EH.Net Abstracts in Economic History

                ABSTRACTS IN ECONOMIC HISTORY
                     (c) 2003 EH.Net
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Name: Johann Peter Murmann
Email: jpm at northwestern.edu
Institution: Northwestern University

Co-author: none

Title: The Coevolution of Industries and National Institutions: 
Theory and Evidence

Internet Address of abstracted work: not available

By mail:
Northwestern University
Kellogg School of Management
2001 Sheridan Road
Leverone Hall 3100
Evanston, IL 60208

Language: English

Abstract:
A survey across space and time reveals that leading firms operating 
in global industries often cluster in one or a few countries. The 
paper argues that nations differ in how successful they are in a 
particular industry because coevolutionary processes linking a 
particular industry and national institutions powerfully shape the 
path of an industry's development. Across a wide range of contexts, 
scientific progress and industrial leadership reinforce each other in 
spirals of cumulative national advantage. A study of synthetic dyes 
from 1857 to 1914 provides a dramatic example of how these positive 
feedback processes gave German organic chemistry and German dye firms 
a dominant position in the world. Over time, the relative strength of 
a nation in a particular industry and the capability of the country 
in a relevant scientific or engineering discipline display a strong 
positive correlation. Additional shorter case studies of agriculture, 
packaged software, and biotechnology support this hypothesis.

Bibliography: Murmann, Johann Peter. "The Coevolution of Industries 
and National Institutions: Theory and Evidence." Northwestern 
University, Working Paper 2003.

Subject: R
Geographical Area: 0
Country/Region: 0
Time Period: 7,8

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