ABSTRACT
Chapter 3 analyses the economic mechanisms by way of which the level of education and science is translated into state power. Using writings in economics and economic policies that address the questions of human capital, growth theory, competitive advantages, and national systems of innovation, it shows how skills have contributed to wealth and prosperity since the Second Industrial Revolution. These considerations include observations on the institutional backdrop which different models of capitalism provide for the purpose of disseminating skills and science, which lead to differences in how they operate. The chapter contains analyses of two coordinated market economies: Germany and Japan.
