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National targeting policies, high‐technology industries, and excessive competition
Author(s) -
Brahm Richard
Publication year - 1995
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250160918
Subject(s) - rivalry , competition (biology) , economics , industrial organization , intervention (counseling) , industrial policy , politics , competitive advantage , technology policy , market economy , international trade , business , economic system , political science , microeconomics , management , sociology , psychology , ecology , social science , psychiatry , law , biology
This paper explores some fundamental changes in market dynamics that are unfolding in the new competitive landscape as a result of aggressive industrial intervention by nation'states. The thesis is that national targeting policies are likely, under identifiable conditions, to cause rivalry in high‐technology industries to become excessively competitive, strictly defined in terms of producer welfare. The paper analyzes why this is likely to occur in high‐technology sectors rather than in other types of industries, and how excessive competition is likely to be manifested in specific dimensions of competitive rivalry. The paper also discusses research opportunities for further development of a theory of the political economy of excessive competition and for strategy scholars to make new contributions to trade policy debates.