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This paper reviews empirical and theoretical work concerning the relationship between innovative activities of firms and the dynamics of industries. Stylized facts on industry evolution and the analysis of industrial dynamics in general are a first building block. This discussion just reflects a fundamental controversy between neoclassical mainstream approaches and the conception of evolutionary economics. It is shown which thorough analytical problems any investigation of industry dynamics driven by innovative activities has to cope with. Based on that empirical work concerning the techno-economic evolution of industries is presented. Following this it is shown how a formal model can give an explanation for the characteristic development patterns observed. Some fundamental results are discussed.

Suggested Citation

  • Uwe Cantner & Horst Hanusch, 1998. "Industrie-Evolution," Discussion Paper Series 177, Universitaet Augsburg, Institute for Economics.
  • Handle: RePEc:aug:augsbe:0177

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    References listed on IDEAS

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    Cited by:

    1. Friedrich, B. Cornelia, 2004. "Competition and the Evolution of Market Structure in the E-conomy : A Simulation Analysis," Dresden Discussion Paper Series in Economics 02/04, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.

    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing


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