industrial cluster

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pages: 606 words: 87,358

The Great Convergence: Information Technology and the New Globalization by Richard Baldwin

"Robert Solow", 3D printing, additive manufacturing, Admiral Zheng, agricultural Revolution, air freight, Amazon Mechanical Turk, Berlin Wall, bilateral investment treaty, Branko Milanovic, buy low sell high, call centre, Columbian Exchange, commoditize, Commodity Super-Cycle, David Ricardo: comparative advantage, deindustrialization, domestication of the camel, Edward Glaeser, endogenous growth, Erik Brynjolfsson, financial intermediation, George Gilder, global supply chain, global value chain, Henri Poincaré, imperial preference, industrial cluster, industrial robot, intangible asset, invention of agriculture, invention of the telegraph, investor state dispute settlement, Isaac Newton, Islamic Golden Age, James Dyson, Kickstarter, knowledge economy, knowledge worker, Lao Tzu, low skilled workers, market fragmentation, mass immigration, Metcalfe’s law, New Economic Geography, out of africa, paper trading, Paul Samuelson, Pax Mongolica, profit motive, rent-seeking, reshoring, Richard Florida, rising living standards, Robert Metcalfe, Second Machine Age, Simon Kuznets, Skype, Snapchat, Stephen Hawking, telepresence, telerobotics, The Wealth of Nations by Adam Smith, trade liberalization, trade route, Washington Consensus

When trade gets freer, but nothing happens to the freeness of spillovers, the freeness combination moves horizontally in the diagram. If it goes far enough, it crosses the stability boundary and, as explained in the NEG discussion, all industry clusters in one region (in the North to be concrete). The diagram, however, is not just about industrial clustering. It also has a growth takeoff in the background. At a point like 1700, the dispersion of industry conspires with the high cost of moving ideas and the result is that neither region is growing. Innovations are scarce and spillovers are difficult so the furnace of modern growth—innovation and innovation-spurring knowledge spillovers—it not yet lighted. When industry clusters, as it is at the point 1990, the furnace ignites and growth takes off in the North. What happens when knowledge spillovers get freer internationally?

While shipping got cheaper, the costs of moving ideas and people fell much less. This unbalanced reduction of separation costs triggered a chain of causes and effects that eventually produced enormous income differences between today’s developed nations (called the “North” for short) and today’s developing nations (the “South”). First, markets expanded globally but industry clustered locally. As history would have it, industry clustered in the North. This Northern industrialization fostered Northern innovation, and since ideas were so costly to move, Northern innovations stayed in the North. The result was that modern, innovation-fueled growth took off sooner and faster in the North. In just a few decades, the resulting growth differences compounded into the colossal, North-South income asymmetries that define the planet’s economic landscape even today.

The details are in the next chapter, but the basic ideas are simple to explain with the diagram—starting with the diagram’s southeast box (“industrial clustering”). The clustering—that is to say, agglomeration—of industry in a nation promotes new thinking and new inventions (shown in southwest box, “Industrial innovation”). The innovation then strengthens the nation’s competitiveness in the sector (shown in northwest box, “Comparative advantage”). The next step—according to the principle of comparative advantage—is that the heightened comparative advantage leads to more exports and more production. The crank comes around full circle when this extra production generates additional industrial clustering. The basic Ricardian logic focuses on the “who exports what” question. The answer ultimately rests on its assumption of national competencies that are taken as given.


pages: 112 words: 30,160

The Gated City (Kindle Single) by Ryan Avent

big-box store, carbon footprint, deindustrialization, edge city, Edward Glaeser, income inequality, industrial cluster, labor-force participation, low skilled workers, manufacturing employment, offshore financial centre, profit maximization, rent-seeking, Silicon Valley, Thorstein Veblen, transit-oriented development, Tyler Cowen: Great Stagnation, Veblen good, white picket fence, zero-sum game

In the years to come, thousands of new businesses will open, revolutionary new business models will be developed, and untold sums of money will be spent and earned. But it's not necessarily clear how all of this will happen. Cities are a crucial part of the experimental process of figuring it out. Technological communities within early industrial clusters solved critical problems and developed the techniques and ideas that powered the industrial revolution. Technological communities in later industrial clusters developed the hardware and software that brought us today’s IT. And technological communities in future industrial clusters will figure out how best to apply these and newer technologies to business models in order to earn money, raise productivity, and boost economic growth. These experiments don’t need to begin as grand enterprises. Connections among ambitious individuals within cities have facilitated the development of online self-publishing, thereby launching lucrative personal brands.

In the 20th century, falling shipping costs made it profitable for factories to pack up and move to cheaper areas. But the human-capital dependent sectors like finance and design remained and continued to drive New York’s economy. Long after the original source of New York’s success waned as an economic engine, the city remains a global economic juggernaut. New York’s port doesn’t keep the financial sector centered in Manhattan. Proximity to other financiers matters now. Industry clusters, like New York’s old textile business and its present financial sector, are one of the striking features of industrialized economies. They pop up across industries, locations, and time periods. There's Dalton, Georgia, the carpet capital. New York, financial, media, and fashion capital. There are tech concentrations in Silicon Valley, outside Boston, and in the Research Triangle of North Carolina.


pages: 325 words: 73,035

Who's Your City?: How the Creative Economy Is Making Where to Live the Most Important Decision of Your Life by Richard Florida

active measures, assortative mating, barriers to entry, big-box store, blue-collar work, borderless world, BRICs, business climate, Celebration, Florida, correlation coefficient, creative destruction, dark matter, David Brooks, David Ricardo: comparative advantage, deindustrialization, demographic transition, edge city, Edward Glaeser, epigenetics, extreme commuting, Geoffrey West, Santa Fe Institute, happiness index / gross national happiness, high net worth, income inequality, industrial cluster, invention of the telegraph, Jane Jacobs, job satisfaction, Joseph Schumpeter, knowledge economy, knowledge worker, low skilled workers, megacity, new economy, New Urbanism, Peter Calthorpe, place-making, post-work, Richard Florida, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, Seaside, Florida, Silicon Valley, Silicon Valley startup, superstar cities, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, Thomas L Friedman, urban planning, World Values Survey, young professional

Whatever it is called, companies like Armani, Prada, and Gucci benefited from high levels of productivity and innovation, but even more so from being part of a tight cluster of suppliers, users, and customers. The economic power and efficiency of these clusters was more than enough to offset mounting pressures to relocate abroad. By the early 1990s, the resilience of certain industrial clusters had captured the attention of leading economists and social scientists, like Harvard Business School professor Michael Porter.11 Considered one of the most important management thinkers in the world, by the mid-1990s Porter was devoting almost all of his research and resources to the study of the world’s leading industrial clusters. Porter’s research generated a new economic map of the world that took shape around clusters. According to Porter, these clusters managed to survive because of their proximity to sophisticated users and customers, their ability to draw from highly skilled pools of local talent, and their access to supportive regional institutions such as universities and vocational training programs.

In a detailed study of the biotech industry published in 2001, Joseph Cortright and Heike Mayer found that three-quarters of all biotech firms founded in the 1990s were located in just nine regions. 12 Compared with others, those nine regions boasted eight times as much biotech research, ten times as many biotech companies, and thirty times more biotech venture capital. Venture capital is another useful indicator of how high-tech industries cluster, and it’s one reason for the success of Silicon Valley. “There’s a unique set of resources in Silicon Valley that don’t exist in other places,” VideoEgg founder, Matt Sanchez, told the Wall Street Journal. “So if you’re going to build a tech company, this is the place to do it.”13 It’s not just high-tech industries that cluster. Many other industries also benefit from being located near one another. To start, let’s look at the trends in the two main sectors of the economy: the service sector and the creative sector. FIGURE 7.1 GLOBAL INDUSTRY CLUSTERS SOURCE: CLAAS VAN LINDE,"CLUSTER META-STUDY: LIST OF CLUSTERS AND BIBLIOGRAPHY." INSTITUTE FOR STRATEGY AND COMPETITIVENESS, HARWARD BUSINESS SCHOOL, OCTOBER 2002.

United States modeling growth of as natural economic units superstar See also Megaregions Cities and the Wealth of Nations (Jacobs) City Brands Index Clark, Taylor Clark, Terry Class divide economic dimension of geographic dimension of marriage and means migration and mobility and place and See also Creative class Cleanest cities(fig.) Cleveland Clustering force bridging and creative class and creativity and defining economic activity and (fig.) globalization and human innovation and (fig.) occupation and personality and productivity and proximity and scientific discovery and (fig.) talent concentration from urban areas and See also Industrial clusters Colbert, Stephen Coletta, Carol Columbia University Columbus, Ohio Communities attribute clusters for family-friendly happiness with infrastructure of leadership of openness of satisfaction with Commuting Comparative advantage Consumer cities Copenhagen (fig.)(fig.) Cortright, Joseph Cost of living Costco Cowen, Tyler Creative class clustering of economic development in education and mobility of parenting styles of personality traits of Creative Industries (Caves) Creative productivity Creative sector flexibility and growing job markets and housing and industrial location changed by Creativity clustering of curiosity and economic growth and happiness and productivity and psychology of Crime Csikszentmihalyi, Mihaly Cultural capital Cultural dynamism Cultural identity Curiosity Currid, Elizabeth Dal-Austin(fig.)


pages: 403 words: 87,035

The New Geography of Jobs by Enrico Moretti

assortative mating, Bill Gates: Altair 8800, business climate, call centre, cleantech, cloud computing, corporate raider, creative destruction, desegregation, Edward Glaeser, financial innovation, global village, hiring and firing, income inequality, industrial cluster, Jane Jacobs, Jeff Bezos, Joseph Schumpeter, knowledge economy, labor-force participation, low skilled workers, manufacturing employment, Mark Zuckerberg, mass immigration, medical residency, Menlo Park, new economy, peer-to-peer lending, Peter Thiel, Productivity paradox, Richard Florida, Sand Hill Road, Silicon Valley, Skype, special economic zone, Startup school, Steve Jobs, Steve Wozniak, thinkpad, Tyler Cowen: Great Stagnation, Wall-E, Y Combinator, zero-sum game

If anything, I found it remarkable that Levi Strauss had resisted outsourcing for so long. Other companies in its sector—Gap, Ralph Lauren, Old Navy—had shifted their production overseas much earlier. In this respect, the apparel sector is typical of the manufacturing sector as a whole. In the decade after World War II, textiles were a major piece of the U.S. labor market. America’s most important industrial cluster in terms of jobs was not the Detroit auto industry but the New York garment industry. As recently as the mid-1980s, more than a million American workers were still employed by U.S. companies making clothing and garments. Today that number has dropped by more than 90 percent. Take a minute to check where your clothes were made. If you are wearing clothes sold by an American company, a third-party vendor in a place like Vietnam or Bangladesh probably manufactured them.

And why is the gap between the hubs and the rest of the nation growing every year? As we are about to discover, the Great Divergence is not a historical accident but the inevitable consequence of far-reaching economic forces. 4. Forces of Attraction AT FIRST GLANCE, the geographical location of America’s innovation hubs appears arbitrary and puzzling. In many traditional industries, location is tied to natural resources. The U.S. oil industry clusters in Texas, Alaska, and Louisiana because that’s where large oil reserves are. The wine industry is mostly concentrated in California because of good weather and favorable soil. The lobster industry is in Maine because lobsters don’t live in Kansas. In these cases, clustering is neither surprising nor particularly revealing. The geographical concentration of innovative industries, however, appears much harder to explain.

The Economics of Poverty Traps and Big Pushes We have just seen the promise and the pitfalls of policies to foster local economic growth by increasing the supply of skilled workers in a city. The alternative approach is to try to increase the demand for labor by attracting employers. This often amounts to offering targeted incentives to innovative companies to locate in a struggling community, in the hope of forming a cluster that in the long run becomes self-sustaining. Once a successful industrial cluster is under way, it tends to strengthen over time. Its labor market and the market for specialized business services become even thicker, and its knowledge spillovers become even stronger. The difficult part, of course, is jump-starting the cluster. In 2005, Ping Wang was facing a similar problem. He had been chairman of the economics department at Washington University in St. Louis for only a few months, but he quickly realized that the department was in trouble.


pages: 242 words: 68,019

Why Information Grows: The Evolution of Order, From Atoms to Economies by Cesar Hidalgo

"Robert Solow", Ada Lovelace, Albert Einstein, Arthur Eddington, assortative mating, business cycle, Claude Shannon: information theory, David Ricardo: comparative advantage, Douglas Hofstadter, Everything should be made as simple as possible, frictionless, frictionless market, George Akerlof, Gödel, Escher, Bach, income inequality, income per capita, industrial cluster, information asymmetry, invention of the telegraph, invisible hand, Isaac Newton, James Watt: steam engine, Jane Jacobs, job satisfaction, John von Neumann, Joi Ito, New Economic Geography, Norbert Wiener, p-value, Paul Samuelson, phenotype, price mechanism, Richard Florida, Ronald Coase, Rubik’s Cube, Silicon Valley, Simon Kuznets, Skype, statistical model, Steve Jobs, Steve Wozniak, Steven Pinker, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, working-age population

Other approaches focus not on the role of individuals but on the properties of regions or of the networks of firms that locate in these regions. One strand of this literature focuses on industrial clusters associated mostly with the Harvard Business School professor Michael Porter (see, for example, Michael E. Porter, On Competition [Boston: Harvard Business School Press, 2008]). This literature, however, can also be traced back—albeit in a more rudimentary form—to Alfred Marshall’s nineteenth-century work on industrial districts (for example, Principles of Economics [London: Macmillan, 1890]). Porter discusses industrial clusters in terms of demand conditions, specific factors, strategy, and related industries. With the last item he emphasizes the importance of local value chains, echoing somehow the work of Alfred Hirschman on backward linkages (for example, Albert O.

Approaches emphasizing the role of regions include those of economic geographers, who have contributed to explaining differences between regions in terms of properties of these regions. This work includes the institutional literature explaining differences in the composition of industrial clusters based on differences in features of a location, in particular their social and formal institutions. (See, for example, Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity [New York: Free Press, 1995]; AnnaLee Saxenian, Regional Advantage [Cambridge, MA: Harvard University Press, 1996]; and Daron Acemoglu and James A. Robinson, Why Nations Fail: The Origins of Power, Prosperity, and Poverty [New York: Crown Business, 2012].) For instance, an argument explaining differences between the composition and success of two industrial clusters in terms of the culture of the people located in them (religion, family orientation, etc.), or the formal rules that are in place, would fall into the categories of theories based on social or formal institutions, respectively.

I have taken the liberty of expanding this example substantially, since in Wiener’s book it is not mentioned in a very straightforward way and furthermore is woven into a weird Cold War political argument. Norbert Wiener, The Human Use of Human Beings: Cybernetics and Society (Boston: Houghton Mifflin, 1950). CHAPTER 6: THIS TIME, IT’S PERSONAL 1. The question of which industries locate where and why has given rise to at least four theoretical streams of literature: the literature on industrial clusters, the “new economic geography” (which is the neoclassical stream of this literature), the economic geography literature focusing on institutions and culture, and the evolutionary economic geography literature. One could argue that these different strands of literature reflect academic alliances and divisions, but I will describe them not in terms of academic divisions but in terms of how they conceptualize sources of economic advantage and the patterns of industrial diversification and specialization found in different locations.


pages: 281 words: 69,107

Belt and Road: A Chinese World Order by Bruno Maçães

active measures, Admiral Zheng, autonomous vehicles, Branko Milanovic, BRICs, cloud computing, deindustrialization, demographic dividend, Deng Xiaoping, different worldview, Donald Trump, energy security, European colonialism, eurozone crisis, Francis Fukuyama: the end of history, global supply chain, global value chain, industrial cluster, industrial robot, Internet of things, Kenneth Rogoff, land reform, liberal world order, Malacca Straits, one-China policy, Pearl River Delta, smart cities, South China Sea, sovereign wealth fund, special economic zone, trade liberalization, trade route, zero-sum game

In Kazakhstan, to give another example, Chinese companies and the Chinese state have invested in the development of industrial clusters intended to sell titanium dioxide, silicon dioxide and vanadium pentoxide to China for use in the aircraft and aerospace industries. Recent industrial projects include Kazakhstan Aluminum, the Kaz Minerals copper mine in Aktogay, and Petrochina’s petcoke project in Pavlodar, all of which are at least partly funded by Beijing’s policy banks, China Development Bank and the Export-Import Bank of China. These are part of the fifty joint Kazakhstan-China industrial capacity cooperation projects agreed in 2015, worth $25–30 billion over five years, and intended to create industrial cluster cooperation zones in transport infrastructure, manufacturing, construction, and agriculture. Reciprocal investments in China, on the other hand, continue to be limited, with Chinese authorities blocking every attempt by Kazakh conglomerates to raise capital on the Shanghai or Hong Kong stock markets.

No one was that interested in those transcontinental trains, except as marketing opportunities—as the first strategy document for the initiative starkly put it, “we should cultivate the brand of China-Europe freight trains.” The measure of its early achievements were rather the industrial parks being launched and the massive ports whose construction or renovation would draw billions in investment. An interconnected system of transport, energy and digital infrastructure would gradually develop into industrial clusters and free trade zones and then an economic corridor spanning construction, logistics, energy, manufacturing, agriculture and tourism, culminating in the birth of a large Eurasian common market. Trade, not trains. Since President Xi Jinping had announced the plans a little less than two years before, everyone had set to work. Books were being published, think tanks devoted to the initiative had been created, course curricula had been redesigned, exhibitions were organized in hundreds of cities and an entrepreneurial soul had created a matchmaking service introducing Ukrainian women to Chinese men “as part of the Belt and Road.”

The equipment of leading enterprises has reached an advanced level, and key equipment such as blowing-carding machinery, combing machines, automatic winders and shuttle-less looms have a higher utilization rate than China’s national average. Thus “China can make the most of the Pakistani market in cheap raw materials to develop the textiles and garments industry and help soak up surplus labor forces in Kashgar to develop the city into an industry cluster area integrating textiles, printing and dyeing, cloth weaving and garment processing.” By 2023, Xinjiang will become the largest cotton textile industry base of China and the most important clothing export base in Western China. The largest city, Urumqi, will turn into the fashion capital of Central Asia. Finally, fibre-optic connectivity between China and Pakistan will prepare the ground for new digital television services disseminating Chinese culture, and electronic monitoring and control systems ensuring the security of the project.


The Metropolitan Revolution: How Cities and Metros Are Fixing Our Broken Politics and Fragile Economy by Bruce Katz, Jennifer Bradley

3D printing, additive manufacturing, Affordable Care Act / Obamacare, British Empire, business climate, carbon footprint, clean water, cleantech, collapse of Lehman Brothers, deindustrialization, demographic transition, desegregation, double entry bookkeeping, edge city, Edward Glaeser, global supply chain, immigration reform, income inequality, industrial cluster, intermodal, Jane Jacobs, jitney, Kickstarter, knowledge economy, lone genius, longitudinal study, Mark Zuckerberg, Masdar, megacity, Menlo Park, Moneyball by Michael Lewis explains big data, Network effects, new economy, New Urbanism, Occupy movement, place-making, postindustrial economy, purchasing power parity, race to the bottom, Richard Florida, Shenzhen was a fishing village, Silicon Valley, smart cities, smart grid, sovereign wealth fund, the built environment, The Death and Life of Great American Cities, the market place, The Spirit Level, Tony Hsieh, too big to fail, trade route, transit-oriented development, urban planning, white flight

On top of that, the Fund began to insist that its grantees connect with one another and collectively set broader goals for the region’s economic competitiveness. The Fund asked its grantees to create a logic model (increasingly common in the not-for-profit realm) “to show organization’s system/network collaboration work at two levels: 1) the level most applicable to your organization’s mission (e.g. the formation of a bioscience/information technology/ advanced energy industry cluster); and, if applicable, 2) the level pertaining to the overall economic competitiveness of the region (e.g. across economic intermediaries and/or other government, private or public sector partners, regardless of specific economic development focus).”28 The state of Ohio also provided a nudge, because it was increasingly insisting that entities apply for grants as members of a collaboration rather than individually.

Still others can be found in traditional exurban science parks like Research Triangle Park in Raleigh-Durham that are scrambling to urbanize to keep pace with workers’ preference for walkable communities and firms’ preference for proximity to other firms and collaborative opportunities. Innovation districts arise in disparate geographies with different economic drivers. But all of them draw from the best innovations in both industry cluster and place-making strategies to create well-defined communities packed with resources for firms, entrepreneurs, innovators, researchers, and residents. The theory behind business clusters is that the geographical concentration of interconnected firms and supporting institutions leads to more innovation and production efficiencies, shared inputs, 06-2151-2 ch6.indd 114 5/20/13 6:53 PM THE RISE OF INNOVATION DISTRICTS 115 thicker labor markets, and collective problem solving; the theory behind walkable urbanism is that dense, mixed-use neighborhoods with cultural, recreational, and retail amenities will attract highly educated, innovative, entrepreneurial individuals and benefit the neighborhood’s existing residents.

GDP by 2020 in order for America to maintain its position as a global leader in innovation.33 Respected business leaders such as Felix Rohaytn have been consistent champions of a national infrastructure bank that would use public resources to leverage private sector capital for a wide range of needed investments.34 Andrew Liveris, the CEO of Dow Chemical, has called for significant investment in STEM (science, technology, engineering, and mathematics) education and improved skills-training programs at community colleges so that workers can learn the skills necessary for high-paying advanced manufacturing jobs in the United States.35 Indeed, the common thread through all the stories captured in these pages is the virtuous cycle between idea generation, the commercialization of innovation, the iterative evolution of tech-driven advanced industries, the improvement of work skills to staff these productive sectors, and the export of our competitive products and services to the rest of the world. This kind of economy does not arise in a vacuum or because of the isolated actions of exceptional entrepreneurs. As our brief history of federalism shows, smart investment in the right kinds of public goods fuels the growth of advanced industry clusters and, by extension, the rest of the economy. In many respects, the question is not what to invest in, but how. In a fiscally constrained environment, where will the resources come from? One answer is to cut to invest.36 The federal tax code is replete with provisions that subsidize excessive consumption rather than production and wasteful rather than sustainable growth. The worst offender, the federal mortgage-interest deduction, is scheduled to grow steadily over the next five fiscal years.


The New Harvest: Agricultural Innovation in Africa by Calestous Juma

agricultural Revolution, Albert Einstein, barriers to entry, bioinformatics, business climate, carbon footprint, clean water, colonial rule, conceptual framework, creative destruction, double helix, energy security, energy transition, global value chain, income per capita, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), Joseph Schumpeter, knowledge economy, land tenure, M-Pesa, microcredit, mobile money, non-tariff barriers, off grid, out of africa, precision agriculture, Second Machine Age, self-driving car, Silicon Valley, sovereign wealth fund, structural adjustment programs, supply-chain management, total factor productivity, undersea cable

They include, for example, suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure. The existing literature suggests that there are three types of clusters in Africa: (1) the groundwork cluster, which improves the producers’ access to markets; (2) the industrializing cluster, which starts the process of specialization and differentiation; and (3) the complex cluster, which has already diversified and can begin accessing wider national and international markets.17 African clusters are in an early stage of development, meaning that most initiatives are contained within the groundwork and industrializing cluster types. The lack of complex clusters in an African context is partially due to the following structural barriers that should be addressed to further propel innovation and growth: underdeveloped regional trading networks in Africa; weak political and economic institutions; cluster occurrence in areas with an overabundance of labor, resulting in less effective labor-pooling initiatives; and premature market liberalization of large-scale industries, rendering it more difficult for small and medium-sized firms to compete with an abundance of imports.

Today five state- and provincial-level agricultural demonstration gardens and 21 nonpolluted vegetable facilities have been established. More than 700 new vegetable varieties have been introduced from over 30 countries and regions. Shouguang also hosts China’s largest vegetable seed facility aimed at developing new varieties. The facility is co-sponsored by the China Agricultural University. Over the years, vegetable production has increased, leading to the emergence of an agro-industrial cluster that has helped to raise per capita income for Shouguang’s previously impoverished rural poor.20 The cluster evolved through four distinctive phases. In the first emergence phase (1978–1984), Shouguang authorities launched programs for massive vegetable planting as a priority for the local development agenda. Shouguang had three main advantages that helped it to emerge as a leading vegetable cluster.

European Planning Studies 17, no. 2 (2009): 235–261. 17. E. Gálvez-Nogale, Agro-Based Clusters in Developing Countries: Staying Competitive in a Globalized Economy, Agricultural Management, Marketing and Finance Occasional Paper. (Rome: UN Food and Agriculture Organization, 2010). 18. M. E. Porter, “Clusters and the New Economics of Competition,” Harvard Business Review 76, no. 6 (1998): 77–90. 19. Z. Yingming, Analysis of Industrial Clusters in China (Boca Raton, FL: CRC Press, 2010). 20. This case study draws heavily from G. Wu, T. Tu, and S. Gu, Innovation System and Transformation of the Agricultural Sector in Notes 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 285 China, with the Case of Shouguang City (paper presented to the Globelics Conference on Innovation and Development, Rio de Janeiro, November 3–6, 2003); S.


Autonomous Driving: How the Driverless Revolution Will Change the World by Andreas Herrmann, Walter Brenner, Rupert Stadler

Airbnb, Airbus A320, augmented reality, autonomous vehicles, blockchain, call centre, carbon footprint, cleantech, computer vision, conceptual framework, connected car, crowdsourcing, cyber-physical system, DARPA: Urban Challenge, data acquisition, demand response, digital map, disruptive innovation, Elon Musk, fault tolerance, fear of failure, global supply chain, industrial cluster, intermodal, Internet of things, Jeff Bezos, Lyft, manufacturing employment, market fundamentalism, Mars Rover, Masdar, megacity, Pearl River Delta, peer-to-peer rental, precision agriculture, QWERTY keyboard, RAND corporation, ride hailing / ride sharing, self-driving car, sensor fusion, sharing economy, Silicon Valley, smart cities, smart grid, smart meter, Steve Jobs, Tesla Model S, Tim Cook: Apple, uber lyft, upwardly mobile, urban planning, Zipcar

Established automobile locations such as Detroit, Wolfsburg, Changchun, Solihull, Poissy or Martorell will have to create an environment beneficial to the establishment of start-ups and spin-offs. Regardless of the long and illustrious history of the automotive industry, they should quickly and consistently support the development of such digital activities without worrying about the industry’s traditions. DEVELOPING INDUSTRY CLUSTERS Autonomous mobility is basically leading to the convergence of industries (the automotive industry and the IT industry), which have so far had only loose connections. While in the United States, one of those industries has been located in Michigan and Ohio right from the start, the other became established in Silicon Valley. The convergence of these industries means that the manufacturing states are now worried about their future, while California is developing into the prime location for autonomous mobility.

., 303 304 Fleet(s), 349 350 management, 364 365 of robo-cars, 347 Forbes, Iain, 368 369 Ford, 6, 130, 180, 322, 332 333, 372 Ford Fiesta, 227 229 Ford Focus Electric, 27 Ford Sync system, 316 Forward collision warning, 4, 72, 193 4G networks, 65, 165, 377, 379, 403 Fraunhofer Society, 320 Frazzoli, Emilio, 112 Free time, 58 Fröhlich, Dieter, 148 Front and rear crash sensing, 78 Fuel economy, 297 299 Fuel-cell electric vehicles, 26 27 Gassmann, Oliver, 300 Geisi, 157 General Motors, 6, 40, 133 134, 136 137, 180, 281, 322, 332 333 Generation Y, 28 German Association of the Automotive Industry (VDA), 17 434 German car manufacturers, 367 368 Germany, A9 autobahn in, 134, 135 Gett app, 317 Gladbach, Peter, 148 Glaser, Erik, 198 Global positioning system (GPS), 141, 377 GPS-based satellite navigation systems, 104 navigation, 154, 263 Google, 9, 138, 173, 179, 182, 255, 327, 330, 334 338, 359 Android Auto, 285 cars, 54 mapping vehicles, 336 maps, 338 GPUs, 115 Gradual automation, 211 Grape harvest, 156 Greenwheels, 345 Gridlock, 22 Grove, Andy (Intel CEO), 222 GuideConnect system, 154 Hardware creators, 314 315 Hazard warnings, 137 HD map, 101, 105, 135 Head-up display, 279, 280, 281 Henriksson, Henrik, 161 Her (2013 movie), 291 Herbie (anthropomorphic racing beetle), 41 HERE, 137 138 live map, 101 Map Service, 101 Hiesinger, Heinrich (ThyssenKrupp CEO), 324 325 High-performance software, 281 Highly automated vehicles, 403 Highway assistant, 49 Highway chauffeur, 49 Index Highway pilot, 49 Hilly landscape of Istanbul, 385 Hockenheim racetrack, 227, 229 Honda Fit EV, 27 Hongqi HQ3, 379 Huang, Jen-Hsun (CEO of Nvidia), 6 Huawei, 130, 131, 372 Human dignity, 251, 253 Human driving, 21 facts about, 21, 23 traffic problems, 22 See also Autonomous driving Human senses, 279 Human voice, 292 Human-like speech, 292 Humanising driving, 102 technology, 292 293 Human machine interaction, 233, 277, 282, 288, 332 333 causes and consequences of driver distraction, 278 head-up display, 280 mechanics, 277 283 take-over request, 285 287 technology, 332 trust, 287 293 user interfaces, 283 285 vision and example of augmented-reality application, 279 280 Hyundai, 180, 372 IBM, 31 IBM Global Parking Survey, 191 192 IBM OS/2, 247 IEEE, 243 Image processing, 124 Imperative programming, 99 In-vehicle algorithms, 298 Individualised displays, 316 Index Industrial policy, 405 Industrialization process, 378 Industry clusters development, 405 406 Infinity Q50, 123 Influencers, 223 225 Information to passengers and to environment, 108 technology, 261 Infotainment devices, 142, 284, 285 Instant torque, 26 Insurance, 369 companies, 356 357, 358 Insurance industry business model, 353 355 liability, 355 356 new products, new services, 356 359 Intel, 35, 42, 125, 130 Intelligent connected vehicle, 261 262 Intelligent infrastructures, 299 301 International norm committees, 243 International Transport Forum of OECD, 349 Internet, 336 in cars, 136 connectivity, 320 giants, 138, 359 industry, 338 services, 19 iPhone, 7, 398 ISO 11270 Norm for LaneKeeping Assistance System, 244 ISO committees, 243 Israel, projects in, 374 375 Jaguar, 42, 130 Jaybridge Robotics, 181 Junge, Lutz, 115 435 K-City, 7 construction, 7 self-driving car test facility, 373 Keecker Robot, 291 Keller, David, 39 Kia, 6, 7 Kia Soul EV, 27 Kinze manufacturer, 154 Klout, 227 Knight Rider TV series, 41 Kodak, 111, 312 Kolmar, Martin, 256 Kolodge, Kristin, 289 Kred company, 227 Kremling, Hartmut, 131 Land Rover, 42, 130 Land use, 304 Landmarks, 93, 103 Lane localisation, 103 Lane modelling, 103 Lane-departure warnings, 72, 78 Lane-keeping assistance systems (LKAS), 244 Lantz, Brett, 99 100 Last-mile delivery, 168 Launching ride-and car-sharing services, 317 Le Super Electric Ecosystem (LeSee), 183 LeEco, 16, 183 Legal entities, 235 Legal framework, 57, 79, 246, 335, 378, 401 402 Legislation, 11, 172, 367, 401 Leisure time, 34, 212, 322 LeSee.

See Radio detection and ranging technology (Radar technology) Index Radio detection and ranging technology (Radar technology), 95, 126 Railways companies, 174 177 development, 32 network, 386 Rand Corporation, 6, 191 Real-time traffic, 137, 262 Real-world model, 92, 99, 105 106 of autonomous driving, 92 computer-driven driving, 108 data from passengers, 94 95 information to passengers and to environment, 108 lane-level and intersection mapping based on lidar, 105 lidar print cloud of blackfriars bridge, 104 mapping and localising, 101 104 planning and monitoring, 106 108 sensing and detecting, 95 100 sensors for vehicle dynamics information, 97 sensors in autonomous vehicles, 95 simulation, 91 92 un-fused sensor data of static and dynamic objects, 106 Redundant steering systems, 124 Reich, Andreas, 135, 136 Reinforcement learning, 114 Relaxation, 80, 212, 218 Reliability of electronic brake systems, 122 Remote vehicle monitoring, 261 Responsibility with increasing automation, 235 Ride-sharing, 22, 184, 206, 302 companies, 404 models, 343 services, 344, 384, 397 439 RIO platform, 167 Road(s), 103 experience management, 94 networks in Chinese megacities, 382 road-safety legislation, 192 and telecommunication networks, 379 traffic, 195 users, 108 Roadmap assistance systems, 71 77 categories of first autonomous vehicles, 82 development phases, 77 81 estimated revenues by product package, 77 expected worldwide sales of cars, 85 sales forecasts, 84 86 types of vehicles, 81 84 Roadside objects, 103, 107 Roadster, 27 Robo-cars, 12, 18, 19, 83, 298, 346 349, 347, 406 autonomous, 13 from Google, 335 336 Robots, 10, 58, 238 Roland Berger & Partners, 320 Rosa, Hartmut, 217 SAE J3016 document, 244 Safety, 192 193, 295, 302 304 autonomous vehicles enabling use of alternative fuels, 305 fuel economy, 297 299 functions, 74, 78 intelligent infrastructures, 299 301 land use, 304 operating costs, 301 302 relationship between road speed and road throughput, 296 vehicle throughput, 295 297 440 Sales forecasts, 84 86 Samuelsson, Hakan, 174 San Francisco Park, 301 Savarese, Domenico, 354 Savings effects from autonomous cars, 67 68 from autonomous trucks, 68 69 Scania truck, 162, 261 Schaeffler, 9 Science fiction, 3, 39 41 Scientists, 177 Security and Privacy in Your Car Act of 2017 (SPY Car Act of 2017), 145 Segway scooter, 221 Self-determination, 147, 148, 205 Self-driving cars, 22, 24, 25, 39, 61, 203, 223, 224, 233, 244, 261, 295, 299, 304, 337, 346, 395 features, 222 fleet of vehicles, 171 172, 349 grain trailer, 263 prototypes, 198, 377 taxis, 337, 345, 374 tractors, 8, 154, 155, 156 trucks, 66, 69, 70, 164, 165 vehicles, 153, 171, 175, 222, 225, 233, 354, 368, 379, 388 Self-learning system, 55, 238 Self-parking, 74, 288, 387 Sensing, 93 and detecting, 95 100 front crash-sensing system, 78 Sensor(s), 261, 374 375 applications, 132 in autonomous vehicles, 95 data, 165 for vehicle dynamics information, 97 Sensory perception, 279 Service creators, 316 319 Index Service-oriented business model, 397 398 Sharing economy fleets, 349 350 peer-to-peer service, 350 351 robo-cars, 346 349 sharing, pooling, 342 345 trend, 341 342 Shashua, Amnon, 93 Shenzhen, 386 389 Shneiderman’s eight golden rules of interface design, 283 Shoeibi, Houchan (President, Saint-Gobain Sekurit), 271 Shuttle service, 14, 383 Simulation, 91 92, 121, 345, 350 Singapore Autonomous Vehicle Initiative, 372 373 Smart-city challenges, 383 features, 406 Smartphone, 79, 216, 222, 317, 402, 407 app, 6, 28, 358, 374 industry, 127 signals, 136 unrestricted spread, 255 Social acceptance, 402 Social discourse, 402 Social exchange, 344 Social interaction communication, 198 200 cultural differences, 195 197 mobility as, 195 pedestrians in traffic in London, 196 pedestrians in traffic in Teheran, 197 Social networks, 7, 225, 227, 341 Society of Automotive Engineers (SAE), 47, 144, 243 245 Software, 93, 111, 117 121 creators, 315 316 errors, 249 testing, 120 Index Somerville, 386 389 Spotify, 141, 316, 319 Stahl, Florian, 113 115 Stakeholders car dealers, repair shops and insurance companies, 173 174 public opinion, politics, authorities and cities, 171 173 railway companies and mobility platforms, 174 177 scientists, 177 technology and telecommunication companies, 173 train station as transportation hub, 176 Standards, 241 characterisation, 242 243 development of technology, 241 242 dominant design, 247 248 State Farm Insurance, 316 State Route 91 in Southern California, 296 Statham, Jason (British actor), 226 Status-conscious customers, 204 Steer-by-wire, 122 solutions, 324 system, 123 Steering, 76, 91, 96, 108, 122 manoeuvre, 253, 286 redundant steering systems, 124 systems, 324 ThyssenKrupp, 123 wheel, 15, 43, 72, 76, 123, 238, 285 Stop-and-go traffic, 58, 206, 218, 295, 299 Suburbs, 317, 404 Supervised learning, 113 114 441 Suppliers, 17, 35, 41, 70, 77, 125, 171, 181 182, 243, 284, 312, 323, 333, 398, 405 Swedish car manufacturer, 355 Swiss Railway Corporation, 174 176 Systematic connectivity, 403 Tactile signals, 72, 108 Take-over request, 285 287 TaxiBots fleet, 350 Technical standards, 247, 371 Technological functions, 247 Technology, 173 companies, 55, 182 183 fusion, 330 334 partnerships, 318 Teheran, pedestrians in traffic in, 197 Telecommunication companies, 173 statement by telecommunications experts, 132 Telematics data, 356 devices, 142 services, 142 Ten-point plan for governments, 401 autonomous mobility establishment as industry of future, 404 405 autonomous vehicles integration in cities, 406 industry clusters development, 405 406 initiating social discourse, 402 investing in communication infrastructure, 403 404 investing in transport infrastructure, 402 403 linking public and private transport, 404 442 promoting research, development and education, 406 407 promoting tests with autonomous vehicles, 407 setting legal framework, 401 402 Terror (film), 252 Tesla, 5, 27, 53, 125, 179, 203 204 Texas A & M University, 69 Texas Institute for Urban Mobility, 68 Thune, John, 146 ThyssenKrupp Steering, 123, 324 325 Time, 187 192, 295, 302 304 autonomous vehicles enabling use of alternative fuels, 305 fuel economy, 297 299 intelligent infrastructures, 299 301 land use, 304 management, 215 218 operating costs, 301 302 relationship between road speed and road throughput, 296 vehicle throughput, 295 297 Time-critical, reliable applications, 132 Touareg, Volkswagen, 41 Toyota, 6, 181, 332 333 research into artificial intelligence and self-driving cars, 183 Toyota RAV4 EV, 27 Tractor’s steering system, 154 Traditional automobile companies, 53 Traditional automotive suppliers, 9, 125 Traffic, 389 and art, 389 390 flows control, 248 Index infrastructure, 58, 247 248, 377, 383, 386 laws, 148, 249 regulations, 44, 107, 195, 255, 373 situation, 6, 10, 21, 55, 65, 80, 93, 102, 160, 187, 206, 251, 316, 336, 365, 386 in United States, Canada, and Northern and Central Europe, 195 Traffic jams, 21, 63, 68, 189, 247, 286, 365, 388 assistants, 10, 53, 113 in daily commuter traffic, 365 time lost in, 187 Transparency, 147, 148, 167, 255 Transport cost, 166, 346, 347 Transport infrastructure, investing in, 402 403 Transportation system, 8, 158, 324, 384 385 Trendsetters, 225 Trojans, 142 Trolley problem, 250 Truck(s), 66, 160 of de Winter Logistics transport, 167 explanation of savings effects from autonomous, 68 69 potential savings from selfdriving cars and, 66 Trust, 287 293 TRW, 9 Twitter, 26, 141, 226, 227 Type-approval authorities, 172 law, 234 Uber, 174, 184, 311, 317, 343, 358 UK automotive industry, 368 Ultrasonic sensors, 126, 333 Un-fused sensor data of static and dynamic objects, 106 Index Unbox Therapy, 226 Underused assets, 341, 351 UNECE vehicle regulations, 234 Uniform legal framework, 246 Union Square in Somerville, 387 388 United Nations General Assembly, 192 United States, 63, 67, 367, 402 current fuel economy for cars, 59 implications of congestion in, 188 legal situation in, 234 235 Luxe start-up in, 319 projects in, 369 371 roads in, 86 traffic in, 195 University of Michigan Transportation Research Institute, 120 Urban Challenge, 42 Urban development Audi urban future initiative, 384 386 megacities, 381 383 Shenzhen, 386 389 smart-city challenges, 383 Somerville, 386 389 traffic and art, 389 390 “Urban Parangolé” project, 384 385 Urban traffic, 17, 54, 79, 120, 168, 183, 384 Urbanisation, 26, 29, 341, 381, 382 US Department for Energy, 69 US Department of Transportation, 69, 298, 355, 383 US Environmental Protection Agency, 191 US Federal Highway Administration, 296 US National Highway Traffic Safety Administration (NHTSA), 145 146, 370 443 US Tech Choice study, 288 Use cases for autonomous driving driving to hub, 213 scenarios, 211 215 time management, 215 218 User groups, 66 User interfaces, 283 285 Utilitarian approach, 250 251, 257 V-to-business application, 399 V-to-dealer communication, 25 V-to-everything communication, 375 V-to-home application, 399 services, 318 V-to-life applications, 318 Valeo, 182 Value chains Baidu, 338 conditions, 328, 330, 331 economics, 328, 329 Google, 334 338 redesign, 327 328 technology fusion, 330 334 Vehicle automation, 401 connectivity, 143 digitising and design, 265 267 management, 74 manufacturers, 313 platooning, 299 surroundings, 284 throughput, 295 297 types, 81 84 Vehicle as ecosystem, 263 264 degree of autonomy, 262 263 intelligent connected vehicle, 261 262 tractor to ecosystem, 262 Vehicle detection in autonomous vehicles, 95 challenges, 98, 100, 103 104 lidar, 95, 96 444 machine-learning algorithms, 96, 98 Radar, 95 for vehicle dynamics information, 97 Vehicle sketches and drafts, 267 Audi designers’ drafts of short-distance vehicles, 269 270 Audi designers’ sketches of long-distance vehicles, 268 Budii car concept, 272 273 driverless cars, 267 269 interview with Houchan Shoeibi, 271 272 Nissan Teatro for Dayz, 273 274 Volkswagen Sedric, 274 275 Vehicle-to-cloud communication (V-to-C communication), 129 Vehicle-to-infrastructure communication (V-to-I communication), 25, 74, 129, 134 135, 143, 182, 241, 243, 246, 247, 332, 369, 371, 377, 397, 399 Vehicle-to-pedestrian communication, 136 Vehicle-to-vehicle communication (V-to-V communication), 10, 25, 74, 129, 133 134, 182, 241, 243, 246, 247, 295, 298, 332, 369, 371, 375, 377, 397, 399, 403 Vehicle-to-vehicle connectivity, 143 Vehicle-to-X (V-to-X), 25, 135 136, 241, 369 370 applications, 101, 147 communication, 272 Version control, 120 Video cameras, 227, 333 Vienna Convention (1968), 11, 172, 234, 246, 254, 401 Index Virginia Tech Transportation Institute, 278 Viruses, 142 Visions, 57 energy, 59 60 lives, 57 58 objections, 61 63 people, 60 people doing in autonomous cars, 62 preconditions, 60 61 space, 58 59 time, 58 VisLab research vehicle, 42 Visteon, 284 Visual signals, 78, 247 Visualisations of mobility hubs for Boston and Washington, 385 Volkswagen, 6, 130, 317, 332 333 e-Golf, 27 group, 198 Sedric, 274 275 Volvo Car Corporation, 45, 117, 174, 181, 316, 322 von Pentz, Markwart, 155 Vulnerability of connected vehicles, 142 Warehouse transportation, 159 Waterfall approach, 330 Waze, real-time traffic mapping app, 374 375 Wickenheiser, Othmar (Professor of Design), 266 Wilson, Joe, 145 Wissmann, Matthias, 17 18 WLAN, 154 Work and welfare Jose Castillo statement, 364 365 prisoners of city, 366 traffic jams, 365 Index World Health Organization, 191, 354, 378 WWired article, 142 YouTube, 53, 227, 319, 323 YouTubers, 226 Yueting, Jia, 183 445 Zetsche, Dieter, 290 zFAS central processing unit, 118, 124, 125 zForce steering wheel, 285 Zimmer, John, 180 Zipcar, 344 Zurich Insurance Group, 354


pages: 271 words: 77,448

Humans Are Underrated: What High Achievers Know That Brilliant Machines Never Will by Geoff Colvin

Ada Lovelace, autonomous vehicles, Baxter: Rethink Robotics, Black Swan, call centre, capital asset pricing model, commoditize, computer age, corporate governance, creative destruction, deskilling, en.wikipedia.org, Freestyle chess, future of work, Google Glasses, Grace Hopper, industrial cluster, industrial robot, interchangeable parts, job automation, knowledge worker, low skilled workers, Marc Andreessen, meta analysis, meta-analysis, Narrative Science, new economy, rising living standards, self-driving car, sentiment analysis, Silicon Valley, Skype, social intelligence, Steve Jobs, Steve Wozniak, Steven Levy, Steven Pinker, theory of mind, Tim Cook: Apple, transaction costs

You might expect that it would cause people to make fewer phone calls, since they can easily speak to more people in person, but actually it causes them to make more calls. Or you might suppose that near-universal global connectivity would make physical proximity irrelevant, but as these researchers observe, “metropolitan Tokyo has roughly the same population as Siberia,” and while Siberians have the Internet and mobile phones, we don’t see a lot of innovation originating there. Research on industry clusters reinforces the point. Companies in the same industry—especially industries that rely most heavily on creativity and innovation—often locate in the same area. Besides Silicon Valley, famous examples include high-tech clusters in Research Triangle, North Carolina, and Austin, Texas. Everyone in those industries agrees that an important reason for locating in clusters is to make exchanging ideas easier.

. , 119–20 Hopper, Grace, 183 Howe, Robert, 24 Howze, Hamilton Hawkins, 100–101 Hughes, Chris, 51 humanities, 208–9 humans, 53 blank-slate view of, 38–39, 181 creativity in, 165–67, 175–77 as in charge, 42, 126 mechanical imitation of, 42, 80 and people-only work, 43–44 social interactions of, see social interactions and relationships universal qualities of, 39–40, 145 Humphrey, N. K., 38 IBM, 31, 211 Deep Blue, 30, 40 Watson, 1–3, 9–10, 18, 19, 161–63, 166 Industrial Revolution, 4, 10, 11, 53, 212 industry clusters, 173–74 Infor, 72 information technology, 6, 16–18, 48, 49, 53, 54, 72, 121, 184, 199–203 innovation, see creativity and innovation Intel, 5, 45 Intelligence Science Board, 134 Internet, 52, 62, 167, 171, 173 IQ, 123 of teams, 122–25, 178–80, 188–89 Iraq, 50–51, 113, 200–201 Battle of 73 Easting in, 107–11, 112 combat robots in, 23 Operation Desert Storm in, 107, 108 iRobot, 24, 41 irrational behavior, 25, 48–49, 132–35, 137, 140, 155 Isaacson, Walter, 131, 132 Jennings, Jean, 183 Jeopardy!


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

It is no longer foreordained that tropical countries will suffer unproductive agriculture and labor, nor that landlocked countries must underperform: Singapore and Malaysia are thriving modern economies near the equator, while Rwanda, Botswana, Kazakhstan, and Mongolia are landlocked countries enjoying unprecedented growth and development. A country cannot change where it is, but connectivity offers an alternative to the destiny of geography. Supply chains are thus a form of salvation for the bottom billions in developing countries, whose governments now bend over backward to attract them. To that end, the rise of special economic zones—districts or cities designed to attract investment into specific industry clusters—is the single most significant innovation in how dozens of countries are run since the creation of modern states. SEZs are both local anchors and global nodes. It is yet another sign of the shift from a political to a supply chain world that cities are increasingly named not after people or scenery—think Jefferson or Ocean View—but instead for what role they play in the global economy: Dubai Internet City, Bangladesh Export Processing Zones Authority, Cayman Enterprise City, Guangzhou Knowledge City, Malaysian Multimedia Super Corridor, and about four thousand more.

Urban purists have nostalgic visions of all cities resembling Jane Jacobs’s Washington Square Park. But while there is much to be adapted from neighborhoods that promote pedestrian civic life, many cities must urgently catch up to the present (and future) before they can become reflections of the past. CHINA’S SUPERSIZE SEZS No country has as many SEZs, new cities, and megacities as China. While SEZs have powered China’s export sector and growth, many were designed as single-industry clusters that proved vulnerable to global economic fluctuations—remember Dongguan, China’s Detroit. Just two coastal clusters of provinces centered on Shanghai in the east and Guangdong in the south have less than a quarter of China’s population but have been responsible for 80 percent of its exports. Over the next two decades, however, as China moves an estimated 300 million more people (especially non-hukou*2 registered migrants) into new districts of megacities (and entirely new cities) in interior areas, it wants to make sure that none are either too congested or too sprawling and all are large enough to be self-sustaining.

Investors, insurers, and asset managers have moved in a similar direction. Socially responsible investment funds actively screen a combined $4 trillion portfolio, looking beyond parent companies deep into their tens of thousands of suppliers to measure compliance with environmental standards. The Dutch fund manager RobecoSAM has co-developed a suite of Dow Jones Sustainability Indices covering two dozen industry clusters and issuing detailed reports on the practices of corporate leaders and their exposure to energy supply disruptions. Global reinsurance giants such as Swiss Re and Zurich Insurance insist that clients build sustainability into their supply chains or risk having their policies canceled. These are the pillars of an emergent “regulatory capitalism” that mixes government sanction and financial pressure to raise supply chain standards.


pages: 356 words: 91,157

The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class?and What We Can Do About It by Richard Florida

affirmative action, Airbnb, basic income, Bernie Sanders, blue-collar work, business climate, Capital in the Twenty-First Century by Thomas Piketty, clean water, Columbine, congestion charging, creative destruction, David Ricardo: comparative advantage, declining real wages, deindustrialization, Donald Trump, East Village, edge city, Edward Glaeser, failed state, Ferguson, Missouri, Gini coefficient, Google bus, high net worth, income inequality, income per capita, industrial cluster, informal economy, Jane Jacobs, jitney, Kitchen Debate, knowledge economy, knowledge worker, land value tax, low skilled workers, Lyft, megacity, Menlo Park, mortgage tax deduction, Nate Silver, New Economic Geography, new economy, New Urbanism, occupational segregation, Paul Graham, plutocrats, Plutocrats, RAND corporation, rent control, rent-seeking, Richard Florida, rising living standards, Ronald Reagan, secular stagnation, self-driving car, Silicon Valley, sovereign wealth fund, superstar cities, the built environment, The Chicago School, The Death and Life of Great American Cities, the High Line, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thorstein Veblen, trickle-down economics, Uber and Lyft, uber lyft, universal basic income, upwardly mobile, urban decay, urban planning, urban renewal, urban sprawl, white flight, young professional

Two key kinds of clustering take place in cities. First, and most obviously, is the clustering of certain firms and industries. The nineteenth-century economist Alfred Marshall identified the gains that occur when competing firms agglomerate. Paul Krugman won his Nobel Prize in part for his insights into the ways that clusters of firms shape our economic geography and power economic growth. Big, populous cities develop thriving industry clusters, such as finance in New York and London, motion pictures in LA, fashion in Milan and Paris, and technology in San Jose. But second, and perhaps even more importantly, skilled and ambitious people cluster in cities. Jane Jacobs originally showed how the clustering of diverse groups of people and skills power urban economies. The Nobel Prize–winning economist Robert Lucas formalized her insights about talent clustering into a theory of economic growth based on what he called human capital externalities.

population lost by, 30 as Sunbelt city, 192 Hoyt, Homer, 127–128 Hulchanski, David, 133 human capital, 21, 103, 208 immigrants, 21, 212 inclusionary zoning, 201–202 income basic minimum, 202, 208–210 housing costs as share of, 199, 221 inequality, 49, 82–87, 90–94, 112, 114, 116, 218 per capita, 220 raising, 202 redistribution, 209 segregation, 100–103, 100 (table), 101 (table), 102 (table), 111, 219 tax, negative, 202, 209–210 India, 41, 44 (table), 45, 170, 173 industry clustering of, 21, 33 deindustrialization and, xii, 5 globalization of, 18 See also high-tech industry inequality. See economic inequality infrastructure connectivity and, 181–183 investment in, 11, 28, 65, 183, 185, 189–190, 195–199, 212 politics and, 195 innovation, 15, 17, 45–46, 186, 193 economic growth and, 8, 10, 25–26, 55, 155, 166, 191, 200, 205, 215 economic inequality and, 49–50, 93 higher-paying service jobs promoting, 206 Integration Segment on Sustainable Urbanization, 167–168 investment gentrification shaped by, 65–67, 72 infrastructure, 11, 28, 65, 183, 185, 189–190, 195–199, 212 in parks and green spaces, 66 people-based, 11, 207–210 place-based, 11, 207–210 poverty tackled by, 11, 207–210 in schools, 66, 207–208 in transit, 28, 190, 196–201, 214 See also venture capital investment Istanbul, 41 Jackson, Kenneth, 190 Jacobs, Jane, 21, 178, 193 Jefferson, Thomas, 190 job growth, suburban crisis and, 160–161 journalism jobs, location of, 68–69 Kaine, Tim, 185 Kalen, Rob, 46 Kenney, Martin, 43 Khrushchev, Nikita, 151 knowledge hubs, 50, 123–124, 142, 157, 171 defined, 6 future of, 215 gentrification of, 56, 68 inequality in, 82, 85, 87–88, 109, 112 renters in, 200 knowledge-based economy, xv See also urbanized knowledge capitalism Kolko, Jed, 62 Krugman, Paul, 21, 189 LA.


pages: 626 words: 167,836

The Technology Trap: Capital, Labor, and Power in the Age of Automation by Carl Benedikt Frey

"Robert Solow", 3D printing, autonomous vehicles, basic income, Bernie Sanders, Branko Milanovic, British Empire, business cycle, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, collective bargaining, computer age, computer vision, Corn Laws, creative destruction, David Graeber, David Ricardo: comparative advantage, deindustrialization, demographic transition, desegregation, deskilling, Donald Trump, easy for humans, difficult for computers, Edward Glaeser, Elon Musk, Erik Brynjolfsson, everywhere but in the productivity statistics, factory automation, falling living standards, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Frank Levy and Richard Murnane: The New Division of Labor, full employment, future of work, game design, Gini coefficient, Hyperloop, income inequality, income per capita, industrial cluster, industrial robot, intangible asset, interchangeable parts, Internet of things, invention of agriculture, invention of movable type, invention of the steam engine, invention of the wheel, Isaac Newton, James Hargreaves, James Watt: steam engine, job automation, job satisfaction, job-hopping, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kickstarter, knowledge economy, knowledge worker, labor-force participation, labour mobility, Loebner Prize, low skilled workers, Malcom McLean invented shipping containers, manufacturing employment, mass immigration, means of production, Menlo Park, minimum wage unemployment, natural language processing, new economy, New Urbanism, Norbert Wiener, oil shock, On the Economy of Machinery and Manufactures, Pareto efficiency, pattern recognition, pink-collar, Productivity paradox, profit maximization, Renaissance Technologies, rent-seeking, rising living standards, Robert Gordon, robot derives from the Czech word robota Czech, meaning slave, Second Machine Age, secular stagnation, self-driving car, Silicon Valley, Simon Kuznets, social intelligence, speech recognition, spinning jenny, Stephen Hawking, The Future of Employment, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Malthus, total factor productivity, trade route, Triangle Shirtwaist Factory, Turing test, union organizing, universal basic income, washing machines reduced drudgery, wealth creators, women in the workforce, working poor, zero-sum game

Rebitzer, 2006, “Job-Hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster,” Review of Economics and Statistics 88 (3): 472–81. 46. R. J. Gilson, 1999, “The Legal Infrastructure of High Technology Industrial Districts: Silicon Valley, Route 128, and Covenants Not to Compete,” New York University Law Review 74 (August): 575. 47. S. Klepper, 2010, “The Origin and Growth of Industry Clusters: The Making of Silicon Valley and Detroit,” Journal of Urban Economics 67 (1): 15–32. 48. T. Berger and C. B. Frey, 2017b, “Regional Technological Dynamism and Noncompete Clauses: Evidence from a Natural Experiment,” Journal of Regional Science 57 (4): 655–68. 49. E. Moretti, 2012, The New Geography of Jobs (Boston: Houghton Mifflin Harcourt), 158–65. 50. C. T. Hsieh and E. Moretti, forthcoming, “Housing Constraints and Spatial Misallocation,” American Economic Journal: Macroeconomics. 51.

London: Palgrave Macmillan. Klein, M. 2007. The Genesis of Industrial America, 1870–1920. Cambridge: Cambridge University Press. Kleiner, M. M. 2011. “Occupational Licensing: Protecting the Public Interest or Protectionism?” Policy Paper 2011-009, Upjohn Institute, Kalamazoo, MI. Klemm, F. 1964. A History of Western Technology. Cambridge, MA: MIT Press. Klepper, S. 2010. “The Origin and Growth of Industry Clusters: The Making of Silicon Valley and Detroit.” Journal of Urban Economics 67 (1): 15–32. Kline, P., and E. Moretti. 2013. “Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority.” Quarterly Journal of Economics 129 (1): 275–331. Koch, C. 2016. “How the Computer Beat the Go Master.” Scientific American 27 (4): 20–23. Komlos, J. 1998.

., 175 “deaths of despair,” 256 Deaton, Angus, 8, 255 Declaration of Rights of 1689 (Bill of Rights), 79 Decree Tractor Company, 215 Deep Blue, 303 deep learning, 304 Deep Mind, 301 Defense Advanced Research Projects Agency (DARPA), 307 Defoe, Daniel, 68–69, 71, 84 democracy: legitimacy of, undermining of, 274; liberal, components of, 267; middle class and, 265–69; rise of, 265 Descartes, René, 94 Detroit, Michigan, 151, 257, 359 Devine, Warren, Jr., 153 Diamond, Jared, 64 Dickens, Charles, 117 digital communication, 360 digital industries, clustering of, 260 Diocletian, Roman Emperor, 65 disappearance of jobs, 250–52 “disciplined self” identity, 279 Disraeli, Benjamin, 112, 268 Dittmar, Jeremiah, 48 Domesday Book of 1086, 44 domestic system of production, 61, 71; downfall of, 8 Douglas, Paul H., 178–79 Drebbel, Cornelis, 52 drones, 342 Drucker, Peter F., 227 drudgery, end of, 193–98 Dust Bowl (1930s), 193, 204 Dutch Revolt, 81 Earned Income Tax Credit (EITC), 357 earnings gap, 230 economic incentive, lack of, 40 economic inequality, 22, 274, 277 economic parasites, 79 economic segregation, 356 economies of scale, factories taking advantage of, 110 Eden, Frederick, 116, 344 Edison, Thomas, 2, 52, 148, 189 education and technology, race between, 216 Eilmer of Malmesbury, 78 Eisenhower, Dwight, 307 electricity, early days of, 151 electrification, rural, 157 Electronic Numerical Integrator and Calculator (ENIAC), 230 elevator: arrival of, 14; automatic, 182 Elevator Industry Association, 182 elevator operators, vanishing of, 181, 227 Elizabeth I of England, Queen, 10, 54, 105 Empire State Building, 182 enabling technologies, 13, 227, 228 Engels, Friedrich, 70, 112, 249, 364 Engels’ pause, 131–37, 219; ending of, 287; polarization and, 266; return of, 243–48, 331; time of, 337 English craft guilds, fading power of, 87 entrepreneurial risk, 77 Facebook, 285 factory system, 8, 97, 126; annus mirabilis of 1769, 97; artisans, 98; child labor, 103, 104; coke smelting, 109; control over factory workforce, 104; cotton industry, 100; domestic industry, output growth in, 98; earlier modes of production, 97–98; economies of scale, factories taking advantage of, 110; electrification, 190, 195; Industrial Revolution, 97, 100–101; international trade, rise of, 99; inventions, 102; iron, railroads, and steam, 105–11; mechanical clock as enabling technology for, 47; railroad, arrival of, 108; rise of machines, 99–105; silk industry, beginnings of, 99; social savings of steam engine, 107; steam engine, economic virtuosity of, 107; working class, 98 Fairchild Semiconductor, 359 Fair Labor Standards Act of 1938, 200 farming: disappearance of jobs, 197, 203; mechanization of, 324; revolution, 168–69 feudal oligarchies, replacement of, 58 feudal order: political participation in, 265; rise of, 41, 62 Field, Alexander, 163, 170 Finley, Moses, 36 First Opium War, 88 Fisher, Alva J., 27 Fisher, Irving, 210 Ford, Henry, 141, 148, 167, 195, 365 Ford assembly lines, 18, 365 Ford Motor Company, 148, 199, 240 France, industrial development in, 84 Francis I, Holy Roman Emperor, 85 French Revolution, 90 Friedman, Milton, 355 Friedman, Thomas, 257 Fukuyama, Francis, 141, 264–65, 273, 343 Furman, Jason, 322 Galileo, 39, 52, 54, 94 Galor, Oded, 133 Gans, Joshua, 308 Garden of Eden, 191 Gaskell, Elizabeth, 117 Gaskell, Peter, 117–119, 135, 229, 249 Gates, Bill, 10 Gates paradox, 10, 11, 21 General Electric, 155, 157, 215, 289 General Motors assembly lines, 18 geography of new jobs, 256–63 George Washington Bridge, 167 Giffen, Robert, 132–33 gig mill, 10, 76, 86, 128 Gilded Age, 208 Gille, Bertrand, 39–40 Gini coefficient, 209, 245 Gladstone, William Ewart, 133 Glaeser, Edward, 257, 261, 263 globalization: automation, and populism, 277–85; backlash against, 365; clamping down on, 290; costs of, 366; facilitator of, 282; first wave of, 171; losers to, 21, 26; vanishing jobs and, 11 Glorious Revolution of 1688–89, 79, 82–83, 86 Golden Gate, 167 golden postwar years, 239 Goldfarb, Avi, 308 Goldin, Claudia, 213, 349 Goldin, Ian, 357 Gompers, Samuel, 279 Goodyear Tire, 199 Google, 305 Google Translate, 304 Goolsbee, Austan, 340 Gordon, Robert, 198, 202, 220, 272, 342 government regulations, 49, 137 Great Depression, 13, 143, 170, 211, 272 Great Divergence, 24; absence of economic revolution, 95; beginnings of industrialization, 94; factory system, evolution of (see factory system); Industrial Revolution (see Industrial Revolution); per capita income growth, 94; rise of the machines, 93; textile industry, Industrial Revolution begun in, 95 Great Escape, 8 “great exception” in American political history, 200 Great Migration, 205 Great Recession, 244, 284, 339, 343 Green, William, 174 Greif, Avner, 88, 92, 344 growth, culture of, 77 Gutenberg, Johannes, 47 Habsburg Empire, 85 Hammer, Michael, 326 Hansen, Alvin, 179, 342 Hargreaves, James, 102–3 Harlem, 1 Harper, Kyle, 37 Hawking, Stephen, 36 hazardous jobs, end of, 195, 198 health conditions, during Industrial Revolution, 114–15 Heaton, Herbert, 37 Heckman, James, 351 Heilbroner, Robert, 335 Hellenism, technological creativity of, 39 Henderson, Rebecca, 305, 331 Hero of Alexandria, 39 high school graduates, employment opportunities for, 237 high school movement (1910–40), 214 Himmelfarb, Gertrude, 268 Hindenburg disaster, 110 hinterland, cheap labor and housing of, 261 history deniers, 23 Hitler, Adolf, 12 Hobbes, Thomas, 8, 46 Hobsbawm, Eric, 7 Hoover, Herbert, 211 horseless age, 164 horse technology, 43, 163 Hounshell, David, 148, 150 household revolution, 155–56 housing, zoning and, 361–62 housing bubble, 282 human capital accumulation, indicators of, 133–34 Humphries, Jane, 103, 121 Hurst, Erik, 338 Huskisson, William, 109–10 Hyperloop, 363 IBM, 231 Ibsen, Henrik, 17 Ice Age, 64, 76 identity politics, 278 “idiocy of rural life,” 62–64 income(s): disparities of, 61; reshuffling of, 287 income tax (Britain), introduction of, 133 incubators, nursery cities serving as, 261 industrial bourgeoisie, 267 industrial capitalism, rise of, 218 industrial centers, rise of, 115 industrial espionage, 6 industrialization, first episode of, 16 industrial organization, fundamental principle of, 229 Industrial Revolution, 68, 70; alcoholism, 123; in Britain, 329; Britain’s edge during, 19; British income tax, introduction of, 133; capital share of income, 131–32; child labor, 123, 134; children as robots of, 8–9; classic years of, 113; closing decades of, 138, 266; conditions of England question, 116–25; consumer revolution preceding, 68; cotton yarn manufacturing at dawn of, 100–101; divergence between output and wages, 131; domestic system, description of, 118; economic consequences of, 17; Engels’ pause, 131–37; engine of, 73; Englishmen left off worse by, 364; factories existing before, 94; gig mills, 128; golden age of industry, 118; government regulation, 137; hand-loom weaver, as tragic hero of Industrial Revolution, 121; health conditions, 114–15; human capital accumulation, indicators of, 133–34; labor income share captured, 114; industrial centers, rise of, 115; jobs created by, 16; key drivers of, 342; labor unions, bargaining power of, 137; Lancashire riots, 125, 127; leading figures of, 70; literacy rates, 134; Luddites, 125–31; machinery question, concerns over, 116; machinery riots, 127, 130; macroeconomic impact of, 94; material living conditions, decline of, 114, 120–21; mobility of workers, 122; obsolescence of worker skills, 124; origins of, 6, 80–91; political situation of workers, 129; reason for beginnings in Britain, 75; recipients of the gains of, 113; standard of living issue, 121; steam power, impact of on aggregate growth, 136; symbolic beginning of, 97; tax revenue, 133; technical change during closing decades, 139; technological progress, attitudes toward, 112; trajectory of inequality in Britain during, 217; true beginnings of, 100; unemployment, 113, 117, 125; victims of, 9; Victorian Age, machinery critics of, 119; wave of gadgets, 330; working poor, 113 inequality: age of, beginnings of, 62; Neolithic rise in, 63 inflation, 294 information technology, first revolution in, 47 inner-city ghettos, problems in, 258 innovation, 257; nurseries for, 261 innovation gap, 352 in-person service jobs, 235 inspiration without perspiration, 51–59 installment credit, 159, 167 institutional divergence (colonial Europe), 81 Intel, 359 interchangeable parts: concept of, 149; pioneering of, 74 International Labour Organization (ILO), 181 International Monetary Fund (IMF), 245 international trade, rise of, 67, 69, 99 Internet of things, 22 internet traffic: spread of, 328; worldwide, 303 inventions: agriculture, 54, 62; assembly line, 141, 365; barometer, 52, 59; bicycle, 165; camel saddle, 77; carding machine, 102; of classical times, 39; coke smelting, 108; electric starter, 166; iron, 36; light bulb, 2; mariner’s compass, 50; movable-type printing press, 47; nailed horseshoe, 43; navigable submarine, 52; personal computer (PC), 231; power loom, 105; spinning jenny, 102; steam digester, 55; steam engine, 52, 76; stirrup, 43; stocking-frame knitting machine, 54, 76; submarine, 73; telescope, 59; transistor, 231; typewriter, 161–62; washing machine, 27; water frame, 102; waterwheel, 38; wheel, 35 Iron Age, 35 iron laws of economics, 206 James I of England, King, 52 Japan, ascent of, 289 JD. com, 313 Jeffersonian individualism, 200 Jenkinson, Robert, 2nd Earl of Liverpool, 130, 289 Jerome, Harry, 13, 154, 198, 328 job demand, creation of, 262 Johnson, Lyndon, 184 Joyce, James, 16 Kaldor, Nicholas, 5, 205 Kasparov, Garry, 301 Katz, Lawrence, 135, 213, 245, 349 Kay-Shuttleworth, James, 117, 229 Kennedy, John F., 183 Kettering, Charles, 166 Keynes, John Maynard, 332, 334 King, Gregory, 68 knowledge work, 235, 259 Komlos, John, 115 Korea, ascent of, 289 Korean War, 180 Krugman, Paul, 12 Kuznets, Simon, 5, 206–7 Kuznets curve, 207, 212 labor, division of, 228 labor multiplier, 347 Labor Party, rise of, 268 labor productivity, gap between worker compensation and, 244 labor unions, 212; bargaining power of, 201, 277; legalization in Britain, 190 laissez-faire regime, 25, 267 lamplighters, 1–2 Lancashire riots of 1779, 90 landed aristocracy, 83 Landes, David, 9, 112, 118, 134, 343 Land-Grant College Act of 1862, 364 Latin Church, oppression of science by, 79 laundress, vanishing of, 27, 160 Lee, William, 10, 54 Lefebvre des Noëttes, Richard, 43 Leonardo da Vinci, 38, 51, 73 Leontief, Wassily, 20, 338, 343 Levy, Frank, 237, 302, 323 liberal democracy, components of, 267 Lindert, Peter, 61, 68, 114, 207, 211, 269, 271 literacy, demand for, 76 Liverpool-Manchester Railway, 109 lobbying, corporate spending on, 275 Locke, John, 83 Lombe, John, 52, 99–100 Lombe, Thomas, 6, 100 London Steam Carriage, 109 longshoremen, vanishing of, 172 Louis XIV of France, King, 84 Luddites, 9, 18, 125–31, 341; imprisoned, 20; new, 286–92; riots, 89, 92; uprisings, 265 machinery question, 116, 174–88; adjustment problems, 177; automation, employment effects of, 180; computers, automation anxiety concerning, 183; elevator operators, 181–82; musicians, displaced, 177–78 machinery riots, 9, 265, 289; absence of (America), 190; Britain, 90 Maddison, Angus, 66 Magellan, Ferdinand, 51, 67 majority-rule voting system, 270 Malthus, Thomas Robert, 4, 64, 73, 316, 345 Malthusian logic, 345 Malthusian trap, escape of, 65 Manhattan Project, 74 Manpower Training and Development Act (MDTA), 353 Mantoux, Paul, 97, 101, 126 Manufacture des Gobelins, 84 Manufacture Royale de Glaces de Miroirs, 84 manufacturing: blue-collar jobs, disappearance of, 251, 254; American system of manufacturing, pioneers of, 149; factory electrification, 151–55; interchangeable parts, concept of, 149 Margo, Robert, 135, 145 markets, integration of, 86 Marx, Karl, 26, 47, 98, 239, 364 Massey, Douglas, 256 Massive Open Online Courses (MOOCs), 354 mass production, 147–73; American system of manufacturing, pioneers of, 149; containerization, 171–72; direct drive, 153; factory electrification, 151–55; horseless age, 164; household revolution, 156; industries, 18; installment credit, 159, 167; interchangeable parts, concept of, 149; Model T, 167; unit drive, 153 Maurice of Nassau, Prince of Orange, 59 Maybach, Wilhelm, 166 McAfee, Andrew, 303, 339 McCloskey, Deirdre, 70 McCormick, Cyrus, 149, 168 McLean, Malcom, 171 mechanics, Galileo’s theory of, 53 mechanization, age of automation vs. age of, 227 median voter theories, 270 medieval Christianity, 78 mercantilism, flawed doctrine of, 83 Mesopotamia, 35 metals, discovery and exploitation of, 35 Michigan Antitrust Reform Act of 1985, 359 Microsoft, 306 Middle Ages: agricultural technology in, 42; feudal order of, 57; onset of, 41; technical advances of, 50; traditional crafts of, 68 middle class, descent of, 223–25; artificial intelligence, 228; automation, adverse consequences of, 240; cognitive divide, 238–43; computer-controlled machines, jobs eliminated by, 228; computers, 228–38; corporate profits, 244; division of labor between human and machine, 228; earnings gap, 230; Engels’ pause, return of, 243–48; golden postwar years, 239; Great Recession, 244; high school graduates, employment opportunities for, 237; industrial organization, fundamental principle of, 229; in-person service jobs, 235; knowledge workers, 235; labor productivity, gap between worker compensation and, 244; mechanization, age of automation vs. age of, 227; multipurpose robots, 242; rule-based logic, 228; Second Industrial Revolution, elimination of jobs created for machine operators during, 228; “symbolic analysts,” 235 middle class, triumph of, 218–222; agriculture, mechanization of, 189; automotive industry, 202; baby boom, 221; blue-collar Americans, unprecedented wages of, 220; child labor, as opportunity cost to education, 214; collective bargaining, 192; corporate giants, 208; corporate paternalism, 200; education and technology, race between, 216; end of drudgery, 193–98; Engels’ pause, 219; factory electrification, 190, 195; farming jobs, decline of, 197, 203; Great Depression, 211; “great exception” in American political history, 200; Great Migration, 205; hazardous jobs, end of, 195, 198; high school movement (1910–40), 214; Jeffersonian individualism, 200; Kuznets curve, 207, 212; labor unions, 201, 212; leveling of American wages, 211; machinery riots, absence of, 190; middle class, emergence of, 192, 292; national minimum wage, introduction of, 211; new consumer goods, Americans’ growing appetite for, 203; New Deal, 200, 212; public schooling, 214; Second Industrial Revolution, 209, 217; skill-biased technological change, 213; tractor use, expansion of, 196; urban-rural wage gap, 209; Wall Street, depression suffered by, 211; welfare capitalism, 198, 200; welfare state, rise of, 221; white-collar employment, 197, 218 Middle East, 77 Milanovic, Branko, 217, 245 mining, 194, 197 Minoan civilization, 34 mobile robotics, 342 mobility, demands for, 348 mobility vouchers, 360 Model T, 167 modern medicine, rise of, 22 Mokyr, Joel, 19, 52, 76–77, 79 Moore’s Law, 107, 301, 304 Moravec’s paradox, 236 Moretti, Enrico, 258, 262–63, 360 Morgan, J.


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Hit Makers: The Science of Popularity in an Age of Distraction by Derek Thompson

Airbnb, Albert Einstein, Alexey Pajitnov wrote Tetris, always be closing, augmented reality, Clayton Christensen, Donald Trump, Downton Abbey, full employment, game design, Gordon Gekko, hindsight bias, indoor plumbing, industrial cluster, information trail, invention of the printing press, invention of the telegraph, Jeff Bezos, John Snow's cholera map, Kodak vs Instagram, linear programming, Lyft, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Metcalfe’s law, Minecraft, Nate Silver, Network effects, Nicholas Carr, out of africa, randomized controlled trial, recommendation engine, Robert Gordon, Ronald Reagan, Silicon Valley, Skype, Snapchat, statistical model, Steve Ballmer, Steve Jobs, Steven Levy, Steven Pinker, subscription business, telemarketer, the medium is the message, The Rise and Fall of American Growth, Uber and Lyft, Uber for X, uber lyft, Vilfredo Pareto, Vincenzo Peruggia: Mona Lisa, women in the workforce

Third, since ABBA’s heyday in the 1970s, Sweden has built a national industry dedicated to writing, producing, and selling pop music, which attracts some of the best pop talent in the world—like a gifted Indian American teenager from Austin, Texas. Economists sometimes call this magnetizing effect “agglomeration,” and it’s why similar companies have a tendency to congregate in the same cities.10 When geographers at Uppsala University studied Sweden’s music industry, they said that it followed a model that economist Michael Porter calls “industrial clustering.” The same way that talented entrepreneurs go to San Francisco to be around people like them in the software industry, songwriters gravitate to Swedish power centers. “In Sweden, I met up with RedOne, Lady Gaga’s songwriter, and his whole crew,” Kotecha recalled. “Through another connection there, I met Simon Cowell and became involved with The X-Factor, which made me the lead coach and songwriter for One Direction.

Edgar, 157 horror movies, 112 Hoskins, Valerie, 198, 199 How to Win Friends and Influence People (Carnegie), 93–94 The Hum: Call and Response in African American Preaching (Crawford), 91 Hume, David, 28 humor, 144–49 Huron, David, 82–85, 83n, 84n ideas, spread of, 7–9 Iger, Bob, 299 iHeart Media, 35 imitation, 178–79 impressionists, 19–27, 312n22. See also Caillebotte, Gustave individualism, 137 industrial clustering, 75 industrialization, 137 Influence (Cialdini), 142, 144, 147 influencers, 223 information cascades, 170–71, 179, 183, 193, 195 information sharing, 211 In Praise of Scribes (Trithemius), 150 inside jokes, 210, 213, 215 Instagram, 8–9, 152, 159, 229 Internet and brand power, 41 and broadcast diffusion, 189–190 and distribution of content, 10, 301 and information cascades, 195 and news consumption, 265–66, 291, 292 and online-offline gap, 229 usage trends in, 288 Invisible Cities (Calvino), 1, 14–15 iPhones, 231–33 James, E.


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The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World by Jeremy Rifkin

"Robert Solow", 3D printing, additive manufacturing, Albert Einstein, American ideology, barriers to entry, borderless world, carbon footprint, centre right, collaborative consumption, collaborative economy, Community Supported Agriculture, corporate governance, decarbonisation, distributed generation, en.wikipedia.org, energy security, energy transition, global supply chain, hydrogen economy, income inequality, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, job automation, knowledge economy, manufacturing employment, marginal employment, Martin Wolf, Masdar, megacity, Mikhail Gorbachev, new economy, off grid, oil shale / tar sands, oil shock, open borders, peak oil, Ponzi scheme, post-oil, purchasing power parity, Ray Kurzweil, Ronald Reagan, scientific worldview, Silicon Valley, Simon Kuznets, Skype, smart grid, smart meter, Spread Networks laid a new fibre optics cable between New York and Chicago, supply-chain management, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, transaction costs, trickle-down economics, urban planning, urban renewal, Yom Kippur War, Zipcar

Cambridge: Cambridge University Press, p. 133. 9.Ibid., p. 145. 10.Harl, K. (2001). Early Medieval and Byzantine Civilization: Constantine to Crusades. Encarta Online Encyclopedia. Retrieved from www.tulane.edu/~august/h303/byzantine.html. 11.ICF Consulting. (2005, July). Alamo Regional Industry Cluster Analysis. San Francisco: Author; Laitner, S., & Goldberg, M. (1996). Planning for Success: An Economic Development Guide for Small Communities. Washington, DC: American Public Power Association. 12.ICF Consulting. (2005, July). Alamo Regional Industry Cluster Analysis. San Francisco: Author. 13.Laitner, J. A., & Goldberg, M. (1996). Planning for Success: An Economic Development Guide for Small Communities. Washington, DC: American Public Power Association. 14.Ibid., p. 12. 15.Ibid. 16.Ibid., p. 13. 17.Clinton, B. (2010, September 19).


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Six Degrees: The Science of a Connected Age by Duncan J. Watts

Berlin Wall, Bretton Woods, business process, corporate governance, Drosophila, Erdős number, experimental subject, fixed income, Frank Gehry, Geoffrey West, Santa Fe Institute, industrial cluster, invisible hand, Long Term Capital Management, market bubble, Milgram experiment, MITM: man-in-the-middle, Murray Gell-Mann, Network effects, new economy, Norbert Wiener, Paul Erdős, peer-to-peer, rolodex, Ronald Coase, scientific worldview, Silicon Valley, supply-chain management, The Nature of the Firm, The Wealth of Nations by Adam Smith, Toyota Production System, transaction costs, transcontinental railway, Vilfredo Pareto, Y2K

The Third Way An indication of Chuck’s understanding of the problem at the time we started working together is given in the following: Helper, S., MacDuffie, J. P., and Sabel, C. F. Pragmatic collaborations: Advancing knowledge while controlling opportunism. Industrial and Corporate Change, 9(3), 443–488 (2000). Sabel, C. F. Diversity, not specialization: The ties that bind the (new) industrial district. In Quadrio Curzio, A., and Fortis, M. (eds.), Complexity and Industrial Clusters: Dynamics and Models in Theory and Practice (Physica-Verlag, Heidelberg, 2002). Coping with Ambiguity Perhaps the clearest exposition of the conundrum faced by firms in ambiguous environments, and their need to be both adapted and adaptable, is that by David Stark in his work on heterarchies: Stark, D. C. Recombinant property in East European capitalism. American Journal of Sociology, 101(4), 993–1027 (1996).

No, really (working paper, available on-line http://www.darkridge.com/~jpr5/doc/gnutella.html, 2000). Rogers, E. The Diffusion of Innovations, 4th ed. (Free Press, New York, 1995). Romer, P. Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002–1034 (1986). Sabel, C. F. Diversity, not specialization: The ties that bind the (new) industrial district. In Quadrio Curzio, A., and Fortis, M. (eds.), Complexity and Industrial Clusters Dynamics Models in Theory and Practice (Physica-Verlag, Heidelberg, 2002). Sachtjen, M. L., Carreras, B. A., and Lynch, V. E. Disturbances in a power transmission system. Physical Review E, 61(5), 4877–4882 (2000). Sah, R. K., and Stiglitz, J. E. The architecture of economic systems: Hierarchies and polyarchies. American Economic Review, 76(4), 716–727(1986). Sattenspiel, L., and Simon, C.


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The Long Boom: A Vision for the Coming Age of Prosperity by Peter Schwartz, Peter Leyden, Joel Hyatt

American ideology, Asian financial crisis, Berlin Wall, centre right, computer age, crony capitalism, cross-subsidies, Deng Xiaoping, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, financial innovation, hydrogen economy, industrial cluster, informal economy, intangible asset, Just-in-time delivery, knowledge economy, knowledge worker, life extension, market bubble, mass immigration, megacity, Mikhail Gorbachev, Nelson Mandela, new economy, oil shock, open borders, Productivity paradox, QR code, Ronald Reagan, shareholder value, Silicon Valley, Steve Jobs, the scientific method, upwardly mobile, Washington Consensus, Y2K

A thriving textile and fashion industry could be built around distinct clusters scattered across the continent. Each African cluster would be known globally for its particular offerings of textiles or clothing. And with the new decentralized but interconnected technologies, they could integrate into the mainstream global economy quite quickly. These clusters would not necessarily be limited to apparel industries. Clusters could develop in any area in which a region excels. Africa has always been valued for its natural resources. In fact, the attraction of those resources was behind the colonial occupations of 142 Ike Lowq BOOM the nineteenth and the first half of the twentieth centuries. By the time Africans controlled their own countries, many of the resources were commodities subject to the vagaries of world markets, with very thin profit margins.


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The Mesh: Why the Future of Business Is Sharing by Lisa Gansky

Airbnb, Amazon Mechanical Turk, Amazon Web Services, banking crisis, barriers to entry, carbon footprint, Chuck Templeton: OpenTable:, cloud computing, credit crunch, crowdsourcing, diversification, Firefox, fixed income, Google Earth, industrial cluster, Internet of things, Joi Ito, Kickstarter, late fees, Network effects, new economy, peer-to-peer lending, recommendation engine, RFID, Richard Florida, Richard Thaler, ride hailing / ride sharing, sharing economy, Silicon Valley, smart grid, social web, software as a service, TaskRabbit, the built environment, walkable city, yield management, young professional, Zipcar

No wonder that, even in the United States, walkable cities and neighborhoods designed along the lines of European “café society” have become more desirable. Real estate listings feature “walk scores.” There’s even a noticeable reverse migration from American suburbs back to the cities. Urban areas with greater density are also fertile ground for clusters of related Mesh businesses to take root and grow. Michael Porter at Harvard studies industry clusters, such as shoes in Milan, publishing in New York, film in Mumbai, and technology in Silicon Valley. In the Harvard Business Review he writes, “Clusters are important, because they allow companies to be more productive and innovative than they could be in isolation. [Clusters] reduce the barriers to entry for new business creation relative to other locations.” The proximity of businesses in an urban cluster speeds up sharing of expertise and labor pools, makes opportunities easier to spot, and promotes cooperation around common market goals.


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Company: A Short History of a Revolutionary Idea by John Micklethwait, Adrian Wooldridge

affirmative action, barriers to entry, Bonfire of the Vanities, borderless world, business process, Charles Lindbergh, Corn Laws, corporate governance, corporate raider, corporate social responsibility, creative destruction, credit crunch, crony capitalism, double entry bookkeeping, Etonian, hiring and firing, industrial cluster, invisible hand, James Watt: steam engine, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, knowledge economy, knowledge worker, laissez-faire capitalism, manufacturing employment, market bubble, mittelstand, new economy, North Sea oil, race to the bottom, railway mania, Ronald Coase, Silicon Valley, six sigma, South Sea Bubble, Steve Jobs, Steve Wozniak, strikebreaker, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade route, transaction costs, tulip mania, wage slave, William Shockley: the traitorous eight

It was for much the same reason that the Internet business found a natural home in northern California. The late 1990s saw an unprecedented number of young Valley firms going public. In 2000 alone, some $20 billion of venture capital was pumped into the region. By then, the Internet bubble was already bursting. Even allowing for that (and all the Valley’s other drawbacks, such as high house prices, terrible traffic, and unrelenting ugliness), the region still counted as the most dynamic industry cluster in the world. By 2001, Silicon Valley provided jobs for 1.35 million people, roughly three times the figure for 1975, its productivity and income levels were roughly double the national averages, and it collected one in twelve new patents in America.21 Silicon Valley changed companies in two ways. The first was through the products it made. At the heart of nearly all of them was the principle of miniaturization.


The Techno-Human Condition by Braden R. Allenby, Daniel R. Sarewitz

airport security, augmented reality, carbon footprint, clean water, cognitive dissonance, coherent worldview, conceptual framework, creative destruction, Credit Default Swap, decarbonisation, different worldview, facts on the ground, friendly fire, industrial cluster, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jane Jacobs, land tenure, life extension, Long Term Capital Management, market fundamentalism, mutually assured destruction, nuclear winter, Peter Singer: altruism, planetary scale, prediction markets, Ralph Waldo Emerson, Ray Kurzweil, Silicon Valley, smart grid, source of truth, stem cell, Stewart Brand, technoutopianism, the built environment, The Wealth of Nations by Adam Smith, transcontinental railway, Whole Earth Catalog

Though definitions and dates are somewhat loose, major waves stand out, powered by technological clusters: railroads and steam technology from about 1840 to 1890, steel, heavy engineering, and electricity from about 1890 to 1930, automobiles, petroleum, and aircraft from about 1930 to 1990, and information and communication technology, with its computerization of the economy, from about 1990 onward (although, as we will discuss, this may be just the tip of the iceberg). And with each wave of innovation came disturbing and unpredictable institutional, organizational, economic, cultural, and political changes. Specialized professional managerial systems and associated industrial efficiency techniques ("Taylorism") characterized the heavy-industry cluster; the automotive cluster could not have occurred without a petroleum industry and a mass consumer credit system; a far more networked, flexible industrial and financial structure began to evolve during the information cluster, and so on. The railroad story makes several general principles of technological evolution crystal clear. First, because technological systems can and often do destabilize existing institutions and power relationships, they will be opposed by many who see their place in the world and their worldviews under siege and who quite rationally seek to resist.


pages: 209 words: 80,086

The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton

active measures, affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, disruptive innovation, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial cluster, industrial robot, intangible asset, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, Paul Samuelson, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shared worldview, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor, zero-sum game

Notes to Pages 92–105 177 7. Robert Hayes and William Abernathy, “Managing Our Way to Economic Decline,” Harvard Business Review (July/August 1980): 70. See also Robert Reich, The Next American Frontier (New York: Penguin, 1984); Bennett Harrison and Barry Bluestone, The Great U-Turn (New York: Basic Books, 1988); Lester Thurow, Head-to-Head (London: Nicholas Brealey, 1993); William Lazonick, “Industry Clusters versus Global Webs: Organizational Capabilities in the American Economy,” Industrial and Corporate Change, 2 (1993): 1–24. 8. Hayes and Abernathy, “Managing Our Way to Economic Decline,” 68. In Fordist plants, although there had been a clear division between those who did the company’s thinking and those who did the company’s producing, the former often had experience of the industry in which they had based their careers. 9.


pages: 310 words: 85,995

The Future of Capitalism: Facing the New Anxieties by Paul Collier

"Robert Solow", accounting loophole / creative accounting, Airbnb, assortative mating, bank run, Berlin Wall, Bernie Sanders, bitcoin, Bob Geldof, bonus culture, business cycle, call centre, central bank independence, centre right, Commodity Super-Cycle, computerized trading, corporate governance, creative destruction, cuban missile crisis, David Brooks, delayed gratification, deskilling, Donald Trump, eurozone crisis, financial deregulation, full employment, George Akerlof, Goldman Sachs: Vampire Squid, greed is good, income inequality, industrial cluster, information asymmetry, intangible asset, Jean Tirole, job satisfaction, Joseph Schumpeter, knowledge economy, late capitalism, loss aversion, Mark Zuckerberg, minimum wage unemployment, moral hazard, negative equity, New Urbanism, Northern Rock, offshore financial centre, out of africa, Peace of Westphalia, principal–agent problem, race to the bottom, rent control, rent-seeking, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley ideology, sovereign wealth fund, The Wealth of Nations by Adam Smith, theory of mind, too big to fail, trade liberalization, urban planning, web of trust, zero-sum game

The productivity pay-offs from this easy connectivity were staggering, and many cities developed a cluster of firms in some particular industry that enabled them to be world-beating. My own home city of Sheffield established such a constellation of specialist steel manufacturers, and a correspondingly highly specialized workforce. By around 1980 the typical worker in these cities was astonishingly more productive than workers in those parts of the world that lacked industrial clusters. Since incomes tend to correspond to productivity, people were astonishingly more prosperous too. Starting around 1980, this situation was disrupted by two coincident but distinct processes: an explosion in knowledge, and globalization. The explosion in knowledge turbo-charged the old relationship between specialization and urbanization, leading to spectacular growth in the largest cities.


pages: 332 words: 91,780

Starstruck: The Business of Celebrity by Currid

"Robert Solow", barriers to entry, Bernie Madoff, Donald Trump, income inequality, index card, industrial cluster, Mark Zuckerberg, Metcalfe’s law, natural language processing, place-making, Ponzi scheme, post-industrial society, prediction markets, Renaissance Technologies, Richard Florida, Robert Metcalfe, rolodex, shareholder value, Silicon Valley, slashdot, transaction costs, upwardly mobile, urban decay, Vilfredo Pareto, winner-take-all economy

This argument misses the real point of these micro versions of stardom, which is that they exist in their own social and economic stratospheres. 4. Relative celebrity emerges through similar channels as other forms of clustering. Within the economic geography literature, scholars have noted that particular social and economic phenomena occur when a concentration of like-minded labor pools, industries, and resources locate, whether Detroit’s auto industry or Silicon Valley’s technology sector. For an analysis of this phenomenon in industrial clustering, see the original treatise, Marshall’s Principles of Economics. For a more contemporary analysis of clusters, see Porter, “Clusters and the Economics of Competition.” The small-world network phenomenon in the fields of mathematics, physics, and sociology demonstrates similar patterns to those found in relative-celebrity social groups. In small worlds, people within a network are not necessarily physically proximate but most can be reached by every other person within the network through a few small steps.


The Making of a World City: London 1991 to 2021 by Greg Clark

Basel III, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, British Empire, business climate, business cycle, capital controls, carbon footprint, congestion charging, corporate governance, cross-subsidies, deindustrialization, Dissolution of the Soviet Union, East Village, Fall of the Berlin Wall, financial innovation, financial intermediation, global value chain, haute cuisine, housing crisis, industrial cluster, intangible asset, Kickstarter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, Masdar, mass immigration, megacity, New Urbanism, offshore financial centre, Pearl River Delta, place-making, rent control, Robert Gordon, Silicon Valley, smart cities, sovereign wealth fund, trickle-down economics, urban planning, urban renewal, working poor

In particular, it sought ways to transfer R&D taking place in London’s universities into business opportunities, and to provide tools for training providers so that they could help small businesses incorporate innovative practices into their daily operations. Its major proposals included a London Innovation Strategy Partnership, a citywide Knowledge Angels network and a London Venture Finance Network to coordinate SME funding in key industry clusters. The strategy helped draw attention to the need for stronger London policies for entrepreneurship and technology. The creation in 2000 of the GLA, an organisation unlike any that had previously existed in any region of the UK, boosted London’s spatial planning powers 54 The evolution of London, 1991 to 2015 and required the capital to produce economic and transport strategies. The multifaceted growth coalition which had been so pivotal to generating a global vision for London receded somewhat.


pages: 372 words: 89,876

The Connected Company by Dave Gray, Thomas Vander Wal

A Pattern Language, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, Atul Gawande, Berlin Wall, business cycle, business process, call centre, Clayton Christensen, commoditize, complexity theory, creative destruction, David Heinemeier Hansson, disruptive innovation, en.wikipedia.org, factory automation, Googley, index card, industrial cluster, interchangeable parts, inventory management, Jeff Bezos, John Markoff, Kevin Kelly, loose coupling, low cost airline, market design, minimum viable product, more computing power than Apollo, profit maximization, Richard Florida, Ruby on Rails, self-driving car, shareholder value, side project, Silicon Valley, skunkworks, software as a service, South of Market, San Francisco, Steve Jobs, Steven Levy, Stewart Brand, The Wealth of Nations by Adam Smith, Tony Hsieh, Toyota Production System, Vanguard fund, web application, WikiLeaks, Zipcar

Not enough closure and the group will lose the trust and cohesion that makes it function as a group. This combination of dense clusters with strong ties with brokers who maintain loose connections between them leads to many performance benefits, including collaboration, creativity, and shared patterns of work. High clustering in business alliances leads to innovation, which is one of the reasons you will find industries clustering together in geographic regions, like technology in Silicon Valley, publishing in New York, and clothing in Milan. The value that comes from these activities is known as social capital. Like every other form of capital, social capital represents stored value—in this case, relationship value—that can be translated into meaningful and tangible benefits. Scale-free Networks Networks constantly change and evolve.


pages: 327 words: 103,336

Everything Is Obvious: *Once You Know the Answer by Duncan J. Watts

active measures, affirmative action, Albert Einstein, Amazon Mechanical Turk, Black Swan, business cycle, butterfly effect, Carmen Reinhart, Cass Sunstein, clockwork universe, cognitive dissonance, coherent worldview, collapse of Lehman Brothers, complexity theory, correlation does not imply causation, crowdsourcing, death of newspapers, discovery of DNA, East Village, easy for humans, difficult for computers, edge city, en.wikipedia.org, Erik Brynjolfsson, framing effect, Geoffrey West, Santa Fe Institute, George Santayana, happiness index / gross national happiness, high batting average, hindsight bias, illegal immigration, industrial cluster, interest rate swap, invention of the printing press, invention of the telescope, invisible hand, Isaac Newton, Jane Jacobs, Jeff Bezos, Joseph Schumpeter, Kenneth Rogoff, lake wobegon effect, Laplace demon, Long Term Capital Management, loss aversion, medical malpractice, meta analysis, meta-analysis, Milgram experiment, natural language processing, Netflix Prize, Network effects, oil shock, packet switching, pattern recognition, performance metric, phenotype, Pierre-Simon Laplace, planetary scale, prediction markets, pre–internet, RAND corporation, random walk, RFID, school choice, Silicon Valley, social intelligence, statistical model, Steve Ballmer, Steve Jobs, Steve Wozniak, supply-chain management, The Death and Life of Great American Cities, the scientific method, The Wisdom of Crowds, too big to fail, Toyota Production System, ultimatum game, urban planning, Vincenzo Peruggia: Mona Lisa, Watson beat the top human players on Jeopardy!, X Prize

See Watts (2003, Chapter 9) for an account of Toyota’s near catastrophe with “just in time” manufacturing, and also their remarkable recovery. See Nishiguchi and Beaudet (2000) for the original account. See Helper, MacDuffie, and Sabel (2000) for a discussion of how the principles of the Toyota production system have been adopted by American firms. 30. See Sabel (2007) for more details on what makes for successful industrial clusters, and Giuliani, Rabellotti, and van Dijk (2005) for a range of case studies. See Lerner (2009) for cautionary lessons in government attempts to stimulate innovation. 31. Of course in attempting to generalize local solutions, one must remain sensitive to the context in which they are used. Just because a particular hand-washing practice works in one hospital does not necessarily mean that it will work in another, where a different set of resources, constraints, problems, patients, and cultural attitudes may prevail.


pages: 356 words: 103,944

The Globalization Paradox: Democracy and the Future of the World Economy by Dani Rodrik

affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, endogenous growth, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, industrial cluster, information asymmetry, joint-stock company, Kenneth Rogoff, land reform, liberal capitalism, light touch regulation, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, Paul Samuelson, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey

Domestic markets were protected to attract investors seeking a large consumer base, in addition to those that looked for cost savings. Weak enforcement of intellectual protection laws enabled domestic producers to reverse engineer and imitate foreign technologies with little fear of prosecution. Cities and provinces were given substantial freedoms to fashion their own policies of stimulation and support, which led to the creation of industrial clusters in Shanghai, Shenzhen, Hangzhou, and elsewhere.24 Many of the Chinese companies created through government efforts failed. Accounts of industrial policy in China point to the low productivity and low-technology absorption of many state enterprises and to the lack of coordination (across national ministries as well as across different levels of government) that characterizes Chinese policies.25 But as in Japan a century earlier, state-led efforts played an important role in training workers and managers and in creating demonstration effects.


pages: 349 words: 95,972

Messy: The Power of Disorder to Transform Our Lives by Tim Harford

affirmative action, Air France Flight 447, Airbnb, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, assortative mating, Atul Gawande, autonomous vehicles, banking crisis, Barry Marshall: ulcers, Basel III, Berlin Wall, British Empire, Broken windows theory, call centre, Cass Sunstein, Chris Urmson, cloud computing, collateralized debt obligation, crowdsourcing, deindustrialization, Donald Trump, Erdős number, experimental subject, Ferguson, Missouri, Filter Bubble, Frank Gehry, game design, global supply chain, Googley, Guggenheim Bilbao, high net worth, Inbox Zero, income inequality, industrial cluster, Internet of things, Jane Jacobs, Jeff Bezos, Loebner Prize, Louis Pasteur, Marc Andreessen, Mark Zuckerberg, Menlo Park, Merlin Mann, microbiome, out of africa, Paul Erdős, Richard Thaler, Rosa Parks, self-driving car, side project, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, Steven Levy, Stewart Brand, telemarketer, the built environment, The Death and Life of Great American Cities, Turing test, urban decay, William Langewiesche

Even more extraordinary is the tale of a woman hoping to pick up a friend from the local train station in Belgium who instead trustingly drove 800 miles to Zagreb, Croatia. * A roundabout is the European answer to a traffic circle, typically smaller and with no traffic lights. * Specialized cities had also been widely thought to be hubs of innovation. The great economist Alfred Marshall had described the advantages of industrial clusters. “When an industry has thus chosen a locality for itself, it is likely to stay there long: so great are the advantages which people following the same skilled trade get from near neighborhood to one another,” he wrote in Principles of Economics in 1890. “The mysteries of the trade become no mysteries; but are as it were in the air.” Jane Jacobs agreed with most of that analysis: ideas did spread, and they did so street by street.


pages: 1,000 words: 247,974

Empire of Cotton: A Global History by Sven Beckert

agricultural Revolution, Bartolomé de las Casas, British Empire, colonial exploitation, colonial rule, Corn Laws, creative destruction, crony capitalism, deindustrialization, European colonialism, Francisco Pizarro, imperial preference, industrial cluster, James Hargreaves, James Watt: steam engine, joint-stock company, laissez-faire capitalism, land tenure, Mahatma Gandhi, market fundamentalism, race to the bottom, Silicon Valley, spice trade, spinning jenny, The Wealth of Nations by Adam Smith, transaction costs, transatlantic slave trade, union organizing, women in the workforce

Trust as a core prerequisite for the emergence of markets, and thus the dependence of markets on relationships not generated in the market itself, is also emphasized by Hartmut Berghoff, “Vertrauen als Ökonomische Schlüsselvariable: Zur Theorie des Vertrauens und der Geschichte seiner Privatwirtschaflichen Produktion,” in Karl-Peter Ellerbrook and Clemens Wischermann, eds., Die Wirtschaftsgeschichte vor der Herausforderung durch die New Institutional Economics (Dortmund: Gesellschaft für Westfälische Wirtschaftsgeschichte, 2004), 58–71; M. C. Casson, “An Economic Approach to Regional Business Networks,” in John F. Wilson and Andrew Popp, eds., Industrial Clusters and Regional Business Networks in England, 1750–1970 (Aldershot, UK: Ashgate, 2003), 28; Olivier Pétré-Grenouilleau, “Les négoces Atlantique français: Anatomie d’ un capitalisme relationnel,” Dix-huitième Siècle 33 (2001): 38. See also Geoffrey Jones, “Multinational Trading Companies in History and Theory,” in Geoffrey Jones, ed., The Multinational Traders (London: Routledge, 1998), 5. For an important case study of Boston’s Perkins family see Rachel Van, “Free Trade and Family Values: Free Trade and the Development of American Capitalism in the 19th Century” (PhD dissertation, Columbia University, 2011). 64.

John Baffes, “The ‘Cotton Problem,’ ” World Bank Research Observer 20, no. 1 (April 1, 2005): 116. 4. For India, see Official Indian Textile Statistics 2011–12, Ministry of Textiles, Government of India, Mumbai, accessed on June 5, 2013, http://www.txcindia.com/html/comp%20table%20pdf%202011–12/compsection1%2011–12.htm. For Pakistan see Muhammad Shahzad Iqbal et al., “Development of Textile Industrial Clusters in Pakistan,” Asian Social Science 6, no. 11 (2010): 132, Table 4.2, “Share of Textiles in Employment.” On China see Robert P. Antoshak, “Inefficiency and Atrophy in China’s Spinning Sector Provide Opportunities of Others,” Cotton: Review of World Situation 66 (November–December 2012), 14–17. 5. National Cotton Council of America, “The Economic Outlook for U.S. Cotton, 2013,” accessed September 17, 2013, http://www.cotton.org/econ/reports/upload/13annmtg_all_final.pdf.


pages: 407 words: 109,653

Top Dog: The Science of Winning and Losing by Po Bronson, Ashley Merryman

Asperger Syndrome, Berlin Wall, Charles Lindbergh, conceptual framework, crowdsourcing, delayed gratification, deliberate practice, Edward Glaeser, experimental economics, Fall of the Berlin Wall, fear of failure, game design, industrial cluster, Jean Tirole, knowledge worker, longitudinal study, loss aversion, Mark Zuckerberg, meta analysis, meta-analysis, Mikhail Gorbachev, phenotype, Richard Feynman, risk tolerance, school choice, selection bias, shareholder value, Silicon Valley, six sigma, Steve Jobs, zero-sum game

., & Olav Sorenson, “The Red Queen in Organizational Development,” Industrial & Corporate Change, vol. 11(2), pp. 289–325 (2002) Belussi, Fiorenza, “The Generation of Contextual Knowledge through Communication Processes: The Case of the Packaging Machinery Industry in the Bologna District,” In: Fiorenza Belussi, Giorgio Gottardi, & Enzo Rullani (Eds.), The Technological Evolution of Industrial Districts (Economics of Science, Technology & Innovation), ch. 15, pp. 341–366, Norwell, MA: Kluwer Academic Press (2003) Belussi, Fiorenza, Alessia Sammarra, & Silvia Rita Sedita, “Entrepreneurship and Innovation—Organization Systems and Regions,” Paper Presentation for 25th Celebration Conference, DRUID, Copenhagen (2005) Boari, Cristina, “Industrial Clusters, Focal Firms, and Economic Dynamism: A Perspective from Italy,” Paper No. 37186, Washington, DC: World Bank Institute (2001) Boari, Cristina, Guido Fioretti, & Vincenza Odorici, “Rivalry and Learning among Clustered and Isolated Firms,” In: Edoardo Mollona (Ed.), Computational Analysis of Firms’ Organization and Strategic Behaviour, ch. 8, pp. 171–192, New York: Routledge (2010) Boari, Cristina, & Andrea Lipparini, “Networks within Industrial Districts: Organising Knowledge Creation and Transfer by Means of Moderate Hierarchies,” Journal of Management & Governance, vol. 3(4), pp. 339–360 (1999) Boari, Cristina, Vincenza Odoricia, & Marco Zamarian, “Clusters and Rivalry: Does Localization Really Matter?”


pages: 523 words: 111,615

The Economics of Enough: How to Run the Economy as if the Future Matters by Diane Coyle

"Robert Solow", accounting loophole / creative accounting, affirmative action, bank run, banking crisis, Berlin Wall, bonus culture, Branko Milanovic, BRICs, business cycle, call centre, Cass Sunstein, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation does not imply causation, Credit Default Swap, deindustrialization, demographic transition, Diane Coyle, different worldview, disintermediation, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Financial Instability Hypothesis, Francis Fukuyama: the end of history, George Akerlof, Gini coefficient, global supply chain, Gordon Gekko, greed is good, happiness index / gross national happiness, hedonic treadmill, Hyman Minsky, If something cannot go on forever, it will stop - Herbert Stein's Law, illegal immigration, income inequality, income per capita, industrial cluster, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, low skilled workers, market bubble, market design, market fundamentalism, megacity, Network effects, new economy, night-watchman state, Northern Rock, oil shock, Pareto efficiency, principal–agent problem, profit motive, purchasing power parity, railway mania, rising living standards, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Steven Pinker, The Design of Experiments, The Fortune at the Bottom of the Pyramid, The Market for Lemons, The Myth of the Rational Market, The Spirit Level, transaction costs, transfer pricing, tulip mania, ultimatum game, University of East Anglia, web application, web of trust, winner-take-all economy, World Values Survey, zero-sum game

In the south, social capital was confined within extended families or other small groups, so the town as a whole suffered from the fact that mutual assistance was confined within small subsets of its population at the expense of the rest. In other contexts, urban gangs or terror cells have strong social capital internal to their membership, which translates into weak social capital for the wider social entities in which they live, whether their estate or their nation. Strong social capital will improve the way economic markets operate. One example is the way specialized industrial clusters develop in a particular place, where access to market and the availability of employees to hire are part of the explanation, but so are social factors such as the way people in different firms might exchange know-how about their areas of expertise, or move from one job to another via word of mouth. Sometimes, social capital can stop markets from working properly, however. For example, people might decide they will only do business deals with members of their golf club, or their ethnic group, even if that isn’t objectively the best deal.


pages: 437 words: 113,173

Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global pandemic, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial cluster, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Johannes Kepler, Khan Academy, Kickstarter, low cost airline, low cost carrier, low skilled workers, Lyft, Malacca Straits, mass immigration, megacity, Mikhail Gorbachev, moral hazard, Nelson Mandela, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, Pearl River Delta, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Robert Metcalfe, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, The Future of Employment, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uber lyft, undersea cable, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day

They will add 1.3 billion inhabitants through 2030—compared with an increase of just 100 million dwellers in existing big cities.47 We know these new crossroads only vaguely, if at all. They include some 150 regional hubs of 5–10 million inhabitants like China’s Changsha, Brazil’s Joinville and Mexico’s Veracruz; a few hundred midsize growth cities of 1 to 5 million, like India’s Ahmedabad and Russia’s Sochi—often built around local natural resources or industrial clusters; and thousands of smaller boomtowns few of us could find on a map, such as Hengshan, Leibo, Kuchaman City, Konch, Caxias, Timon, Escobedo and Abasolo. China leads the urbanization story. Between 1982 and 1986, the dismantling of state-planned agriculture released surplus workers from their rural posts. China’s urban population catapulted from about 200 million to almost 400 million people in four short, hectic years of transformation.48 China’s next urban boom began after 1992: Deng Xiaoping embarked on his historic Southern Tour of China’s southeast coastal region (during which he may have proclaimed, “To get rich is glorious”), solidified pro-market reforms as Communist Party dogma, and prompted an export-driven expansion that lured rural labor to the coast.


pages: 484 words: 131,168

The Big Sort: Why the Clustering of Like-Minded America Is Tearing Us Apart by Bill Bishop, Robert G. Cushing

"Robert Solow", 1960s counterculture, affirmative action, American Legislative Exchange Council, assortative mating, big-box store, blue-collar work, Cass Sunstein, citizen journalism, cognitive dissonance, David Brooks, demographic transition, desegregation, Edward Glaeser, immigration reform, income inequality, industrial cluster, Jane Jacobs, knowledge economy, longitudinal study, mass immigration, meta analysis, meta-analysis, Milgram experiment, music of the spheres, New Urbanism, post-industrial society, post-materialism, Ralph Nader, Richard Florida, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, superstar cities, The Death and Life of Great American Cities, union organizing, War on Poverty, white flight, World Values Survey

They weren't southern field hands or Appalachian coal miners gone to Detroit, Chicago, or Cleveland after being displaced by automated cotton pickers or continuous mining machines. Rather, they came to Portland because this was where they wanted to be, where they could live among their own kind. The English economist Alfred Marshall examined the agglomeration of industries in nineteenth-century England—textile manufacturers in Manchester and cutlery makers in Sheffield—and observed the economic advantages when industry clustered. Textile manufacturers in Manchester shared knowledge about the latest weaving techniques and markets. Skilled spinners were ready for hire because the business of mills and textiles was part of Manchester. "Great are the advantages which people following the same skilled trade get from near neighborhood to one another," Marshall wrote. "The mysteries of the trade become no mysteries, but are, as it were, in the air, and children learn many of them unconsciously."1 Jeff Parker channeled Marshall when he explained why he had moved to Portland and Mercury Studio from Chapel Hill, North Carolina.


pages: 550 words: 124,073

Democracy and Prosperity: Reinventing Capitalism Through a Turbulent Century by Torben Iversen, David Soskice

Andrei Shleifer, assortative mating, augmented reality, barriers to entry, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, centre right, cleantech, cloud computing, collateralized debt obligation, collective bargaining, colonial rule, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, deskilling, Donald Trump, first-past-the-post, full employment, Gini coefficient, hiring and firing, implied volatility, income inequality, industrial cluster, inflation targeting, invisible hand, knowledge economy, labor-force participation, liberal capitalism, low skilled workers, low-wage service sector, means of production, mittelstand, Network effects, New Economic Geography, new economy, New Urbanism, non-tariff barriers, Occupy movement, offshore financial centre, open borders, open economy, passive investing, precariat, race to the bottom, rent-seeking, RFID, road to serfdom, Robert Bork, Robert Gordon, Silicon Valley, smart cities, speech recognition, The Future of Employment, The Great Moderation, The Rise and Fall of American Growth, too big to fail, trade liberalization, union organizing, urban decay, Washington Consensus, winner-take-all economy, working-age population, World Values Survey, young professional, zero-sum game

Just as British business and financial leaders saw Thatcher’s reforms as against their interests, so, not surprisingly, did the French private sector. Anglo-Saxon readers may raise eyebrows at the widespread nationalizations of leading manufacturing companies by Mitterrand when he became president in 1981 in a socialist-communist alliance. While ambiguity doubtless colors many of Mitterrand’s strategic moves, this major maneuver conformed to the Gaullist idea of the grande politique industrielle of creating great industrial clusters, including the supply chains (filières) which had come apart during the Giscard-Barre period of liberal economic policy in the turbulent second half of the 1970s; nor was it a million miles from the idea of the Japanese vertical Keiretsu. It is true that it did not represent a direct policy of radical liberalization, but it was exactly intended to arm national champions with the competitiveness and innovative capacities needed to succeed in increasingly competitive world markets.


Multicultural Cities: Toronto, New York, and Los Angeles by Mohammed Abdul Qadeer

affirmative action, business cycle, call centre, David Brooks, deindustrialization, desegregation, edge city, en.wikipedia.org, Frank Gehry, game design, ghettoisation, global village, immigration reform, industrial cluster, Jane Jacobs, knowledge economy, market bubble, McMansion, new economy, New Urbanism, place-making, Richard Florida, risk tolerance, Silicon Valley, Skype, telemarketer, the built environment, The Chicago School, The Death and Life of Great American Cities, the scientific method, urban planning, urban renewal, working-age population, young professional

Los Angeles County’s economy has lesser concentration in services (63.0% of employment in 2009) than New York, but manufacturing had a higher share (11.3% in 2009), inherited from defence industries established during the Second World War. Table 5.2 shows that trade (17.6%), education and health, services (16.1%), and entertainment (Hollywood) and food (11.4%) were the leading industries in 2009. Los Angeles has an industrial cluster of information, defence, biomedical, and environmental technologies, which is an emerging driver of its economy and a platform for international trade. It has the biggest American port and is the connecting point for the Pacific trade. This is the framework of opportunities within which ethnic entrepreneurship and economic participation operate. Ethnicity and the Urban Economy Photo 5.1 Chinese shopping arcade inside Pacific Mall, Markham (Toronto) (courtesy Susan Qadeer) 99 100 Multicultural Cities The Latinization of Los Angeles is the storyline of its transformation under the influence of immigration.


pages: 436 words: 76

Culture and Prosperity: The Truth About Markets - Why Some Nations Are Rich but Most Remain Poor by John Kay

"Robert Solow", Albert Einstein, Asian financial crisis, Barry Marshall: ulcers, Berlin Wall, Big bang: deregulation of the City of London, business cycle, California gold rush, complexity theory, computer age, constrained optimization, corporate governance, corporate social responsibility, correlation does not imply causation, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, Donald Trump, double entry bookkeeping, double helix, Edward Lloyd's coffeehouse, equity premium, Ernest Rutherford, European colonialism, experimental economics, Exxon Valdez, failed state, financial innovation, Francis Fukuyama: the end of history, George Akerlof, George Gilder, greed is good, Gunnar Myrdal, haute couture, illegal immigration, income inequality, industrial cluster, information asymmetry, intangible asset, invention of the telephone, invention of the wheel, invisible hand, John Meriwether, John Nash: game theory, John von Neumann, Kenneth Arrow, Kevin Kelly, knowledge economy, light touch regulation, Long Term Capital Management, loss aversion, Mahatma Gandhi, market bubble, market clearing, market fundamentalism, means of production, Menlo Park, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Naomi Klein, Nash equilibrium, new economy, oil shale / tar sands, oil shock, Pareto efficiency, Paul Samuelson, pets.com, popular electronics, price discrimination, price mechanism, prisoner's dilemma, profit maximization, purchasing power parity, QWERTY keyboard, Ralph Nader, RAND corporation, random walk, rent-seeking, Right to Buy, risk tolerance, road to serfdom, Ronald Coase, Ronald Reagan, second-price auction, shareholder value, Silicon Valley, Simon Kuznets, South Sea Bubble, Steve Jobs, telemarketer, The Chicago School, The Market for Lemons, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, total factor productivity, transaction costs, tulip mania, urban decay, Vilfredo Pareto, Washington Consensus, women in the workforce, yield curve, yield management

Chandler ran Coke for twenty-five years before becoming mayor of Atlanta in 1916. 12. For an elaboration of the relationship between competitive advantage and firm capabilities, see Kay (1993). 13. This example was used in Ricardo's Principles ofPolitical Economy (1817). 14. Own estimates from world trade statistics. 15. Own estimates from Swiss trade statistics. 16. Porter (1990) has repopularized the emphasis on industrial "cluster" noted by Alfred Marshall a century before. Chapter 8: Assignment ••••••••••••••••••••••••••••••••••••• 1. This account of the history of the Portrait ofDr. Gachet is based heavily on Saltzman (1998). 2. Gachet ( 1994). 3. Van Gogh's brother, Theo, was an art dealer who died soon after the painter, and Thea's sister effectively commercialized van Gogh's work: Gachet was first sold in 1897 for 225 francs.


pages: 460 words: 131,579

Masters of Management: How the Business Gurus and Their Ideas Have Changed the World—for Better and for Worse by Adrian Wooldridge

affirmative action, barriers to entry, Black Swan, blood diamonds, borderless world, business climate, business cycle, business intelligence, business process, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collaborative consumption, collapse of Lehman Brothers, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, creative destruction, credit crunch, crowdsourcing, David Brooks, David Ricardo: comparative advantage, disintermediation, disruptive innovation, don't be evil, Donald Trump, Edward Glaeser, Exxon Valdez, financial deregulation, Frederick Winslow Taylor, future of work, George Gilder, global supply chain, industrial cluster, intangible asset, job satisfaction, job-hopping, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kickstarter, knowledge economy, knowledge worker, lake wobegon effect, Long Term Capital Management, low skilled workers, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, Naomi Klein, Netflix Prize, Network effects, new economy, Nick Leeson, Norman Macrae, patent troll, Ponzi scheme, popular capitalism, post-industrial society, profit motive, purchasing power parity, Ralph Nader, recommendation engine, Richard Florida, Richard Thaler, risk tolerance, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Levy, supply-chain management, technoutopianism, The Wealth of Nations by Adam Smith, Thomas Davenport, Tony Hsieh, too big to fail, wealth creators, women in the workforce, young professional, Zipcar

He first got interested in the subject when Ronald Reagan, confronted by mounting demands for an “industrial policy” to deal with America’s supposed economic decline, asked him to sit on a presidential Commission on Industrial Competitiveness, and he was struck by the huge role that nationstates and national differences play in determining the success of the companies that he had spent his life studying.3 The result of this conversion was a huge book, The Competitive Advantage of Nations (1990). Over eight hundred pages long, lavishly illustrated with charts, diagrams, and maps of successful industrial clusters, littered with details about British biscuit companies and Italian shoe-makers, supported by hundreds of footnotes, the book can be read on three levels: as a general inquiry into what makes national economies successful; a detailed study of eight of the most important economies in the world, South Korea, Italy, Sweden, Japan, Switzerland, Germany, Britain, and the United States; and a series of prescriptions about what governments should do to improve their country’s competitiveness.


Super Continent: The Logic of Eurasian Integration by Kent E. Calder

3D printing, air freight, Asian financial crisis, Berlin Wall, blockchain, Bretton Woods, business intelligence, capital controls, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, colonial rule, Credit Default Swap, cuban missile crisis, deindustrialization, demographic transition, Deng Xiaoping, disruptive innovation, Doha Development Round, Donald Trump, energy transition, European colonialism, failed state, Fall of the Berlin Wall, Gini coefficient, housing crisis, income inequality, industrial cluster, industrial robot, interest rate swap, intermodal, Internet of things, invention of movable type, inventory management, John Markoff, liberal world order, Malacca Straits, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, new economy, oil shale / tar sands, oil shock, purchasing power parity, quantitative easing, reserve currency, Ronald Reagan, seigniorage, smart cities, smart grid, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, supply-chain management, Thomas L Friedman, trade liberalization, trade route, transcontinental railway, UNCLOS, UNCLOS, union organizing, Washington Consensus, working-age population, zero-sum game

In Guangxi province next to Vietnam, for example, total import-export value from processing trade grew at an average annual rate of 33 percent from 2010 to 2016.33 Such trade, in sectors like electronics, food processing, and pharmaceuticals, was typically conducted through taxadvantaged industrial zones close to the sea or the Vietnamese border, often relying on low-cost guest workers.34 These China-centric export-processing zones also cut costs by subcontracting low-end processes to Cambodia while retaining mid- to high-end functions, including skills training, within China. China and Malaysia are also working to systematically coordinate valuechain development, through their “two countries, twin parks” initiative. This program, whose foundations were laid in 2012, involves two jointly built industrial parks in Qinzhou in Guangxi province and Kuantan in Malaysia. Both are port cities with access to the South China Sea. In the Qinzhou Industrial Park, six industrial clusters are being built up for coordinated development, including healthcare, marine industries, and food processing. One special niche is bird-nest and halal food processing, building on Malaysian traditional industries, for product distribution in China and neighboring countries.35 While Chinese infrastructure projects in Malaysia have come under review following the election of China critic Mahathir Mohamad, joint commercial projects in China like the Qinzhou industrial park are unlikely to be affected.36 Deepening China–Southeast Asia Transportation Networks China is separated from its immediate neighbors in continental Southeast Asia (Vietnam, Laos, Myanmar) by mountainous terrain and at times by impenetrable jungles as well.


pages: 518 words: 143,914

God Is Back: How the Global Revival of Faith Is Changing the World by John Micklethwait, Adrian Wooldridge

affirmative action, anti-communist, Ayatollah Khomeini, barriers to entry, battle of ideas, Bonfire of the Vanities, Boris Johnson, correlation does not imply causation, credit crunch, David Brooks, Francis Fukuyama: the end of history, full employment, ghettoisation, global supply chain, God and Mammon, hiring and firing, industrial cluster, intangible asset, invisible hand, Iridium satellite, Jane Jacobs, joint-stock company, knowledge economy, liberation theology, low skilled workers, mass immigration, McMansion, megacity, Mikhail Gorbachev, Nelson Mandela, new economy, oil shock, Peace of Westphalia, Robert Bork, rolodex, Ronald Reagan, Scientific racism, Silicon Valley, stem cell, supply-chain management, The Wealth of Nations by Adam Smith, Thomas Malthus, upwardly mobile, Washington Consensus

It is true that the religious figures who are being badmouthed are usually Christians, especially southern Evangelicals, but many Muslims see this as disrespect for religion in general. (The Koran and the Bible after all have common roots and common themes.) This assault is at its most striking in the case of pornography. America has applied the same commercial genius to porn that it has to mainstream films and computers. “Silicone Valley” in LA’s San Fernando Valley is one of California’s great industrial clusters—home to fifty of the world’s top porn companies and sugar daddy to twenty thousand porn stars—and that cluster is increasingly looking to the world market to boost its profits. Porn companies have global distribution chains, not least the Western hotel chains that make a habit of providing “adult entertainment” along with CNN. They are also using the global Internet to drum up customers (often with free samples that draw customers into their world).


pages: 535 words: 158,863

Superclass: The Global Power Elite and the World They Are Making by David Rothkopf

airport security, anti-communist, asset allocation, Ayatollah Khomeini, bank run, barriers to entry, Berlin Wall, Bob Geldof, Branko Milanovic, Bretton Woods, BRICs, business cycle, carried interest, clean water, corporate governance, creative destruction, crony capitalism, David Brooks, Doha Development Round, Donald Trump, financial innovation, fixed income, Francis Fukuyama: the end of history, Gini coefficient, global village, high net worth, income inequality, industrial cluster, informal economy, Internet Archive, Jeff Bezos, jimmy wales, joint-stock company, knowledge economy, liberal capitalism, Live Aid, Long Term Capital Management, Mahatma Gandhi, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, Martin Wolf, mass immigration, means of production, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, Nelson Mandela, old-boy network, open borders, plutocrats, Plutocrats, Ponzi scheme, price mechanism, shareholder value, Skype, special economic zone, Steve Jobs, Thorstein Veblen, too big to fail, trade liberalization, trickle-down economics, upwardly mobile, Vilfredo Pareto, Washington Consensus, William Langewiesche

Indeed, one senior U.S. official situates Khan’s destabilizing role in the twenty-first century as “up there” with Hitler and Stalin in the twentieth. Even without a military title or CEO status, men like Khan have the capability to shape world events to an extraordinary and terrifying extent. International terrorists constitute a similar, critical component of the shadow class of the military-industrial cluster. They are much more directly involved with the use of force and violence than their counterparts in the arms trade, and the effects of their actions can be no less momentous. In addition to notorious characters like Osama bin Laden, there are others with (purportedly) similar sway in their respective networks: Terrorist leaders Ayman Al-Zawahiri (Al Qaeda), Ramadan Abdullah Mohammad Shallah (Palestinian Islamic Jihad), and Sayyed Hassan Nasrallah (Hezbollah) top a long list of individuals whom authorities consider masterminds.


pages: 470 words: 148,730

Good Economics for Hard Times: Better Answers to Our Biggest Problems by Abhijit V. Banerjee, Esther Duflo

"Robert Solow", 3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, basic income, Bernie Sanders, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, charter city, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, decarbonisation, Deng Xiaoping, Donald Trump, Edward Glaeser, en.wikipedia.org, endowment effect, energy transition, Erik Brynjolfsson, experimental economics, experimental subject, facts on the ground, fear of failure, financial innovation, George Akerlof, high net worth, immigration reform, income inequality, Indoor air pollution, industrial cluster, industrial robot, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, Jean Tirole, Jeff Bezos, job automation, Joseph Schumpeter, labor-force participation, land reform, loss aversion, low skilled workers, manufacturing employment, Mark Zuckerberg, mass immigration, Network effects, new economy, New Urbanism, non-tariff barriers, obamacare, offshore financial centre, open economy, Paul Samuelson, place-making, price stability, profit maximization, purchasing power parity, race to the bottom, RAND corporation, randomized controlled trial, Richard Thaler, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, school choice, Second Machine Age, secular stagnation, self-driving car, shareholder value, short selling, Silicon Valley, smart meter, social graph, spinning jenny, Steve Jobs, technology bubble, The Chicago School, The Future of Employment, The Market for Lemons, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, total factor productivity, trade liberalization, transaction costs, trickle-down economics, universal basic income, urban sprawl, very high income, War on Poverty, women in the workforce, working-age population, Y2K

China Daily quoted Huang Guoliang, director of the administration’s quality supervision department: “Current law generally imposes administrative penalties on violators of product quality law, which are too lenient… A system under which violators of the law would suffer devastating consequences would act as a deterrent [italics added].”38 The best-case scenario in this world of fragile and interconnected reputations is often an “industrial cluster,” a concentration of firms in the same industry in one location, all benefitting from the reputation associated with the cluster. There have been knitwear factories in Tirupur in India since 1925, and throughout the 1960s and 1970s, the industry grew, producing mainly the white cotton tank tops Indian men wear under their shirts. In 1978, an Italian garment importer, a Mr. Verona, was desperately looking for a large shipment of white T-shirts.


pages: 598 words: 172,137

Who Stole the American Dream? by Hedrick Smith

Affordable Care Act / Obamacare, Airbus A320, airline deregulation, anti-communist, asset allocation, banking crisis, Bonfire of the Vanities, British Empire, business cycle, business process, clean water, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, David Brooks, Deng Xiaoping, desegregation, Double Irish / Dutch Sandwich, family office, full employment, global supply chain, Gordon Gekko, guest worker program, hiring and firing, housing crisis, Howard Zinn, income inequality, index fund, industrial cluster, informal economy, invisible hand, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, laissez-faire capitalism, late fees, Long Term Capital Management, low cost airline, low cost carrier, manufacturing employment, market fundamentalism, Maui Hawaii, mega-rich, MITM: man-in-the-middle, mortgage debt, negative equity, new economy, Occupy movement, Own Your Own Home, Paul Samuelson, Peter Thiel, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ponzi scheme, Powell Memorandum, Ralph Nader, RAND corporation, Renaissance Technologies, reshoring, rising living standards, Robert Bork, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, shareholder value, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Steve Jobs, The Chicago School, The Spirit Level, too big to fail, transaction costs, transcontinental railway, union organizing, Unsafe at Any Speed, Vanguard fund, We are the 99%, women in the workforce, working poor, Y2K

With a competitive advantage from these illegal labor practices, confirmed by an outside audit inspection, Foxcomm, Apple’s biggest supplier in China of iPads and iPhones could undercut and beat out American rivals. “The speed and flexibility is breathtaking,” said one Apple executive. “There’s no American plant that can match that.” Many other American firms found the pull of China’s low-cost, moderately skilled workforce and its state-supported industrial clusters irresistible. With overseas production based in China shipping goods home to American consumers, U.S. multinationals were contributing to America’s record $273 billion trade deficit with China, triple the level a decade earlier. From 2001 to 2010, right after Washington approved free trade with China, the red ink was overwhelming. We Americans bought $1.928 trillion more in goods from China than we sold to China.


pages: 596 words: 163,682

The Third Pillar: How Markets and the State Leave the Community Behind by Raghuram Rajan

activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, airline deregulation, Albert Einstein, Andrei Shleifer, banking crisis, barriers to entry, basic income, battle of ideas, Bernie Sanders, blockchain, borderless world, Bretton Woods, British Empire, Build a better mousetrap, business cycle, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, computer vision, conceptual framework, corporate governance, corporate raider, corporate social responsibility, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, currency manipulation / currency intervention, data acquisition, David Brooks, Deng Xiaoping, desegregation, deskilling, disruptive innovation, Donald Trump, Edward Glaeser, facts on the ground, financial innovation, financial repression, full employment, future of work, global supply chain, high net worth, housing crisis, illegal immigration, income inequality, industrial cluster, intangible asset, invention of the steam engine, invisible hand, Jaron Lanier, job automation, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, labor-force participation, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, means of production, moral hazard, Network effects, new economy, Nicholas Carr, obamacare, Productivity paradox, profit maximization, race to the bottom, Richard Thaler, Robert Bork, Robert Gordon, Ronald Reagan, Sam Peltzman, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, South China Sea, South Sea Bubble, Stanford marshmallow experiment, Steve Jobs, superstar cities, The Future of Employment, The Wealth of Nations by Adam Smith, trade liberalization, trade route, transaction costs, transfer pricing, Travis Kalanick, Tyler Cowen: Great Stagnation, universal basic income, Upton Sinclair, Walter Mischel, War on Poverty, women in the workforce, working-age population, World Values Survey, Yom Kippur War, zero-sum game

Such establishments have typically been located near smaller towns, such as the US Steel plant in Granite City, Illinois, and rural areas in the interior of countries, where the cost of living and thus of labor has been low, and regulation light. These establishments have dominated the local community, providing the incomes that keep the local hairdressers, laundries, and shops in business. If unable to keep up with competition from imports, the establishments close down local operations, and may move machinery to a country where labor is cheaper. Since manufacturers in an industry cluster together, they are likely to decide to lay off workers or close down at similar times, compounding the magnitude and impact of the job losses. Of the 1,250 workers represented by the steel workers union in Granite City, only 375 were working at the end of 2016.19 As described by Amy Goldstein in her book Janesville, which follows the Janesville community after General Motors closed a large plant there, the effects on the community can be devastating.


pages: 870 words: 259,362

Austerity Britain: 1945-51 by David Kynaston

Alistair Cooke, anti-communist, British Empire, Chelsea Manning, collective bargaining, continuous integration, deindustrialization, deskilling, Etonian, full employment, garden city movement, hiring and firing, industrial cluster, invisible hand, job satisfaction, labour mobility, light touch regulation, mass immigration, moral panic, Neil Kinnock, occupational segregation, price mechanism, rent control, reserve currency, road to serfdom, Ronald Reagan, shared worldview, stakhanovite, strikebreaker, the market place, upwardly mobile, urban planning, urban renewal, very high income, wage slave, washing machines reduced drudgery, wealth creators, women in the workforce, young professional

A report on the British motor industry did concede that it would not be a seller’s market for ever and identified Germany in particular as a potential future competitor of ‘permanent importance’, but that competition would not come from the Volkswagen, which the report reckoned ‘by British standards’ to be ‘uncomfortable and noisy’. Despite increasingly persistent, disobliging complaints from abroad that British cars were becoming a byword for unreliability, it would take a lot to shake the industry’s complacent assumption that British was still best.11 It was an industry clustered in five main places. Each had significantly different characteristics, but in all of them the conveyor-belt assembly line – ‘the track’ – was the relentless, remorseless, unforgiving nerve centre of operations. Dagenham was the British home of Ford – a Detroit in miniature since the early 1930s. The works put a premium on continuous, integrated production and included a blast furnace, coke ovens, a powerhouse, iron and steel foundries, and fully mechanised jetties for loading and unloading that reached out into the Thames.


pages: 939 words: 274,289

The Man Who Saved the Union: Ulysses Grant in War and Peace by H. W. Brands

California gold rush, clean water, Corn Laws, industrial cluster, long peace, Monroe Doctrine, retrograde motion, strikebreaker, transcontinental railway

And it avoided provoking the North beyond the capacity of Lincoln and his administration to endure without declaring war on London. The balanced policy also let British merchants and manufacturers do business with both sides in the American conflict. The South, in particular, coveted access to British industry, in order to acquire the weapons without which the Confederacy would quickly have collapsed. American industry clustered in the North, which supplied its own arms needs; the South looked to Britain. British arms makers and especially ship builders were pleased to accommodate. Some sleight of hand was required, as British law forbade the construction of foreign warships; the solution was for the British yards to build commercial vessels subsequently convertible to Confederate naval use. Lincoln’s minister in London, Charles Francis Adams, saw past the ruse and protested, but not before two ships, which the Confederates christened the Alabama and the Florida, slipped to sea and into Confederate service.