Despite the dominant role of market fundamentalist ideas in U.S. politics over the last thirty years, the Federal government has dramatically expanded its capacity to finance and support efforts of the private sector to commercialize new technologies. But the partisan logic of U.S. politics has worked to make these efforts invisible to mainstream public debate. The consequence is that while this “hidden developmental state” has had a major impact on the structure of the U.S. national innovation system, its ability to (...) be effective in the future is very much in doubt. The article ends by arguing that the importance of these developmental initiatives to the U.S. economy could present a significant opening for new progressive initiatives. (shrink)

This article develops and defends a theory of "network failure" analogous to more familiar theories of organizational and market failure already prevalent in the literature on economic governance. It theorizes those failures not as the simple absence of network governance, but rather as a situation in which transactional conditions for network desirability obtain but network governance is impeded either by ignorance or opportunism, or by a combination of the two. It depicts network failures as continuous rather than discrete outcomes, shows (...) that they have more than one cause, and pays particular attention to two undertheorized—if not undiscovered—types of network failure. It thereby contributes to the development of sociology's toolkit for theorizing networks that are "neither market nor hierarchy.". (shrink)