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Technological convergence and the connections between adoption, maintenance and investment activities

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  • Blanca MARTINEZ

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper explores the interactions between maintenance, adoption and investment activities when labor is heterogeneous. We consider that adoption activities are intensive in human capital whereas capital maintenance requires unskilled labor. Among the main results, we find that the optimal skilled and unskilled labor allocation are independently determined. Hence, maintenance (adoption) activities are not affected by changes in the efficiency of adoption (maintenance) parameters. We next simulate the model in order to study the convergence speed to the long run technological gap and the role of human capital in the process of catching-up.

Suggested Citation

  • Blanca MARTINEZ, 2002. "Technological convergence and the connections between adoption, maintenance and investment activities," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2002025
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2002-25.pdf
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    References listed on IDEAS

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    1. repec:kap:jeczfn:v:78:y:2003:i:1:d:10.1007_s00712-002-0554-9 is not listed on IDEAS
    2. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-583, August.
    3. Raouf BOUCEKKINE & Blanca MARTINEZ & Cagri SAGLAM, 2001. "Technology Adoption, Capital Maintenance and the Technological Gap," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2001033, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Paul S. Adler & Kim B. Clark, 1991. "Behind the Learning Curve: A Sketch of the Learning Process," Management Science, INFORMS, vol. 37(3), pages 267-281, March.
    5. Bond, Eric W. & Wang, Ping & Yip, Chong K., 1996. "A General Two-Sector Model of Endogenous Growth with Human and Physical Capital: Balanced Growth and Transitional Dynamics," Journal of Economic Theory, Elsevier, vol. 68(1), pages 149-173, January.
    6. Collard, Fabrice & Kollintzas, Tryphon, 2000. "Maintenance, Utilization, and Depreciation along the Business Cycle," CEPR Discussion Papers 2477, C.E.P.R. Discussion Papers.
    7. Raouf Boucekkine & Ramón Ruiz-Tamarit, 2003. "Capital Maintenance and Investment: Complements or Substitutes?," Journal of Economics, Springer, vol. 78(1), pages 1-28, January.
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    More about this item

    Keywords

    Technology adoption; Maintenance activities; Technological convergence;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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