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Intra-plant diffusion of new technology: Role of productivity in the study of steel refining furnaces

  • Nakamura, Tsuyoshi
  • Ohashi, Hiroshi

This paper examines intra-plant diffusion of new technology in the Japanese steel industry. The introduction of the basic oxygen furnace (BOF) was the greatest breakthrough in steel refining in the last century. Using unique panel data, the paper estimates total factor productivity by technology type, and associates the estimates with intra-plant diffusion. The paper finds that intra-plant diffusion accounts for about a half of the industry productivity growth. Large plants are likely to adopt the new technology earlier, but retain the old technology longer, than their smaller counterparts.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 4 ()
Pages: 770-779

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Handle: RePEc:eee:respol:v:41:y:2012:i:4:p:770-779
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  1. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  2. Battisti, Giuliana & Stoneman, Paul, 2005. "The intra-firm diffusion of new process technologies," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 1-22, February.
  3. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  4. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  5. Jovanovic, Boyan & Lach, Saul, 1989. "Entry, Exit, and Diffusion with Learning by Doing," American Economic Review, American Economic Association, vol. 79(4), pages 690-99, September.
  6. Casey Ichniowski & Kathryn Shaw, 1999. "The Effects of Human Resource Management Systems on Economic Performance: An International Comparison of U.S. and Japanese Plants," Management Science, INFORMS, vol. 45(5), pages 704-721, May.
  7. Battisti, Giuliana & Stoneman, Paul, 2003. "Inter- and intra-firm effects in the diffusion of new process technology," Research Policy, Elsevier, vol. 32(9), pages 1641-1655, October.
  8. Battisti, Giuliana & Canepa, Alessandra & Stoneman, Paul, 2009. "e-Business usage across and within firms in the UK: profitability, externalities and policy," Research Policy, Elsevier, vol. 38(1), pages 133-143, February.
  9. Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, vol. 89(1), pages 78-102, March.
  10. Odagiri, Hiroyuki & Goto, Akira, 1996. "Technology and Industrial Development in Japan: Building Capabilities by Learning, Innovation and Public Policy," OUP Catalogue, Oxford University Press, number 9780198288022.
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