Balancing the National Interest U.S. National Security Export Controls and Global Economic Competition (1987) / Chapter Skim
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3. The Changing Global Economic and Technological Environment
3. The Changing Global Economic and Technological Environment
Pages 54-69
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From page 54... ...
policy, U.S. national security export controls (which are discussed in detail in the following chapter)
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From page 55... ...
The current competitive environment promotes information diffusion because it creates incentives for companies to pursue such global production strategies as locating research, development, and manufacturing facilities around the world and entering into joint ventures. As these companies work to coordinate their international efforts, they transfer massive amounts of information.
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From page 56... ...
Military R&D and procurement expenditures subsequently declined, but the civilian market for high-technology products such as aircraft and consumer electronics experienced explosive growth. Thus, by the late 1970s there were a number of dual use high technologies, such as advanced microelectronics, that were introduced into the commercial sector well before they found application in military systems.
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From page 57... ...
With such high levels of interaction in world markets, it is not surprising that European and Asian countries are sensitive to the negative effects on trade caused by export controls.
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From page 58... ...
goods exported and 42 percent of manufactured exports in 1985, and contributed to a steadily growing trade surplus from 1965 through 1981 as shown in Figure 3-2. This surplus helped to offset the trade deficit produced by other sectors.
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It is important to note that, although Japan, West Germany, and the United States all devote an equivalent proportion of GNP to R&D, Japan and West Germany may derive a commercial advantage from these expenditures because they devote a much smaller proportion of their R&D to military development (see Figure 3-41. In 1981 the United States devoted more than half its total government RED funding to defenserelated research; West Germany and Japan, on the other hand, devoted 9 percent and 2 percent, respectively.
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Gross expenditures for performance of research and development including associated capital expenditures (except for the United States, where total capital expenditure data are not available)
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Gross expenditures for performance of research and development including associated capital expenditures (except for the United States, where total capital expenditure data are not available)
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citizens applying for patent protection from foreign governments. A more concrete assessment of the growing competition faced by the United States is gained from a review of specific technologies.
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FIGURE 3-6 External patent applications by residents of selected countries. · Semiconductors: The United States no longer has the lead in several important areas of semiconductor technology.
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From page 64... ...
dominance of semiconductor technology has occurred almost entirely within the last 5 to 10 years.5 · Fiber optics: Japan is acknowledged to have gained a clear lead in light source technology, one of the main components of fiber optic systems. In addition, Japan is credited with a lead in fiber optic applications and is competitive with the United States in other component technologies.6 · Space: The U.S.
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From page 65... ...
U.S. and CoCom export control policies that do not require assurances from such countries that comparable indigenously produced products or technical data also are denied to our adversaries will weaken the CoCom countries and thereby the NATO alliance.
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From page 66... ...
; but the share of high-technology items, such as computer and communications equipment, is growing. In 1985, 17 percent of the high-technology products imported by the United States came from the East Asian NICs (Hong Kong, Singapore, South Korea, and Taiwan)
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From page 67... ...
A variety of policies are used to encourage development of indigenous capability: · requiring multinational companies located in the country to train local employees; · sending large numbers of students to foreign countries for technical education; · hiring foreign scientists and engineers; · licensing production technology with the condition that the company supplying the technology buy back a portion of the output; · sponsoring domestic research centers to encourage indigenous talent; and · protecting infant industries. Industrializing countries vary in their willingness to comply with controls on militarily critical technology.
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From page 68... ...
Ferguson, "High Technology Product Life Cycles, Export Controls, and International Markets" (Paper prepared for the National Academy of Sciences Panel on the Impact of National Security Controls on International Technology Transfer, June 1986)
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From page 69... ...
Department of Commerce, International Trade Administration, An Assessment of U.S. Competitiveness; Committee on Electronic Components, Board on Army Science and Technology, National Research Council, Foreign Production of Electronic Components.
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