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Innovation and Industrial Evolution
Author(s) -
Webster Elizabeth,
Buddelmeyer Hielke,
Jensen Paul H.
Publication year - 2007
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.2007.00443.x
Subject(s) - social research , intellectual property , sociology , library science , citation , media studies , management , social science , political science , law , economics , computer science
The article examines industrial innovation, and how it is at the core of the survival and transformation process since it is the way firms metamorphose in order to compete with rivals. If innovation is positively correlated with profitability, those firms that are not innovative are more likely to wither and die. The article discusses the role of government in interceding with firms that are at risk, and postulates that there are likely to be some firm deaths which are prospectively welfare-enhancing and some which are not. The article proposes that governments should be able to differentiate between the two and take appropriate action. The article examines corporate life cycles in Australia to determine the effect of the demise of low productivity firms on industrial evolution