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Industry Life Cycles in Dutch Manufacturing

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  • Dijk, Machiel van

    (MERIT)

Abstract

Theories and models on product life cycles explain and depict the evolution of an industry''s structural and dynamic properties over its lifetime. Hence, empirically observed intersectoral differences may stem from different evolutionary stages that industries occupy. The aim of this paper is to find empirical evidence for this explanation. By using a model on industrial evolution by Klepper (1996), and by exploring a firm-level dataset on the Dutch manufacturing sector, this paper will show that industries in different stages show significantly different regularities. Furthermore, it will be shown that to a considerable extent, the observed regularities are in line with Klepper''s model. However, no evidence was found for Klepper''s hypothesis that differences in industrial regularities can be explained by dynamic increasing returns from technological change.

Suggested Citation

  • Dijk, Machiel van, 1998. "Industry Life Cycles in Dutch Manufacturing," Research Memorandum 010, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1998010
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    File URL: https://unu-merit.nl/publications/rmpdf/1998/rm1998-010.pdf
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    References listed on IDEAS

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    1. Steven Klepper & Elizabeth Graddy, 1990. "The Evolution of New Industries and the Determinants of Market Structure," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 27-44, Spring.
    2. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574.
    3. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    4. Flaherty, M Therese, 1980. "Industry Structure and Cost-Reducing Investment," Econometrica, Econometric Society, vol. 48(5), pages 1187-1209, July.
    5. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
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    Cited by:

    1. Michael Dietrich & Jackie Krafft, 2012. "The Economics and Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 1, Edward Elgar Publishing.
    2. Jackie Krafft, 2004. "Shakeout in industrial dynamics: new developments, new puzzles," Chapters, in: John Foster & Werner Hölzl (ed.), Applied Evolutionary Economics and Complex Systems, chapter 8, Edward Elgar Publishing.
    3. Michael Dietrich & Jackie Krafft, 2012. "Economics and Theory of the Firm, Chap. 1 of the Handbook on Economics and Theory of the Firm, M. Dietrich and Jackie Krafft (eds), Edward Elgar: Cheltenham, 2012," Post-Print halshs-00742302, HAL.

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