2000/04 | LEM Working Paper Series | |
![]() | ||
Industry Life Cycle and the Evolution of an Industry Network | ||
Bonaccorsi A. and P. Giuri | ||
Keywords | ||
![]() | ![]() | |
industry life cycle; entry, exit; network; vertical relations | ||
Abstract | ||
![]() | ![]() | |
This paper addresses the problem of the general validity of models of the industry life cycle, which have been proposed to analyse the long-term evolution of many industries, exhibiting a typical pattern of shakeout. We study a case of non shake-out in the commercial jet aero-engine industry, marked by a small number of entry events distributed over 40 years of industry evolution, by no exits and by a resulting slowly increasing number of firms. We argue that the vertical structure of the industry, as represented by the network of vertical relations between aero-engine suppliers and aircraft manufacturers, "regulated" the process of entry and exit and posed the conditions for a non shakeout to take place. | ||
Downloads | ||
![]() | ![]() | |
| ||
![]() | ||
![]() |