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Competition and cooperation between Japan, Europe and USA is§the key issue of this book - both at government and business§levels. Both short-term and long-termin competitive§cooperation between Western and Japanese firms and§institutions can be fruitful. Cooperation however, provides§no easy solutions to problems which Western economies have§been unable to solve on their own. Governments as well as§companies are often unprepared for cooperation with Japan§within the framework of larger-scale projects. On theother§hand, Japan itself still lacks the leadership capacities to§match its present economic and technological dominance. Thus§the Japanese strategyfor a Number Two role in cooperation§with the USA and the EC is described. The discussion focuses§on the implications of US/Japanese relations for Europe. It§further highlights future relations between the US and Japan§in the field of technology, and also deals with the EC/Japan§context.