Organizational Innovations and Economic Growth
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Organizational Innovations and Economic Growth

Organosis and Growth of Firms, Sectors and Countries

Elias Sanidas

Analysing the USA and Japan from the late 19th century to the present day, the book provides an accessible synthesis of economics, management and econometrics to calculate the impact of various organizational innovations on economic growth. The author concludes that organizational innovations make essential contributions to sustained economic growth and that this should be reflected in economic policy both at the firm and the national level.
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Chapter 6: OIs and Manufacturing Sectors’ Growth in the USA and Japan

Elias Sanidas


6.1 INTRODUCTION In the previous four chapters, the important role of OIs in promoting industrial growth in the USA and Japan has been extensively discussed from a theoretical point of view. In this chapter, a general discussion of manufacturing sector growth1 in these two countries will provide additional support for this view. Emphasis will be given to the role of leading firms and sectors in terms of OIs. This chapter is primarily descriptive, and discusses sectoral performance in terms of OIs and at times in terms of OIs and TIs together. Also, some basic quantitative evidence will be provided; however, a more rigorous empirical exploration is conducted in the next chapter. Two periods will be analysed separately; first, from the end of the 19th century up to World War II (section 6.2), and from the 1950s up to the end of the 20th century (section 6.3). For the former period and for the USA, growth rates of real output and total factor productivity (TFP) for various critical sub-periods will be calculated, and appropriate conclusions will be drawn regarding the impact of OIs on manufacturing sub-sectors. For Japan, due to the lack of substantive data, a simpler analysis will be conducted by examining the time series of some basic manufacturing sectors’ real production. For the second period,2 a graphical representation of the three-digit industrial sectors of the two countries will be shown, with the aim of comparing the growth in real output and TFP between sectors and between countries; at...

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