Policy Press

States of Innovation

Driving the American Economy in the 21st Century

By James D. G. Wood

Challenging the notion of the US as a singular market-driven economy, this book reveals the critical role that both the Federal and State governments play in shaping growth and how individual states vary significantly in fostering innovation and high-value industries.

This book unveils the forces behind the dynamic knowledge economy that drove America’s 21st century economic success.

Challenging the notion of the US as a singular market-driven economy, the book introduces the concept of the 'Polycentric Innovation State' to explain the critical role federal and state governments play in shaping innovation-led growth. Through detailed comparative analysis of four states, the book demonstrates how regional authorities pursue distinct yet overlapping strategies to foster high-value industries. Essential reading for scholars of comparative political economy and American governance, this book offers fresh insights into the evolving landscape of American capitalism and state-market relations.

James D. G. Wood is a Senior Teaching Associate in Political Economy in the Department of Politics and International Relations at the University of Cambridge.

1. Introduction

2. The Federal Developmentalist State

3. California

4. Texas

5. Maine

6. Michigan

7. Conclusion