Keith Hartley uses examples from most of the world�s significant aerospace industries, especially across the USA, UK and Europe. The emphasis on political economy reflects the continuing influence of government on the fortunes of the industry. He prese

First published in 2002. Routledge is an imprint of Taylor & Francis, an informa company.

The UK has been collaborating with international, primarily European partners in the design, development and production of advanced combat aircraft for over sisty years. Driven by a combination of rising costs and limited domestic markets, collaboration has also been a highly political act involving a combination of national, industrial and technological interests. Over the years, the form of collaboration has evolved, in some cases leading to the creation of transnational companies. The UK has been a pioneer of globalisation in the defence industry, establishing a strong presence inside the US defence market and has become a significant partner with American companies in key military aerospace programmes. This has contributed to divisions within the European military aerospace industry which are likely to continue into the next generation of combat aircraft.

Examines the process of diversification as a strategy to promote innovation and growth within firms and to foster structural change in industry, offering new insights on the concept of institutions. Examines interactions between the firm and the state through a comparative case study of the aerospace industries in France, Sweden, and South Korea. Evaluates the role of national and sectoral institutions during the diversification process, and uses findings to propose an original model for diversification. Texier is a researcher in economics of innovation at the University of Linkoping, Sweden. Annotation copyrighted by Book News Inc., Portland, OR