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Change, Transformation and Development pp 257–289Cite as

The dynamics of vertically-related industries. Innovation, entry and concentration

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Abstract

This paper studies the joint dynamics of concentration, number of firms and products in a vertically-related industry, and develops an original approach based on the analysis of the network of vertical relations between individual firms in buyer and supplier industries. The formation and evolution of the network is explained through technology and market factors such as the level of economies of scope, degree of technological co-specialisation between products in upstream and downstream industries, buyers’ sourcing strategies and degree of market fragmentation. The paper develops an empirical analysis of the commercial jet and turboprop aircraft and engine industries from 1948 to 1997. An econometric analysis is developed to test some hypotheses on the transmission mechanisms of structural changes in the two pairs of industries.

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Authors and Affiliations

  1. Sant’ Anna School of Advanced Studies, via Carducci, 40, I-56127, Pisa, Italy

    Andrea Bonaccorsi & Paola Giuri

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  1. Andrea Bonaccorsi
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  2. Paola Giuri
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Editors and Affiliations

  1. Centre for Research on Innovation and Competition and School of Economic Studies, University of Manchester, Manchester, M13 9QH, UK

    John Stan Metcalfe

  2. Department of Economics and Business Administration, Friedrich-Schiller-University Jena, Carl-Zeiss-Straße 3, 07743, Jena, Germany

    Uwe Cantner (Chair of Economics/Microeconomics) (Chair of Economics/Microeconomics)

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Bonaccorsi, A., Giuri, P. (2003). The dynamics of vertically-related industries. Innovation, entry and concentration. In: Metcalfe, J.S., Cantner, U. (eds) Change, Transformation and Development. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2720-0_14

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  • DOI: https://doi.org/10.1007/978-3-7908-2720-0_14

  • Publisher Name: Physica, Heidelberg

  • Print ISBN: 978-3-642-62410-0

  • Online ISBN: 978-3-7908-2720-0

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