IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The Determinants of the Adoption Lag for Advanced Manufacturing Technologies

  • Baldwin, John R.
  • Raffiquzzaman, Mohammed

This paper examines the determinants of the adoption lag for advanced technologies in the Canadian manufacturing sector. It uses plant-level data collected on the length of the adoption lag (the time between a firm's first becoming aware of a new technology and its adoption of the technology) to examine the extent to which the adoption lag is a function of the benefits and costs associated with technology adoption as well as certain plant characteristics that are proxies for a plant's receptor capabilities. Economic theory suggests that the diffusion of advanced technologies should be a function of the benefits associated with the adoption of new technologies. Other studies have had to proxy the benefits with environmental characteristics-like proximity to markets, fertility of soils, size of firm. This paper makes use of more direct evidence collected from the 1993 Survey of Innovation and Advanced Technology concerning firms' own evaluations of the benefits and costs of adoption along with measures of overall technological competency. Both are found to be highly significant determinants of the adoption lag. Geographical nearness of suppliers decreases the adoption lag. Variables that have been previously used to proxy the benefits associated with technology adoption-variables such as larger firm size, younger age, and more diversification by the parent firm also decrease the adoption lag-but they have much less effect than the direct measure of benefits and firm competency.

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:
Download Restriction: no

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 1998117e.

in new window

Date of creation: 31 Aug 1998
Date of revision:
Handle: RePEc:stc:stcp3e:1998117e
Contact details of provider: Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
Web page:

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. Jennifer F. Reinganum, 1981. "On the Diffusion of New Technology: A Game Theoretic Approach," Review of Economic Studies, Oxford University Press, vol. 48(3), pages 395-405.
  2. Arcangeli, Fabio & Dosi, Giovanni & Moggi, Massimo, 1991. "Patterns of diffusion of electronics technologies: An international comparison with special reference to the Italian case," Research Policy, Elsevier, vol. 20(6), pages 515-529, December.
  3. Partha Dasgupta & Joseph Stiglitz, 1980. "Uncertainty, Industrial Structure, and the Speed of R&D," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 1-28, Spring.
  4. 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.
  5. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
  6. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
  7. Romeo, Anthony A, 1977. "The Rate of Imitation of a Capital-Embodied Process Innovation," Economica, London School of Economics and Political Science, vol. 44(173), pages 63-69, February.
  8. Taymaz, Erol, 1991. "Flexible Automation in the U.S. Engineering Industries," Working Paper Series 296, Research Institute of Industrial Economics.
  9. Lane, Sarah J, 1991. "The Determinants of Investment in New Technology," American Economic Review, American Economic Association, vol. 81(2), pages 262-65, May.
  10. Ravenscraft, David J, 1983. "Structure-Profit Relationships at the Line of Business and Industry Level," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 22-31, February.
  11. Levin, Sharon G & Levin, Stanford L & Meisel, John B, 1987. "A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 12-17, February.
  12. Lindner, R. & Fischer, A. & Pardey, P., 1979. "The time to adoption," Economics Letters, Elsevier, vol. 2(2), pages 187-190.
  13. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
  14. Jensen, Richard, 1982. "Adoption and diffusion of an innovation of uncertain profitability," Journal of Economic Theory, Elsevier, vol. 27(1), pages 182-193, June.
  15. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
  16. Romeo, Anthony A, 1975. "Interindustry and Interfirm Differences in the Rate of Diffusion of an Innovation," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 311-19, August.
  17. Garth Saloner & Andrea Shepard, 1995. "Adoption of Technologies with Network Effects: An Empirical Examination of the Adoption of Teller Machines," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 479-501, Autumn.
  18. Richard E. Caves, 1992. "Industrial Efficiency in Six Nations," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031930, June.
  19. Jensen, Richard, 1983. "Innovation adoption and diffusion when there are competing innovations," Journal of Economic Theory, Elsevier, vol. 29(1), pages 161-171, February.
  20. Majumdar, Sumit K. & Venkataraman, S., 1993. "New technology adoption in US telecommunications: The role of competitive pressures and firm-level inducements," Research Policy, Elsevier, vol. 22(5-6), pages 521-536, November.
  21. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 13-48, March.
  22. 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.
  23. Mookherjee, Dilip & Ray, Debraj, 1991. "On the competitive pressure created by the diffusion of innovations," Journal of Economic Theory, Elsevier, vol. 54(1), pages 124-147, June.
  24. Hannan, Timothy H & McDowell, John M, 1987. "Rival Precedence and the Dynamics of Technology Adoption: An Empirical Analysis," Economica, London School of Economics and Political Science, vol. 54(214), pages 155-71, May.
  25. Stoneman, P, 1981. "Intra-Firm Diffusion, Bayesian Learning and Profitability," Economic Journal, Royal Economic Society, vol. 91(362), pages 375-88, June.
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:stc:stcp3e:1998117e. 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: (Mark Brown)

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.