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Industrial policy is making a comeback in the United States. It is more urgent than ever to understand how and whether industrial policy has worked to strengthen the US economy. This study analyzes and scores 18 US industrial policy episodes implemented between 1970 and 2020, in an effort to assess what went right and what went wrong—and how the current initiatives might fare. The Peterson Institute for International Economics gratefully acknowledges the support of the Koch Foundation for this project.
With the beginning of the twentieth century, American corporations in the chemical and electrical industries began establishing industrial research laboratories. Some went on to become world-famous not only for their scientific and technological breakthroughs but also for the new union of science and industry they represented. Innovative ideas do not simply appear out of the blue and spread on their own merit. Rather, the laboratory's diffusion takes place in a cultural context that goes beyond corporate capital and technological change. Using discourse analysis as a method to comprehensively capture the organizational field of the early American R&D laboratories from 1870 to 1930, this book uncovers the collective meanings associated with the industrial laboratory. Meanings such as what and where a laboratory is supposed to be, who the scientist is, and what it means to practice science provided cultural resources that made the transfer of the laboratory from academic science into an industrial setting possible by rendering such meanings understandable and operable to big business and organizational entrepreneurs fighting for hegemony in a rapidly evolving market. It analyzes not only the corporations that established laboratories in the United States but also their contexts – economic, political, and especially scientific – showing how "the industrial laboratory" was transformed from an organizational novelty into an expected institution in less than two decades. This book will be of interest to researchers, academics, historians, and students in the fields of organizational change, discourse studies, the management of technology and innovation, as well as business and management history.
The development of transistors, the integrated circuit, liquid-crystal displays, and even DVD players can be traced back to fundamental research pioneered in the field of condensed-matter and materials physics (CMPP). The United States has been a leader in the field, but that status is now in jeopardy. Condensed-Matter and Materials Physics, part of the Physics 2010 decadal survey project, assesses the present state of the field in the United States, examines possible directions for the 21st century, offers a set of scientific challenges for American researchers to tackle, and makes recommendations for effective spending of federal funds. This book maintains that the field of CMPP is certain to be principle to both scientific and economic advances over the next decade and the lack of an achievable plan would leave the United States behind. This book's discussion of the intellectual and technological challenges of the coming decade centers around six grand challenges concerning energy demand, the physics of life, information technology, nanotechnology, complex phenomena, and behavior far from equilibrium. Policy makers, university administrators, industry research and development executives dependent upon developments in CMPP, and scientists working in the field will find this book of interest.
U.S. industry faced a gloomy outlook in the late 1980s. Then, industrial performance improved dramatically through the 1990s and appears pervasively brighter today. A look at any group of industries, however, reveals important differences in the factors behind the resurgenceâ€"in industry structure and strategy, research performance, and location of activitiesâ€"as well as similarities in the national policy environment, impact of information technology, and other factors. U.S. Industry in 2000 examines eleven key manufacturing and service industries and explores how they arrived at the present and what they face in the future. It assesses changing practices in research and innovation, technology adoption, and international operations. Industry analyses shed light on how science and technology are applied in the marketplace, how workers fare as jobs require greater knowledge, and how U.S. firms responded to their chief competitors in Europe and Asia. The book will be important to a wide range of readers with a stake in U.S. industrial performance: corporate executives, investors, labor representatives, faculty and students in business and economics, and public policymakers.
Manufacturing’s central role in global innovation Companies compete on the decisions they make. For years—even decades—in response to intensifying global competition, companies decided to outsource their manufacturing operations in order to reduce costs. But we are now seeing the alarming long-term effect of those choices: in many cases, once manufacturing capabilities go away, so does much of the ability to innovate and compete. Manufacturing, it turns out, really matters in an innovation-driven economy. In Producing Prosperity, Harvard Business School professors Gary Pisano and Willy Shih show the disastrous consequences of years of poor sourcing decisions and underinvestment in manufacturing capabilities. They reveal how today’s undervalued manufacturing operations often hold the seeds of tomorrow’s innovative new products, arguing that companies must reinvest in new product and process development in the US industrial sector. Only by reviving this “industrial commons” can the world’s largest economy build the expertise and manufacturing muscle to regain competitive advantage. America needs a manufacturing renaissance—for restoring itself, and for the global economy as a whole. This will require major changes. Pisano and Shih show how company-level choices are key to the sustained success of industries and economies, and they provide business leaders with a framework for understanding the links between manufacturing and innovation that will enable them to make better outsourcing decisions. They also detail how government must change its support of basic and applied scientific research, and promote collaboration between business and academia. For executives, policymakers, academics, and innovators alike, Producing Prosperity provides the clearest and most compelling account yet of how the American economy lost its competitive edge—and how to get it back.
This book draws important lessons from the early days of industrial research in America.
Born in Jamestown, New York, Willis R. Whitney (1868-1958) was the longtime director of General Electric’s Research Laboratory and is widely considered one of the fathers of industrial research. He graduated from MIT in 1890 to become assistant professor of chemistry there. In 1896, he received his Ph.D. from the University of Leipzig under Wilhelm Ostwald. Having grown dissatisfied with purely academic work, he jumped at the opportunity, provided by Elihu Thompson in 1900, to become director of the newly created GE Research Laboratory. The laboratory was “to be devoted exclusively to original research.” “It is hoped,” a 1902 report stated, “that many profitable fields may be discovered” and so it was: when Whitney took over, GE needed more economical lamp filaments and the laboratory developed a new form of “metallized” carbon which gave 25% more light for the same wattage, the first radical improvement in Edison’s incandescent carbon filament. Millions of the new lamps were sold in a single year. The laboratory’s many other contributions include the tungsten lamp, several applications for wrought tungsten (replacing platinum targets in X-ray tubes and platinum contacts in spark coils, magnetos and relays) and the Coolidge X-ray tube in a wide range of sizes. Whitney’s broad scientific knowledge, ability as a chemist and resourcefulness as an experimenter lay the basis for all the work of the laboratory. He stepped down as director in 1932. He was a member of numerous institutions including the American Institute of Electrical Engineers, American Society of Electrochemical Engineers, National Academy of Sciences, British Institute of Metals, and National Research Council, and he received many honors, such as the Willard Gibbs Medal in 1920, the Perkin Medal in 1921, the Gold Medal of the National Institute of Social Sciences in 1928, and the AIEE Edison Medal in 1934 for “his contributions to electrical science, his pioneer inventions, and his inspiring leadership in research.” “Whitney invented modern industrial research... George Wise re-creates much of the anxiety and excitement of the decades when business discovered science and vice versa.” — David Diamond, The New York Times “Wise has not simply written biography and a story of the research laboratory at General Electric but also a great deal of General Electric history and history of technology as well... The author’s technical and scientific presentations are generally lucid and accessible to the layperson.” — Martha M. Trescott, Journal of Economic History “[A] book of many strengths. Most immediately apparent is the very high quality of the writing. As a skilled biographer, Wise succeeds in bringing the reader into the life of an interesting and important individual... Wise does not neglect the personal side of Whitney’s life, including his unhappy family situation and his personal illnesses... The primary focus, however, is on his work at GE, work the author expertly fits into broader patterns of science, industry and society in early twentieth-century America.” — James H. Madison, Journal of American History “[A] thoroughly researched and lucidly written book... Wise’s book makes important contributions to the understanding of the origins of industrial research and the development of science in the American context.” — John K. Smith, Technology and Culture “George Wise effectively develops the foundation for an interesting and in-depth view of a man who made an outstanding contribution to industrial research, while at the same time suffering personal disappointments and fighting a continuing battle with recurring mental depression... Wise’s book is warm, personal, and rich in historical background; it provides a view into the life of the individual who set the stage for industrial research in America.” — Alfred A. Bolton, Academy of Management Review “[An] important book... Wise’s portrayal of Whitney is acute and sensitive. Moreover, it demonstrates that the depiction of industrial scientists as either alienated and unhappy academics-in-exile or mindless minions of the giant corporation is overly simple... Wise has produced a first-rate study of a pioneering establishment that should be read by anyone interested in the crucial relationships between science and modern industry.” — Larry Owens, Business History Review “[A] turning point in the long-neglected history of industrial research. [N]ot merely outstanding... [a] definitive work that establish[es] critical standards for future research in this field... beautifully crafted... a sensitive and insightful biography of Willis R. Whitney.” — Edwin T. Lawton, Jr., Isis “Wise has accomplished perhaps the most difficult task before any biographer — successfully connecting his subject’s historical significance with the deeper elements of his humanity. This humanity is described with a biographer’s sympathy and a historian’s sophistication... Wise writes with sympathy and often charm, drawing not only from substantial archival records but also from dozens of interviews carried out with Whitney’s associates and workers... This biography will not only be the standard study of Whitney, but it will also provide a useful model and guide for all students of the key institutions of modern science.” — Robert Friedel, British Journal for the History of Science