Anteing Up: The Government's Role in the Microelectronics Industry
Abstract
This paper is a case study of the microelectronics industry. It is an attempt to look at the role that the federal government has played, and still plays, in the development of the industry, and at the outcomes of this intervention. The federal government's role has been important and wide-ranging. It has made investments in microelectronics research and development, supported the industry in its infancy as a first and major customer, and created a demand environment in which companies had incentives to advance the state of the art. Sometimes the government opted for high-risk high-return solutions to allow new technologies to develop. In return, the government was a beneficiary of the most advanced technology for its systems. However, as the market for microelectronics exploded, the relative position of government and other customers has changed. As companies turned to fill the ever-larger demand for electronics in the commercial marketplace, the government has found it more difficult to meet its requirements for specialized products. As a result it is once again investing in research and development directed specifically as its own applications. For much of their history, the U.S. microelectronics manufactures have dominated world markets. This has begun to change in recent years as Japanese manufactures have acquired significant and growing shares of these markets. The U.S. manufactures have asked the government to intervene in the international competition of their behalf.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 16, 1988
- Accession Number
- ADA228267
Entities
People
- Anna Slomovic
Organizations
- RAND Corporation