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4 - The chemical sectoral system: firms, markets, institutions and the processes of knowledge creation and diffusion

Published online by Cambridge University Press:  22 September 2009

By
Fabrizio Cesaroni ,
Alfonso Gambardella ,
Walter Garcia-Fontes  and
Myriam Mariani
Edited by
Franco Malerba
Fabrizio Cesaroni
Affiliation:
Laboratory of Economics and Management (LEM), Scuola Superiore Sant'Anna, Pisa
Alfonso Gambardella
Affiliation:
Scuola Superiore Sant'Anna, Pisa
Walter Garcia-Fontes
Affiliation:
Department of Economics, Universitat Pompeu Fabrander
Myriam Mariani
Affiliation:
Maastricht Economic Research Institute on Innovation and Technology (MERIT), University of Maastricht
Franco Malerba
Affiliation:
Università Commerciale Luigi Bocconi, Milan
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Summary

Introduction

The aim of this chapter is to analyze the chemical industry by using the theoretical framework of a sectoral system of innovation. The chapter describes the knowledge and technological base of the industry and explores the existence of complementarities among knowledge, technologies and products. It also examines the heterogeneity of the relevant agents in the industry, their learning processes and their competencies, the role of non-firm organizations and the characteristics of industry dynamics and (co)evolutionary processes (see chapter 1 in this book).

Previous studies describe the characteristics of the chemical industry and emphasize its heterogeneity (see, among others, Arora, Landau and Rosenberg, 1998). The chemical industry is composed of different subsectors, ranging from bulk chemicals to biotechnology. Each of them is characterized by specific features and is based on particular knowledge and technological bases. This heterogeneity, together with the century-long history of the industry, allows for a comprehensive study of the existence of evolutionary and coevolutionary processes in this sector.

The most relevant agents in the chemical industry are the established chemical companies, which emerged over time because of the importance of economies of scale at the level of the firm. These large companies could spread the fixed costs of plant setting and product development, and afford the big investments in production and marketing activities to reach geographically dispersed markets. Small and innovative chemical firms and public institutions interact with these large companies through cooperative and competitive relationships (Aftalion, 1999).

Type
Chapter
Information
Sectoral Systems of Innovation
Concepts, Issues and Analyses of Six Major Sectors in Europe
 , pp. 121 - 154
Publisher: Cambridge University Press
Print publication year: 2004

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References

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