promoted in the United States. Moreover, uncritical imitation of this and other technology policies associated with the period of "catch-up" in the Japanese economy overlooks considerable evidence suggesting that Japanese policymakers are now considering policies, such as public funding of basic research, that have long been central features of the U.S. national research system.

Above all, it is important to recognize that the current complexities in U.S.-Japanese economic and technological relationships are a legacy of successful domestic and international policies. Japan's postwar rise to technological leadership is attributable in part to U.S. policies that assisted Japanese national security and economic reconstruction. U.S. and Japanese citizens alike should be proud of this remarkable accomplishment. Nonetheless, adjustment by policymakers and managers in both the United States and Japan to new technological realities will require fresh thinking on both sides of the Pacific. Failure to adjust to the new environment will result in missed opportunities and unnecessary friction.

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