Managing Future Change: A Perspective for Government, Labor and Industry Interaction

Labor adjustments brought about by the technological revolution suggest that there is a need for interaction between Government and the private sector. One barrier to innovation is the lack of mutual trust between Government and industry and a misunderstanding of what business is about. Tangible factors that constrain innovation are: economic uncertainty, high cost of capital, and reduced Federal spending on research and development. There is no consistent national policy to foster technological innovation by private industry. There is a high positive correlation between R & D and economic growth. Controversy surrounds the Government role in such major commercial ventures as nuclear energy and coal research. Continued studies will improve the climate for Government-industry cooperation. Basic research and long-term exploratory development are both needed. Funding the science and technology base might be reoriented, based on distinctions between defense and space and consumer technology. Industrial initiatives could come in the area of voluntary disclosure to the Government of international agreements.