The race for telecommunication technology : The USA v Japan

Innovations in information technology are driving the USA and Japan into greater interdependence and reduced competition. However, the policies of the two countries towards supplying global telecommunications networks and towards their export earnings are diverging. This article examines the policies and history of both US and Japanese business and government towards investment in communications and computer technologies. Deregulation has been an important influence in both countries. The Japanese have responded to fierce US protectionism and competition by fundamentally changing their production strategy and turning to more offshore operations, involving many adjustments for Japanese management.