Few commercial rivalries have been as cloaked in controversy, or as misunderstood, as high-definition television (HDTV). In the United States, the debate over HDTV unfolded as a referendum on the principles of free trade and the government's role in the economy. In Japan, enthusiasm for the technology has been dampened by questions about the appeal of Hi-Vision television, highlighting concerns about the excesses of state activism on the part of this quintessentially activist state. Not surprisingly, HDTV is held up by critics as evidence that governments lack the wherewithal to practice strategic trade. This chapter raises a dissenting voice, explaining that HDTV has, instead, been a success story on both sides of the Pacific.

Japanese research on HDTV began in 1964, nurtured by the government through direct and indirect support. U.S. interest did not lag far behind; the debate over HDTV garnered widespread attention in the 1970s. As in Japan, Washington took up two questions: What is HDTV? And why does it matter? In answering the first question, policymakers saw an answer to the second. HDTV is basically a hybrid of television and computer technology, providing high-resolution images on par with 35-millimeter film. To display, process, and correct this large amount of information per picture frame – or what is roughly four times that offered by current color television technology – HDTV receivers use a lot of memory and logic chips.