Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry

This paper studies 40 years of evolution in the German laser industry, which developed in the context of strong foreign competition. Key characteristics found in the U.S. laser industry are also present in Germany. There is sustained entry into the industry, and neither a shakeout nor first-mover advantages of early entrants are observed. Similar to the U.S. industry, spin-offs from existing laser firms have been more long-lived than have been academic startups. An analysis of the spin-off process indicates the importance of specific capabilities acquired at the parent firm.