The Evolution of a New Industry

A Genealogical Approach
This book is the first to explore industry evolution using a historical and genealogical approach. The authors' analysis departs from traditional studies and draws attention to the dynamics of evolution, while relating the effects of parent company conditions to their corporate progeny and imprinting potential.

The Evolution of a New Industry traces the emergence and growth of the Israeli hi-tech sector to provide a new understanding of industry evolution.

In the case of Israel, the authors reveal how the hi-tech sector built an entrepreneurial culture with a capacity to disseminate intergenerational knowledge of how to found new ventures, as well as an intricate network of support for new firms. Following the evolution of this industry from embryonic to mature, Israel Drori, Shmuel Ellis, and Zur Shapira develop a genealogical approach that relies on looking at the sector in the way that one might consider a family tree. The principles of this genealogical analysis enable them to draw attention to the dynamics of industry evolution, while relating the effects of the parent companies' initial conditions to their respective corporate genealogies and imprinting potential. The text suggests that genealogical evolution is a key mechanism for understanding the rate and extent of founding new organizations, comparable to factors such as opportunity structures, capabilities, and geographic clusters.

Pages: 208

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