The main focus of the course will be the analysis of the growth and survival of industries and firms, an issue that is crucial to the growth of economies as a whole. To understand how industries develop and change, we need to understand how new or improved production methods and products are introduced. This course examines industrial change, beginning from the inception of an industry. Special attention is paid to the role of technology as an important driver of industrial competition. We will examine the entry, exit, and growth of firms in individual industrial markets, such as automobiles, tires, semiconductors, lasers, networking products, and computers. We will study how oligopolies form as a result of product variety, economies of scale, scope, advertising and distribution. In so doing, we will also speculate about possible national policies and strategies for corporate success.
Course Prerequisites
Basic knowledge of Industrial Organization
Teaching Methods
In person lectures and student group presentations.
Assessment Methods
Written exam at the end of the course + group presentations
Texts
Reading material for this course is separated in two categories:
a) Required readings, i.e., max two items per lecture.
b) Suggested readings, i.e., additional material that is likely to be referred to during the lectures.
References for these readings are provided during each class.
Contents
Topics will include: 1. Technological regimes and patterns of innovative activities 2. Sources of invention: Big firms and streamlined structure, improvement efficiency 3. The evolution of new industries 4. Turnover of corporate leadership 5. Industry Shakeouts 6. Alternative reasons for shakeouts and industry concentration 7. Determinants of entry in new industry and market niches 8. Firm growth 9. Persistence in innovation
