About the Interview
Innovation drives economic growth and welfare, and the industrial corporation drives innovation, says William Lazonick. But just how do corporations innovate? The key idea is commitment. People with knowledge of and experience in particular industries commit to a business model that ventures into unknown territory. The main problem is that modern financiers are not prepared to support commitment, and the modern executive pushes for stock buy-backs -- that is how Wall Street undermines innovation. Understanding how organization drives innovation -- this is new economic thinking.
William Lazonick is a professor at the University of Massachusetts Lowell where he directs the Center for Industrial Competitiveness, and co-founder and president of The Academic-Industry Research Network (theAIRnet). Full profile