Selection and Evolution of Industry

摘要: The evolution of industry depends on the selection mechanism, that is, process entry and exit firms various factors influencing decisions. Three major are most important in process. One is evolutionary perspective which emphasizes firm’s ability competence to alter their market position hence through strong increasing returns scale, structure significantly. Following Schumpeterian theory technological innovations main source such cumulative aspect innovations, where “size begets size” causes industrial dynamics be characterized by nonlinear path dependent processes, random events like a new technical may have lasting irreversible effects dynamic Secondly, differ significantly commitment innovate. Thus products processes largely endogenous firm R&D investment learning-by-doing. vigorous innovation has been found generate more competitive structures, while requiring large generally involve concentration size firms. Also due nature discover technologies able maintain lead even after particular technology obsolete.