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"Breznitz, Dan"
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Innovation in real places : strategies for prosperity in an unforgiving world
\"Across the world, cities and regions have wasted trillions of dollars on blindly copying the Silicon Valley model of growth creation. 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, as this books details, there are other models for innovation-based growth that don't rely on a flourishing high-tech industry. It argues that 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. Instead Breznitz proposes that communities focus on where they fit within the four stages in the global production process. 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. All localities have certain advantages relative to at least one stage of the global production process, and the trick is in recognizing it\"-- Provided by publisher.
Book
The Run of the Red Queen
Few observers are unimpressed by the economic ambition of China or by the nation's remarkable rate of growth. But what does the future hold? This meticulously researched book closely examines the strengths and weaknesses of the Chinese economic system to discover where the nation may be headed and what the Chinese experience reveals about emerging market economies. The authors find that contrary to popular belief, cutting edge innovation is not a prerequisite for sustained economic vitality-and that China is a perfect case in point.
eBook
Innovation and the State
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.
eBook
Structured uncertainty: a pilot study on innovation in China’s mobile phone handset industry
This paper explains why many small and medium-sized (SME) private high-technology Chinese manufacturing firms survive and thrive within an institutional and political system arrayed against them. We use the mobile phone handset industry as an illustrative case of the vitality and capabilities of Chinese SMEs. We argue that in capitalizing on the advantages offered by the global fragmentation of production, while also being constrained by an institutional climate of structured uncertainty, Chinese non-state firms have chosen a pattern of incremental innovation in their search for competitive advantage. Despite falling outside central government innovation plans and engaging in practices inimical to nurturing novel product innovation capabilities, these firms have a sustainable business model based on niche tailoring, rapid product introduction and utilization of standardized components.
Journal Article
The Neoliberal Targeted Social Investment State: The Case of Ethnic Minorities
Neoliberal governance has been associated with rising inequality and economic exclusion. Recent scholarship proposes that the social investment state (SIS) is a turn away from such inequality and exclusion-enhancing neoliberalism. The ideal SIS responds to neoliberalism-generated social ills by investing in the productive capacities of all its citizens. However, commentators ask whether an SIS addresses the plight of weaker elements in society, specifically that of disadvantaged ethnic minorities. This paper looks specifically at this question by utilising a critical-case study research design of a surprising example of social investment in disadvantaged ethnic minorities: the extensive labour market policies for Israeli Arabs. This paper introduces the concept of a neoliberal targeted SIS in which social investment programmes are developed for economic reasons, promoted by neoliberal actors (right-wing parties and Ministries of Finance), target narrow groups instead of being applied to all, and the preferred mode for the delivery of services is private. Egalitarian outcomes – to the extent that they materialise – might be thought of as a policy by-product.
Journal Article
The Role of Venture Capital in the Formation of a New Technological Ecosystem
The diffusion of new information technology (IT) requires the development of an ecosystem of hardware and software producers, users, and other firms. It is widely believed that venture capitalists (VCs) can play a role in the development of such ecosystems. However, empirical research to elaborate on these points is lacking. Focusing on the recent rapid rise of one platform, cloud computing, we assemble a unique dataset to look at the period just before wide acceptance of the cloud. We find evidence of complementarity between VC financing and the introduction of new products offered over the cloud. Moreover, the complementarity effects are significantly stronger for firms backed by VCs that had rich experience in the IT industry and are significantly weaker for firms that had prior experience developing traditional client/server products. These results provide evidence that supports a role for VC financing in the creation of new technological ecosystems.
Journal Article
Ideas, structure, state action and economic growth: Rethinking the Irish miracle
This paper advances an argument about the need to take into account two components of state-industry relations if we are to fully understand economic development and policy trajectory, as well as industry-state co-evolution. The first component, the specific structure of the bureaucracy and state-industry relations, has been the focus of intense research. However, the second, the particular industrial economic ideology defining the correct role of the state in industry and industry in a state, is at least as important, if under-researched. In order to do empirically advance the argument the paper merges a cognitive-based constructivist argument with a neo-developmental state structuralist one, to present a new understanding of the role of the state in the Irish miracle that explains not only its success and failures but its internal dissonances, such as the continuous discrimination of the local, Irish-owned, industry in favor of foreign-owned MNCs. The paper illustrates how a particular industrial economic ideology has been formed and crystallized in Ireland. Focusing on the IT industry and using a multimethod research strategy, it traces the influence and evolution of this ideology at five critical decision points over a fifty-year period.
Journal Article
Indigenous digital technology standards for development: The case of China
Research since the 1980s has considered the economic and innovation impacts of technology standards policies. This paper extends the research on the impact of standardization policies to consider how the policies themselves, as they govern how the standards are created, determine standards’ impact on emerging economies’ economic performance and innovation capabilities. Using four cases of digital technology standardization in China, this paper finds that combinations of government financial and market support and openness to domestic and foreign contributors determines how and when digital standardization begets positive technological and economic impacts for firms. This paper contributes to our understanding of international technology upgrading in emerging economies, as well as suggesting policies for successful economic upgrading in large emerging economies.
Journal Article
The Role of Venture Capital in the Formation of a New Technological Ecosystem: Evidence from the Cloud1
The diffusion of new information technology (IT) requires the development of an ecosystem of hardware and software producers, users, and other firms. It is widely believed that venture capitalists (VCs) can play a role in the development of such ecosystems. However, empirical research to elaborate on these points is lacking. Focusing on the recent rapid rise of one platform, cloud computing, we assemble a unique dataset to look at the period just before wide acceptance of the cloud. We find evidence of complementarity between VC financing and the introduction of new products offered over the cloud. Moreover, the complementarity effects are significantly stronger for firms backed by VCs that had rich experience in the IT industry and are significantly weaker for firms that had prior experience developing traditional client/server products. These results provide evidence that supports a role for VC financing in the creation of new technological ecosystems.
Journal Article