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Innovation Policy in Search of an Economic Foundation: The Case of Research Partnerships in the United States
Authors:Kathryn Combs  Albert Link
Affiliation:1. University of St. Thomas , Minneapolis, MN, 55403, USA Phone: +1-651-9624244 E-mail: klcombs@stthomas.edu;2. University of North Carolina , Greensboro, Greensboro, NC, 27402, USA Phone: +1-336-3345146 E-mail: al_link@uncg.edu
Abstract:US- owned firms account for more than 60% of worldwide computer software sales, and US capability in software tachnology is widely viewed as well ahead of that in other countries. However, the US lead cannot be expected to last. Nor are policies yet in place intended to protect exisitng advantages. Japanese firms have demonstrated their capabilities in hardware. Japanese firms have demonstrated their capabilities in hardware. Japanses exxecutives know they must develop better software in order (1) to use their own computer systems to best advantge, and (2) to sell more hardware in export markets. The next several devades will see a gradual slippage in the US position, particularly as foreign software suppliers move away from custom programming an realted services, their present focuse. A narrowing gap between US and foreign industries could prefigure a competitive challenge in software, development not unlike earlier challenges in microelectronics. Better software,. in addition, will have impacts elsewhere.In Japan's case, for example, improvements in softwarte should lead to productivity enhancements throughout the economy, improving Japan's ability to tmpete internationally.
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