The Innovation Illusion

Why has Western economic growth stalled? Conventional wisdom holds that America and Europe are on the threshold of an innovative boom, one that will lead to a new era of high economic growth. With expertise spanning academia and the business world, Fredrik Erixon and Björn Weigel refute this idea. Bringing together an array of data from the past 40 years and drawing on examples including Uber, Microsoft, Apple and IBM, they show that Western capitalism has lost its propensity for experimentation, adaptation and growth. This riveting book reveals the obstacles hindering our future prosperity. Erixon and Weigel argue that modern corporate practices are no longer compatible with a rapid increase in innovation-led economic growth. Western firms, today, have owners who want predictability and managers who shield companies from strong innovation competition. Governments have also played their part through the creation of excessive and complex regulations that foster uncertainty. And globalization - once a key force for global growth - no longer propels technology and competition as much as before. These forces have made capitalism dull, hidebound and, crucially, less receptive to innovation. The consequences of poor economic growth on inequality, opportunity and political stability surround us. Whilst many commentators and doyens of economics worry about the impact that robots will have on jobs, The Innovation Illusion shows why our primary concern should be a dearth of innovation. The authors lay out a road map to reverse this trend and help halt the trajectory of economic decline. Thought-provoking and insightful, this book is required reading for business leaders, policymakers and all those interested in the future. -- from dust jacket.