Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose

Evolutionary economists have tended to assess firms and industries separately, neglecting the role of their interaction in the process of economic growth and development. We trace the separation of firms and industries to Marshall, whose industrial analysis by means of the representative firm forma...

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Main Author: Bloch, Harry
Format: Working Paper
Published: Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology 2007
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/18023
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author Bloch, Harry
author_facet Bloch, Harry
author_sort Bloch, Harry
building Curtin Institutional Repository
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description Evolutionary economists have tended to assess firms and industries separately, neglecting the role of their interaction in the process of economic growth and development. We trace the separation of firms and industries to Marshall, whose industrial analysis by means of the representative firm formalizes population thinking as ?thin? means of relating firms and industries. Penrose avoids the industry concept by focussing on heterogeneous firms, while Young and Steindl develop mundane explanations of firms? relations within groups, locating the impetus for growth in a poorly understood environment. We conclude that evolutionary economics should revisit firms? boundaries, not in the sense of explaining the existence of firms, but in a relating and communicating sense in which boundaries signify selective means of relations with others.
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spelling curtin-20.500.11937-180232017-05-30T08:06:50Z Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose Bloch, Harry Marshallian economics external economies industries firms firms? boundaries Evolutionary economists have tended to assess firms and industries separately, neglecting the role of their interaction in the process of economic growth and development. We trace the separation of firms and industries to Marshall, whose industrial analysis by means of the representative firm formalizes population thinking as ?thin? means of relating firms and industries. Penrose avoids the industry concept by focussing on heterogeneous firms, while Young and Steindl develop mundane explanations of firms? relations within groups, locating the impetus for growth in a poorly understood environment. We conclude that evolutionary economics should revisit firms? boundaries, not in the sense of explaining the existence of firms, but in a relating and communicating sense in which boundaries signify selective means of relations with others. 2007 Working Paper http://hdl.handle.net/20.500.11937/18023 Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology fulltext
spellingShingle Marshallian economics
external economies
industries
firms
firms? boundaries
Bloch, Harry
Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose
title Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose
title_full Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose
title_fullStr Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose
title_full_unstemmed Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose
title_short Firms and industries in evolutionary economics: Lessons from Marshall, Young, Steindl and Penrose
title_sort firms and industries in evolutionary economics: lessons from marshall, young, steindl and penrose
topic Marshallian economics
external economies
industries
firms
firms? boundaries
url http://hdl.handle.net/20.500.11937/18023