Review Essay of “Sustainable Prosperity in the New Economy? Business Organization and High-Tech Employment in the United States”

The review of theAIRnet President William Lazonick’s latest book “Sustainable Prosperity in the New Economy? Business Organization and High-Tech Employment in the United States” by Michael A. Bernstein has been published in the Spring 2011 issue of Business History Review, a publication of Harvard Business…

The Rise and Demise of Lucent Technologies

By William Lazonick and Edward March ♦ In 1999, as the Internet boom was approaching its apex, Lucent Technologies was the world’s largest telecommunications equipment company. With revenues of $38.3 billion, net income of $4.8 billion, and 153,000 employees for the fiscal year ending September 30, 1999, Lucent was larger and more profitable than Nortel, Alcatel, and Ericsson, its three major global competitors. In fiscal 2006, however, Lucent’s revenues were only $8.8 billion and its employment level stood at 29,800. Both figures were lower than those of its three major rivals. On December 1, 2006, the merger that created Alcatel-Lucent took place, making Lucent a wholly owned subsidiary of Alcatel. In this paper, we analyze the rise and demise of Lucent Technologies from the time that it was spun off from AT&T in April 1996 to its 2006 merger with Alcatel.

The International Schumpeter Society awarded the 2010 Schumpeter Prize to William Lazonick

The International Schumpeter Society awarded the 2010 Schumpeter Prize to William Lazonick for his book, Sustainable Prosperity in the New Economy? Business Organization and High-Tech Employment in the United States (Upjohn Institute, 2009). Over the past three decades, the information and communication…