Book reviews

bution to productivity improvement in the public sector. A notable exception is the paper by Lee Wing, Executive Director of the North Carolina Agency for Public Telecommunications, des- cribing that state’s efforts to improve government operations through the increased use of telecommunications and information technologies. Wing emphasizes the important interactions between technology, organizational structure, and the kind of services that are to be provided. Her balanced approach provides a welcome relief from the overoptimistic projections often made by enthusiasts for the new technologies.

Overall, the papers in this volume suggest that we know relatively little about the influence of telecommuni-

cations on productivity. Most (but not all!) of those working in the field believe that advances in telecommuni- cations and information technology will lead to productivity increases. Yet we are still a long way from discerning the important links and their magni- tudes. Moreover, many approaches still appear to be technology-driven rather than user-oriented. Mrs Wing’s conclusion about state governments applies to other economic sectors as well: ‘You have to do your homework before you can begin to make inroads on increasing . efficiency through telecommunications’.

Walter S. Baer, Los Angeles, CA, USA

Interaction of policies and strategies

INNOVATION, COMPETITION, AND GOVERNMENT POLICY IN THE SEMICONDUCTOR INDUSTRY

by R.W. Wilson, P.K. Ashton and T.P. Egan

Lexington Books, MA, USA, 1980,220 pp, f 14.00

Interest in the activities and perform- ance of the semiconductor industry has been high ever since the industry’s rapid growth became apparent and the impact of its products became wide- spread. There exists a long list of notable studies, including many doc- toral theses, of this industry, examining such aspects as its history. the diffusion of its technology, its innovative per- formance and the influence of the military.

This book, arising from a research consultancy contract funded by the US government, can be seen as a justifiable addition to the list, for it attempts to show how several of these aspects interact in a way that sheds light on government policies not only for the semiconductor industry but also for other technologically innovative industries.

For telecommunications, therefore, this book’s importance lies in its ability

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to indicate the relationships between government policies, innovative beha- viour, company strategies and indus- trial performance. Furthermore, with an emphasis on these interactions as part of a general framework for policy analysis, the book treats the semi- conductor industry as just the first case study in what could be a useful series.

An overview of the relevant govern- ment policies is provided initially, along with a sample of the type of searching questions which ‘will help policy makers to determine how policy affects variables that influence the decision to innovate, particularly the rewards and risks of innovating’ (~7). A commendable aim, but if only we could be sure that policy makers asked such questions!

Technological and environmental aspects of the semiconductor industry are then briefly outlined as an intro- duction to the industry. In the next chapter, on the company character- istics primarily affecting innovative behaviour, the authors’ findings rein- force many previous innovation studies’ conclusions, inasmuch as the most influential factors were found to be: managerial commitment towards innovation; a proper balance between organizational flexibility and manage- ment control; the degree of risk taking;

capital availability; and R&D funding. Hardly original, but what is more interesting is the discussion that follows on the policy implications of these findings. Emphasis here is concen- trated on policies for risk reduction, increased personnel mobility and tax incentives.

Company strategies influencing innovation and competition are con- sidered next. Product, pricing, mar- keting and distribution strategies are examined within various semiconduc- tor product areas. Of particular interest is the discussion of vertical integration strategies, for several notable telecom- munications companies are also involved in semiconductor manufac- ture. The key conclusion seems to be the desirability of strategic diversity within individual firms not only in terms of markets and technologies but also in terms of incorporting dynamic responses to varying product cycles. On this latter point for example, one company found the order of strategic priorities for new products to be distinct product features followed by delivery and marketing, reputation and past performance, and price. For older products, on the other hand, price was ranked first followed by delivery. features and marketing.

Major innovation

A great deal of statistical analysis is used to indicate the influence of com- pany strategies on industrial perform- ance, with the result that these com- panies that pursued ‘major innovation’ strategies were shown to return the best performance results. But again, the discussion on policy implications is more illuminating for the wider audi- ence. The comments on government policies towards foreign influences and company mergers are particularly rele- vant to the telecommunications industry. The authors argue that

federal policy should concern itself with putting US firms on equal footing with foreign firms in terms of capital availability and incentives and support for R&D.’ (~138).

The final chapter on policy analysis is perhaps the most seminal as well as the most valuable to those outside the semiconductor industry. Two impor-

TELECOMMUNICATIONS POLICY December 1981

tant findings are particularly well emphasized. The first concerns the differential impact of government policies on companies pursuing differ- ent strategies. The second refers to the interdepenency and interaction be- tween the various government policies. A detailed analysis of the relevant policies and their effects is undertaken in the following areas - procurement, R&D funding, Antitrust, trade, tax, and manpower - and these should en- lighten most readers. In addition, a brief record of company disenchant- ment with policies, especially the more recent ones, should provide food for thought for policy makers and innovators alike.

While the book concentrates on the

Introduction to

ELECTRONIC COMMUNICATION : TECHNOLOGY AND IMPACTS

edited by Madeline M. Henderson and Marcia J. MacNaughton

Westview Press, Boulder, CO, 1981,

173PP

I generally shy away from books which are based on the proceedings of tele- communication conferences. Too often they are expensive, extravagantly titled, poorly edited, erratic in their coverage, highly variable in the depth of their treatments, redundant and out of date. On the basis of my one ex- perience of editing such a volume (never to be repeated), I can only sympathize with editors, while regret- ting the economics of book publishing and the poor discipline of too many contributors.

The proceedings of a symposium held by the American Association for the Advancement of Science in Janu- ary 1979 were a welcome relief. True, the book suffers from several of the problems mentioned above, but its merits clearly outweigh its faults. Since most of the component papers assume little prior knowledge, it will be useful to those, students and others, who are entering the field. It is not a book for

US scene, the major policy topics, if not the instruments of policy, will be much the same in other Western countries. But in concentrating on US companies in their own country. the book minimizes the vitally important international dimension of semi- conductors. Indeed. for many technologically-advanced industries, including semiconductors. telecom- munications, informatics, etc. it is, increasingly, the international arena that one must look to for policies for promotion, coordination and control.

Keith Dickson, Technology Policy Unit,

University of As!on, Birmingham, UK

electronic communication those who are already well abreast of the literature.

The symposium dealt primarily with the communication of information in the form of text and data. Part 1 is intended to lay the groundwork for reviewing current and emerging tech- nologies. Part 2 is devoted to a review of early experiences of several groups of users in the EIES computer con- ferencing system. Finally, Part 3 is concerned with a few of the topics which arise in assessing the social impact of the use of such technologies and developing policy.

The real strength of Part 1 is a review of data communication systems by Ira W. Cotton. In a few well written pages, he ranges over how the technology works, some regulatory history, and ways in which users should consider the alternatives open to them. This is fol- lowed by a paper on the communica- tion of geophysical data, about lOI5 bits in 1979, from sensors to a few thousand primary users. It raises the interesting dilemma that new technological deve- lopments in the geophysical part of the system are producing data more rapidly than the advancing state of the art of telecommunications can accommo- date.

The last contribution to Part 1 deals with teletext, videotex and a science

TELECOMMUNICATIONS POLICY December 1981

Book reviews

magazine on Prestel. With the subse- quent failure of Prestel in the UK residential market, the paper has. un- fortunately, been overtaken by events.

Part 2 is devoted entirely to com- puter conferencing and takes up almost half the book. It is based on a research programme, sponsored by the US National Science Foundation. in which groups within a number of research communities experimented with the use of the Electronic Information Ex- change System (EIES). At the time of the symposium. the research pro- gramme was far from complete. What we are offered is a collection of the reactions and experiences of users. researchers and designers at an interim point.

The opening paper, by Roxanne Hiltz. provides an overview of the programme and an assessment based on ‘pre-use’ and ‘three-month follow- up’ data. The closing paper. by Murray Turoff. offers us the views of the de- signer of the EIES system in the light of experience to date. In between are seven papers. each describing progress in one of the constituent trials. Each is written by the leader(s) of the trial in question. For five trials, they come from the user communities: in the other two cases, the authors were professional designer-facilitators. Peter and Trudy Johnson-Lenz.

Readers concerned with the difficult problems of implementation and evo- lutionary design of new services will find Part 2 an interesting and useful record of the frustrations and hopes. sucesses and failures, which character- ize such work. Though the redundancy is somewhat irritating, this is the price paid for the authenticity of the whole. It is a reasonable price to pay. Readers who are not interested in problems of implementation probably will not read Part 2: more fool they.

Social impact

The last part of the book comprises three interesting papers, which deal with subjects in the confused and con- troversial areas of social impact and policy formation. Kenneth C. Laudon treats problems of accountability in large federal data banks. He points to measurement of performance as a key

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