Infant company protection in the German semi-synthetic fibre industry: Market power, technology, the Nazi government and the post-1945 world market

In the 1920 and early 1930s, German semi-synthetic fibre industry was dominated by a duopoly of two big players. The incumbent firms were not willing to expand their staple capacities extent demanded new Nazi government, which prepared for autarky war. Hence government encouraged other private companies, especially spinning mills, found eight regional plants protected them against incumbents who technologically superior. Nazis’ infant company protection policy enabled ­newcomers become competitive both in economic technological terms within few years. After war without protection, these flourished on world market. While players left market, newcomers founded second half 1930s are today last European producers fibre. We analyse detail why companies protectionist reasons non-benign became successful competing