Industrial economics has a long empirical tradition. In order to contribute to it, this study provides new data on various facets of the internal dynamics of industries. It outlines the nature and the amount of dynamic change in an industry and describes how this change affects industry performance.

The evidence presented here tells us much about the competitive process. In doing so, it provides new insights and an improved understanding of phenomena that have long furnished the main fare for study in industrial economics.

New insights are provided into the way in which the various pieces of the various processes are put together. New data enable a more precise and comprehensive picture of the importance of entry and exit to be assembled. Both short- and long-run time periods are used to measure entry and exit. Facets of both greenfield and acquisition entry are described. The study also sets the process of entry and exit side by side with growth and decline in incumbent firms so that both their individual and their combined importance can be evaluated.

The study looks not just at the amount of turnover, but also at the effect of turnover on various measures of performance. It shows the relationship of turnover to productivity, efficiency, and profitability. By doing so, it confirms the importance of turnover and turnover measures. Together entry and exit along with growth and decline in the incumbent sector shift substantial amounts of market share from losers to gainers. Substantial productivity gains accompany this process.