Technological Regimes and Industrial Dynamics: The Evidence from Dutch Manufacturing
Abstract
Previous empirical research has shown that the observed inter-sectoral variety in the rates and form of organizations of innovations is related is related to the differences in the underlying technological regimes. Further, theoretical models of industry dynamics suggest a similar relationship between the structural and dynamic properties of the firm population of an industry and its underlying technological regime. Using productivity differences between entrants and incumbents as a proxy for the technological regime of an industry, this paper, on the grounds of longitudinal firm-level database on the Dutch manufacturing sector, shows that differences between industries with regard to their structural and dynamic properties are strongly related to their underlying technological regimes.