Financing Innovation in the United States, 1870 to Present (The MIT Press)

Uncover the intricate relationship between finance and technological advancement in the United States from 1870 to the present day with "Financing Innovation in the United States, 1870 to Present," a seminal work edited by Naomi R. Lamoreaux and Kenneth Lee Sokoloff. This insightful book, published by The MIT Press, delves deep into the mechanisms by which American innovation has been funded, exploring how these financial pathways have shaped the trajectory of technological change and economic growth. Challenging the conventional wisdom that often overlooks the critical link between capital and invention, this volume brings together leading economists and economic historians to offer a comprehensive analysis of the American experience. Through a series of compelling case studies and robust theoretical frameworks, the book illuminates the diverse strategies employed by inventors and entrepreneurs to secure funding for their groundbreaking projects, starting from the transformative era of the Second Industrial Revolution. "Financing Innovation in the United States" reveals that the story of American technological progress is not just about brilliant ideas and ingenious inventions; it's also a story of resourcefulness, adaptation, and the evolving landscape of finance. The book meticulously examines how the nature of technology itself influences its funding options, and conversely, how the availability of capital impacts the kinds of technological advances that are pursued. Readers will gain a nuanced understanding of how inventors navigated various funding avenues, from seeking out local investors in burgeoning urban centers to partnering with large corporations capable of accessing the securities market. The book also explores the pivotal role of federal government funding for research and development, as well as the rise of the venture capital industry as a key player in supporting high-risk, high-reward innovation. Furthermore, the book provides crucial context on the distinctive nature of financing across various sectors, from the automobile industry to the revolutionary realm of information technology. The expert analyses reveal how these financing methods have profound implications for the direction of technological change and the overall competitive dynamism of the American economy. This reprint edition, totaling 520 pages, offers an invaluable resource for students, researchers, and anyone interested in the dynamic interplay between finance, technology, and economic development. Lamoreaux and Sokoloff have compiled a collection of essays that serve as an essential guide to understanding the financial underpinnings of American innovation, offering lessons and insights that remain highly relevant in today's rapidly evolving technological landscape. Weighing approximately 680 grams, this paperback edition provides a comprehensive and accessible examination of a critical aspect of American economic history.