666 



One characteristic of multinational corporations with American, 

 participation is that the research and development function cannot 

 easily be decentralized and ", . . most companies carry out the bulk 

 of it in the United States." Coordination of international li&D en- 

 counters differences in product needs and standards of teclinical 

 proficiency, as well as difficulties in communication. One solution has 

 been the use of technical specialists or technical liaison groups who 

 go the coi-porate rounds to keep management, new product develop- 

 ment, and national sales outlets in touch.^^^ One industrial machinery 

 coiporate executive (international operations) described a formal 

 arrangement in his organization to achieve this coordination by means 

 of formalized technical meetings of teclinical executives drawn from 

 his far-flung subsidiaries : 



One of the major communication devices we have established is an interna- 

 tional engineering conference, which is held every 18 months on an alternating 

 basis here at our home office and at one of our overseas locations. This confer- 

 ence is attended by the managing directors and chief engineers of all our inter- 

 national associates. All of our major manufacturing associates as well as per- 

 sonnel from our engineering department at home office present pai>ers during 

 the week-long conference, outlining product improvements and the results of 

 research and development during the prior 18 months at each of the various 

 locations throughout the world. . . . We make special efforts to ensure that 

 our various operations throughout the world know the research progi'ams that 

 we are working on ; and they, in turn, keep us Informed of the programs that 

 they are working on."* 



TECHNOLOGICAL OBSTACLES TO U.S. EXPORT TRADE 



The fact that U.S. industries in "non-high-technology" fields lag 

 behind their European counterparts has several explanations : superior 

 attention in Europe to minor improvements on conventional products 

 and processes, tested routines, established markets, and lower wages. 

 However, European industry has begun a vigorous program in one 

 area of general importance: to harmonize technical standards. The 

 general use of the metric system tends to be restrictive to non-users. 

 Now standards are being adopted in Europe for reliability and (Quality 

 control.^^^ In comment on this situation. Ambassador Carl Gilbert, 

 the President's Special Representative for Trade Negotiations, de- 

 clared : 



For a country which has long pursued a course of minimal Government inter- 

 vention, exc-ept where public health or safety is involved and the Congress has 

 determined there was no acceptable alternative, the standards systems being 

 developed abroad today will, if we desire to participate and to insure that our 

 own products are not placed at a disadvantage, require in all likelihood new 

 forms of government-industry cooperation and new institutions to act on an 

 international basis."* 



Similarly, Lawrence C. McQuade, as Assistant Secretary of Com- 

 m.erce, called attention to the role of standards as a form of trade 

 barrier: 



"21 Michael G. Duerr. "R and D in the Multinational Company: A Survey." (National 

 Industrial Conference Board, 1970), pages 2, 20, 44—5. (Managing International Business, 

 No. 8.) 



122 Ibid., page 51. 



123 "Competition Comes Home to Haunt Us." Industry Week, (July 6, 1970). page 51. 



i2< "U.S. Foreign Trade Policies for the 1970's." Speech delivered September 30, 1970, 

 Raleigh, North Carolina. In "The Trade Bill of 1970." Remarks of the Hon. .Tacob Javits on 

 the floor of the Senate. Congressional Record, (October 12, 1970), page S 17684. 



