VARIETIES OF CAPITALISM IN THE ICT ERA: A COMPARATIVE ANALYSIS OF US AND GERMAN INNOVATION AFTER THE 2008 CRISIS

Abstract

This study addresses how advanced capitalist economies in the Information and Communication Technology (ICT) era have sustained their comparative advantages in high-tech sectors following the 2008 financial crisis. It focuses specifically on the United States and Germany, the classic examples of a Liberal Market Economy (LME) and Coordinated Market Economy (CME) within the Varieties of Capitalism (VoC) framework. The thesis argues that the crisis intensified existing institutional logics, accelerating the United States toward radical software platform development while directing Germany's digital investment deeper into its established industrial base. To test this, the study employs a dual-track comparative method combining a 22-year longitudinal analysis (1998–2019) of sectoral value-added shares and innovation density metrics with qualitative institutional case studies. The findings reveal a clear structural divergence between the two economies, with U.S. data showing a sustained preference for digital services over hardware. At the same time, German metrics demonstrate a resilient integration of software into its export-oriented economy. Ultimately, this research highlights the durability of national institutional frameworks under macroeconomic stress, providing insight for policymakers navigating digital transitions and the value of leveraging existing institutional strengths rather than importing foreign innovation models.