Technology Infrastructure and Competitive Position

Global interest in technology-based growth politics is growing as technology becomes an increasingly important factor in economic competitiveness. In spite of increased efforts in many nations to develop more effective industry strategies, most of these e

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Competitive Position

Technology Infrastructure and

Com petitive Position

Gregory Tassey

Springer Science+Business Media, LLC

Library of Congress Cataloging-in-Publication Data Tassey, Gregory. Technology infrastructure and competitive position / Gregory Tassey. p. cm. Inc1udes bibliographical references. ISBN 978-1-4613-6603-4 ISBN 978-1-4615-3608-6 (eBook) DOI 10.1007/978-1-4615-3608-6

1. Technology--United States. 1. Title.

1992 338.9'7306--dc20

1'21.T33

2. Competition, International.

92-1291 CIP

Copyright @ 1992 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1992 Softcover reprint ofthe hardcover Ist edition 1992 AII rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means. mechanical, photo-copying, recording, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, LLC. Printed on acid-free paper.

About the Author Gregory Tassey is senior economist for the National Institute of Standards and Technology in Gaithersburg, Maryland. Prior to assuming that position, he was Chief of Economic Policy Research for the Experimental Technology Incentives Program in the Department of Commerce. Since receiving the Ph.D. from George Washington University in 1978, he has conducted strategic planning and microeconomic analyses of technology-based industries and the government policies that affect them. His research has been published in economics, business, and policy research journals; he is co-author of Strategies for Technology-Based Competition (Lexington Books) and co-editor of Cooperative Research and Development: The Industry-University-Govemment Relationship (Kluwer Academic Publishers).

All opinions expressed in this book are those of the author and do not represent official positions of the Department or Commerce or the National Institute of Standards and Technology.

To my wife and daughter: they love me more than economics, which enabled thi~ book to be completed

Table Of Contents

Acknowledgements xiii List of Figures xv List of Tables xvii Preface xix

Chapter 1 THE ECONOMIC ROLES OF TECHNOLOGY INFRASTRUCTURE 1 A Changing Framework for Growth Strategies 4 The Role of Technology in Economic Strategy 5 The Elements of Technology Infrastructure 9 A Brief History of Technology Infrastructure Policy 11 Chasing the Japanese Model 16 The Need for Expanded Technology Infrastructure 17 The Evolution of National Economic Strategies 20 Summary 26

Chapter 2 STRATEGIC ISSUES IN TECHNOLOGY· BASED COMPETITION 29 Indicators of Competitive Position 31 Microeconomic Indicators of Competitive Position 36 The Information Technology Production Chain 37 Growth Policy Issues 47 Economic Impacts of Infrastructure R&D 52 Summary 54

Chapter 3 A CONCEPTUAL MODEL OF TECHNOLOGY INFRASTRUCTURE 57 Generic Technology 60 Infratechnology 60 Management Practice 64

x

Implementing New Infrastructure Roles 65 The Dynamics of Technology-Based Competition