Understanding Capitalism Part V: Evolution of the American Economy By - March 15, When the United States of America was founded in it was the most egalitarian Western nation in the world for citizens of European descent, indeed one of the most egalitarian major societies in all of human history. It was the relative equality of white American society that made America such an attractive place for European immigrants and a "land of opportunity".
The region's dense social networks and open labor market encourage entrepreneurship and experimentation. Companies compete intensely while learning from one another about changing markets and technologies through informal communication and collaboration.
In a network-based system, the organizational boundaries within companies are porous, as are the boundaries between companies themselves and between companies and local institutions such as trade associations and universities.
The Route region is dominated by a small number of relatively vertically integrated corporations. Its industrial system is based on independent companies that keep largely to themselves.
Secrecy and corporate loyalty govern relations between companies and their customers, suppliers, and competitors, reinforcing a regional culture that encourages stability and self-reliance.
Corporate hierarchies ensure that authority remains centralized, and information tends to flow vertically. The boundaries between and within companies, and between companies and local institutions, thus remain distinct in the independent-company-based system.
The performance of Silicon Valley and Route in the past few decades provides insights into regional sources of competitiveness. Far from being isolated from what's outside them, companies are embedded in a social and institutional setting -- an industrial system -- that shapes, and is shaped by, their strategies and structures.
Understanding regional economies as industrial systems rather than as clusters of producers, and thinking of Silicon Valley and Route as examples of the two models of industrial systems -- the regional-network-based system and the independent-company-based system -- illuminate the different fates of the two economies Geography probably played as critical role in this rate as the informal social contacts.
The spatial concentration of a large number of technology-based firms enabled people to change employers without altering other aspects of their lives.
When a person left one firm in Palo Alto for another, there was no need to move one's residence or take one's kids out of a particular school district to enter a different firm. The attitude of the Valley served as a catalyst for this risk-taking. In many cases, a small coterie of employees in a firm dissatisfied with their current place of employment would gather together after work to tinker around with some of their own ideas.
They would then develop a business plan, acquire funds from venture capitalists, and seek advice from local academic sources. If they succeeded they were heroes. If they failed, many employers were located in the same town or in a neighboring community Saxenian As people in the region became occupationally mobile, their roles became interchangeable: The result is that the engineers developed strong loyalties to technology and their fellow engineers and scientists while possessing far less allegiance to a single firm Saxenian Although it may seem paradoxical that such cooperation would occur under such obviously competitive circumstances, Saxenian notes the motto of the region: Applied scientific research was constantly reworked to develop market goods.
It is not surprising that rapid changes led to industrial diversification and contributed to the flexibility and resilience of the economic region Saxenian The lack of rigid hierarchies extended to the firms themselves.
The traditional delineations between employers and employees were not so sharp as on the East Coast, and in some cases they disappeared entirely.
Beginning with Hewlett and Packard, many of the Silicon Valley companies sought a much more interactive environment between employers and employees. Decentralization of powers followed: The region's dense social networks and relatively open labor markets encourage entrepreneurship and experimentation' Saxenian Santa Clara County, California, known as the Valley of Heart's Delight, was a tranquil expanse of apricot, plum, and cherry orchards.
Professor Frederick Terman of Stanford University's Department of Electrical Engineering enjoyed the tranquillity, but he was concerned with the great lack of opportunities for Stanford Engineering graduates to find jobs in the area.
His graduates had to go miles to the east coast because there were few jobs for them locally. He began to encourage some of his students to start companies near the university Furthermore, I hadn't come all the way to California just to sit in some cubicle.Life in Great Britain during the Industrial Revolution underwent vast social and economic changes, the result of developments in mechanised working methods, and the introduction of the factory system and the steam engine.
The lives of large sections of the population of Great Britain underwent massive changes during the Industrial Revolution. Oct 02, · In Europe, the Industrial Revolution changed all of Europe even while some aspects stayed the same.
During the time period of and , the Industrial Revolution changed Europe politically, socially, and economically. This thematic study will enable students to gain an understanding of the development of the relationship between the citizen and the state in Britain over a long period of time.
Understanding Capitalism Part V: Evolution of the American Economy. By - March 15, When the United States of America was founded in it was the most egalitarian Western nation in the world for citizens of European descent, indeed one of the most egalitarian major societies in . By the start of the American Revolution, the British military was spread thinly across their global empire.
Despite having tens of thousands of troops in America throughout the war, it was still necessary to supplement their numbers by hiring foreign troops. These years were largely those of the Omayyad Amirs and Caliphs, who may be said to have presided over the Golden Age of Islâmic Spain.
The suprisingly rapid decline of the Omayyads in the 11th century quickly led to complete political fragmentation and to grave vulnerability to the rising Christian Kingdoms.