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Upgrading traditional technologies in small-scale industrial clusters: producer-driven innovation adoption in Indonesia

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  • Sandee, Henry

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Rietveld, Piet

Abstract

This paper discusses processes of technological change in the tile cluster in the village Karanggeneng in Central Java, Indonesia. A growing number of producers in this cluster have switched from traditional kiln to so-called handpress production. We will analyze the processes of innovation adoption of the handpress technology in the cluster. Adoption of the handpress technology encompasses certain indivisibilities which require collaboration among producers to render innovation adoption profitable. We will discuss how pioneer adopters share information and stimulate social learning and adoption on the part of their neighbours, because simultaneous adoption of the handpress technology by groups of producers is needed in order to tackle the indivisibilities which pioneers are facing.

Suggested Citation

  • Sandee, Henry & Rietveld, Piet, 1997. "Upgrading traditional technologies in small-scale industrial clusters: producer-driven innovation adoption in Indonesia," Serie Research Memoranda 0032, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1997-32
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    References listed on IDEAS

    as
    1. Ellison, Glenn & Fudenberg, Drew, 1993. "Rules of Thumb for Social Learning," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 612-643, August.
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    More about this item

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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