TABLE 6-1 Evolution of U.S.-Japan Science and Technology Relations and U.S. Competitiveness





Scientific and Technological Capabilities

• The United States was preeminent in most areas, driven by defense needs.

• Japan's capabilities expanded rapidly, particularly in applied fields linked to growing industries.

• US. capabilities remain formidable, with focus on commercialization and diffusion; improvement spurred by Japanese competition.

• Japan has reached parity or near parity in many key fields but capabilities are unbalanced; investment in nonproprietary R&D by government has been low.

• Japan follows through on goal to significantly increase public spending on basic R&D, exceeding US. per capita spending.

• The U.S. R&D enterprise restructured to fit post-Cold War and budget balance realities.

• Both countries refine approaches to public-private partnerships and international cooperation.

Policy and Corporate Strategy Focus

• For Japan: catch up/reduce dependence through technology acquisition, target resources to manufacturing industries,

• For the United States: maintain defense technology lead; maintain strong basic science and research base; consumer-focused economy.

For Japan: develop greater strength in fundamental research; globalize corporate technology capabilities; new policy approaches to catch up in information

For the United States: reinvigorate manufacturing; greater market and global focus for companies.

• For Japan: defensive and protective action increasing as new competition emerges in Asia?

• For the United States : pursue global IPR protection to ensure returns on R&D investment; more aggressive trade policies?

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