What do we know about industrial dynamics: a focus on innovation, competition and growth - Introduction

The major attempt of the special issue following this introduction is to give an overview of what we know today about industrial dynamics, what are the main outcomes and challenges that come to the surface in this new field. The special issue will thus be aimed at characterizing advances in industrial dynamics, as well as key limits, and also new domains to be explored.

Information imparfaite

Nous tenterons, dans cet article, de clarifier les enjeux de l'intégration de l'information imparfaite dans les principales analyses de la firme: l'analyse des coûts de transaction (section 1), la théorie des contrats incomplets (section 2) et l'approche en termes de compétences dynamiques (section 3).

Firm development as an integrated process: with evidence from the General Motors-Fisher Body case

This paper argues that an adequate approach to the firm should be able to accommodate the complexities of actual firm development. The latter is conceptualized in terms of three general stages: prime movers or drivers of change, change processes, and change attractors. Furthermore, any "real-world" firm is both a technical and an institutional unit. To emphasize the importance of "real firm" analysis, the discussion presented here revolves around an understanding of the much considered case of General Motors and Fisher Body integration has developed over time. Generalization from this case suggests that an integrated view of the firm is necessary that combines the three stages and the two bases (technical and institutional). Six general perspectives on the firm are identified as having technical or institutional bases that are relevant in each of the three stages. This integrated approach to the firm is explored in terms of the general topic of firm development. It is concluded that, without an integrated approach to firm development, a potentially biased or incomplete analysis can result

Concerning a new classification of tricyanides

A new classification series of tricyanides is presented. Several tricyanides are synthesized by a simple method from aluminum chloride, benzonitrile, and a respective alkyl or phenyl chloride, purified by recrystallization and distillation, and then analyzed. Structural formulae are suggested, and molecular weights, melting points, and boiling points are determined for each

The cost of switching Internet providers in the broadband industry, or why ADSL has diffused faster than other innovative technologies: Evidence from the French case

The innovative broadband Internet industry is characterised by inertia phenomena in terms of technology choice, as well as selection of Internet service providers (ISPs). Within the set of firms providing Internet, very often in Europe the incumbent operator has the lion's share of end-customers and supplies the dominant technology. Focusing on the French case, this paper shows that although inertia on the supply side (partly due to the regulation process in itself), helps to explain the technology mix reached to date, a more complete picture of the inertia can be obtained when we consider the existence of costs faced by customers when switching between ISPs. We calculate these so-called “switching costs”. The closing section of this paper derives several implications in terms of policy.

Why and how should innovative industries with high consumers' switching costs be re-regulated?

The existence of costs to consumers to switch between products is central to the process by which firms set prices. Their effect on the introduction and diffusion of innovative technologies is not by now well understood, however. This paper aims to study this effect based on evidence in the broadband Internet industry and to discuss the movement of deregulation implemented since the early 2000s in France, as well as the apparent emerging potential of re-regulation. We argue the presence of a cost to consumers to switch between technologies may impede the expected beneficial outcomes of self-regulation through competition in liberalised innovative industries as it has been implemented so far in several countries. We provide a measure of the cost to switch from ADSL to cable for retail consumers in France which supports the domination of the former technology. These results suggest that retail broadband Internet markets may need some sort of re-regulation, including new principles for competition policy, to avoid the unwanted effects of consumer switching costs.