THE EUROPEAN ELECTRONICS INDUSTRY - TECHNOLOGY AND STRUCTURAL-CHANGE

This paper analyses the strengths and weaknesses of the European electronics industry, including computers, semiconductors, telecommunications, defence, consumer goods and software. During the 1980s, Europe's 'national champions' were transformed into very large pan-European electronics corporations. Despite deep structural changes and European Community (EC) technology support programmes, European-owned industry remains weak in several key areas of electronics technology. This is not such a cause for concern as it appears at first sight. Some European-owned firms are now undoubtedly better equipped to meet the challenges of the 1990s. In addition, Europe is endowed with a base of foreign electronics firms, many of whom are integrated into Europe's industrial infrastructure. US semiconductor firms, for example, have trained many first class professional managers within their European subsidiaries since the 1960s, bringing about genuine technology transfer. Future EC policies should fully recognise the training, technology transfer and research and development activities of foreign firms in Europe. These firms will continue to play a central role in meeting the needs of European users of electronic components, equipment, software and services.