Abstract
The focus of analysis in industrial organization has traditionally been on the largest firms comprising industries. However, a recent wave of studies has not only identified that small firms are playing an increased role in industrial markets, but that their economic function is distinct from that of larger enterprises. The purpose of this paper is to weave together these studies which, combined together, constitute a new learning with respect to the role of small firms in industrial markets. In particular, the role of small firms under static analysis in the industrial organization literature is contrasted to the dynamic role that emerges when viewed through a more evolutionary lens.
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