Global Industrial Competitiveness Research Articles

Preventing technology leaks through the patent office in South Korea: lessons for Ukraine

The article provides an economic and legal analysis of measures to ensure economic security and prevent leaks of technological secrets used by the Government of South Korea and the Korean Intellectual Property Office (KIPO). On October 17, 2024, KIPO presentedand approved «Measures to Combat Technology Leakage to Strengthen Global Industrial Competitiveness.» These measures are expected to strengthen the safety net for advanced technologies that are critical to the survival of domestic companies and economic security. They were formulated to address the potential national damage caused by the increasing leakage of advanced technologies in industries such as semiconductor manufacturing andsecondary batteries. The plan aims to create a national technology protection system to prevent technology theft that hinders the growth of SMEs and venture capital companies, thereby increasing global industrial competitiveness and contributing to a dynamic economy. The leading role in the creation of a national technology protection system in South Korea belongs to KIPO. For this purpose, KIPO has made changes to current procedural and patent legislation and the Law on the Prevention of Unfair Competition and the Protection of Commercial Secrets. It plans to introduce a preventive system to prevent technology leakage using patent analysis of big data and technical expert research. KIPO is improving digital response systems and introducing an idea certification system. It is alsostrengthening cooperation with counterintelligence agencies. The guidelines for punishments for crimes in the technological sphere related to the violation of IP rights and technologies have been revised. Revised guidelines entered into force in July 2024 to implementstricter standards for trade secret misappropriation and theft of industrial technology, set separate sentencing standards for crimes related to «industrial technology» and «national basic technology», provide stricter penalties for violations, especially those occurring abroad. The state of leakage of technologies in Ukraine is analyzed, mechanisms of their countermeasures are proposed.

The Logic of Change in China’s New Energy Vehicle Fiscal Subsidy Policy

The vigorous development of new energy vehicles as a representative of emerging industries is inseparable from government financial subsidies. In recent years, with the continuous expansion of the new energy vehicle industry and the transformation of the national economy into an innovation-driven one, the centralized financial subsidy policy for new energy vehicles has undergone tremendous adjustments marked by the withdrawal of the "national subsidy". Using the historical institutionalism analysis framework, we systematically review the history of China's new energy vehicle subsidy policy, and divide it into four stages: the creation of the pilot stage, rapid expansion, comprehensive promotion, and adjustment and change. From the structural viewpoint, factors such as national economic development, global industrial competition, and changes in the concept of development have, to varying degrees, contributed to the change in the financial subsidy policy for new energy vehicles. From the historical point of view, the financial subsidy policy has been continuously self-reinforcing under the learning effect, coordination effect and adaptive expectation, but also due to the negative incentives for market players to take malicious subsidy fraud to make the contradictions gather and explode, which constitutes a key node of policy change. The current new energy vehicle subsidy policy is in the stage of adjustment and change, the future should be strengthened technology research and development incentives to regulate at the same time to avoid the formation of subsidy dependence of enterprises, and strengthen the subsidy of infrastructure facilities.

The impact of green taxation on green low-carbon development in Yangtze River Delta region of China-based on mediating effect model and spatial Durbin model.

Promoting green low-carbon development is an important task in the construction of ecological civilization of China. The leadership has proclaimed green low-carbon development as the top national priority for development. Green low-carbon economy has become the high point of global industrial competition. Green taxation, as a tool for environmental regulation, plays an important role in the construction of ecological civilization. Therefore, this paper investigates the impact of green taxation on green low-carbon development in the Yangtze River Delta (YRD) region of China, using data of 41 cities from 2011 to 2021 in the YRD region. We construct a green low-carbon development index with the combined weight CRITIC-entropy method, and employ a mediating effect model and a spatial Durbin model based on double fixed effects in this study, which intends to provide a theoretical basis for the establishment of a sound tax policy system that is conducive to the green low-carbon development. The results show that (1) there is an evident spatial dependence of green low-carbon development in the YRD region; (2) green taxation has a significant positive effect on green low-carbon development through rationalization of industrial structure and advance of industrial structure; and (3) the positive impact of green taxation on green low-carbon development in the region is characterized by spatial spillover and heterogeneity. Specifically, green taxation significantly promotes green low-carbon development in the core area, but such green taxation dividend has yet to be realized in the expansion area.

EU OPEN STRATEGIC AUTONOMY POLICY AS A TRIGGER OF INDUSTRIAL DEVELOPMENT AND A CHALLENGE FOR REGULATORY COOPERATION

The purpose of the article is to study the instruments of the policy of strategic autonomy of the European Union with an emphasis on projects of common European interest, and to assess its impact on the development of the industrial potential of member countries in the context of intensified economic competition in the international arena, accompanied by the erosion of regulatory cooperation. EU strategic autonomy aims to reduce the productivity gap between the EU and the US in all sectors of the economy. Strategic autonomy, among other things, is aimed at updating the EU’s comprehensive industrial strategy, which will help counteract trends of deindustrialization, expand access to venture capital, and accelerate the formation of a truly single capacious market of EU member states. Strategic autonomy will affect the prospects for building a sustainable, climate-neutral and cost-effective system that contributes to the growth of citizens’ well-being. It has been established that the new approach to industrial policy is closely related to the policy of strategic autonomy of the EU; a whole range of measures is aimed at increasing the effectiveness of industrial policy: the adoption of an Action Plan for the proper implementation and compliance with the rules of the single market; review of EU competition rules; development of an Action Plan for the protection of intellectual property, which involves ensuring the technological sovereignty of the EU; combating the theft of intellectual property, improving legislation in the field of public procurement, taking into account environmental requirements. The New Industrial Policy identifies the key factors in the EU’s industrial transformation and aims to achieve a threefold objective: maintaining global industrial competitiveness and a level playing field both in the domestic market and at the global level; turning Europe into a climate-neutral part of the world by 2050; achieving digital leadership in the world. In essence, we are talking about a new quality of economic growth, a new environmental model. The strategy is aimed at increasing the strategic autonomy of the EU in a period of increasing global competition and provides for reducing dependence on external supplies of critical raw materials, developing key technologies strategically important for the industrial future of Europe. The EU’s strategic autonomy policy restricts trade and competition in several ways: through the implementation of quantitative restrictions (quotas; import bans; bans on foreign investment); through price controls, subsidies and standards that apply equally to domestic and foreign suppliers; by establishing new digital policy rules (new restrictions on data regulation; data exchange obligations; taxes on digital services; regulation of digital services markets). Choosing unbalanced policy priorities can lead to reduced investment efficiency, slower competition, slower innovation, and worsening productivity and technology gaps between the EU and the US. The regulatory potential of strategic autonomy to promote market distortions is usually justified by the benefits of safety for society, ethical and environmental considerations, welfare effects for consumers and increased competitiveness of producers, however, it is predicted that it will inevitably produce losses that will be incurred by economic entities. manufacturing practices, review of value chains and supply chains, and due to legal uncertainty associated with how regulation is developed and applied. This inevitably indicates the risks of increased regulatory competition on an international scale.

합성생물학 위험에 대한 민사책임법적 대응

This paper deals with issues related to the concept and characteristics of synthetic biology(engineering biology), its usefulness and risks, the regulation and management of risks, and the relief of damages caused by the manifestation of risks. In particular, civil liability issues that may arise in the course of synthetic biology research and its industrialization were reviewed.
 Due to the nature of synthetic biology, it is realistically impossible to prevent all damages incurred in the process even if the operator of the technology fulfills the duty of care in operation. Damage relief through the application of the general illegal liability provisions and the Product Liability Act based on the principle of negligence liability cannot be an effective means due to the difficulty of proof, the limited scope of application, and the possibility of exemption through defense of development risks. It may also be considered to reduce the victim's burden of proof through interpretative theories such as presumption of negligence and shifting the burden of proof.
 However, in the field of high-level science and technology, it can harm legal stability because there are considerable difficulties in proving fault and making judgments.
 Damages caused by risks inherent in synthetic biology technology should be compensated through laws of risk liability. In the course of research and technical operation of synthetic biology, a person who controls and manages a risk source (Gefahrquelle) is liable for damages even if he or she is not at fault in the event that the risk materializes and infringes on the legal interests of others, which is consistent with the idea of fairness. Due to the nature of synthetic biology and genetic engineering, unlike product liability, the defense of development risk is excluded, but the assumption of causal relationship must be acknowledged. Regarding the establishment of the maximum amount of liability, considering the structure of the Damages Compensation Act, which takes the principle of limited compensation, it is judged that it is right not to limit it.
 No legislation has been enacted on risk management and regulation related to synthetic biology. In the LMO Act, there is no provision for liability for damages. Right now, it can be said that it is realistic to establish new regulations in the LMO. In addition to enhancing global industrial competitiveness through the use of synthetic biology technology, it is also a challenge to respond to legislation related to risk management, regulation, and damage relief.

PENGARUH IKLIM ORGANISASI TERHADAP KINERJA DENGAN MOTIVASI KERJA SEBAGAI VARIABEL INTERVENING

Introduction: Division of research and development to produce performance played a central role in the form of technological innovation cultivation of sugar cane and innovation performance of the global industrial competition. Required organizational climate that support performance improvement and business development research staff. Mutual support and encouragement in every settlement between management and employees work will provide a comfortable atmosphere in the performance of employees. High motivation for staff to be able to grow a maximum potential and competence of employees wants to work hard to realize the company's strategic objectives.Methods: To examine these issues, a questionnaire distributed to 35 staff in research and development of PTPNXI (Persero). The collected data were analyzed using SPSS analysis techniques. Results: The results showed that the significant effect of organizational climate on employee performance. Thus a good organizational climate will cause the employee improve performance. Good organizational climate and always oriented employment relationship in shaping the behavior of employees can motivate employees that will result in optimal performance of employees at work.Conclusion and suggestion: Managerial advice to do is apply organizational climate in PTPN XI (Persero) staff research and development efforts should be made clear again that the work climate that is able to adapt to the situation and condition of the employee. The next suggestion, leaders continue to increase employee motivation by not ignoring the rights and interests of employees as provide promotional opportunities, improved employee supervision system, increase confidence in the leadership, and maintain harmonious relationships between colleagues.

Research on China’s Manufacturing Industry Upgrading from the Global Perspective

The global industrial competition is undergoing major readjustment. Accompanied by the re-industrialization strategy of the developed countries, as well as the integration of the new generation information technology and the advanced manufacturing technology, China’s manufacturing industry is facing opportunities and challenges at the same time. This paper analyzed the global manufacturing industry development trend and pointed out China’s manufacturing industry existing problems. In the end, this paper put forward relevant suggestion to promote the transformation and upgrading of China’s manufacturing industry.

РЕЙТИНГУВАННЯ РЕГІОНІВ УКРАЇНИ ЗА РІВНЕМ КОНКУРЕНТНИХ ПЕРЕВАГ ПРОМИСЛОВОСТІ

The magnitude and heterogeneity of the industrial sector of the national economy requires its in-depth research in a regional dimension. The urgency of this problem is due to increased competition in world markets and the spread of globalization processes. The purpose of the article is to evaluate the activity and efficiency of the functioning of the industrial sector of the economy of the regions of Ukraine and build the rating of the latter on the level of competitive advantages of the industry. Using the author’s methodical approach, integral indices of competitive advantages characterizing activity (production, export, investment, capital, innovation) and efficiency (resource and economic) of Ukraine are calculated. According to the results of the calculation, the grouping of regions by the level of efficiency and activity of the functioning of the industrial sector of the economy has been carried out. The indices of competitive advantages are reduced to the general integral index, based on which values the regional ranking is based on the level of competitiveness of the industry. The key trends of development of domestic industrial production in the regional section are determined. It was determined that in 2016 the growth of values of such indicators was achieved in the most regions of Ukraine: the share of industrial production in the volume of sales of products (goods and services), the growth rates of capital investments in industry, growth rates of non-current assets, return on assets, labor productivity, profitability of operating activities, as well as indicators of innovation activity. At the same time, there was a decrease in the growth rate of the volume of industrial products sold, the share of non-current assets in assets, the share of industry in the total volume of direct foreign investments and the growth rates of the latter, as well as indicators of export activity. In general, the results of the integrated assessment of the competitive advantages of the industry in the regions of Ukraine provide an opportunity to create an objective analytical basis for making informed managerial decisions regarding the formation of a strategy for the development of the industrial sector of the national economy, in particular at the regional level. REFERENCES: 1. Porter M.E. Competitive Advantage. Creating and Sustaining Superior Performance. Free Press, New York, 1985. 557 p.2. Competition in Global Industries. Edited by Michael E. Porter. Boston: Harvard Business School Press, 1986. 581 p.3. Dunning J.H. The Globalization of Firms and the Competitiveness of Countries: Some Implications for the Theory of International Production, Crafoord Lectures 2, Institute of Economic Research, Lund University Press, Sweden, 1990.4. Dunning J.H. Alliance Capitalism and Global Business. London: Routledge, 1997. 400 p.5. Implementatsiia Uhody pro asotsiatsiiu mizh Ukrainoiu ta YeS: ekonomichni vyklyky ta novi mozhlyvosti : naukova dopovid. Za red. V.M. Heitsia ta T.O. Ostashko. Kyiv, 2016. 184 s. [in Ukrainian].6. Shynkaruk L.V., Bevz I.A., Baranovska I.V. ta in. Strukturni transformatsii v ekonomitsi Ukrainy: dynamika, superechnosti ta vplyv na ekonomichnyi rozvytok: naukova dopovid. Za red. L.V. Shynkaruk. Kyiv, 2015. 304 s. [in Ukrainian].7. Implementatsiia Uhody pro asotsiatsiiu mizh Ukrainoiu ta YeS: rekomendatsii na osnovi dosvidu krain Skhidnoi Yevropy: naukova dopovid. Za red. V.M. Heitsia, A.I. Danylenka, T.O. Ostashko. Kyiv, 2015. 104 s. [in Ukrainian].8. Ishchuk S.O., Sozanskyi L.I., Mikhel R.V., Byrka M.I. Konkurentospromozhnist promyslovosti rehioniv Ukrainy. Nauk. red. S.O. Ishchuk. Lviv, 2016. 73 s. [in Ukrainian].9. Metodyka rozrakhunku intehralnykh rehionalnykh indeksiv ekonomichnoho rozvytku, zatverdzhena Nakazom Derzhavnoho komitetu statystyky Ukrainy vid 15.04.2003 No. 114 (vtratyv chynnist). LihaZakon. URL: http://search.ligazakon.ua/l_doc2.nsf/link1/FIN7184.html [in Ukrainian].

Corporate Strategies and Global Competition: Odense Steel Shipyard, 1918–2012

This article analyzes the competitive strategies of Odense Steel Shipyard between 1918 and 2012 and challenges existing scholarship on competition in global industries. Until the 1980s, the yard adopted typical strategies in shipbuilding, starting with cost leadership and subsequently adopting global segmentation and differentiation strategies. From the mid-1980s, however, it successfully followed a unique national responsiveness strategy, which scholars including Dong Sung Cho and Michael E. Porter had ruled out in shipbuilding. The article shows how shipyard owners shaped strategies and influenced competitiveness.

INTERNATIONAL EXPERIENCE IN MANAGEMENT THE COMPETITIVENESS OF THE INDUSTRY OF THE COUNTRY AND ITS REGIONS

The article summarizes the international experience in management the competitiveness of the regional industry and its adaptation to the Ukrainian realities.The author noted that today, the logic of development of industrial competitiveness, including regional aspect must meet the challenges of modern international economic relations. The current dynamics of international economic relations demonstrates strengthening the role of collective efforts in the formation of proportionate responses to the crises of the world market.Main objectives of the public policy of the leading world countries have been underlined. The priorities in advanced production technologies in EU, USA and China have been identified. The analysis of the features of the management competitiveness in the leading world countries has been conducted. The global industrial competitiveness index in 2016 and forecast for 2020 has been presented and analyzed. It has been concluded that the competitiveness of the industry in the regions of Ukraine will be much higher with the work of state regional policy which is based on European principles and strengthened by the reform of administrative and territorial structure.

Design and selection of facility layout using simulation and design of experiments

In the global industrial competition, layout design and planning is becoming more and more critical due to shorter product life cycles and highly dynamic demand conditions. In this context, traditional layouts such as product and process/functional layouts are considered inferior. Cellular layouts have been proposed as an alternative to these layouts but they need a complete reallocation of resources, which consumes time and money. Hence, it is necessary to verify the performance measures before the design and selection of a certain type of layout. In this context, this paper makes an attempt to study the suitability of a virtual cellular layout (VCL) along with an existing functional layout (FL) of an industry and a classical cellular layout (CL), if considered for implementation. A Genetic algorithm (GA) based intra-cell formation procedure is used in the cellular layout design. To identify the suitability of a particular layout in a given environment, a typical manufacturing system is modeled using the WITNESS 2006 simulation software. Design of experiments (DOE) is used to plan the simulation experiments. The performance of each of the three layouts is analyzed statistically by means of operational parameters such as machine utilization, throughput, average distance traveled by parts and average work-in-process. The results from the simulation experiments indicate that the performance of virtual cellular manufacturing falls between that of functional and cellular manufacturing. Also, we find that the performance of a virtual cellular layout is often relatively superior to that of a functional layout and marginally inferior to a cellular layout.

Industrial Competitiveness of Pakistan (2000-10)

Though Pakistan’s exports have increased significantly, analyses have shown that Pakistan’s industrial competitiveness is limited to a narrow range of products. This paper looks at the factors affecting Pakistan’s competitiveness ranking and relates these various factors to trends in Pakistan’s total factor productivity. In addition to looking at the components of Pakistan’s competitiveness ranking, this paper details the steps required for Pakistan to increase its global industrial competitiveness.

An analysis of China’s global industrial competitive strength based on vertical specialization

At the beginning of the 1990s, China witnessed an increase in its international competitive strength in technology-intensive and capital-intensive industries, and a decrease in strength in labor-intensive industries. This paper analyzes the effect of vertical specialization on China’s international industrial competitive strength, explores how different industries have varying reactions under its implementation, and employs theory to explain the possible causes of these reactions. It is found that vertical specialization can help to strengthen China’s global industrial competitiveness, and on that basis, some suggestions are given on how to improve that competitiveness.

Cooperative competition in global industries: the strategic dimension

Existing theories addressing cooperation among competitors suffer from the limiting assumption that such cooperation must be explained by the intent either to collude or to realize the potential for joint cost or risk reduction. Yet it is axiomatic that, in any competitive arena containing multiple players, any subgrouping of players can benefit by forming a coalition with the purpose of directing competitive energies away from one another and toward nonparticipants in their coalition. Previous treatments, however, rarely examined the use of alliance relationships to shape competition in order to influence who competes with whom. As we argue, this omission is due in part to the restricting effects of regulatory policies on cooperation among competitors in their domestic markets. Widespread cooperation among (groups of) competitors within a single industry is generally found only in global industries. This article builds a strategic-competition model reflecting strategic motivations underpinning alliances among competitors in global markets. Based on the model, the article develops a series of propositions for future research.

Effect of network organization on alliance formation: A study of the Japanese automobile ancillary industry

Abstract Competition in global industries is shifting increasingly from interfirm rivalry to rivalry between networks of firms. Strategies of individual firms are thus contingent on the degree of interdependence that exists between them and the core firm in the network. The present study examines the effect of network affiliation on a member firm's decision to enter a foreign market and international strategic alliance formation. Affiliate firms have two options available to them: (1) enter into competitive strategic alliance with a competitor or (2) enter into a symbiotic strategic alliance with the core firm of the network organization. We tested this assertion using archival sources data on sixty-five Japanese automobile suppliers that had set up strategic alliances in the United States and that belonged to various interorganizational networks known throughout the Japanese automobile industry as keiretsu . Results indicate that when affiliate firms are dependent on the core firm, they prefer to form symbiotic strategic alliances. Conversely, affiliate firms prefer competitive strategic alliances with competitors when they are dependent on the core firm.

Understanding strategic intent in the global marketplace

In this article we underscore how important it is for corporate players in the world's competitive arena to understand the strategic orientation and intent of competitors, partners, and one's own often nationally diverse management team. We offer several examples to illustrate what it takes to succeed in this arena, and include some advice for companies interested in revising their perceptual maps. Such revisions have become imperative as competition in global industries intensifies, as more companies learn to manage across borders, and as the economies of nation states become interlinked.

Technological infrastructure and regional economic development of biotechnology firms

Biotechnology will have a significant effect on future global industrial competitiveness and regional economic development, and intense competition has resulted between regions and local communities to attract biotechnology investment. This paper describes empirical evidence from thirty-seven commercial biotechnology firms on background attributes, company origins, financial capital resources, market distributions, and strategic alliances. Data were collected through extensive personal interviews with senior executives and scientists. Findings indicate the significance of small and medium-sized firms in the biotechnology sector, the entrepreneurial origins of these firms, and the key relationship between the existing regional technological infrastructure and biotechnology firm formation. Evidence also outlines shifting patterns in firm development and financing and the move towards foreign markets and collaborative arrangements. The paper concludes with a discussion of the major challenges confronting biotechnology firms and policy implications for regional economic development.

Roundtable: Physics in Transition

The question before us can be stated simply: Where do we go from here? The “we” is the physics community, though it's our hope that the discussion will range more widely into science and technology, so we'll be able to comment on the changes likely to take place in research universities, national laboratories and private industry. Our subject is physics in transition to the 21st century. Some say physics has been in a state of transition for well over a century—certainly since James Clerk Maxwell in the 19th century. In every decade of the 20th century, physics has experienced momentous turning points. In this last decade of the century we seem to have reached another turning point with the end of nuclear weapons rivalry that was given the name of cold war and the increase of global industrial competitiveness. In the past year, pressures by the Federal government and by commercial companies have increased to make physics and the rest of science more relevant to business and to society. We are already witnessing the reduction of physics research at some major corporate laboratories and sensing a shakeup for physics facilities at some national labs. So this discussion of the future of physics is timely.

Technological infrastructure and regional economic development of biotechnology firms

Biotechnology will have a significant effect on future global industrial competitiveness and regional economic development, and intense competition has resulted between regions and local communities to attract biotechnology investment. This paper describes empirical evidence from thirty-seven commercial biotechnology firms on background attributes, company origins, financial capital resources, market distributions, and strategic alliances. Data were collected through extensive personal interviews with senior executives and scientists. Findings indicate the significance of small- and medium-sized firms in the biotechnology sector, the entrepreneurial origins of these firms, and the key relationship between the existing regional technological infrastructure and biotechnology firm formation. Evidence also outlines shifting patterns in firm development and financing, and the move towards foreign markets and collaborative arrangements. The paper concludes with a discussion of the major challenges confronting biotechnology firms and policy implications for regional economic development.

The Nonsuperpowers and South Africa: Implications For U.S. Policy (review)

220 SAISREVIEW The Nonsuperpowers and South Africa: Implications For U.S. Policy. By Richard J. Payne. Bloomington: Indiana University Press, 1990. 314 pp. $35.00/Hardcover. Reviewed by Elliot Posner, M.A. Candidate, SAIS. The fluidity of contemporary South African politics has probably dated Richard Payne's main point: that an effective American policy, aimed at dismantling apartheid, must be shaped in coordination with the nonsuperpowers. Still, his analysis and policy recommendations will remain a useful case study for the future, when the United States will again want to effect change in locations where it has only partial influence. The bulk of Payne's work—seven chapters, each detailing a relationship between South Africa and a nonsuperpower or group of nonsuperpowers—is, in its own right, of value. In each of the seven studies (on Britain, West Germany, Japan, Israel, Scandinavia, Canada and the Frontline States), Payne accounts for foreign policy decisions that have defined relationships with South Africa in terms ofhistory, culture, national psyche, economic and political stability, public opinion and decision-making institutions. Not satisfied to describe the various policies, he attempts to explain why such decisions were taken. These are engaging comparative discussions addressing how each nation, in an attempt not to sacrifice perceived national interests, chose the amount of pressure it would put on the South African government to end apartheid. Payne's biases do not interfere with his scholarship. He offers balanced and dispassionate appraisals, even if one might disagree with his conclusions. His inclusion of a chapter on the Frontline states properly frames the dilemmas encountered in making policy concerning South Africa. The chapter on West Germany, which describes the conflict between Genscher and Strauss and the resulting vague policy, is among the most interesting. Finally, the material on the Japanese historical experience with South Africa, including the "Honorary Whites" status granted to Japanese persons in 1961 to preserve extensive economic ties, raises perplexing questions regarding Japan's contemporary foreign relations. In places, the analyses come across as too facile (Britain, West Germany and Japan are said to place economics ahead of moral considerations), but in every instance Payne's evidence brings to the surface the complexities, contradictions and ambiguities in making and carrying out policies regarding South Africa. After expounding on the virtues of the "moral" Norwegians, for example, he mentions the provision in Norwegian law that allows national ships to deliver oil to South Africa. Nor does he overlook the benefits that the "moral" Canadians reap when their economic competitor, South Africa, retracts into isolation. This discord between easy reductions and nuanced evidence suggests a tendency to mistake a distinction of degree, between the different relationships with South Africa, for one of kind. Or has Payne simply side-stepped the compelling questions? Should we implicate certain of these nonsuperpowers for sleeping BOOK REVIEWS 221 with the devil, or can we explain away all policies through reverence for national interests? The hour for American anti-apartheid initiatives has probably expired, thus rendering Payne's ten policy recommendations obsolete. Moreover, Payne's provocative contention that the United States' unique experience with racial and ethnic conflict gives it credibility in its post-Cold War relations with South Africa may never be tested. The debate, nevertheless, over the degree to which sanctions and other strategies influenced the recent changes in South Africa has only begun. American foreign policy makers would be well advised to heed Payne's caution against unilateral policies in a world of many medium-sized players. If the evidence Payne presents is not earth-shattering (though it would be wrong not to recognize the thoroughness of the studies), he is to be commended for assembling it under one title. TAe Competitive Advantage ofNations. By Michael E. Porter. New York: The Free Press, 1990. 855 pp. $35.00/Hardcover. Reviewed by Ronald D. Sasine, M.A. Candidate, SAIS. Michael E. Porter's newest work, TAe Competitive Advantage ofNations, is the latest in his series of highly respected books on corporate strategy and competition . For readers familiar with Porter's previous efforts [Competitive Strategy (1980), Competitive Advantage (1985) and Competition in Global Industries (1986)], TAe Competitive Advantage ofNations represents a significant extension of his earlier...