The 1970s and 1980s witnessed growing concern in the United
States regarding the relative decline of the American economy and,
for defense planners, the military's growing dependence on foreign
production of weapons' parts and subcomponents--the guts of many
critical weapons systems. The period also witnessed growing
interest in industrial policy as a tool for promoting U.S.
international competitiveness, defense sectors proving to be
particularly attractive candidates for government economic
intervention. This study traces the evolution of defense dependence
and the U.S. government's response to this dilemma by examining
policy ideas and experiments in four defense industries--machine
tools, semiconductor manufacturing, ball bearings, and
high-definition television technologies--explaining successes and
failures, and reviewing prospects for expansion.
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