The Evolution of a New IndustryA Genealogical Approach

The Evolution of a New IndustryA Genealogical Approach

Israel Drori, Shmuel Ellis, and Zur Shapira

Print publication date: 2013

ISBN: 9780804772709

Publisher: Stanford University Press


This book 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 chapters here 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, the chapters 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.