Innovation and the Evolution of Industries

Franco Malerba is Professor of Industrial Economics at the Bocconi University in Milan. He is former President of both the International Schumpeter Society and the European Association of Research in Industrial Economics. He is the author of over fifteen books on industrial economics and innovation, and has contributed to numerous journals on the subject. Richard R. Nelson is George Blumenthal Emeritus Professor of International and Public Affairs, Business and Law at Colombia University, and heads the Program on Science, Technology, and Global Development at the Columbia Earth Institute, New York. He is a seminal figure in the revival of evolutionary economics, and is the co-author of An Evolutionary Theory of Economic Change (1990) with Sidney G. Winters. Luigi Orsenigo is Professor of Applied Economics at IUSS, University of Pavia. He is the editor of the Journal of Evolutionary Economics, and the author of three books on biotechnology and industry, and of more than one hundred publications in major international journals. Sidney G. Winter is the Deloitte and Touche Emeritus Professor of Management at the Wharton School, University of Pennsylvania. With Richard R. Nelson, he co-authored the highly cited book An Evolutionary Theory of Economic Change (1990). He was the winner of the Viipuri Prize in Strategic Management in 2008 and the Global Award for Entrepreneurship Research in 2015.

• 1. Innovation and industrial evolution; 2. History-friendly models: methods and fundamentals; 3. The US computer industry and the dynamics of concentration; 4. Vertical integration and dis-integration in the computer industry; 5. The pharmaceutical industry and the role of demand; 6. Reprise and conclusions.

'This book offers welcome advancements to the understanding of industrial dynamics as innovation-driven evolutionary processes. Over the last forty years or so, major progress has been made both in the identification of relatively general 'stylized facts' of industrial evolution and in their account by means of evolutionary models. Much less has been done toward bringing formal theories to the specificities of particular industry histories. This is what this work does, using phenomenologically very detailed models as a sort of coherent thought experiment on the causal mechanisms, yielding the specific features of the histories of the computer, semiconductors and pharmaceutical industries. To be read by history-inclined scholars generally skeptical about any formalization. And to be read by modelers often weary of qualitative histories.' Giovanni Dosi, Scuola Superiore Sant'Anna, Pisa