Responding to Defense Dependence: Policy Ideas and the American Defense Industrial Base

(Hardback)

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The 1970s and 1980s witnessed growing concern in the United States regarding the relative decline of the American economy and, for defense planners, the military's growing dependence on foreign production of weapons' parts and subcomponentsthe guts of many critical weapons systems. The period also witnessed growing interest in industrial policy as a tool for promoting U.S. international competitiveness, defense sectors proving to be particularly attractive candidates for government economic intervention. This study traces the evolution of defense dependence and the U.S. government's response to this dilemma by examining policy ideas and experiments in four defense industriesmachine tools, semiconductor manufacturing, ball bearings, and high-definition television technologiesexplaining successes and failures, and reviewing prospects for expansion.

Reviews

"This is a comprehensive study of one of the most important "new" issues in economics, public policy, and national security. The field is dominated by turgid government studies and think tank recommendations. Dr. Pages' study, in contrast, lays out the issues involved in protecting and subsidizing key sectors in the defense industrial base lucidly, making the arguments about industrial policy and strategic trade policy accessible to a broad array of readers. There are case studies of machine tools, semiconductors, ball bearings, and HDTV. Dr. Pages has successfully captured the vigor of a debate that is likely to grow over time, and occupy the attention of leaders and policymakers on both the state and national levels."-Theodore H. Moran Karl F. Landegger Professor of International Business Diplomacy School of Foreign Service, Georgetown University

Author Bio

ERIK R. PAGES is Director of the Office of Economic Conversion Information at the U.S. Department of Commerce. His articles have appeared in SAIS Review, Business & Society Review, and Defense Analysis, among others.