Editorial. Instrument Industry Seeks Answer to Foreign Competition

It is our impression that many domestic firms are proceeding on the assumption that existing and futuretariff structures will not give them much prote...
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ANALYTICAL CHEMISTRY

EDITORIAL

June 1961, Vol. 33, No. 7

APPLIED JOURNALS, ACS Director of Publications, C . B. Larrabee Editorial Director, Richard L. Kenyon Assistant to the Director of Publications, Joseph H . Kuney Assistant to the Editorial Director, Rodney N. Hader Director of Editorial Research, Robert F. Gould

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CHEMISTRY

Editor, LAWRENCE T. HAUETT Managing Editor, ROBERTG. GIBBS

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Instrument industry Seeks Answer to Foreign Competition GRADUAL are taking place in the hmeriBUT FAR REACHING CHANGES

can instrument industry due t o increasing competition from abroad. It is our impression t h a t many domestic firms are proceeding on t h e assumption t h a t existing and future tariff structures will not givt: t h c i n much protection. Since they do not feel t h a t tariff protection is forthcoming, they are, therefore, trying to find other means to assure their continued existence. T h e huge sums sent ahroad tiy t h e U. S.,particularly after IVorld W a r 11, and t h e export of new production 'machinery, equipment, and technology, made i t possible for many foreign countries to reestablish vigorous economies. T h e y now constitute major competition for U. S. concerns. TJ. S.manufacturers often find t h a t with their high labor costs it is difficult t o compete in foreign markets with finished products. They can, however, export technical skills and know-how. This is done in , ~ : v e r a lways : licensing forcign cornpanics to make such items using U. S.know-how, setting up U.S.-owncd cornpanics in foreign coilntrics to t a k e :idvantage of 1ouc:r I a h r costs, or entering into some 5ort of part i i crs h i p with for ei gn c om p a n i cs and manu f a c t w i n g itern s a tir o a d using 5. S.know-how. I n this last case, some of t h e agrcemerits include a provirion t h a t developments or improvcrnents made \JY one licwnste will IJC available to other licenwes. Cross-IicenLing is also tjeing practiced. C . S. manufacturer:, to succccd i n this type of activity, rnust maintain a reservoir of new idcas and skills. This, i n turn, calls for C(J)IItinuirig h 5 i c research and development. Unlcss this is donc, Erircign cornpanies will not only )lave an cdge in I w c r l a l ~ o rcosts },ut will also catch up or surpasc 11s in technical knowledge. This woiild result, in ar1 11ri fa vora h I e c omp c t i t i v e p o c: i t i on. Our principal c h w v a t i m is that the future of the Arricricaii ir15t,r11mcmt industry Isill depend on its maintaining a dynamic rcsearc:kl and dcveloprtierit program, thm providing itself with a tocJl to rclcet foreigrl competition ,

Adrartising Manuqement REINHOLD PUBLISHING c o w 'For Branch Officed %e page 141 A ,

VOL. 33, NO. 7 , JUNE 1961

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