Premium
Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry
Author(s) -
CANTNER UWE,
KRÜGER JENS J.,
VON RHEIN KRISTINA
Publication year - 2009
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2007.00672.x
Subject(s) - german , automotive industry , instrumental variable , estimation , regression analysis , creative destruction , industrial organization , business , marketing , economics , econometrics , engineering , management , market economy , statistics , history , mathematics , archaeology , aerospace engineering
The paper investigates how pre‐entry experience, post‐entry experience and innovative activity affected the survival of German automobile firms over the period 1886–1936. A statistical survival analysis is performed which links instrumental variable estimation with the Cox regression. The main results are that all three knowledge components exert an independent and significantly positive effect on firm survival. Moreover, innovative activity is able to compensate for post‐entry experience, in accord with Schumpeterian creative destruction.