This book takes a new look at the golden age in neoclassical growth theory and explores in detail sustainability and optimum growth in China, the US and Europe. Innovation, foreign direct investment, trade and growth dynamics are key elements in modern economies – including perspectives on green growth and aspects of the knowledge production function in the context of multinational companies. As such the book considers the role of foreign direct investment in a modified growth model and discusses innovation in an enhanced Mundell-Fleming macro model. Moreover, for the first time it directly links a knowledge production function to the macro production function in a broader context, including real money balances in the production function. It shows – also with empirical relevance – that FDI inward stocks relative to the GDP of host countries, the number of researchers and per capita income are relevant drivers of new knowledge and the stock of knowledge, respectively. This new Schumpeterian theoretical approach lends itself to important policy conclusions for both OECD members and newly industrialized countries.

"This book is able to explain and analyze what has eluded both scholars and thought leaders in business and the media - how and why populism has grabbed center stage. Highly recommendable." -David B. Audretsch, Indiana University Bloomington, USA "Welfens provides valuable insight into US politics and describes the strategic options for Europe going forward." -Barry Eichengreen, University of California, Berkeley, USA "With great skill Welfens traces the implications of US populism for the global economic system." - Jeffrey D. Sachs, Columbia University, USA "This critique of Trump ́s fiscal and international trade policies and their weak intellectual basis deserves the attention of US and European readers alike" -Richard H. Tilly, University of Münster, Germany What lies behind the Trump victory of 2016 and the US' new raft of economic policies? Is a populist presidency in the United States likely to be a temporary phenomenon or a structural long-term challenge? In an era of declining multilateralism, what can the US still stand to learn from Europe, where several countries have effective lifetime economic welfare equal to that of the US - and what can the EU learn from the US in return? Furthermore, what international economic dynamics can be expected from the Sino-US trade conflict and can globalization be maintained? In this timely volume, Paul Welfens provides a rare, clear-sighted and scholarly analysis of the global problems created by Trump's protectionism and economic policy. He leverages his understanding of these problems to make concrete policy suggestions that could help prevent the world economy from falling back into a variant of the Great Powers regime of the late nineteenth century.

The role of the state in modern capitalism has gone beyond fixing market failures. Those regions and countries that have succeeded in achieving “smart” innovation-led growth have benefited from long-term visionary “mission-oriented” policies—from putting a man on the moon to tackling societal challenges such as climate change and the wellbeing of an ageing population. This book collects the experience of different types of mission-oriented public institutions around the world, together with thought-provoking chapters from leading economists. As the global debate on deficits and debt levels continues to roar, the book offers a challenge to the conventional narrative—asking what kinds of visionary fiscal policies we need to help promote "smart” innovation-led, inclusive, and sustainable growth.

First published in 1998. Routledge is an imprint of Taylor & Francis, an informa company.

Since the first edition was published in 1998, there has been a worldwide innovation-led boom & subsequent slump. This new edition registers this change & offers an interesting test of the robustness of the original arguments.

Explores the accomplishments of the golden age of "macrohistory," the sociologically informed analysis of long-term patterns of political, economic, and social change. The topics range from the Marxian-inspired theory of revolutions to the roots of the Holocaust.

This book investigates how technology and innovation policies in contemporary China are impacted by collaboration and conflicts between different classes and interests in a world economy, in which competitiveness is defined by the successful leverage of emerging technologies. Focusing on the actual processes and outcomes of technological upgrading in three dynamic sectors, the book presents an alternative approach to understanding China’s industrial upgrading strategies, by examining the ways in which the making and implementation of policies are shaped by political struggles between state actors and dominant capitalist interests in the context of global capitalism. In doing so, the book challenges influential institutionalist approaches as explanations of institutional change, positing instead a political economy framework grounded in social conflict theory to reveal how power relationships and politics are intrinsic to the evolution, form, and function of institutions. This book will be of key interest to scholars and students of international political economy, development studies, globalisation and innovation, China and Chinese politics, and public policy.