From Chemicals to Computers

Industry-leading countries in chemicals, pharmaceuticals, and technology were the US, European countries such as Germany, Switzerland, and Italy, and Japan. While Germany and Switzerland were the leaders in the chemicals industry, the US and Japan led in electronics, computers, and the automobile industry. Japan, while not typically the original inventor, had the effective capacity to adapt to US technologies, which Europe mostly did not. Europe tried to be the leader in electronics and computers but ultimately became the direct and indirect customer of Japanese technology. The exception was the automobile industry, where Europe succeeded and continues to perform well.

The difference between older industries, such as chemicals, and newer ones like electronics and computers, lies in the variety of players and products. While the chemical industry had many players and a large variety of products, computer technology was more limited. As a result, the inventor of the modern business and personal computer was IBM, creating a platform for operating systems and chips. In truth, there has been and still is only one noteworthy operating system for PC-type computers: Microsoft Windows. This attests to Microsoft’s influence, as a Microsoft OS has been the standard operating system since the inception of both business and personal computers.

No company outside of the US has created a viable competitor to Microsoft Windows. While this lack of competition may not be surprising in Europe, where the PC battle was lost, it is notable that Japan, known for its adaptability to US technologies, has not developed its own version. Japan’s industry has excelled as the dominant supplier for its domestic market and Europe, owing partly to Europe’s inability to rise to the challenge.

It's interesting to note that Germany had a leading electronics industry until World War II. Perhaps if the fascists had not taken over, Germany might have become Europe’s equivalent of the US or Japan in innovation and in its capacity to supply the European market. However, the industrious UK also never adequately met the challenge, which may reveal a European weakness in this area. The exceptions are in industries like chemicals, pharmaceuticals, automobiles, aircraft, and defense products.