How American industries rose to dominate the economic landscape in the
twentieth century
For much of the twentieth century, American corporations led the world
in terms of technological progress. Why did certain industries have such
great success? Experimental Capitalism examines six key
industries--automobiles, pneumatic tires, television receivers,
semiconductors, lasers, and penicillin--and tracks the highs and lows of
American high-tech capitalism and the resulting innovation landscape.
Employing "nanoeconomics"--a deep dive into the formation and
functioning of companies--Steven Klepper determines how specific
companies emerged to become the undisputed leaders that altered the
course of their industry's evolution.
Klepper delves into why a small number of firms came to dominate their
industries for many years after an initial period of tumult, including
General Motors, Firestone, and Intel. Even though capitalism is built on
the idea of competition among many, he shows how the innovation process
naturally led to such dominance. Klepper explores how this domination
influenced the search for further innovations. He also considers why
industries cluster in specific geographical areas, such as
semiconductors in northern California, cars in Detroit, and tires in
Akron. He finds that early leading firms serve as involuntary training
grounds for the next generation of entrepreneurs who spin off new firms
into the surrounding region. Klepper concludes his study with a
discussion of the impact of government and the potential for policy to
enhance a nation's high-tech industrial base.
A culmination of a lifetime of research and thought, Experimental
Capitalism takes a dynamic look at how new ideas and innovations led to
America's economic primacy.
