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Abstract

The advanced economies are experiencing a set of shared challenges in the transition to a new "knowledge economy" characterized by rapid technological innovation and associated with a heightened premium on higher education. Yet individual countries are charting rather different courses as they navigate this transition. This article examines divergent trajectories of change in three coordinated market economies—Germany, Sweden, and the Netherlands. It argues that differences in the organization of business and labor, and in the institutions that structure their interactions with each other and with the state, have produced different coalitional alignments and led these countries onto divergent paths toward the knowledge economy today.