Europe 1992 The Implications of Market Integration for R & D-Intensive Firms (1991) / Chapter Skim
Currently Skimming:
Suggested Strategies for U.S./EC Cooperation and Competition
Suggested Strategies for U.S./EC Cooperation and Competition
Pages 126-152
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 126... ...
Thus far we have heard a description of where the science and technology policies of the European market are headed; the views and concerns of the U.S. science community; access to precompetitive programs in the European Community; and standards and the strategic implications today.
|
From page 127... ...
On the EC side, the inclusion in the Single Act of one chapter devoted to R&D as well as the expected early approval of the next five-year R&D Framework Program provide the EC with the legal basis and the financial means to launch or consolidate cooperative R&D programs. European governments, universities, and industries are also engaged unilaterally or collectively in cooperative R&D programs.
|
From page 128... ...
These may be conditions that, mutatis mutandis, might be applied to U.S.-EC R&D cooperation. Turning to these relations as they stand now, one must first state that there already exists an impressive record of cooperation bilaterally with the member states, with the European Community in the nuclear and environmental areas embodied in the Framework Program, with other European organizations such as ESA in space research.
|
From page 129... ...
authorities in sectorial and bilateral trade negotiations, as opposed to the more positive concept of mutual access to opportunities negotiated through multilateral agreements on a multisectorial basis, which EC favors. We feel that continuing to put the EC on the priority list of the Telecommunications Trade Act can hardly contribute to creating the atmosphere of mutual confidence necessary to embark on a most desirable transatlantic cooperation in the field of telecommunications.
|
From page 130... ...
Collaboration in prenormative research can bring us closer to planning in advance for the same standard rather than each trying to impose our own. There are many areas for cooperation in prenormative research, from software for computer-integrated manufacturing to office document architectures; from testing tools for speech recognition systems to tools for electronic verification; and from CAD framework standards to home systems, whose economic importance is growing rapidly.
|
From page 131... ...
In fact, some topics have already been explored tentatively between both sides. Vice President Pandolfi mentioned in his opening address five domains of potential cooperation.
|
From page 132... ...
I wish to point out in closing that there is a wider implication. The political and economic presence of the European Community as a whole acts as a stabilizing factor, especially with the current situation in the eastern European countries.
|
From page 133... ...
I think that means that Europe is not only a battleground for European companies to try to compete with each other. Europe is one of the three major markets in the world where European, U.S., and Japanese companies are competing with each other as part of a global game.
|
From page 134... ...
The right-hand side shows the 1992 scenario. If you take the economic borders away and make a very simple calculation of the market share of the top five competitors in Europe, you see that the concentration levels are quite a bit less.
|
From page 135... ...
Some of the moves of major pharmaceutical companies in the past year are a reflection of this situation. Not only are European companies consolidating and becoming more powerful competitors in Europe, but there is a whole new category of competitors becoming extremely powerful; these competitions are a variety of Japanese companies coming to Europe at a very rapid rate.
|
From page 136... ...
D F It UK EEC US J D F It UK EEC 1 __ D F It UK EEC US J FIGURE 5 Industry Concentration Levels in Three Industrial Sectors: Market Share of the Top Five Competitors in the EC, United States, and Japan (D = Denmark, F = France, It = Italy, UK = United Kingdom)
|
From page 137... ...
This picture will change quite a bit in the sense that Japanese companies will become a lot more international in their R&D activities. They will, therefore, also be competing for valuable R&D resources in Europe and the United States.
|
From page 138... ...
Many businesses move from being strictly export based to being geographically customized global businesses. The simplest kind of company makes a standard product and ships it around the world.
|
From page 139... ...
As we look at the uncertainties that we can project in the total European scenario, related to such things as eastern Europe, we know there are going to be some opportunities. Of course, there is potentially higher economic growth there in Europe and certainly reduced business costs from such things as common standards, and there is a large potential reduction in costs from the freer movement of goods, from things like savings in paperwork and transportation costs.
|
From page 140... ...
The question is, will European companies, in an attempt to gain a larger share of their domestic market as well as a larger share of worldwide markets, put increasing pressure on the European Commission for special local content regulations and other trade barriers, thereby slowing or restricting access to the European market by non-European companies? This is an oft-asked question.
|
From page 141... ...
Texas Instruments has been a part of the European market and economy for 30 years. We built our first factory in England about 30 years ago, and our resources in Europe put us among the top 150 high-technology firms in the region, with eight manufacturing locations, 32 sales and marketing offices
|
From page 142... ...
electronics companies must develop European strategies that allow increased emphasis on the localization of marketing and flexible production to accommodate customer demands. The European push to achieve technological parity with the United States and the Asia/Pacific region means that U.S.
|
From page 143... ...
We will now hear from Jim Wavle, who is with a new company in a new industry the integrated biopharmaceuticals industry. Jim is president and chief operating officer of Centocor.
|
From page 144... ...
Large pharmaceutical companies often begin a drug development effort by selecting a disease category and then choosing from the gamut of potentially applicable technologies. We, in contrast, start with monoclonal antibody technology and then pick the disease targets this technology can most effectively address.
|
From page 145... ...
Clinical development, like basic research, cannot be limited by national borders. One of the key factors for success in the pharmaceuticals industry is the ability to conduct well-designed and well-controlled clinical trials.
|
From page 146... ...
While we do very deliberately praise the high-technology concentration procedure with respect to the CPMP review process, the time taken by some member states to issue the national licenses required for marketing has been disappointing. In this regard we view very favorably proposals by the Commission to establish a European agency for evaluation of medicinal products, with the power to directly issue EC marketing authorizations.
|
From page 147... ...
Well-established pharmaceutical companies are saddled with unwieldy and inefficient infrastructures. They have networks of companies, personnel, and facilities born in an age of major trade barriers and regulatory constraints.
|
From page 148... ...
This is of critical social importance, for I believe that biotechnology and pharmaceuticals technology in general offer the most cost-effective weapons in the entire health care armamentarium. I myself am convinced that the free enterprise system, democratic capitalism, call it what you will, has a far greater capability of bringing more and different new pharmaceuticals to the market than we would ever see if a few centrally controlled research laboratories were responsible for all new drug development.
|
From page 149... ...
We must keep highlighting this and pointing out the real competitive nature of businesses and whether you are doing harm or gain by these types of things, like local content issues. I think the question was asked earlier today, when you set up an artificial barrier, the real competitor gets inside the barrier very fast anyway, so what have you accomplished?
|
From page 150... ...
What is a U.S. business, what is a European-based business, to make of the fact that as the trade barriers fall in the European Community nations, similar barriers of the past that were in the European Community may now be rising in the eastern bloc countries?
|
From page 151... ...
Get the economies in decent shape, and solve the environmental problems; that is the sequence of support to eastern European economies.
|
From page 152... ...
I would also like to thank the Academy Industry Program staff, particularly Deborah Faison, who provided most of the logistic support for this program.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.