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The Diffusion of Innovation among Steel Firms: The Basic Oxygen Furnace

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Author Info
Sharon Oster
Abstract

The major innovation in the steel industry in the post-World War II period has been the replacement of the open hearth furnace by the basic oxygen furnace. This article examines the diffusion of this important innovation at a more micro level than previous studies by focusing on plant behavior. Wide differences in the characteristics of the plants owned by a particular firm make this focus more appropriate. Using data from several large firms in the industry, estimates are first provided of the productivity of the basic oxygen furnace. Then, differences among plants and firms in the rate of adoption of the basic oxygen furnace are given and the causes of these differences are explored. The major finding of this article is that differences among firms in the rate of adoption of the basic oxygen furnaces are attributable both to the characteristics of the adopting plants that determine the profitability of this innovation and to the size of the firm.

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Publisher Info
Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 13 (1982)
Issue (Month): 1 (Spring)
Pages: 45-56
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Handle: RePEc:rje:bellje:v:13:y:1982:i:spring:p:45-56

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  1. Roberto Fuentes & Rubén Hernández-Murillo & Gerard Llobet, 2007. "Strategic online-banking adoption," Working Papers 2006-058, Federal Reserve Bank of St. Louis. [Downloadable!]
  2. Kerr, Suzi & Newell, Richard, 2001. "Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Discussion Papers dp-01-14, Resources For the Future. [Downloadable!]
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  3. Emin M. Dinlersoz & Rubén Hernández-Murillo, 2004. "The diffusion of electronic business in the U.S," Working Papers 2004-009, Federal Reserve Bank of St. Louis. [Downloadable!]
  4. Susan Helper, 1995. "Supplier Relations and Adoption of New Technology: Results of Survey Research in the U.S. Auto Industry," NBER Working Papers 5278, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. David Popp, 2003. "Lessons from Patents: Using Patents To Measure Technological Change in Environmental Models," NBER Working Papers 9978, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Nancy L. Rose & Paul L. Joskow, 1988. "The Diffusion of New Technologies: Evidence From the Electric Utility Industry," NBER Working Papers 2676, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "Les facteurs déterminants des retards en matière d'adoption des technologies de fabrication de pointe," Direction des études analytiques : documents de recherche 1998117f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  8. Jalal Akhavein & W. Scott Frame & Lawrence J. White, 2001. "The diffusion of financial innovations: an examination of the adoption of small business credit scoring by large banking organizations," Working Paper 2001-9, Federal Reserve Bank of Atlanta. [Downloadable!]
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  9. David Popp, 2006. "Exploring Links Between Innovation and Diffusion: Adoption of NOx Control Technologies at U.S. Coal-Fired Power Plants," NBER Working Papers 12119, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Tsuyoshi Nakamura & Hiroshi Ohashi, 2005. "Technology Adoption, Learning by Doing, and Productivity: A Study of Steel Refining Furnaces," CIRJE F-Series CIRJE-F-368, CIRJE, Faculty of Economics, University of Tokyo. [Downloadable!]
  11. Blackman, Allen, 1999. "The Economics of Technology Diffusion: Implications for Climate Policy in Developing Countries," Discussion Papers dp-99-42, Resources For the Future. [Downloadable!]
  12. Dijk van, M. & Szirmai, A., 2005. "Industrial Policy and Technology Diffusion: Evidence from Paper Making Machinery in Indonesia," ECIS Working Papers 05.15, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
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  13. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Determinants of the Adoption Lag for Advanced Manufacturing Technologies," Analytical Studies Branch Research Paper Series 1998117e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  14. Rodolfo Manuelli & Ananth Seshadri, 2003. "Frictionless Technology Diffusion: The Case of Tractors," NBER Working Papers 9604, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Meredith A. Crowley, 2002. "Do safeguard tariffs and antidumping duties open or close technology gaps?," Working Paper Series WP-02-13, Federal Reserve Bank of Chicago. [Downloadable!]
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  16. Jalal Akhavein & W. Scott Frame & Lawrence J. White, 2001. "The Diffusion of Financial Innovations: An Examination of the Adoption of Small Business Credit Scoring By Large Banking Organizations," Working Papers 01-08, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
  17. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 6(1), pages 107-129, February. [Downloadable!] (restricted)
  18. Pizer, William & Kopp, Raymond & Morgenstern, Richard & Harrington, Winston & Shih, Jhih-Shyang, 2002. "Technology Adoption and Aggregate Energy Efficiency," Discussion Papers dp-02-52, Resources For the Future. [Downloadable!]
  19. Bruce A. Blonigen & Wesley W. Wilson, 2005. "Foreign Subsidization and Excess Capacity," NBER Working Papers 11798, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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