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Technology adoption and the impact on average productivity


  • Petra Hellegers
  • Di Zeng
  • David Zilberman


In this paper, a framework is developed to analyze how the specifications of new technologies and the heterogeneity of micro-units of production affect the input use, the adoption pattern, and the productivity of inputs. It shows that asset-productivity-enhancing (APE) technologies tend to be adopted by micro-units with high-quality assets, while variable-input, efficiency-enhancing (VIEE) technologies tend to be adopted by micro-units with low-quality assets. In both cases, the variable input productivity increases, but the average productivity of the fixed asset may decline in the case of the VIEE technology. The distribution of asset quality and the new technology specifications will therefore determine the impacts of production technology innovations on aggregate behavior and consequently the change in average productivity of the fixed asset.

Suggested Citation

  • Petra Hellegers & Di Zeng & David Zilberman, 2011. "Technology adoption and the impact on average productivity," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(7), pages 659-680, September.
  • Handle: RePEc:taf:ecinnt:v:20:y:2011:i:7:p:659-680
    DOI: 10.1080/10438599.2010.523269

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    References listed on IDEAS

    1. Xabadia, Angels & Goetz, Renan U. & Zilberman, David, 2006. "Control of accumulating stock pollution by heterogeneous producers," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1105-1130, July.
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    Cited by:

    1. Liang Lu & Thomas Reardon & David Zilberman, 2016. "Supply Chain Design and Adoption of Indivisible Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1419-1431.

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