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Determinants Of Adoption Of Flexible Production Technologies: Evidence From Portuguese Manufacturing Industry

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Author Info
ANA FARIA
PAUL FENN
ALISTAIR BRUCE

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Abstract

This paper investigates the main determinants of adoption of flexible production technologies (FPTs), using a cross-section of Portuguese manufacturing firms. In order to investigate the determinants of adoption by Portuguese firms we estimate a probit model of technology adoption, where rank, location, industry and demand uncertainty effects are considered. The main findings are that: (i) plant heterogeneity is important in understanding differences in the likelihood of adoption; (ii) spillover effects resulting from geographical proximity foster adoption; (iii) differences in technological regimes across industries also play a role in the diffusion process; and (iv) demand uncertainty increases the likelihood of adoption of FPTs.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 11 (2002)
Issue (Month): 6 (January)
Pages: 569-580
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Handle: RePEc:taf:ecinnt:v:11:y:2002:i:6:p:569-580

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Related research
Keywords: Technology Adoption; Uncertainty; Probit Model;

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References listed on IDEAS
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.:
  1. Mansfield, Edwin, et al, 1977. "Social and Private Rates of Return from Industrial Innovations," The Quarterly Journal of Economics, MIT Press, vol. 91(2), pages 221-40, May. [Downloadable!] (restricted)
  2. Romeo, Anthony A, 1977. "The Rate of Imitation of a Capital-Embodied Process Innovation," Economica, London School of Economics and Political Science, vol. 44(173), pages 63-69, February. [Downloadable!] (restricted)
  3. Roller, Lars-Hendrik & Tombak, Mihkel M., 1991. "Strategic aspects of flexible production technologies: theory and evidence," International Journal of Production Economics, Elsevier, vol. 23(1-3), pages 197-204, October. [Downloadable!] (restricted)
  4. Taymaz, Erol, 1991. "Flexible automation in the U.S. engineering industries," International Journal of Industrial Organization, Elsevier, vol. 9(4), pages 557-572, December. [Downloadable!] (restricted)
  5. Stoneman, Paul & Kwon, Myung-Joong, 1994. "The Diffusion of Multiple Process Technologies," Economic Journal, Royal Economic Society, vol. 104(423), pages 420-31, March. [Downloadable!] (restricted)
  6. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June. [Downloadable!] (restricted)
  7. Timothy Dunne, 1994. "Plant Age and Technology Use in US. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 488-499, Autumn. [Downloadable!] (restricted)
  8. Link, Albert N. & Kapur, Puneet, 1994. "A note on the diffusion of flexible manufacturing systems technology," Economics Letters, Elsevier, vol. 46(4), pages 357-362, December. [Downloadable!] (restricted)
  9. Fudenberg, Drew & Tirole, Jean, 1985. "Preemption and Rent Equilization in the Adoption of New Technology," Review of Economic Studies, Blackwell Publishing, vol. 52(3), pages 383-401, July. [Downloadable!] (restricted)
  10. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  11. Luigi Guiso & Giuseppe Parigi, 1999. "Investment And Demand Uncertainty," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 185-227, February. [Downloadable!] (restricted)
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  12. Reinganum, Jennifer F, 1981. "On the Diffusion of New Technology: A Game Theoretic Approach," Review of Economic Studies, Blackwell Publishing, vol. 48(3), pages 395-405, July. [Downloadable!] (restricted)
    Other versions:
  13. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September. [Downloadable!] (restricted)
  14. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Blackwell Publishing, vol. 43(1), pages 13-48, March. [Downloadable!] (restricted)
  15. Alfred Kleinknecht & Tom Poot, 1992. "Do Regions Matter for R&D?," Regional Studies, Taylor and Francis Journals, vol. 26(3), pages 221-232, January. [Downloadable!] (restricted)
  16. Romeo, Anthony A, 1975. "Interindustry and Interfirm Differences in the Rate of Diffusion of an Innovation," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 311-19, August. [Downloadable!] (restricted)
  17. Ghosal, Vivek, 1991. "Demand Uncertainty and the Capital-Labor Ratio: Evidence from the U.S. Manufacturing Sector," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 157-61, February. [Downloadable!] (restricted)
  18. Chang, Myong-Hun, 1993. "Flexible Manufacturing, Uncertain Consumer Tastes, and Strategic Entry Deterrence," Journal of Industrial Economics, Blackwell Publishing, vol. 41(1), pages 77-90, March. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Carlos Carreira & Paulino Teixeira, 2007. "Internal and External Restructuring over the Cycle: A Firm-Based Analysis of Gross Flows and Productivity Growth in Portugal," GEMF Working Papers 2007-01, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
  2. A. Canepa & P. Stoneman, 2004. "Comparative international diffusion: Patterns, determinants and policies," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(3), pages 279-298, April. [Downloadable!] (restricted)
  3. Antonelli Cristiano, 2004. "Economics of localized technological change: a model of creative adoption," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200403, University of Turin. [Downloadable!]
  4. Natália Barbosa & Ana Faria, 2008. "Technology adoption: does labour skill matter? Evidence from Portuguese firm-level data," Empirica, Springer, vol. 35(2), pages 179-194, April. [Downloadable!] (restricted)
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