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R&D Consortia and U.S.-,Japa Collaboration. Report of a Workshop November 27, 1990 National Academy of Sciences, Washington D.C. Committee on Japan Office of Japan Affairs National Research Council NATIONAL ACADEMY PRESS Washington, D.C. 1991

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NOTICE: The project that is the subject of this report was approved by the Goveming Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the further- ance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Frank Press is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal govemment. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievement of engineers. Dr. Robert M. White is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Samuel O. Thier is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's pur- poses of furthering knowledge and advising the federal government. Functioning in accor- dance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the govemment, the public, and the scientific and engi- neering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Frank Press and Dr. Robert M. White are chairman and vice-chairman, respectively, of the National Research Council. Available from: Office of Japan Affairs National Research Council 2101 Constitution Avenue, N.W. Washington, DC 20418 Printed in the United States of America

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COMMITTEE ON JAPAN Harold Brown, Chairman Johns Hopkins Foreign Policy Institute Erich Bloch, Vice-Chairman Council on Compei~i~veness C. Fred Bergsten Institute for International Economics Lewis M. Branscomb Harvard University Lawrence W. Clarkson Boeing Commercial Airplane Group I. M. Destler University of Maryland Mildred S. Dresselhaus Massachusetts Institute of Technology Daniel J. Fink D. J. Fink Associates, Inc. Ellen L. Frost United Technologies Corp. Lester C. Krogh 3M Co. E. Floyd Kvamme Kleiner Perkins Caufield & Byers Ex Officio Members: Yoshio Nishi Hewlett-Packard Co. Daniel I. Okimoto Stanford University John D. Rockefeller IV U.S. Senate Richard J. Samuels MIT Japan Program Robert A. Scalapino University of California, Berkeley Hubert J. P. Schoemaker Centocor, Inc. Ora E. Smith Illinois Superconductor Corp. Albert D. Wheelon Hughes Aircraft Co. (retired) Gerald P. Dinneen, Foreign Secretary, National Academy of Engineering James B. Wyngaarden, Foreign Secretary, National Academy of Sciences and Institute of Medicine . . .

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R&D CONSORTIA AND U.S.-JAPAN COLLABORATION Workshop organized by the National Research Council's Committee on Japan November 27, 1990 - Lecture Room National Academy of Sciences - Washington, D.C. 8:30 Coffee and Registration 9:00 Chairman's Opening Remarks: Richard J. Samuels, MIT 9:15 Panel on the Environment for R&D Consortia in the United States Grant A. Dove, MCC Robert E. Falstad, SEMATECH James Turner, House Science, Space, and Technology Committee 10:00 Open Discussion 10:30 Coffee Break 10:45 Panel on the Environment for R&D Consortia in ,Iapan Richard J. Samuels, MIT Japan Program Yoshio Nishi, Hewlett-Packard Co. Michael J. Mintz, Dow Chemical Japan 1 1:30 Open Discussion 12:00 Remarks by J. Thomas Ratchford, President's Office of Science and Technology Policy 12:1 5 Lunch 1:30 Panel on Cross-Border Issues Peter F. Cowhey, University of California, San Diego Yoriko Kawaguchi, Embassy of Japan Ellen L. Frost, United Technologies Corp. 2:15 Open Discussion 2:45 Chairman's Closing Remarks 3:00 Adjourn V

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OFFICE OF JAPAN AFFAIRS Since 1985 the National Academy of Sciences and the National Academy of Engineering have engaged in a series of high-level discussions on ad- vanced technology and the international environment with a counterpart group of Japanese scientists, engineers, and industrialists. One outcome of these discussions was a deepened understanding of the importance of pro- moting a more balanced two-way flow of people and information between the research and development systems in the two countries. Another result was a broader recognition of the need to address the science and technology policy issues increasingly central to a changing U.S.-Japan relationship. In 1987 the National Research Council, the operating arm of both the National Academy of Sciences and the National Academy of Engineering, authorized first-year funding for a new Office of Japan Affairs (OJA). This newest program element of the Office of International Affairs was formally estab- lished in the spring of 1988. The primary objectives of OJA are to provide a resource to the Academy complex and the broader U.S. science and engineering communities for information on Japanese science and technology, to promote better working relationships between the technical communities in the two countries by developing a process of deepened dialogue on issues of mutual concern, and to address policy issues surrounding a changing U.S.-Japan science and technology relationship. Staff Martha Caldwell Harris, Director Thomas Arrison, Research Assistant Maki Fife, Program Assistant

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Preface This report covers major insights from a one-day workshop on "R&D Consortia and U.S.-Japan Collaboration" organized by the Committee on Japan of the National Research Council and held on November 27, 1990. Part of a series focusing on key issues in U.S.-Japan scientific and techno- logical relations, the workshop was supported by a grant from the Rockefeller Brothers Fund. The purpose of the workshop was to explore issues and identify alternative approaches to competing and cooperating with Japan as a technological superpower. Richard J. Samuels, a member of the Committee on Japan and director of the MIT Japan Progam, chaired the workshop. He was joined by experts familiar with the context for R&D collaboration in the United States and Japan and by individuals with special expertise in international R&D col- laboration. The National Research Council's Office of Japan Affairs worked with the committee to focus the discussions at the workshop and to prepare this report, which captures major themes from the presentations and discus- sions. Those who made presentations at the workshop as well as the mem- bers of the Committee on Japan reviewed the report and provided many useful suggestions, but the report is not a consensus document or confer- ence proceedings. . . vie

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