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A roadmap for how we can rebuild America's working class by
transforming workforce education and training. The American dream
promised that if you worked hard, you could move up, with
well-paying working-class jobs providing a gateway to an
ever-growing middle class. Today, however, we have increasing
inequality, not economic convergence. Technological advances are
putting quality jobs out of reach for workers who lack the proper
skills and training. In Workforce Education, William Bonvillian and
Sanjay Sarma offer a roadmap for rebuilding America's working
class. They argue that we need to train more workers more quickly,
and they describe innovative methods of workforce education that
are being developed across the country.
The American economy faces two deep problems: expanding innovation
and raising the rate of quality job creation. Both have roots in a
neglected problem: the resistance of Legacy economic sectors to
innovation. While the U.S. has focused its polices on breakthrough
innovations to create new economic frontiers like information
technology and biotechnology, most of its economy is locked into
Legacy sectors defended by technological/economic/political/social
paradigms that block competition from disruptive innovations that
could challenge their models. Americans like to build technology
"covered wagons " and take them "out west " to open new innovation
frontiers; we don't head our wagons "back east " to bring
innovation to our Legacy sectors. By failing to do so, the economy
misses a major opportunity for innovation, which is the bedrock of
U.S. competitiveness and its standard of living. Technological
Innovation in Legacy Sectors uses a new, unifying conceptual
framework to identify the shared features underlying structural
obstacles to innovation in major Legacy sectors: energy, air and
auto transport, the electric power grid, buildings, manufacturing,
agriculture, health care delivery and higher education, and
develops approaches to understand and transform them. It finds both
strengths and obstacles to innovation in the national innovation
environments - a new concept that combines the innovation system
and the broader innovation context - for a group of Asian and
European economies. Manufacturing is a major Legacy sector that
presents a particular challenge because it is a critical stage in
the innovation process. By increasingly offshoring production, the
U.S. is offshoring important parts of its innovation capacity.
"Innovate here, produce here, " where the U.S. took all the gains
of its strong innovation system at every stage, is being replaced
by "innovate here, produce there, " which threatens to lead to
"produce there, innovate there. " To bring innovation to Legacy
sectors, authors William Bonvillian and Charles Weiss recommend
that policymakers focus on all stages of innovation from research
through implementation. They should fill institutional gaps in the
innovation system and take measures to address structural obstacles
to needed disruptive innovations. In the specific case of advanced
manufacturing, the production ecosystem can be recreated to reverse
"jobless innovation " and add manufacturing-led innovation to the
U.S.'s still-strong, research-oriented innovation system.
The U.S. government is pursuing a series of new industrial policies
at a level not seen before. This effort has been driven politically
on a bipartisan basis by concern over China's extensive industrial
policy system. Growing concern about climate change has also been a
major driver for these new policies as has the Covid-19 pandemic.
Industrial Innovation Policy in the United States places these new
policy approaches into an historical context, particularly
emphasizing industrial policy approaches to the innovation system.
It then reviews the definitional and economic debates over
industrial policy. Next, it catalogs and summarizes the main
thrusts of new U.S. industrial policy efforts and describes the
major elements, as well as gaps in these approaches. In particular,
it notes the critical gap in the U.S. for scale-up funding for
moving new technologies into production as compared to China. The
author also notes the types of industrial innovation policies,
characterizing "top down" and "bottom up" approaches. Finally, the
monograph reviews the new mechanisms and supporting infrastructure
needed to make industrial policy approaches operational.
After a long decline in American manufacturing in the 2000s -
manufacturing employment fell by one third, 64,000 factories
closed, manufacturing capital investment and output suffered, and
the productivity rate dropped during this period. Simultaneously,
the U.S. had been systematically shifting production abroad, and
the decline in production capability was starting to affect
innovation capacity - which had long been viewed as a core strength
of the U.S. economy. This book reviews the origins of the policy
response to this dilemma, which came to be called "advanced
manufacturing." It traces the way the foundational concepts were
developed in a series of reports from in and out of government. It
explores how, for the first time, an innovation system response was
considered and developed to strengthen the U.S. production system.
It examines the key new policy mechanism created by the
Administration and supported by Congress, the manufacturing
innovation institutes, a complex public-private collaborative model
to develop new production technologies and processes, with
supporting workforce education. It reviews how the new institutes
are working, lessons learned as they have started up and possible
enhancements that could expand their policy reach. While this model
may create efficiencies and productivity gains to help put existing
U.S. manufacturers back in competition with lower cost and lower
wage competitors abroad, there is a second problem - the U.S.
innovation system based on venture capital for implementing the IT
and biotech innovation waves of the late 20th century now largely
shifted to support software firms, abandoning manufacturing
startups. This is now driving the next generation of manufacturers
to production abroad, which will have significant societal
consequences longer term. This monograph reviews new models to
tackle this problem, essentially substituting technology and
knowhow rich spaces for capital.
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