Innovation and the Dynamics of Industries
organized by GSBC – „Jena Graduate School on Behaviour in Social and Economic Change“, open to CGDE students
Lecturer: Prof. Dr. Uwe Cantner (Chair of Microeconomics, Friedrich Schiller University Jena)
Date: January 12-15, 2014 (15,5 h lecture, 8,5 h self-study, 3,5 h presentations)
Venue: Friedrich Schiller University Jena, Bachstr. 18k, 207/102
Registration: Please contact Tina Wolf, E-mail: firstname.lastname@example.org, until December 30, 2014.
This course focusses on the dynamics of industries which are driven by the innovative and imitative activities of firms. A discussion of the theory and empirics of the so-called Neo-Schumpeter Hypotheses is followed by an introduction into stylized facts, into the pattern of innovation and into related industry classifications. To understand and explain these patterns theoretical and empirical approaches of technological dynamics (forging ahead, catching-up), entry and exit, and market share dynamics are introduced. In a last step those concepts are integrated into the framework of the industry life cycle. Theoretical as well as empirical approaches will be presented.
Each student has to present a paper from a list of recent papers, which will then be discussed in class. The purpose is to identify current research topics.
Presentation of a paper (50% of final grade): Students will be assigned a paper after registering for the course. Presentations are scheduled for.
Research proposal (50% of final grade): Students have to submit a proposal on an industrial dynamics project within a month after the course. Further details will be provided during the course.
Monday, Jan. 12:
Tuesday, Jan 13:
13:30-17.00 self-study/seminar participation
Wednesday, Jan. 14:
Thursday, Jan. 15:
13:30-17:00 presentations by PhD students
Selected Papers/Readings (also for student presentations):
 Dunne, P., Hughes, A., Age, Size, Growth and Survival: UK Companies in the 1980s, The Journal of Industrial Economics 42, 1994, 115-140
 Lee, G., Folta, T., Lieberman, M., Relatedness and Market Exit, INSEAD Working Paper No. 2010/39/ST, 2010
 Castellacci, F., Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation, Research Policy 37, 2008, 978–994
 Audretsch, D.B., Mahmood T., The rate of hazard confronting new firms and plants in U.S. manufacturing, Review of Industrial Organization, 1994, 9, 41-56
 Cantner, U., Krüger, J.J. von Rhein, K., Knowledge and Creative Destruction over the Industry Life Cycle – The Case of the German Automobile Industry, Economica 76(301), 2009, 132-148
 Cantner, U., Krüger, J.J., Geroski´s Stylized Facts and Mobility in Large German Manufacturing Firms, International Journal of Industrial Organisation 24(3), 2004, 267-283
 Cantner, U., Krüger, J.J., Micro-Heterogeneity and Aggregate Productivity Development in the German Manufacturing Sector – Results from a Decomposition Exercise, Journal of Evolutionary Economics 18(2), 2008, 119-134
 Coad, A., Testing the principle of the ‘growth of the fitter’: the relationship between profits and firm growth, Structural Change and Economic Dynamics 18, 2007, 370-386
 Cohen, W., Levin, R.C., Empirical studies of innovation and market structure, in: Schmalensee, R. (ed.), Handbook of Industrial Organization Volume I, Elsevier Science Publishers B.V., 1989, 1060-1107
 Davies, S.W., Geroski, P.A., Changes in concentration, turbulence, and the dynamics of market shares, Review of Economics and Statistics, 1997, 383-91
 Geroski, P.A., What Do We Know About Entry?, International Journal of Industrial Organization, 1995, 13, 421-440
 Gort, M., Klepper, S., Time Paths in the Diffusion of Product Innovations, Economic Journal 92, 1982, 630-653
 Klepper, S., Entry, Exit, Growth, and Innovation over the Product Life Cycle, Journal of American Economic Review 86, 1996, 562-583
 Klepper, S., Graddy, E., The Evolution of New Industries and the Determinants of Market Structure, Rand Journal of Economics 21, 1990, 27-44
 Malerba, F. & Orsenigo, L. Technological regimes and sectoral patterns of innovative activities Industrial Corporate and Change, 1997, 6, 83-117
 Malerba, F., L. Orsenigo, P. Peretto, Persistence of innovative activities, sectoral patterns of innovation and international technological specialization, International Journal of Industrial Organization 15, 1997, 801-826
 Pavitt, K. Sectoral patterns of technical change: towards a taxanomy and a theory Research Policy, 1984, 13, 343-73
 Utterback, J.M., Abernathy, W.J., A Dynamic Model of Process and Product Innovation, Omega 3, 1975, 639-656
 Utterback, J.M., Suàrez, F.F., Dominant Designs and the Survival of Firms, Strategic Management Journal 16, 1995, 415-430
 Vaona, A., Pianta, M., Firm size and innovation in European manufacturing“ Small Business Economics, 30, 2008, 283-299