The paper presents and formalises an approach to the evolution of the organisation of industry which starts from multi-activity firms, and which relates to economists like Young, Stigler, and Richardson. To capture the open-ended process of disintegration of industry, the paper operates with decomposable tasks and gives an account of the vertical and horizontal structure of production by means of weighted trees - in the graph-theoretical sense. Based on this addition to the analytical toolbox, the paper gives an account of the decomposition of industry as driven by the structural innovations and process innovations of firms that specialise and exchange in an open-ended evolutionary process.
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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number
98-13.
Find related papers by JEL classification: L00 - Industrial Organization - - General - - - General L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
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