Commercial rivalries in high technology are among the most heated in today's global economy. From robotics to aerospace, states are subsidizing their national champions and competing for market share in the 'industries of tomorrow'. This book explains why states intervene and (or) retaliate in some high technology industries, but not in others, and how these commercial rivalries are likely to unfold. Dr Busch argues that states subsidize national champions in industries promising externalities for domestic industries, spend more on subsidies where these benefits do not escape national borders, and are more likely to bring these commercial rivalries back from the brink of a trade war where these subsidies leave both states worse off. This book is among the first to argue specifically about externalities and to evaluate how they have, or have not, shaped decisions for strategic trade in several of the most important commercial rivalries in high technology. Drawing on new and previously unreported documentation from governments, firms, industry associations and expert observers in Europe, Japan, and the US, Dr Busch sheds new light on the high technology industries of the civil aircraft, semiconductors, high-definition television, robotics and superconductors.
• Offers a fresh perspective on government-business relations, and the political economy of protections • Gives students a chance to see accessible game theoretic models applied to detailed empirical case studies • Develops an original argument about the importance of linkage and spillover externalities in government decisions of strategic trade policy
1. Introduction; 2. The argument; 3. The Civil Aircraft rivalry; 4. The semiconductor rivalry; 5. The high definition television rivalry; 6. Robotics, superconductors and wheat; 7. Conclusion.
'Busch provides a valuable foundation which other scholars can use in showing how a broad range of policy instruments supplement state efforts to capture the gains of innovation through the trade policy measures emphasised in this book.' West European Politics