Determinants of adoption of flexible production technologies: Evidence from portuguese manufacturing industry

Ana Faria, Paul Fenn and Alistair Bruce

Economics of Innovation and New Technology, 2002, vol. 11, issue 6, 569-580

Abstract: This paper investigates the main determinants of adoption of flexible production technologies (FPTs), using a cross-section of Portuguese manufacturing firms. In order to investigate the determinants of adoption by Portuguese firms we estimate a probit model of technology adoption, where rank, location, industry and demand uncertainty effects are considered. The main findings are that: (i) plant heterogeneity is important in understanding differences in the likelihood of adoption; (ii) spillover effects resulting from geographical proximity foster adoption; (iii) differences in technological regimes across industries also play a role in the diffusion process; and (iv) demand uncertainty increases the likelihood of adoption of FPTs.

Keywords: Technology Adoption; Uncertainty; Probit Model (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (14)

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DOI: 10.1080/10438590214338

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