1. The Business Roundtable, American Excellence in a World Economy (New York: The Business Roundtable, 1987).

2. Ibid., 45-48; The President's Commission on Industrial Competitiveness, Global Competition: The New Reality (Washington, DC: US Government Printing Office, 1985).

3. R. Dornbusch, J. Poterba and L. Summers, The Case for Manufacturing in America's Future (Rochester, NY: Eastman Kodak Company, 1988).

4. Ian Inkster, `Education and Economic Performance in Japan: A Sceptical Evaluation', East Asia, Vol. 6 (1990), forthcoming.

5. Global Competition, op. cit. note 2, Vol. 1, 2; J. A. Young, `Technology and Competitiveness', Science, Vol. 241 (15 July 1988), 315.

6. P. Choate and J. Linger, `Tailored Trade: Dealing with the World As It Is', Harvard Business Review Vol. 66, No. 1 (January-February 1988), 91; American Excellence, op. cit. note 1, 23.

7. The Working Papers of the MIT Commission on Industrial Productivity, 2 Vols (Cambridge, MA: MIT Press, 1989).

8. M.J. Levy, Modernization: Latecomers and Survivors (New York: Basic Books, 1972).

9. A large government deficit increases the public sector borrowing requirement and thus puts pressure on the capital market and the rate of interest. Interest rates are certainly some function of such `crowding out', as the US government fails to either reduce expenditure or raise tax revenue to meet expenditure in conventional manner.

10. R. H. Hayes and W. J. Abernathy, `Managing Our Way to Economic Decline', Harvard Business Review, Vol. 58 (1980), 67-77; S. C. Myers, `Finance Theory and Financial Strategy', Interfaces, Vol. 14 (1984), 126-37.

11. See also S. S. Cohen and J. Zysman, Manufacturing Matters: The Myth of the Post-Industrial Economy (New York: Basic Books, 1987); R. H. Hayes and S. C. Wheelwright, Restoring Our Competitive Edge: Competing Through Manufacturing (New York: John Wiley and Son, 1984).

12. On p. 67, quoting Ralph Gomory of IBM in a special issue of Issues in Science and Technology (Summer 1988).

13. E. Mansfield, `Industrial R & D in Japan and the United States: A Comparative Study', American Economic Review, Vol. 78 (1988), 221-23; Mansfield, `Industrial Innovation in Japan and the United States', Science, Vol. 241 (30 September 1988), 1769-74, especially Table 4, 1771.

14. For the historical and theoretical context of incrementalism, see Ian Inkster, Science and Technology in History: An Approach to Industrial Development (London: Macmillan, 1990), Chapter 1.

15. Ibid., Chapter 11, and op. cit. note 4.

16. R. J. Samuels, The Business of the Japanese State (Ithaca, NY: Cornell University Press, 1987). The older view, still workable, is especially associated with Chalmers Johnson, MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975 (Stanford, CA: Stanford University Press, 1982).

17. R. Dore and M. Sako, Educating the Japanese For Work (Stanford, CA: Stanford University Press, 1988).

18. G. N. Hatsopoulos, P. R. Kingman and L. H. Summers, `US Competitiveness: Beyond the Trade Deficit', Science, Vol. 241 (15 July 1988), 299-307.

19. M. N. Baily and A. K. Chakrabarti, Innovation and the Productivity Crisis (Washington, DC: Brookings Institute, 1988).

20. Ian Inkster, `Technology Transfer: The Historical Dimension in Detail', Metascience, Vol. 8 (1990), 12-19.

21. Ian Inkster, `Catching Up and Holding On: The Formation of Science in Modern Japan', Annals of Science, Vol. 47 (1990), forthcoming.

22. See papers by F. Kodama and others in special issue of Science, Vol. 237 (18 July 1986), esp. 291-96. Also, R. A. Morse and R. J. Samuels (eds), Getting America Ready for Japanese Science and Technology (Washington, DC: The Asia Programs of the Wilson Centre, 1985).

23. Chalmers Johnson, `Studies of Japanese Political Economy: A Crisis in Theory', Japan Foundation Newsletter, Vol. 16, No. 3 (December 1988), 1-11, quote at 6.

24. H. Morikawa, Gijutsusha-Nihon Kindaika no ninaite (Tokyo: Nihon Keizai Shimbunsha, 1975).

25. See Chapters 1, 5, 7, and 10 of Inkster, op. cit. note 14.

26. C. K. Wilbur and R. S. Harrison, `The Methodological Basis of Institutional Economics', Journal of Economic Issues, Vol. 12 (1978), 68-89; R. C. O. Mathews, `The Economics of Institutions and the Sources of Growth', The Economic Journal, Vol. 96 (1986), 903-18; D. Hamilton, `Technology and Institutions are Neither', Journal of Economic Issues, Vol. 20 (1986), 525-32; Thomas Sowell, Knowledge and Decisions (New York: Basic Books, 1980); J. H. Street, `The Institutionalist Theory of Economic Development', Journal of Economic Issues, Vol. 21 (1987), 1861-87; Ian Inkster, `The Institutional Theory of Economic Development, Technological Progress and Social Change', Journal of Economic Issues, Vol. 23 (1989), 1243-47.

27. For an excellent introduction to the `regime' approach, see D. I. Okimoto, `Regime Characteristics of Japanese Industrial Policy', in H. Patrick (ed.), Japan's High Technology Industries (Seattle, WA: University of Washington Press, 1986), 35-95; and for excellent institutional background, R. Dore, Flexible Rigidities: Industrial Policy and Structural Adjustment in the Japanese Economy 1970-1980 (Stanford, CA: Stanford University Press, 1986).

28. K. J. Arrow, `Economic Welfare and the Allocation of Resources for Invention', in R. R. Nelson (ed.), The Rate and Direction of Inventive Activity, (Princeton, NJ: Princeton University Press, 1962), question on 623.

29. R. R. Nelson and S. G. Winter, An Evolutionary Theory of Economic Change (Boston, MA: The Belknap Press of Harvard University Press, 1982), 413.

Made in America But Lost to Japan: Science,Technology and Economic Performance in the Two Capitalist Superpowers

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