Industry Life Cycle and the Evolution of an Industry Network

Andrea Bonaccorsi and Paola Giuri

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: This paper addresses the problem of the general validity of models of the industry life cycle, which have been proposed to analyse the long-term evolution of many industries, exhibiting a typical pattern of shakeout. We study a case of non shake-out in the commercial jet aero-engine industry, marked by a small number of entry events distributed over 40 years of industry evolution, by no exits and by a resulting slowly increasing number of firms. We argue that the vertical structure of the industry, as represented by the network of vertical relations between aero-engine suppliers and aircraft manufacturers, "regulated" the process of entry and exit and posed the conditions for a non shakeout to take place.

Keywords: industry life cycle; entry, exit; network; vertical relations (search for similar items in EconPapers)
Date: 2000-12-07
New Economics Papers: this item is included in nep-ent
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2000/04

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