Industry Dynamics and Productivity Research
AbstractFirms experience birth (entry), growth and death (exit) as all living things do in any biological system. However, not all firms will show the same rate of growth and the same hazard rate of exit. Industry dynamics is a field of research that analyzes the dynamic patterns of entry, growth and exit of firms, and investigates the sources of those changes.On the other hand, productivity research has focused on the performance measurement of individual economic entities?such as firm, industry and country?and also on the examination of the sources. This paper reviews the past contribution of productivity research on industry dynamics and tries to specify the important future research areas that connect the two fields of research. For the past contribution, the paper emphasizes the following three issues: productivity as a measure of heterogeneity of firm population; productivity as an important source of the event in industry dynamics; source decomposition of industry-level productivity change. For the future work, the paper suggests the three areas of research: theoretical modeling that associates productivity with industry dynamics; accommodation of recent methodological developments of productivity analysis; rigorous study on the causal relationships among factors that affect the productivity change and industry dynamics. It is expected to better understand the logic behind pervasive yet complex behaviors of firms and industries, if the two research areas?productivity analysis and industry dynamics?interact more intensively
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 Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 200929.
Length: 19 pages
Date of creation: Nov 2009
Date of revision: Nov 2009
Industry Dynamics; Entry and Exit; Productivity; Survival Analysis; Firm Population;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-10 (All new papers)
- NEP-EFF-2010-01-10 (Efficiency & Productivity)
- NEP-ENT-2010-01-10 (Entrepreneurship)
- NEP-SBM-2010-01-10 (Small Business Management)
- NEP-TID-2010-01-10 (Technology & Industrial Dynamics)
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.:
- Bruno Crepon & Emmanuel Duguet & Jacques Mairessec, 1998.
"Research, Innovation And Productivi[Ty: An Econometric Analysis At The Firm Level,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 7(2), pages 115-158.
- Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc.
- Kyoji Fukao & Young Gak Kim & Hyeog Ug Kwon, 2006.
"Plant Turnover and TFP Dynamics in Japanese Manufacturing,"
Hi-Stat Discussion Paper Series
d06-180, Institute of Economic Research, Hitotsubashi University.
- Fukao, Kyoji & Kim, YoungGak & Kwon, Hyeog Ug, 2007. "Plant Turnover and TFP Dynamics in Japanese Manufacturing," CEI Working Paper Series 2006-17, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
- Pakes, A. & Ericson, R., 1990.
"Empirical Implications Of Alternative Models Of Firm Dynamics,"
594, Yale - Economic Growth Center.
- Pakes, Ariel & Ericson, Richard, 1998. "Empirical Implications of Alternative Models of Firm Dynamics," Journal of Economic Theory, Elsevier, vol. 79(1), pages 1-45, March.
- Ariel Pakes & Richard Ericson, 1989. "Empirical Implications of Alternative Models of Firm Dynamics," NBER Working Papers 2893, National Bureau of Economic Research, Inc.
- Richard Disney & Jonathan Haskel & Ylva Heden, 2003.
"Restructuring and productivity growth in uk manufacturing,"
Royal Economic Society, vol. 113(489), pages 666-694, 07.
- Disney, Richard F & Haskel, Jonathan & Heden, Ylva, 2000. "Restructuring And Productivity Growth In UK Manufacturing," CEPR Discussion Papers 2463, C.E.P.R. Discussion Papers.
- G. Bottazzi & E. Cefis & G. Dosi & A. Secchi, 2007. "Invariances and Diversities in the Patterns of Industrial Evolution: Some Evidence from Italian Manufacturing Industries," Small Business Economics, Springer, vol. 29(1), pages 137-159, June.
- Mark Doms & Eric J. Bartelsman, 2000.
"Understanding Productivity: Lessons from Longitudinal Microdata,"
Journal of Economic Literature,
American Economic Association, vol. 38(3), pages 569-594, September.
- Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series 2000-19, Board of Governors of the Federal Reserve System (U.S.).
- Richard Harris & Donald S. Siegel & Mike Wright, 2005.
"Assessing the Impact of Management Buyouts on Economic Efficiency: Plant-Level Evidence from the United Kingdom,"
The Review of Economics and Statistics,
MIT Press, vol. 87(1), pages 148-153, February.
- Richard Harris & Donald S. Siegel & Mike Wright, 2003. "Assessing the Impact of Management Buyouts on Economic Efficiency: Plant-Level Evidence from the United Kingdom," Rensselaer Working Papers in Economics 0304, Rensselaer Polytechnic Institute, Department of Economics.
- Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2003. "Comparative Analysis of Firm Demographics and Survival: Micro-Level Evidence for the OECD Countries," OECD Economics Department Working Papers 348, OECD Publishing.
- Dosi Giovanni, 2008.
"Statistical Regularities in the Evolution of Industries. A Guide through Some Evidence and Challenges for the Theory,"
Società editrice il Mulino, issue 2, pages 185-220.
- Giovanni Dosi, 2005. "Statistical Regularities in the Evolution of Industries. A Guide through some Evidence and Challenges for the Theory," LEM Papers Series 2005/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Elizabeth Webster & Hielke Buddelmeyer & Paul H. Jensen, 2007. "Innovation and Industrial Evolution," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 40(1), pages 82-89, 03.
- Franco Malerba, 2005.
"Innovation and the evolution of industries,"
KITeS Working Papers
172, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2005.
- John Haltiwanger & C J Krizan & Lucia Foster, 1998.
"Aggregate Productivity Growth: Lessons From Microeconomic Evidence,"
98-12, Center for Economic Studies, U.S. Census Bureau.
- Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth. Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc.
- Lucia Foster & John Haltiwanger & C.J. Krizan, 1998. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Working Papers 6803, National Bureau of Economic Research, Inc.
- Malerba, Franco, 2007. "Innovation and the dynamics and evolution of industries: Progress and challenges," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 675-699, August.
- Paloma López-García & Sergio Puente, 2006. "Business demography in Spain: determinants of firm survival," Banco de Espaï¿½a Working Papers 0608, Banco de Espa�a.
- Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
- Sanghoon Ahn, 2001. "Firm Dynamics and Productivity Growth: A Review of Micro Evidence from OECD Countries," OECD Economics Department Working Papers 297, OECD Publishing.
- Sanghoon Ahn & Kyoji Fukao & Hyeog Ug Kwon, 2005. "The Internationalization and Performance of Korean and Japanese Firms: An Empirical Analysis Based on Micro-data," Discussion papers 05008, Research Institute of Economy, Trade and Industry (RIETI).
- repec:fth:inseep:9833 is not listed on IDEAS
- Robert H Mcguckin & Bradford J Jensen, 1996.
"Firm Performance And Evolution Empirical Regularities In The U.S. Microdata,"
96-10, Center for Economic Studies, U.S. Census Bureau.
- Jensen, J Bradford & McGuckin, Robert H, 1997. "Firm Performance and Evolution: Empirical Regularities in the US Microdata," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 25-47.
- Hans Loof & Almas Heshmati, 2006.
"On the relationship between innovation and performance: A sensitivity analysis,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
- Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," Working Paper Series in Economics and Finance 0446, Stockholm School of Economics, revised 01 Oct 2001.
- Sengupta, Jati K., 1999. "A dynamic efficiency model using data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 62(3), pages 209-218, September.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jorn Altmann).
If references are entirely missing, you can add them using this form.