Firm Size, Innovation and Market Structure uses evolutionary dynamic theory, non-linear mathematics and computer simulation techniques to explore the relationship between firm size, innovation and market structure. The book begins by reviewing the connection between these variables from a theoretical and an empirical point of view, and goes on to illustrate how analytical tools may be used in order to explore Schumpeterian propositions regarding firm size, innovation and the specific role of idiosyncratic events.
This innovative and clearly written book examines the process of diversification as a strategy to promote innovation and growth within firms and to foster structural change in industry. Through a comparative case study of the aerospace industry, using cases of diversification at Dassault (France), Saab (Sweden) and Daewoo (South Korea), the author examines interactions between the firm and the state, and critically evaluates the role of national and sectoral institutions during the diversification process. He then uses these findings to propose a new, original model for diversification.