The Advantages of Association: Know-How Sharing and Innovation Adoption in Four Brazilian Cities
This paper investigates the role of social learning in the diffusion of different types of innovation in four urban areas of Brazil. A unique dataset of small sized firms in 19 economic sectors is used to show evidence that entrepreneurs who are members of trade associations (TAs) tend to adopt different types of innovation more often than entrepreneurs who are not members. This is tested against two rival hypotheses. The first controls for human capital. The second controls for policy and institutional factors, and for internal characteristics of the firms. In both cases membership to TAs is significant. This set of results is robust across different specifications and in different subsamples. In addition, the urban areas where firms are located are also significant predictors of innovation adoption, which is consistent with the literature on geographic clusters of firms. Because TA membership may be endogenous, an instrumental variable is introduced.
Volume (Year): 4 (2015)
Issue (Month): 2 (December)
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- Oriana Bandiera & Imran Rasul, 2006.
"Social Networks and Technology Adoption in Northern Mozambique,"
Royal Economic Society, vol. 116(514), pages 869-902, October.
- Bandiera, Oriana & Rasul, Imran, 2002. "Social networks and technology adoption in Northern Mozambique," LSE Research Online Documents on Economics 3539, London School of Economics and Political Science, LSE Library.
- Oriana Bandiera & Imran Rasul, 2002. "Social Networks and Technology Adoption in Northern Mozambique," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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- Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
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