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Product Innovation and Population Dynamics in the German Insurance Market

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Abstract

Empirical research in organizational ecology has mainly focused on analyzing founding and mortality rates using life history data of the organizations. We try to extend this approach in our study in a number of ways. In contrast to most empirical studies in organizational ecology, we chose a population of service organizations, in particular the German insurance companies, the development dynamics of which are rather obvious in the innovative activities of existing organizations than in founding activities. We further discuss the points of contact between the organizational ecology approach and the theory of industry life cycles and extend the analysis to the relationship between innovative activities and population dynamics. The study examines the effects of population density, former events, and organizational size and age structure in the population of property & casualty insurance companies on the number of product innovations generated. We will further develop a concept for an insurance specific industry life cycle with a non-typical maturation and degeneration phase.

Suggested Citation

  • Michael Menhart & Andreas Pyka & Bernd Ebersberger & Horst Hanusch, 2003. "Product Innovation and Population Dynamics in the German Insurance Market," Discussion Paper Series 240, Universitaet Augsburg, Institute for Economics.
    • Handle: RePEc:aug:augsbe:0240
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    Cited by:

    1. Menhart, Michael & Rennhak, Carsten, 2006. "Drivers of the lifecycle: the example of the German insurance industry," Reutlingen Working Papers on Marketing & Management 2006-03, Reutlingen University, ESB Business School.

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    More about this item

    Keywords

    service industries; population ecology; industry life cycles;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • N2 - Economic History - - Financial Markets and Institutions
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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