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Creating Silicon Valley in EuropePublic Policy Towards New Technology Industries$
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Steven Casper

Print publication date: 2007

Print ISBN-13: 9780199269525

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199269525.001.0001

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Alternative pathways to competitiveness within CMEs: the subsector specialization argument

Alternative pathways to competitiveness within CMEs: the subsector specialization argument

Chapter:
(p.133) 6 Alternative pathways to competitiveness within CMEs: the subsector specialization argument
Source:
Creating Silicon Valley in Europe
Author(s):

Steven Casper (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199269525.003.0006

Coordinated market economies such as Germany or Sweden do not have appropriate institutional infrastructures to sustain large numbers of radically innovative firms. However, alternative strategies to develop competitiveness in new technology industries might exist. The biotechnology and software industries are each comprised of multiple sub-sectors. While important areas within each industry, such as therapeutics biotechnology or standard software, are associated with radical innovation, other large segments are characterized by incremental innovation. The chapter argues that companies within coordinated market economies could successfully specialize in such sub-segments, creating pockets of national competitiveness for their national industries. Descriptive statistics from the UK, Germany, and Sweden, and case studies from the platform biotechnology and enterprise software industries in Germany are used to empirically substantiate the argument.

Keywords:   varieties of capitalism, national competitiveness, incremental innovation, sub-sector specialization, platform biotechnology, enterprise software

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