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Structural change and industrial classification

  • Hicks, Diana
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    Understanding of structural change is compromised because scholars do not clearly articulate the limits of the classification infrastructure (NAICS or GICS) that shapes empirical analysis. These limits are particularly salient in the study of innovation, an activity that by its nature challenges existing categories. Because innovative industries are often not part of the classification infrastructure, they are invisible in empirical analyses and in government statistics. This paper examines the classification of a population of highly innovative, often small, firms working in gaming devices, packaging, filtration, photonics, imaging, biomedical research and fabless semiconductor design. I find examples of knowledge integration, vertical disintegration and emerging industries that challenge both NAICS and GICS exposing their strengths and weaknesses.

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    File URL: http://www.sciencedirect.com/science/article/B6VFN-52C8FT3-1/2/68c0f05ab0e23f7039256bcc1e031ffe
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    Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

    Volume (Year): 22 (2011)
    Issue (Month): 2 (June)
    Pages: 93-105

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    Handle: RePEc:eee:streco:v:22:y:2011:i:2:p:93-105
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/525148

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    1. Dalziel, Margaret, 2007. "A systems-based approach to industry classification," Research Policy, Elsevier, vol. 36(10), pages 1559-1574, December.
    2. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "Trading Tasks: A Simple Theory of Offshoring," NBER Working Papers 12721, National Bureau of Economic Research, Inc.
    3. Jan Fagerberg & Bart Verspagen, 2009. "Innovation Studies – the emerging structure of a new scientific field," Working Papers on Innovation Studies 20090104, Centre for Technology, Innovation and Culture, University of Oslo.
    4. Sanjeev Bhojraj & Charles M. C. Lee & Derek K. Oler, 2003. "What's My Line? A Comparison of Industry Classification Schemes for Capital Market Research," Journal of Accounting Research, Wiley Blackwell, vol. 41(5), pages 745-774, December.
    5. Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
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