Università degli Studi di Pavia - Faculty of Economics

The main focus of the course will be the analysis of the growth and survival of industries and firms, an issue that is crucial to the growth of economies as a whole . To understand how industries develop and change, we need to understand how new or improved production methods and products are introduced. This course examines industrial change, beginning from the inception of an industry. Special attention is paid to the role of technology as an important driver of industrial competition.

We will examine the entry, exit, and growth of firms in individual industrial markets, such as automobiles, tires, semiconductors, lasers, networking products, and computers. We will study how oligopolies form as a result of product variety, economies of scale, scope, advertising and distribution. In so doing, we will also speculate about possible national policies and strategies for corporate success.

Topics will include:

1. Technological change and economic growth
2. Sources of invention: Small firms and innovative networks
3. Sources of invention: Big firms and streamlined structure, improvement efficiency
4. The evolution of new industries
5. Turnover of corporate leadership
6. Shakeouts
7. Alternative reasons for shakeouts and industry concentration
8. Product differentiation and market niches
9. Firm growth

SYLLABUS

At the end of the course students will have learned:

• How firms evolve and compete in industries as a consequence of technological change
• How to apply research tools to the analysis of real-life firms, markets and industries.