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The Diffusion of Complementary Technologies: An Empirical Test

Author

Listed:
  • Thomas B. Astebro

    (Joseph L. Rotman School of Management - University of Toronto)

  • Massimo G. Colombo

    (Department of Economics, Management and Industrial Engineering - POLIMI - Politecnico di Milano [Milan])

  • Raffaello Seri

Abstract

We analyze the simultaneous diffusion of multiple process technologies that are related. A new econometric model is used to examine the presence of complementarities, testing for strong one-step-ahead non-causality and strong simultaneous independence. Results indicate significant complementarities between CAD and CNC technologies. Prior adoption of either of the two technologies has a large effect on the posterior adoption of the other one; in addition, simultaneous adoption is found to be more likely than adoption of the two technologies in isolation. Consistent with the presence of complementarities, we also find evidence of substantial price cross-effects: a decrease in the price of CAD (or CNC) increases the adoption probability of CNC (or CAD). Lastly, the increase in the likelihood of adopting the complementary technology turns out to depend on several plant-specific moderating factors.

Suggested Citation

  • Thomas B. Astebro & Massimo G. Colombo & Raffaello Seri, 2009. "The Diffusion of Complementary Technologies: An Empirical Test," Working Papers hal-00655042, HAL.
    • Handle: RePEc:hal:wpaper:hal-00655042
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    Cited by:

    1. Susanna Mancinelli & Massimiliano Mazzanti, 2009. "Innovation, networking and complementarity: evidence on SME performances for a local economic system in North-Eastern Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 567-597, September.
    2. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Enviromental Innovations, Complementarity and Local/Global Cooperation," Working Papers 201104, University of Ferrara, Department of Economics.

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