The number of producers in the U.S. tire industry grew for 25 years and then declined sharply, and the industry evolved to be an oligopoly. The role of technological change in shaping the industry's market structure is explored. A model of industry evolution featuring technological change is used to derive predictions that are tested using a novel data set on firm entry, exit, size, location, distribution networks, and technological choices prior to the shakeout of producers. Consistent with the model, earlier-entering and larger firms survived longer, principally because of the influence of age and size on technological change.
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Volume (Year): 108 (2000) Issue (Month): 4 (August) Pages: 728-760 Download reference. The following formats are available: HTML
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Erik Brouwer & Tom Poot & Kees Montfort, 2008.
"The Innovation Threshold,"
De Economist,
Springer, vol. 156(1), pages 45-71, March.
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Other versions:
Brouwer, E. & Poot, T. & Montfort, K. van, 2007.
"The Innovation Threshold,"
Discussion Paper
2007-008, Tilburg University, Tilburg Law and Economic Center.
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Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003.
"Entry by Spinoff in a High-tech Cluster,"
DRUID Working Papers
03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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