This text elaborates the notion of localized technology with respect to firms, factor substitution, sectors, regions and techniques. It assesses the implications for industrial policy, technology and innovation policy.
This book is based on the papers presented at a conference on "New Issues in Industrial Economics" held at Case Western Reserve University, Cleveland, Ohio, June 8-10, 1987. The conference was organized by the Research Program in Industrial Economics (RPIE) in the Department of Economics at CWRU and was sponsored by The Cleveland Foundation, the Eaton Corporation, and The Standard Oil Company (later renamed BP America, Inc.). Their generous support is gratefully acknowledged. All of the papers have been revised, in several cases extensively, since their presentation at the conference. One of the primary reasons for organizing the conference was the concern that Industrial Economics has become too narrowly focused in most academic programs, largely being confined to Industrial Organization, i.e., issues of public policy towards enterprise with emphasis on antitrust and regulatory policy. This subject definition leaves out a number of interesting and important questions about how industries evolve over time, what the role of technological change (and organizational change) is in that process, and the associated structural changes within industries and firms. The object of this book is to derme these issues and suggest a framework within which they can be analyzed. I would like to thank all the conference participants for their contributions, particularly my colleagues at CWRU, Asim Erdilek and William S. Peirce, without whose encouragement and support the conference would not have taken place.
Industrial transformation is a research and teaching field with a focus on the phenomenon and mechanisms of industrial development and renewal. It concerns changes in economic activities caused by innovation, competition and collaboration, and has a rich heritage of evolutionary economics, institutional economics, industrial dynamics, technology history and innovation studies. It borrows concepts and models from the social sciences (sociology, history, political sciences, business/management, economics, behavioural sciences) and also from technology and engineering studies. In this book, the authors present the key theories, frameworks and concepts of industrial transformation and use empirical cases to describe and explain the causes, processes and outcomes of transformation in the context of digitalization and sustainability. They stress that industrial transformation consists both of Darwinian "survival of the fittest" selection, and of intentional pursuits of innovation, and of industrial capabilities creation. The work argues that managing the global trends of transformation is not only about new technology and innovation: existing institutional settings and dynamic interactions between technological change, organizational adaptation and economic activities also have a profound impact on future trajectories. The areas under investigation are of great relevance for strategic management decisions and industrial and technology policies, and understanding the mechanisms underlying transformation and sustainable growth.
'Understanding Industrial and Corporate Change' contains pioneering work on technological, organizational, and institutional change and explores three distinct themes: Markets and Organizations; Evolutionary Theory and Technological Change; and Strategy, Capabilities, and Knowledge Management.
We also find that there is interdependence in innovational efforts across markets: effort in a given market is correlated with the number of novel drugs of other firms in other markets. This suggests interdependencies across markets that should be part of innovation policy analysis. In chapter 3 I study the relationship between firm size and research and development expenditures in the presence of firm level heterogeneity. I test the Schumpeterian hypothesis that larger firms will invest disproportionately more in R & D.I find that there is no evidence of returns to scale in R & D investment. Small firms are investing a larger fraction of their revenues in R & D.I also find that the relationship between firm size and R & D investment is weaker when heterogeneity is taken into account and the focus is on what happens when firm size increases. These results highlight the importance of dimensions of heterogeneity other than firm size per se as determinants of the relationship of firm size and R & D.
An area of neglect in much of current economic theory has been its lack of attention to the impact of technological innovation on the structure and behavior of firms and the market. This book is a comprehensive study of the economic implications of technological change for three primary institutions: the firm, the market, and the civil sector.
This volume contains a selection of papers presented at an international symposium on research and development, industrial change and economic policy organized and hosted by the University of Karlstad, Viinnland, Sweden. Situated about halfway between Stockholm and Oslo, Karlstad stands on the River Klara, which reaches north into the mountains of Norway. Founded by King Charles IX of Sweden, whose statue stands in the city centre beside the river, the city celebrated its 400th anniversary in 1984. For many decades the wealth of Karlstad has been based on traditional industries such as iron, timber and paper, and throughout the province of Viinnland there are a considerable number of industrial communities which grew up around mines, ironworks, sawmills and papermills. Even the cultural structure of these communities is heavily marked by the industrial environment in which they developed. However, for over a decade now a major structural reorientation has been taking place and the old industrial structures have been disappearing. For various reasons the importance of large scale, manufacturing companies has declined and as a result of intense development work with new ideas, new entrepreneurs and new technology, we have seen the rapid rise of small companies. In this context, recent research has shown that universities playing an increasingly central role in regional development. Thus the continued development of the University of Karlstad is of significant regional and national interest. Although fairly small in an international perspective (approximately 4000 students) the university is expanding rapidly.