Steven Usselman is Associate Professor in the School of History, Technology, and Society at Georgia Tech. Naomi Lamoreaux is Professor and Vice Chair for Academic Personnel in the Department of History at UCLA. Sally Clarke is Associate Professor of History at the University of Texas at Austin.

"These essays collectively allow the reader to walk a mile in the shoes of corporate managers faced with the difficult task of generating and sustaining innovation. As the authors vividly demonstrate, managers simultaneously built in-house R&D labs, forged external relationships, and monitored regulatory developments in order to 'reduce the uncertainty inherent in innovation and transform it into a manageable risk."—Eric S. Hintz, Technology & Culture "This collection of excellent studies offers a range of insights on contribution factors...The general introduction and those to each part by the editors Clark, Lamoreaux, and Usselman provide informative context and cohesiveness to this very worthwhile volume."—CHOICE "Written for economists and business executives, these articles focus on research, design and marketing concepts that must be managed by companies, networks of companies, intermediates in private industries and government institutions. Case studies on innovation in companies such as IBM, Bell Labs and Honda are also presented."Book News "The Challenge of Remaining Innovative is full of excellent papers by world-class scholars. This book makes a major contribution to thinking about innovation, among business and economic historians, and among contemporary scholars of innovation and economics."—JoAnne Yates, Author of Control through Communication: The Rise of System in American Management and Structuring the Information Age: Life Insurance and Information Technology in the 20th Century "The Challenge of Remaining Innovative charts the rise of research laboratory as the engine of innovation in the 20th century. Clarke, Lamoreaux, and Usselman provide new insight into this game changing institutional innovation, and their work challenges all of us to imagine the new ways of organizing and commercializing innovation that will power economic development in the 21st century." —Richard Florida, Author of The Rise of the Creative Class and Director of the Martin Prosperity Institute at the University of Toronto's Rotman School of Management "In The Challenge of Remaining Innovative, a stellar group of authors asks anew the Schumpeterian questions of innovation, the corporation, and the state. The result is a sophisticated and nuanced volume that will find itself at the center of future scholarship in this area." —Richard N. Langlois, Professor of Economics, The University of Connecticut

• Contents List of Figures and Tablesxi Acknowledgmentsxiii Contributorsxv Introduction1 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman Prologue: Reorganizing Innovation Introduction to the Prologue: Reorganizing Innovation000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 1 The Decline of the Independent Inventor: A Schumpeterian Story?000 Naomi R. Lamoreaux and Kenneth L. Solokoff, Part I: Within Firms Introduction to Part I: Within Firms000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 2Corning as Creative Responder: A Schumpeterian Interpretation of Disruptive Innovation000 Margaret B. W. Graham 3Probability Theory and the Challenge of Sustaining Innovation: Traffic Management at the Bell System, 1900-1929000 Paul J. Miranti, Jr. 4Rethinking the Invention Factory: Bell Laboratories in Perspective000 Kenneth Lipartito Part II: Among Firms Introduction to Part II: Among Firms000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 5Stanford University and Frederick Terman's Blueprint for Innovation in the Knowledge Economy000 Stephen B. Adams 6The Bold and the Foolhardy: Hurricanes and the Early Offshore Oil Industry000 Joseph A. Pratt 7Mementos: Looking Backwards at the Honda Motorcycle Case, 2003-1973 000 Christopher McKenna Part III: Firms and the State Introduction to Part III: Firms and the State000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 8Unbundling IBM: Antitrust and the Incentives to Innovation in American Computing000 Steven W. Usselman 9Credit and the Mature Market for Automobiles000 Sally H. Clarke Notes000 Selected Bibliography000 Index000

Steven Usselman is Associate Professor in the School of History, Technology, and Society at Georgia Tech. Naomi Lamoreaux is Professor and Vice Chair for Academic Personnel in the Department of History at UCLA. Sally Clarke is Associate Professor of History at the University of Texas at Austin.

"These essays collectively allow the reader to walk a mile in the shoes of corporate managers faced with the difficult task of generating and sustaining innovation. As the authors vividly demonstrate, managers simultaneously built in-house R&D labs, forged external relationships, and monitored regulatory developments in order to 'reduce the uncertainty inherent in innovation and transform it into a manageable risk."—Eric S. Hintz, Technology & Culture "This collection of excellent studies offers a range of insights on contribution factors...The general introduction and those to each part by the editors Clark, Lamoreaux, and Usselman provide informative context and cohesiveness to this very worthwhile volume."—CHOICE "Written for economists and business executives, these articles focus on research, design and marketing concepts that must be managed by companies, networks of companies, intermediates in private industries and government institutions. Case studies on innovation in companies such as IBM, Bell Labs and Honda are also presented."Book News "The Challenge of Remaining Innovative is full of excellent papers by world-class scholars. This book makes a major contribution to thinking about innovation, among business and economic historians, and among contemporary scholars of innovation and economics."—JoAnne Yates, Author of Control through Communication: The Rise of System in American Management and Structuring the Information Age: Life Insurance and Information Technology in the 20th Century "The Challenge of Remaining Innovative charts the rise of research laboratory as the engine of innovation in the 20th century. Clarke, Lamoreaux, and Usselman provide new insight into this game changing institutional innovation, and their work challenges all of us to imagine the new ways of organizing and commercializing innovation that will power economic development in the 21st century." —Richard Florida, Author of The Rise of the Creative Class and Director of the Martin Prosperity Institute at the University of Toronto's Rotman School of Management "In The Challenge of Remaining Innovative, a stellar group of authors asks anew the Schumpeterian questions of innovation, the corporation, and the state. The result is a sophisticated and nuanced volume that will find itself at the center of future scholarship in this area." —Richard N. Langlois, Professor of Economics, The University of Connecticut

• Contents List of Figures and Tablesxi Acknowledgmentsxiii Contributorsxv Introduction1 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman Prologue: Reorganizing Innovation Introduction to the Prologue: Reorganizing Innovation000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 1 The Decline of the Independent Inventor: A Schumpeterian Story?000 Naomi R. Lamoreaux and Kenneth L. Solokoff, Part I: Within Firms Introduction to Part I: Within Firms000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 2Corning as Creative Responder: A Schumpeterian Interpretation of Disruptive Innovation000 Margaret B. W. Graham 3Probability Theory and the Challenge of Sustaining Innovation: Traffic Management at the Bell System, 1900-1929000 Paul J. Miranti, Jr. 4Rethinking the Invention Factory: Bell Laboratories in Perspective000 Kenneth Lipartito Part II: Among Firms Introduction to Part II: Among Firms000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 5Stanford University and Frederick Terman's Blueprint for Innovation in the Knowledge Economy000 Stephen B. Adams 6The Bold and the Foolhardy: Hurricanes and the Early Offshore Oil Industry000 Joseph A. Pratt 7Mementos: Looking Backwards at the Honda Motorcycle Case, 2003-1973 000 Christopher McKenna Part III: Firms and the State Introduction to Part III: Firms and the State000 Sally H. Clarke, Naomi R. Lamoreaux, and Steven W. Usselman 8Unbundling IBM: Antitrust and the Incentives to Innovation in American Computing000 Steven W. Usselman 9Credit and the Mature Market for Automobiles000 Sally H. Clarke Notes000 Selected Bibliography000 Index000