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

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  • Gomez, Jaime
  • Vargas, Pilar

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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Bibliographic 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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Web page: http://www.elsevier.com/locate/respol

Related research

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

References

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Cited by:
  1. Hugo Pinto, 2011. "Knowledge Transfer in the Mirror: Reflections on the Determinants of Research Groups and Companies Collaborative Patterns within Andalusia's Regional Innovation System," ERSA conference papers ersa11p212, European Regional Science Association.
  2. Effelsberg, Martin, 2011. "Wissenstransfer in Innovationskooperationen: Ergebnisse einer Literaturstudie zur "Absorptive Capacity"," Arbeitspapiere 107, Westfälsche Wilhelms-Universität Münster (WWU), Institut für Genossenschaftswesen.

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