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Suggested Citation:"Introduction." National Research Council. 1991. Europe 1992: The Implications of Market Integration for R & D-Intensive Firms. Washington, DC: The National Academies Press. doi: 10.17226/1775.
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Suggested Citation:"Introduction." National Research Council. 1991. Europe 1992: The Implications of Market Integration for R & D-Intensive Firms. Washington, DC: The National Academies Press. doi: 10.17226/1775.
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Page 2

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Introduction DR. PRESS: In response to the dramatic events of the past year, we are having to reassess many assumptions about international relations. Fortunately, our relationships with the countries of western Europe already have a long and strong tradition of cooperation and open dialogue. The emergence in 1992 of the European Community as the largest market in the western bloc and as a major center of science and technology has stimulated analysis and planning in governments and corporations across the world. We in the international science and technology community are interested in the implications of EC 92 for it&D-intensive industries. The interest is not an academic one, for all of the industrialized democracies realize the enormous potential of such industries to contribute to their economic growth in the years ahead. The tradition of cooperation in basic science between nations is a strong one and in all probability will continue or even be enhanced by the anticipated changes in Europe. One can envisage stronger cooperation in larger scien- tific projects in special initiatives like the space station, for example, or the Human Frontiers Project, or cooperation in environmental issues. However, when science and technology have implications for industrial competitiveness, the effect on relations between nations is not so clear. Regulations and policies of nations or communities of nations can influence the transfer of information and technology across borders. They affect the performance of multinational corporations and can be the determinants of the success or failure of small high-tech companies. How nations define and protect critical technologies is a key issue. it&D-intensive industries of national or multinational scope have a vested interest in the formation of new criteria influencing their activities, whether in technical standards, intellectual property rights, or restrictions on technology transfer. Will the current bilateral science and technology agreements adequately stimulate and regulate tech-

2 EUROPE 1992 nology flows? What role will the Commission of the European Communi- ties play in the formulation of what have previously been national science and technology policies? All of these are issues and questions that will affect corporate strategies and will be on the political agenda in the years ahead. This symposium reflects our need for constructive and continuing dialogue on strategic issues affecting both sides of the Atlantic. As part of the Academy Industry Program, the symposium is intended to provide enhanced communication between the National Research Council and industry leaders on issues related to the ones, for example, that we will be exploring today and tomorrow. In this regard we encourage your candor and your active . . . . . participation In t he discussion.

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The 12 member nations of the European Economic Community (EC) are engaged in a bold effort to create a Single European Market by the end of 1992. The changes brought about by European market integration will have a major impact on U.S. industry.

Although proponents of the plan argue that it will benefit businesses by allowing economies of scale, more efficient marketing, and increased demands for goods and services from outside the Community, there is some concern that the Single European Market may serve to exclude or limit participation of non-European competition. The impact is likely to be particularly pronounced in industries with heavy involvement in research and development.

This volume is based on a major two-day symposium which brought together officials of United States and other governments, industry representatives, and academic experts to examine EC policies on technical standards, intellectual property rights, access to the results of EC-supported basic research, and other issues affecting R&D intensive firms.

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