publication . Preprint . 2006

Functional Demand Satiation and Industrial Dynamcis - The Emergence of the Global Value Chain for the U.S. Footwear Industry

Alexander Frenzel Baudisch;
Open Access
  • Published: 01 Jan 2006
Around 1940 Schumpeter draws on an analysis of the U.S. footwear industry as an exemplar case to formulate his famous hypothesis about the positive relation between market concentration and innovative activity. Starting in the 1970s the value chain of U.S. footwear producers disintegrates, eventually separating the process of product innovation from manufacturing in this industry. Studies testing Schumpeter’s hypothesis commonly do not account for the modularity and globalization of an industry’s value chain. Schumpeter having neglected the demand side in his theorizing, we argue that the separation of product innovation and manufacturing in the U.S. footwear in...
free text keywords: Industrial organization, Schumpeter hypothesis, Modular Value Chain, Consumer Behavior, Footwear Industry, jel:B25, jel:F02, jel:L11, jel:L67
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