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Industrial Diversification and Innovation : An International Study of the Aerospace Industry : New Horizons in the Economics of Innovation - Francois Texier

Industrial Diversification and Innovation : An International Study of the Aerospace Industry

New Horizons in the Economics of Innovation

Hardcover ISBN: 9781840644524
Number Of Pages: 288

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An examination of the process of diversification as a strategy to promote innovation and growth within firms and to foster structural change in industry. Through a comparative case study of the aerospace industry, using cases of diversification at Dassault (France) Saab (Sweden) and Daewoo (South Korea), the author examines interactions between the firm and the state, and critically evaluates the role of national and sectoral institutions during the diversification process. He then uses these findings to propose a model for diversification. Key features include: an exploration of the ways in which the systems of innovation approach can be used to analyze strategies in firms; insights into the concept of "institutions"; an examination of the relationship between the behaviour of diversifying firms and institutions; and research on the South Korean aerospace industry.

List of tablesp. xi
List of abbreviationsp. xiii
Acknowledgementsp. xv
Introductionp. 1
Purpose of the Studyp. 2
Theoretical Approachp. 3
The Concept of Diversificationp. 3
The Firm, its Environment and Institutionsp. 4
Studying Diversification in Systems of Innovationp. 5
Three Cases of Diversification in the Aerospace Industryp. 6
The Case of Dassault Aviation in Francep. 6
The Case of Saab in Swedenp. 7
The Case of Daewoo in South Koreap. 8
Outline of the Bookp. 9
Theoretical Framework and Methods
Diversification in Systems of Innovationp. 13
Conceptual Issuesp. 15
What is Diversification?p. 15
Systems of Innovation, Institutions and Organisationsp. 20
Competence of the Firm and Learningp. 26
Reasons for Diversificationp. 27
Reasons Internal to the Firmp. 28
Reasons External to the Firmp. 32
Implementing Diversificationp. 37
Management Capabilitiesp. 38
Learning Dimensions in the Diversificationp. 42
External Inputs in the Implementation of Diversificationp. 46
Summaryp. 49
A Case-Study Approach to Analyse Diversification in Firmsp. 53
Method Selectionp. 53
Selecting the Casesp. 56
Choice of the Industryp. 56
Choice of Firms and of Countriesp. 57
Implementing a Comparative Case-Study Methodp. 58
Gathering the Materialp. 58
Problems Encountered and Solutionsp. 60
Appraising the Sourcesp. 61
Limitationsp. 62
Empirical Research
From Military Aircraft to Business Jets in France: The Case of the Dassault Mystere-Falcon 20p. 67
Dassault in the French Aircraft Industry After World War IIp. 68
The First Transport Aircraft Developed by the Generale Aeronautique Marcel Dassaultp. 71
The First Transport Aircraft--the Flamantp. 71
Following Projects--the Communaute and the Spiralep. 72
Contrasted Results in the Development of Transport Aircraftp. 73
The Emergence of the Business Jet Industryp. 73
Business Jets in the United Statesp. 74
The Situation in Europep. 75
A New Emerging Businessp. 76
The Development of the Mystere 20p. 77
Designing the Prototypep. 78
Pan Amp. 81
Financing the Projectp. 84
Early Design and First Customerp. 85
From Mystere 20 to Falcon 20p. 85
Achieving the Required Range with a New Enginep. 86
The Certification of the Aircraftp. 87
The First Steps of the Productionp. 91
Marketing the Aircraftp. 92
Completing the Diversificationp. 92
Conclusionsp. 93
From Military to Regional Aircraft in Sweden: The Case of the Saab 340p. 97
Previous Diversifications at Saabp. 98
The First Projects of Diversification in the Civil Aircraft Industryp. 99
The Long Way to a Civil Aircraftp. 100
Attempting to Diversify During the 1970sp. 102
Political and Managerial Turmoil During the 1970'sp. 103
Political Backgroundp. 103
A New Military Aircraftp. 105
Shifting from Military to Civilp. 106
A Forced Shiftp. 108
Setting Up a New Civil aircraftp. 108
Existing Competences at Saabp. 109
Looking for a Partnerp. 110
Financing of the Projectp. 112
Organisation of the Work With Fairchildp. 113
The Birth of a New Aircraftp. 114
Development and Certification of the Saab 340p. 114
Technologies and Managementp. 115
Testing and Certificationp. 121
A New Aircraft Takes Offp. 126
Conclusionsp. 127
The First Indigenous Korean Aircraft: The Case of the Daewoo KTX-1 'Woong-Bee'p. 131
Historical and industrial Backgroundp. 133
Korean Political History in a Nutshellp. 133
The Chaebols and Their Relations to the Governmentp. 135
The Dawn of the Korean Aerospace Industryp. 136
From Aircraft Overhaul to Licensed Production--Korean Airlinesp. 137
Licence Production of Engines at Samsungp. 139
The Take-Off of the Industry?p. 140
Commercial Contracts, the Expansion of the Industryp. 140
The First Large Offset Programme of Daewoo Heavy Industriesp. 141
The Korean Fighter Programme--KFPp. 143
Commercial Contracts in the Civil Aircraft Industryp. 148
Competition and Politics in the Korean Aerospace Industryp. 148
The First Development Programme--the KTX-1p. 149
The Initiation of the Programme by the Agency for Defence Development and Korean Airlinesp. 150
Daewoo Heavy Industries as a Development Partnerp. 151
The Development of the KTX-1p. 152
Marketing the Aircraftp. 157
The Will but Not the Means?p. 158
Conclusionsp. 159
Analysis and Conclusions
Why Did the Firms Diversify?p. 165
Analytic Summary of the Casesp. 165
Dassaultp. 165
Saabp. 168
Daewoop. 170
Comparison of the Cases--Why Did the Firms Diversify?p. 173
Opportunities for Diversification in a Situation of Institutional Lock-outp. 173
Emergence of an Opportunityp. 174
Advantages for the Statep. 175
Appraisal of the Theoretical frameworkp. 177
Internal Reasons for the Diversificationp. 177
External Constraints on, or Incentives for, the Management of the Firmp. 179
How Did the Firms Diversify?p. 185
Analytic Summary of the Casesp. 186
Dassaultp. 186
Saabp. 188
Daewoop. 191
Comparison of the Learning Dimensions in the Case-Studiesp. 194
Technologiesp. 195
Marketp. 196
Financing the Venturesp. 197
Management and Organisationp. 199
Institutionsp. 200
Management of New Knowledgep. 204
Appraisal of the Theoryp. 205
Managerial Practicesp. 205
National Support for Diversificationp. 209
Successes and Failures in Diversificationp. 210
Dassault--a Great Successp. 212
Saab--a Success Turning into a Failurep. 212
Daewoo--a Technological Success, but Will Markets Follow?p. 214
Conclusionsp. 217
Diversification in National and Sectoral Systems of Innovationp. 218
Triggering Diversificationp. 219
Implementing Diversificationp. 220
Institutions Affecting Firms' Diversificationp. 223
Institutions as Laws and Policies Regulating Industryp. 223
Institutions as Rules of Behaviour Regulating the Relations Between Organisationsp. 224
Institutions as Standards and Certification Requirementsp. 225
Institutions as Routines Inside Firmsp. 227
Interactive Learning Between Organisationsp. 228
Supporting Firmsp. 228
Independent Research Organisationsp. 229
Sectoral Agenciesp. 230
Concluding Remarksp. 230
Public Policy Implicationsp. 230
Firms' Strategy Implicationsp. 232
Referencesp. 235
Interview Protocolsp. 249
Indexp. 253
Table of Contents provided by Syndetics. All Rights Reserved.

ISBN: 9781840644524
ISBN-10: 1840644524
Series: New Horizons in the Economics of Innovation
Audience: Professional
Format: Hardcover
Language: English
Number Of Pages: 288
Publisher: Edward Elgar Publishing Ltd
Country of Publication: GB
Dimensions (cm): 23.5 x 15.88  x 2.54
Weight (kg): 0.59

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