some major initiatives in the technology/science areas.  The first includes a government partnership with the Big
               Tliree auto manufacturers to develop a new state-of-the art, fuel efficient, automobile engine.  The organization
               and progress of this initiative will be examined in depth.
                        The second major initiative is a recently approved program to help American companies compete with the
               Japanese and Koreans in making advanced flat-panel computer display screens.             The effort goes far beyond
               Sematech, which was limited to developing and sharing production techniques of computer chips.  For flat-panel
               displays, the Clinton administration wants not only to help with research and development but with the construction
               of factories and product marketing.  This is the approach often followed by the Japanese.
                        Additional pieces of the industrial policy n-iix are found in the Clinton adn@nistration's recently announced
               science policy.  Ile policy, the first such restatement of national science goals since the Carter presidency, will
               encourage closer ties between fundamental research and the national interest.  While this initiative is yet so new
               that it has not been operationalized, it may shift emphasis to areas of research with a strong industrial policy payoff
               -- like superconductors.
               State Industrial Policy
                        It is important to point out the strategic role the states have played in industrial policy.  'Me role of the
               states was particularly critical during the Reagan and Bush years when, nationally, the policy of global steering was
               at the forefront.  The failed Rhode Island Compact is the most vivid example of state industrial policy efforts, but
               it hardly stands alone.  Peter Eisinger referred to the emergence of state and local governments as major partners
               in industrial development as The Rise of the Entrepreneurial State (1988).  The entrepreneurial state seeks to
               stimulate the development of technology and identify market opportunities on behalf of private ends.  It is based
               on the concept that jobs are a public good.  The states see themselves as 'company formers' -- stimulating new
               private business formation.  State and local governments promote growth by lowering production costs through
               subsidies of capital and through low taxes, by stimulating new business formation and expansion, and by assisting
               the private sector to develop market opportunities.
                        State industrial policy is shaped by a framework which has been fairly constant over the years.  The
               elements of this framework include public-private partnerships, decentralization, an absence of planning, the
               primacy of capital, and pragmatism.
               C. APPROACH TO BE USED
                        Traditional case study research methodology will be used in this study (see Yin, 1989).  A case study
               protocol will be prepared containing an overview of the research.  The overview will include project objectives and
               case study issues.  Field procedures will be described including access to the cases and sources of information.
               Finally, case study questions will be specified and the potential sources of information for answering each question
               will be identified.
                        Sources, both interview and document, will be identified through snowball sampling.  Initial individuals
               for interview will be identified through articles in newspapers and other periodicals and through the investigator's
               personal contacts.  These initial interviews will lead to other introductions and interviews, etc. -- thus the snowball.
                        The documents and interviews will identify policy plans, implementation, and evaluation.  But beyond that,
               policy orientations (individualistic to conimunitarian) of key policy proponents and decision makers will be
               identified.
                        Traditional case study rules of evidence will be followed.  These include obtaining multiple sources of
                 'dence and ensuring both validity and reliability in the data to maintain the chain of evidence.
               evi
               D. RESEARCH NIATERIALS AND SOURCES
                        The research will utilize three general sources of evidence: published material, unpublished documents,
               and personal interviews.  The published materials are available at any good research library.  Reich and Donahue
               (1985), for example, is an outstanding study of the saving of the Chrysler Corporation.  There are undoubtedly
               also excellent published sources documenting the savings and loan bailout, the restructuring of commercial banking,
               and the history of Sematech.
                        Much of the evidence related to more recent initiatives will be unpublished documents and interviews.
               Thus interviews and document research will be necessary within offices in the Department of Commerce,
               Department of L-abor, and with the President's Council of Economic Advisors.  Access will not be a problem.
               (For example, I appointed Robert Reich to the Editorial Board of Economic- Development Quarterly when I was
               editor.)
               E. ORIGINALITY OF THE PROPOSED STUDY
                        Conceptually, the proposed study is in the same vein as Michael Porter's Competitive AdvantaiZe of
               Nations (1990) except at the national level.  To the best of my knowledge, the conceptualization of the eight
               elements of national industrial policy is unique, although I draw upon Jarboe (1985), Lawrence (1984), Markusen
               (1991), Rich (1992), and others in developing the concepts.  Relating the cornerstones of industrial policy to the
               ideological paradigms is also unique, although the paradigms are from Galbrath (1989).
                        The study should provide focus for a number of recent works which are essentially advocates for various
               industrial policy components.  These include Galbraith, BalancinL, Acts (1989); Harrison, Lean and Mean,(1994);
               Tyson, Who's BashinL, Whom? (1992); Reich, The Work of Nations (1992); and Krugman, Peddliniz Prosl2erity
               (1994).