High‐definition television: A policy framework to revive U.S. Leadership in consumer electronics

High‐definition television (HDTV) could represent a challenging opportunity for U.S. manufacturers to regain leadership in consumer electronics, if errors of the past are not repeated. This article examines the key factors that have contributed to the decline of the U.S. consumer electronics industry. The first section also describes the Japanese and European business strategies used to edge out American manufacturers. The second section briefly reviews the content of congressional bills designed to promote the development of a U.S. HDTV manufacturing industry. Major provisions include tax incentives for research and development, relaxation of antitrust laws, and federal support. The last section recommends a set of policies to revive the entrepreneurial spirit and industrial leadership of U.S. manufacturers in consumer electronics. A multifaceted reform, including educational, economic, and political transformations, is essential to ensure a sound base for American companies’ reentry into the highly competitive consumer electronics market.