ABSTRACT
The purpose of this chapter is to examine how well Congress has able to respond to the two challenges that are at the heart of policy making affecting the competitive position of US companies in global markets. The policy debate over economic policy and international trade is concerns the health and performance of American industry in general, much of the attention has aims at industries that rely heavily on continual technological innovation, particularly the high technology industries such as computers, telecommunications, and consumer electronics. The defense spending has had some spillover benefits, the real question is whether industrial competitiveness would be enhances by more direct federal intervention than by relying primarily on the occasional and imperfect spinoffs from defense spending. The Federal government has for decades maintained an “industrial policy” of assistance to industries to ensure a strong national defense. Policies need to be views as catalysts to changes in the private sector rather than direct federal involvement.
