Chapter 2 outlines the major factual and perceptual factors which have informed our understanding of the U.S. and Japanese innovation systems in the past, including a review of strengths and weaknesses of the two systems and national and firm level differences. Chapter 3 discusses emerging trends and issues with special focus on evidence for and against convergence. Chapter 4 addresses the growing role of external relationships in corporate technology policy and innovation strategy, and the increasingly multilateral nature of U.S.-Japan technology relationships including the importance of industrial standard-setting. Chapter 5 discusses the need for new theoretical frameworks to analyze and compare the U.S. and Japanese corporate innovation systems, and Chapter 6 suggests areas where further work is needed.