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KEY POLICY ISSUES 146 The subject is complex. The data concerning the effectiveness of explicit industrial policies implemented in other countries are incomplete, giving rise to varying interpretations. Any proposed changes in U.S. policy must recognize our own traditions, values, and institutions. Nevertheless, the future prospects of civil aircraft development and manufacturing for the U.S. industry lend urgency to the assessment. International trade is important to the U.S. economy. It faces increasingly powerful international competition, and the entire apparatus of governmentânot just trade policyâtends to reflect the priorities and perceptions of an earlier time when our total international trade was much less significant. Furthermore, for a period after World War II the United States enjoyed an unsustainable economic and technological dominance that pulled us into a false sense of competitive superiority. What is needed, perhaps more than anything else, is a change in tone and attitude, the creation of a changed national consensus that gives the needed greater weight to international trade and strengthening of the U.S. competitive position. BALANCING ECONOMIC AND SECURITY INTERESTS IN TECHNOLOGY TRANSFER As this report has noted, international technology transfer has an impact on both the perception and the reality of U.S. national security. With the increasing importance accorded to technology, it offers potential leverage in diplomacy. The conventional view is that formulation of policy in this area requires balancing national security or foreign policy objectives against those of strengthening the economy and preserving the U.S. position in advanced technology. This study has emphasized that a broader view of national security should include economic strength and technological leadership. It is important to recognize the changing position of the U.S. vis-Ã -vis that of international competitors and world markets. In technological competition, the United States appears still to have a lead in most of the technologies associated with aircraft design and manufacture; however, the lead is small, the rate of technical diffusion has increased, and both our European and Japanese competitors possess the necessary skills and capabilities to compete effectively with or without further technology transfer from the United States. The international competitive equation has also changed due to factors other than technology. International markets are projected to grow more rapidly than U.S. domestic markets and thus become increasingly important. In addition, after many
