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Innovation, Industrial Dynamics and Structural Transformation

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The general theme of the 10th International Joseph A. Schumpeter Society Conf- ence, held during June 9th–12th, 2004 at Universita` Luigi Bocconi, Milan, was the exploration of the dynamics of industries driven by the highly interrelated processes of innovation and of structural transformation. The phenomena addressed are at the core of Schumpeter’s work and the discussion of these endogenously created modes of change constitutes one of the major Schumpeterian legacies of today. Indeed, the in?uence of the Schumpeterian approach to economic dynamics is far reaching and covers evolutionary as well as neoclassical theories. This book provides an account of work in the Schumpeterian and evolutionary tradition of industrial dynamics and the evolution of industries. Here, the main analytical concern is that, over time, industries evolve and change their structure, and that, in this dynamic process, knowledge and technologies, the capabilities and incentives of actors, new products and processes (as well as variants of existing ones), and institutions affect and constrain change, sometimes smoothly and so- times in a radical way. Thus, what is meant here by the term structure and structural change is not the traditional market structure view (as re?ected, for example, in the classical discussion of the Schumpeterian Hypotheses), but all those elements and relations between actors, knowledge and technologies which drive innovative activities and greatly affect economic performance in an industry.
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Table of Contents
Introduction Malerba F and Cantner U. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Part 1: Innovation, entrepreneurship, the firm and industry evolution
Innovation and the evolution of industries Malerba F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . . . . . . .
Entrepreneurship, evolution and the human mind Loasby BJ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29. . . . . . . . . . . . . . . . . . .
Division of labor and division of knowledge: Why the nature of the causality matters for the evolutionary theory of the firm Becker MC, Cohendet P, and Llerena P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Part 2: Entry of new firms and small firms
Young firm growth in hightech sectors: The role of founders human capital Colombo MG and Grilli L. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Product entry in a fast growing industry: The LAN switch market Fontana R and Nesta L. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Part 3: Network externalities and networks of innovators
Network effects and the choice of mobile phone operator Birke D and Swann GMP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
VI
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Evolving networks of inventors Cowan R, Jonard N, and Zimmerman JB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Why do firms disclose knowledge and how does it matter? Muller P and Pénin J. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Innovation and competitiveness in local SMEs: Characteristics of firms, entrepreneurs, environment and their interrelationships Giacchero A, Donnini N, and Martin F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Part 4: Innovation and industrial transformation in various sectors
New combinations in old industries: The introduction of radical innovations in tire manufacturing Brusoni S and Sgalari G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Fitness determinants in creative industries: A longitudinal study on the Hollywood filmmaking industry, 19922003 Ferriani S, Cattani G, and BadenFuller C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
The selection environment for gas to liquids technology and technological strategies: Challenging the natural trajectory Bomtempo JV, Fagundes de Almeida EL, and Bicalho RG. . . . . . . . . . . . . . . . . 239
Innovation and employment in Europe: A sectoral perspective Antonucci T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Part 5: Knowledge diffusion, spillovers and firm strategies
A laboratory experiment of knowledge diffusion dynamics Morone A, Morone P, and Taylor R. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
To innovate or to transfer? A study on spillovers and foreign firms in Turkey Lenger A and Taymaz E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
Dynamic gap bridging and realized gap set development: The strategic role of the firm in the coevolution of capability space and opportunity space Dagnino GB and Mariani MM321. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table of Contents
Part 6: Patents  patenting strategies and impacts of patents
VII
Innovation strategy and the patenting behavior of firms Peeters C and van Pottelsberghe de la Potterie B. . . . . . . . . . . . . . . . . . . . . . . . . 345
Effects of patenting behavior on corporate growth: A panel data analysis of German startup firms Niefert M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373
Part 7: Public Policy  competition policy and the patent system
Whats the aim for competition policy: Optimizing market structure or encouraging innovative behaviors? Gaffard JL and Quéré M. . . . . . . . . . . . . . . . . . . . . . . . . . . 393. . . . . . . . . . . . . . . . . . .
Social and technological efficiency of patent systems Vallée T and Yıldızoglu M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407
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