New technology and the economic organization of the clothing industry

The economic organization of an industry is ultimately determined by the cost functions of its component firms. In the clothing industry the costs of creating and implementing new designs is a further important factor affecting competition between firms. Since costs are largely determined by technology, we expect repercussions on the organization of the industry when technology changes. Application of the new information technologies in the clothing industry will encourage agglomerations by growth and by merger, with larger firms producing a wider range of products and introducing new products faster than hitherto. Trends in the geographic organization of production will also be reversed. -from Author