Most industrial nations actively support research and development
of advanced computer technology. They usually justify public
expenditures on the basis of both economic and national security
benefits. This heavy government involvement and the international
nature of the computer industry have created increasing challenges
to accepted principles of international trade and investment.In
this detailed analysis of the origins and evolution of government
support for computer technology in the United States, Western
Europe, and Japan, Kenneth Flamm compares the amounts these
countries have invested and how they have organized public and
private funding over the past thirty-five years. He challenges
popular myths about the size and effectiveness of government
programs to support computer technology, and argues that the data
suggest a high social rate of return on those investments. Flamm
concludes that the United States must reevaluate its policies on
research and development. The role of military programs as the
primary vehicle for computer technology development should be
de-emphasized in favor of support for joint, pre-competitive
industrial research. Cooperative research ventures linking
universities and industry also ought to be encouraged. Since global
markets are vital to American computer firms, Flamm argues that
policies to promote orderly international trade and investment in
high-technology products are needed to avoid an expanding spiral of
protectionism.
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