Human Capital, Information, and the Early Adoption of New Technology
When producers are uncertain or have imperfect information about the profitability of adopting new technology, their adoption behavior depends on the endowment of human capital and the investment in adoption information. This study analyzes the role of education, experience, and information acquisition in the decision to be an early adopter. The findings support the hypothesis that adoption decision-making is a human capital intensive activity. The econometric evidence presented suggests that education and information reduce adoption costs and uncertainty, and thereby raise the probability of early adoption. Adoption behavior is also shown to vary significantly across firm size.