Excerpt from National Champion Strategy in Technology Development In classical economics, competition is favored over monopoly even in technology development, because the former stimulates most efficient allocation of resources whereas the latter permits under investment in addition to production restriction and higher prices. However, too much competition may dilute and Spread too thinly the limited resources available and preclude the formation of critical mass necessary to surpass some thresholds of bigger thrusts. It may also result in redundant and thus wasteful efforts, though redundancy may yield a larger number of solution routes and thus increase the likelihood of success.2 Maintaining that the static inefficiencies of monopolies are more than counterbalanced by their greater innovative capabilities, Schumpeter advocates that large, monopolistic firms undertake innovation,3 the driving force and the necessary consequence of capitalism.4 National champion strategy in some sense follows Schumpeter's argument. It internalizes cooperation which may otherwise be difficult to achieve across formal organizational boundaries, and emphasizes international country competition instead of intra-national company competition. But it seems to be also unable to completely escape the rule in classic economics. Therefore the strategy of multiple champions is suggested as opposed to that of single champion under certain circumstances. For this strategic issue, the investigation of real world experience in several important technological fields may shed light on some of its critical aspects. In the following discussion, only cases with profound technological implications will be used. Therefore cases like the establishment of a large integrated steel mill, which iscertainly a national champion in most countries but mainly for the domestic supply of basic materials, will thus be excluded. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.