Subsidies: Japan vs USA - GreenHybrid

bwilson4web · #1 (**permalink**) 04-04-2008, 04:13 AM

http://www.businessweek.com/autos/au...ers_jim_p.html

Quote:

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In a wide-ranging interview with Businessweek editors and two correspondents that also included Chrysler LLC CEO Robert Nardelli and vice chairman Tom Lasorda, Press said on-the-record, “The Japanese government paid for 100% of the development of the battery and hybrid system that went into the Toyota Prius.” He did not specify the forms those investments took. But the statement contradicted those made by Press when he was a Toyota employee.

Toyota refutes Press’s claim. “I can say 100 per cent that Toyota received absolutely no support - no money, no grants - from the Japanese government for the development of the Prius,” said Toyota’s Tokyo-based spokesman Paul Nolasco.

In a statement by Press released through a spokesperson, he doesn’t refute what he said to BusinessWeek on March 20. “The Japanese government strongly supported R & D (research and development) investment in battery development, and the Prius and other Japanese models benefited from that investment.” He cited this “investment” as an example of cooperation for the U.S. government and industry. “Instead of being at odds with each other over CAFE [Corporate Average Fuel Economy] and other policies that put U.S. companies at a disadvantage, the two should work together to find technological improvements that help give U.S. companies a competitive advantage,” said Press.
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I find this interesting because some of the best technical reports on Prius and Japanese hybrids came from Battelle Labs and the USA Department of Energy. There is a common assumption that the Japanese support similar, government backed research but I don't know to what extent that is true. Certainly both countries provide tax advantages to corporate research. But certainly, I find nothing wrong with government and industry collaboration in the labs.

In one respect, this is an article about 'degree' having nothing to do with right or wrong. Apparently the choices are all or nothing. But given my work history has spanned many decades of both military and NASA contracts, it is something I've never had a problem with because I and those I have worked with have shared our contributions with all. One of the ironies of life has been the degree that secrecy has and remains poison to technical advancement.

Bob Wilson

Whiterook · #2 (**permalink**) 04-04-2008, 06:07 AM

I don't know exactly how one might unwind the interactions between government and industry. Additionally, another big piece of the picture is the relationship of the educational system to R&D. Universities (and Museum research departments) receive some funding from corporate and government (National Science Foundation, etc.) sources. So, in the end, R&D efforts in industrial societies are built upon complex interactions between the private sector, government and the university system.

KenG · #3 (**permalink**) 04-05-2008, 08:14 AM

It's very difficult to compare all the complex government support of industry throughout the world. However, there are two very obvious differences. In the US, R&D that is publicly funded must be published and made public domain. With the exception of security and defense work, this is available to foreign countries. Most other countries do not do this. Also, some countries (Japan and Korea come to mind) have artificially put barriers up to imports, allowing higher profits to be made at home, and allowing exports to be sold at lower prices.