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Foreign Technology: Collection and Dissemination of Japanese Information Can Be Improved, GAO/NSIAD-93-251 September 30, 1993




United States General Accounting Office
National Security and International Affairs Division

B-254219

September 30, 1993

The Honorable Jeff Bingaman Chairman, Subcommittee on Defense
Technology, Acquisition, and Industrial Base 
Committee on Armed Services 
United States Senate

Dear Mr. Chairman:

In response to your request, we examined selected U.S. and
Japanese organizations that collect and disseminate foreign
technology information to users or customers in government,
industry, and academia.(l)  Specifically, we (1) identified the
Japanese government's process for performing these functions and
contrasted it with the U.S. government's process; (2) ascertained
Japanese officials' views on the elements of successful foreign
technology collection and dissemination efforts; and (3) assessed
the efforts of U.S. government organizations with offices in
Japan that are performing these functions. Our findings are
summarized below, and appendix I provides details on the roles of
the various U.S. organizations in Japan. We are also providing
information on the efforts of two U.S. government-sponsored
organizations located in the United States (the Japanese
Technical Evaluation Center and the Semiconductor Manufacturing
Technology consortium) to collect and disseminate foreign
technology information. (See app. II.)

     1. The "users" or "customers" of the information collected
     by these organizations are those individuals or groups,
     usually within the home agency, that the organizations'
     missions require them to provide the information to.

Background

U.S. government officials and industry representatives often cite
Japan as a good example of a country whose government has played
a key role in collecting, analyzing, and disseminating foreign
technology information to both its industry and government. Among
other things, such efforts have helped make Japan's economy the
second largest in the world. After World War II, Japan solidified
its technology base by importing foreign technology to supplement
its own research and development efforts.

Japan's primary industrial technology agency is the Ministry of
International Trade and Industry (MITI). MITI's mission is to
further industrial research and development in Japan, and it has
been active since the early 1960s in supporting Japanese
industry. Despite these government efforts, many Japanese
government officials and industry representatives

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.
said that Japanese companies are the primary collectors of
specific information on foreign technologies. 

Current literature indicates that Japanese research and
development capabilities have been growing stronger, and Japanese
government industrial policies have been targeting
knowledge-intensive technologies as well as substantially
increasing government and industry investments in new
technologies.(2)  Japan has several efforts underway to create
new technologies and products, including (1) developing special
technology capabilities in areas, such as aircraft,that will
position Japanese firms as key subcontractors or program partners
in international programs(3)  and (2) combining existing
industries such as biotechnology and energy. Many Japanese
technological capabilities now match those of the United States
and in some cases have surpassed U.S. capabilities.

     2. Japan-U.S. Economic Issues: Investment, Saving,
     Technology, and Attitudes, Congressional Research Service
     (Feb. 2, 1990).

     3. David B. Friedman and Richard J. Samuels, "How to Succeed
     Without Really Trying: The Japanese Aircraft Industry and
     Japan's Technology Ideology," in Regionalism and Rivalry:
     Japan and the United States in Pacific Asia, J. Frankel and
     M. Kahler, eds. (Chicago, IL forthcoming 1993).

Most U.S. firms have relied on indigenous technology for their
industrial development. The U.S. government has not developed a
focused system for collecting foreign technology information and
disseminating it to industry and academia, despite their
increasing interest in obtaining this information.(4)  Rather,
the U.S. government's approach to monitoring foreign technology
information is largely a result of its focus on military
technology and supporting basic research and development. Several
U.S. government organizations, most of which are defense-related,
have offices in Japan to collect foreign technology information
and disseminate it to their home agencies. These include the
Defense Technology Office, the research offices of the three
services, and the Environment, Science, and Technology Office in
the American Embassy in Tokyo.

     4. Some large U.S. corporations have established research
     and development operations overseas in order to monitor
     foreign technology information, and some companies obtain
     this information via consulting firms.

Results in Brief

The Japanese and U.S. governments' approaches for collecting and
disseminating foreign technology information are organized and
funded differently. The Japanese government has an extensive,
centrally coordinated process and uses considerable resources to
collect and disseminate foreign technology information primarily
for commercial purposes. This process is characterized by (1)
extensive networks

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between officials and researchers in government, industry, and
academia that provide information and (2) a methodical process of
consensus building regarding what technologies should be
monitored within a competitive, commercial framework. Experts
collect information in specific areas of interest, which is
targeted to the needs of the users, and then use extensive and
multiple channels to disseminate the data. MITI facilitates and
coordinates government, industry, and academic activities,
including research and development programs and foreign
technology information collection efforts, by providing
technology information and significant funding for these
activities.

The U.S. government, on the other hand, has a decentralized
process that includes various civilian and defense agencies'
offices and laboratories in the United States and overseas that
collect information to support their differing missions. In 1990,
we reported that 62 U.S. federal civilian and military offices
and divisions within 6 departments and independent agencies
monitor foreign technology information.(5)  We assessed 10 of the
U.S. civilian and defense offices in Japan that collect and
disseminate foreign technology information.(6)  The missions of
the defense organizations, in particular, place little, if any,
importance on providing information to industry and academia.
Moreover, most of these U.S. government organizations in Japan
are military-oriented, and most of the U.S. resources are
expended by military activities. No central U.S. agency has a
role similar to MITI's, and coordination among these U.S.
civilian and defense offices is limited. Collectively, the U.S.
government organizations in Japan have fewer resources than the
Japanese government does in the United States for foreign
technology collection and dissemination activities.

     5. Foreign Technology U.S. Monitoring and Dissemination of
     the Results of Foreign Research (GAO/NSIAD-90-117, Mar. 21,
     1990). See also Foreign Technology: Federal Processes for
     Collection and Dissemination (GAO/NSIAD-92-101, Mar. 23,
     1992).

     6. With a few exceptions, such as intelligence
     organizations, we assessed all of the U.S. government
     organizations in Japan that collect and disseminate foreign
     technology information. The Department of Commerce is not
     included in this study, since officials from its office in
     Japan, the U.S. and Foreign Commercial Service, told us that
     they do not collect foreign technology information to any
     significant degree.

Japanese government and private sector officials stressed the
importance of determining and providing the foreign technology
information that customers want and need. Other elements of a
successful system that they identified include (1) maintaining a
cooperative government-industry relationship, (2) treating
technology monitoring as an integral part of a

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organization's operations, and (3) locating operations in the
target country. 

Only a few of the 10 U.S. civilian government and defense
organizations in Japan that we reviewed have reevaluated and
revised their missions with regard to science and technology
collection and dissemination to reflect changes in the
international arena.(7)  Further, some of the U.S. organizations
have not identified the demand for and usefulness of the
information they collect and disseminate to potential customers
in government, industry, and academia. To some extent, this
problem also exists regarding the organizations' current, mostly
internal agency customers. In addition, the U.S. organizations'
efforts are limited by the lack of (1) coordination of activities
among the various civilian and military offices and (2)
appropriate background and language skills for some of the
information collectors.

The Japanese and U.S. Governments Have Different Approaches for
Collecting and Disseminating Foreign Technology Information

The Japanese government plays a more significant and intense role
in guiding the national research and development effort for
economic competitiveness than the U.S. government. In addition,
Japan spends a lot of money to collect, analyze, and disseminate
foreign technology information to its government, industry, and
academia. MITI (1) establishes organizations that carry out
specific research and development programs; (2) provides funds
(subsidies) and/or information, such as data on foreign
technology policy and research capabilities, to government and
private sector organizations for research and development
projects; (3) coordinates government-industry policies, for
example, by routing information toward those who will benefit
from it; and (4) facilitate technology diffusion and transfer.

     7. One organization that has changed its mission is the
     Asian Office of Aerospace Research and Development Officials
     from the Air Force Office of Scientific Research told us
     that the mission of the Asian Office, which was recently
     reestablished in Tokyo, has been changed to include
     monitoring more applied technology, which may be useful to
     industry, as well as the basic technology that they have
     traditionally focused on.

The Japanese government primarily collects foreign technology
information through MITI-sponsored organizations. In response to
requests from government organizations, industry, and academia,
the Japan External Trade Organization (JETRO), MITI's primary
information collection organization, collects foreign technology
information through its extensive network of offices in Japan and
overseas and disseminates it to requesters

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primarily for commercial purposes.(8)  Overall, JETRO has 1,200
staff in a total of 107 offices worldwide. About half of the
staff is located in its 31 offices in Japan, with the other half
in 76 offices in 57 countries. The Japanese government provided
about $182 million towards JETRO'S fiscal year 1992 budget. JETRO
officials told us that they could not identify the amount of
additional funds that JETRO receives from private sources. JETRO
employs 187 staff in 8 offices located throughout the United
States, but JETRO officials told us that they could not determine
the total budget for these offices. However, through other
sources, we found that JETRO's New York office alone has an
annual budget of $8 million and 80 staff. JETRO'S staff is
supplemented by staff from several other government and industry
organizations. 

     8. To advance its overall mission to support trade between
     Japan and other countries, JETRO also promotes imports in
     Japan, industrial cooperation, and international exchange.

According to both Japanese government and private sector
officials, however, private companies in Japan, not the Japanese
government, are the primary collectors of specific information on
foreign technologies.(9)  They said this is true particularly for
large firms, such as Nippon Electronics Corporation, that have
extensive, in-house capabilities to monitor and disseminate
foreign technology information within the company. A State
Department official told us that U.S. and foreign firms can
operate relatively inexpensively in the United States, compared
to operating in Japan. According to a U.S. Embassy official,
Japanese businessmen are voracious consumers of technical
information. In addition, the Japanese government and private
sector have relatively easy access to U.S. technology
information, because (1) many Japanese, including scientists and
engineers, speak and read English and (2) much of the U.S.
research and development is done in an open university system.

     9. Japan also has networks of related companies and
     financial institutions, called keiretsu, that provide means
     for information exchange as well as risk- sharing and mutual
     problem-solving. See Competitiveness Issues: The Business
     Environment in the United States, Japan, and Germany
     (GAO/GGD-93-124, Aug. 9, 1993).

In contrast, the U.S. government has not developed an extensive,
centralized system for collecting and disseminating foreign
technology information. Total staff and budget figures for U.S.
government organizations that collect and disseminate foreign
technology information worldwide are not readily available. There
are 62 civilian and military offices and divisions within 6
departments and independent agencies that monitor foreign
technology information. U.S. efforts are primarily oriented
toward the military in terms of the number of organizations and
the way resources are expended. Seven of the 10 U.S. government
organizations in

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Japan that we assessed were military organizations, and about 72
percent of the U.S. funds are spent for these military
activities. The U.S. civilian and defense organizations in Japan
have from 1 to 32 staff members working on foreign technology
collection and dissemination activities. A total of 86 U.S.
personnel are working on such activities at these organizations
in Japan. The organizations' fiscal year 1992 operating budgets
ranged from $301,000 to $1.06 million and totaled $6.2 million. 

In February 1993 testimony,(10)  we stated that a host of federal
offices and laboratories in the United States collect information
on foreign science and technology. The organizations collect and
assess the information for different purposes, which are
determined largely by their missions. Although the U.S.
Department of Commerce is the closest counterpart to MITI(11) 
neither it nor any other U.S. agency performs MITI's role of
coordination. In addition, cooperation among the U.S.
organizations that collect and disseminate foreign technology
information is not currently required. As a result, cooperation
among the U.S. civilian and defense organizations in Japan is
limited.

     10. Science and Technology: Federal Efforts to Collect and
     Analyze Information on Foreign Science and Technology
     (GAO/T-RCED-93-8).

     11. Japan-U.S. Economic Issues: Investment, Saving,
     Technology, and Attitudes, Congressional Research Service,
     (Feb. 2, 1990).

Although it is not part of their mission, some U.S. government
organizations in Japan also provide the information that they
collect to industry and academia. Other U.S. organizations,
primarily intelligence organizations, restrict access to their
analyses. Although U.S. experts have reported increased interest
in foreign technology information by U.S. companies, they said
that many companies still do not actively seek out this type of
information on their own or through consultants. According to a
U.S. electronics industry association representative, the
companies often do not recognize the strategic value of the
information and, therefore, are unwilling to pay for it. Even for
those companies that are interested in obtaining the information,
setting up foreign technology collection operations is very
costly, particularly in Japan. Only a few large U.S. corporations
have such operations in Japan. In addition, the U.S. government
and private sector have difficulty obtaining access to Japanese
technology information, since (1) many Americans do not speak or
read Japanese and (2) much of Japan's research and development is
done in industry laboratories.

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U.S. and Japanese government and private sector organizations
have similar techniques for collecting and disseminating foreign
technology information, although the Japanese perform these
activities on a much larger scale. Representatives of U.S. and
Japanese organizations attend symposiums and international
conferences, collect technical literature, visit laboratories and
individual scientists, and participate in or sponsor
international researcher exchanges and collaborative research and
development efforts. Japanese officials emphasized that
establishing and maintaining informal networks with other
Japanese and foreign scientists was useful. U.S. and Japanese
officials use journals, reports, newsletters, databases,
facsimiles, and workshops to disseminate information. 

Japanese Views on the Elements of a Successful System

Japanese government and private sector officials cited four
elements that they believe contribute to a successful system for
collecting and disseminating foreign technology information: (1)
targeted data collection, (2) a cooperative government-industry
relationship, (3) treatment of foreign technology monitoring as
an integral part of their operations, and (4) establishment of
operations in the target country.

Targeted Data Collection

One important element of an effective information collection and
dissemination effort cited by the Japanese is that it be
demand-driven. In other words, the needs of the users of the
information must be identified and met in order to be successful.
For example, JETRO regularly uses inquiries to survey its
customers' needs and determine the best dissemination method.
JETRO, among other activities, gathers information for private
companies on technologies and markets, based on specific requests
for information, in much the same way that a consulting company
would tailor information to a client's strategic and operational
needs.

In contrast, the majority of the U.S. government organizations in
Japan have not identified the demand for and usefulness of the
information they collect and disseminate to potential customers
in government, industry, and academia. To some extent, this
problem also exists regarding their current, mostly internal
agency customers. For example, the Environment Science, and
Technology Office in the American Embassy has not recently done
research to identify customer and potential customer needs as
well as the appropriateness of its reporting format.

A study done by a large Japanese consulting company suggested
that the U.S. business and scientific communities are not
interested in Japanese

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technology information, even if it is provided in English.(12) 
According to an Embassy official, this lack of a demand-pull from
U.S. industry may explain why the U.S. government has a
relatively small effort to provide such information. Department
of Defense (DOD) officials told us that U.S. companies may not be
interested in the information collected by government
organizations because much of the information is not analyzed.
However, a U.S. company official said that U.S. companies may not
solicit this type of information from the U.S. government because
the do not want to indicate which technologies they are
interested in. In fact, according to a National Technical
Information Service official, some large companies purchase the
Service's entire database tape and do their own issue searches to
hide their specific area of interest. 

     12. Scientific and Technical Information Transfer Between
     Japan and the United States, Mitsubishi Research Institute
     (Oct. 1992).

A Cooperative Government-Industry Relationship

According to Japanese officials, the Japanese government and
industry have a very effective government-industry relationship
that contributes to the flow of foreign technology information
among various organizations. Officials from a U.S. company agreed
with this observation. In addition, Japanese company officials
said that one of their most useful methods of obtaining
information is participating in government-sponsored research and
development projects where several Japanese companies are
involved.(13)

     13. Officials from a U.S. company said that foreign
     technology information is also obtained from negotiating a
     coproduction agreement, even when the company decides not to
     do the project. Coproduction is overseas production based on
     government-to- government agreement that permits a foreign
     government or producer to acquire the technical information
     to manufacture all or part of a U.S.-origin defense article.

A State Department official told us that there is a more
cooperative government-industry relationship in Japan than in the
United States, because the Japanese government does not restrict
the flow of information to the private sector as much as the U.S.
government does. He said that the Japanese government has fewer
security and copyright restrictions on information due to its
more informal process of disseminating information. For example,
the Japanese government provides information to Japanese industry
associations that condense and repackage the information.
According to the official, U.S. industry associations are not
usually as focused on collecting and/or disseminating such
information, but are primarily concerned with lobbying the
Congress and the executive branch.

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An Integral Part of Operations 

Another effective element cited by the Japanese is that
organizations treat foreign technology monitoring as an integral
part of their operations. Rather than having separate, specific
offices for this activity, researchers, scientists, and others
throughout the organizations monitor foreign technology
information. For example, the Japanese research and development
consortium for superconductor technology expects all its
researchers to stay abreast of foreign technology developments in
their field as part of their work. In contrast, the U.S.
Semiconductor Manufacturing Technology consortium (SEMATECH) has
one separate office that collects foreign technology information
and disseminates it to its internal programs and member
companies. However, according to a SEMATECH official, U.S.
government and private sector organizations generally cannot rely
on scientists and engineers to collect foreign technology
information on their own, since many do not have Japanese
language skills and some of the technical information is only
available in Japanese. Therefore, SEMATECH's foreign technology
collection office routinely works with its internal and external
customers to ascertain their information needs.

Operations Located in the Target Country

According to representatives from a Japanese company, one of the
best foreign technology information collection methods is to use
a research/consulting firm located within the target country. In
addition, foreign partners and subsidiaries often can provide
information on operations in other countries. 
U.S. company representatives told us that their company's
affiliates in Tokyo observe foreign technical developments as
they occur and thereby serve as an important part of their
foreign technology monitoring system. However, many U.S.
companies do not have affiliates or foreign technology monitoring
operations in Japan largely because of the high cost.

Reevaluating Missions Can Enhance the Effectiveness of U.S.
Government Organizations in Japan

Our review showed that the U.S. civilian government and defense
organizations in Japan that we reviewed were not operating as
effectively as they could. Many of the organizations' missions do
not reflect changes that have occurred in the international
arena, such as technological advancements in Japan and the end of
the cold war. Further, some of the U.S. organizations have not
identified the demand for and usefulness of the information they
collect and disseminate to potential customers in government,
industry, and academia. To some extent, this problem also exists
regarding the organizations' current, mostly internal agency
customers. In addition, the U.S. organizations' efforts are
limited by the

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lack of (1) coordination of activities among the various civilian
and military offices and (2) appropriate background and language
skills for some of the information collectors. 

Figure 1 shows the different missions of the U.S. civilian
government and defense organizations in Japan as well as their
funds, staff, and reporting requirements.


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Failure to Reevaluate and Revise Missions

Due to the important foreign technology and policy developments
and increased technological capabilities overseas, many U.S.
government and

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private sector officials recognize that foreign technology
information is often a key element to strengthening the economic
competitiveness of U.S. industries. Some officials suggested that
the U.S. government could help by providing useful, unclassified
foreign technology information to users in industry and academia.
However, the traditional federal role has focused on military
technology development and is generally limited to supporting
basic science and mission-oriented research in various federal
agencies. In addition, since the U.S. government has focused on
military technology, most of the U.S. organizations in Japan that
collect and disseminate foreign technology information are
defense organizations that place little, if any, importance on
providing information to industry and academia. 

Lack of Research on Customer and Potential Customer Needs

The primary missions of the U.S. organizations in Japan are to
respond to their individual agency needs, and these needs are
being identified and met, at least to some extent, with regard to
their current, mostly internal agency customers. The
organizations are (1) identifying the general technical areas
that need to be monitored and (2) evaluating how useful some of
the information is to their customers. For example, the Office of
Naval Research annually reviews one-third of its technical
programs, including assessing the information that its foreign
offices in Japan and Europe are disseminating. The Office of
Naval Research held a one-time Peer Review in 1992 to evaluate
the effectiveness of its foreign offices' science and technology
information collection efforts. As a result of this review,
several aspects of its foreign offices, such as how they are
staffed will change. In addition, an Army Research Office
official told us that some of the U.S. organizations in Tokyo
perform assessments in response to the needs of their customers.
For example, a number of U.S.-Japan workshops have been organized
on issues of direct interest to DOD research laboratories.

However, although some organizations' approaches to identifying
and addressing customers' needs appear to be more effective than
others, little information is available regarding the specific
needs of the organizations current, internal agency customers.
For example, some of the organizations have not done research to
identify the most effective reporting format or channels.

Some organizations also disseminate information to industry and
academia on their own initiative. The Office of Naval Research's
Asian Office in Tokyo is responsible for studying, assessing, and
reporting to the

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Office of Naval Research on basic science and technology
developments Japan and other Asian countries. A scientist in this
office has developed lists of interested customers in government,
academia, and industry and uses electronic mail to quickly and
inexpensively disseminate information on Japanese developments in
computer science and technology. According to university
researchers, this information is valuable and may not be readily
available otherwise. 

However, the U.S. organizations have generally not identified the
demand for and usefulness of the information to potential
customers in government, industry, and academia. For example, the
Embassy Environment, Science, and Technology Office disseminates
foreign technology information to users in industry and academia
via Project STRIDE cables.(14)  A 1988 report prepared for the
National Science Foundation, State, and Commerce concluded that
industrial research and development managers believed this
information had limited value.(15)  In addition, military
officials told us that the STRIDE cables are difficult to read
due to their format. In our February 1993 testimony, we stated
that there may be reason for caution in efforts to provide
foreign technology information to industry and academic
organizations because the usefulness of this information to them
has not been determined.

     14. Project Science and Technology Reporting for Information
     Dissemination Enhancement (STRIDE) is a mechanism used by
     State, Commerce, and the National Science Foundation for
     disseminating science and technology information developed
     abroad to users in federal laboratories, academic
     institutions, and the private sector on a fee-for-service
     basis through Commerce's National Technical Information
     Service.

     15. William D. Guns, Catherine P. Ailes, and Damian M.
     Saccocio, Project STRIDE: S&T Reporting for Information
     Dissemination Enhancement, SRI International
     (STPP-TN-3164-6, Aug. 1988).

Lack of Coordination Between Civilian and Military Organizations

Although coordination among these civilian and defense
organizations is not required,(16)  U.S. Embassy officials in
Tokyo told us that cooperation would be beneficial because it
would (1) provide an opportunity to share information and limited
resources, (2) offer the potential to reduce unnecessary
duplication, and (3) help to establish a coherent foreign science
and technology policy. For example, U.S. military officials in
Japan told us that the Environment, Science, and Technology
Office in the Embassy is an institution highly respected by
Japanese industry with whom they have developed working relations
to promote U.S.-Japan technology exchange. This office's
assistance could help U.S. military

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offices in Japan establish contact with the Japanese science and
technology community, since the community, reflecting the views
of the larger Japanese society, has not been receptive to U.S.
military representatives. 

     16. The National Defense Authorization Act for Fiscal Years
     1992 and 1993 requires the Secretary of Defense to establish
     the Office of Foreign Defense Technology Monitoring and
     Assessment to help coordinate  defense-related foreign
     technology monitoring activities. The Defense Intelligence
     Agency is the lead agency in establishing this office.

Some U.S. organizations, such as the three services research
offices, are cooperating by sharing information and coordinating
staffing requirements; however, according to U.S. Embassy and DOD
officials, efforts initiated by the Embassy Environment, Science,
and Technology Office to share information, such as biweekly
meetings, have encountered several problems. For example, Embassy
and DOD officials said that because the civilian and defense
offices have differing missions and reporting requirements that,
in some cases, restrict dissemination of the information even
among other federal offices, many of the military participants
are non-communicative during the meetings and some relevant
military officials do not attend. In addition, a U.S. military
official in Japan told us that his organization has not been
invited to these meetings. According to an Embassy official, it
is not surprising that no central federal agency is responsible
for coordinating the collection of foreign technology information
because of the organizational distinction between the civilian
agencies and defense and intelligence agencies.

Lack of Appropriate Background and Language Capabilities

U.S. officials that we interviewed in Japan had differing
perspectives regarding the appropriate background needed for a
staff member to effectively collect foreign science and
technology information. Several the U.S. officials in the
civilian and defense organizations that collect foreign
technology information in Japan do not have a technical
background, such as science or engineering. U.S. Embassy
officials told us that collectors who do not have a technical
background can adequately collect general technology information
used for policy decisions. However, officials from the defense
organizations said that, when collecting and assessing technical
information, experts are needed to comprehend the relevance and
implications of technical developments and provide more detailed
information useful to researchers and scientists. A U.S. Embassy
official in Japan told us that the information would be of better
quality if those without a technical background and technical
experts worked together to collect and assess the information.

Many of the officials collecting information for the U.S.
government efforts in Japan also do not have Japanese language
capabilities. U.S. officials told us that this lack of language
skills poses problems when collecting

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technology information in Japan, since much of the most important
technical information in Japan is available only in Japanese. In
fact, DOD officials told us that it is difficult to find U.S.
scientists and researchers who have foreign language
capabilities; however, a DOD official told us that his agency is
beginning to address the problem by providing education and
training in Japanese language, culture, and management and
business practices to U.S. scientists, engineers, managers, and
students.(17)  According to the DOD official, an effective short-
term solution may be to enable U.S. organizations in Japan to
hire staff with Japanese language skills to assist technical
staff who lack these skills. 

     17. The United States-Japan Industry and Technology
     Management Training Program is being conducted by the Air
     Force Office of Scientific Research on behalf of DOD. Eight
     universities have been funded in merit-based competitions
     since fiscal year 1991 to increase DOD's understanding of
     Japanese technology management methods.

Recommendations

We recommend that the Secretaries of Defense and State, in
consultation with the Secretary of Commerce, reevaluate the
missions of their offices that monitor and disseminate foreign
technology information in Japan in light of global economic and
technical changes.

We also recommend that these offices in Japan be required to 

-    determine through sample surveys/evaluations
     -    the information needs of their customers and potential
          customers; 
     -    how well they are addressing these needs; and 
     -    how they can improve the usefulness of the information
          collected as well as their reporting formats and
          methods of dissemination;

-    coordinate and cooperate with other U.S. government
     organizations in the various federal agencies and
     laboratories that are monitoring and disseminating foreign
     technology information to make the best use of the federal
     resources that are being spent on these activities; and 

-    hire or train staff with the appropriate background and 
     language skills needed to effectively collect foreign
     technology information and/or assign teams of technical and
     nontechnical staff as well as staff with and without
     language skills to maximize staff capabilities.

Our scope and methodology are discussed in appendix III.

We performed our review between February 1992 and July 1993 in
accordance with generally accepted government auditing standards.
As requested, we did not obtain agency comments on this report.
However,

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we discussed our findings with program officials from DOD, State,
and Commerce as well as U.S. private sector officials. They
generally agreed with our findings. We have included their
specific views where appropriate.

We are sending copies of the report to the Chairmen, Senate and
House Committees on Armed Services and the House Committee on
Science, Space, and Technology. We will also make copies
available to others upon request.

Please contact me at (202) 512-4587 if you or your staff have any
questions concerning this report. Major contributors to this
report are listed in appendix IV.

Sincerely yours, 

David E. Cooper 
Director, Acquisition, Policy, Technology, and Competitiveness
Issues 

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page 20

Contents

Letter                                                        1

Appendix I - U.S. Government Organizations in Japan That Collect
and Disseminate Japanese Technology Information 

Environment, Science, and Technology Office                   22
National Science Foundation - Tokyo                           23
Department of Energy - Tokyo                                  24
Defense Attache Office                                        27
Office of Naval Research - Asia                               27
Army Research Office - Far East                               29
Asian Office of Aerospace Research and Development            30
Army Science and Technology Center Far East                   31
Air Force Detachment 1                                        32

Appendix II - U.S.-Sponsored Organizations in the United States

The Japanese Technical Evaluation Center                      34
SEMATECH                                                      37

Appendix III - Scope and Methodology                          38

Appendix IV Major Contributors to This Report                 40

Figure                                                        12

Figure 1: U.S. Government Organizations in Japan That Collect and
Disseminate Foreign Technology Information

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Abbreviations

AOARD     Asian Office of Aerospace Research and Development 
ARO-FE    Army Research Office, Far East 
DOD       Department of Defense 
DOE       Department of Energy 
DTO       Defense Technology Office 
JETRO     Japan External Trade Organization 
JTEC      Japanese Technical Evaluation Center 
MITI      Ministry of International Trade and Industry 
NSF       National Science Foundation 
ONRASIA   Office of Naval Research, Asia 
SEMATECH  Semiconductor Manufacturing Technology Consortium 
STRIDE    Project Science and Technology Reporting for
          Information Dissemination Enhancement

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Appendix I

U.S. Government Organizations in Japan That Collect and
Disseminate Japanese Technology Information

This appendix discusses the efforts of 10 U.S. government
organizations in Japan to collect and disseminate Japanese
technology information.

The 10 U.S. government organizations that collect technology
information in Japan we reviewed, including 3 civilian and 7
defense organizations, have diverse missions and differing
reporting requirements, but have similar approaches to collecting
and disseminating foreign technology information. Although some
organizations provide raw data, some provide analyzed
information, and others provide both. The organizations have
experienced similar difficulties in obtaining access to Japanese
technology information. Officials from each U.S. organization
provided the following information.

Environment, Science, and Technology Office

The Environment, Science, and Technology Office in the American
Embassy in Tokyo is funded by the State Department's East Asia
and Pacific Bureau. It has several missions, including (1)
managing the interests of U.S. technical agencies, (2) covering
nuclear nonproliferation, (3) covering environmental policy and
cooperation, and (4) collecting information on Japanese science
and technology developments and disseminating it to policymakers
at the State Department. According to an official from this
office, environmental policy and cooperation probably takes up
more time than any other concern.

Although disseminating information to industry and academia is
not a formal task of the Environment, Science, and Technology
Office, helping U.S. businesses to compete is one criteria that
the State Department now uses to evaluate all staff for
promotion. The Office in Tokyo disseminates the foreign
technology information that it collects to government and
nongovernment decisionmakers via Project STRIDE. The science
officers determine on a case-by-case basis what technology
information should be provided through STRIDE. For example, a
recent STRIDE cable included information on the joint development
by Nippon Electronics Corporation and AT&T of a 64-megabit direct
random access memory contact formation technique.

The total cost for the Environment, Science, and Technology
Office for fiscal year 1993 is estimated to be $875,000. The
Office has seven science officers and four foreign service
nationals who provide administrative and logistical support as
well as contacts to the Japanese community. Two of the science
officers have technical backgrounds and three are fluent in

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page 23

Japanese.(1)  A science officer told us that foreign policy
generalists can do adequate analyses of technological
developments, even though such analyses would be enhanced if they
worked side by side with technical experts. 

     1. According to a State Department official, two positions
     in the Environment, Science, and Technology Office are now
     designated as requiring Japanese language fluency.

The science officers determine what technology information to
collect based on (1) information reported in the Japanese press,
(2) specific State requests, and (3) trends identified during the
course of their work.(2)  Information is primarily collected by
monitoring developments reported in Japanese - mostly English
language - newspapers and other publications, such as the Science
and Technology Agency's monthly bulletin, STA Today. Some
publications and information are received directly through the
Japanese government. When addressing a specific request, the
science officers will occasionally collect information on
specific technology developments by telephoning or visiting
Japanese companies or government laboratories. Information is
disseminated via cables.

     2. According to a science officer, they learn what
     information is important.
According to a science officer, for the most part, the
Environment, Science, and Technology Office does not have a
problem getting access to Japanese technology information.
However, because some of the science officers cannot read
Japanese or are not fluent in the language, they cannot closely
monitor documents that are only written in Japanese. According to
the head of the Office, the main problems his staff faces are (1)
disseminating STRIDE information to industry via the National
Technical Information Service, which is not as effective as it
should be since it does not have sufficient funds, and (2) the
lack of interest in foreign technology information on the part of
U.S. industry.

National Science Foundation - Tokyo

The National Science Foundation's (NSF) Tokyo office is located
in the American Embassy. NSF provides funds for science-related
programs and projects. Some of the Tokyo office's many functions
include (1) collecting information on Japanese science policy and
developments and (2) acting as a liaison/intermediary in the many
NSF programs with the Japanese government, public corporations,
and industry. For example, the NSF Tokyo Office provides support
for the U.S. scientists and researchers working and studying in
Japan under NSF fellowship programs. In addition, the office
provides support to the Japanese Technical Evaluation Center
(JTEC) panels during their visits to Tokyo.

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page 24

The fiscal year 1992 budget for the NSF Tokyo office was
$404,000. The office has one scientist and four Japanese
administrative staff to assist him in reporting information to
NSF headquarters in Washington, D.C. The scientist normally
serves a term of at least 2 years. The Office's current scientist
has Japanese language skills that enable him to discuss science
and technology-related matters with Japanese government officials
as well as make presentations in Japanese. 

The NSF Tokyo Office has several science policy issues that it
routinely monitors, including the budget and future projects of
the Ministry of International Trade and Industry (MITI). In
addition, the Office receives direct requests from NSF offices in
Washington, D.C. The scientist uses his own discretion to
determine what additional information should be collected.

The scientist collects science information by monitoring
government documents and Japanese newspapers and other
publications that are available in English as well as attending
conferences and meeting with Japanese government and private
sector officials. Information is disseminated to NSF through
internal reports and memorandums. NSF offices then incorporate
the information into their own reports and documents that are
available to the public via the National Technical Information
Service. The NSF Tokyo office also provides information directly
to the Environment, Science, and Technology Office for its STRIDE
cables. Other than through the National Technical Information
Service, neither NSF nor the Tokyo office has an established
mechanism for providing information to U.S. industry.

According to the NSF Tokyo office scientist, obtaining
information on Japanese research is relatively easy, since, in
the past 6 years, Japanese government agencies have been
producing more English language brochures outlining the types of
projects they are doing and the amount of funds devoted to those
projects.(3)

     3. U.S. and Japanese officials told us that a time lag can
     occur between the time a Japanese document is published in
     Japanese and the time it is translated and made available in
     English.

Department of Energy - Tokyo

The Department of Energy (DOE) has an office located in the
American Embassy in Tokyo to represent and service all Energy
program offices with interests in Japan as well as to advise the
Ambassador on energy-related matters. The office has regional
responsibility for all Energy program interests, such as
materials and service sales, national laboratory

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page 25

programs, and researcher exchanges. The Tokyo office reports to
the Department's Office of Domestic and International Energy
Policy. 

The DOE Tokyo office's operating budget was $490,000 for fiscal
year 1992, and it has three technical staff, one of which is a
U.S. official who heads the Office, and one administrative staff.
The head of the office has a technical, business, and economic
background and has Japanese language skills. The rest of the
staff is Japanese.

The DOE Tokyo office collects technical information for Energy
program offices and laboratories that may also assist U.S.
industry to export goods and services to Japan. Staff collect
information on Japanese energy developments by monitoring
Japanese literature and through regular contacts with officials
from the government, scientific, academic, and private sectors.
Staff also meet with Japanese officials from agencies, such as
MITI, the Ministry of Foreign Affairs, and the Science and
Technology Agency to discuss U.S. energy projects, agreements,
and Memorandums of Understanding with the Japanese government,
academia, and private sector.

According to the head of the DOE Tokyo office, staff do not
experience problems obtaining technical information in Japan.

Defense Technology Office

The Defense Technology Office (DTO) is part of the Mutual Defense
Assistance Office in the American Embassy in Tokyo. The Mutual
Defense Assistance Office is responsible for maintaining liaison
among Department of Defense (DOD) components in Japan, the
appropriate elements of the U.S. diplomatic mission, and Japanese
defense organizations.(4)  DTO'S mission is to (1) identify
Japanese technology with potential defense applications and
disseminate this information to DOD organizations, laboratories,
and defense contractors; (2) facilitate DOD access to Japanese
technology through government-to-government and government-to-
industry liaison; and (3) pursue cooperative arrangements with
the Japan Defense Agency to develop technologies that benefit
both U.S. and Japanese defense acquisition programs. DTO also
orally or via memorandums provides the information that it
collects to the Departments of Commerce and State. DTO relies
upon these agencies to identify potential commercial technology
applications and, where appropriate, to pass this information on
to industry.

     4. DOD 5105.38-M.

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page 26

DTO'S fiscal year 1992 budget was $301,000. The Mutual Defense
Assistance Office has 17 total staff, 4 of which are DTO staff.
The DTO staff includes a director and one staff from each of the
three services. These staff are primarily program managers that
have little technical expertise yet maintain industry contacts.
Two of the staff have Japanese language capabilities, and the
Mutual Defense Assistance Office has a full-time interpreter. For
technical expertise, DTO staff depend on visiting experts from
DOD organizations and scientists from the three services'
research offices in Tokyo. There is a Memorandum of
Understanding, dated March 6, 1992, between these offices to
promote cooperation among them and provide supplemental technical
support to DTO when needed. 

DTO uses the list of technologies identified in the annual
Defense Critical Technologies Plan as well as other DOD technical
assessments to determine what technologies to monitor.
Information is primarily collected by (1) doing technology
assessments(5)  to determine Japan's technical progress and
direction and (2) performing database investigations to monitor
technical developments. DTO also facilitates technology flow back
to the United States through coproduction Memorandums of
Understanding and the Joint Military Technology Commission.(6)

     5. These assessments are developed by visiting experts from
     DOD organizations and staff from the Office of Naval
     Research - Asia, the Army Research Office - Far East, and
     the Asian Office of Aerospace Research and Development.

     6. The Joint Military Technology Commission serves as the
     means for consultations between the U.S. and Japanese
     governments in identifying Japanese technologies with
     military applications that can be transferred to the United
     States. The Japanese government component of the Commission
     has the authority to grant the approval of exports of
     military technology to the United States. Commission
     membership includes Japan's Ministry of Foreign Affairs,
     MITI, and the Japan Defense Agency as well as the U.S.
     Mutual Defense Assistance Office and the U.S. Embassy. No
     military equipment is exported.

According to DTO officials, DTO has several difficulties in
collecting and disseminating foreign technology information.
DTO'S director told us that it is difficult to find a U.S.
sponsor that can incorporate the Japanese technologies into their
operations or products. In addition, DTO officials said that it
is difficult to convince Japanese companies to transfer their
commercial technologies to the United States for military
applications, because they believe the commercial application of
the technology will be classified or restricted, limiting its use
in the commercial sector. However, according to the Mutual
Defense Assistance Office's chief, typically only the military
application of the technology is classified. DTO'S director also
said that technical skill and expertise are needed to recognize
valuable technologies with the potential to be integrated into a
U.S. company's products or processes.

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page 27

Defense Attache Office 

The Defense Attache Office in the American Embassy in Tokyo is a
diplomatically accredited triservice DOD organization. The
Defense Attache Office's mission is to monitor and report on the
capabilities of the Japanese military defense forces.
Specifically, this includes (1) collecting and reporting military
and military-political information, (2) representing DOD and the
U.S. military in Japan, and (3) advising the Ambassador on
military matters. The Defense Attache Office also does some
liaison and coordination work, hosting U.S. DOD and military
visitors in Japan.

The Defense Attache Office's budget, which is provided by DOD
rather than the State Department, was $632,600 for fiscal year
1992. The five diplomatically accredited military/defense
attaches do not have technical backgrounds but have some degree
of Japanese language capability. There are also 12 administrative
personnel in the office in Tokyo, 7 of which are foreign service
nationals. The defense attaches are overt military information
collectors. The Defense Attache told us that the small staff is
fully occupied in addressing its primary collection mission.

The Defense Attache Office is tasked by DOD to collect both
general and specific technology information. However, the office
primarily monitors Japanese defense policy, strategy, and
operations as opposed to raw technology information. The defense
attaches collect this information through open sources, such as
Japanese newspapers or government publications, as well as
frequent meetings with Japan Defense Agency and military
officials. The defense attaches do not analyze the information
that they obtain, but report the information directly to DOD. All
information is classified.
According to Defense Attache Office staff, they have experienced
difficulties in collecting technology information in Japan due to
language differences and cultural reticence. They said that
although language is not an insurmountable barrier to obtaining
information, because much of the Japanese information is
published in English, Japanese language capability increases an
individual's access to information. In addition, because of the
Japanese culture, the staff must be known and accepted by their
Japanese contacts and establish some credibility before the
Japanese will provide information.

Office of Naval Research - Asia

The Office of Naval Research established an Asian Office
(ONRASIA) to study, evaluate, assess, and report on basic
scientific developments of interest to the Navy in Japan and
other Asian countries. ONRASIA,

---------
page 28

co-located in Hardy Barracks in Tokyo with the other two
services' research offices, is responsible for (1) gaining
insight into foreign research and development and projecting
future objectives of U.S. competitors, (2) understanding foreign
technical motivation and goals, (3) producing timely technology
assessments and evaluations, (4) providing contacts/linkages
between U.S. and foreign science and technology communities, and
(6) fostering technology transfer.

ONRASIA's budget for fiscal year 1992 was approximately $1
million, including salaries, travel expenses, and office support
services. ONRASIA currently has four liaison scientists, who are
assigned to the office for up to 3 years; one visiting scientist;
and five support staff. The liaison scientists are required to be
active senior researchers from government, industry, or academia
with an excellent publication record and good contacts in Japan
and other Asian countries. One of the scientists has Japanese
language capabilities.

The scientists determine what technology information to collect
based on their personal expertise in a technical area. In
addition, occasionally, specific information is requested by the
Office of Naval Research or another customer. The scientists
primarily collect foreign technology information by (1) visiting
laboratories and individual scientists, (2) attending technical
meetings and conferences, (3) organizing and/or sponsoring
science and technology workshops, (4) monitoring literature, and
(5) providing direct linkages between the Navy and U.S. science
community and those in Japan and other Asian countries. Some of
the information is analyzed/assessed by the scientists and is
disseminated to customers in the Office of Naval Research, DOD
laboratories, and other DOD research organizations. The
scientists develop a list of customers in their own individual
areas of expertise, which may include users in industry and
academia. Information is disseminated via (1) the Office of Naval
Research's quarterly publication, the Scientific Information
Bulletin; (2) electronic mail; (3) personal communications, such
as letters, facsimile, or telephone calls; (4) meetings and
workshops; and (5) papers, articles, and special reports.

The Office of Naval Research evaluates the effectiveness of the
science and technology information collected by its foreign
offices in Europe and Asia as an integral part of its annual
review of one-third of the organization's technical programs.
Information collected by the foreign offices is evaluated based
on feedback from Office of Naval Research scientific officers as
well as customers of the information in Navy

---------
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laboratories and the U.S. technical community. The Office of
Naval Research also performed a one-time peer review of its
foreign offices in 1992 to evaluate the effectiveness of these
offices' science and technology information collection efforts.
As a result of this review, the Office of Naval Research is
restructuring its foreign offices to improve the value of the
information to the customer. For example, both the technical
areas to be assessed as well as how the assessments are done will
be determined by Navy program managers responsible for the
relevant technical areas. In addition, an Office of Naval
Research official told us that the office plans to use a wide
range of scientists and engineers from Navy laboratories,
industry, and academia to perform these focused assessments. 

According to ONRASIA officials, their military affiliation is
somewhat of a problem in collecting technology information in
Japan because of the Japanese reluctance, especially those in
academia, to share information with military officials. Efforts
to overcome this problem include staffing the office with well-
known scientists who have published several papers and have
established good contacts in Japan. Other problems experienced by
ONRASIA scientists include outdated monitoring and dissemination
technologies or methods, lack of Japanese language skills, and
lack of understanding of the Japanese culture.

Army Research Office - Far East

The Army Research Office established a Far East office (ARO-FE)
to collect information and report on the latest developments in
basic science relating to the particular needs of the Army.
Located at Hardy Barracks in Tokyo, ARO-FE is responsible for (1)
identifying major technology developments, trends, and
opportunities in Japan and other Asian countries and
disseminating this information to Army scientists and other DOD
personnel; (2) promoting the exchange of information and
collaboration between Army scientists and scientists in Japan and
other Asian countries; (3) supporting Army laboratories and
scientists by arranging for Army scientists to visit foreign
laboratories and sponsoring technical meetings, conferences, and
workshops of interest to the Army's research and development
program objectives; (4) working closely with other U.S.
organizations that collect and disseminate foreign technology
information; and (6) providing technical support to DTO.

ARO-FE'S operating budget was about $600,000 in fiscal year 1992.
The office currently has one liaison scientist who has some
Japanese language capability. ARO-FE also invites scientists to
visit the office and uses ONRASIA's support staff. According to
ARO-FE's liaison scientist, the Army

---------
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Research Office plans to increase ARO-FE staff between 1993 and
1995 to four liaison scientists, three to five rotational
scientists, and one support staff.

The ARO-FE liaison scientist informally determines what
technology information to collect based on his past experience
working in Army laboratories, biannual visits to these
laboratories, and specific requests from Army scientists.
Information is primarily collected by (1) visiting Japanese
laboratories, (2) participating in or organizing/sponsoring
international symposia/workshops, (3) sponsoring and facilitating
researcher exchanges, (4) sponsoring collaborative programs and
special studies with other U.S. organizations such as ONRASIA,
and (5) monitoring technical literature. The scientist analyzes
the information that is collected and provides a technical
assessment to Army laboratories, other DOD organizations, and
industry via electronic mail, facsimile, or regular mail. The
scientist also collaborates with ONRASIA scientists on articles
published in the Office of Naval Research's Scientific
Information Bulletin.

The ARO-FE scientist told us he faces problems getting access to
Japanese technology information, because many Japanese academics
and some government officials are unwilling to share information
with military researchers. He also said that this is a barrier in
transferring dual-use technology to the United States. In
addition, the scientist said that he has difficulty persuading
U.S. scientists to visit Japan, because (1) Japanese laboratories
are not well regarded in the United States and (2) DOD scientists
are not encouraged to work in them.

Asian Office of Aerospace Research and Development

The Air Force Office of Scientific Research has recently
reestablished an office in Japan, the Asian Office of Aerospace
Research and Development (AOARD), to collect information on basic
and applied science and technology developments related to Air
Force needs and disseminate this information to Air Force
laboratories and other DOD organizations. Specifically, the
office's mission includes (1) monitoring science and technology
activities in Japan and other Asian countries; (2) assessing
defense-critical technologies, within its capabilities; and (3)
facilitating the transfer of appropriate science and technology
to Air Force laboratories. Secondarily, AOARD plans to (1) act as
a liaison to the Air Force and DOD science communities, (2)
coordinate and facilitate visits with Air Force personnel, and
(3) provide technical support to DTO.

---------
page 31

The upper bounds of AOARD's budget was $1 million in fiscal year
1992, including mission and support funds; however, AOARD's
director told us that he expected to use only a fraction of that
figure, because all planned staff had not been hired. The office
is currently staffed with three scientists/engineers who have
strong Japanese language skills and extensive technical
experience. The director is authorized to hire an additional
scientist/engineer and an administrative staff person. The
director told us that he would also like to obtain authorization
to hire two Japanese nationals to serve in secretarial and
technical support positions. 

AOARD's planned approach to the collection of foreign technology
information includes (1) participating in selected conferences
and workshops; (2) visiting academic, government, and industry
laboratories; and (3) helping to initiate cooperative programs
between U.S. and Japanese research and development organizations
in key technical defense areas. AOARD staff maintain regular
contact with U.S. aerospace industry representatives in Japan.
AOARD reports to the Air Force Office of Scientific Research on a
biweekly basis and provides periodical topical reports, synopses
of conferences, and observations on Japanese government and
corporate research and development policies. The Air Force Office
of Scientific Research plans to begin evaluating AOARD's
effectiveness late this year based on the technical excellence of
the information that is collected and its relevance to customers'
mission needs. The effectiveness of the information will be
determined by top leaders from the Office of Scientific Research
and Air Force laboratory chief scientists.

AOARD's director told us that he has experienced several problems
in recruiting scientists for the new office, largely because of
the different culture and language. Although the director said
that a lack of Japanese language skills is not a major barrier to
collecting technology information in Japan since many Japanese
speak English, he believes that language skills would clearly
enhance the scientists' ability to carry out their mission. The
director also told us that the anti-military sentiment in Japan
could be overcome if the information collector is an expert and
has established a name in the scientific community.
Army Science and Technology Center Far East

The Army Science and Technology Center Far East, located at
Yokota Air Force Base in Tokyo, Japan, is part of the Army
Materiel Command. The Center is responsible for supporting DOD's
research and development and acquisition programs, with a
particular emphasis on scientific and

---------
page 32

technical developments of interest to the U.S. Army and national
research and development and materiel acquisition management
organizations. 

The Science and Technology Center's budget for fiscal year 1992
was $1.06 million. The Center currently has 1 commanding officer
and 32 civilian and military staff, including 13 technical staff
and 19 administrative support staff; about half are Japanese
nationals who serve as liaison coordinators and interpreters.
Technical staff, who are experts with an advanced degree in their
field and generally serve a 5-year tour of duty, are paired off
with Japanese nationals who have been at the Science and
Technology Center for 5 to 10 years. According to Center
officials, the Japanese nationals are the key to obtaining access
to Japanese companies because they provide information on the
Japanese culture and continuity to the Center's staff.

Science and Technology Center staff collect and sometimes
translate information on emerging technologies from countries
throughout the Pacific Rim and disseminate this information to
the services as well as DOD laboratories and other organizations
through reports. Information is collected by (1) monitoring open
sources, such as newspapers, journals, databases, and government
publications; (2) attending symposia, trade shows, and
conferences; and (3) meeting personally with bench-level
scientists in Japanese government and private sector
laboratories. According to Center staff, they report raw data to
DOD since they do not have the time or training to analyze the
information they collect. DOD has a formal feedback process
through which about 16 percent of the Center's reports are
evaluated based on the quality and usefulness of the information
provided.

According to Center staff, although they collect a great deal of
information in Japan, they have experienced problems in obtaining
both basic and applied technical information, since (1) Japanese
university officials will not share basic research information
with military-affiliated personnel and (2) advanced research is
mostly proprietary because it is done primarily in industry
laboratories.

Air Force Detachment 1

Air Force Detachment 1 is located at Yokota Air Force Base in
Tokyo, Japan. Detachment 1 is responsible for collecting
scientific and technical information in the Pacific theater as
well as providing direct support to unified and Air Force
component commanders to satisfy scientific and technical
information requirements of operational units in their theater of

---------
page 33

operations. In addition, Detachment 1 staff (1) collect, assess,
and disseminate information on performance characteristics,
vulnerabilities, and capabilities of foreign aerospace weapon
systems, subsystems, and related support components; (2) evaluate
and provide assessments of trends and projections for
technologies, processes, and products; (3) prepare, train, and
maintain readiness to meet wartime mission responsibilities; and
(4) provide planning assistance, coordination, and support to
operational commands. 

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page 34

Appendix II

U.S.-Sponsored Organizations in the United States

This appendix discusses the efforts of two U.S. government-
sponsored organizations located in the United States to collect
and disseminate Japanese technology information.

The Japanese Technical Evaluation Center

The Japanese Technical Evaluation Center (JTEC)(1)  is funded by
the National Science Foundation (NSF), in cooperation with other
agencies, to assess the status of trends of Japanese research and
development in selected technologies, such as advanced computing,
high temperature superconductivity, and material handling. Other
agencies, such as the Advanced Research Projects Agency, the
Office of Naval Research, the Department of Energy, and the
National Aeronautics and Space Administration, have funded or
cofunded JTEC studies through NSF. JTEC's mission is to (1)
assess whether Japan is ahead of or behind the United States in
certain technologies and (2) identify Japanese research and
development strengths as targets for technology transfer back to
the United States as well as opportunities for cooperation
between the two countries.

     1. JTEC is part of Loyola College's (Maryland) global
     initiative, the International Technology Research Institute.
     The Institute oversees (1) JTEC; (2) the World Technology
     Evaluation Center, which assesses the technical capabilities
     of countries in Europe, the former Soviet Union, and Canada;
     and (3) the Transportation Technology Evaluation Center
     funded by the U.S. Department of Transportation.

JTEC operates under a standard research grant from NSF, and its
grant fund have averaged about $844,000 per year over the past
several years. This spending level is expected to remain roughly
constant through fiscal year 1994. JTEC has four full-time staff,
but the NSF provides additional support staff as well as meeting
facilities.

For the most part, JTEC has competed for funds from individual
program offices throughout the government that need foreign
technology information to run their programs and have a budget to
pay for the information. This guarantees that the results
produced have ready customers, and, as an additional benefit,
many other users get the same information.

The process of identifying technologies for JTEC studies is
carried out in a bottom-up fashion. In many cases, program
officers in various research and development agencies throughout
the government come to JTEC with proposals or suggestions for
studies. These proposals are considered by JTEC and NSF, in
conjunction with an advisory body of outside experts, to
determine which requests meet JTEC criteria. About three in four
proposed

---------
page 35

studies are done because they are appropriate for the JTEC
format. JTEC then puts together a small group of potential
sponsors who try to agree on the scope of the study and identify
a panel chair. 

JTEC's technical assessments are performed by panels of six to
nine U.S. technical experts in each area. Panel members, which
are selected from industry, academia, and government, are leading
authorities in the field, technically active, and knowledgeable
about Japanese and U.S. research programs. Panelists spend about
1 month reviewing technical literature on the subject and then
spend an intensive week conducting extensive tours of Japanese
laboratories. According to JTEC and NSF officials, their
organizations' reputation and good standing with the Japanese
allow JTEC panels good access to Japanese government and private
sector laboratories.

Although it has been suggested that JTEC maintain a permanent
office in Japan to monitor day-to-day developments in Japanese
technology and assist in planning JTEC panel site visits, JTEC
staff told us that (1) this could easily cost millions of dollars
and (2) it is unlikely that JTEC could recruit the high caliber
of people that serve on JTEC panels to serve in such an office,
even for short periods of time. In addition, JTEC staff said that
they maintain a close relationship with the Office of Naval
Research's Asian Office, which maintains a permanent presence in
Tokyo.

Within 6 to 8 weeks after the site visits, the panels present
draft conclusions at a public workshop in Washington, D.C. JTEC
clients, policymakers, press, and a targeted list of industry
representatives and academic researchers are invited to attend
these workshops.(2)  In the months following the workshop,
panelists draft the final report, which is reviewed by JTEC and
NSF as well as by the Japanese hosts. JTEC's Senior Advisor told
us that this review process to ensure accuracy makes it difficult
to get reports out more quickly. A JTEC official said that some
JTEC sponsors have found the workshop more valuable than the
final report, primarily because of its timeliness. The report is
given to workshop attendees, sponsors, panelists, and the
Japanese hosts. Until recently, JTEC had 800 copies printed of
each report. JTEC distributed about 200 of these to a
preestablished list of interested clients and sent about 100 for
distribution through the National Technical Information Service.
The remaining copies of the report are available to interested
parties through JTEC.

     2. Two of the workshops have been videotaped and are
     available for purchase through JTEC. These include the JTEC
     workshops on (1) Japanese Space Robotics and (2) Advanced
     Manufacturing Technology for Polymer Composite Structures in
     Japan.

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Overall, support for JTEC and NSF as its lead agency has been
positive, but some U.S. officials have criticized several aspects
of the program. According to a senior official in the American
Embassy in Tokyo, JTEC provides quality studies on cutting-edge
technologies and has obtained good access to Japanese
laboratories; however, its dissemination is limited. In addition,
some agency officials have indicated that although JTEC studies
appear to be affordable when they are cofunded by a few agencies,
they can be expensive for one agency to fund. For example, an Air
Force official told us that his organization chose not to use
JTEC because it was too expensive to fund (on average about
$180,000 per study) and not timely enough (on average about 1.5
years per study). According to JTEC'S Senior Advisor, JTEC
studies cost less than comparable studies performed by the
National Academy of Sciences or various private sector
organizations. In addition, he told us that about 50 percent of
the cost of a JTEC study includes (1) the cost of sending panel
members to Japan for a week and (2) the honoraria paid to the
panel members. JTEC feels that both of these are necessary costs,
because they contribute to the high caliber of the panel members
and quality of the resulting information. 

JTEC and NSF held a workshop in May 1991(3)  to (1) develop a
better understanding of client needs, (2) establish relationships
between government agencies that need this type of information,
(3) strengthen JTEC and other programs to better serve the
science and technology community, and (4) define better methods
for information dissemination. As a result, JTEC has efforts
underway to speed up report processing and increase the
dissemination of its reports to government, academia, and
industry. For example, JTEC has developed a list of audiences and
potential audiences for its information and is experimenting with
different promotion ideas for their workshops. Through
substantial investments in advertising and increasing their
mailing lists, JTEC has recently increased attendance at
workshops to over 200, compared to last year when it rarely
exceeded 100. In addition, JTEC has increased its print run to
1,000 on its latest report on knowledge-based systems, compared
to 300 2 years ago, and has distributed over 3,000 executive
summaries for each of its 3 more recent reports.(4)  JTEC is
examining the possibility of increasing the distribution of its
executive summaries by using a professional society or commercial
publisher.

     3. According to the Senior Advisor, JTEC is currently
     undertaking a critical review of various aspects of the JTEC
     program as a follow on to this workshop and the 1992
     NSF-supported review, "Study on the Distribution and Use of
     JTEC- Related Information."

     4. Display Technologies in Japan (June 1992); Material
     Handling in Japan (March 1993); and Satellite Communications
     in Japan (July 1993).

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SEMATECH

SEMATECH is a research and development consortium of U.S.
semiconductor manufacturing firms that receives one-half of its
funds from the U.S. government.(5)  SEMATECH has established the
Competitive Analysis Group within the consortium for collecting,
analyzing, translating and disseminating foreign, primarily
Pacific Rim, technology information to its internal organization
as well as its member companies.(6)  SEMATECH's Competitive
Analysis Group has 10 staff members; 1 member fluently speaks and
reads Japanese. The other staff members have engineering
backgrounds. According to a staff member, since this office
collects detailed technical information, an engineering
background is essential to understand and analyze the data. In
addition, the staff member told us that foreign language skills
are also essential since much of the best Japanese technical
information is not available in English.

     5. See our most recent report on SEMATECH, Federal Research:
     SEMATECH's Technological Progress and Proposed R&D Program
     (GAO/RCED-92-223BR, July 16, 1992).

     6. Each of SEMATECH's member companies has a Competitive
     Analysis Group that meets quarterly with SEMATECH's group.
     According to a SEMATECH staff member, this network is
     effective in coordinating and disseminating foreign
     technology information.

Although the department monitors all available foreign data, its
staff discusses specific needs with its internal groups and works
on joint research projects with its member companies. Information
is primarily collected by monitoring databases, newspapers,
magazines, and government reports as well as periodically
visiting Japan and other Asian countries to meet with foreign
officials and attend international technical symposia and
conferences. According to a staff member, if SEMATECH had an
office in the Far East, the Group could maintain an ongoing
relationship with information sources and, therefore, more
effectively collect technology information. However, establishing
an office overseas is cost prohibitive, and SEMATECH believes
that many of its member companies already have a sufficient
presence in Asia.

Based on the needs identified, the office provides timely
information regarding (1) what the competition is doing; (2)
where the competitors are going with a technology, process, or
product; and (3) what steps should be taken to remain competitive
in that technology, process, or product. This information is
disseminated to projects within SEMATECH and member companies
through a variety of reporting methods, including reports,
analyses, meetings, and translations. According to a SEMATECH
official, this information can change the way SEMATECH project
leaders and member companies think about their competition and
plan their research and development strategies.

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Appendix III 

Scope and Methodology

In reviewing U.S. and Japanese organizations that collect and
disseminate foreign technology information, we interviewed and
obtained documents from knowledgeable officials at the
Departments of Defense, State, and Commerce. In Tokyo, Japan, we
interviewed over 90 representatives of 27 U.S. and Japanese
civilian government, defense, and private sector organizations
that collect and disseminate foreign technology information. We
selected these organizations based on information obtained from
knowledgeable U.S. officials and industry representatives. We
interviewed 10 of the 11 U.S. government organizations in Japan
that monitor and disseminate foreign technology information.(1) 
We also reviewed a document produced by the Central Intelligence
Agency, but did not include the Agency's activities in our
review.

     1. We did not interview officials of the Naval Science and
     Technical Group Far East due to time constraints.

We assessed the efforts of the U.S. and Japanese organizations
that we met with based on five factors: amount of funds, number
of staff, official mission, relationship with home government,
and efforts to coordinate with other organizations. The U.S. and
Japanese companies that we interviewed did not provide specific
funding information.

We also interviewed representatives of several U.S. consulting
companies that monitor Japanese technology information as well as
a university professor that has written extensively on Japanese
technological and industrial developments. We attended a
conference entitled "Targeting Research and Development for
Competitive Advantage" that was sponsored by the American Foreign
Service Association. In addition, we interviewed (1) a scientist
at the Los Alamos National Laboratory that worked at Japan's
International Superconductivity Technology Center under an
agreement between these two organizations and (2) officials from
The National Science Foundation, the Japanese Technical
Evaluation Center (JTEC), and the Semiconductor Manufacturing
Technology consortium that are responsible for foreign technology
information collection and dissemination. We also attended a JTEC
workshop.

We interviewed officials from the following U.S. and Japanese
organizations in Japan

U.S. Organizations

     -    American Electronics Association 
     -    Air Force Detachment 1
     -    Army Research Office, Far East

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     -    Army Science and Technology Center, Far East 
     -    Army Science and Technology Translation Unit
     -    Asian Office of Aerospace Research and Development 
     -    Defense Attache Office 
     -    Department of Energy
     -    Environment, Science, and Technology Office
     -    Mutual Defense Assistance Office, Defense Technology 
          Office
     -    National Science Foundation, Tokyo Regional Office
     -    Office of Naval Research Asia
     -    U.S. corporation(2) 
     -    U.S. and Foreign Commercial Service

     2. Officials from the U.S. corporation we interviewed agreed
     to provide information on the condition that their company
     not be named in our report.

Japanese Organizations

     -    The Institute of Physical and Chemical Research
     -    International Superconductivity Technology Center
     -    Japan Electronics Industry Development Association
     -    Japan External Trade Organization
     -    Japan Information Center for Science and Technology
     -    Japan Key Technology Center
     -    Japan Research and Development Corporation 
     -    Ministry of International Trade and Industry
     -    Mitsubishi Research Institute
     -    National Center for Science and Information Systems 
     -    New Energy and Industrial Technology Development
          Organization
     -    Nippon Electronics Company
     -    Science and Technology Agency

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Appendix IV

Major Contributors to This Report

National Security and International Affairs Division, Washington,
D.C.

     Kevin Tansey, Assistant Director 
     Rosa M. Johnson, Evaluator-in-Charge 
     Erin Slonaker Noel, Evaluator

Far East Office

     Conor B. O'Brien, Evaluator