Publications Details
Government`s response to the competitiveness problem
This paper presents an analysis of how the US government responded to the concern in the 1980`s that US companies were experiencing problems of competitiveness in international markets. By the mid 1980`s there was great and growing concern throughout the US that US companies were experiencing difficulties in international competition. Pressure on Congress to take action came from constituents seeking jobs and companies that would directly benefit (this usually means receive public money) from programs that Congress might initiate. The fact that most constituent calls to Congress were about job creation was lost in the on-rush of R&D performers seeking funds for their favorite R&D project. In response, Congress created the Advanced Technology Program, the Technology Transfer Initiative, and the Technology Reinvestment Project, expanded the responsibilities of ARPA/DARPA, increased funding for the Small Business Initiative, expanded the Manufacturing Extension Partnership, funded SEMATECH, and increased NSF funding for basic research at universities. Many of these programs were later criticized for being industrial welfare and several were cut-back or stopped. Retrospective analysis shows that few of these programs addressed the root cause of competitiveness difficulties. In fact, by the time most of these programs were in place, US companies were well on their way to correcting their competitiveness problems. In addition, few were relevant to companies` often expressed concerns about workforce training, regulatory costs, and access to foreign markets. Twenty percent reductions in health care costs, regulatory costs, and education costs could annually pump $500 billion into the US economy and make companies operating in the US much more competitive in international markets.