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INFRASTRUCTURAL DEVELOPMENT, SPILL-OVER EFFECTS AND THE STRATEGIC ADOPTION OF NEW TECHNOLOGIES IN THE LDCs

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Author Info
PINAKI BOSE
DIPANKAR PURKAYASTHA
Abstract

Firms in the LDCs need to adopt and indigenize transferred technology before usage. The adoption costs depend on the state of the infrastructure and on the localized spillover effects generated by a rival firm. In this context, the paper examines the timing of such technological adoption. It shows that strategic decisions regarding time may result in a "waiting game” where, in equilibrium, the efficient firm prefers to adopt after its less efficient rival, thus delaying the speed of technology transfer. The paper also shows that under certain conditions, technology transfer may not take place within the planning horizon. [01, L1, F1]

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Article provided by Korean International Economic Association in its journal International Economic Journal.

Volume (Year): 8 (1994)
Issue (Month): 4 (December)
Pages: 1-14
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Handle: RePEc:taf:intecj:v:8:y:1994:i:4:p:1-14

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  1. 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:
  2. Antle, John M, 1983. "Infrastructure and Aggregate Agricultural Productivity: International Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 31(3), pages 609-19, April.
  3. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February. [Downloadable!] (restricted)
  4. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 557-86, May. [Downloadable!] (restricted)
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  5. Justman, Moshe & Teubal, Morris, 1991. "A structuralist perspective on the role of technology in economic growth and development," World Development, Elsevier, vol. 19(9), pages 1167-1183, September. [Downloadable!] (restricted)
  6. 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)
  7. Halperin, Ariel & Teubal, Morris, 1991. "Government policy and capability- creating resources in economic growth," Journal of Development Economics, Elsevier, vol. 35(2), pages 219-241, April. [Downloadable!] (restricted)
  8. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September. [Downloadable!] (restricted)
  9. Ranis, Gustav, 1973. "Industrial Sector Labor Absorption," Economic Development and Cultural Change, University of Chicago Press, vol. 21(3), pages 387-408, April.
  10. Atkinson, Anthony B & Stiglitz, Joseph E, 1969. "A New View of Technological Change," Economic Journal, Royal Economic Society, vol. 79(315), pages 573-78, September. [Downloadable!] (restricted)
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