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Technology Adoption and the Emergence of Regional Asymmetries


  • Giovannetti, Emanuele


The model explains the emergence of asymmetric productive structures among regions based on adoption of a quality improving technology. Firms' products are differentiated both in location and quality, location is given. We characterize symmetric and asymmetric equilibria of the two stage game in price and adoption. Asymmetric equilibria display partial adoption frequencies and regular geographical patterns of adoptions. The asymmetry of the economy has, often, a reverse U-shaped relation with the innovation size. Market integration is an obstacle for the full adoption of the new technology and favours the emergence of regional asymmetries. Copyright 2000 by Blackwell Publishing Ltd

Suggested Citation

  • Giovannetti, Emanuele, 2000. "Technology Adoption and the Emergence of Regional Asymmetries," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 71-102, March.
  • Handle: RePEc:bla:jindec:v:48:y:2000:i:1:p:71-102

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    References listed on IDEAS

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    5. Maxwell, John W & Lyon, Thomas P & Hackett, Steven C, 2000. "Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 583-617, October.
    6. Ulrich Lehmann-Grube, 1997. "Strategic Choice of Quality When Quality is Costly: The Persistence of the High-Quality Advantage," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 372-384, Summer.
    7. Hansen, Lars Gårn, 1997. "Environmental Regulation through Voluntary Agreements," MPRA Paper 47537, University Library of Munich, Germany, revised 1999.
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    9. Boom, Anette, 1995. "Asymmetric International Minimum Quality Standards and Vertical Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 101-119, March.
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    Cited by:

    1. Enrico Santarelli, 2004. "Patents and the Technological Performance of District Firms Evidence for the Emilia-Romagna Region of Italy," Papers on Entrepreneurship, Growth and Public Policy 2004-29, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    2. Giovannetti, E. & Neuhoff, K. & Spagnolo, G., 2005. "Agglomeration in Internet Co-operation Peering Agreements," Cambridge Working Papers in Economics 0505, Faculty of Economics, University of Cambridge.
    3. Scaglione, Miriam & Giovannetti, Emanuele & Hamoudia, Mohsen, 2015. "The diffusion of mobile social networking: Exploring adoption externalities in four G7 countries," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1159-1170.
    4. Nazarczuk Jarosław M., 2015. "Regional distance: the concept and empirical evidence from Poland," Bulletin of Geography. Socio-economic Series, De Gruyter Open, vol. 28(28), pages 129-141, June.
    5. D'Ignazio, A. & Giovannetti, E., 2004. "From Exogenous to Endogenous Networks: Internet Applications," Cambridge Working Papers in Economics 0445, Faculty of Economics, University of Cambridge.

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