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3 Science, Technology, and Innovation in the United States
Pages 45-51

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From page 45...
... industry has made great progress in adapting to flexible production systems and linking technology development more effectively to products and markets. However, [ong-term barriers to sustained growth and productivity gains remain, such as the uneven quality of K-12 education and a low savings rate.
From page 46...
... security environment allowed relatively low defense spending. High trade barriers encouraged the growth of domestic manufacturing industries and the inflow of foreign technologies.
From page 47...
... The Manhattan Project also created a worId-class concentration of talent and physical infrastructure in basic and applied engineering in the United States, a capability that evolved into today's system of multi-program national laboratories. The development of radar, in which the Radar Laboratory at the Massachusetts Institute of Technology played the key coordinating role for military users, academic researchers, and industrial manufacturers, demonstrated the potential power of interdisciplinary and cross-sectoral linkages.
From page 48...
... Military funding supported many of the key innovations in microelectronics and computers, but the product demand from weapons systems probably constituted a larger contribution to the development of these industries than direct R&D support.~5 THE COMPETITIVENESS CRISIS AND RESPONSES During the 1960s and 1970s, many U.S. manufacturing companies and industries began to lose competitiveness in international and domestic markets.
From page 49...
... market. The industries in which the United States has experienced the greatest competitiveness problems have tended to be the ones in which the Japanese advantages of flexible production including continuous improvement in manufacturing processes and close interactions between manufacturers and suppliers in product development and production-could be put to work for maximum impact.~7 In the chemical and pharmaceutical industries, where competitiveness is more tightly linked to the generation of product innovations through R&D, U.S.
From page 50...
... companies have restructured their R&D organizations to improve efficiency and responsiveness to market needs and have sought to utilize linkages with suppliers, customers, and universities to spread the costs and risks of technology development.23 Passage of the National Cooperative Research Act in 1984 and its expansion in 1993 to include production joint ventures have created a more favorable environment for intercompany R&D and production linkages, initiatives such as PNGV could not have been launched under previous policies.24 Strengthened protection and enforcement of intellectual property rights in the United States appear to be allowing savvy U.S. companies to achieve greater returns on their technology investments.25 Perhaps the most promising trends for U.S.
From page 51...
... companies in meeting the demands of global competition, other important aspects of the manufacturing environment, such as inadequate capital formation caused by low savings rates and stagnant growth in real incomes, remain and are likely to persist. The future federal role in science and technology is still subject to intense debate, particularly federal support for applied research and appropriate modes of governmentindustry partnerships in areas of research that are applied and close to commercialization.


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