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The Dynamics of the Organisation of Industry

Esben Sloth Andersen ()

No 98-13, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: The paper presents and formalises an approach to the evolution of the organisation of industry which starts from multi-activity firms, and which relates to economists like Young, Stigler, and Richardson. To capture the open-ended process of disintegration of industry, the paper operates with decomposable tasks and gives an account of the vertical and horizontal structure of production by means of weighted trees — in the graphtheoretical sense. Based on this addition to the analytical toolbox, the paper gives an account of the decomposition of industry as driven by the structural innovations and process innovations of firms that specialise and exchange in an open-ended evolutionary process.

Keywords: Vertical disintegration; horizontal disintegration; production trees; specialisation of production; specialisation of R&D; George B. Richardson (search for similar items in EconPapers)
JEL-codes: L00 L22 (search for similar items in EconPapers)
Date: 1998
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