United States General Accounting Office

GAO Report to the Chairman, Subcommittee

on Defense Technology, Acquisition, and

Industrial Base, Committee on Armed

Services, U.S. Senate

September 1993 FOREIGN

TECHNOLOGY

Collection and

Dissemination of

Japanese Information

Can Be Improved

GAO/NSIAD-93-251

GAO United States

General Accounting Office

Washington, D.C. 20548

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.1

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.)

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

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.

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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 programs3

 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.

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.

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

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 Flying: 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).

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.

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B-254219 

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.

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 an

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.

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B-254219 

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) facilitates

technology diffusion and transfer.

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

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.

Page 4 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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.

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.

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

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.

9

Japan also has networks of related companies and financial institutions, called keiretsu, that provide a

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-39-124, Aug. 9, 1993).

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B-254219 

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.

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.

10Science and Technology: Federal Efforts to Collect and Analyze Information on Foreign Science and

Technology (GAO/T-RCED-93-8).

11Japan-U.S. Economic Issues: Investment, Saving, Technology, and Attitudes, Congressional Research

Service (Feb. 2, 1990).

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B-254219 

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

Page 7 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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 they

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.

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

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.

12Scientific and Technical Information Transfer Between Japan and the United States, Mitsubishi

Research Institute (Oct. 1992).

13Officials 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.

Page 8 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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

Page 9 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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.

Page 10 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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B-254219 

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

Page 12 GAO/NSIAD-93-251 Foreign Technology
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Figure 1: (Cont.)

Note: This does not include U.S. intelligence efforts in Japan.

aPacific Rim countries include Japan and China.

bThese figures were reported by each organization and may not be comparable.

cThe upper bounds of the budget was $1 million if all planned staff were hired. They were not.

dThis figure is an estimated cost for fiscal year 1993. A figure for fiscal year 1992 was unavailable.

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

Page 13 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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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B-254219 

Office of Naval Research on basic science and technology developments in

Japan and other Asian countries. A scientist in this office has developed a

list 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.

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

14Project 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.

15William D. Guns, Catherine P. Ailes, and Damian M. Saccocio, Project STRIDE: S&T Reporting for

Information Dissemination Enhancement, SRI International (STPP-TN-3164-5, Aug. 1988).

16The 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.

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B-254219 

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.

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 of

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 the

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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B-254219 

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.

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,

17The 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.

Page 17 GAO/NSIAD-93-251 Foreign Technology
B-254219 

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

Page 18 GAO/NSIAD-93-251 Foreign Technology
Page 19 GAO/NSIAD-93-251 Foreign Technology
Contents

Letter 1

Appendix I 

U.S. Government

Organizations in

Japan That Collect

and Disseminate

Japanese Technology

Information

22

Environment, Science, and Technology Office 22

National Science Foundation - Tokyo 23

Department of Energy - Tokyo 24

Defense Technology Office 25

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

34

The Japanese Technical Evaluation Center 34

SEMATECH 37

Appendix III 

Scope and

Methodology

38

Appendix IV 

Major Contributors to

This Report

40

Figures Figure 1: U.S. Government Organizations in Japan That Collect

and Disseminate Foreign Technology Information

12

Figure 1: 13

Page 20 GAO/NSIAD-93-251 Foreign Technology
Contents

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

Page 21 GAO/NSIAD-93-251 Foreign Technology
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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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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.

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.

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.

1

According to a State Department official, two positions in the Environment, Science, and Technology

Office are now designated as requiring Japanese language fluency.

2

According to a science officer, they learn what information is important.

Page 23 GAO/NSIAD-93-251 Foreign Technology
Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 scienceand 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 5 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

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

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.

Page 24 GAO/NSIAD-93-251 Foreign Technology
Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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.

Page 25 GAO/NSIAD-93-251 Foreign Technology
Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 assessments5

 to determine Japan’s

technical progress and direction and (2) performing database

investigations to monitor technical developments. DTO also facilitates

technology flowback to the United States through coproduction

Memorandums of Understanding and the Joint Military Technology

Commission.6

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.

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.

Page 26 GAO/NSIAD-93-251 Foreign Technology
Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 $632,500 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,

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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 (5) 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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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 (5) providing technical support to DTO.

ARO-FE’s operating budget was about $500,000 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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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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.

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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 antimilitary 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

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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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 3-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 15 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

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Appendix I 

U.S. Government Organizations in Japan

That Collect and Disseminate Japanese

Technology Information

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.

Page 33 GAO/NSIAD-93-251 Foreign Technology
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.

JTEC operates under a standard research grant from NSF, and its grant funds

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

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.

Page 34 GAO/NSIAD-93-251 Foreign Technology
Appendix II 

U.S.-Sponsored Organizations in the United

States

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.

Page 35 GAO/NSIAD-93-251 Foreign Technology
Appendix II 

U.S.-Sponsored Organizations in the United

States

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 19913 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 most

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).

Page 36 GAO/NSIAD-93-251 Foreign Technology
Appendix II 

U.S.-Sponsored Organizations in the United

States

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.

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.

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.

Page 37 GAO/NSIAD-93-251 Foreign Technology
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.

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

1

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

constraints.

Page 38 GAO/NSIAD-93-251 Foreign Technology
Appendix III 

Scope and Methodology

• 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. corporation2

• U.S. and Foreign Commercial Service

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

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.

Page 39 GAO/NSIAD-93-251 Foreign Technology
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

(396048) Page 40 GAO/NSIAD-93-251 Foreign Technology
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