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2 Background and Policy Context
Pages 12-35

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From page 12...
... Throughout the history of the Japanese aircraft industry there has been an interplay between the push for indigenously developed technologies by an independent Japanese industry, and the need to form technology linkages, given the realities of the global marketplace and the need to access technology from abroad. The four Japanese "heavies" Mitsubishi Heavy Industries (MHI)
From page 13...
... , Heisei Yonendohan Kokuchunenkan (Aerospace Industry Yearbook 1992 Edition) , (Tokyo: Koku Nyusu, 1992)
From page 14...
... SOURCE: Nihon Kokuchukogyokai (Society of Japanese Aerospace Companies) , Heisei Yonendohan Kokuchukogyo Nenkan (Aerospace Industry Yearbook 1992 Edition)
From page 15...
... Although Japan did make one attempt (the YS-ll) to develop a commercial aircraft, the 64-seat, twin-engine turboprop was a failure in the markets Since that time, all major commercial transport aircraft programs in which Japan has participated have involved technology linkages with foreign firms.
From page 16...
... In Japan, direct and indirect financial assistance has been an important policy instrument for government support of the commercial aircraft industry. The second Aircraft Promotion Law of 1958 set the policy framework for promoting the civilian aircraft industry.
From page 17...
... and the Export-Import Bank for development and for aircraft imports.~° The International Aircraft Development Fund (IADF) , since its establishment in 1986, has been a major vehicle for government support of Japanese participation in new international commercial aircraft programs.
From page 18...
... Japan Development Bank Loans V2500, 777 and YXX Science and Technology Agency National Aerospace Laboratory Japan Defense Agency Other Support Japan Development Bank and Export-Import Bank loans for aircraft imports 92.5 19.3 18.2 5.3 36.8 1 16 1 0.1 0.1 1,091 (1)
From page 19...
... , Heisei Yonendohan Kokuchukogyo Nenkan (Aerospace Industry Yearbook 1992 Edition) , (Tokyo: Koku Nyusu, 1992)
From page 20...
... Japanese government agencies have sponsored two R&D consortia in the engine field. The first, the JFR-710 project, supported by the National Aerospace Laboratory as an experimental development project in the 1970s, provided the foundation for Japanese participation in the V2500 project.'6 More recently, MITI launched the HYPR program in 1989, designed from the start as an international collaborative effort in supersonic engine technologies.
From page 21...
... en o ~ cn As (3 o o O: CL cn ~ I O , ci' O I r L by G C)
From page 22...
... Federal Aviation Administration figure includes research, engineering, and development; and facilities, engineering and development. SOURCE: National Aeronautics and Space Administration, "Aeronautics and Space Report of the President" (annual)
From page 23...
... While some identify NASA's civil aeronautics program with industrial policy, there is growing interest today in coupling NASA's R&D more closely to industry, a theme that NASA took up in 1993.2' Although Japan's National Aerospace Laboratory is funded at an annual level of about $100 million or less than onefifth of NASA's budget for aeronautical R&D,22 it does support some work in areas such as composite materials important to the future commercial aircraft industry. Japan's government-supported domestic cooperative programs, particularly those supported by MITI, are more strongly oriented to technology sharing among Japanese companies and commercialization of technologies for commercial aircraft than those supported by the U.S.
From page 24...
... New financing techniques have, moreover, made private borrowing more feasible to purchase aircraft. In Japan, the Japan Development Bank and the Export-Import Bank continue to support aircraft imports with loans totalling $1.9 billion appropriated in 1992.23 In recent years, The U.S.
From page 25...
... Total loan authorizations Loan authorizations supporting commercial jets Total guarantee authorizations Guarantee authorizations supporting commercial jets 604 o 6,016 566 NOTE: Commercial jet category includes complete aircraft, engines, parts, and retrofits. SOURCE: Aerospace Industries Association, Aerospace Facts and Figures 1992-1993 (Washington, D.C.: AIA, 1992)
From page 26...
... On the one hand, a higher percentage of aircraft production directed to military demand in Japan as compared to the United States suggests a strong effect on capital equipment spending by IDA. On the other hand, Japanese companies finance a large share of their R&D investments with their own funds, with the expectation of large, lucrative IDA procurement down the line.
From page 27...
... 27 180 160 140 120 100 80 60 40 20 a 1988 1989 1990 1991 1992 1993 1994 1995 Fiscal Year I ~ ManTech I FIGURE 2-2 DOD manufacturing technology fixed-wing aircraft. NOTE: ManTech shown for fixed-wing is about 50 percent of total ManTech.
From page 28...
... A former director of the TRDI, JDA's R&D institute, has noted that in technology there is no black or white, only gray it becomes military or civilian in application.3i Japan's approach to military R&D has been not to focus on technology breakthroughs, but rather to stimulate industrial sectors and technologies that have a wide range of applications, carefully arranging for a division of labor among companies that promotes building of specialized skills that complement those of other firms. Japanese companies have developed substitute components for weapons systems licensed from the United States (either because the components were "black boxed" and Japan wished to develop independent technology or as improvements on U.S.-origin technologies)
From page 29...
... In Japan, while there also exist some obstacles to military-civilian interactions related to military specifications and procurement practices, there are offsetting factors. The fact that military aircraft production is carried out by large Japanese companies with diversified production in other sectors, as well as the coloration of military and civilian production lines create opportunities for cross-fertilization of manufacturing know-how and sensitivity to the potential applications of technologies developed on the commercial side.
From page 30...
... , which sometimes acts as coordinator (as has been the case with the international consortium on commercial aircraft components and foreign missions such as the recent trip to Russia) and Keidauren's Defense Production Committee.
From page 31...
... S Trade Representative SJAC Keidanren Defense Production Committee AIA American League for Exports and Security Assistance Consultations differ, depending on the program.
From page 32...
... Compared to other sectors such as computers and semiconductors, which are also the focus of policy, MITI has considerable influence over the aerospace industry because industry is Fin addition, the Office of International Programs has jurisdiction relating to R&D programs (as does ARPA potentially) , and consultations with the military services are essential for all cooperative projects involving military aircraft.
From page 33...
... International linkages are very much a focus of planning. SJAC recently sent a mission to Russia, with a resulting plan to invite Russian engine specialists to Japan and expand access of Japanese companies to Russian test facilities.40 Airbus has, meanwhile, expressed interest in cooperating with Japan's committee examining HSCT issues.
From page 34...
... 2. SJAC-Russia Joint Programs A mid-May 1993 SJAC mission to Russia resulted in an agreement to invite Russian engine specialists to Japan and~for Japanese companies to gain access to Russian test facilities (Japan Digest, May 27, 1993)
From page 35...
... The Japanese aircraft industry does not carry out full independent integration of airframes, but it has become a major player in the subsystems and components areas and, with the support of the government, has built significant indigenous capabilities. Japan has achieved increasing independence and growing technological strength by promoting international linkages, particularly in the defense areas Japan is pursuing international linkages and the development of indigenous capabilities simultaneously, skillfully managing international cooperation to derive maximum gains in terms of autonomous development.


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