Paths of Innovation: Technological Change in 20th Century America. David Mowery and Nathan Rosenberg.

Paths of Innovation: Technological Change in 20th Century America. David Mowery and Nathan... 320 BOOK REVIEW domestic anti-trust laws which restricted cartels and monopoly stimulated internal research and development by forcing firms to focus on internal development, rather than external acquisition. As the authors detail, the role of government in signif- icantly funding research and development resulted from the efforts of WWII. In fact, it was during and after WWII that the United States changed from being a net borrower of innovations to being a net creator. Interesting ideas and lessons are derived from each of the three case studies. In the first, internal combustion engines, Mowery and Rosenberg focus on the innova- tion of mass production techniques. These mass production techniques spilled-over into the production of motors, washing machines, refrigerators, telephones, and ra- dios among others. Moreover, the development of mass-produced automobiles lead to increases in demand for glass, rubber, steel, and gasoline, which improved upon production efficiencies in these sectors. The authors also make the point that the relatively equal distribution of income in the United States (compared to Europe) helped deepen the market for such mass produced goods. In the chemicals industry, Mowery and Rosenberg detail how the large size and rapid growth of the American market, as well Review of Industrial Organization Springer Journals

Paths of Innovation: Technological Change in 20th Century America. David Mowery and Nathan Rosenberg.

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Kluwer Academic Publishers
Copyright © 2000 by Kluwer Academic Publishers
Economics; Industrial Organization; Microeconomics
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