6-7
manufacturing capabilities, improvement in, 7
model for, 117
new developments and challenges, 124-127
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
structure, 122-124
substantive focus, 6-7
suggested action, 8-10
and technology transfer, 78, 121, 133
trade policy linked with, 9, 61, 97, 121-122, 125, 129-130, 139
U.S. trade policy and rules
antidumping (section 731), 5, 61, 80, 81, 85-87, 98, 107, 108
and civil-military technology relationship, 130-131
and competitiveness, 91-92
concensus-building on, 118
concerns, 60-61
countervailing duties (section 303), 87-89, 98, 107, 108
delays in implementing, 91, 104, 106
escape clause (section 201), 87, 107, 108
goals, 91
intellectual property rights, 93 n.11, 125
and market access, 111-114, 125
market-oriented, sector-specific (MOSS) talks with Japan, 77
national security clause (section 232), 108, 135 n.2
negotiation approach, 76-77, 91
North American Free Trade Agreement, 78
Reagan administration, 127-128
section 337 n.11
Structural Impediments Initiative talks, 77
as a substitute for civilian technology policy, 4-5
technology policy linked with, 9, 61, 97, 121-122, 125, 129-130, 139
testing and certification requirements, 77
Trade Act of 1974, 89
unfair trade practices (section 301), 6, 89-91, 107, 108, 111, 129
University of Sussex, Science Policy Research Unit, 31
V
Very large-scale integration, 128
Z
Zenith, 109