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cooperation and healthy competition, all with the desirable side-benefit of spurring technological innovation and realization of widespread benefits through rapid commercialization.

If we are good at pursuing the task we have set for ourselves in this project, we will contribute at least in some small part to understanding the forces that govern technological competition and cooperation. We can then work together to promote shared objectives in harmony without risking friction that could lead to debilitating trade wars.

ERHARD KANTZENBACH: I will first say a few words about the two German institutes that are partners with the National Research Council in this project. The Kiel Institute and the Hamburg Institute are two of the six independent economic research institutes in Germany.

The basic budgets of these institutes are financed jointly by the federal and state governments, but these governments have no influence on the research programs of the institutes. In this respect, they are absolutely independent. But the institutes also do project research, which is financed separately by the federal government, the Commission of the European Union, and private foundations and organizations.

This is the second of three conferences that we, together with the National Research Council, have planned for this project, which is financed by the Foundation of the German-American Academic Council, as part of its program of common German-American research projects.

This conference is also sponsored by European, American, and Asian business firms and organizations, and we are grateful for their support. This project has three stages. During the first conference in Hamburg, Germany, we dealt with the theoretical justification for public promotion of R&D and with the different national approaches of public technology policy. In this conference today we will investigate the sources of international friction that result from these different national technology policies. In the third conference, to take place in Kiel, Germany, in August 1995, we will discuss the possibilities for a new global framework for high technology competition, where it is hoped that we can agree on some basic principles for such new framework conditions so that we can submit these as proposals to our national representatives in the WTO.

Of course, this is a very ambitious goal, and I hope that we will be able to reach it. Therefore, I wish this conference to become a great success.

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