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Network Structure and Industrial Dynamics. The long-term evolution of the aircraft-engine industry

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  • Andrea Bonaccorsi
  • Paola Giuri

Abstract

This paper proposes a new approach to explain the long-term evolution of a supplier industry. The network of vertical relations between suppliers and buyers is identified as a determinant of the concentration of the supplier industry and of the dynamics of market shares. The vertical structure of the industry is captured by collecting information on all vertical relations between dyads of firms and by building matrices of interaction for the aircraft-engine industry from 1953 to 1997. An econometric exercise is used to test some hypotheses about the relation between selected network measures and industrial dynamics.

Suggested Citation

  • Andrea Bonaccorsi & Paola Giuri, 1999. "Network Structure and Industrial Dynamics. The long-term evolution of the aircraft-engine industry," LEM Papers Series 1999/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  • Handle: RePEc:ssa:lemwps:1999/06
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    References listed on IDEAS

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    1. Andrea Bonaccorsi & Paola Giuri, 1999. "Non shakeout patterns of industry evolution. The case of turboprop engine industry," LEM Papers Series 1999/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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    Cited by:

    1. Andrea Bonaccorsi & Paola Giuri & Francesca Pierotti, 2001. "Discontinuities, convergence and survival of inefficient trajectories in technical progress," LEM Papers Series 2001/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Mamata Parhi, 2008. "Impact of Changing Facets of Inter-firm Interactions on Manufacturing Excellence: A Social Network Perspective of Indian Automotive Industry," Working Papers of BETA 2008-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Andrea Bonaccorsi & Paola Giuri, 2000. "Industry Life Cycle and the Evolution of an Industry Network," LEM Papers Series 2000/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Wegberg Marc van, 2003. "A note on network structure: functional relationships between network indicators," Research Memorandum 049, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    5. Andrea Bonaccorsi & Paola Giuri, 2001. "Learning, technological competition and network structure in the aero-engine industry," LEM Papers Series 2001/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Otello Ardovino & Luca Pennacchio, 2014. "Inter-firm R&D cooperation in local innovation networks: The case of Italian technological districts," EERI Research Paper Series EERI RP 2014/09, Economics and Econometrics Research Institute (EERI), Brussels.
    7. Kreutter, Peter & Stadtmann, Georg, 2009. "The Captives' End: Lebenszyklusmuster in der Entwicklung der deutschen IT-Outsourcing-Industrie," Research Notes 30, Deutsche Bank Research.
    8. Franco Malerba, 2006. "Innovation, Industrial Dynamics and Industry Evolution: Progress and the Research Agendas," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 21-46.
    9. Czibik, Ágnes & Makó, Ágnes, 2009. "Kiszolgáltatottság és ösztönző erő a kiskereskedelmi láncok és beszállítóik kapcsolatában. Oksági elemzés beszállítói szemszögből
      [Defencelessness and incentive in the relation between retail chain
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 359-378.
    10. M'Chirgui, Zouhaïer, 2009. "Dynamics of R&D networked relationships and mergers and acquisitions in the smart card field," Research Policy, Elsevier, vol. 38(9), pages 1453-1467, November.
    11. Otello Ardovino & Maria Rosaria Carillo & Luca Pennacchio, 2016. "R&D cooperation within Italian technological districts: A microeconometric analysis," Discussion Papers 2_2016, CRISEI, University of Naples "Parthenope", Italy.
    12. Pierre-Alexandre Balland & Mathijs De Vaan & Ron Boschma, 2013. "The dynamics of interfirm networks along the industry life cycle: The case of the global video game industry, 1987--2007," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 741-765, September.
    13. Ron Boschma & Pierre-Alexandre Balland & Mathijs de Vaan, 2014. "The formation of economic networks: a proximity approach," Chapters,in: Regional Development and Proximity Relations, chapter 7, pages 243-266 Edward Elgar Publishing.
    14. Otello Ardovino & Luca Pennacchio, 2012. "Le determinanti della cooperazione nei distretti tecnologici italiani finanziati dal governo," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2012(108), pages 121-149.
    15. Andrea Bonaccorsi & Paola Giuri & Francesca Pierotti, 2005. "Technological frontiers and competition in multi-technology sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 23-42.

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    Keywords

    industrial dynamics; vertically-related industries; network; industrial concentration; market shares.;

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