Skill formation in wealthy nations: Organizational evolution and economic consequences

Mary O’Sullivan and William Lazonick
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Mary O’Sullivan: The STEP Group, Studies in technology, innovation and economic policy, http://www.step.no/

No 199423, STEP Report series from The STEP Group, Studies in technology, innovation and economic policy

Abstract: This paper provides a general analysis, based on a synthesis of considerable empirical evidence, of the causes and consequences of differences in the process of skill formation in four wealthy nations -- Japan, United States, Germany, and Britain -- in the post-World War II decades. First, we provide a general perspective on the strategy and structure of skill formation in major industrial enterprises in each of these nations during the past few decades. Then we look at the historical evolution of the skill-formation systems in these four nations to gain insights into the problems and possibilities of restructuring a previously successful skill-formation system when it no longer yields competitive advantage. Finally, we outline the implications of the comparative analysis of systems of skill formation for understanding changes in international competitive advantage.

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