Industry Evolution, Resilience, and Regional Embeddedness: The Case of the Danish Microbrewing Industry

An already ongoing build-up of excess capacity and increased competition in the Danish microbrewing industry has created a burgeon shakeout, which expects to accelerate with the Covid-19 crisis. This paper discusses which types of firms are likely to survive a shakeout. We collect and combine three different types of data for studying the Danish micro-brewing industry's evolution. We demonstrate that both a regional and local embeddedness of firms and the passion among owners and investors for the sector (and products) alter the pure economic rationality that generally, according to theoretical predictions, determines when firms survive industry shakeout.