Competition, cooperation, and the neighboring farmer effect
Abstract
In this paper we propose a model that explains how cooperation can emerge spontaneously between firms in a highly competitive market environment. The basic idea is that the more competitive is the market, the less costly it is for firms to help each other like good neighbors. Cooperation takes the form of sharing technical know-how, which speeds up the adoption of new technologies (normally developed elsewhere) that spur industrial development. The model comports with the development history of Japan's first example of successful industrial development - its cotton spinning industry - whose conditions match those of firms in small open economies today.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 72 (2009)
Issue (Month): 1 (October)
Pages: 361-376
Contact details of provider:
Web page: http://www.elsevier.com/locate/jebo
Related research
Keywords: Competition Cooperation Collective invention Technology adoption Technical know-how Infant industry development Small open economies Less developed countries;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter B. Meyer, 2003. "Episodes of Collective Invention," Working Papers 368, U.S. Bureau of Labor Statistics.
- Dennis W. Carlton, 2004.
"Why Barriers to Entry Are Barriers to Understanding,"
American Economic Review,
American Economic Association, vol. 94(2), pages 466-470, May.
- Dennis W. Carlton, 2004. "Why Barriers to Entry are Barriers to Understanding," NBER Working Papers 10577, National Bureau of Economic Research, Inc.
- Rabellotti, Roberta, 1995. "Is there an "industrial district model"? Footwear districts in Italy and Mexico compared," World Development, Elsevier, vol. 23(1), pages 29-41, January.
- Alessandro Nuvolari, 2001.
"Collective Invention during the British Industrial Revolution The Case of the Cornish Pumping Engine,"
DRUID Working Papers
01-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Alessandro Nuvolari, 2004. "Collective invention during the British Industrial Revolution: the case of the Cornish pumping engine," Cambridge Journal of Economics, Oxford University Press, vol. 28(3), pages 347-363, May.
- Nuvolari, A., 2001. "Collective Invention during the British Industrial Revolution: The Case of the Cornish Pumping Engine," Eindhoven Center for Innovation Studies (ECIS) working paper series 01.04, Eindhoven Center for Innovation Studies (ECIS).
- Nuvolari, A., 2004. "Collective invention during the British Industrial Revolution: the case of the Cornish pumping engine," Eindhoven Center for Innovation Studies (ECIS) working paper series 04.02, Eindhoven Center for Innovation Studies (ECIS).
- Gene M. Grossman & Elhanan Helpman, 1993.
"Endogenous Innovation in the Theory of Growth,"
NBER Working Papers
4527, National Bureau of Economic Research, Inc.
- Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
- Grossman, G.M. & Helpman, E., 1993. "Endogenous, Innovation in the Theory of Growth," Papers 165, Princeton, Woodrow Wilson School - Public and International Affairs.
- Serguey Braguinsky & Salavat Gabdrakhmanov & Atsushi Ohyama, 2007. "A Theory of Competitive Industry Dynamics With Innovation and Imitation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(4), pages 729-760, October.
- Teece, David J., 1992. "Competition, cooperation, and innovation : Organizational arrangements for regimes of rapid technological progress," Journal of Economic Behavior & Organization, Elsevier, vol. 18(1), pages 1-25, June.
- Wolfgang Keller, 2000.
"Geographic Localization of International Technology Diffusion,"
NBER Working Papers
7509, National Bureau of Economic Research, Inc.
- Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
- Keller, Wolfgang, 2001. "Geographic Localization of International Technology Diffusion," CEPR Discussion Papers 2706, C.E.P.R. Discussion Papers.
- Loury, Glenn C, 1979.
"Market Structure and Innovation,"
The Quarterly Journal of Economics,
MIT Press, vol. 93(3), pages 395-410, August.
- Glenn C. Loury, 1976. "Market Structure and Innovation," Discussion Papers 256, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
- von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
- Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January.
- Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
- Allen, Robert C., 1983. "Collective invention," Journal of Economic Behavior & Organization, Elsevier, vol. 4(1), pages 1-24, March.
- Saxonhouse, Gary, 1974. "A Tale of Japanese Technological Diffusion in the Meiji Period," The Journal of Economic History, Cambridge University Press, vol. 34(01), pages 149-165, March.
- Cowan, R. & Jonard, N., 2003.
"The dynamics of collective invention,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 52(4), pages 513-532, December.
- Cowan,Robin & Jonard,Nicolas, 2000. "The Dynamics of Collective Invention," Research Memoranda 018, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Overman, Henry G. & Redding, Stephen J & Venables, Anthony J., 2001.
"The Economic Geography of Trade Production and Income: A Survey of Empirics,"
CEPR Discussion Papers
2978, C.E.P.R. Discussion Papers.
- Overman, Henry G. & Redding, Stephen & Venables, Anthony, 2003. "The economic geography of trade, production and income : a survey of empirics," Open Access publications from London School of Economics and Political Science http://eprints.lse.ac.uk/, London School of Economics and Political Science.
- Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
- Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
- Gary Bornstein, 2002. "Intergroup conflict: Individual, group and collective interests," Discussion Paper Series dp297, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- Stephen L. Parente, 2000. "Learning-by-Using and the Switch to Better Machines," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(4), pages 675-703, October.
- Atsushi Ohyama & Serguey Braguinsky & Kevin M. Murphy, 2004. "Entrepreneurial Ability and Market Selection in an Infant Industry: Evidence from the Japanese Cotton Spinning Industry," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(2), pages 354-381, April.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Angelo Antoci & Fabio Sabatini & Mauro Sodini, 2010.
"The Solaria Syndrome: Social Capital in a Growing Hyper-technological Economy,"
Working Papers
2010.100, Fondazione Eni Enrico Mattei.
- Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2012. "The Solaria syndrome: Social capital in a growing hyper-technological economy," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 802-814.
- Antoci Angelo & Sabatini Fabio & Sodini Mauro, 2010. "The Solaria Syndrome: Social capital in a growing hypertechnological economy," wp.comunite 0062, Department of Communication, University of Teramo.
- Angelo Antoci & Fabio Sabatini & Mauro Sodini, 2010. "The Solaria Syndrome: Social Capital in a Growing Hyper-technological Economy," Department of Economics University of Siena 585, Department of Economics, University of Siena.
- Sabatini, Fabio & Antoci, Angelo & Sodini, Mauro, 2010. "The Solaria Syndrome: Social Capital in a Growing Hyper-technological Economy," AICCON Working Papers 71-2010, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
- Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2010. "The Solaria Syndrome: Social Capital in a Growing Hyper-technological Economy," MPRA Paper 21023, University Library of Munich, Germany.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:72:y:2009:i:1:p:361-376For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

