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The Leipzig Fur Industry As an Industrial District Collective Action, Lead Firms and World Market Transformation (1870-1939)

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The Leipzig Fur Industry As an Industrial District Collective Action, Lead Firms and World Market Transformation (1870-1939) The Leipzig Fur Industry as an Industrial District Collective Action, Lead Firms and World Market Transformation (1870-1939) Robrecht Declercq Thesis submitted for assessment with a view to obtaining the degree of Doctor of History and Civilization of the European University Institute Florence, 11.02. 2015 European University Institute Department of History and Civilization The Leipzig Fur Industry as an Industrial District Collective Action, Lead Firms and World Market Transformation (1870- 1939) Robrecht Declercq Thesis submitted for assessment with a view to obtaining the degree of Doctor of History and Civilization of the European University Institute Examining Board Prof. Dr. Heinz-Gerhard Haupt (EUI/Supervisor) Prof. Dr. Youssef Cassis (EUI/Second Reader) Prof. Dr. Eric Vanhaute (Ghent University/External Supervisor) Prof. Dr. Ray Stokes (University of Glasgow) © Declercq Robrecht, 2015 No part of this thesis may be copied, reproduced or transmitted without prior permission of the author Table of content Acknowledgments ...................................................................................................................... 9 1 Introduction: industrial districts and the outside world. ................................................... 11 1.1 Industrial districts as a capitalist and industrial alternative. ...................................... 13 1.1.1 The conceptual history of the industrial district (1922 – present). ..................... 13 1.1.2 Contributions and shortcomings of the ID concept ............................................ 16 1.2 From theory to practice: Saxony and the world. ....................................................... 21 1.2.1 Saxony and regional exceptionalism .................................................................. 21 1.3 Squaring the circle: Linking collective action into a commodity centred perspective. ................................................................................................................................... 26 1.3.1 The industrial district in the commodity chain. .................................................. 26 1.3.2 The commodity chain as a conceptual tool. ....................................................... 30 1.4 The industrial fur district in Leipzig and the outside world (1870-1939): collective action, lead firms, and world market transformation. .......................................................... 33 1.5 Ambitions and pitfalls. .............................................................................................. 38 1.6 Structure of the thesis. ............................................................................................... 40 PART I: The International Roots of the Leipzig Fur Industry (1850- 1914). ........................ 43 2 The Birth of an Industrial District. Local Entrenchment and World Market Orientations (1850-1914). ............................................................................................................................. 45 2.1 Introduction. .............................................................................................................. 45 2.2 Industry and Trade: The Local Tenets of the Fur District in Leipzig. ....................... 47 2.2.1 From artisans to industrialists. ........................................................................... 47 2.2.2 Industrialisation and the growth of the industrial district. ................................. 49 2.2.3 Turning merchants into businessmen (1830-1914). ........................................... 55 2.3 Patterns of local cooperation: specialisation, trade associations, and bank-firm relationships. ........................................................................................................................ 61 2.3.1 The symbiosis between manufacturing and international trade. ........................ 61 2.3.2 The social structure of the cluster: interest groups and trade associations. ........ 64 1 2.3.3 The local bank and fur industry nexus in Leipzig (1900-1914). ........................ 67 2.4 The changing structures of the world fur trade. ......................................................... 74 2.5 Leipzig on the world market. ..................................................................................... 79 2.5.1 Transnational entrepreneurship and eastern orientations. .................................. 79 2.5.2 Orientation to the American and French markets. ............................................. 84 2.5.3 Global competition and collective action. .......................................................... 87 2.5.4 Leipzig and the export business. ........................................................................ 89 2.6 Concluding remarks. .................................................................................................. 91 3 Transnational Entrepreneurship: The Connection between Leipzig and the Brussels Fur Industry (1880-1920). ............................................................................................................... 95 3.1 Transnational entrepreneurship and the industrial district. ....................................... 95 3.2 Furs and the conquest of a new sales market (1880-1900). ....................................... 99 3.3 An overview of German businesses in Brussels (1890-1914). ................................ 101 3.4 Transborder business networks and entrepreneurship. ............................................ 104 3.4.1 The influence of capital flows on entrepreneurship ......................................... 104 3.4.2 Transnational entrepreneurs as local actors. .................................................... 108 3.4.3 International dimensions of immigrant entrepreneurship. ............................... 111 3.5 Transnational entrepreneurs and internationalisation. ............................................. 113 3.6 Market saturation and the limits of immigrant entrepreneurship. ........................... 117 3.7 Conclusion. .............................................................................................................. 122 PART II: Lost Markets and Novel Products: The Creation of New Production Paradigms (1903- 1939). .......................................................................................................................... 125 4 Sheep Farming in South West Africa and the Leipzig Fur Industry (1900-1933). ........ 127 4.1 The fur industry and colonial design. ...................................................................... 127 4.2 The making of the German karakul industry (1903-1914). ..................................... 130 4.2.1 The limits of global trade and the prospects of agricultural science ................ 130 4.2.2 New partners: agricultural expertise and the fur industry. ............................... 133 4.2.3 Mendelian genetics as the handmaiden of the fur industry. ............................. 138 4.2.4 Further refinements to the production paradigm. ............................................. 144 4.3 Karakul farming, the South West African economy, and German revisionism (1914- 1939). ................................................................................................................................. 147 4.4 British competition in African karakul farming (1931-1939). ................................ 152 4.4.1 The Kalkfeld farmer cooperative. .................................................................... 153 4.4.2 Currency problems in Germany. ...................................................................... 156 4.4.3 Currency policy and the antagonism with Kalkfeld. ........................................ 158 4.5 Conclusion. .............................................................................................................. 161 5 The First World War as an External Shock: Resource Substitution and Collective Action (1914-1920) ............................................................................................................................ 165 5.1 Introduction. ............................................................................................................ 165 5.2 Rabbits, Leipzig, and the creation of the corporation War Fur ltd (1914-1917). .... 168 5.2.1 The origins of household rabbit keeping in Europe. ........................................ 168 5.2.2 Rabbit production and the creation of the War Fur ltd. ................................... 171 5.3 In the rabbit warren? Science, industry, and societal resistance in the making of the rabbit industry (1917-1920). .............................................................................................. 176 5.3.1 Resource substitution and rabbit skin procurement. ........................................ 176 5.3.2 War Fur ltd and scientific development. .......................................................... 179 5.3.3 The resistance against the War Fur corporation. .............................................. 183 5.3.4 The stabilisation and pacification of the rabbit skin market in the aftermath of the war. .......................................................................................................................... 185 5.3.5 The war corporation and science-industry collaboration between 1918 and 1920. .......................................................................................................................... 189 5.4 Restoring the old order. War, world markets, and local cohesion. .........................
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