When shakeout doesn't occur The evolution of the turboprop engine industry

A careful case study of the history of the turboprop engine industry (1948- 1997) is offered as an example of non-shakeout pattern. The persistence of high concentration is not associated with the exit of smaller manufacturers , but instead a stable coexistence of generalist and specialist strategies emerges, in sharp contrast to the pattern observed in the, otherwise simila r, jet engine industry. This paper identifies the relevant variables of a m ore general theory of industry life cycle by taking into account the lack o f creation of significant increasing returns in R&D, manufacturing or marke ting, all of which are commonly found in industries that produce systemic p roducts. (C) 2000 Elsevier Science B.V. All rights reserved.