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Industrial Dynamics: A Review Of The Literature 1990–2009

Bengt Carlsson
Published 2016 · Political Science, Economics

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Abstract This paper reviews the literature in the field of industrial dynamics (ID) as it has emerged since I first introduced the term in 1985. Nearly 8,000 articles in 12 major journals have been reviewed and classified under five broad themes that constitute the basic questions in ID: (1) the causes of industrial development and economic growth, including the dynamics and evolution of industries and the role of entrepreneurship; (2) the nature of economic activity in the firm and the dynamics of supply, particularly the role of knowledge; (3) how the boundaries and interdependence of firms change over time and contribute to economic transformation; (4) technological change and its institutional framework, especially systems of innovation; (5) the role of public policy in facilitating adjustment of the economy to changing circumstances at both micro- and macro-levels. Under each theme, the main findings and their implications for theory and policy are summarized. The paper concludes with a summary of the contribution of industrial dynamics to a better understanding of industrial transformation and economic growth and reflections on challenges for future research.
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