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Innovation, learning and productivity improvement in developing countries : a dynamic model of technological adoption and industry evolution

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  • Asma Raies

    () (TEAM)

Abstract

This paper develops and analyses a dynamic model, which combines both the adoption and the industry evolution theories. We model the decision of adoption, learning entry and exit of firms. These decisions depend on the interaction of technology characteristics (effectiveness, machinery and information costs...) and other economic indicators (firm's size, technology capability, competition concentration, returns of scale...). We use the model's theoretical results to analyze simultaneously the effects on the structure and the average efficiency of the industry and to develop a framework for understanding the public policy action necessary to enhance adoption and average productivity.

Suggested Citation

  • Asma Raies, 2004. "Innovation, learning and productivity improvement in developing countries : a dynamic model of technological adoption and industry evolution," Cahiers de la Maison des Sciences Economiques bla04112, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:mse:wpsorb:bla04112
    as

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    File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/Bla04112.pdf
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    References listed on IDEAS

    as
    1. Vega-Redondo, Fernando, 1996. "Technological change and market structure: An evolutionary approach," International Journal of Industrial Organization, Elsevier, vol. 14(2), pages 203-226.
    2. Jensen, Richard, 1992. "Innovation Adoption and Welfare under Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 173-180, June.
    3. Acs, Zoltan J & Audretsch, David B, 1987. "Innovation, Market Structure, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 567-574, November.
    4. Gotz, Georg, 2000. "Strategic timing of adoption of new technologies under uncertainty: A note," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 369-379, February.
    5. Vettas, Nikolaos, 2000. "On entry, exit, and coordination with mixed strategies," European Economic Review, Elsevier, vol. 44(8), pages 1557-1576, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Technological adoption; learning; efficiency; entry and exit; industrial dynamics; evolution; developing countries.;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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