Globalization processes are marked by the increasing salience of high-technology industries in international economic activity. This part focuses on coping strategies of firms and governments with respect to the high-technology sector. Jeffrey Hart, Stefanie Lenway and Thomas Murtha examine the efficacy of "technonationalism" as a coping strategy in the flat-panel display (FPD) industry. Peter Cowhey and John Richards discuss the political economy of telecom, in particular the role of the Federal Communications Commission (FCC) in promoting an international telecommunications regime that creates a level playing field for American companies
The FPD industry is witnessing a struggle among firms based in different countries. Japan leads the world in both product and process technology in this industry. The South Korean industry, a latecomer, started by adopting Japanese production methods. US-based firms were also late-starters in this industry. Given the importance of this industry for national security, the United States Department of Defense (DOD) became involved in promoting it and lessening dependence on outside suppliers. However, as the Hart-Lenway-Murtha chapter illustrates, there are policy challenges stemming from difficulties in harmonizing national security needs with business imperatives. Technonationalism-a policy to replicate critical parts of the technology commercialization processes using domestic capabilities-may serve national security objectives, but does not help domestic firms to compete in highly globalized industries. They argue that since technology development systems have become global, they require firms to co-develop products with appropriate business partners, irrespective of their country or origin.
Instead of a technonationalist route to cope with the globalized nature of the FPD industry, the authors' preferred strategies are: (1) "Wintelism": domestic firms owning industry standards but sharing them with cross-national production networks; and (2) developing abilities to tap into competencies dispersed around the globe. The two strategies overlap; however, the latter does not require that domestic firms define industry standards.