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A Count Data Model of Technology Adoption

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  • Faria, Ana
  • Fenn, Paul
  • Bruce, Alistair

Abstract

This paper investigates the main determinants of the adoption of flexible production technologies (FPTs), using a plant-level dataset of Portuguese manufacturing industry. Besides using a new dataset, this paper extends the framework of previous studies on technology adoption by taking into account the effect of demand uncertainty as an additional determinant of adoption. In order to examine this relationship, several econometric models for count data are estimated. These models deal with the discrete nature of the dependent variable and firm specific unobservable characteristics arising from the cross-section context. The main findings of the paper are: (i) rank effects and technological regimes are important determinants of technology adoption, as put forward in previous models of technology diffusion; (ii) demand uncertainty has a significant positive impact on the likelihood of adopting FPTs, which suggests that technological heterogeneity is important when modelling firms' investment decisions; (iii) the estimates were improved after controlling for excess zeros and overdispersion that characterizes our data. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Faria, Ana & Fenn, Paul & Bruce, Alistair, 2003. "A Count Data Model of Technology Adoption," The Journal of Technology Transfer, Springer, vol. 28(1), pages 63-79, January.
    • Handle: RePEc:kap:jtecht:v:28:y:2003:i:1:p:63-79
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    Cited by:

    1. Fındık, Derya & Tansel, Aysit, 2013. "Resources on the stage: a firm level analysis of the ict adoption in Turkey," MPRA Paper 65956, University Library of Munich, Germany, revised 05 Aug 2014.
    2. Natália Barbosa & Ana Faria, 2008. "Technology adoption: does labour skill matter? Evidence from Portuguese firm-level data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(2), pages 179-194, April.
    3. Bravo-Ureta, Boris E. & Cocchi, Horacio & Solís, Daniel, 2006. "Output Diversification among Small-Scale Hillside Farmers in El Salvador," IDB Publications (Working Papers) 3012, Inter-American Development Bank.
    4. Belanès, Amel & Saihi, Malek, 2016. "Evidence on complementarity and substitution contingency in monitoring and bonding mechanisms," Research in International Business and Finance, Elsevier, vol. 38(C), pages 161-171.
    5. Frey, Elaine F. & Mojtahedi, Saba, 2018. "The impact of solar subsidies on California's non-residential sector," Energy Policy, Elsevier, vol. 122(C), pages 27-35.
    6. Johannes Munz & Heinrich Schuele, 2022. "Influencing the Success of Precision Farming Technology Adoption—A Model-Based Investigation of Economic Success Factors in Small-Scale Agriculture," Agriculture, MDPI, vol. 12(11), pages 1-21, October.
    7. Gómez, Jaime & Vargas, Pilar, 2012. "Intangible resources and technology adoption in manufacturing firms," Research Policy, Elsevier, vol. 41(9), pages 1607-1619.
    8. Ferran Vendrell Herrero & José Luis González Pernía, 2010. "Does the intensity in R&D generate start-up’s growth?," Working Papers 2010R05, Orkestra - Basque Institute of Competitiveness.
    9. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
    10. Cristiano Antonelli, 2006. "Diffusion as a Process of Creative Adoption," The Journal of Technology Transfer, Springer, vol. 31(2), pages 211-226, March.
    11. Josè L. González-Pernia & Ferran Vendrell-Herrero, 2011. "Does the intensity in R&D generate start-up's growth?," ERSA conference papers ersa10p483, European Regional Science Association.
    12. Réjean Landry & Nabil Amara & Malek Saïhi, 2007. "Patenting and spin-off creation by Canadian researchers in engineering and life sciences," The Journal of Technology Transfer, Springer, vol. 32(3), pages 217-249, June.
    13. Fındık, Derya & Tansel, Aysit, 2013. "Resources on the stage: a firm level analysis of the ict adoption in Turkey," MPRA Paper 65956, University Library of Munich, Germany, revised 05 Aug 2014.

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