Technology and Economic Performance: A Different View of the Federal Role

Murray L. Weidenbaum
1991
The pace of technological progress is a prime driving force in our increasingly global economy; government policy on technology needs to be reconsidered in that light. The United States is heavily reliant on the fruits of science and technology to provide its basic strength, both military and economic. Over the years, this nation has maintained its strong military posture, not by having the largest armed force, but by relying on the most technically sophisticated, up-to-date arsenal of weapons
more » ... nd equipment, and the technically trained people to operate them. Similarly, high-tech companies maintain a favorable balance of trade, while the lowtech companies have suffered most severely from foreign competition (see Figure 1 ). R&Dintensive industries also experience greater increases in productivity than the other sectors of the economy. Clearly, advances in technology are a key to the continuation of both the military and the economic power of the United States. What is not so apparent is the proper course for governmental policy toward technology, especially its use in the private sector. This report addresses the key issues that have to be faced in deciding that important federal role in fostering the development and use of technology. The sections that follow cover national competitiveness, existing science and technology policy, proposed support for commercially relevant technology, the proper boundary between government and private initiative, and the future role of the Department of Defense and other federal agencies. I
doi:10.7936/k7ww7ft2 fatcat:pvur4odk6bcd7jov754xflumkm