Two Best Ways? Institutions and the Evolution of the US and Japanese Semiconductor Industries

Interest in how institutional factors shape economic development has escalated substantially in recent years. Economists and other social theorists have recognized that the design of effective policy, at both the national and firm levels, requires an understanding of the institutional context within which policies will be implemented, and of the interaction of organizational forms with that context. Leading economists now widely accept that 'institutions do matter' (Williamson, 2000). As Williamson acknowledges, however, agreement essentially terminates at that point.