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Catching Up, Leapfrogging, or Forging Ahead? Exploring the Effects of Integration and History on Spatial Technological Adoptions

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  • Emanuele Giovannetti

    (Institute for International Management Practice, LAIBS, Anglia Ruskin University, East Road, Cambridge CB1 1PT, England; and DSE, University of Verona, Italy)

Abstract

This paper introduces a model of localised competition and technological adoption that produces interesting geographical adoption patterns: persistent asymmetry, where nobody adopts; leapfrogging where only followers adopt; forging ahead, where only leaders adopt; and catching up, where everybody adopts a new technology. I study the conditions leading to the emergence of these adoption patters to interpret the rich and growing empirical literature on intradistribution mobility across and within regions. I consider a set of linked markets characterised by asymmetric initial technological conditions. I show that these different spatial adoption patterns may provide an interesting reference for the debate on regional convergence, as adoption is an essential engine of growth. I also assess both the impact of integration policy and of historical asymmetries on these spatial adoption choices and find some counterintuitive results: for example, that integration policies may increase regional asymmetries instead of reducing them, depending on the relevance of the initial technology gap between neighbouring firms. The model does not assume different learning abilities or adoption costs between leaders and followers. Indeed, they can all adopt, for the same cost, a new technology leading to global catching up and convergence. Notwithstanding this possibility, the emerging spatial adoption patterns may still be asymmetric. The main parameters driving the results of the model are the relevance of the innovation; adoption costs; consumers' preferences for quality; the initial, historically inherited, technology quality asymmetries; and transport costs, expressing the degree of within-market competitiveness and differentiation.

Suggested Citation

  • Emanuele Giovannetti, 2013. "Catching Up, Leapfrogging, or Forging Ahead? Exploring the Effects of Integration and History on Spatial Technological Adoptions," Environment and Planning A, , vol. 45(4), pages 930-946, April.
    • Handle: RePEc:sae:envira:v:45:y:2013:i:4:p:930-946
    DOI: 10.1068/a4572
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
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    5. Kreps,David M. & Wallis,Kenneth F. (ed.), 1997. "Advances in Economics and Econometrics: Theory and Applications," Cambridge Books, Cambridge University Press, number 9780521589819.
    6. Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-1219, December.
    7. Kreps,David M. & Wallis,Kenneth F. (ed.), 1997. "Advances in Economics and Econometrics: Theory and Applications," Cambridge Books, Cambridge University Press, number 9780521589826.
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    Cited by:

    1. Emanuele Giovannetti & Claudio Piga, 2023. "The multifaceted nature of cooperation for innovation, ICT and innovative outcomes: evidence from UK Microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 639-666, September.
    2. Elena Trubina, 2019. "The urban commodity futures of the Olympics: Examining the multiscalar processes of the Games," Environment and Planning A, , vol. 51(8), pages 1703-1719, November.
    3. Scaglione, Miriam & Giovannetti, Emanuele & Hamoudia, Mohsen, 2015. "The diffusion of mobile social networking: Exploring adoption externalities in four G7 countries," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1159-1170.
    4. Emanuele Giovannetti & Mohsen Hamoudia, 2022. "The interaction between direct and indirect network externalities in the early diffusion of mobile social networking," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(4), pages 617-642, December.
    5. Giovannetti, Emanuele & Piga, Claudio A., 2017. "The contrasting effects of active and passive cooperation on innovation and productivity: Evidence from British local innovation networks," International Journal of Production Economics, Elsevier, vol. 187(C), pages 102-112.

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