Michael Menhart, Andreas Pyka, Bernd Ebersberger, Horst Hanusch  

Product Innovation and Population Dynamics in the German Insurance Market


Abstract:

Empirical research in organizational ecology has mainly focused on analyzing founding and mortality rates using life history data of the organizations. We try to extend this approach in our study in a number of ways. In contrast to most empirical studies in organizational ecology, we chose a population of service organizations, in particular the German insurance companies, the development dynamics of which are rather obvious in the innovative activities of existing organizations than in founding activities. We further discuss the points of contact between the organizational ecology approach and the theory of industry life cycles and extend the analysis to the relationship between innovative activities and population dynamics. The study examines the effects of population density, former events, and organizational size and age structure in the population of property & casualty insurance companies on the number of product innovations generated. We will further develop a concept for an insurance specific industry life cycle with a non-typical maturation and degeneration phase.

JEL: L8, N2, O3

Paper:

Paper available as pdf-file. Beitrag Nr. 240, Volkswirtschaftliche Diskussionsreihe, Institut für Volkswirtschaftslehre der Universität Augsburg

Contact:

Michael Menhart, McKinsey, Munich, Germany

Andreas Pyka, University of Augsburg, Department of Economics, Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax +49-821-598-4229

Bernd Ebersberger, University of Augsburg, Department of Economics, Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax +49-821-598-4229

Horst Hanusch, University of Augsburg, Department of Economics, Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax +49-821-598-4229
E-Mail: horst.hanusch@wiwi.uni-augsburg.de


v. K., 18.06.2003