Adoption of advanced manufacturing technology and firm performance in the Netherlands

Eric Bartelsmans, George Leeuwen and Henry Nieuwenhuijsen
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Eric Bartelsmans: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 31, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: This paper presents characteristics of firms which employ advanced manufacturing tech-nology (AMT), explores the pattern of adoption of such technology, and traces the effects of adoption on the evolution of employment and productivity. The study uses linked firm-level data on production, factor inputs and on advanced manufacturing technology. It is found that the percentage of firms which employ advanced technology increases with higher labor productivity, higher export-sales ratios, and especially larger firm size. Corrected for interac-tions, however, only initial size and the capital-labor ratio in 1985 aid in predicting adoption of AMT. Conditional on adoption of AMT it is seen that intensity of advanced technology inputs decrease with firm size and with labor productivity. Finally, firms which employed AMT in 1992 show higher average growth rates of employment and of the capital-labor ratio between 1985 and 1991.

Date: 1995
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Journal Article: Adoption Of Advanced Manufacturing Technology And Firm Performance In The Netherlands (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:1995-31

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