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Advanced ManufacturingThe New American Innovation Policies$
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Willian B. Bonvillian and Peter L. Singer

Print publication date: 2018

Print ISBN-13: 9780262037037

Published to MIT Press Scholarship Online: September 2018

DOI: 10.7551/mitpress/9780262037037.001.0001

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International Competition and the Decline of U.S. Manufacturing

International Competition and the Decline of U.S. Manufacturing

(p.37) 3 International Competition and the Decline of U.S. Manufacturing
Advanced Manufacturing

William B. Bonvillian

Peter L. Singer

The MIT Press

This chapter reviews the U.S. manufacturing decline in the first decade of the twenty-first century, examining this from a series of dimensions, including the critical relationship between the production stage and the other parts of its innovation system. The profound challenge to U.S. production in the 1970s and 1980s from Japan's quality manufacturing model and its accompanying technology and process advances, which dramatically disrupted U.S. production practices, is the first issue that must be understood. The chapter then explores the rise of China's manufacturing economy; its innovative new production scale-up approaches knocked the United States into second place in world manufacturing output in a remarkably short period. Accompanying that rise was a parallel and related rise in distributed production by U.S. firms, with outsourcing of production stages and corresponding issues of “innovate here/produce there,” which could lead to “produce there/innovate there.”

Keywords:   U.S. manufacturing, U.S. production, Japanese manufacturing, Chinese manufacturing economy, innovation system, technology, world manufacturing, distributed production, outsourcing, production stages

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