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Industrial structure, business demography and innovation


  • Svein Olav Nås

    (Norwegian Institute for Studies in Research and Education - Centre for Innovation Research)


The analysis addresses path dependency by studying development in industrial structure in Norway over time, and relates types of changes in firms to innovation activities in the firms as identified by the Norwegian innovation survey. A typology of changes is developed on the basis of matched employer-employee data allowing differentiating between events like entry and exit, take overs and spin-outs. Results show that despite a large degree of underlying turbulence the underlying industrial structure remains relatively stable over time - although with the well known reduction in primary industries and growth in service industries. Changes are more pronounced in terms of employment than in terms of value added which show a stable or increasing trend in virtually all industries. Combining with innovation data reveals that types of changes in firms vary with innovation modes. In particular, strategic innovators are found less frequently among unchanged organisations than is the case for other types of innovators. On the other hand a higher share of subsequent transformed establishments is found among strategic innovators.

Suggested Citation

  • Svein Olav Nås, 2007. "Industrial structure, business demography and innovation," Working Papers on Innovation Studies 20070611, Centre for Technology, Innovation and Culture, University of Oslo.
  • Handle: RePEc:tik:inowpp:20070611

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    References listed on IDEAS

    1. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
    2. Olav Wicken, 2007. "The Layers of National Innovation Systems: The Historical Evolution of a National Innovation System in Norway," Working Papers on Innovation Studies 20070601, Centre for Technology, Innovation and Culture, University of Oslo.
    3. Sidney Winter & Yuri Kaniovski & Giovanni Dosi, 2003. "A baseline model of industry evolution," Journal of Evolutionary Economics, Springer, vol. 13(4), pages 355-383, October.
    4. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    5. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
    6. Tommy Clausen & Svein Olav Nås & Bart Verspagen, 2007. "Norwegian Innovation and Industrial Structure: Insiders and Outsiders?," Working Papers on Innovation Studies 20070610, Centre for Technology, Innovation and Culture, University of Oslo.
    7. Catherine Armington & Zoltan Acs, 2004. "Job creation and persistence in services and manufacturing," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 309-325, July.
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