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Mature Systems in Global Markets: The Need for an Institutional Division of Labour

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  • Federico Frattini

Abstract

This paper approaches innovation as a need and not as a choice, particularly in the case of mature systems, defined as localized systems of production that are deeply specialised in mature industries. Their only strategy to achieve competitiveness is an innovation-driven shake-out combining new technological patterns with the existing resources and involving local institutions in production in order to avoid an unbearable shock. The Italian case is useful to introduce the idea of an institutional division of labour limited by the extent of the market and the institutional coherence of the system. According to this approach, the innovation policy has also a political dimension, which development and competition possibilities depend on.

Suggested Citation

  • Federico Frattini, 2011. "Mature Systems in Global Markets: The Need for an Institutional Division of Labour," Working Papers 201109, University of Ferrara, Department of Economics.
  • Handle: RePEc:udf:wpaper:201109
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    More about this item

    Keywords

    Mature industry; Innovation; Institutions; Policy;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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