Industrial dynamics : a framework for analysis of industrial transformation - article ; n°1 ; vol.61, pg 7-32

Bo Carlsson

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Revue d'économie industrielle - Année 1992 - Volume 61 - Numéro 1 - Pages 7-32
La première partie de cet article présente les quatre thèmes qui, ensemble, constituent le cadre analytique de base de la Dynamique industrielle : (1) la nature de l'activité économique de la firme ; (2) les frontières de la firme et le degré d'interdépendance entre les firmes ; (3) le changement technologique et son cadre institutionnel ; et (4) le rôle de l'État.
La deuxième partie de l'article fournit un exemple d'analyse de la dynamique industrielle, dans le cas de la productique en Suède. Trois composantes principales du système technologique de la productique sont l'infrastructure institutionnelle (la R-D industrielle, les organismes scientifiques et la politique gouvernementale), la concentration de ressources sous la forme de réseaux (l'accent étant mis sur « des institutions d'interface » et sur les relations entre offreurs et utilisateurs), et les compétences économiques de divers agents, en particulier d'utilisateurs et de producteurs.
The first part of this paper presents four main themes which together constitute the basic analytical framework of Industrial Dynamics : (1) the nature of economic activity in the firm ; (2) the boundaries of the firm and the degree of interdependence among firms ; (3) technological change and its institutional framework ; and (4) the role of public policy.
The second part of the paper provides an example of industrial dynamic analysis as applied to factory automation is Sweden. The main components of the technological system for factory automation are the institutional infrastructure (industrial R&D, academic institutions, and government policy), the clustering of resources in the form of networks (with emphasis on bridging institutions and user-supplier linkages), and the economic competence of various agents, particularly users and suppliers.
26 pages
Source : Persée ; Ministère de la jeunesse, de l’éducation nationale et de la recherche, Direction de l’enseignement supérieur, Sous-direction des bibliothèques et de la documentation.

Informations

• Publié par: REVUE_D-ECONOMIE_INDUSTRIELLE
• Publié le: 01 janvier 1992
• Nombre de lectures: 43
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Bo Carlsson
Industrial dynamics : a framework for analysis of industrial
transformation
In: Revue d'économie industrielle. Vol. 61. 3e trimestre 1992. pp. 7-32.
Résumé
La première partie de cet article présente les quatre thèmes qui, ensemble, constituent le cadre analytique de base de la
Dynamique industrielle : (1) la nature de l'activité économique de la firme ; (2) les frontières de la firme et le degré
d'interdépendance entre les firmes ; (3) le changement technologique et son cadre institutionnel ; et (4) le rôle de l'État.
La deuxième partie de l'article fournit un exemple d'analyse de la dynamique industrielle, dans le cas de la productique en
Suède. Trois composantes principales du système technologique de la productique sont l'infrastructure institutionnelle (la R-D
industrielle, les organismes scientifiques et la politique gouvernementale), la concentration de ressources sous la forme de
réseaux (l'accent étant mis sur « des institutions d'interface » et sur les relations entre offreurs et utilisateurs), et les compétences
économiques de divers agents, en particulier d'utilisateurs et de producteurs.
Abstract
The first part of this paper presents four main themes which together constitute the basic analytical framework of Industrial
Dynamics : (1) the nature of economic activity in the firm ; (2) the boundaries of the firm and the degree of interdependence
among firms ; (3) technological change and its institutional framework ; and (4) the role of public policy.
The second part of the paper provides an example of industrial dynamic analysis as applied to factory automation is Sweden. The
main components of the technological system for factory automation are the institutional infrastructure (industrial R&D, academic
institutions, and government policy), the clustering of resources in the form of networks (with emphasis on "bridging institutions"
and user-supplier linkages), and the economic competence of various agents, particularly users and suppliers.
Citer ce document / Cite this document :
Carlsson Bo. Industrial dynamics : a framework for analysis of industrial transformation. In: Revue d'économie industrielle. Vol.
61. 3e trimestre 1992. pp. 7-32.
doi : 10.3406/rei.1992.1434
http://www.persee.fr/web/revues/home/prescript/article/rei_0154-3229_1992_num_61_1_1434Bo CARLSSON
INDUSTRIAL DYNAMICS :
A FRAMEWORK FOR ANALYSIS
OF TRANSFORMATION
INTRODUCTION
as few Industrial years ago Dynamics, I attempted constituting to formulate a framework a set of ideas for analyzing which I referred the dyna to
A
mic process of transformation of world industry which cannot be adequately dealt
with in the largely static framework of industrial organization (Carlsson 1987 and
1989a). In view of the contributions of several French scholars to a similar
approach, namely the analysis of « La mésodynamique industrielle » (De Bandt
and Humbert 1985 ; Arena 1983 ; Arena, De Bandt, Benzoni and Romani 1988),
it seems highly appropriate, particularly at a conference such as this, to return
to the subject of Industrial Dynamics and to report on recent progress. The pur
pose of the present paper is threefold : (1) to clarify what Industrial Dynamics
is and how it differs from mainstream industrial organization ; (2) to suggest the
types of questions which cannot be answered in the standard framework ; and
(3) to illustrate the results of industrial dynamic analysis by referring to a specific
empirical study of the diffusion of factory automation in Sweden.
INDUSTRIAL DYNAMICS COMPARED TO INDUSTRIAL ORGANIZATION
As I have pointed out earlier, the field of Industrial Economics may be viewed
as consisting of two traditions, namely mainstream industrial organization (IO)
and industrial dynamics (ID). The IO tradition is firmly established in the litera
ture and in the academic curriculum, and its subject matter is well known, while
the same cannot be said of industrial dynamics. The basic differences between
the two traditions are outlined in Table 1 . Whereas in IO the basic unit of analys
is is the industry, in ID the units may be either technologies or economic agents.
The latter may be individual firms or even parts of firms (e.g. divisions) or systems
of entities. In IO the emphasis is on the structure of industry in the form of numb
er and size distribution of firms and the competitive conditions surrounding them.
In ID the focus is on transformation processes and on the interaction among units
REVUE D'ÉCONOMIE INDUSTRIELLE — n° 61, 3e trimestre 1992 7 micro-macro linkages). The analytical framework in IO is the structure- (e.g.
conduct-performance (S-C-P) paradigm, whereas in ID it is evolutionary theory.
The analysis is static or comparative static in IO and dynamic in ID. In IO, tech
nological change is treated primarily in terms of its impact on structure, conduct
and performance. In ID, by contrast, technological change is viewed as a funda
mental part of the industrial transformation process. Performance is judged in
terms of static efficiency in IO and in terms of dynamic efficiency in ID.
TABLE 1 : Comparison of Industrial Organization (IO)
and Industrial Dynamics (ID)
Industrial organization Industrial Dynamics
Unit of analysis Technologies or firms (or Industry
subunits of firms) ; systems
Transformation processes Emphasis Structure
Analytical S-C-P Evolutionary theory
Type of analysis Static or comparative static Dynamic
Treatment of technological Impact on S-C-P Fundamental part of the indust
change rial transformation process
Performance criterion Static efficiency Dynamic efficiency
BASIC QUESTIONS IN INDUSTRIAL DYNAMICS
The basic questions in Industrial Dynamics may be briefly stated as follows :
What are the causes (driving forces) of industrial development and economic
growth ? What are the linkages between these processes and their micro foundat
ions ? That is to say, what are the characteristics of the systems within which
the industrial transformation processes take place ? What is the framework within
which we can best analyze the transformation and restructuring of world industry ?
It may be seen that these questions are fundamentally different from those dealt
with in the traditional IO framework.
Given this main thrust, there are four main themes of Industrial Dynamics which
together constitute the analytical framework :
1 . The nature of economic activity in the firm
2. The boundaries of the firm and the degree of interdependence among firms
3. Technological change and its institutional framework
4. The role of public policy
8 REVUE D'ÉCONOMIE INDUSTRIELLE — n° 61, 3e trimestre 1992 THE NATURE OF ECONOMIC ACTIVITY IN THE FIRM (1)
The modern corporation is certainly far more complex than the standard notion
of the firm in neoclassical theory as a production function which efficiently and
under a budget constraint converts inputs into outputs. This is illustrated in
Figure 1, which shows that the physical transformation of inputs into outputs
("goods processing") requires only slightly more than one-half of the total labor
cost, at least in large Swedish manufacturing firms. Marketing and distribution
make up a little more than 20 percent, and the remainder is distributed among
a variety of other functions. Thus, physical production is only one aspect of the
firm's activity, albeit an important one. The technical efficiency of physical pro
duction (assumed in the conventional production function) is certainly also import
ant, but it cannot be taken for granted. Indeed, the competence required to achieve
technical efficiency is but one aspect of the firm's overall competence. The notion
that firms vary in the degree of competence which they bring to bear on their various
activities is one feature which distinguishes industrial dynamics from the neoclass
ical tradition.
FIGURE 1 : Distribution of labor cost in large Swedish
manufacturing firms, 1982
Marketing and distribution
(21.3%)-
Illustration non autorisée à la diffusion Administration
(7.9%)-
_ (56.3%) "■■' """"~™~^~~~~~" (5.2%)-
(4.6%)-^^^^^^^^^" Goods Processing Design, engineering
& documentation (4.7%)
Other
Source : Eliasson, Carlsson, Deiaco, Lindberg and Pousette, 1986, p. 204.
Economic competence may be defined as the ability to identify, expand, and
exploit business opportunities. It is useful to distinguish between four types of
capabilities which together determine the firm's economic or business competence :
1 . Strategic (selective) capability : the ability to make innovative choices of mark
ets, products, technology, and organizational structure ; to engage in entrepre
neurial activity ; and especially to select key personnel, resources, and competence.
2. Organizational (integrative, coordinating) capability.
(1) This section is based on Carlsson & Eliasson (1991).
REVUE D'ÉCONOMIE INDUSTRIELLE — n° 61, 3e trimestre 1992 3. Technical (functional) ability relating to the various functions within the firm,
such as product