Book Notes: Innovation for the Masses: How to Share the Benefits of the High-Tech Economy

Note: This brief quasi-book review/book synopsis is the first item in an experimental new section of SSTI’s newsletter, potentially joining other regular sections such as Useful Stats, Fed/Leg News, State News, Member Updates, and Recent Research. Its periodic continuation after the contributions we present over the summer will depend on feedback from our members and Digest readers. Comments may be shared with skinner @ ssti.org

Balancing innovation and equity is a perennial challenge in economic development. Neil Lee’s newest book, Innovation for the Masses: How to Share the Benefits of the High-Tech Economy, tackles this issue head-on, arguing that innovation and equity are not mutually exclusive but can—and should—be pursued in tandem. For our readers, this may seem an obvious point, but innovation’s track record suggests otherwise. Lee’s thorough examination provides valuable insights into how to achieve this equilibrium.

Lee lays a strong foundation by dedicating the first third of the book to overviewing the current discourse on innovation. While this section might (for better or worse) give you flashbacks to past economics classes, it sets the stage for the case studies that follow. Lee emphasizes that innovation at its strongest is not just about the “lone genius” or radical breakthroughs but rather also demonstrations of collaborative and iterative processes. As he puts it, innovation “is about teams and building on each other’s work, often in incremental ways and at different scales. … [I]t is as often about incremental improvements in existing technology as it is about radical new technologies” (p. 24). 

With the foundation set, Lee presents four countries for our consideration—Austria, Sweden, Switzerland, and Taiwan—as examples of nations balancing innovation with equity. His high-level accounts show us the good and the bad, all while acknowledging the role of historical and regional circumstances in shaping policy. Throughout these case studies, Lee assesses equity using the Gini coefficient, measures of income distribution, employment patterns, and educational attainment rates. While these metrics offer a broad view of economic equity, Lee acknowledges they don’t capture every aspect of societal benefit or individual well-being.

Lee is upfront that his book does not offer a one-size-fits-all solution that we can implement to instantly improve our regions. Instead, he demonstrates how, over time, these countries have tailored their approach to innovation and equity based on their unique circumstances while still adhering to some common principles. This nuanced perspective allows readers to draw insights that can be adapted to their own contexts.

For instance, Lee draws attention to three types of institutions that contribute to the success of these countries’ practices: generative, diffusive, and redistributive. Generative institutions, such as leading research universities, help spark new ideas. Diffusive institutions, including vocational education programs, tech commercialization offices, and local business networks, spread innovation’s benefits by bridging gaps between different sectors of society and industry. Finally, redistributive institutions, such as labor market policies and strong public services, ensure that innovation’s gains reach the broader population. Although these exist in many countries, Lee argues it’s the quality, characteristics, and interactions of these institutions that set the four case studies apart. He describes how their alignment and effectiveness contribute to both successful innovation and more equitable outcomes. As he puts it, “These economies don’t succeed despite their social models, but because of them” (p. 168). 

Lee does not shy away from exposing the imperfections of his four models, but he also reminds us that their approaches to balancing innovation and equity have led to improved living standards and economic resiliency, at least for the time being. Warning against complacency, he stresses that even successful models risk backsliding. Yet, he also offers hope. With ongoing collaboration and commitment, it’s possible to create innovation ecosystems that drive progress while ensuring its benefits are shared more equitably. This pragmatic perspective reinforces his central message: equity must be intentionally embedded in intentionally embedded in innovation systems and actively maintained over time.

While Innovation for the Masses provides an insightful peek behind the curtain of what equitable innovation systems could look like, Lee’s data-driven analysis sometimes feels at odds with his message of prioritizing people’s lived experiences. The book lacks personal stories that could better illustrate the real-world impacts of innovation policies beyond wage growth and employment rates, though that could certainly be its own volume. Despite this, the book remains readable and accessible, offering timely inspiration and practical insights that can inform our approach to building more equitable innovation ecosystems. 

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.