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Countries have been shown to be competitive in specific industries. This paper contends that this industrial specialization can be understood in terms of an affinity between national 'models of capitalism' and the characteristics of industrial task environments. Put differently, industry-specific competitiveness is conceived to arise out of a fit between patterns of national business systems and patterns of industrial task environments. Specifically, the paper will propose a relationship between the communitarian or individualistic nature of national business systems and the organization-specificity of knowledge in an industry. More communitarian business systems are thought to enjoy a competitive advantage in industries with a high organization-specificity of knowledge, i.e. in industries that rely more on the long-term accumulation of organization-specific knowledge within tightly-knit corporate communities. More individualistic business systems, on the other hand, are thought to enjoy a competitive advantage in industries with a low organization-specificity of knowledge, i.e. in industries that thrive more on the speedy dissemination or reallocation of company-unspecific knowledge through a constant reconfiguration of social relationships. The paper will offer some illustrations of these proposed relationships in terms of the competitive profiles of the United States, Japan, Germany and Britain. [ABSTRACT FROM AUTHOR]

In this paper we explore the interrelationship between technological progress and the formation of industry-specific skills by analysing the evolution of the video-game industry in three countries: Japan, the United States, and the United Kingdom. We argue that the cross-sectoral transfer of skills occurs differently depending on national contexts, such as the social legitimacy and strength of preexisting industries, the socioeconomic status of entrepreneurs or pioneer firms in an emerging industry, and the sociocultural cohesiveness between the preexisting and emerging industries. Each country draws on a different set of creative resources, which results in a unique trajectory. Whereas Japan's video-game industry emerged out of corporate sponsorships in arcades, toys, and consumer electronics industries and drew skills from the comic book and animated-film sectors, the video-game industry in the United States evolved from arcades and personal computers. In the United Kingdom the video-game industry developed bottom-up, through a process of skills formation in the youth culture of `bedroom coders' that nurtured self-taught programmers in their teens throughout the country. [ABSTRACT FROM AUTHOR]