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The effect of financial constraints, absorptive capacity and complementarities on the adoption of multiple process technologies

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Author Info
Gomez, Jaime
Vargas, Pilar

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Abstract

This paper investigates the factors affecting the multiple adoption of new process technologies in manufacturing. We focus our attention on the effect of both financial resources and absorptive capacity on the decision to introduce the technology. We argue in favour of a negative effect of financial constraints and provide reasons for a differential effect of internal and external R&D on innovation adoption. Additionally, the methodology allows us to consider the possible complementarities arising when firms adopt several new process technologies. Our results show that financial constraints are dependent on the technology analyzed, whereas only internal R&D investments are strong predictors of adoption. We are also able to present evidence that the three technologies analyzed (numerically controlled machines, computer aided design and robotics) are, to some extent, complementary.

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File URL: http://www.sciencedirect.com/science/article/B6V77-4V38XP2-1/2/74d014ab4ad43a0ddded46db1b5c7905
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Publisher Info
Article provided by Elsevier in its journal Research Policy.

Volume (Year): 38 (2009)
Issue (Month): 1 (February)
Pages: 106-119
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Handle: RePEc:eee:respol:v:38:y:2009:i:1:p:106-119

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Related research
Keywords: Diffusion Adoption Process technologies Absorptive capacity Internal R& D;

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This page was last updated on 2009-11-7.


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