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has probably been captured mainly by firms and workers in Japan, Korea, and Taiwan, a not insubstantial number of beneficiaries can be found in the United States as well. The nearly 400 workers employed by Corning in its fusion glass facility in Harrodsburg, Kentucky, are an example.

A key lesson to be drawn is that U.S. supplier firms that are willing to establish service centers abroad and to work collaboratively with foreign firms wherever the latter are located can remain internationally competitive even in industries where manufacturing is primarily located abroad. Such willingness to collaborate does not necessarily imply the offshoring of formerly U.S.-based R&D, as the cases of Corning, AKT, and Photon Dynamics illustrate. On the contrary, the willingness to collaborate ensures that some important innovative activity will continue to occur in the United States. Any government policies that prevent firms from doing this are likely to be highly counterproductive. U.S. firms have many strengths that derive from the emphasis on government sponsorship of basic research, relatively strict enforcement of competition and intellectual property laws, the availability of venture capital for startups, and a generally favorable climate for entrepreneurship. If the United States wants to participate in dynamic, globalized industries like the FPD industry, it has to keep its economic nationalists on a short leash.


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