Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry
Version of Record online: 22 FEB 2008
© The London School of Economics and Political Science 2008
Volume 76, Issue 301, pages 132–148, February 2009
How to Cite
CANTNER, U., KRÜGER, J. J. and VON RHEIN, K. (2009), Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry. Economica, 76: 132–148. doi: 10.1111/j.1468-0335.2007.00672.x
- Issue online: 23 DEC 2008
- Version of Record online: 22 FEB 2008
- Final version received 17 July 2007.
The paper investigates how pre-entry experience, post-entry experience and innovative activity affected the survival of German automobile firms over the period 1886–1936. A statistical survival analysis is performed which links instrumental variable estimation with the Cox regression. The main results are that all three knowledge components exert an independent and significantly positive effect on firm survival. Moreover, innovative activity is able to compensate for post-entry experience, in accord with Schumpeterian creative destruction.