IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Role of Technological and Industrial Heterogeneity In Technology Diffusion: a Markovian Approach

  • Adela Luque
Registered author(s):

    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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: ftp://ftp2.census.gov/ces/wp/2003/CES-WP-03-07.pdf
    Download Restriction: no

    Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 03-07.

    as
    in new window

    Length:
    Date of creation: Feb 2003
    Date of revision:
    Handle: RePEc:cen:wpaper:03-07
    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
    Email:


    More information through EDIRC

    References listed on IDEAS
    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.:

    as in new window
    1. Stoneman, P, 1981. "Intra-Firm Diffusion, Bayesian Learning and Profitability," Economic Journal, Royal Economic Society, vol. 91(362), pages 375-88, June.
    2. 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.
    3. Pindyck, Robert, 1989. "Irreversibility, uncertainty, and investment," Policy Research Working Paper Series 294, The World Bank.
    4. Rosenberg, Nathan, 1976. "On Technological Expectations," Economic Journal, Royal Economic Society, vol. 86(343), pages 523-35, September.
    5. 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.
    6. 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.
    7. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
    8. 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.
    9. 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.
    10. Fudenberg, Drew & Tirole, Jean, 1985. "Preemption and Rent Equilization in the Adoption of New Technology," Review of Economic Studies, Wiley Blackwell, vol. 52(3), pages 383-401, July.
    11. Avinash Dixit, 1992. "Investment and Hysteresis," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 107-132, Winter.
    12. 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.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.