FROM MISSION-ORIENTED TO DIFFUSION-ORIENTED PARADIGM - THE NEW TREND OF UNITED-STATES INDUSTRIAL-TECHNOLOGY POLICY

As post-World War II history shows, several 'diffusion-oriented' countries, Japan and Germany in particular, have performed better economically than some 'mission-oriented' countries, like France and the U.K. As the leading 'mission-oriented' innovator and 'first mover' country with three decades of economic and technological dominance and impressive 'spin-off' achievements, the U.S. has been eclipsed in its traditional competitive advantage by many 'smart followers' which have strong technical resources and complementary assets, and which could rapidly assimilate innovator's technical advances and compete away innovator's economic rewards. In order to revive, the U.S. Federal government is undergoing a structural transition in its industrial technology policy toward a 'diffusion-oriented' paradigm. This new trend also reflects the growing skepticism and even disillusionment about the conventional 'spin-off' rationale. In the 'diffusion-oriented' policy framework, the U.S. Federal government's active participation in 'generic' and 'precompetitive' technology is a rather novel strategic movement in this country. However, there are still many delicate issues involved in, especially, 'precompetitive' industrial joint R&D remaining to be solved. Moreover, this new policy orientation in the U.S. may have some far-reaching implications. First, global technological progress may be slowed down because other countries cannot replace the U.S. in radical innovation. Second, the Japanese experience may be emulated widely because its 'diffusion-oriented' strategy constitutes the new 'Japanese challenge'. Finally, the U.S. would face many challenges in this transition because the U.S. institutional framework will need to be modified and this will take time.