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Innovation as a factor shaping industrial structures: The case of small firms

One of the most fascinating aspects of any long-term consideration of small-scale firms relates to their permanence, as well as to their past and present significance in industrial organization (Antonelli and Balcet, 1979). In fact, while the highly advanced national capitalist economies have undoubtedly witnessed the growth of marked concentration in production, legal ownership and financial control, this trend appears to have been limited by circumstances providing for the continued existence of small firms which, even though reduced in number, have not disappeared altogether. The purpose of this paper is to examine certain technological factors which appear to have contributed to this restriction of industrial concentration (albeit relative) and to the survival of undertakings of small or medium scale.