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Technology adoption, training and productivity performance

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  • Boothby, Daniel
  • Dufour, Anik
  • Tang, Jianmin
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    Abstract

    Advanced technologies are commonly thought to be complementary to skills. Firms that adopt new technologies (for example, computer-aided design and control) and at the same time invest in skills (for example, training in computer literacy and technical skills) are expected to realize greater productivity gains than those that do not. To validate this expectation, this paper first identifies the combinations of technologies and types of training that are commonly undertaken by firms, presumably as part of their strategies to effectively utilize the adopted technologies and to improve their economic performance. This paper then estimates the relationship between these common technology-training combinations and productivity performance. It shows that these combinations are associated with higher productivity.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 39 (2010)
    Issue (Month): 5 (June)
    Pages: 650-661

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    Handle: RePEc:eee:respol:v:39:y:2010:i:5:p:650-661

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

    Related research

    Keywords: Technology adoption Training Productivity;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Jianmin Tang & Weimin Wang, 2005. "Product Market Competition, Skill Shortages and Productivity: Evidence from Canadian Manufacturing Firms," Journal of Productivity Analysis, Springer, vol. 23(3), pages 317-339, 07.
    2. Godin, Benoit, 2004. "The New Economy: what the concept owes to the OECD," Research Policy, Elsevier, vol. 33(5), pages 679-690, July.
    3. Sabourin, David & Baldwin, John R., 2004. "The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector," Economic Analysis (EA) Research Paper Series 2004020e, Statistics Canada, Analytical Studies Branch.
    4. Beiling Yan, 2006. "Demand for skills in Canada: the role of foreign outsourcing and information-communication technology," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 53-67, February.
    5. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," CEP Discussion Papers dp0674, Centre for Economic Performance, LSE.
    6. Sandra E. Black & Lisa M. Lynch, 2003. "What's driving the new economy?: the benefits of workplace innovation," Working Paper Series 2003-23, Federal Reserve Bank of San Francisco.
    7. Sabourin, David & Baldwin, John R., 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch.
    8. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
    9. Bee Yan Aw & Mark J. Roberts & Tor Winston, 2007. "Export Market Participation, Investments in R&D and Worker Training, and the Evolution of Firm Productivity," The World Economy, Wiley Blackwell, vol. 30(1), pages 83-104, 01.
    10. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
    11. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1351-1408, November.
    12. Ann Bartel & Casey Ichniowski & Kathryn Shaw, 2007. "How Does Information Technology Affect Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement, and Worker Skills," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1721-1758, November.
    13. Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-56, February.
    14. Monojit Chatterji & Catia Montagna, 2008. "A note on export-platform Foreign Direct Investment, training and absorptive capacity," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(2), pages 323-332.
    15. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
    16. John R. Baldwin & Ron S. Jarmin & Jianmin Tang, 2004. "Small North American Producers Give Ground in the 1990s," Small Business Economics, Springer, vol. 23(4), pages 349-361, November.
    17. Ramachandran, Vijaya, 1993. "Technology Transfer, Firm Ownership, and Investment in Human Capital," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 664-70, November.
    18. R. Antonietti, 2005. "The role of general and firm-specific training for new technology adoption and economic growth: a critical review," Working Papers 538, Dipartimento Scienze Economiche, Universita' di Bologna.
    19. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
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    Cited by:
    1. Maria del Sorbo & Fernando Hervás Soriano, 2013. "Mind the Science and Technology Skills Gap," JRC-IPTS Working Papers JRC83766, Institute for Prospective and Technological Studies, Joint Research Centre.

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