Diffusion of New Technology in Indian Auto Component Industry: An Examination of the Determinants of Adoption
The contribution of new technologies to economic growth is harnessed only when new technologies are widely diffused in the economy. Diffusion results from a series of individual decisions to introduce the new technologies, decisions being the result of a comparison of the uncertain benefits and costs associated with adoption. An understanding of the factors affecting this choice is therefore an essential step forward in order to study the diffusion process of new technologies. The aim of this paper is to provide a comprehensive understanding of the possible set of factors determining adoption of new technologies such as Advanced Manufacturing Techniques (AMTs) in the Indian auto component industry. Building on both the early ‘epidemic' and the later ‘equilibrium' theories of adoption, our analysis is purported to provide an empirical exploration of determinants of adoption that takes into account the influence of structural, (i.e., firm-specific), and socio-economic factors on the process of adoption. Our results, though confirms most of the theoretical and empirical predictions about technology adoption, provides new evidence on the importance of external sources of knowledge and the crucial role of demand side on the adoption process.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.merit.unu.edu/
More information through EDIRC
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.:
- Stoneman, P., 1980. "The rate of imitation, learning and profitability," Economics Letters, Elsevier, vol. 6(2), pages 179-183.
- Sarkar, Jayati, 1998. " Technological Diffusion: Alternative Theories and Historical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 131-76, April.
- Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Determinants of the Adoption Lag for Advanced Manufacturing Technologies," Analytical Studies Branch Research Paper Series 1998117e, Statistics Canada, Analytical Studies Branch.
- 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.
- Reinganum, Jennifer F, 1981.
"On the Diffusion of New Technology: A Game Theoretic Approach,"
Review of Economic Studies,
Wiley Blackwell, vol. 48(3), pages 395-405, July.
- Reinganum, Jennifer F., . "On the Diffusion of New Technology: A Game Theoretic Approach," Working Papers 312, California Institute of Technology, Division of the Humanities and Social Sciences.
- Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
- 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.
- Reinganum, Jennifer F., . "Market Structure and the Diffusion of New Technology," Working Papers 360, California Institute of Technology, Division of the Humanities and Social Sciences.
- Baptista, Rui, 2000. "Do innovations diffuse faster within geographical clusters?," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 515-535, April.
- Norman J. IRELAND & Paul L. STONEMAN, 1985. "Order Effects, Perfect Foresight and Intertemporal Price Discrimination," Discussion Papers (REL - Recherches Economiques de Louvain) 1985012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- 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.
- Eleonora Bartoloni & Maurizio Baussola, 2001. "The Determinants of Technology Adoption in Italian Manufacturing Industries," Review of Industrial Organization, Springer, vol. 19(3), pages 305-328, November.
- Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.
- Spyros Arvanitis & Heinz Hollenstein, 2001. "The Determinants Of The Adoption Of Advanced Manufacturing Technology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(5), pages 377-414.
When requesting a correction, please mention this item's handle: RePEc:unm:unuint:200508. 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: (Ad Notten)
If references are entirely missing, you can add them using this form.