‘Development Blocks’ in Industrial Economics
The concept development block refers to a set of factors in industrial development which are closely interconnected and interdependent. Some of them are reflected in price and cost signals in markets which are noted by firms and may give rise to new techniques and new products. Some of them come about by firms creating new markets for their products via entrepreneurial activities in other industries. This, too, may include the creation of new techniques and new products. In both cases, incomplete development blocks generate both difficulties and opportunities for firms. This analytical approach can contribute to closing the gap between micro and macro analysis.
KeywordsEntrepreneurial Activity Industrial Economic Creative Destruction Forest Industry Exchange Rate Policy
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