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Innovation, learning and productivity improvement in developing countries : a dynamic model of technological adoption and industry evolution

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  • Asma Raies

    ()
    (TEAM)

Abstract

This paper develops and analyses a dynamic model, which combines both the adoption and the industry evolution theories. We model the decision of adoption, learning entry and exit of firms. These decisions depend on the interaction of technology characteristics (effectiveness, machinery and information costs...) and other economic indicators (firm's size, technology capability, competition concentration, returns of scale...). We use the model's theoretical results to analyze simultaneously the effects on the structure and the average efficiency of the industry and to develop a framework for understanding the public policy action necessary to enhance adoption and average productivity.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/Bla04112.pdf
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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla04112.

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Length: 26 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:mse:wpsorb:bla04112

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Keywords: Technological adoption; learning; efficiency; entry and exit; industrial dynamics; evolution; developing countries.;

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  1. Vega-Redondo, Fernando, 1996. "Technological change and market structure: An evolutionary approach," International Journal of Industrial Organization, Elsevier, vol. 14(2), pages 203-226.
  2. Vettas, Nikolaos, 2000. "On entry, exit, and coordination with mixed strategies," European Economic Review, Elsevier, vol. 44(8), pages 1557-1576, August.
  3. Gotz, Georg, 2000. "Strategic timing of adoption of new technologies under uncertainty: A note," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 369-379, February.
  4. Jensen, Richard, 1992. "Innovation Adoption and Welfare under Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 173-80, June.
  5. Acs, Zoltan J & Audretsch, David B, 1987. "Innovation, Market Structure, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 567-74, November.
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