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Executive Summary
Pages 1-13

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From page 1...
... The United States, like its major industrialized allies, views the ability to generate and use advanced technologies as essential, both to national economic well-being and to military strength. Many governments -- most notably Japan and France -- have designed comprehensive national policies to help promote successful technology and trade development in major sectors -- telecommunications, biotechnology, computers, microelectronics, and aerospace, for example.
From page 2...
... Finally, the panel discusses how various national practices may be evaluated and negotiated among nations in support of a healthy mutual international trading system -- and what steps the United States must take to protect its interests should international negotiations fail. While the panel recognizes that contending policy objectives may at times take precedence over the requirements for national strength in technological innovation and trade competitiveness, it concludes that the U.S.
From page 3...
... commercial and military advanced technology systems are complex, but it is clear that military systems rely on a strong civilian industrial base and that many commercial efforts benefit from defense and space research and development expenditures and procurement. NATIONAL CAPACITY FOR INNOVATION Our capacity for technological innovation is commonly perceived in terms of industrial sectors -- microelectronics, computers, new materials, robots, telecommunications, aerospace, and, most recently, biotechnology.
From page 4...
... Product planning requires knowledge of new technologies in the research phases; development of commercially successful products requires links with marketing assessments; and successful commercialization pays for the next round of technological advance. The innovation process, then, is an interlocking system that must be strong throughout.
From page 5...
... These instruments -- which are come patible with our culture and style (as total governmentindustry coordination in the manner often attributed to Japan is not) -- include tax policies fostering research, development and investment in production facilities, patent laws, regulation and deregulation, antitrust measures, export/import bank loans, and government procurement, among others.
From page 6...
... of U.S. elementary and secondary educational systems, postsecondary institutions, and continuing education programs, especially in maintaining and renewing our technological and scientific manpower and knowledge; · the trends in our comparative international trade standing; and · the policies of major trading partners and their effects on the United States and the international trading system.
From page 7...
... ADVANCED TECHNOLOGY TRADE PRACTICES U.S. firms face a mixed international trading system in which they are operating independently as private entities, yet are frequently competing with foreign firms, singly or in consortia, that either are government entities or have strong government backing.
From page 8...
... Such a policy is required, both to preserve the U.S. position as a major source of innovation and to ease growing tensions among the industrialized allies, tensions that threaten not only international economic and political management, but also mutually beneficial cooperation in science and technology.
From page 9...
... Vulnerability could develop because of successful aggressive policies of our allies, which individually may or may not be considered as unfair, but which together endanger U.S. major technology industries and fundamental advanced technology capacity deemed essential to economic well-being and military security.
From page 10...
... Each part of the process must be sound for success. · Some of the elements that support our nation's innovative capabilities include a strong national research base, technically educated manpower and a technically literate population, capable and farsighted industrial managers, a financial base that provides capital to both new and established firms, and sizable markets.
From page 11...
... Successful managers increasingly will have to be cognizant of frontier technologies as they build businesses and compete in an international world. · Our major industrialized allies -- most notably Japan and France -- have designed comprehensive national policies to help ensure successful technology and trade development in major sectors.
From page 12...
... · If key technology industries essential to national economic welfare and military security are considered endangered by the actions of another country, even with all necessary domestic efforts to strengthen these sectors, then the United States should negotiate with the other country requesting immediate relief. Negotiations should take place first in existing forums, explaining
From page 13...
... capabilities, then the United States should negotiate directly with the country in question. If those bilateral negotiations fail or if the threat of damage is imminent, the United States should take immediate unilateral actions as a step of last resort.


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