National targeting policies, high‐technology industries, and excessive competition

Richard Brahm

Strategic Management Journal, 1995, vol. 16, issue S1, 71-91

Abstract: 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.

Date: 1995
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