The combination of these strategies - the spatial fix and the technological/organizational fix - may be leading to the re-consolidation of a spatially bifurcated process. On the one hand, new innovations in organization and technology, to the extent they can be monopolized by the innovators, provide the basis for more consensual labor-capital-state social contracts, allowing legitimacy to be combined with profitability, albeit for a shrinking labor force. On the other hand, in poorer countries, where competitive advantage is based on a continuous drive to lower costs, profitability requirements lead to continuous crises of legitimacy. [...]