Cantner, Uwe --- "Industrial Dynamics and Evolution – The Role of Innovation, Competences and Learning" [2011] ELECD 345; in Drexl, Josef; Kerber, Wolfgang; Podszun, Rupprecht (eds), "Competition Policy and the Economic Approach" (Edward Elgar Publishing, 2011)

Book Title: Competition Policy and the Economic Approach

Editor(s): Drexl, Josef; Kerber, Wolfgang; Podszun, Rupprecht

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848448841

Section: Chapter 8

Section Title: Industrial Dynamics and Evolution – The Role of Innovation, Competences and Learning

Author(s): Cantner, Uwe

Number of pages: 24

Extract:

8. Industrial dynamics and evolution ­
the role of innovation, competences
and learning
Uwe Cantner

1. INTRODUCTION

Industries and sectors are dynamic in the sense that their structures change
over time, sometimes more slowly and goal-oriented, sometimes fast and
quite erratic. Among the more prominent forces considered responsible
are the introduction of innovations by incumbents, the innovation based
market entry of new or branching firms, and the exit of not-necessarily-
failing firms. Since the late 1970s, industrial dynamics has emerged as a
major area of inquiry in industrial economics, recognizing the central role
of innovation for firms and industries.
Here I address theoretical and empirical considerations from an evolu-
tionary economics point of view, which are relevant for an understanding
of this innovation driven dynamics leading to certain patterns of structural
change within and between industries and markets. The notion of evolu-
tionary economics is taken here in a rather broad sense, neglecting mostly
the more intricate discussions especially about what `evolutionary' means.
In the following, this concept implies first of all `dynamics' which means
that the phenomena under consideration can be understood well only if a
dynamic perspective is taken. Hence, it is not the sheer existence of these
phenomena but their emergence and development which allow us to grasp
their significance. Second, the notion of `evolutionary' in general implies
that the outcomes of evolutionary processes are usually not based on a
perfect ex ante plan, but are the result of a trial-and-error process com-
bined ...