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Mature Systems in Global Markets: The Need for an Institutional Division of Labour

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  • Federico Frattini

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Abstract

This paper approaches innovation as a need and not as a choice, particularly in the case of mature systems, defined as localized systems of production that are deeply specialised in mature industries. Their only strategy to achieve competitiveness is an innovation-driven shake-out combining new technological patterns with the existing resources and involving local institutions in production in order to avoid an unbearable shock. The Italian case is useful to introduce the idea of an institutional division of labour limited by the extent of the market and the institutional coherence of the system. According to this approach, the innovation policy has also a political dimension, which development and competition possibilities depend on.

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Bibliographic Info

Paper provided by University of Ferrara, Department of Economics in its series Working Papers with number 201109.

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Length: 20 pages
Date of creation: 07 Jul 2011
Date of revision:
Handle: RePEc:udf:wpaper:201109

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Keywords: Mature industry; Innovation; Institutions; Policy;

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  1. Kuhlmann, Stefan, 2001. "Future governance of innovation policy in Europe -- three scenarios," Research Policy, Elsevier, vol. 30(6), pages 953-976, June.
  2. G. Hodgson., 2007. "What Are Institutions?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
  3. Aditya Bhattacharjea, 2003. "Book Review: Kicking away the Ladder: Development Strategy in Historical Perspective," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 38(1), pages 126-129, January.
  4. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
  5. Andrew Mold, 2003. "Kicking away the ladder: development strategy in historical perspective by HA-JOON CHANG. (London: Anthem Press, 2002, pp. 187)," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(5), pages 668-670.
  6. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  7. Nelson, Richard R. & Sampat, Bhaven N., 2001. "Making sense of institutions as a factor shaping economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 44(1), pages 31-54, January.
  8. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June.
  9. Etzkowitz, Henry & Leydesdorff, Loet, 2000. "The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix of university-industry-government relations," Research Policy, Elsevier, vol. 29(2), pages 109-123, February.
  10. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
  11. Elvira Uyarra, 2010. "What is evolutionary about ‘regional systems of innovation’? Implications for regional policy," Journal of Evolutionary Economics, Springer, vol. 20(1), pages 115-137, January.
  12. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185.
  13. Bianchi Patrizio, 2004. "L'industria italiana," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 117-138.
  14. Smith, Adam, 2008. "An Inquiry into the Nature and Causes of the Wealth of Nations: A Selected Edition," OUP Catalogue, Oxford University Press, number 9780199535927 edited by Sutherland, Kathryn.
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