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Analysis and results

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Open and Closed Innovation

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Abstract

The chemical industry comprises a multitude of segments with an estimated 70,000 different product lines: for example, paints and coatings, fertilizers, pesticides, herbicides and other agricultural chemicals, Pharmaceuticals, cosmetics, detergents, solvents, composites, plastics, synthetic fibers and rubbers, inks, photographic supplies, and many others633. This plethora of different products is manufactured by more than 1,000 large and medium-sized companies, let alone countless small firms634. Along with a total sales volume of about €1,476 billion (excluding pharmaceuticals) worldwide in 2005635, the chemical industry is one of the largest, most complex, and most diversified industries at all. Due to the enormous diversity of products, the chemical industry supplies virtually into every other industry636. Having its starting point in the petrochemicals sector637, chemicals form the building blocks at every level of production and consumption in many industries. Therefore, only 25 percent of the chemical output goes directly to the consumer, which is the main reason for the industry’s relative invisibility638. The chemical industry is further highly fragmented with the top ten chemical firms accounting for only 18 percent of the total market639.

See Landau (1998), p. 1.

See Hofemann and Budde (2006), p. 1.

See Cefic(2006),p. 1.

See Leker and Herzog (2004), p. 1173; Hamelau (2004), p. 235.

The petrochemicals sector provides the major feedstocks — the educts — such as ethylene, propylene, benzene, styrene, vinyl chloride, acrylic acid etc., which are used for synthesizing a large range of industrial (organic) chemicals. See Runge (2006), p. 54.

See Arora, Landau and Rosenberg (1998), p. 6.

See Hofmann and Budde (2006), p. 5. In contrast to the chemical industry, other industrial sectors are much more concentrated. For example, the top ten firms in the automotive industry account for 85 percent of total market sales.

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(2008). Analysis and results. In: Open and Closed Innovation. Gabler. https://doi.org/10.1007/978-3-8349-8090-8_5

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