The town has a strong manufacturing tradition, particularly in machine tools and electrical goods.

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In manufacturing, innovations such as programmable machine tools make capital equipment more flexible, creating a demand for more flexible human capital, too.

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The government's strategy has been to treat imports of capital goods, such as machine tools, relatively generously (to help Kia and its peers improve their manufacturing), while clamping down on imports of western consumer goods, such as cars.

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Key technologies transferred by or through Germany to the Soviet Union include: high accuracy machine tools, deep underground tunneling machines, telecommunications equipment, underwater sensors, sophisticated computers and manufacturing equipment associated with microelectronics, advanced composites and superalloys.

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Examples include: high accuracy machine tools, deep underground tunneling machines, telecommunications equipment, underwater surveillance gear, sophisticated computers, manufacturing equipment associated with microelectronics, advanced composites and super-alloys.

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