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Economic Organization, Innovation Systems, and the Internet

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  • Steven Casper
  • Henrik Glimstedt

Abstract

How can public policy best promote successful innovation in the Internet sector? This paper creates a typology of different types of Internet software firms. Institutions associated with the 'Silicon Valley Model' are a strong driver of success for some key Internet technologies. However, patterns of human-resource development and knowledge management vary widely across Internet technologies, necessitating the development of very different commitments between managers and employees. Institutional frameworks associated with 'organized' economies, such as Germany or Japan, might provide superior tool-kits to help some types of Internet firms to innovate. Furthermore, our analysis suggests that the creation of institutional incentives is not the only way to promote patterns of technologically intense innovation associated with Silicon Valley. Technological strategies of dominant firms are often equally important. Regardless of institutional environment, the development of entrepreneurial software firms can be strongly influenced by the activities of large firms working within core network telecommunication technologies. Copyright 2001, Oxford University Press.

Suggested Citation

  • Steven Casper & Henrik Glimstedt, 2001. "Economic Organization, Innovation Systems, and the Internet," Oxford Review of Economic Policy, Oxford University Press, vol. 17(2), pages 265-281, Summer.
  • Handle: RePEc:oup:oxford:v:17:y:2001:i:2:p:265-281
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    Cited by:

    1. Werle, Raymund, 2011. "Institutional analysis of technical innovation: A review," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2011-04, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    2. Casper, Steven & Whitley, Richard, 2004. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Research Policy, Elsevier, vol. 33(1), pages 89-106, January.
    3. Koeniger, Winfried, 2003. "Collective Dismissal Cost, Product Market Competition and Innovation," IZA Discussion Papers 888, Institute for the Study of Labor (IZA).
    4. Engelhardt, Lutz, 2005. "Geschäftsmodelle und nationale Institutionen: Ein Vergleich britischer und deutscher Neuemissionen aus der IT-Service- und Softwareindustrie 1996-2002," Discussion Papers, Research Unit: Institutions, States, Markets SP II 2005-01, Social Science Research Center Berlin (WZB).

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