ABSTRACT
The world economy is moving toward a small number of trading groups (EEC, NAFTA, perh. Yen Zone). The supply and demand conditions for competition-oriented economies can be improved distinctly in a regional framework. In particular, the medium-sized ICs of western Europe have been at work building a major economic zone with an eye to increasing the investment, growth, and competitive chances of businesses. The completion of the EC single market entailed a jump in concentration aimed at decreasing the scale-related disadvantages of European firms in comparison with those of the USA and Japan. The creation of the European Economic Space is intended to provide firms with relatively stable demand conditions for a major share of their products. Sharply increasing the funds available to finance EC research and technology policy is intended to close the gap in the utilization of new technologies. The volume of support provided by the individual member states is not sufficient to achieve and defend a technological lead in many important high-tech fields against the US and Japanese economies, which are far better funded (Schmalholz and Penzkofer 1993, 25).
