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1、 64 Harvard Business Review lanuary-February 1984 ogies do indeed quickly decline, as is the case today in all developed countries. But industries based on new tecbnologies and market opportunities grow so rapidly tbat tbey generate the requisite investment demand and employment to produce overall e
2、conomic growtb. As Josepb Schumpeter and others have shown, tbe Kondratieff trough experienced by Great Britain and France in the late nineteenth century simply did not happen in tbe United States or Germany. True, old and mature industries did decline; overall, however, tbere was rapid economic gro
3、wtb, not stagnation. Industries based on new technologies and market opportunities grew fast enougb to provide investment demand and employment. Tbe surest indication of sucb an atypical cycle - and precisely wbat we see about us today in the United States-is tbe emergence of entrepreneurs across a
4、spectrum of activities tbat extends far heyond wbat at the time is considered bigb tecb. It is, to be sure, a period of bigb risk, rapid change, considerable turbulence, and severe anxiety. Real dangers abound tbat bave notbing to do witb business cycles-tbe threat of war, for example, or of tbe col
5、lapse of raw material producers. Nevertbeless, it is a period of great opportunity, of fast-growing employment in certain areas, and of rapid overall growtb. And as Schumpeter understood, what distinguisbes sucb an atypical cycle from a more conventional trougb is not tbe play of abstract economic f
6、orces. It is entrepreneurial energy. What role for government? As anotber national election approacbes, discussion grows ever more beated about what govemment sbould do during tbis time of industrial transition. One line of argument, best represented by Robert Reicb's The Next American Frontier,
7、 presses for govemment not to support employment in tbe old smokestack industries but to basten tbeir automation wbile subsidizing tbeir redundant blue-collar workers. Tbe key assumption bere - tbat we will more quickly regain industrial leadership tbe sooner we decrease blue-collar manual employmen
8、t in traditional massproduction industries-bas good historical precedent. During the past 40 years, tbe faster we reduced bluecollar manual employment on the land, the more regularly we boosted agricultural production. Reich's advice to his fellow Democrats tbat tbey put more distance between tb
9、emselves and tbeir traditional base of support among hlue-coUar unions, thougb novel, is surely sbrewd and well taken. But bis complementary suggestion to call on big govemment for central planning of tbe new bigh technologies - even if good politics - is wretcbed eeonomics and bound to fail. Tbis q
10、uestionable suggestion assumes tbat bigb tecb is by itself wbere most future economic growth will happen. It clearly is not. It comprises only a part of tbe arena for growtb, and by no means tbe main part. The biggest areas witb tbe largest bigbpaying employment opportunities are elsewbcre: in bealt
11、b care, for instance, and in continuing education. Govemment planning centered on bigh-tecb industries will inevitably miss major growtb areas. Furtbermore, can govemment really plan for tbe unknown? Wbetber planning is done Russian-style, Japanese-style, or Frencb-style, it aims, by definition, at
12、"catching up"-tbat is, at doing wbat some other country has already done hut doing it better, more quickly, and witb fewer mistakes, false starts, and failures. Hence, efforts to plan for tbe unknown bave always ended up, like French bigb-tecb planning under Mitterrand in tbe last three ye
13、ars, in misallocation of resources, frustration, and bad guesses about true growtb areas. No one can plan for what does not yet exist; all one can do is encourage or discourage it. How tben do we encourage entrepreneurial growtb in the American economy? Of course, we must guard against sacrificing t
14、omorrow on tbe altar of yesterday, as tbe Britisb bave done so consistently for tbe past 30 years. Of course, we must cusbion tbe impact of falling employment in tbe old smokestack industries. Doing all tbis witbout burting tbe capacity of new employers to generate new jobs is going to be excruciati
15、ngly difficult and will require political decisions as bard as any ever made in tbis country. Beyond trying not to stunt tbis new economic growth, tbe only thing govemment can effectively do is to remove obstacles. Indeed, tbe greatest belp government can provide the entrepreneurial economy is to assuage tbe most crippling ailment of infant
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