Maximizing U.S. Interests in Science and Technology Relations with Japan (1997) / Chapter Skim
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6 Key Lessons and Priorities for the United States
6 Key Lessons and Priorities for the United States
Pages 113-128
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From page 113... ...
Particularly in critical sectors where sales are made to companies rather than consumers, such as automotive components and semiconductor manufacturing equipment, market barriers are still an issue. In some industries the Japanese policy environment in regulation, competition policy, intellectual property protection, and other areas still serves to prevent U.S.-based companies from fully participating in the Japanese market.
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From page 115... ...
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From page 116... ...
in automobiles, semiconductors, and other manufacturing industries, Japanese companies have moved many manufacturing activities to Asia, the United States, and elsewhere and have redoubled continuous improvement efforts to ensure that critical manufacturing tasks can be performed in Japan at competitive costs while recognizing flat domestic demand and possible broad swings in exchange rates. Japanese companies continue to aggressively pursue global markets in industries where they have experienced failure in the past, such as personal computers.
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From page 117... ...
In the automobile industry, for example, this has involved improved performance in both manufacturing and product development to close the gap with Japanese companies. As a nation, the United States has pursued a successful decentralized effort over the past decade to better understand Japan and pursue effective interactions.
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From page 118... ...
economic performance remains a subject of intense debate. The task force believes that this debate cannot be allowed to impair the U.S.
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From page 119... ...
citizens from science and technology relations with lap en ~ Although outside the scope of this study, the task force believes that these principles can and should be applied to U.S. science and technology relationships with other nations and regions, including those in Asia and Europe.
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From page 120... ...
agencies on various aspects of project management within the structure of the U.S.-lapan S&T Agreement would help ensure that new projects have access to an existing knowledge base and would promote greater coordination and cooperation across agencies in developing and managing cooperative programs. Second, more focus should be placed on tracking the results of official collaboration and the overall science and technology relationship.
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From page 121... ...
Perhaps in the future this effort could be linked with Asia Pacific Economic Cooperation and Organization for Economic Cooperation and Development efforts to develop better tools for measuring and understanding international science and technology relationships. The task force realizes that some effort and expense are involved in developing these metrics.
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From page 122... ...
Expanded Market Participation Provides Resources for Investment in Next-Generation Technology By raising returns on technology investments, overseas sales provide resources for the development of next-generation products and processes. This is an additional critical link between overseas market participation and U.S.
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From page 123... ...
A second alternative would be an assertive trade policy that tries to break down general structural barriers, such as intellectual property protection, and address specific market access issues in Japan, with an expanding focus on Asia (similar to current policies and trends)
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From page 124... ...
For example, stronger multilateral rules on competition policy could help address Japanese private sector practices such as tight links between distributors and manufacturers that have hindered the ability of new entrants to access Japanese distribution systems. Private-sector conditions and practices are also largely responsible for the continued difficulties that foreign and other new entrants have in accessing the Japanese market through direct investment.~7 In a multilateral context, progress in these areas will help ensure better returns to U.S.
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From page 125... ...
This comes from the observation that gaining intellectual property protection in Japan has been particularly difficult for some fundamental inventions, such as the integrated circuit patent of Texas Instruments. Since these sorts of inventions have a relatively high impact on the U.S.
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From page 126... ...
played a key role in pressuring the Japanese government and soft drink companies such as Kirin to allow Coca-Cola's entry into Japan in the 1950s because Mid} stood to benefit as a licensed manufacturer of Coca-Cola bottling equipment.23 Maintaining U.S. Capabilities in Science, Technology, and Innovation Another key priority for the United States will be to maintain capabilities in science, technology and, innovation, including manufacturing.
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From page 127... ...
Foreign Participation Another issue considered by the task force is foreign participation in government-funded R&D, particularly in programs targeted at commercial or potentially commercial areas. Several recent reports have addressed this issue.27 Currently, the United States and other countries have a variety of policies for regulating foreign access to national technology programs.
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From page 128... ...
The underlying ability of U.S.-based firms to participate effectively in foreign R&D programs should also be pursued through multilateral rules covering competition policy and direct investment, as outlined above. Finally, some members would retain nondiscriminatory performance requirements focused on ensuring that corporate participants retain full-spectrum capabilities in the United States, including R&D and manufacturing.
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