Before the corporation and mass production: the licensing regime in the manufacture of North American harvesting machinery, 1830-1910

• Published in: Annals of the Association of American Geographers 1995-09, Vol.85 (3), p.521-552
• Main Author: Winder, Gordon M.
• Format: Article
• Language: English
• Subjects: agricultural implements; Agricultural machinery; Bgi / Prodig; branch plant; Business structures; Capitalism; Contemporary times; corporation; Corporations; COSECHA; Crop harvesting; DISTRIBUCION GEOGRAFICA; DISTRIBUTION GEOGRAPHIQUE; EMPRESAS; ENTERPRISES; ENTREPRISE; EQUIPO DE LA EXPLOTACION AGRARIA; ETATS UNIS; EUA; FARM EQUIPMENT; Farm machinery; GEOGRAPHICAL DISTRIBUTION; HARVESTING; HISTOIRE; HISTORIA; Historical geography; Historical section; HISTORY; INDUSTRIA; industrial belt; Industrial development; Industrial history; Industrial market; Industrial production; INDUSTRIE; INDUSTRY; Industry profiles; LICENCES; LICENCIAS; license; Licensing; Machinery; Machinery industry; Mass production; MATERIEL DE FERME; North America; PERMIS; PROCESAMIENTO; PROCESSING; PRODUCCION; PRODUCTION; RECOLTE; strategic alliance; subcontract; Technological innovation; TRAITEMENT; U.S.A; USA
• ISSN: 0004-5608; 2469-4452; 1467-8306; 2469-4460
• DOI: 10.1111/j.1467-8306.1995.tb01811.x

Models of the spatial evolution of firms and accounts of the history of capitalism concentrate on ownership pattern and ignore linkages among firms. Often cited as a paragon of spatial and corporate concentration, the North American harvesting-machinery industry in 1860 displayed licensing agreements, strategic alliances, subcontracting relationships, international unions, branch plants, flexible production practices, and production for export markets. From 1860 to the mid-1880s production remained dispersed across the manufacturing belt. These findings are incongruent with evolutionary models of firm growth through vertical integration. By analyzing the origins, extent, structure, and implications of the licensing regime, the paper presents a revised model of firm growth and reinterprets the factors giving rise to industrial corporations. Corporations arose in this industry partly as a response to the problems inherent in licensing, and partly because mass production in the 1880s rendered licensing obsolete. The paper adds to our understanding of the North American industrial belt by describing business linkages which made a belt out of a series of fragmented industrial districts.