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How do firms compete? How do firms earn above normal returns? What's needed to sustain superior performance long term? An increasingly powerful answer to these fundamental questions of business strategy lies in the concept of dynamic capabilities. These are the skills, processes, routines, organizational structures, and disciplines that enable firms to build, employ, and orchestrate intangible assets relevant to satisfying customer needs, and which cannot be readily replicated by competitors. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems; they also shape them through innovation, collaboration, learning, and involvement. David Teece was the pioneer of the dynamic capabilities perspective. It is grounded in 25 years of his research, teaching, and consultancy. His ideas have been influential in business strategy, management, and economics, and are relevant to innovation, technology management, and competition policy. Through his consultancy and advisory work he has also brought these ideas to bear in business and policy making around the world. This book is the clearest and most succinct statement of the core ideas of dynamic capabilities. Teece explains their genesis, application, and how they offer an alternative approach to much conventional strategic thinking grounded in simplistic and outdated understandings of industrial organizations and the foundations of competitive advantage. Accessibly written and presented, it will be an invaluable and stimulating tool for all those who want to understand this important contribution to strategic thinking, be they MBA students, academics, managers, or consultants.

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All governments strive to develop and implement policies that contribute to innovation. Both in academic research and policy circles, the concept of National Innovation Systems has represented a significant approach to industrial policy, research and development, and innovation. This book will review the development and implementation of this approach, and its strengths and weakness by considering the experience of Finland, widely regarded as a model of the information society, high-quality equal education, and systemic innovation policy amongst the Nordic welfare states, which themselves have increasingly topped the lists in national competitiveness. The first part of the book analyzes the foundations, emergence, and development of the National Innovation System approach and its adoption in Finnish science and technology policy throughout the 1990s and 2000s. In the second part of the book an alternative viewpoint to innovation and welfare policy is outlined, based on the idea of capability cultivating institutions as a key foundation, both for national welfare and competitiveness. The development of the Finnish comprehensive school and its special education system is studied in order to clarify the nature of institutional change and learning, and the conditions of governing and developing the enabling services. The concept of an enabling welfare state is developed to answer the challenges of the Nordic model of welfare in a globalizing knowledge-driven economy.

All governments strive to develop and implement policies that contribute to innovation. Both in academic research and policy circles, the concept of National Innovation Systems has represented a significant approach to industrial policy, research and development, and innovation. This book will review the development and implementation of this approach, and its strengths and weakness by considering the experience of Finland, widely regarded as a model of the information society, high-quality equal education, and systemic innovation policy amongst the Nordic welfare states, which themselves have increasingly topped the lists in national competitiveness. The first part of the book analyzes the foundations, emergence, and development of the National Innovation System approach and its adoption in Finnish science and technology policy throughout the 1990s and 2000s. In the second part of the book an alternative viewpoint to innovation and welfare policy is outlined, based on the idea of capability cultivating institutions as a key foundation, both for national welfare and competitiveness. The development of the Finnish comprehensive school and its special education system is studied in order to clarify the nature of institutional change and learning, and the conditions of governing and developing the enabling services. The concept of an enabling welfare state is developed to answer the challenges of the Nordic model of welfare in a globalizing knowledge-driven economy.

Since Schumpeter, economists have argued that vast productivity gains can be achieved by investing in innovation and technological catch-up. Yet, as this volume documents, developing country firms and governments invest little to realize this potential, which dwarfs international aid flows.Using new data and original analytics, the authors uncover the key to this innovation paradox in the lack of complementary physical and human capital factors, particularly firm managerial capabilities, that are needed to reap the returns to innovation investments. Hence, countries need to rebalance policy away from R and D-centered initiatives – which are likely to fail in the absence of sophisticated private sector partners – toward building firm capabilities, and embrace an expanded concept of the National Innovation System that incorporates a broader range of market and systemic failures. The authors offer guidance on how to navigate the resulting innovation policy dilemma: as the need to redress these additional failures increases with distance from the frontier, government capabilities to formulate and implement the policy mix become weaker. This book is the first volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers.

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How do firms compete? How do firms earn above normal returns? What's needed to sustain superior performance long term? An increasingly powerful answer to these fundamental questions of business strategy lies in the concept of dynamic capabilities. These are the skills, processes, routines, organizational structures, and disciplines that enable firms to build, employ, and orchestrate intangible assets relevant to satisfying customer needs, and which cannot be readily replicated by competitors. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems; they also shape them through innovation, collaboration, learning, and involvement. David Teece was the pioneer of the dynamic capabilities perspective. It is grounded in 25 years of his research, teaching, and consultancy. His ideas have been influential in business strategy, management, and economics, and are relevant to innovation, technology management, and competition policy. Through his consultancy and advisory work he has also brought these ideas to bear in business and policy making around the world. This book is the clearest and most succinct statement of the core ideas of dynamic capabilities. Teece explains their genesis, application, and how they offer an alternative approach to much conventional strategic thinking grounded in simplistic and outdated understandings of industrial organizations and the foundations of competitive advantage. Accessibly written and presented, it will be an invaluable and stimulating tool for all those who want to understand this important contribution to strategic thinking, be they Mba students, academics, managers, or consultants.

Governments play a major role in the development process, and constantly introduce reforms and policies to achieve developmental objectives. Many of these interventions have limited impact, however; schools get built but children don't learn, IT systems are introduced but not used, plans are written but not implemented. These achievement deficiencies reveal gaps in capabilities, and weaknesses in the process of building state capability. This book addresses these weaknesses and gaps. It starts by providing evidence of the capability shortfalls that currently exist in many countries, showing that many governments lack basic capacities even after decades of reforms and capacity building efforts. The book then analyses this evidence, identifying capability traps that hold many governments back - particularly related to isomorphic mimicry (where governments copy best practice solutions from other countries that make them look more capable even if they are not more capable) and premature load bearing (where governments adopt new mechanisms that they cannot actually make work, given weak extant capacities). The book then describes a process that governments can use to escape these capability traps. Called PDIA (problem driven iterative adaptation), this process empowers people working in governments to find and fit solutions to the problems they face. The discussion about this process is structured in a practical manner so that readers can actually apply tools and ideas to the capability challenges they face in their own contexts. These applications will help readers devise policies and reforms that have more impact than those of the past.

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Take advantage of your organization’s brainpower with Kata-driven continuous improvement“This is the first book I have read that provides a clear picture of what it takes to develop and mobilize creative capability across an organization, to achieve challenging goals.” Jeffrey K. Liker, author of The Toyota Way (from the Foreword)Nobody drives continuous improvement in real, tangible ways like Toyota, where everyone at every level works toward common, customer-related goals. At Toyota, continuous improvement is habitual. In his groundbreaking book Toyota Kata, Mike Rother revealed management practices that drive Toyota’s success in providing value to their customers. Now, Rother and coauthor Gerd Aulinger provide the routines and know-how for scaling these practices across your entire organization. It all builds on five simple foundational questions at every level:What is the target condition?What is the actual condition?What obstacles stand in the way of the target condition?What is the next step? What have you learned from taking that step?Illustrated cover to cover, Toyota Kata Culture helps you visualize exactly how these methods work―so you can start putting them into action right away. You’ll learn how to develop your own iterative process of trial and adjustment, build a deliberate, scientific-thinking culture that grows capability, and make aligned strategic continuous improvement part of everyday work. Achieve your goals and differentiate your organization by following the proven formula laid out in Toyota Kata Culture.

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Governments play a major role in the development process, and constantly introduce reforms and policies to achieve developmental objectives. Many of these interventions have limited impact, however; schools get built but children don't learn, IT systems are introduced but not used, plans are written but not implemented. These achievement deficiencies reveal gaps in capabilities, and weaknesses in the process of building state capability. This book addresses these weaknesses and gaps. It starts by providing evidence of the capability shortfalls that currently exist in many countries, showing that many governments lack basic capacities even after decades of reforms and capacity building efforts. The book then analyses this evidence, identifying capability traps that hold many governments back - particularly related to isomorphic mimicry (where governments copy best practice solutions from other countries that make them look more capable even if they are not more capable) and premature load bearing (where governments adopt new mechanisms that they cannot actually make work, given weak extant capacities). The book then describes a process that governments can use to escape these capability traps. Called PDIA (problem driven iterative adaptation), this process empowers people working in governments to find and fit solutions to the problems they face. The discussion about this process is structured in a practical manner so that readers can actually apply tools and ideas to the capability challenges they face in their own contexts. These applications will help readers devise policies and reforms that have more impact than those of the past.

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Financial struggles of American families are headline news. In communities across the nation, families feel the pinch of stagnant and sometimes declining incomes. Many have not recovered from the Great Recession, when millions lost their homes and retirement savings. They are bombarded daily with vexing financial decisions: Which bills to pay? Where to cash checks? How to cover an emergency? How to improve a credit report? How to bank online? How to save for the future? Low- and moderate-income families have few places to turn for guidance on financial matters. Not many can afford to pay a financial advisor to help navigate an increasingly complex financial world. They do their best with advice from family and trusted individuals. Social workers, financial counselors, and human services professionals can help. As "first responders," they assist families and help in finding financial support from public and private sources. But these professionals are too often unprepared to address the full range of financial troubles of ordinary working families. Financial Capability and Asset Building in Vulnerable Households prepares social workers, financial counselors, and other human service professionals for financial practice with vulnerable families. Building on more than 20 years of research, the book sets the stage with key concepts, historical antecedents, and current financial challenges of families in America. It provides knowledge and tools to assist families in pressing financial circumstances, and offers a lifespan perspective of financial capability and environmental influences on financial behaviors and actions. Furthermore, the text details practice principles and skills for direct interventions, as well as for designing financial services and policy innovations. It is an essential resource for preparing the next generation of practitioners who can enable families to achieve economic security and development.