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Can High-technology Industries Prosper in Germany? Institutional Frameworks and the Evolution of the German Software and Biotechnology Industries

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  • Steven Casper
  • Mark Lehrer
  • David Soskice
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    Abstract

    The paper explores the influence of institutional frameworks on the evolution of the German software and biotechnology sectors. It links institutional constraints to poor performance of German firms in high volume market niches characterized by turbulent technological change and substantial financial risk. However, German firms are prospering in software services and “platform technologies” in biotechnology. The company organizational structures and investment strategies needed to excel in these market segments provide a close “fit” with incentives created within the German economy.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

    Volume (Year): 6 (1999)
    Issue (Month): 1 ()
    Pages: 5-24

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    Handle: RePEc:taf:indinn:v:6:y:1999:i:1:p:5-24

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    Cited by:
    1. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour market regulation, industrial relations and technological regimes: a tale of comparative advantage," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 391-426, June.
    2. Engelhardt, Lutz, 2005. "Geschäftsmodelle und nationale Institutionen: Ein Vergleich britischer und deutscher Neuemissionen aus der IT-Service- und Softwareindustrie 1996-2002," Discussion Papers, Research Unit: Institutions, States, Markets SP II 2005-01, Social Science Research Center Berlin (WZB).
    3. Silvia Teuber & Uschi Backes-Gellner, 2012. "How do companies adjust their organization to national institutions: evidence from matched-pair engineering companies," Economics of Education Working Paper Series 0082, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Apr 2013.
    4. Simone Strambach, 2008. "Path Dependency and Path Plasticity: the Co-evolution of Institutions and Innovation - the German Customized Business Software Industry," Working Papers on Innovation and Space 2008-02, Philipps University Marburg, Department of Geography.
    5. Casper, Steven & Whitley, Richard, 2004. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Research Policy, Elsevier, vol. 33(1), pages 89-106, January.
    6. Whitley, Richard, 2003. "Competition and pluralism in the public sciences: the impact of institutional frameworks on the organisation of academic science," Research Policy, Elsevier, vol. 32(6), pages 1015-1029, June.
    7. Casper, Steven & Matraves, Catherine, 2003. "Institutional frameworks and innovation in the German and UK pharmaceutical industry," Research Policy, Elsevier, vol. 32(10), pages 1865-1879, December.
    8. Steven Casper & Richard Whitley, 2002. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," ESRC Centre for Business Research - Working Papers wp230, ESRC Centre for Business Research.
    9. Gittelman, Michelle, 2006. "National institutions, public-private knowledge flows, and innovation performance: A comparative study of the biotechnology industry in the US and France," Research Policy, Elsevier, vol. 35(7), pages 1052-1068, September.
    10. Scarpetta, Stefano & Tressel, Thierry, 2004. "Boosting productivity via innovation and adoption of new technologies : any role for labor market institutions?," Policy Research Working Paper Series 3273, The World Bank.
    11. Lazonick, William, 2006. "Corporate Governance, Innovative Enterprise, and Economic Development," Working Paper Series RP2006/71, World Institute for Development Economic Research (UNU-WIDER).
    12. Lehrer, Mark & Nell, Phillip & Gärber, Lisa, 2009. "A national systems view of university entrepreneurialism: Inferences from comparison of the German and US experience," Research Policy, Elsevier, vol. 38(2), pages 268-280, March.
    13. Christel Lane & Jocelyn Probert, 2003. "Globalisation and Its Impact on Competitiveness: the Case of the British and German Pharmaceutical Industry," ESRC Centre for Business Research - Working Papers wp262, ESRC Centre for Business Research.
    14. Liao, Tung-Shan & Rice, John, 2010. "Innovation investments, market engagement and financial performance: A study among Australian manufacturing SMEs," Research Policy, Elsevier, vol. 39(1), pages 117-125, February.

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