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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

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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File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590214338
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Bibliographic Info

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

Volume (Year): 11 (2002)
Issue (Month): 6 ()
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;

References

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  1. Reinganum, Jennifer F, 1981. "On the Diffusion of New Technology: A Game Theoretic Approach," Review of Economic Studies, Wiley Blackwell, vol. 48(3), pages 395-405, July.
  2. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 13-48, March.
  3. 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.
  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.
  5. Paul Stoneman & Otto Toivanen, 1997. "The Diffusion Of Multiple Technologies: An Empirical Study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(1), pages 1-17.
  6. 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.
  7. 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.
  8. Chang, Myong-Hun, 1993. "Flexible Manufacturing, Uncertain Consumer Tastes, and Strategic Entry Deterrence," Journal of Industrial Economics, Wiley Blackwell, vol. 41(1), pages 77-90, March.
  9. 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.
  10. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September.
  11. 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.
  12. 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.
  13. 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.
  14. Guiso, L. & Parigi, G., 1996. "Investment and Demand Uncertainty," Papers 289, Banca Italia - Servizio di Studi.
  15. 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.
  16. Fudenberg, Drew & Tirole, Jean, 1985. "Preemption and Rent Equilization in the Adoption of New Technology," Review of Economic Studies, Wiley Blackwell, vol. 52(3), pages 383-401, July.
  17. Stoneman, Paul & Kwon, Myung-Joong, 1994. "The Diffusion of Multiple Process Technologies," Economic Journal, Royal Economic Society, vol. 104(423), pages 420-31, March.
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Citations

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Cited by:
  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.
  2. Kounetas, Kostas & Tsekouras, Kostas, 2008. "The energy efficiency paradox revisited through a partial observability approach," Energy Economics, Elsevier, vol. 30(5), pages 2517-2536, September.
  3. 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.
  4. Cristiano Antonelli, 2006. "Diffusion as a Process of Creative Adoption," The Journal of Technology Transfer, Springer, vol. 31(2), pages 211-226, 03.
  5. A. Canepa & P. Stoneman, 2004. "Comparative international diffusion: Patterns, determinants and policies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 279-298.

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