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Schumpeterian incumbents and industry evolution

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  • Guido Buenstorf

    (University of Kassel
    Leibniz Institute of Economic Research (IWH))

Abstract

This essay explores the role of established firms in the evolution of innovative industries. Both direct and indirect contributions are discussed. Besides innovation in their own industries, established firms are often among the pioneering entrants into related markets. They enable spin-off entrepreneurship and provide exit options for startups through acquisition. Furthermore, established firms help shape and directly support public research activities. The multiple roles of established firms, their interaction with new entrants in the innovation process, and the dynamics on industry evolution in an increasingly globalized world are not sufficiently well understood.

Suggested Citation

  • Guido Buenstorf, 2016. "Schumpeterian incumbents and industry evolution," Journal of Evolutionary Economics, Springer, vol. 26(4), pages 823-836, October.
    • Handle: RePEc:spr:joevec:v:26:y:2016:i:4:d:10.1007_s00191-015-0423-7
    DOI: 10.1007/s00191-015-0423-7
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    2. Alessandra Colombelli & Jackie Krafft & Marco Vivarelli, 2016. "Entrepreneurship and Innovation: New Entries, Survival, Growth," GREDEG Working Papers 2016-04, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    3. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
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    More about this item

    Keywords

    Incumbents; Innovation; Diversification; Spin-offs; Acquisitions; Basic research;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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