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Must the semi-conductor industry be subsidised?

  • Technology Policy
  • Published:
Intereconomics

Abstract

According to the memorandum entitled “Microelectronics 2000”, the Japanese and American lead in semi-conductor technology threatens not only the existence of a number of European firms but the prosperity of all the European economies. It therefore concludes that if Europe is not to be at the mercy of giant Japanese and US concerns the state must ensure the development of these key technologies by paying substantial subsidies. How valid is this argument?

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References

  1. Cf. K.-H. Narjes: Industriepolitik—eine europäische Aufgabe, in: G. Fels, O. Vogel (eds.): Brauchen wir eine neue Industriepolitik?, Cologne 1987, pp. 29 ff.; and Commission of the European Communities/FAST Team (eds.): Eurofutures: The challenges of innovation, Brussels and Luxembourg 1984.

  2. Commission of the EC: Verbesserung der Wettbewerbsfähigkeit und der Strukturen der Industrie der Gemeinschaft, Luxembourg 1986, p. 15.

  3. The view of the EC Commission is presented in detail in J. Starbatty, U. Vetterlein: Die Technologiepolitik der EG-Kommission —die richtige Antwort auf die technologische Herausforderung?, in: R. Biskup (ed.): Europa—Einheit in der Vielfalt (in the series “Beiträge zur Wirtschaftspolitik”, Vol. 50, edited by E. Tuchtfeldt). Berne and Stuttgart 1988, to appear shortly.

  4. Cf. Arbeitskreis Mikroelektronik: Mikroelektronik 2000, in: Informationstechnik 2000, Bonn 1987, text reference 0.3.

  5. Cf. Arbeitskreis Mikroelektronik, op. cit. Mikroelektronik 2000, in: Informationstechnik 2000, Bonn 1987, text reference 0.3, ref. 0.2. f.

  6. Cf. Arbeitskreis Mikroelektronik, op. cit. Mikroelektronik 2000, in: Informationstechnik 2000, Bonn 1987, text reference 0.3, ref. 0.4.

  7. Cf. Arbeitskreis Mikroelektronik, op. cit. Mikroelektronik 2000, in: Informationstechnik 2000, Bonn 1987, text reference 0.3., ref. 5.5.

  8. See also H. Klodt: Mehr Sternschnuppen als Sternstunden. Eine kritische Bilanz der staatlichen Forschungsförderung, in: Frankfurter Allgemeine Zeitung, No. 253, 31 st October 1987, p. 15.

  9. Cf. K.-H. Narjes, op. cit. Industriepolitik.—eine europäische Aufgabe, in: G. Fels, O. Vogel (eds.): Brauchen wir eine neue Industriepolitik?, Cologne 1987, p. 29.

  10. Cf. high Tech. Das Deutsche Technologie-Magazin, No. 3/1988.

  11. Federal Ministry for Research and Technology: Argumente zur F&E-Politik, 11/1985. Incidentally, the Teflon pan is not the result of space research; K. Geisen states on p. 29 of “computer zeitung”, No. 63 of 12th October 1987, “That is another myth, like the story of the famous Teflon pan, the boon to housewives that was supposedly a spin-off from space research but which in reality was developed in 1938 as a result of purely civil research by DuPont…and the first microprocessor (1971) was invented in civil laboratories.”

  12. H.-H. Härtel et al.: Neue Industriepolitik oder Stärkung der Marktkräfte?, Hamburg 1986, p. 175. In similar vein, H. Willgerodt: Staatliche Hilfen in einer Marktwirtschaft, in: Zeitschrift für Wirtschaftspolitik, Vol. 33 (1984), pp. 59–75.

  13. The economic repercussions of controls are described in detail in J. Starbatty, U. Vetterlein, op. cit. Die Technologiepolitik der EG-Kommission—die richtige Antwort auf die technologische Herausforderung?, in: R. Biskup (ed.): Europa—Einheit in der Vielfalt (in the series “Beiträge zur Wirtschaftspolitik”, Vol. 50, edited by E. Tuchtfeldt), Berne and Stuttgart 1988, to appear shortly.

  14. The legal basis for this is a Presidential Order dating back to the Eisenhower Administration and amended in 1982 (cf. H.-D. Jacobsen: Internationale Wettbewerbsfähigkeit und nationale Sicherheit der USA, published by Stiftung Wissenschaft und Politik, Ebenhausen 1986, pp. 108 f. and 114 ff.).

  15. Under the Atomic Energy Act of 1976, which requires that all the findings of nuclear research be kept secret and subjects them to Pentagon control, and the Invention Secrecy Act of 1951; on the basis of the latter, all patent applications are examined before publication to establish whether even a purely private invention affects national security and should be kept secret (cf. W. Hein: Beschränkungen des internationalen Technologietransfers durch die USA—Auswirkungen auf die Innovationsentscheidungen deutscher Unternehmen, Washington D. C., 1984, pp. 6 f.).

  16. cf. H.-D. Jacobsen, op. cit. Internationale Wettbewerbsfähigkeit und nationale Sicherheit der USA, published by Stiftung Wissenschaft und Politik, Ebenhausen 1986, pp. 109 ff.

  17. Cf. US Department of Commerce (ed.): Final Report. The Status of Emerging Technologies: An Economic/Technological Assessment to the Year 2000, Washington, D. C., 1987, pp. 9, 14 and 19; see also R. Hasse: Die sicherheitspolitische Bedeutung von Spitzentechnologien, in: Handbuch Strategie, published by Strategieforum (“res publica”, Publikationen zu Grundfragen der modernen Demokratie, published by G. von Voss), Pfullingen 1988, p. 29 in the manuscript.

  18. Quoted in: high Tech. Das Deutsche Technologie-Magazin, No. 3/1988, p. 86.

  19. see K.-H. Meid: Wirtschaftsmacht Japan, in: Aus Politik und Zeitgeschichte, Beilage zur Wochenzeitung ‘Das Parlament’, B 9–10, Bonn 3rd March 1984.

  20. Cf. F. Frisch: Böses Erwachen, in: high Tech. Das Deutsche Technologie-Magazin, No. 3/1988, p. 3.

  21. Die Halbleider, in: high Tech Das Deutsche Technologie-Magazin, No. 3/1988, p. 86.

  22. See the interview with Lejeune in: high Tech. Das Deutsche Technologie-Magazin, No. 3/1988, p. 88.

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  1. University of Tübingen, West Germany

    Joachim Starbatty & Uwe Vetterlein

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  1. Joachim Starbatty
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  2. Uwe Vetterlein
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Starbatty, J., Vetterlein, U. Must the semi-conductor industry be subsidised?. Intereconomics 23, 109–115 (1988). https://doi.org/10.1007/BF02925148

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