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Adoption Of Advanced Manufacturing Technology And Firm Performance In The Netherlands

Author

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  • Eric Bartelsman
  • George Van Leeuwen
  • Henry Nieuwenhuijsen

Abstract

This paper presents characteristics of firms that employ advanced manufacturing technology (AMT), explores the pattern of adoption of such technology, and traces the effects of adoption on the evolution of employment and productivity. The study uses linked firm-level data on production, factor inputs and on advanced manufacturing technology. It is found that the percentage of firms that employ advanced technology increases with higher labor productivity, higher export-sales ratios, and especially larger firm sire. Corrected for interactions, however, only initial size and the initial capital-labor ratio aid in predicting adoption of AMT. Conditional on adoption of AMT it is seen that intensity of advanced technology inputs decrease with firm sire and with labar productivity. Finally, firms which employed AMT in 1992 show higher average growth rates of (toral factor) productivity and employment between 1985 and 1991.

Suggested Citation

  • Eric Bartelsman & George Van Leeuwen & Henry Nieuwenhuijsen, 1998. "Adoption Of Advanced Manufacturing Technology And Firm Performance In The Netherlands," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(4), pages 291-312.
    • Handle: RePEc:taf:ecinnt:v:6:y:1998:i:4:p:291-312
    DOI: 10.1080/10438599800000023
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    Cited by:

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    2. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    3. Jože P. Damijan & Črt Kostevc & Matija Rojec, 2011. "Innovation and Firms’ Productivity Growth in Slovenia: Sensitivity of Results to Sectoral Heterogeneity and to Estimation Method," Advances in Spatial Science, in: Peter Nijkamp & Iulia Siedschlag (ed.), Innovation, Growth and Competitiveness, chapter 0, pages 165-193, Springer.
    4. Bocquet, Rachel & Brossard, Olivier, 2007. "The variety of ICT adopters in the intra-firm diffusion process: Theoretical arguments and empirical evidence," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 409-437, December.
    5. Saba Firdousi, 2016. "Technology in the Sialkot Gloves Manufacturing Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 253-272, September.
    6. Christine Ngoc Ngo & Miao Chi, 2017. "Differentials in market constraints and value addition among micro, small, and medium enterprises in Vietnam," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    7. Brian P. Cozzarin, 2016. "Advanced technology, innovation, wages and productivity in the Canadian manufacturing sector," Applied Economics Letters, Taylor & Francis Journals, vol. 23(4), pages 243-249, March.
    8. Christine Ngoc Ngo & Miao Chi, 2017. "Differentials in market constraints and value addition among micro, small, and medium enterprises in Vietnam," WIDER Working Paper Series wp-2017-82, World Institute for Development Economic Research (UNU-WIDER).
    9. Mohnen, Pierre, 2019. "R&D, innovation and productivity," MERIT Working Papers 2019-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Anne Leahy & Joanne Loundes & Elizabeth Webster & Jongsay Yong, 2004. "Industrial Capabilities in Victoria," The Economic and Labour Relations Review, , vol. 15(1), pages 74-98, June.
    11. Bourke, Jane & Roper, Stephen, 2016. "AMT adoption and innovation: An investigation of dynamic and complementary effects," Technovation, Elsevier, vol. 55, pages 42-55.
    12. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
    13. Ndubuisi, Gideon & Avenyo, Elvis, 2018. "Estimating the effects of robotization on exports," MERIT Working Papers 2018-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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