The new technological strategies of multinationals in the telecommunications sector

Abstract

The industry of telecommunications equipment is considered a strategic high-technology
sector and needs large long-time investments in R&D. During the last three decades,
the technological strategies of multinationals corporations which control 80% of the world
market has been shaped according to two patterns. During the 60’s and 70’s, the telecommunications
public administration used to select the technical basis of the main equipment systems,
to finance and realize R&D projects jointly with local firms, to allocate them the public
purchases. This has permitted to strengthen the local firms on the national and international
markets. Since the 80’s, fusions, mergers and technological agreements traduce a concentration
process. Japanese and European corporations intensify their direct investments in the US
market. The competition grows rapidly in the deregulated small equipment market.

JEL Classification: L96; L52.