Infant company protection in the German semi-synthetic fibre industry: Market power, technology, the Nazi government and the post-1945 world market

Scherner, Jonas and Spoerer, Mark (2023) Infant company protection in the German semi-synthetic fibre industry: Market power, technology, the Nazi government and the post-1945 world market. BUSINESS HISTORY, 65 (3). pp. 541-571. ISSN 0007-6791, 1743-7938

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Abstract

In the 1920 and early 1930s, the German semi-synthetic fibre industry was dominated by a duopoly of two big players. The incumbent firms were not willing to expand their staple fibre capacities to the extent demanded by the new Nazi government, which prepared for autarky and war. Hence the government encouraged other private companies, especially spinning mills, to found eight regional staple fibre plants and protected them against the incumbents who were technologically superior. The Nazis' infant company protection policy enabled the -newcomers to become competitive both in economic and technological terms within a few years. After the war and without protection, these firms flourished on the world market. While the big players left the market, two of the newcomers founded in the second half of the 1930s are today the last European producers of staple fibre. We analyse in detail why companies founded for protectionist reasons by a non-benign government became successful firms competing on the world market.

Item Type: Article
Uncontrolled Keywords: Infant company protection; man-made fibre; viscose; Nazi Germany
Subjects: 300 Social sciences > 330 Economics
900 History & geography > 940 General history of Europe
Divisions: Philosophy, Art History, History, and Humanities > Institut für Geschichte > Wirtschafts- und Sozialgeschichte - Prof. Dr. Mark Spoerer
Depositing User: Petra Gürster
Date Deposited: 09 Jan 2025 10:40
Last Modified: 09 Jan 2025 10:40
URI: https://pred.uni-regensburg.de/id/eprint/46723

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