Michael H. Best

in The New Competitive Advantage

Published in print July 2001 | ISBN: 9780198297451
Published online November 2003 | e-ISBN: 9780191595967 | DOI:

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Competing perspectives on the role of technology in economic growth are briefly presented. Neoclassical growth theory does not control for technology; the ‘new growth theory’ accounts for new ideas; and Joseph Schumpeter focuses attention on innovation and the entrepreneur. Michael Porter, following Alfred Chandler, focuses attention on business organization and competitive strategy and introduces the concept of cluster to explain competitiveness. The capabilities and innovation perspective that informs The New Competitive Advantage develops the concept of the entrepreneurial firm; distinguishes technology from technology management; integrates production into business organization; and contrasts inter‐firm relations in terms of market, and closed‐ and open‐networks. Driven by a technology capability and market opportunity, dynamic, entrepreneurial firms are forever advancing their own capabilities. In the process a region's technology capabilities are revitalized and growth potential is enhanced. The book is organized around Productivity Triad, a concept that captures the interdependencies amongst business model, production capabilities, and skill formation.

Keywords: business organization; Alfred Chandler; competitive strategy; growth theory; innovation; networks; Michael Porter; productivity; Joseph Schumpeter; technology capability

Chapter.  7002 words.  Illustrated.

Subjects: Economic Systems

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