Given the powerfully negative and ongoing impact of the Great Recession on western economies, the question of whether historically wealthy nations--the US, Western European countries, Japan--can stay wealthy has become an overriding concern for virtually every interested observer. Can their middle classes remain comfortable as more and more good and technically jobs disappear to other parts of the world? Can they support themselves as they devote more and more economic resources to an aging population base? In The Third Globalization, eminent political economists Dan Breznitz and John Zysman gather some of the discipline's leading scholars to assess the prospects for growth and prosperity among advanced industrial nations. Throughout, they examine the core transformation in the economies of the advanced countries, the character of the challenge from the emerging economies, and the varied policy responses of the advanced countries. And, via a series of case studies, the contributors consider the central challenges these countries face internally and the nature of their responses.In particular, they ask what governments might do to achieve the goal of generating and retaining highly productive economic activity, which they collectively regard as necessary for sustained growth. In total, the book directly challenges a number of core policy and academic assumptions about the dynamics of contemporary advanced economies by looking at the problem from three different angles: a) a macro perspective, which considers the forces changing the policy and political economy landscape after the crisis; b) a sectoral perspective, which explains how these forces unleashed major shifts within critical domains and industries; and c) a policy perspective that concentrates on the responses to the Great Recession of both the already rich nations and the new, game transforming, competitors such as China and India. All told, the book's powerful analysis of a current global problem--weak growth in the world's longtime growth engines--that is of concern to everyone will make this essential reading for scholars and policymakers from across the social sciences.

Given the powerfully negative and ongoing impact of the Great Recession on western economies, the question of whether historically wealthy nations--the US, Western European countries, Japan--can stay wealthy has become an overriding concern for virtually every interested observer. Can their middle classes remain comfortable as more and more good and technically jobs disappear to other parts of the world? Can they support themselves as they devote more and more economic resources to an aging population base? In The Third Globalization, eminent political economists Dan Breznitz and John Zysman gather some of the discipline's leading scholars to assess the prospects for growth and prosperity among advanced industrial nations.
Throughout, they examine the core transformation in the economies of the advanced countries, the character of the challenge from the emerging economies, and the varied policy responses of the advanced countries. And, via a series of case studies, the contributors consider the central challenges these countries face internally and the nature of their responses. In particular, they ask what governments might do to achieve the goal of generating and retaining highly productive economic activity, which they collectively regard as necessary for sustained growth. In total, the book directly challenges a number of core policy and academic assumptions about the dynamics of contemporary advanced economies by looking at the problem from three different angles: a) a macro perspective, which considers the forces changing the policy and political economy landscape after the crisis; b) a sectoral perspective, which explains how these forces unleashed major shifts within critical domains and industries; and c) a policy perspective that concentrates on the responses to the Great Recession of both the already rich nations and the new, game transforming, competitors such as China and India. All told, the book's powerful analysis of a current global problem--weak growth in the world's longtime growth engines--that is of concern to everyone will make this essential reading for scholars and policymakers from across the social sciences.

Winner of Balsillie Prize for Public Policy Winner of Donner Prize A Summer Book of 2021, Financial Times Longlisted Financial Times and McKinsey Best Business Book of the Year A challenge to prevailing ideas about innovation and a guide to identifying the best growth strategy for your community. Across the world, cities and regions have wasted trillions of dollars on blindly copying the Silicon Valley model of growth creation. Since the early years of the information age, we've been told that economic growth derives from harnessing technological innovation. To do this, places must create good education systems, partner with local research universities, and attract innovative hi-tech firms. We have lived with this system for decades, and the result is clear: a small number of regions and cities at the top of the high-tech industry but many more fighting a losing battle to retain economic dynamism. But are there other models that don't rely on a flourishing high-tech industry? In Innovation in Real Places, Dan Breznitz argues that there are. The purveyors of the dominant ideas on innovation have a feeble understanding of the big picture on global production and innovation. They conflate innovation with invention and suffer from techno-fetishism. In their devotion to start-ups, they refuse to admit that the real obstacle to growth for most cities is the overwhelming power of the real hubs, which siphon up vast amounts of talent and money. Communities waste time, money, and energy pursuing this road to nowhere. Breznitz proposes that communities instead focus on where they fit in the four stages in the global production process. Some are at the highest end, and that is where the Clevelands, Sheffields, and Baltimores are being pushed toward. But that is bad advice. Success lies in understanding the changed structure of the global system of production and then using those insights to enable communities to recognize their own advantages, which in turn allows to them to foster surprising forms of specialized innovation. As he stresses, all localities have certain advantages relative to at least one stage of the global production process, and the trick is in recognizing it. Leaders might think the answer lies in high-tech or high-end manufacturing, but more often than not, they're wrong. Innovation in Real Places is an essential corrective to a mythology of innovation and growth that too many places have bought into in recent years. Best of all, it has the potential to prod local leaders into pursuing realistic and regionally appropriate models for growth and innovation.

A challenge to prevailing ideas about innovation and a guide to identifying the best growth strategy for your community. Across the world, cities and regions have wasted trillions of dollars on blindly copying the Silicon Valley model of growth creation. Since the early years of the information age, we've been told that economic growth derives from harnessing technological innovation. To do this, places must create good education systems, partner with local research universities, and attract innovative hi-tech firms. We have lived with this system for decades, and the result is clear: a small number of regions and cities at the top of the high-tech industry but many more fighting a losing battle to retain economic dynamism. But are there other models that don't rely on a flourishing high-tech industry? In Innovation in Real Places, Dan Breznitz argues that there are. The purveyors of the dominant ideas on innovation have a feeble understanding of the big picture on global production and innovation. They conflate innovation with invention and suffer from techno-fetishism. In their devotion to start-ups, they refuse to admit that the real obstacle to growth for most cities is the overwhelming power of the real hubs, which siphon up vast amounts of talent and money. Communities waste time, money, and energy pursuing this road to nowhere. Breznitz proposes that communities instead focus on where they fit in the four stages in the global production process. Some are at the highest end, and that is where the Clevelands, Sheffields, and Baltimores are being pushed toward. But that is bad advice. Success lies in understanding the changed structure of the global system of production and then using those insights to enable communities to recognize their own advantages, which in turn allows to them to foster surprising forms of specialized innovation. As he stresses, all localities have certain advantages relative to at least one stage of the global production process, and the trick is in recognizing it. Leaders might think the answer lies in high-tech or high-end manufacturing, but more often than not, they're wrong. Innovation in Real Places is an essential corrective to a mythology of innovation and growth that too many places have bought into in recent years. Best of all, it has the potential to prod local leaders into pursuing realistic and regionally appropriate models for growth and innovation.

The 1990s brought surprising industrial development in emerging economies around the globe: firms in countries not previously known for their high-technology industries moved to the forefront in new Information Technologies (IT) by using different business models and carving out unique positions in the global IT production networks. In this book Dan Breznitz asks why economies of different countries develop in different ways, and his answer relies on his exhaustive research into the comparative experiences of Israel, Taiwan, and Ireland--states that made different choices to nurture the growth of their IT industries.

The role of the state in economic development has changed, Breznitz concludes, but it has by no means disappeared. He offers a new way of thinking about state-led rapid-innovation-based industrial development that takes into account the ways production and innovation are now conducted globally. And he offers specific guidelines to help states make advantageous decisions about research and development, relationships with foreign firms and investors, and other critical issues.