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The Determinants of the Adoption Lag for Advanced Manufacturing Technologies

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Author Info
Baldwin, John R.
Raffiquzzaman, Mohammed

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Abstract

This paper examines the determinants of the adoption lag for advanced technologies in the Canadian manufacturing sector. It uses plant-level data collected on the length of the adoption lag (the time between a firm's first becoming aware of a new technology and its adoption of the technology) to examine the extent to which the adoption lag is a function of the benefits and costs associated with technology adoption as well as certain plant characteristics that are proxies for a plant's receptor capabilities. Economic theory suggests that the diffusion of advanced technologies should be a function of the benefits associated with the adoption of new technologies. Other studies have had to proxy the benefits with environmental characteristics-like proximity to markets, fertility of soils, size of firm. This paper makes use of more direct evidence collected from the 1993 Survey of Innovation and Advanced Technology concerning firms' own evaluations of the benefits and costs of adoption along with measures of overall technological competency. Both are found to be highly significant determinants of the adoption lag. Geographical nearness of suppliers decreases the adoption lag. Variables that have been previously used to proxy the benefits associated with technology adoption-variables such as larger firm size, younger age, and more diversification by the parent firm also decrease the adoption lag-but they have much less effect than the direct measure of benefits and firm competency.

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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 1998117e.

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Date of creation: 31 Aug 1998
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Handle: RePEc:stc:stcp3e:1998117e

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Keywords: Science and technology; Innovation;

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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.:
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    Other versions:
  3. 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)
  4. Timothy H. Hannan & John M. McDowell, 1984. "The Determinants of Technology Adoption: The Case of the Banking Firm," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 328-335, Autumn. [Downloadable!] (restricted)
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  7. Arcangeli, Fabio & Dosi, Giovanni & Moggi, Massimo, 1991. "Patterns of diffusion of electronics technologies: An international comparison with special reference to the Italian case," Research Policy, Elsevier, vol. 20(6), pages 515-529, December. [Downloadable!] (restricted)
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  14. Levin, Sharon G & Levin, Stanford L & Meisel, John B, 1987. "A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 12-17, February. [Downloadable!] (restricted)
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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. Parhi, Mamata, 2005. "Diffusion of New Technology in Indian Auto Component Industry: An Examination of the Determinants of Adoption," Discussion Papers 08, United Nations University, Institute for New Technologies. [Downloadable!]
  2. Heinz Hollenstein & Martin Woerter, 2004. "The Decision to Adopt Internet-based E-Commerce : An Empirical Analysis Based on Swiss Firm-level Data," KOF Working papers 04-89, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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