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Can High-technology Industries Prosper in Germany? Institutional Frameworks and the Evolution of the German Software and Biotechnology Industries

Author

Listed:
  • Steven Casper
  • Mark Lehrer
  • David Soskice

Abstract

The paper explores the influence of institutional frameworks on the evolution of the German software and biotechnology sectors. It links institutional constraints to poor performance of German firms in high volume market niches characterized by turbulent technological change and substantial financial risk. However, German firms are prospering in software services and “platform technologies” in biotechnology. The company organizational structures and investment strategies needed to excel in these market segments provide a close “fit” with incentives created within the German economy.

Suggested Citation

  • Steven Casper & Mark Lehrer & David Soskice, 1999. "Can High-technology Industries Prosper in Germany? Institutional Frameworks and the Evolution of the German Software and Biotechnology Industries," Industry and Innovation, Taylor & Francis Journals, vol. 6(1), pages 5-24.
  • Handle: RePEc:taf:indinn:v:6:y:1999:i:1:p:5-24
    DOI: 10.1080/13662719900000002
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    Citations

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    Cited by:

    1. Paul Teague, 2009. "Path Dependency and Comparative Industrial Relations: The Case of Conflict Resolution Systems in Ireland and Sweden," British Journal of Industrial Relations, London School of Economics, vol. 47(3), pages 499-520, September.
    2. Gittelman, Michelle, 2006. "National institutions, public-private knowledge flows, and innovation performance: A comparative study of the biotechnology industry in the US and France," Research Policy, Elsevier, vol. 35(7), pages 1052-1068, September.
    3. Liao, Tung-Shan & Rice, John, 2010. "Innovation investments, market engagement and financial performance: A study among Australian manufacturing SMEs," Research Policy, Elsevier, vol. 39(1), pages 117-125, February.
    4. Siebert, Horst & Stolpe, Michael, 2001. "Technology and economic performance in the German economy," Kiel Working Papers 1035, Kiel Institute for the World Economy (IfW).
    5. Simone Strambach, 2010. "Path Dependence and Path Plasticity: The Co-evolution of Institutions and Innovation – the German Customized Business Software Industry," Chapters,in: The Handbook of Evolutionary Economic Geography, chapter 19 Edward Elgar Publishing.
    6. Silvia Teuber & Uschi Backes-Gellner, 2012. "How do companies adjust their organization to national institutions: evidence from matched-pair engineering companies," Economics of Education Working Paper Series 0082, University of Zurich, Department of Business Administration (IBW), revised Apr 2013.
    7. Lehrer, Mark & Asakawa, Kazuhiro, 2004. "Rethinking the public sector: idiosyncrasies of biotechnology commercialization as motors of national R&D reform in Germany and Japan," Research Policy, Elsevier, vol. 33(6-7), pages 921-938, September.
    8. Lane, Christel & Lup, Daniela, 2015. "Cooking under fire: managing multilevel tensions between creativity and innovation in haute cuisine," LSE Research Online Documents on Economics 65799, London School of Economics and Political Science, LSE Library.
    9. Casper, Steven & Matraves, Catherine, 2003. "Institutional frameworks and innovation in the German and UK pharmaceutical industry," Research Policy, Elsevier, vol. 32(10), pages 1865-1879, December.
    10. Scarpetta, Stefano & Tressel, Thierry, 2004. "Boosting productivity via innovation and adoption of new technologies : any role for labor market institutions?," Policy Research Working Paper Series 3273, The World Bank.
    11. Meelen, Toon & Herrmann, Andrea M. & Faber, Jan, 2017. "Disentangling patterns of economic, technological and innovative specialization of Western economies: An assessment of the Varieties-of-Capitalism theory on comparative institutional advantages," Research Policy, Elsevier, vol. 46(3), pages 667-677.
    12. 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.
    13. Whitley, Richard, 2003. "Competition and pluralism in the public sciences: the impact of institutional frameworks on the organisation of academic science," Research Policy, Elsevier, vol. 32(6), pages 1015-1029, June.
    14. Lazonick, William, 2006. "Corporate Governance, Innovative Enterprise, and Economic Development," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    15. Philip Cooke, 2008. "Regional Innovation Systems, Clean Technology & Jacobian Cluster-Platform Policies," Regional Science Policy & Practice, Wiley Blackwell, vol. 1(1), pages 23-45, November.
    16. Steven Casper & Richard Whitley, 2002. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Working Papers wp230, Centre for Business Research, University of Cambridge.
    17. Lechevalier, Sébastien & Nishimura, Junichi & Storz, Cornelia, 2014. "Diversity in patterns of industry evolution: How an intrapreneurial regime contributed to the emergence of the service robot industry," Research Policy, Elsevier, vol. 43(10), pages 1716-1729.
    18. Christel Lane & Jocelyn Probert, 2003. "Globalisation and Its Impact on Competitiveness: the Case of the British and German Pharmaceutical Industry," Working Papers wp262, Centre for Business Research, University of Cambridge.
    19. Lehrer, Mark & Nell, Phillip & Gärber, Lisa, 2009. "A national systems view of university entrepreneurialism: Inferences from comparison of the German and US experience," Research Policy, Elsevier, vol. 38(2), pages 268-280, March.
    20. 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).
    21. Lehrer, Mark & Nell, Phillip & Gärber, Lisa, 2007. "A National Systems View of University Development: Towards a Broadened Perspective on the Entrepreneurial University Based on the German and US Experience," Kiel Working Papers 1370, Kiel Institute for the World Economy (IfW).
    22. Caroline Lanciano-Morandat & Eric Verdier, 2010. "Multi-level Perspectives: A Comparative Analysis of National R&D Policies," Chapters,in: The Capitalization of Knowledge, chapter 8 Edward Elgar Publishing.
    23. Kaiser, Robert & Prange, Heiko, 2004. "The reconfiguration of National Innovation Systems--the example of German biotechnology," Research Policy, Elsevier, vol. 33(3), pages 395-408, April.

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