ABSTRACT

Nontariff barriers (NTB) have been in existence for some time, primarily as a means to limit market entry in order to protect infant industries. A number of NTBs in use in developed and developing nations have been enacted largely to obtain new technology and know-how. Better access to these factors is expected to promote the growth of high-technology industries, thus serving the interest of national development goals. NTBs have protected infant industries in consumer durables, capital goods, and other mature sectors. NTBs are used to promote increased research and development (R&D) spending, to facilitate the development of competitive exports, and to promote foreign investment by high-technology companies. Government procurement thus has been utilized to promote a rapid expansion in R&D spending in an emerging sector. There are several general categories of NTBs that are used to promote high-technology industries. These include: regulatory policies, bureaucratic barriers, and private-sector limitations.