Technology and Global Industry Companies and Nations in the World Economy (1987) / Chapter Skim
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National and Corporate Technology Strategies in an Interdependent World Economy
National and Corporate Technology Strategies in an Interdependent World Economy
Pages 246-256
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From page 246... ...
Minister of Technology. Speaking at the British Embassy In Washington, D.C., he Introduced the idea Hat Her Majesty's government should appoint ambassadors to He largest multinational companies - on tile grounds dial He companies' gross revenues exceed He gross national product of many small counties and Hat Weir policies had more impact on U.K.
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From page 247... ...
When the governments of India, Nigeria, or I'ldonesia decide to adopt policies that IBM believes reduce its prospects of success below acceptable levels, the company does not hire mercenanes; it leaves He county or changes the way it does business. Though direct corporate challenges to national sovereignty are disappearing, there is, it seems, a concomitant grown in the ways in which an increasingly global economy impinges on sovereignty.
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From page 248... ...
Businesses stardng joint ventures In China may be pess~shc about Weir likely commercial success, but Be potential markets are so huge that, In Be long run, even a small chance of success warrants a considerable effort and Investment. The PRC's need to master certain key technologies also creates a high-nsk/high-reward situation, in Cat Be importance of He technology may warrant considerable political risk in ~y~g to acquire it Trough joint ventures web foreign firms, even when this might give a particular fun undesired market power in the county or lead to unwanted foreign political or cultural influences.
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From page 249... ...
Industry has a strong voice ~ He government's technology strategy, and government concerts Industry action in He export arena, leaving domestic competition largely free of government direction. In Europe Here is superposed on each country's national policy a regional attempt to gain He benefits of European economic integration wi~out paying the political and cultural penalty of more extensively shared sovereignty.
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From page 250... ...
A final example is Brazil, which follows a mixed strategy, cent ally directed, to encourage foreign investment in selected areas and reserve the large domestic market In others. This market-reservation policy is pursued win considerable tenacity, ever to Me powt of refusing permission to foreign firms Ming to export from Brazil the majority of their manufac~red output.
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From page 251... ...
When the European Economic Community (EEC) sought to integrate die European economies, firms such as IBM had little difficult organizing their businesses to take advantage of the special strengths of each country, avoid needless duplication, and serve the entire market with a product tine of minimum national diversity.
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From page 252... ...
Thus, most governments give great political weight to He significance of domestic ownership of national enterprises. When acting in He public view, government officials may favor a domestically owned company that Imports goods of foreign manufacture over a ~ansnanonal firm's local subsidiary, even Bough it employs thousands of people; Invests heavily ng, research, and development; and contributes more to national economic performance and He balance of trade than He domestic firm.
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From page 253... ...
The world is evolving from a loosely coupled set of independent nationstates to a highly complex world economy whose institutions of extraand international sovereignty are still undeveloped, and in which national boundaries are often a poor fit to more natural economic regions. Reflecting them awareness of these political realities, managements of bow transnational companies and governments pursue technological strategies that are designed in part to reinforce perceptions that are important to ~em.
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From page 254... ...
~ most programs, although surprissily not in its current artificial Intelligence program at Me Institute for New Generation Computer Technology (ICOT) , the government gives strong emphasis to field teals and applications research to test market acceptance.
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From page 255... ...
European governments have embraced EUREKA in principle and officially regard it as "complementary" to Be EEC's "Technology Commuriity" proposal. like EUREKA and ESPRIT, Be Technology Community proposal focuses on the set of technologies that all countries generally regard as strategic: informadcs, biotechnology, advanced materials, automation, telecommunications, lasers, and educational technologies.
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From page 256... ...
Of course, since national subsidiaries work hard at canting acceptance as national entices, Hey too share national economic asp~rabons, and their political views may well be In full accord Ural their governments'. In most regions of He world, both political and economic realides are forcing nations to make common cause at least regionally, and the European Common Market is He most conspicuous example.
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