NDLI: Using simulation experiments to test historical explanations: the development of the German dye industry 1857-1913

Content Provider	Springer Nature Link
Author	Brenner, Thomas Murmann, Johann Peter
Copyright Year	2015
Abstract	In a simulation experiment, building on the abductive simulation approach of Brenner and Werker (2007), we test historical explanations for why German firms came to surpass British and France firms and to dominate the global synthetic dye industry for three decades before World War 1 while the U.S. never achieved large market share despite large home demand. Murmann and Homburg (J Evol Econ 11(2):177–205, 2001) and Murmann (2003) argued that German firms came to dominate the global industry because of (1) the high initial number of chemists in Germany at the start of the industry in 1857, (2) the high responsiveness of the German university system and (3) the late (1877) introduction of a patent regime in Germany as well as the more narrow construction of this regime compared to Britain, France and the U.S. We test the validity of these three potential explanations with the help of simulation experiments. The experiments show that the 2nd explanation—the high responsiveness of the German university system— is the most compelling one because unlike the other two it is true for virtually all plausible historical settings.
Starting Page	907
Ending Page	932
Page Count	26
File Format	PDF
ISSN	09369937
Journal	Journal of Evolutionary Economics
Volume Number	26
Issue Number	4
e-ISSN	14321386
Language	English
Publisher	Springer Berlin Heidelberg
Publisher Date	2015-11-21
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Simulation experiment Historical development Dye industry Industrial development University education Patent law Institutional/Evolutionary Economics Economic Theory/Quantitative Economics/Mathematical Methods Microeconomics Economic Growth R & D/Technology Policy Entrepreneurship
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics Business, Management and Accounting

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4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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