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.