IDEAS home Printed from https://ideas.repec.org/p/van/wpaper/1103.html
   My bibliography  Save this paper

The Advantages of Association: Know-How Sharing and Innovation Adoption in Four Brazilian Cities

Author

Listed:
  • Isleide Zissimos

    (Department of Economics, Vanderbilt University)

Abstract

This paper investigates the role of social learning in the diffusion of different types of innovation in four urban areas of Brazil. A unique database of small sized firms in 19 economic sectors is used to show evidence that entrepreneurs who are members of trade associations (TAs) tend to adopt and diversify types of innovation more often than entrepreneurs who are not members. This is tested against two rival hypotheses. The first involves controls for human capital. The second controls for policy and institutional factors, and for internal characteristics of the firms. In both cases membership to TAs is significant. This set of results is robust across different specifications and in different subsamples. In addition, the urban areas where firms are located are also significant predictors of innovation adoption, which is consistent with the literature on geographic clusters of firms. Because membership of a TA can be endogenous, an instrumental variable is introduced.

Suggested Citation

  • Isleide Zissimos, 2011. "The Advantages of Association: Know-How Sharing and Innovation Adoption in Four Brazilian Cities," Vanderbilt University Department of Economics Working Papers 1103, Vanderbilt University Department of Economics.
    • Handle: RePEc:van:wpaper:1103
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/VUECON/vu11-w03.pdf
    File Function: First version, January 2011
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    2. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 489-530.
    3. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    4. Alla Lileeva & Daniel Trefler, 2010. "Improved Access to Foreign Markets Raises Plant-level Productivity…For Some Plants," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1051-1099.
    5. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    6. Timothy Besley & Anne Case, 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Working Papers 228, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    7. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    8. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    9. Schmitz, Hubert, 1982. "Growth constraints on small-scale manufacturing in developing countries: a critical review," World Development, Elsevier, vol. 10(6), pages 429-450, June.
    10. repec:pri:rpdevs:besley_case_diffusion is not listed on IDEAS
    11. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
    12. repec:pri:rpdevs:besley_case_diffusion.pdf is not listed on IDEAS
    13. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    14. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    15. Bruhn, Miriam & Love, Inessa, 2009. "The economic impact of banking the unbanked : evidence from Mexico," Policy Research Working Paper Series 4981, The World Bank.
    16. Timothy Besley & Anne Case, 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Working Papers 228, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sébastien MARCHAND & Huanxiu GUO, 2013. "Is participatory social learning a performance driver for Chinese smallholder farmers?," Working Papers 201318, CERDI.
    2. Fishman, Arthur & Fishman, Ram & Gneezy, Uri, 2019. "A tale of two food stands: Observational learning in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 101-108.
    3. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    4. Magnan, Nicholas & Spielman, David J. & Lybbert, Travis J. & Gulati, Kajal, 2015. "Leveling with friends: Social networks and Indian farmers' demand for a technology with heterogeneous benefits," Journal of Development Economics, Elsevier, vol. 116(C), pages 223-251.
    5. Khushbu Mishra & Abdoul G. Sam & Gracious M. Diiro & Mario J. Miranda, 2020. "Gender and the dynamics of technology adoption: Empirical evidence from a household‐level panel data," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 857-870, November.
    6. Elisabeth SADOULET, 2016. "Review of Theories of Learning for Adopting," Working Papers P163, FERDI.
    7. Christopher B. Busch & Colin Vance, 2011. "The Diffusion of Cattle Ranching and Deforestation: Prospects for a Hollow Frontier in Mexico’s Yucatán," Land Economics, University of Wisconsin Press, vol. 87(4), pages 682-698.
    8. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    9. Nicholas Magnan & David J Spielman & Travis J. Lybbert & Kajal Gulati, 2013. "Leveling with Friends: Social Networks and Indian Farmers’ Demand for Agricultural Custom Hire Services," Working Papers id:5591, eSocialSciences.
    10. KAMINSKI Jonathan & THOMAS Alban, 2009. "Commodity Reform and Extensive Production Growth: Evidence from Burkinabè cotton farmers," LERNA Working Papers 09.01.277, LERNA, University of Toulouse.
    11. Kaminski, Jonathan, 2008. "Changing Incentives to Sow Cotton for African Farmers: Evidence from the Burkina Faso Reform," Discussion Papers 45779, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    12. Yamauchi, Futoshi, 2007. "Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India," Journal of Development Economics, Elsevier, vol. 83(1), pages 37-62, May.
    13. Kondylis, Florence & Mueller, Valerie, 2012. "Seeing is Believing? Evidence from a Demonstration Plot Experiment in Mozambique," Mozambique Working Paper 1, International Food Policy Research Institute (IFPRI).
    14. Brambilla, Irene & Porto, Guido, 2005. "Farm Productivity and Market Structure: Evidence from Cotton Reforms in Zambia," Working Papers 5, Yale University, Department of Economics.
    15. Sylvain Dessy & Jacques Ewoudou & Isabelle Ouellet, 2006. "Understanding the Persistent Low Performance of African Agriculture," Cahiers de recherche 0622, CIRPEE.
    16. Francisco J. Buera & Alexander Monge‐Naranjo & Giorgio E. Primiceri, 2011. "Learning the Wealth of Nations," Econometrica, Econometric Society, vol. 79(1), pages 1-45, January.
    17. Fenske, James, 2013. "“Rubber will not keep in this country”: Failed development in Benin, 1897–1921," Explorations in Economic History, Elsevier, vol. 50(2), pages 316-333.
    18. Ayu Pratiwi & Aya Suzuki, 2017. "Effects of farmers’ social networks on knowledge acquisition: lessons from agricultural training in rural Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-23, December.
    19. Patrick Bayer & Randi Hjalmarsson & David Pozen, 2009. "Building Criminal Capital behind Bars: Peer Effects in Juvenile Corrections," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 105-147.

    More about this item

    Keywords

    Innovation adoption; know-how sharing; trade associations; small firms; developing country.;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:van:wpaper:1103. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: http://www.vanderbilt.edu/econ/wparchive/index.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.