Skill Development, Technology Development, and the Roots of Wage Inequality: Why Are High-Quality STEM Careers Lacking in the United States? (INO14-00026)
The goals of our research paper are a) to provide a critical review of the mainstream SBTC view and its policy implications, b) to articulate the alternative “organization strategy” hypothesis in which technology development and skill development are co-determined by the investment strategies and organizational structures of government agencies and business enterprises, and c) to summarize the empirical evidence (much of it based on in-depth case studies at the enterprise and industry levels) that supports the “organization strategy” point of view.
Who Invests in the Knowledge Base? (INO14-00025)
The purpose of the research paper is to document changes in the development and utilization of the knowledge base over the past century for the case of the United States, the unquestioned world leader in advanced technological capability in the last half of the 20th century. This empirical synthesis will provide a foundation for subsequent analyses of a) the public policies that support, and those that undermine, the accumulation of technological capabilities, b) the relations among family, government, and business – or what we call “the investment triad” – in making investments in the nation’s knowledge base, and c) the conditions under which those actors who gain from investments in the knowledge base differ from those actors who actually made these investments. In our view, the research will provide a critical foundation for understanding how a wealthy nation such as the United States can develop and utilize technology to get back on a path of sustainable prosperity characterized by stable and equitable economic growth.
This second INET funded project on “impatient capital in high-tech industries” builds on the previous INET project, “The stock market and innovative enterprise”. Through in-depth empirical studies, guided by the theory of innovative enterprise, my research team will analyze the role of finance in the operation and performance of three broad high-technology sectors: communications technology (comtech); biopharmaceutical drugs and medical technologies (healthtech); and wind power, solar power, electric vehicles and the smart grid (cleantech). These are all sectors in which the U.S. government plays important roles in funding research, much of it publicly available, and in providing investment subsidies to specific companies. Given this government funding, one key question posed by this project is whether the business finance available to these sectors entails the “financial commitment” or “patient capital” required to generate innovative products at prices that buyers are willing and able to pay…
The FIID project studies the types of financial institutions – in terms of their governance, organization, and operation – that support innovation at the level of the business enterprise, and the implications for stable and equitable growth at the level of the economy as a whole. We define innovation as the processes that generate higher quality, lower cost products at prevailing factor prices. Innovation creates the possibility for growth in per capita incomes, but that growth may be unstable over time and inequitably distributed across the population. A prime challenge for legislators and policy-makers concerned with economic development is to structure financial institutions so that they support innovation in ways that contribute to stable and equitable growth…
The INET project analyzes the ways in which an important financial institution – the stock market – affects the real economic performance of the industrial corporations that are listed on it. The analysis is constructed upon the basic tenet that, at the level of the firm, improvements in real economic performance depend on innovation, defined as the process that generates products that, at prevailing factor prices, are higher quality and/or lower cost than those previously available. From this viewpoint, the project investigates the role of financial markets in the innovation process and the causal relationship between a company’s economic performance and how a company actually makes use of the stock market through five fundamental functions of company stock…
Globalization of the Hi-tech Labor Force