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.