Is U.S. high-technology manufacturing at risk? In response to the concern that an increasing amount of high-technology manufacturing formerly performed in the United States is now being done overseas, the Office of Science and Technology Policy asked the Rand Corporation to provide analytic support to the President's Council of Advisors on Science and Technology. The support included a description of past and current trends of U.S. high-tech manufacturing, a theoretical and empirical economic analysis of traditional and high-tech manufacturing, and an analysis of U.S. research and development statistics and of trends in choices of academic disciplines.

An examination of the effects of consolidation and globalization on the aerospace defense industry. The increasing consolidation of the defense aerospace industry, brought about by post-Cold War reductions in defense authorizations, has led to the proliferation of cross-border relationships between U.S. and European firms. This report examines aerospace industry globalization trends with a view toward determining how the U.S. Air Force can best exploit such trends while minimizing their risks. It concludes that further research must be done to ascertain how the advantages of globalization, such as increased competition and interoperability, can best be achieved without compromising security concerns. [AF]