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U.S. Department of Energy
Office of Scientific and Technical Information

Technology exports can hurt us

Journal Article · · Foreign Policy; (United States)
DOI:https://doi.org/10.2307/1148028· OSTI ID:7331125
In contrast to the position that American firms have protected national economic interests by limiting the export of technology, these firms may be helping to reduce the country's trade balance and technical leadership by establishing foreign affiliates and licensing technology to foreign manufacturers. Examples of technology transfers include automotive, aircraft, chemical engineering, computer, and consumer electronics industries which sold sophisticated technology instead of following traditional patterns of foreign investment and licensing. A variety of motives were discovered in a case study of 25 corporations willing to release proprietary technology, from capital shortages to the sale of unneeded technology, but with the recent shift in the bargaining power of purchasers having special significance. Implications for the U.S. economy may be erosion of U.S. production jobs, with shifts in manpower needs and market shares that will be disruptive. Two major guidelines are recommended to ensure the future competitiveness of U.S. industry: (1) sector analyses should be undertaken to determine trends and give warning of technology erosion early enough to allow either preventive controls or incentives for commercialization within the U.S.; and (2) interagency review of technology transfer agreements should be expanded to evaluate and furnish details of the economic impact of these agreements. (DCK)
Research Organization:
Developing World Industry and Technology, Inc., Washington, DC
OSTI ID:
7331125
Journal Information:
Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 25; ISSN FRPLA
Country of Publication:
United States
Language:
English