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IV. NRC Summary Report on the Project Foreword lo the ARC Summary Repor! This section (IV) and the following section (V) represent contributions prepared, respectively, under the auspices of the NRC and the HWWA and IfW. Each reflects a synthesis of the issues and considerations reflected in the Joint Recommendations and Findings, drawing upon the conferences, symposium, and the deliberations of the Steering Committee. These sec- tions address the main issues raised in the course of the project on Interna- tional Friction and Cooperation in High-Technology Development, Com- petition, and Trade. The analysis presented in this section (IV) is specifically drafted with the policymaker in mind. Its focus is on improving international understanding of the sources of conflict and cooperation in markets for high-technology goods and services. It describes the motives for national efforts to develop and support high-technology industry in order to capture the economic and political benefits of such activity for national economies. This section then examines the motives for greater national and international cooperation in the development of new technologies and reviews the challenges such coop- eration can pose to participants and policymakers alike. Important new trends such as strategic alliances, cooperation between national development programs, and the globalization of R&D are also reviewed. Taking a global perspective, this section reviews both the interaction between national efforts to support high-technolo' ,y industry and the impact 9

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10 CONFLICT AND COOPE~TION of these practices on the multilateral trading system. It discusses the impor- tance of practices such as discriminatory public procurement, dumping, in- tellectual property protection, the growth in investment incentives, and the importance of differences in national investment regimes. Current policy approaches, both bilateral and multilateral, are discussed. These include the importance of competition (or antitrust) policy, the need for a multilateral investment accord, and more generally the potential role of national policies in advancing multilateral solutions. Examples of government policies and practices and private sector strategies are outlined as a means both of illus- trat~ng the real-world relevance of the issues under discussion, and of point- ing to potential lessons for future policymaking. The analysis both supports the Recommendations and Findings and is intended to contribute to the debate over how to maintain the multilateral system in the context of increased national competition for high-technology industries. Both this section of the Report and section V have benefited immensely from the willingness of Steering Committee members to make available their time, expertise, and experience. I would like to particularly thank my colleagues on the Steering Commit- tee who made important contributions to this project. A number of these individuals can fairly be associated with the analysis set forth in this section although some may have reservations on particular points. This section ben- efited greatly from the spirited discussion among all the participants, and particularly our HWWA and IfW colleagues. The participants would certainly not agree on all points, nor in the matter in which they should be expressed, but I believe that our common objectives, our joint Recommendations and Findings, formally set forth in the preceding section, far outweighed any dif- ferences. The latter were always offered with zest, and only served to sharpen our thinking on the more difficult issues. Special recognition for this section and for American participation in this project is due to Dr. Charles W. Wessner, the principal author of this analyti- cal section of our Report. In addition to his written contributions, he brought his considerable policy expertise, unflagging energy, and remarkable organiza- tional skills to bear on this complex international undertaking. Without his efforts, this project would not have been undertaken or successfully concluded. Invaluable assistance in the preparation of the NRC conferences and the draft- ing of the main body of the Report was provided by George Georgountzos, the program associate for the Board on Science, Technology, and Economic Policy (STEP). Their extraordinary dedication and commitment were essential to the successful completion of this project. Other members of the STEP team, to whom our appreciation is owed, include Dr. Stephen A. Merrill, who played an instrumental role in the initial phases of the project, and Lena Steele, who made important contribu

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FOREWORD TO THE SUMMARY REPORT 11 lions to the May 1995 NRC conference. The experience and timely advice of Dr. Lawrence E. McCray were welcome contributions at key points in the project. Recognition is also due to Patrick Stuart and Anne Eisele, both of whom provided vital support in the initial phases of the project and especially for the January 1995 symposium. Last, but not least, the opti- mism, support, and creativity of Dr. E. William Colglazier played a crucial role in bringing this project to a successful conclusion. Alan Wm. Wolff Project Co-Chairman