The Role of Technological and Industrial Heterogeneity In Technology Diffusion: a Markovian Approach
Recent empirical studies have established the importance of intra and inter-industry heterogeneity in investment in innovation and other outcomes. This paper examines the role of industry and technology heterogeneity in the diffusion of advanced manufacturing technologies from a simple Markovian approach. Using the Maximum Entropy estimator, I estimate transition probabilities and corresponding half-lives, look for outliers in technology and industry diffusion patterns, and try to find explanations of their unusual behavior in idiosyncratic technology and industry characteristics. A consistent industry-level pattern that emerged is one that relates consumer demand and production processes. It seems that in industries where hand-made products are a sign of quality to the customer, technology spreads very slowly. On the other hand, in industries where demand for sophisticated, high-precision goods is high or in industries where demand-driven product specifications vary quite rapidly over relatively short periods of time, advanced technologies diffuse much more rapidly.
|Date of creation:||Feb 2003|
|Date of revision:|
|Contact details of provider:|| Postal: 4600 Silver Hill Road, Washington, DC 20233|
Phone: (301) 763-6460
Fax: (301) 763-5935
Web page: http://www.census.gov/ces
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert S. Pindyck, 1990.
"Irreversibility, Uncertainty, and Investment,"
NBER Working Papers
3307, National Bureau of Economic Research, Inc.
- Pindyck, Robert S., 1990. "Irreversibility, uncertainty, and investment," Working papers 3137-90., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Pindyck, Robert, 1989. "Irreversibility, uncertainty, and investment," Policy Research Working Paper Series 294, The World Bank.
- Rosenberg, Nathan, 1976. "On Technological Expectations," Economic Journal, Royal Economic Society, vol. 86(343), pages 523-35, September.
- Cukierman, Alex, 1980. "The Effects of Uncertainty on Investment under Risk Neutrality with Endogenous Information," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 462-75, June.
- Avinash Dixit, 1992. "Investment and Hysteresis," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 107-132, Winter.
- Weiss, Allen M, 1994. "The Effects of Expectations on Technology Adoption: Some Empirical Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 341-60, December.
- Ernst R. Berndt & Catherine J. Morrison & Larry S. Rosenblum, 1992.
"High-Tech Capital Formation and Labor Composition in U.S. Manufacturing Industries: An Exploratory Analysis,"
NBER Working Papers
4010, National Bureau of Economic Research, Inc.
- Berndt, Ernst R. & Morrison, Catherine J. & Rosenblum, Larry S., 1992. "High-tech capital formation and labor composition in U.S. manufacturing industries : an exploratory analysis," Working papers 3414-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Steve J. Davis & John Haltiwanger, 1991. "Wage Dispersion Between and Within U.S. Manufacturing Plants, 1963-1986," NBER Working Papers 3722, National Bureau of Economic Research, Inc.
- Jennifer F. Reinganum, 1981.
"Market Structure and the Diffusion of New Technology,"
Bell Journal of Economics,
The RAND Corporation, vol. 12(2), pages 618-624, Autumn.
- Reinganum, Jennifer F., . "Market Structure and the Diffusion of New Technology," Working Papers 360, California Institute of Technology, Division of the Humanities and Social Sciences.
- Stoneman, P, 1981. "Intra-Firm Diffusion, Bayesian Learning and Profitability," Economic Journal, Royal Economic Society, vol. 91(362), pages 375-88, June.
- Drew Fudenberg & Jean Tirole, 1985. "Preemption and Rent Equalization in the Adoption of New Technology," Review of Economic Studies, Oxford University Press, vol. 52(3), pages 383-401.
- Diansheng Dong & Atanu Saha, 1998. "He came, he saw, (and) he waited: an empirical analysis of inertia in technology adoption," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 893-905.
- Mark Doms & Timothy Dunne & Kenneth R. Troske, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 253-290.
When requesting a correction, please mention this item's handle: RePEc:cen:wpaper:03-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fariha Kamal)
If references are entirely missing, you can add them using this form.