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Technology Adoption and the Investment Climate: Firm-Level Evidence for Eastern Europe and Central Asia

Author

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  • Paulo G. Correa
  • Ana M. Fernandes
  • Chris J. Uregian

Abstract

Survey data for 7,000 firms in 28 countries in Eastern Europe and Central Asia are used to examine the correlates of technology adoption proxied by ISO certification and web use. Complementary inputs such as skilled labor, managerial capacity, research and development, finance, and good infrastructure are shown to be important correlates of technology adoption. The link between market incentives and technology adoption is more nuanced. While stronger consumer pressure is significantly associated with technology adoption, competitor pressure is not, suggesting that in developing economies where many input markets are imperfect, it is primarily firms with rents that are able to adopt new technology. Foreign-owned firms exhibit significantly better technology adoption outcomes, but privatized firms with domestic owners do not. Copyright The Author 2010. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank . All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Paulo G. Correa & Ana M. Fernandes & Chris J. Uregian, 2010. "Technology Adoption and the Investment Climate: Firm-Level Evidence for Eastern Europe and Central Asia," The World Bank Economic Review, World Bank, vol. 24(1), pages 121-147, January.
    • Handle: RePEc:oup:wbecrv:v:24:y:2010:i:1:p:121-147
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    1. Mohamed Chaffai & Patrick Plane, 2017. "Firm Productivity, Technology and Export Status, What Can We Learn from Egyptian Industries?," Working Papers 1134, Economic Research Forum, revised 09 Jun 2017.
    2. Zoo, Hanah & de Vries, Henk J. & Lee, Heejin, 2017. "Interplay of innovation and standardization: Exploring the relevance in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 334-348.
    3. Herzfeld, Thomas & Drescher, Larissa S. & Grebitus, Carola, 2011. "Cross-national adoption of private food quality standards," Food Policy, Elsevier, vol. 36(3), pages 401-411, June.
    4. Crinò, Rosario, 2012. "Imported inputs and skill upgrading," Labour Economics, Elsevier, vol. 19(6), pages 957-969.
    5. Schiff, Maurice & Wang, Yanling, 2017. "North-South Trade, Technology Diffusion and Productivity Growth: Are Small States Different?," GLO Discussion Paper Series 79, Global Labor Organization (GLO).
    6. Mughal, Mazhar & Diawara, Barassou, 2011. "Human capital and the adoption of information and communications technologies: Evidence from investment climate survey of Pakistan," Economics Discussion Papers 2011-21, Kiel Institute for the World Economy.
    7. Schiff, Maurice & Wang, Yanling, 2017. "Trade, Education, Governance and Distance: Impact on Technology Diffusion and Productivity Growth in Asia and LAC," GLO Discussion Paper Series 72, Global Labor Organization (GLO).
    8. Juan A. Martínez-Román & Isidoro Romero, 2017. "Determinants of innovativeness in SMEs: disentangling core innovation and technology adoption capabilities," Review of Managerial Science, Springer, vol. 11(3), pages 543-569, July.
    9. Ursula Fritsch & Holger Görg, 2015. "Outsourcing, Importing and Innovation: Evidence from Firm-level Data for Emerging Economies," Review of International Economics, Wiley Blackwell, vol. 23(4), pages 687-714, September.
    10. Görg, Holger & Fritsch, Ursula, 2013. "Outsourcing, Offshoring and Innovation: Evidence from Firm-level Data for Emerging Economies," CEPR Discussion Papers 9603, C.E.P.R. Discussion Papers.
    11. Anderson John E. & Toshmatova Muazzam, 2024. "Infrastructure System Obstacles and Technology Adoption by Firms in Transition Countries," Comparative Southeast European Studies, De Gruyter, vol. 72(1), pages 104-134, March.
    12. Abderazak Bakhouche, 2022. "Assessing the Innovation-finance Nexus for SMEs: Evidence from the Arab Region (MENA)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1875-1895, September.
    13. Martínez-Román, Juan A. & Gamero, Javier & Tamayo, Juan A. & Delgado-González, Loreto, 2020. "Empirical analysis of organizational archetypes based on generation and adoption of knowledge and technologies," Technovation, Elsevier, vol. 96.
    14. Klaus Friesenbichler, 2014. "EU Accession, Domestic Market Competition and Total Factor Productivity. Firm Level Evidence," WIFO Working Papers 492, WIFO.
    15. Klaus S. Friesenbichler, 2020. "Does EU-accession affect domestic market structures and firm level productivity?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 343-364, May.
    16. World Bank, 2011. "Russia : Reshaping Economic Geography," World Bank Publications - Reports 13052, The World Bank Group.
    17. Xu, Jian & Liu, Yu & Abdoh, Hussein, 2022. "Foreign ownership and productivity," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 624-642.
    18. Mohamed Kossaï & Maria Luiza Lapa Souza & Younes Ben Zaied & Pascal Nguyen, 2020. "Determinants of the Adoption of Information and Communication Technologies (ICTs): the Case of Tunisian Electrical and Electronics Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 845-864, September.
    19. Suh, Joong hae, 2015. "Adoption of Foreign Technologies in Korean Manufacturing Firms: Characteristics and Microfoundations," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 37(3), pages 75-106.
    20. Radu Herman & Cornelia Nistor & Nicolae Marius Jula, 2023. "The Influence of the Increase in Energy Prices on the Profitability of Companies in the European Union," Sustainability, MDPI, vol. 15(21), pages 1-16, October.
    21. repec:lic:licosd:33113 is not listed on IDEAS
    22. Maurice Schiff & Yanling Wang, 2013. "North--South Trade-related Technology Diffusion and Productivity Growth: Are Small States Different?," International Economic Journal, Taylor & Francis Journals, vol. 27(3), pages 399-414, September.
    23. Foster-McGregor, Neil & Kaulich, Florian & Stehrer, Robert, 2015. "Global Value Chains in Africa," MERIT Working Papers 2015-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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