1. A great deal of innovation also takes place in small firms, as epitomized by the Silicon Valley model. But innovations by large firms, such as Du Pont, IBM, Toyota, ATT, and the Japanese electronic manufacturers, to name just a few, have been underestimated. See, for example, Michael Piore and Charles Sable, The Great Industrial Divide (New York: Basic Books, 1986).
2. See Robert Reich, The Work of Nations (New York: Vintage, 1992). Also
3. Robert Reich, “Who Is Us?” Harvard Business Review 90, no. 1 (March-April 1990): 53–94. For a contrary view, see Tyson, “Does a National Trade Policy Make Sense?”
4. Terutomo Ozawa, “Japan,” in John Dunning (ed.), Multinational Enterprises, Economic Structure, and International Competitiveness (New York: John Wiley, 1985), table 5.2.
5. See Richard Caves, “International Corporations: The Industrial Economics of Foreign Investment,” Economica 38, no. 149 (1971): 1–27. Summarizing a series of industry case studies, Gary Gereffi and Richard Newfarmer conclude that “the positions of dominance of TNCs in international markets are rooted in monopolistic advantages protected by barriers to entry at home and abroad.” See