Global Competition and Strategies in the Information and Communications Technology Industry: A Liberal-Strategic Approach

Multinational corporations and the European Union (EU) play a very important role in structuring global competition around wireless standardization.

Here I analyze the realities of global competition in information and communications technology (ICT) markets from a more liberal-strategic viewpoint than the subsidy-based industry support promulgated by strategic trade theorists in the 1980s and 1990s. According to a liberal-strategic trade perspective, public actors try to tweak the rules of the world economy to structure global competition in ways that enhance job creation, overall competitiveness in high-technology sectors, and domestic welfare, rather than being primarily concerned about import competition. The story of the European approach to global standardization and competition--and the strategic use of international standards bodies by multinational corporations--primarily represents an aggressive outward-oriented strategy. European actors pursued a globally oriented strategy in the European Telecommunications Standards Institute (ETSI) with the objective of aligning Europe with market and policy developments in the rapidly growing markets of the Asia-Pacific region. By downplaying the importance of import competition, often stressed by strategic trade theorists a liberal-strategic approach to the ICT industry focuses on the prospect of cutting-edge innovations based on a coherent industry strategy that looks at the creation of internationally competitive technologies in the longer-term rather than at incremental change and current import competition pressure.

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