Technological Infrastructure Policy: An International Perspective

381 Pages·1996·7.017 MB·English

by  Morris Teubal, Professor Dr. Dominique Foray, Moshe Justman, Dr. Ehud Zuscovitch (auth.), Morris Teubal, Professor Dr. Dominique Foray, Moshe Justman, Dr. Ehud Zuscovitch (eds.)

TECHNOLOGICAL INFRASTRUCTURE POLICY
Economics of Science, Technology and Innovation
VOLUME 7
Series Editors
Cristiano Antonelli, University o/Torino, Italy
Bo Carlsson, Case Western Reserve University, U.S.A.
Editorial Board
Steven Klepper, Carnegie Mellon University, U.S.A.
Richard Langlois, University o/Connecticut, U.S.A.
J. S. Metcalfe, University 0/ Manchester, u.K.
David Mowery, University o/California, Berkeley, U.S.A.
Pascal Petit, CEPREMAP, France
Luc Soete, University o/Limburg, The Netherlands
The titles published in this series are listed at the end of this volume.
~
THE JERUSALEM INSTITUTE FOR ISRAEL STUDIES
TECHNOLOGICAL
INFRASTRUCTURE POLICY
An International Perspective
Edited by
MORRIS TEUBAL
Hebrew University, Israel,
and
Head of the Industrial Policy Group,
The Jerusalem Institute for Israel Studies
DOMINIQUE FORAY
Sr. Researcher,
Centre National de la Recherche Scientifique (CNRS),
and
Ecole Centrale Paris
MOSHE JUSTMAN
Chair,
Department ofE conomics,
Ben Gurion University,
Israel
and
EHUD ZUSCOVITCH
Department ofE conomics,
Ben Gurion University,
Israel
and
Centre National de la Recherche Scientifique (CNRS)
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
A c.I.P. Catalogue record for this book is available from the Library of Congress.
ISBN 978-90-481-4649-9 ISBN 978-94-015-8739-6 (eBook)
DOI 10.1007/978-94-015-8739-6
Printed on acid-free paper
All Rights Reserved
© 1996 Springer Science+Business Media Dordrecht
Originally published by Kluwer Academic Publishers in 1996
Softcover reprint ofthe hardcover Ist edition 1996
No part of the material protected by this copyright notice may be reproduced or
utilized in any form or by any means, electronic or mechanical,
including photocopying, recording or by any information storage and
retrieval system, without written permission from the copyright owner.
Table of Contents
Foreword ........................................................................................................ xi
About the Authors ........................................................................................ xiii
An Introduction to Technological Infrastructure
and Technological Infrastructure Policy - The Editors ............................... 1
1. The Role ofTI in Economic Growth .................................................. 2
2. Alternative Definitions and Components of TI and TIP .................. 10
3. TI and Markets ................................................................................. 13
Concluding Remarks .............................................................................. 15
References .............................................................................................. 15
I. Underpinnings ....................................................................................... 19
Technological Infrastructure Policy (TIP): Creating Capabilities
and Building Markets - Moshe Justman and Morris Teubal ................... 21
1. Technological Infrastructure ............................................................ 22
2. Basic Technological Infrastructure ................................................... 32
3. Market Building in Basic Technological Infrastructures ................. 33
4. Market Failure in Basic Technological Infrastructures .................... 36
5. Sectoral Technology Centers (TCs) ................................................. 38
6. Advanced TI: Capability Creation and the Need for
Cooperation ...................................................................................... 40
7. Functional TIP for Advanced Technologies ..................................... 44
8. The Technological Infrastructure Policy Framework:
A Tentative Summary ...................................................................... 47
9. Concluding Remarks: Notes on Implementation ............................. 50
References .............................................................................................. 54
v
VI Technological Infrastructure Policy: An International Perspective
Infratechnologies and Economic Growth - Gregory Tassey ..................... 59
1. Types and Functions of Technological Infrastructure ...................... 60
2. Economic Roles of Infratechno1ogies .............................................. 61
3. Technology-Based Market Failures ................................................. 66
4. Mechanisms for Developing and Delivering Infratechno1ogies ....... 73
5. Trends in Technological Infrastructure ............................................ 76
6. NIST and the Benefits of Government Investment in
Infratechno1ogy ................................................................................. 78
7. Estimates of Economic Impacts ....................................................... 81
8. Conclusions ...................................................................................... 84
References .............................................................................................. 85
Information Distribution and the Growth of Economically
Valuable Knowledge: A Rationale for Technological
Infrastructure Policies - Paul A. David and Dominique Foray ............... 87
1. The Economics of Knowledge Distribution:
Interactions and Positive Externalities ............................................. 88
2. Knowledge, Institutions, and Knowledge Distribution Power ......... 93
3. Coping with the Extension of Property ............................................ 99
4. A New Role for Intellectual Property Rights ................................. 103
5. The Information Search Problem ................................................... 105
6. TIP Options to Increase Knowledge Distribution Power ............... 108
7. Conclusion ...................................................................................... 112
References ............................................................................................ 113
Technological Infrastructure in Information Technology
Industries - W. Edward Steinmueller ...................................................... 117
1. Involuntary Knowledge Spillovers and The Theory of
Technological Infrastructure .......................................................... 119
2. Development of Technological Infrastructure in
The Computer Industry .................................................................. 124
3. Technological Infrastructure in Integrated Circuits
and Digitization .............................................................................. 127
4. Implications of Information Technology for
Technological Infrastructure .......................................................... 128
Table of Contents vii
5. Implications of Technological Infrastructure for
Industry Structure ........................................................................... 131
6. Public Policy Implications .............................................................. 135
References ............................................................................................ 137
Government Technology Procurement as an Instrument of
Technology Policy - Charles Edquist ....................................................... 141
1. Innovation Theories and Government Technology
Procurement .................................................................................... 143
2. Examples of Government Technology Procurement ..................... 146
3. The Policy Roles of Government Technology Procurement.. ........ 152
4. Technology Procurement in Practice .............................................. l58
5. Summary and Conclusions ............................................................. 167
Annex: Possible Future Procurement Projects ..................................... 168
References ............................................................................................ 168
II. TIP for Leading-Edge Industries ................................................. 171
The Design of High-Technology Consortia: Lessonsfrom
SEMATECH - Peter Grindley, David C. Mowery, and
Brian Silverman ......................................................................................... 173
1. Design and Policy Issues for R&D Consortia ................................ l 74
2. The Foundation and Structure of SEMATECH ............................. 178
3. Evaluating SEMATECH ................................................................ 185
4. Lessons of SEMATECH ............................................................... .199
5. Conclusion ...................................................................................... 207
Consortia Abbreviations ....................................................................... 21 0
References ............................................................................................ 211
Biotechnology and Advanced Technological Infrastructure
Policies: The Example of the UK's Protein Engineering
Club - Margaret Sharp .............................................................................. 217
l. Biotechnology and Protein Engineering ......................................... 218
2. Biotechnology as Advanced Technological Infrastructure ............ 224
viii Technological Infrastructure Policy: An International Perspective
3. The Biotechnology Directorate and the Protein Engineering
Club ................................................................................................ 226
4. The Protein Engineering Club 1985-1989 ...................................... 228
5. The Protein Engineering Club as an Advanced
Technological Infrastructure Policy ............................................... 237
6. Conclusions .................................................................................... 243
References ............................................................................................ 245
Generic R&D Collaboration Between Firms: The Israeli
Experience - Dan Kaufmann and Tamar Yinon ..................................... 247
1. Generic Research and Technological Infrastructure Policy ........... 248
2. The MAGNET Program ................................................................. 251
3. Stimulating Collaborative GR: A Dynamic Perspective ................ 253
4. The Role ofIndustrial Support Centers .......................................... 254
5. Setting Program Priorities .............................................................. 256
6. The Institutional Framework .......................................................... 257
7. Conclusions and Policy Implications ............................................. 263
References ............................................................................................ 266
III. TIP for SMEs in Established Industries .................................... 269
Transfer of Technology to Small and Medium Enterprises
(SMEs): Conceptual Changes and Lessons from the Two Banks
of the Rhine - Patrick Cohendet.. ............................................................ 271
1. Technology Transfer and Theoretical Representation of the
Innovation Process ......................................................................... 272
2. Technology Transfer, Service Relationships, and
Local Systems of Innovation .......................................................... 278
3. Conclusion ...................................................................................... 281
References ............................................................................................ 283
Table of Contents ix
Modernizing Small Manufacturers in the United States
and Japan: Public Technological Infrastructures and
Strategies - Philip Shapira ........................................................................ 285
1. Technological Infrastructure Policy Environment
in the U.S. And Japan ..................................................................... 286
2. SMEs and Industrial Modernization in the U.S ............................. 290
3. U.S. Modernization Policies ........................................................... 295
4. Assessment of U.S. Approaches ..................................................... 307
5. The Japanese Situation: The Changing Position of SME's ........... .309
6. Modernization Policies in Japan ..................................................... 311
7. Assessment of Japanese Approaches .............................................. 317
8. Comparisons and Contrasts in U.S. and Japanese
Approaches to Industrial Modernization ....................................... .321
Abbreviations and Acronyms ............................................................... 329
References ............................................................................................ 329
Modernizing Manufacturing: Consultancy, Advisory, and
Extension Services to Improve Small Business Performance -
Graham Vickery ......................................................................................... 335
1. Why Consultancy and Industrial Extension? ................................. 336
2. Aims and Design of Consultancy, Advisory, and
Extension Services ......................................................................... 347
3. Key Dimensions of Program Design .............................................. 352
4. Program Implementation ................................................................ 358
5. Lessons from Programs .................................................................. 364
References ............................................................................................ 370
Foreword
This collaborative volume examines the notion of Technological Infrastructure
(TI) and the form and function of Technological Infrastructure Policy (TIP)
from a variety of perspectives within the general context of the Economics of
Innovation and Technology Policy fields. It is comprised of an introductory
chapter and three sections. The introductory chapter and Section 1 offer a
conceptual discussion of TI, and introduce the distinction between basic TI
aimed at absorbing and diffusing externally-developed technology, and
advanced TI involving the development of generic, cutting-edge technologies
through the cooperative efforts of business firms, often in collaboration with
public-sector institutions. Section 2 then elaborates on advanced TI while
Section 3 focuses on basic TI.
The book is an outgrowth of two earlier initiatives of the Industrial
Development Policy Group (IDPG) of the Jerusalem Institute for Israel Studies.
The first was an IDPG volume in Hebrew, published in 1993, and edited by
Justman, Teubal, and Zuscovitch, entitled Technological Infrastructure Policy
for Renewed Growth. It aimed at contributing to the design of a new policy
effort in Israel supporting collaborative precompetitive research and
development. The second was an International Symposium on Liberalization
and Technological Infrastructrue in which most of the contributors of this
volume participated. The long-time collaboration between Justman, Teubal,
and Zuscovitch within IDPG, and D. Foray's insights into its subject matter
and contribution to its design resulted in the present volume.
This book would not have been possible without the long-term
commitment of the Jerusalem Institute for Israel Studies to the activities of
IDPG and in particular to its support of the latter's efforts to apply a conceptual
framework to deal with the concrete industrial and technology policy issues
of the day. We much appreciate the continued encouragement of Ora Ahimeir
and Professor Abraham (Rami) Friedman, directors of the Jerusalem Institute
for Israel Studies. Our heartfelt thanks to the individual authors for their
xi