This paper examines reindustrialization as it relates to the international competitiveness of U.S. firms, using five areas of concern for the U.S. economy: (1) loss of competitive strength and failure to export, (2) decline in amount and quality of innovation, (3) emphasis on short term corporate strategies, (4) poor product quality, and (5) decline in productivity. Each area is examined in terms of how an activist approach to government, a minimalist approach, Japan's approach, and an industrial policy approach, would solve the problems. The study concludes that a national industrial policy for the U.S. must evolve which has the U.S. worldwide competitive position as its focus. This policy must use inputs from industry and other sectors of the economy to identify those industries most likely to achieve growth and international competitiveness. Resources such as tax incentives and research funds must then be directed toward those industries and away from nonproductive sectors of the economy.
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