The Role of DoD's Investment in Electronics on the Decline of the Consumer Electronics Industry.
Research rept. Aug 95-Aug 96,
INDUSTRIAL COLL OF THE ARMED FORCES WASHINGTON DC
Pagination or Media Count:
This paper investigates what role, if any, the Department of Defenses post-World War II investment in electronics may have played in the decline of the US consumer electronics industry in the late 1960s-early 1970s. Prior to and immediately following World War II, US firms were the dominant manufacturers of consumer electronics in the world. Beginning in 1951, imports primarily from Japan, began to gain US market share. By 1974, imports accounted for over 50 of the US consumer electronics market, and many US firms left the market. Many reasons have been given for this change in fortune, including quicker use of new product and process technology and aggressive, if not unfair, market strategy by Japanese firms. No mention, however, is made of the role DODs investment in electronics might have played. During the 1950s and 1960s, DOD invested heavily in electronic systems and components. Many of the firms manufacturing consumer electronics were also doing contract work with DOD. The paper investigates whether DODs investment competed with resources in terms of investment capital and skilled workers with the consumer sector. The paper relies on secondary sources, aggregate industry data, and journal articles for data. The data found did not permit a conclusive statement on what DODs role might have been. However, it would appear that DODs investment did not directly draw investment capital away from the consumer sector. There was insufficient data to say whether DODs investment drew skilled workers away from the consumer sector. However, more study is required.
- Government and Political Science
- Electrical and Electronic Equipment
- Defense Systems