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Competition and Co-operation in the Small Firm Sector

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  • Christine Oughton
  • Geoff Whittam.

Abstract

This paper examines the nature of economies of scale in the small-firm sector and aims to provide new insight into the economic efficiency of small-firm industrial districts. The theoretical analysis identifies the role played by collective external economies of scale that are realized through cooperation over input activities. Using game theory, it is shown that cooperation can emerge both as a result of rational profit maximizing behavior and as a result of institutional and cultural environments that encourage cooperation and trust. The implications for industrial policy are discussed in the concluding section. Copyright 1997 by Scottish Economic Society.

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Bibliographic Info

Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 9602.

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Handle: RePEc:gla:glaewp:9602

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Cited by:
  1. D.B. Audretsch & M.A. Carree & A.J. van Stel & A.R. Thurik, 2000. "Impeded Industrial Restructuring: The Growth Penalty," Tinbergen Institute Discussion Papers 00-095/3, Tinbergen Institute.
  2. Mark Freel & Richard Harrison, 2006. "Innovation and cooperation in the small firm sector: Evidence from 'Northern Britain'," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 289-305.
  3. D.B. Audretsch & M.A. Carree & A.J. van Stel & A.R. Thurik, 2000. "Impeded Industrial Restructuring: The Growth Penalty," Tinbergen Institute Discussion Papers 00-095/3, Tinbergen Institute.
  4. Viladecans-Marsal, Elisabet, 2000. "External Economies And Location Of Industrial Activities. An Analysis Of The Spanish Case," ERSA conference papers ersa00p95, European Regional Science Association.
  5. Iwona Borowik, 2014. "Knowledge Exchange Mechanisms and Innovation Policy in Post-Industrial Regions: Approaches of the Basque Country and the West Midlands," Journal of the Knowledge Economy, Springer, vol. 5(1), pages 37-69, March.
  6. Karl Aiginger & Susanne Bärenthaler-Sieber & Johanna Vogel, 2013. "Competitiveness under New Perspectives," WWWforEurope Working Papers series 44, WWWforEurope.
  7. Karl Aiginger, 2006. "Competitiveness: From a Dangerous Obsession to a Welfare Creating Ability with Positive Externalities," Journal of Industry, Competition and Trade, Springer, vol. 6(2), pages 161-177, June.
  8. Edward Feser, 2004. "Agglomeration, Enterprise Size, and Productivity," Working Papers 04-15, Center for Economic Studies, U.S. Census Bureau.
  9. Massimiliano Mazzanti & Giulio Cainelli & Susanna Mancinelli, 2005. "Social Capital, R&D and Industrial Districts," Working Papers 2005.84, Fondazione Eni Enrico Mattei.
  10. Paul Bishop, 2003. "Collaboration and firm size: some evidence from the UK defence industry," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1965-1969.
  11. Cainelli, Giulio & Mancinelli, Susanna & Mazzanti, Massimiliano, 2007. "Social capital and innovation dynamics in district-based local systems," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 932-948, December.
  12. Mike Danson & Geoff Whittam, 1998. "Clustering, innovations and trust: the essentials of a clusters strategy for Scotland," ERSA conference papers ersa98p387, European Regional Science Association.
  13. Bellandi, Marco, 2000. "Local Development, Big Firms And Social Capital," ERSA conference papers ersa00p380, European Regional Science Association.

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