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Industry Evolution in Varieties-of-Capitalism: a Survival Analysis on Wind Turbine Producers in Denmark and the USA

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  • Max-Peter Menzel
  • Johannes Kammer

Abstract

Klepper developed a theory that explains the evolution of industries purely by the inheritance of firm-specific factors. Institutional approaches argue that the evolution of industries differ according to their institutional environment. We prose an extension of the heritage theory to analyse institutionally induced differences in evolutionary patterns. In doing so, assumptions from the Varieties of Capitalism approach on firm performance in different institutional contexts are integrated into the heritage theory. Such a perspective would expect that institutional differences affect the connection of a new industry to established resources. We apply a survival analysis of wind turbine manufacturers in Denmark and the USA, which represent different types of capitalism. We find that the industries differ both in entry pattern and performance. Compared to the US, the Danish industry forms slower and firms benefit when they adhere to already established resources like diversifiers, while others like startups of spinoffs perform worse.

Suggested Citation

  • Max-Peter Menzel & Johannes Kammer, 2012. "Industry Evolution in Varieties-of-Capitalism: a Survival Analysis on Wind Turbine Producers in Denmark and the USA," Papers in Evolutionary Economic Geography (PEEG) 1220, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2012.
    • Handle: RePEc:egu:wpaper:1220
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    References listed on IDEAS

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    Cited by:

    1. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    2. Boschma, Ron & Capone, Gianluca, 2015. "Institutions and diversification: Related versus unrelated diversification in a varieties of capitalism framework," Research Policy, Elsevier, vol. 44(10), pages 1902-1914.
    3. Gong, Huiwen & Hassink, Robert, 2016. "What drives the geographies of creative industries? From literature review to research agenda," Papers in Innovation Studies 2016/9, Lund University, CIRCLE - Centre for Innovation Research.
    4. Malhotra, Abhishek & Schmidt, Tobias S. & Huenteler, Joern, 2019. "The role of inter-sectoral learning in knowledge development and diffusion: Case studies on three clean energy technologies," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 464-487.
    5. Andrea Morrison & Ron Boschma, 2019. "The spatial evolution of the Italian motorcycle industry (1893–1993): Klepper’s heritage theory revisited," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 613-634.
    6. Ron Boschma & Gianluca Capone, 2014. "Relatedness and Diversification in the EU-27 and ENP countries," Papers in Evolutionary Economic Geography (PEEG) 1407, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2014.
    7. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 859-873.
    8. Max-Peter Menzel & Maryann P. Feldman & Tom Broekel, 2017. "Institutional change and network evolution: explorative and exploitative tie formations of co-inventors during the dot-com bubble in the Research Triangle region," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1179-1191, August.

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