Technology adoption and the impact on average productivity

P.J.G.J. Hellegers, D. Zeng, D. Zilberman

    Research output: Contribution to journalArticleAcademicpeer-review

    4 Citations (Scopus)

    Abstract

    In this paper, a framework is developed to analyze how the specifications of new technologies and the heterogeneity of micro-units of production affect the input use, the adoption pattern, and the productivity of inputs. It shows that asset-productivity-enhancing (APE) technologies tend to be adopted by micro-units with high-quality assets, while variable-input, efficiency-enhancing (VIEE) technologies tend to be adopted by micro-units with low-quality assets. In both cases, the variable input productivity increases, but the average productivity of the fixed asset may decline in the case of the VIEE technology. The distribution of asset quality and the new technology specifications will therefore determine the impacts of production technology innovations on aggregate behavior and consequently the change in average productivity of the fixed asset.
    Original languageEnglish
    Pages (from-to)659-680
    JournalEconomics of Innovation and New Technology
    Volume20
    Issue number7
    DOIs
    Publication statusPublished - 2011

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