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Industry, Technology, and the Global Marketplace |
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U.S. Technology in the
Marketplace 
- High-technology industries are driving economic growth around
the world. The global market for high-technology goods is
growing faster than that for other manufactured goods. Over the
past 22 years (1980–2001), output by high-technology manufacturing
industries grew at an inflation-adjusted average annual rate of
6.5 percent. Output by other manufacturing industries grew at
just 2.4 percent. (More...)
- The United States continues to be the leading
producer of high-technology products and is responsible for about
one-third of the world's production. In 2001, U.S. high-technology
industries accounted for 32 percent of world output. (More...)
- The market competitiveness of individual U.S.
high-technology industries varies, although each maintained strong
market positions over the 22-year period examined. Competitive
pressure from a growing number of technology-producing nations
has led to a reduction or flattening of U.S. market share in recent
years. Between 1998 and 2001, U.S. industry lost world market
share in computers and office machinery and communication equipment,
maintained a rather stable market share in aerospace and pharmaceuticals,
and gained market share in scientific instruments. (More...)
- Technology products account for a larger share of U.S.
exports than imports, thereby making a positive contribution to
the overall U.S. trade balance. U.S. high-technology
industries contributed to the strong export performance of the
nation's manufacturing industries. In 2001, exports by U.S. high-technology
industries accounted for 17 percent of world high-technology exports.
(More...)
- Knowledge-intensive service industries fueled service-sector
growth around the world. Global sales in knowledge-intensive
service industries exceeded $12.3 trillion in 2001, up from $8.0
trillion in 1990. The United States was the leading provider of
knowledge-intensive services, responsible for between 32 and 34
percent of world revenue totals during the 22-year period examined.
(More...)
- The United States is a net exporter of technological
know-how sold as intellectual property. On average, royalties
and fees received from foreign firms were three times greater
than those paid out to foreigners by U.S. firms for access to
their technology. In 2001, U.S. receipts from the licensing of
technological know-how to foreigners totaled $4.9 billion, 24.4
percent higher than in 1999. (More...)
New High-Technology
Exporters
- Based on a model of leading indicators, Ireland
and Israel appear to be headed toward prominence
as technology developers and exporters in the global market. In
a group of 15 small or less-advanced countries, Ireland received
the highest score in three of the four leading indicators and
the second-highest score in the fourth. Israel, China, and Hungary
also posted strong scores on several indicators. (More...)
International
Trends in Industrial R&D
- Internationally comparable data show a resurgence in service-sector
R&D in several industrialized countries. In 2000, service-sector
industries, such as those involved in computer software development,
accounted for 34 percent of all R&D performed by industry
in the United States—nearly double their share in 1996. Large increases
in service-sector R&D are also apparent in many European Union
(EU) countries, especially Italy, the United Kingdom, and France.
(More...)
- In many industrialized countries, aerospace, motor vehicle,
electronic equipment, and chemical industries conduct the largest
amounts of R&D. In the United States, industries that
provide computer services and manufacture electronic equipment
and industrial chemicals led the nation in R&D. In Japan,
the electronic equipment industry conducted the most R&D throughout
the period reviewed, followed by the chemical and motor vehicle
industries. Manufacturers of industrial chemicals, motor vehicles,
and electronic equipment were consistently among the top five
performers of R&D in the EU. (More...)
Patented
Inventions
- In 2001, more than 166,000 patents were issued in the United
States, 5 percent more than a year earlier. U.S. resident
inventors received nearly 88,000 new patents in 2001, which accounted
for about 53 percent of total patents granted. (More...)
- Patenting in the United States by foreign investors
remains highly concentrated by country of origin. From 1963
to 2001, Japan and Germany accounted for 56 percent of U.S. patents
issued to foreign inventors, and the top four countries—Japan,
Germany, France, and the United Kingdom—accounted for 72 percent.
In 2000 and 2001, residents of Taiwan were awarded more U.S. patents
than residents of France or the United Kingdom. (More...)
- Recent U.S. patents issued to foreign inventors
emphasize several commercially important technologies. Japanese
patents focus on consumer electronics, photography, photocopying
and, more recently, computer technology. German inventors are
developing new products and processes associated with heavy industry,
such as motor vehicles, printing, advanced materials, and manufacturing
technologies. Taiwanese and South Korean inventors are earning
more U.S. patents in communication and computer technology. (More...)
Venture
Capital and High-Technology Enterprise
- Investor commitments to venture capital funds fell sharply,
especially when compared with the large amounts of money committed
during the bubble years (1999 and 2000).
In 1999, new commitments to venture capital funds jumped to
$62.8 billion, a 111 percent gain from the previous year. By 2000,
new commitments reached $105.8 billion, more than 10 times the
inflow of new investor money recorded in 1995. In 2001, the inflow
of new money dropped by more than 64 percent, to $37.9 billion,
and totaled just $7.7 billion in 2002. (More...)
- Internet companies continued to attract more venture capital
than any other technology area in the postbubble period. In
2001 and 2002, venture capital firms disbursed $62 billion, with
more than one-fourth of this total still invested in Internet
firms. (More...)
- Not all venture capital is seed money. During the past
10 years, money invested with entrepreneurs to prove a concept
or to support early product development never accounted for more
than 8 percent of total venture capital disbursements by venture
capital funds and most often made up only 2 to 5 percent of the
annual totals. The latest data show that the share of all venture
capital classified as seed financing represents just 1 percent
of total disbursements in 2001 and 2002, down from about 2 percent
in 1999 and 2000. (More...)
Characteristics
of Innovative U.S. Firms
- A recent survey examining innovative activities in which
information technology (IT) was a significant or critical component
in developing new products or processes found that nearly half
(48 percent) of responding firms developed an IT-based innovation
within the past year or expected to develop one within 12 months.
Surprisingly, U.S. companies providing computer-related services
were more innovative than companies manufacturing computer hardware.
(More...)
- Process innovation appears to generate more revenue for innovative
firms than does product innovation. When innovative firms
were asked to identify the type of innovation (product or process)
that contributed most to company revenue, the number of firms
identifying process innovations outnumbered the number of firms
identifying product innovations by almost 60 percent. (More...)
- R&D continues to be important to the innovation process.
According to survey respondents, 41 percent of innovators
reported that in-house R&D made a large contribution to their
IT-based innovation, 31 percent said that conducting R&D was
a very important part of their growth strategy, and 20 percent
indicated that outsourced R&D made a large contribution toward
IT-based innovation. (More...)
- Most responding firms indicated that IT was important in
conducting business. Those firms identified as innovators
placed even more emphasis on IT, with nearly 74 percent of innovators
saying it was very important to their business. Firms viewed IT
goods and services as very important for increasing productivity,
facilitating communication, and reducing costs. (More...)
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