THEAIRNEWS President’s Message

Over the past six months, theAIRnet has continued to deliver on its mission to re-

search how industrial innovation and economic development can contribute to sta-

ble and equitable economic growth. Our approach to this research emphasizes the

role of business investments in innovation in the face of uncertainty. By producing

higher quality, lower cost goods and services, innovative enterprises can become

major global competitors that help to elevate living standards in the societies in

which they operate. Yet we live in a world in which the financial economy often

dominates the productive economy, a state of affairs that has become known as

“financialization”. In cross-national perspective, financialization has gone furthest in the United States, manifest-

ed by an erosion of middle-class jobs and the concentration of income at the top of the distribution (see my arti-

cle, “The Financialization of the US Corporation: What Has Been Lost, and How It Can be Regained,” forthcom-

ing in Seattle University Law Review). Some of theAIRnet’s latest research on these issues was put on display

at the conference on Finance, Business Models, and Sustainable Prosperity that I ran at the headquarters of the

Ford Foundation in New York City on December 6-7, 2012. A follow-up conference on Financial Institutions for

Innovation and Development will take place in Rio de Janeiro on June 27-28, 2013, sponsored by the Ford

Foundation, Brazilian Development Bank, and Brazil-based MINDS. Crucial support for theAIRnet’s scholarly

research on these issues continues to come from the Institute for New Economic Thinking (INET). We have just

completed work on a two-year INET grant on “the stock market and innovative enterprise”, and have been

awarded a new two-year grant for research on “impatient capital in high-tech industries”. Please stay tuned to

theAIRnet for the results of our research and for new initiatives to disseminate what we have learned.

In This Issue

Meet AIR Associates

Upcoming Events

Recent Events

Publications

News from Associates

www.theAIRnet.org The Academic-Industry Research Network Newsletter Issue 3 / February 2013

Bill Lazonick giving the opening remarks at the conference on Finance, Business Models, and

Sustainable Prosperity held at Ford Foundation in New York City.

theAIRnet President

William LAZONICK

2

“The Academic-Industry Research Network – theAIRnet – is a private, 501(c)(3) not-for-profit research organiza-

tion devoted to the proposition that a sound understanding of the dynamics of industrial development requires col-

laboration between academic scholars and industry experts. We engage in up-to-date, in-depth, and incisive re-

search and commentary on issues related to industrial innovation and economic development. Our goal is to un-

derstand the ways in which, through innovation, businesses and governments can contribute to equitable and sta-

ble economic growth – or what we call “sustainable prosperity”.

theAIRnet welcomes new associates

We are pleased to welcome Jang-Sup Shin, Peter J. Warrian, Thomas Clarke, Roy Green, and John Mathews as

AIR associates. Their bios can be found on the website’s People page.

Thomas CLARKE John MATTHEWS Peter J. WARRIAN Roy GREEN Jang-Sup SHIN

Meet AIR Associates

James P. ELLIOTT

Until his recent retirement Jim Elliott worked at Nypro Inc., one of the world’s largest global

plastic and contract manufacturers with 14,000 employees. As the Director of Advanced

Technology at Nypro, Jim was responsible for a variety of technical development efforts as

well as strategic and tactical initiatives that included establishing subsidiaries in Singapore,

China, India, Russia, and Hungary. Jim had previously served as Nypro’s Global Director of

Tooling and Operational Readiness. Before joining Nypro, he held various managerial posi-

tions in foreign and domestic technology companies. As a consultant, Jim is now using his

prodigious expertise in the management of technological change and innovation to support

the growth of a number of technology companies. In recent years, he has extended his tech-

nology focus and expertise beyond the field of plastics/polymer engineering into energy efficiency. He is especially

involved in the development of cutting-edge materials for more efficient solar energy production. Jim Elliott was

trained as an Industrial Engineer at Fitchburg State College in Massachusetts, and completed his studies in plas-

tics technology at the former Lowell Technological Institute, now part of UMass Lowell. He also holds BS and MBA

degrees from Husson University, Bangor Maine as well as an M.A. in Regional Economic and Social Development

from UMass Lowell. Jim Elliott has served on the board of directors of The Academic-Industry Research Network

since its founding in 2010.

AIR Associate

James P. ELLIOTT

William Lazonick gave a public

lecture at the Hammer Museum

UPCOMING EVENTS

» At the intergovernmental policy meeting in Europe on February 26-27, Tea Petrin

will present draft findings of the WP4 of the EU/CEE ClusterCoop project, chairing

the team of the Faculty of Ljubljana University.

» Bill Lazonick will be the keynote speaker at the Conference on Financial Market

Capitalism – Work – Innovation, at the Sociological Research Institute, University of

Göttingen, March 11-12.

» Tea Petrin has been appointed to the United Nations Committee for Development

Policy, and will attend the plenary meeting at the UN Headquarters in New York on

March 18-22.

» Mari Sako will be a panelist at the Westminster Legal Policy Forum Keynote Semi-

nar on “Innovation in legal services—technology, skills and new business models” on

March 19 in London, UK. Professor Sako will be speaking in the session

“Outsourcing and offshoring-trends, limitations and long-term implications”.

» Peter Warrian will give a public lecture on “The Future of the Global Steel Industry”

on March 20 at McMaster University, Hamilton, Ontario.

» Bill Lazonick will attend the 2013 Plenary Conference of the Institute for New Eco-

nomic Thinking, to take place in Hong Kong, April 4-7.

» Yifei Sun will organize sessions on innovation for the Annual Conference of the

Association of American Geographers, on April 9-13 in Los Angeles, California.

» Martyn Roetter will be a panelist on the subject "The 700 MHz Auction: the Digital

Dividend in Canada and Abroad" at The Canadian Spectrum Summit on May 2 at

Ryerson University in Toronto.

RECENT EVENTS

» Bill Lazonick gave a public lecture on "Capitalism in Crisis: Makers vs. Takers" at

the Hammer Museum in Los Angeles on August 16.

» Bill Lazonick was in Buenos Aires speaking on "The State and Industrial Develop-

ment" at the Annual Money and Banking Conference of the Central Bank of Argenti-

na on October 2, 2012.

» Bill Lazonick was in Seoul at the World Knowledge Forum, where on October 9 he

was featured in sessions on "Job-Creating Growth" and "For a Better Workplace".

» Chris Mackin moderated a session on the innovative incentive practices of employ-

ee-owned companies during The New England Chapter of the ESOP Association

annual meeting on October 10-12 in Killington, Vermont.

» Yifei Sun participated in a panel on “Arms Race vs. Relay Race: What Does Inno-

vation Hold for China?”, hosted by New American Foundation/Future Tense on Octo-

ber 12 in Washington D.C.

Yifei Sun participating in the

“Arms Race vs. Relay” panel

hosted by New American

Foundation

Tea Petrin will be participating

in the EU/CEE ClusterCoop

Lazonick being greeted by

Mercedes Marcó del Pont,

Governor of the Central Bank

of Argentina.

4

Peter Warrian gave a lecture

on “Five Counter Intuitive

Thoughts about the Steel

Industry” at the University of

Toronto on November 12.

Mariana Mazzucato with

Chuka Umunna in the UK

House of Parliement

» Bill Lazonick gave a keynote speech, “The Governance of Innovative Enterprise,” at the

Conference on the Governance of a Complex World, University of Nice-Sophia Antipolis,

Nice, France, November 1-3.

» Chris Mackin and Jack Veale shared the podium at the session “End Entitlement: En-

gaging Ownership Thinking” during the annual ESOP Association of America Las Vegas

Technical Conference and Trade Show on November 8-9 at Caesar’s Palace.

» Fred Block gave a paper on the topic "Can the Fictitious Commodity Money be Orga-

nized Democratically?" at the 12th International Karl Polanyi Conference held at the Uni-

versidad Nacional de General Sarmiento, Buenos Aires, Argentina, on November 8-10.

» On November 20, Mariana Mazzucato was a panelist in the Astellas Society Debate

2012 at the Royal Society London on the concept and role of Innovation in the economy.

The panel included eight influential figures from science, technology, medicine, engineer-

ing, education, government, industry, and the media.

» On December 3, Mariana Mazzucato presented her paper co-authored with Bill Lazon-

ick, "The risk-reward nexus in the innovation-inequality relationship" in the UK House of

Parliament, with Chuka Umunna, Labour Member of Parliament for Streatham and Shad-

ow Business Secretary as discussant.

» On December 4, Bill Lazonick was a keynote speaker at the Conference on New Indus-

trial Development Strategy for Job Creation, Korea Institute for Industrial Economics &

Trade, Seoul.

» Fred Block delivered his keynote speech, “Networked Innovation in the U.S. and China”

at a conference on "Class, Power, and China" held at the Hong Kong University of Sci-

ence and Technology on December 10-11.

» On December 11, Mariana Mazzucato was a keynote speaker at the 4GROWTH event

"What has science ever done for us?", which was part of the ongoing NESTA-CaSE

4GROWTH campaign. The 4Growth campaign was launched by the Campaign for Sci-

ence and Engineering (CaSE) and Nesta. Financed by the UK Government with proceeds

of its 4G mobile spectrum auction, the 4Growth campaign represents a reinvestment of

the state into science, engineering, technology, and innovation.

» Tea Petrin was among the discussants at the event on the Latvian Program for Modern

Industrial Policies organized by the Latvian Ministry of Economics and the World Bank in

Riga, Latvia on December 13. She presented her own experiences in designing and im-

plementing proactive industrial policy in Slovenia at the high-level practitioners' workshop

co-sponsored by the World Bank.

» Kay Shimizu joined the expert panel, “Managing Japan-China Row”, hosted by the To-

kyo Foundation on January 14-15.

» Tea Petrin joined the 3rd meeting on the Modernization of Higher Education as member

of the European Commission High Level Group on February 7.

» Masahiro Kotosaka presented his research on "The Institutional Context for Rapidly In-

ternationalizing Japanese Firms” at the Nissan Institute of Japanese Studies at the Univer-

sity of Oxford on February 7.

Kay Shimizu joined the Tokyo

Foundation panel on “Managing

Japan-China Row”

PUBLICATIONS BY AIR ASSOCIATES

BOOKS

» Dan Breznitz and John Zysman, A Third Globalization: Can Wealthy Nations Stay Rich? Oxford University

Press, forthcoming.

» Inge Lippert, Tony Huzzard, Ulrich Jürgens, and William Lazonick, Sustaining High Road Jobs: Govern-

ance, Voice and Change in the Automotive Supply Industry, Oxford University Press, forthcoming.

» William Lazonick and David J. Teece, eds., Management Innovation: Essays in the Spirit of Alfred D. Chan-

dler, Jr., Oxford University Press, 2012.

» Peter Warrian, A Profile of the Steel Industry: Global Re-Invention for a New Economy, Business Expert

Press, 2012.

» Dan Breznitz and Michael Murphree, The Run of the Red Queen: Government, Innovation, Globalization,

and Economic Growth in China, Yale University Press, 2012.

» Jamee K. Moudud, Cyrus Bina and Patrick Mason, eds., Alternative Theories of Competition: Challenges to

the Orthodoxy, Routledge, 2012.

» Dic Lo, Alternatives to Neoliberal Globalization: Studies in the Political Economy of Institutions and Late

Development, Macmillan Palgrave, 2012.

JOURNAL ARTICLES AND BOOK CHAPTERS

» Dan Breznitz and Darius Ornston, “The Revolutionary Power of Peripheral Agencies: Schumpeterian Devel-

opment Agencies and Policy Innovation in Finland and Israel,” Comparative Political Studies, forthcoming.

» Dan Breznitz, Martin Kenney and Michael Murphree, “Coming Back Home After the Sun Rises: The Role of

Returnees in the Growth of High Tech Industries in Emerging Economies,” Research Policy, forthcoming.

» William Lazonick, “The Financialization of the U.S. Corporation: What Has Been Lost, and How It Can Be

Regained,” Seattle University Law Review, forthcoming.

» William Lazonick, “Business History,” in David J. Teece and Mie Augier, eds., The Palgrave Encyclopedia

of Strategic Management, Palgrave, forthcoming.

» William Lazonick and Mariana Mazzucato, “The Risk-Reward Nexus in the Innovation-Inequality Relation-

ship: Who Takes the Risks? Who Gets the Rewards?” Industrial and Corporate Change, forthcoming.

» William Lazonick, “From Innovation to Financialization: How Shareholder Value is Destroying the U.S.

Economy,” in Martin H. Wolfson and Gerald A. Epstein, eds., The Handbook of the Political Economy of Fi-

nancial Crises, Oxford University Press, 2013: 491-511.

6

» William Lazonick, “The Theory of Innovative Enterprise: Methodology, Ideology, Institutions,” in Jamee K.

Moudud, Cyrus Bina and Patrick L. Mason, eds., Alternative Theories of Competition: Challenges to the Or-

thodoxy, Routledge, 2012: 127-159.

» William Lazonick, “Corporate Governance, Innovative Enterprise, and Executive Pay,” in Michael Dietrich

and Jackie Krafft, eds., Handbook on the Economics and Theory of the Firm, Edward Elgar, 2012: 339-357.

» Dan Breznitz and Peter Cowhey, “America’s Two Systems of Innovation: Innovation for Production in Fos-

tering U.S. Growth,” Innovations, 7, 3, 2012: 127-154.

» Ching-Yan Wu and John A. Mathews, “Knowledge Flows in the Solar Photovoltaic Industry: Insights from

Patenting by Taiwan, Korea, and China,” Research Policy, 2012: 41(3), 524-540.

» John A. Mathews, “Reforming the International Patent System,” Review Of International Political Economy,

19, 1, 2012: 169-180.

» Xiaosheng Ju and Dic Lo, “The Cost and Benefit of Banking Regulations and Controls, Chinese Style,”

PSL Quarterly Review, 65(263), 2012: 385-402

REPORTS, RESEARCH NOTES & OTHERS PUBLICATION

» Dan Breznitz and Michael Murphree, “The Rise of China in Technology

Standards: New Norms in Old Institutions,” U.S.-China Economic and Securi-

ty Review Commission, 2013: U.S.A Senate Washington, DC.

» Kay Shimizu, “2013, Year of Japan’s Revival? Abenomics and the Politics

of Growth”, Japan Chair Platform, Center for Strategic & International Stud-

ies, January 17, 2013.

» Roy Green, Phillip Toner, and Renu Agarwal, “Understanding Productivity:

Australia’s Choice”, The McKell Institute, University of Technology Sydney,

November, 2012.

» Dan Breznitz and Michael Murphree, “Essential IP in China’s Technology

Standards Policy,” National Academies Project: Intellectual Property Manage-

ment in Standard-Setting Processes, 2012.

» John Zysman, Martin Kenney, Dan Breznitz, and Paul Wright, “Twenty First

Century Manufacturing.” Report to United-Nations Industrial Development

Organization (UNIDO), Vienna, Austria, 2012.

» Andrei Hagiu and Masahiro Kotosaka., “GREE, Inc.” Harvard Business Re-

view Case Collection, 2012.

» Fred Block, Matthew R. Keller, Andrew Schrank and Josh Whitford, “A

Strategy to Foster Advanced Manufacturing Networks in the United States,”

Strategy Brief for the Scholars Strategy Network, 2012.

by Roy Green, Philip

Tones, and Renu

Agarwal released on

November, 2012.

Understanding

Productivity:

Australia’s Choice

NEWS FROM AIR ASSOCIATES

» During the 2012-2103 academic year, Dan Breznitz is a visiting professor at

Collegio Carlo Alberto and the University of Turin Department of Economics

(S. Cognetti de Martiis) in Turin, Italy.

» Mary Adams has started a new company named Smarter-Companies. The

new company offers open source and proprietary tools that help consultants

and companies optimize the intangible capital making up 80% of the value of

the average business today. More information about the firm can be found at

http://www.smarter-companies.com/.

» Mustafa Erdem Sakinç is a researcher in a new research project “Marchés

et Santé comme Construction Politique et Organisationnelle / Health as a Po-

litical and Organizational Construction and Markets,” supported by Bordeaux

University and CNRS. The project, which is a continuation of two previous

research projects on the pharmaceutical and medicine industry by Bordeaux

researchers, will run through October of 2013.

» Novak Druce Centre for Professional Service Firms at Oxford University is

aiming to recruit Post-Doctoral Research Fellows who will do academic re-

search on professional service firms, create and manage a program of re-

search seminars, and contribute to the rich intellectual life of the Centre. The

Novak Druce Centre invites applications for Post-Doctoral Research Fellow-

ship to begin in October 2013.

» Peter Warrian has been awarded a five-year research grant on the Future

of the Canadian Automotive Industry to examine industrial policy and manu-

facturing issues arising from new emissions standards, including the use of

steel and other lightweight materials.

Breznitz and

Murphree win the

Susan Strange

Prize

Dan Breznitz and Michael

Murphree’s book, Run of

the Red Queen: Govern-

ment, Innovation, Globali-

zation, and Economic

Growth in China, has been

awarded the Susan

Strange Best Book in Inter-

national Studies Award

2012 by the British Interna-

tional Studies Association.

Comments? Suggestions? New Ideas? Share with us at:

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Cambridge, Massachusetts

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www.theAIRnet.org

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