2 Adam Davidson, “Making It in America,” Atlantic, January/February 2012.
3 For a discussion of the statistical controversies around U.S. manufacturing output, see David Adler, “The Real Challenge for U.S. Industry,” City Journal, March 29, 2017.
4 Koen De Backer, Timothy DeStefano, Carlo Menon, and Jung Ran Suh, “Industrial Robotics and the Global Organisation of Production,” OECD Science, Technology and Industry Working Papers 2018/03, February 27, 2018.
5 “Productivity and Costs by Industry: Manufacturing and Mining Industries—2017” (news release), U.S. Department of Labor Bureau of Labor Statistics, April 19, 2018.
6 Bart Los, Marcel P. Timmer, and Gaaitzen J. de Vries, “How Global Are Global Value Chains?: A New Approach to Measure International Fragmentation,” Journal of Regional Science 55, no. 1 (January 2015): 66–92.
7 Dan Breznitz and Peter Cowhey, “America’s Two Systems of Innovation,” Innovations: Technology, Governance, Globalization 7, no. 3 (Summer 2012): 127–54.
8 Henry Kressel. “Edison’s Legacy: Industrial Laboratories and Innovation.” American Affairs 1, no. 4 (Winter 2017): 115–29.
10 Peltz’s comment has been reported widely. See for instance, Wendy Lea, “Peltz’s Proxy Fight with P&G Misguided,” Cincinnati.com, October 6, 2017.
11 Lorsch is quoted in the article, Stephen Gandel, “How DuPont Went to War with Activist Investor Nelson Peltz,” Fortune, May 11, 2015. Note that this article was written before DuPont lost the war.
12 See also Susan Helper and Howard Wial, “Strengthening American Manufacturing: A New Federal Approach,” Brookings Institution, September 27, 2010.
13 “Productivity and Costs, Fourth Quarter and Annual Averages 2017, Revised,” Department of Labor Bureau of Labor Statistics, March 7, 2018.
14 Susan Christopherson and Jennifer Clark, Remaking Regional Economies: Power, Labor, and Firm Strategies in the Knowledge Economy (London: Routledge, 2007), 131–32.
15 Willy C. Shih, “The U.S. Can’t Manufacture the Kindle and That’s a Problem.” Harvard Business Review, October 13, 2009.
16 This definition is from the National Academy of Sciences and nearly matches the textbook definition of “process innovation.” For more about Fraunhofers and innovation intermediaries across the world, see National Research Council, 21st Century Manufacturing: The Role of the Manufacturing Extension Partnership Program (Washington, D.C.: National Academies Press, 2013).
17 Edmund Phelps, “America’s Policy Thinking in the Age of Trump” (speech at the annual meeting of the American Economic Association, Philadelphia, January 2018).
18 There is a growing literature in political science and economic geography focused on the links between innovation and production, and America’s weakness in downstream R&D. See, for example, Production in the Innovation Economy (Cambridge: MIT Press, 2014); Dan Breznitz, Innovation and the State: Political Choice and Strategies for Growth in Israel, Taiwan, and Ireland (New Haven: Yale University Press, 2007); and publications from the American Association of Economic Geography Specialty Group, and the Industries Studies Association.
19 “About darpa,” Defense Advanced Research Projects Agency.