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Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies upon the Size and Boundaries of Firms

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Author Info

  • Giovanni Dosi

    (LEM, Scuola Superiore Sant'Anna, Pisa, Italy)

  • Alfonso Gambardella

    (Bocconi University, Milano, Italy)

  • Marco Grazzi

    (LEM, Scuola Superiore Sant'Anna, Pisa, Italy)

  • Luigi Orsenigo

    (University of Brescia, Italy)

Abstract

In this work we discuss the impact of the new ICT techno-economic paradigm upon the vertical and horizontal boundaries of the firm and ask whether the change in the sources of competitive advantage has resulted in changes in the size of distribution of firms and also in the degree of concentration of industries. Drawing both on firm-level and national statistical data we assess the evolution of the overall balances between the activities which are integrated within organizations and those which occur through market interactions. While the new paradigm entails "revolutionary" changes in the domain of technology, the modification in industrial structures has been somewhat more incremental. Certainly, the vertical and horizontal boundaries of firms have changed and together one is observing a turnover in the club of biggest world firms, accounting also for a shift in the relative importance of industrial sectors. Nonetheless, we do not observe any abrupt fading away of the Chandlerian multidivisional corporation in favour of smaller less-integrated firms.

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Bibliographic Info

Article provided by De Gruyter in its journal Capitalism and Society.

Volume (Year): 3 (2008)
Issue (Month): 1 ()
Pages: 6

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Handle: RePEc:bpj:capsoc:v:3:y:2008:i:1:n:6

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Web page: http://www.degruyter.com

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Web: http://www.degruyter.com/view/j/cas

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Cited by:
  1. Marco Grazzi & Nadia Jacoby & Tania Treibich, 2013. "Dynamics of Investment and Firm Performance: Comparative Evidence from Manufacturing Industries," GREDEG Working Papers 2013-09, GREDEG CNRS, University of Nice-Sophia Antipolis.
  2. Giulio Bottazzi & Giovanni Dosi & Nadia Jacoby & Angelo Secchi & Federico Tamagni, 2010. "Corporate performances and market selection: some comparative evidence," Industrial and Corporate Change, Oxford University Press, vol. 19(6), pages 1953-1996, December.
  3. Bogliacino, Francesco & Pianta, Mario, 2011. "Engines of growth. Innovation and productivity in industry groups," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 41-53, February.

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