The U.S. Machine Tool Industry and the Defense Industrial Base (1983) / Chapter Skim
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Appendix B: Policies of Foreign Governments
Appendix B: Policies of Foreign Governments
Pages 111-117
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From page 111... ...
MITI played a major role in helping the industry to reach maturity; however, its influence has diminished considerably in r ecent years .1 Thus, although much has been said about the large number and variety of Japanese policies that support its machine tool industry, many of these policies are no longer in effect. Industrial Planning As par t of its statutory function of identifying and promoting industr ial growth, MITI has been author ized to: provide funds for modernization approve rationalization cartels stimulate mergers, joint ventures, and further modernization of equipment · move domestic firms toward increased specialization and international competitiveness2 As an example of moves toward specialization, MITI now requires Japanese firms to discontinue manufacturing 111
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From page 112... ...
Availability of Capital Japanese firms needing capital for expansion or modernization can draw on a range of incentives and traditional practices going beyond what is available in the United S tates . These include: · policies that keep interest rates artificially law for loans to favored manufactur ing industr ies ~ a relatively concentrated commercial banking sector, which enables the Ministry of Finance and the Bank of Japan to "rations credit4 · a }sigh rate of domestic saving, helped in part by tax preferences on interest income · a tradition of close cooperation among government agencies that sets economic pr for ities and commercial lending agencies · generous depreciation allowances, including a special accelerated depreciation rate for numerical control (NC)
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From page 113... ...
With the election of the Mitterrand government, France has begun to emulate the Japanese, placing greater reliance on market signals but utilizing various government policies to stimulate targeted Growth sectors and sponsoring national research projects. On June 29, 1982, the government announced the creation of a Super ministry of research and industry, modeled after MITI.10 This ministry will implement the various tools of French industrial policy, including industry restructur ing, subsidies, joint ventures, foreign acquisitions by French firms, and research spending to promote growth industr ies .
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From page 114... ...
Of the nearly 150 machine tool companies, the most important will be regrouped around 15 industry leaders through mergers and acquisitions. Such arrangements are expected to increase the international competitive position of French machine tools by reducing R&D and manufacturing costs.12 Shortly after its creation, the Ministry of Research and Industry announced the "production plan n to be ing together various industries -- including machine tool -- in a national automation effort.13 This plan aims for 25 percent growth in process control each year for 3 years.
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From page 115... ...
Like Japan in the late 1950s and early 1960s, the FRG has encouraged mergers, consolidations, and offered grants, low-cost loans, and tax concessions during the late 1960s and early 1970s. However these programs have primarily been designed to benefit declining industries; the Germans have no official priority list of growth sectors to be supported.
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From page 116... ...
Elements of the project include CAD/CAM technology; technology for parts fabrication and assembly methods: and highly flexible manufactur ing systems based on machining centers grouped around programmable industrial robots. The federal government plans, coordinates, and funds various R&D projects in academic and industrial labs related to EMS.
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From page 117... ...
10. Several national research projects are in areas related to machine tools, including electronics, computers, and robotics.
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