International Trade and Technology  ITRN:  604

Spring 2002 ARL Room 268

Instructor:  Don E. Kash

Office: Finley Building, Room 215

Phone: 703-993-2279

Class Time: Wednesday, 4:30-7:00 P.M.

 

Introduction

            This seminar investigates the interplay between international trade and technology development with a focus on public policy.  Trade and technology have traditionally been the focus of two different bodies of policy in the United States.  This was the result, to a large extent, of the inability of economic theory to account for the dynamics of technology development and the interplay of trade and the growth of national innovation systems.  This is changing as it becomes clear that technology is the driving force behind much economic growth and international trade. The capacity to innovate technologies—specifically to produce superior performing technologies at lower cost ahead of one's competitors—is the key to success in the international marketplace.  U.S. trade and research and development policies have slowly changed over time to provide more support to technology-based growth and can be expected to change even more in the future.  For example, many observers report an increasing ‘globalization’ associated with the process of innovation, a trend that may call national policies into question.  This seminar's goal is to provide insight into the interplay of trade and technology, but especially the dynamics of the connection between trade and technological innovation.

            The seminar begins with an overview of the international trading system and asks whether technology trade is truly different from other kinds of trade, and if so, how and why?  The seminar will investigate the role of technological innovation in creating opportunities for trade, and examines the role of government in promoting and supporting the national innovation systems that are integral to trade.  The seminar then examines the forces leading to global integration in the innovation processes associated with some industries and explores whether national ‘competitiveness’ still matters.  From there, the seminar moves to an examination of different theories about technology and trade, including complexity theory and new trade theory, and it will then examine regional trade in the context of these theories of technology trade.  The course wraps up by examining whether the principle of neo-classical “free trade” can still be profitably applied to technology within the international trading system. Using a series of case studies, and having students participate in mini-seminars with experts in the thick of this controversy, this class provides a practical, hands-on inquiry into a contemporary issue.

            Don Kash can be reached during the day at 703-993-2279, by email at dkash@gmu.edu.  Individual meetings can be arranged by appointment.  Appointments to discuss final briefings preparations are encouraged.  Regular office hours will be scheduled at the first class meeting.

 

Class Participation and Assignments

            This class is a seminar.  Seminar participants will be expected to have read the material assigned for each seminar session in advance of the class.  Students will be expected to actively discuss and critique the readings and to participate in the case studies.  Students who do not participate in class discussion and case studies will have a lower grade than active participants. 

There will be two exams and a final presentation required.

 

Briefing:

Each student will be responsible for preparing a thoroughly researched presentation (i.e., briefing) that investigates a particular case of trade controversy associated with technology.  These cases may look at specific technologies such as airplanes (e.g., the Boeing Airbus competition) or standards for high definition television, or they may look at broader issues such as the protection of intellectual property or trade and antitrust. The presentations must be given in oral form plus a written version must be submitted that includes convincing documentation and a research-quality bibliography.  Plagiarism, including failure to properly cite direct quotes, will result in a failing grade.

            Students should have a one-page description of what they propose to do for a briefing paper by February 5.  The description may be submitted either electronically or in paper form.  A meeting with the instructor to discuss your topic is encouraged.  The proposal will be returned either with the instructor’s approval or with directions for modification that may range from minor suggestions for change to a requirement for a new proposal on February 12.  The final presentations will be scheduled during the last two seminar sessions.  Each student will have a twenty minute period for presentation.

 

Grade

            The seminar grade will be based on the following:

·         Class participation                                 15%

·         Mid-term quiz (15%) and final exam (35%) 50 %

·         Final Presentation 35%

 

Required reading

Rycroft, Robert W. and Kash, Don E., The Complexity Challenge:  Technological Innovation in the                         

21st  Century, London: Pinter, 1999.

 National Research Council, Conflict and Cooperation in National Competition for High-

Technology Industry.  Washington, DC: National Academy Press, 1996.

 Tyson, Laura D'Andrea.  Who's Bashing Whom?  Trade Conflict in High Technology Industries. 

Washington, DC:  Institute for International Economics, 1992.

  

Schedule and Readings

 

 January 23                   Introduction: Technology and the International Trading System

                                    Lecture

 

January 30                   Trade Negotiations and The World Trade Organization

Joint Class with ITRN 603, Lecture by Professor Rogowsky

 

Preparatory Readings:

R. Blackhurst, “The WTO and the Global Economy,” The World Economy, 20, No. 5 (August,

            1997) pp. 527-44.

Gary Horlick, “A U.S. Perspective on the Launch of a New WTO Trade Round at Qatar”, Journal                    of Japanese Trade and Industry, Sept./ Oct., 2001, pp. 1-10.  http://www.jef.or.jp/en/jti/200109_008.html

Charlene Barshefsky, “Next Steps at the World Trade Organization,” Testimony before House

            Committee on Ways and Means, Subcommittee on Trade, Washington, DC, Feb. 8, 2000.

            http://www.ustr.gov/speech-test/barshefsky/barshefsky_t33.pdf

J. Schott (1994), The Uruguay Round: An Assessment, Institute for International Economics, Wash.

D.C., Overview, pp. 3-39.

http://www.iie.com/publications/pub.cfm?pub_id=64&noprice=yes

J. Schott, “Implementing the URA,” The Year in Trade 1994: Operation of the Trade Agreements

Program 46th Report, USITC publication, Ch.1. http://www.usitc.gov/332S/otap.htm

Bernard Hoekman and Kym Anderson “Developing Country Agriculture and the New Trade Agenda,”  http://wbln0018.worldbank.org/research/workpapers.nsf/5ade973899c8608685256731006834d5/0741beec4dfa5b35852567e000541c32?OpenDocument


February 6                            Technology Trade: Is It Different from Other Kinds of Trade?

Preparatory Readings:

Laura Tyson, Chapters One and Two in Who’s Bashing Whom?

Paul Krugman, “Technology and International Competition: A Historical Perspective,” in Linking Trade and Technology Policies, National Academy of Sciences, 1992.

Robert W. Rycroft and Don E. Kash, Chapters One and Two in The Complexity Challenge.

 

February 13                  The Role of Technological Innovation

(Presentation Proposal Due)

Preparatory Readings:

Robert W. Rycroft and Don E. Kash, Chapters Three through Five in The Complexity Challenge.

Steven Kline and Nathan Rosenberg, "An Overview of Innovation", in Ralph Landau and Nathan

Rosenberg, The Positive Sum Strategy Washington:  National Academy Press, 1986, pp.

275-305.

 

February 20                           Globalization and Controversial Issues on Environment and Intellectual

Property

Preparatory Readings:

Keith E. Maskus and Grifang Yang, “Intellectual Property Rights, Foreign Direct Investment and Competition Issues in Developing Countries,” International Journal of Technology Management, Vol. 19, Nos. 1&2, 2000, pp. 22-34

Robert M. Sherwook, “The TRIP Agreement: Benefits and Costs for Developing Countries,” International Journal of Technology Management, Vol. 19, Nos. 1&2, 2000, pp. 57-76

Hakan Nordstrom and Scott Vaughan, Trade and Environment, World Trade Organization, October 1999. Executive Summary, Introduction, Chapter IV and V.

Lyuba Zarsky, “Havens, Halos, and Spaghetti: Untangling the Evidence about Foreign Direct and the Environment,” in Conference on Foreign Direct Investment and the Environment. The Hague, Netherlands: Organization for Economic Co-operation and Development, January 1999

 

February 27                  Mid Term Exam

 

March 6                       Technology Trade as a Complex Adaptive System

 Preparatory Readings:

 Brian Arthur, “Positive Feedbacks in the Economy” Scientific American, February 1990, pp.

92-99

Robert W.  Rycroft and Don E. Kash, Chapters six, eight, and nine in The Complexity Challenge.

 

 

March 13                      SPRING BREAK- No Class

 

March 20                     “National Competitiveness: Does It Matter in a Global Market?

Guest Lecturer:  Kent Hughes, Public Policy Scholar, The Woodrow Wilson Institute (invited)

 

Preparatory Readings:

National Academy of Sciences, Conflict and Cooperation, pp., 12-72.

Paul Krugman, “Competitiveness: A Dangerous Obsession,” Foreign Affairs, March/April, 1994,

pp. 28-44

 


March 27                                 Sources of Technology Trade Conflict

Preparatory Readings:

National Academy of Sciences, Conflict and Cooperation, pp, 72-120.

Laura Tyson, Who’s Bashing Whom? Trade Conflict in High Technology Industries. Institute for

International Economics, 1992, pp. 17-45, 85-133

 

April 3                          Regional Technology Policies and Innovation

                                                Preparatory Readings:

Laura Tyson, “Managing Trade and Investment: Europe’s Evolving Strategy in the Electronics

Industry,” in Who’s Bashing Whom? Trade Conflict in High Technology Industries.

Institute for International Economics, 1992, pp. 217-249.

Linsu Kim, "National Systems of Industrial Innovation:  Dynamics of Capability Building in

Korea", in Richard R. Nelson, ed., National Innovation Systems, New York:  Oxford

University Press, 1993, pp. 357-383.

 

April 10                                    The Challenge of Globalization: Chinese and Indian Cases

Case studies will be provided by instructor:  Haier, Legend, Changhong, Infosys, TCS, and MICO.

 

April 17                                    What Can Public Policy Do?

                                    (Paper Due)

Preparatory Readings:

Laura Tyson, “Industrial Policy and Trade Management in the Commercial Aircraft Industry,” in

Who’s Bashing Whom? Trade Conflict in High Technology Industries. Institute for

International Economics, 1992, pp. 1-16, 155-216

 Robert W. Rycroft and Don E. Kash chapters eleven and twelve of  The Complexity Challenge.

 

April 24                         Student Presentations

 

May 1                           Student Presentations

 

May 8                           Final Exam

 

Plagiarism: All work must be your own. Inappropriate use of the work of others without attribution is plagiarism and a George Mason University Honor Code viloation punishable by expulsion from the University. All students should familarize themselves with this honor code provision (http://www.gmu.edu/facstaff/handbook/aD.html). To guard against plagiarism and to treat students equitably, written work may be checked against existing published materials or digital data bases available through various plagarism detection services. Accordingly materials submitted to all courses must be available in electronic format.

Kingsley E. Haynes, Dean SPP/GMU