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OECD Science, Technology and Industry Outlook 2002

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Science and technology increasingly contribute to economic growth, industrial competitiveness and the realisation of societal objectives. As countries continue the transition to knowledge-based economies, policy makers seek effective ways to improve the ability to create, absorb, diffuse and apply knowledge productively, by stimulating business investments in research and development, reforming science systems and their links to industry, promoting the development of human resources and stimulating competition and industrial restructuring.

The OECD Science, Technology and Industry Outlook 2002informs policy making by providing a broad, integrated assessment of these important issues. In addition to reviewing recent trends, the report identifies significant changes in science, technology and industry policies in the OECD countries. Special chapters examine emerging issues related to changing business strategies for R&D, competition and co-operation in the innovation process, reforming national science systems, strategic use of intellectual property rights in public research institutions, industrial globalisation and international mobility of scientists and engineers. Following the granting to China of observer status to the OECD Committee for Scientific and Technological Policy, a special chapter is devoted to this country’s challenges in the area of scientific and technological policy. A statistical annex provides up-to-date indicators related to science, technology and industry.

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Industrial Globalisation and Restructuring

This chapter examines the increasing role of cross-border M&As and strategic alliances in the globalisation and restructuring of industry and their implications for government policies. It reviews major trends in industrial globalisation and restructuring through cross-border M&As and strategic alliances. It then illustrates the different trends in and motivations for cross-border M&As and strategic alliances in five major sectors (automobiles, telecommunications, pharmaceuticals, steel and airlines), as patterns of industrial globalisation differ significantly across sectors. The final sections identify the potential impacts of cross-border M&As and strategic alliances on performance and highlight policy issues for facilitating globalisation and restructuring through cross-border M&As and strategic alliances, as well as for mitigating concerns about them. Much of the data used in the analysis refer to the period ending in 2000. The subsequent global economic slowdown has undoubtedly altered the pattern and the pace of globalisation, but levels of globalisation activity remain historically high and the policy issues continue to be important.

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