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Economic Insight > Blog > Economics > The political economy of horses for courses
The political economy of horses for courses
Economics

The political economy of horses for courses

EC Team
Last updated: April 27, 2025 6:59 pm
EC Team
Published April 27, 2025
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That was the fact Lectures by Dan Breznitz from the University of Manchester For the National Productivity Week that Warned Me in His Book Innovation in real places. Sadly, I couldn’t go to Manchester for a lecture, but I really recommend the book. The central argument is that innovative business forms depend on the details of their economic context, and most places hope to become the next Silicon Valley A, demanding that innovation policies be properly coordinated.

The purpose of the innovation policy is general. It ensures that the companies and individuals involved have the necessary capabilities and supports the entire space system they operate. There are also some basics of policy. Make sure local businesses are connected to the production network (international). We provide the necessary public goods (skills, prototyping production facilities, exhibitions…). It focuses on the entire local ecosystem, including whether funding and business models will work together. Adjust policies over time as the ecosystem grows.

Considering the basics,He books Set up four different routes with an example of how each particular location continues. The imagination of innovation policy is dominated by Silicon Valley models, frontier innovation, VC finance, and star entrepreneurs. (This doesn’t look better than it was in the past, and as the book commented in the introduction, “There’s no amount of competition to shake up a comfortable oligocory from the tensions of power.”) Technological startups, like all startups, require extensive social networks, but are expanded geographically rather than locally in this sector. So, no matter where the silicon is heading, those involved could end up moving to Menlo Park or Mountain View when they are successful. The book gives examples of technology clusters that start normally in Atlanta, Georgia, but then leaves. The book argues that the conditions of such clusters are rare in any case, and that this model leads to the widespread prosperity of the region and inequality rather than good work.

The second model is in the design, prototyping and production engineering stages, while Taiwan is Exaplar. The third is the innovation of components and second generation products, “a lightly spun hero in the dishonor of economic growth,” with examples from Germany and China. Because the final model is production and assembly, it is adopted in the Pearl River Delta region of China and has very successful innovations in the modes of production, assembly and logistics.

After setting up these broad models, the rest of the book is packed with examples of innovation policies, both good and bad. As it points out, many policy thinking is lazy. If it goes beyond the goal of being the next Silicon Valley, “One of the most common ways that a region fails is to focus on the trendiest complementarities, such as venture capital, University Parks, Greentech, or AI.” Professor Breznitz’s important message is that there is no substitute for details, but a constant willingness to adjust policies as things change. The book identifies the central challenges of political challenges. Successful innovation policies often succeed by flying under the radar of political attention, but if they succeed, they cannot avoid politicization. Innovation policies are difficult enough to get right, but political and economic challenges may still be difficult.

Anyway, a A wise bookthere are many great examples, and hopefully the lecture will soon be online.

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