ABSTRACT
The world economy is undergoing a fundamental transformation as a result of new electronics technologies which process, transmit and store information — computers, telecommunications systems, and the microelectronic components upon which they are based. The “information revolution” is increasingly being viewed as nothing less than a “new industrial revolution,” transforming every aspect of human economic activity from agriculture to manufacturing. Leadership in the information technologies depends on the ability to master the development, design, and manufacture of new electronics technologies — areas in which the United States (US) has traditionally been preeminent. The electronic information industries comprise a vast industrial complex resembling an inverted pyramid. The competitive situation confronting the US in microelectronics actually consists of long-term adverse trends in a number of interrelated spheres. The speed with which the US industry’s competitive position in microelectronics has eroded, coupled with the strategic significance of the industry, has generated a lively debate over underlying causes and possible remedial actions.
