From the New World cover image

Noah Smith: The Weeb Economy

From the New World

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Navigating the Innovator's Dilemma

This chapter explores the innovator's dilemma in the context of post-World War II America and its effect on technological evolution, particularly highlighting the struggles of companies like RCA and Bell. It delves into the reciprocal technology transfer between the U.S. and Japan, examining the latter's reluctance to innovate beyond traditional models, as well as the rise of Chinese electric vehicle manufacturers against a backdrop of governmental influences and market dynamics. Furthermore, the chapter discusses foreign direct investment strategies by Chinese firms in response to international tariffs and the implications of an aging labor force on global manufacturing.

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