Inventing Prosperity

Abstract

This book examines the transformation of America’s innovation ecosystem from the era of large, vertically integrated corporate laboratories to today’s fragmented, startup-driven system. We argue that while science remains as vital to technological progress as ever, the translational layer that once connected discovery to large-scale application has weakened. Using historical evidence and contemporary case studies—from antibiotics and semiconductors to mRNA vaccines and clean energy—we show how the “division of innovative labour” among universities, startups, and established firms produces uneven outcomes across sectors. Some, like biopharma and information technology, thrive in this decentralised system, while others, such as advanced materials and energy, face persistent translation gaps. We trace the institutional and economic forces behind corporate withdrawal from research, the rise of universities and startups as commercial actors, and the role of government procurement and policy in shaping innovation pathways. The book concludes by offering policy proposals to rebuild the translational infrastructure necessary for sustaining science-based prosperity.