| One recurrent theme in the discussion about the features of the 'industry convergence' is the claim that due to an increased rate of technological change, industries like telecommunications, internet, and TV are converging. Despite mis common interest in the convergence of industries and technology, there has been very little cross-fertilization between evolutionary economics and the industry convergence literature. The present paper contributes to these questions, in particular to the question of how industry convergence affects industry evolution.Industry convergence is to be more than a popular buzzword, the concept of industry convergence needs more analytical clarity. From the point of definition of industry, industry convergence not only implies the convergence of technologies (from supply side) but of products(from demand side) at the same time. After clarifying what is meant by industry convergence, four different broad patterns of market convergence, building on sectoral system of innovation and evolutionary economics and industry life cycle theories, these four types of convergence and their impact on market structure and firm behavior. The paper contributes in particular to the question of how market convergence affects firm behaviors, innovative activity, and industry evolution.Malerba concludes his discussion and offers the working definition of a sectoral system of innovation. The sectoral system of innovation approach has been developed in evolutionary economics to provide a framework for studying the forces that shape the creation and diffusion of innovations in industries.The developed framework is then used to discuss IPTV industry evolution. The IPTV industry experienced fast growth during the last decade. Rapid digital innovations have characterized industrial dynamics, leading to a transformation of the IPTV industry. The paper explores the significance of industry convergence for understanding the evolution of the IPTV industry... |
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