Patterns of Advanced Technology Adoption and Manufacturing Performance: Employment Growth, Labor Productivity, and Employee Earnings
Previous studies of the relationship between technology adoption and performance in U.S. manufacturing plants take the number of technologies in use as a measure of technological sophistication. These studies generally find a positive monotonic relationship between technology counts and employment growth and earnings and productivity levels among otherwise similar plants. However, the technology count approach masks potential differences in performance among plants that adopt the same number, but different combinations, of technologies. The present study advances earlier work by examining how plant performance is associated with specific technology combinations. The analysis yields several important insights. First, there is enormous diversity in technology adoption patterns. Second, specific technology combinations (e.g., computer aided design combined with numerically controlled machines vs. computer aided manufacturing combined with numerically controlled machines) generally have different degrees of association with plant performance, even among the plants that adopt the same number of technologies. Third, plants that integrate fabrication with assembly operations appear to use advanced technologies more effectively than those engaged in only fabrication or assembly.
|Date of creation:||01 Apr 1996|
|Date of revision:|
|Note:||Type of Document - MS Word; prepared on IBM PC; to print on HP LaserJet; pages: 38 ; figures: none|
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References listed on IDEAS
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- Robert H Mcguckin & Mary L Streitwieser & Mark E Doms, 1996.
"The Effect Of Technology Use On Productivity Growth,"
96-2, Center for Economic Studies, U.S. Census Bureau.
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NBER Working Papers
1906, National Bureau of Economic Research, Inc.
- Timothy Dunne & James A Schmitz Jr., 1992. "Wages, Employer Size-Wage Premia and Employment Structure: Their Relationship to Advanced-Technology Usage at U.S. Manufacturing Establishments," Working Papers 92-15, Center for Economic Studies, U.S. Census Bureau.
- Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
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CEP Discussion Papers
dp0219, Centre for Economic Performance, LSE.
- Mark Doms & Timothy Dunne & Kenneth R. Troske, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 253-290.
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