Article,

Co-Evolution of Industry Structure, Technology and Supporting Institutions, and the Making of Comparative Advantage

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International Journal of the Economics of Business, 2 (2): 171--185 (July 1995)

Abstract

Analyzes the co-evolution of industry structure, technology and supporting institutions, and the making of comparative advantage. Theories of the sources of comparative advantage; Case study of the strong comparative advantage of the United States in the semiconductor business. In recent years, a considerable body of research has been established on the co-evolution of technology and industry structure, from the time that the technology is young to the time when it is mature. A somewhat smaller body of research has been established on how private and public institutions, and public programs and policies co-evolved with a technology and industry. It is proposed here that nations differ in their pace and pattern of institutional response to the birth and development of an industry, and that the locus of comparative advantage is largely determined by these different kinds of national response.

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