Summary

"This magisterial volume will be the definitive study of the economics and history of the chemical industry for many years to come. The core of the volume is a study of the process of innovation in the first industry to employ science as a basis for technology. This extends over 150 years and covers four leading countries-Britain, Germany, Japan, and the United States. . . . The book will be of interest to participants in the industry, economists, and economic historians interested in growth, business school faculty and students concerned with corporate strategy, especially the management of technical change, and finally, policymakers who create the legal and political environment within which the industry has developed."-Dale W. Jorgenson, Frederic Eaton Abbe Professor of Economics, Harvard University

"The chemical industry will continue to be a leading indicator of economic development in the century ahead. The research and conclusions of Ralph Landau and his colleagues capture the structure, processes, and future of the industry and make [this] book required reading for all who follow the field." -Frank Popoff, Chairman, The Dow Chemical Company

"Given the magnitude and pervasiveness of the chemical processing industry which underlies all manufacturing, this study of the dynamics of interactions among technology, economics, and politics should become must reading for all serious students of industrial development." -S. Allen Heininger, Past President, American Chemical Society

"A painstakingly thorough and insightful analysis of the global chemical industry. . . . It will be of great value to economic historians and economists concerned with the growth of modern industrial societies. It is must reading for executives and scholars concerned with innovation and competitiveness." -David J. Teece, Director, Institute of Management, Innovation & Organization Mitsubishi Professor, Walter A. Haas School of Business, University of California, Berkeley

"The innovativeness of the chemical industry has made it a key player in the development of the modern world economy. Analysis of the industry's long-term growth therefore gives an insight into the interaction between science, technology, and economic progress, as this book demonstrates. At the same time, the analysis offers observations that are of great practical relevance to today's issues." -Professor Doctor Gottfried Plumpe, Bayer Corporation

The chemical industry has been one of the world's best managed and most consistently successful business performers for 150 years. Now, drawing together fourteen of the most respected economists and industry experts, the editors of Chemicals and Long-Term Economic Growth present one of the most extensive studies of this industry in order to uncover the secrets behind this remarkable track record.

With economic and managerial insights supported by specific real-world examples, this book shows how the development of the chemical industry can provide insights for achieving and sustaining economic growth. Scientists and business leaders in the chemical industry and many other technological fields, and economists generally, may benefit from the history and analysis presented in this book.

This book examines:
* The role of science, innovation, technology, and organization in creating economic growth and profits
* Chemical industry growth in Germany, Britain, the United States, and Japan, including an analysis of relative strengths and weaknesses
* The impact of macroeconomics, legal and financial institutions, corporate finance, and other policies and institutions on the behavior of chemical companies
* The principle of comparative advantage-why certain industries excel in certain areas.