Shakeout in industrial dynamics: new developments, new puzzles
AbstractThe purpose of this paper is to stress these different visions of shakeout in industrial dynamics, to characterize the new developments that support these alternative visions, and to clarify the puzzles that these visions may present for industry life cycle analyses. The first section provides a synthesis of the basic framework on industry life cycle proposed by Gort and Klepper in the 1980s. The remainder of the paper investigates more recent developments on shakeout, which is considered a central question in the 1990s and 2000s. The second section focuses on a conception of shakeout which is closely linked to technological conditions. The obsolescence of an old technology and the dominance of a new one involves that a new industry replaces the old one. Firms in the old industry have to face a shakeout, and these firms are generally not the main actors of the new industry. The third section focuses on an alternative conception of shakeout which is closely connected to knowledge accumulation and diffusion. A new industry never starts from scratch, as industries generally arise through a transformation of existing industries. When a shakeout occurs, firms that organized the conditions of knowledge accumulation and diffusion may survive, and eventually become the leaders of the newly-born industry. The fourth section makes some concluding remarks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00211802.
Date of creation: 2004
Date of revision:
Publication status: Published, Applied Evolutionary Economics, Edward Elgar (Ed.), 2004, 181-196
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00211802/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Malerba, Franco & Orsenigo, Luigi, 1996. "The Dynamics and Evolution of Industries," Industrial and Corporate Change, Oxford University Press, vol. 5(1), pages 51-87.
- Mueller, Dennis C., 1997. "First-mover advantages and path dependence," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 827-850, October.
- Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
- Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-53, September.
- Utterback, James M. & Suarez, Fernando F., 1993. "Innovation, competition, and industry structure," Research Policy, Elsevier, vol. 22(1), pages 1-21, February.
- Agarwal, Rajshree, 1998. "Evolutionary trends of industry variables," International Journal of Industrial Organization, Elsevier, vol. 16(4), pages 511-525, July.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- Henderson, Rebecca., 1994.
"Of life cycles real and imaginary : the unexpectedly long old age of optical lithography,"
WP 3661-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Henderson, Rebecca, 1995. "Of life cycles real and imaginary: The unexpectedly long old age of optical lithography," Research Policy, Elsevier, vol. 24(4), pages 631-643, July.
- Klepper, Steven & Simons, Kenneth L., 2005. "Industry shakeouts and technological change," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 23-43, February.
- Saviotti, Pier Paolo, 1998. "On the dynamics of appropriability, of tacit and of codified knowledge," Research Policy, Elsevier, vol. 26(7-8), pages 843-856, April.
- repec:dgr:umamer:1998010 is not listed on IDEAS
- Bonaccorsi, Andrea & Giuri, Paola, 2001.
"The long-term evolution of vertically-related industries,"
International Journal of Industrial Organization,
Elsevier, vol. 19(7), pages 1053-1083, July.
- Andrea Bonaccorsi & Paola Giuri, 2000. "The long term evolution of vertically-related industries," LEM Papers Series 2000/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Jackie Krafft, 2002. "Industrial dynamics," Post-Print hal-00212272, HAL.
- Jovanovic, B. & MacDonald, G., 1993.
"The Life Cycle of a Competitive Industry,"
93-34, C.V. Starr Center for Applied Economics, New York University.
- Boyan Jovanovic & Glenn MacDonald, 1994. "The Life-Cycle of a Competitive Industry," NBER Working Papers 4441, National Bureau of Economic Research, Inc.
- Jovanovic, B. & MacDonald, G.M., 1992. "The Life-Cycle of Competitive Industry," Papers 92-09, Rochester, Business - Financial Research and Policy Studies.
- Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
- Gambardella, Alfonso & Torrisi, Salvatore, 1998. "Does technological convergence imply convergence in markets? Evidence from the electronics industry," Research Policy, Elsevier, vol. 27(5), pages 445-463, September.
- Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 379-460, March.
- Clark, Kim B., 1985. "The interaction of design hierarchies and market concepts in technological evolution," Research Policy, Elsevier, vol. 14(5), pages 235-251, October.
- Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-98, August.
- Klepper, Steven & Miller, John H., 1995. "Entry, exit, and shakeouts in the United States in new manufactured products," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 567-591, December.
- Martin Fransman & Jackie Krafft, 2002. "Telecommunications," Post-Print hal-00212269, HAL.
- Malerba, Franco, et al, 1999. "'History-Friendly' Models of Industry Evolution: The Computer Industry," Industrial and Corporate Change, Oxford University Press, vol. 8(1), pages 3-40, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.