The intra-firm diffusion of new process technologies

Giuliana Battisti*, Paul Stoneman

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

The study of intra-firm diffusion has largely been neglected and the limited extant literature overwhelmingly relies upon uncertainty reduction via information spreading or epidemic learning as the main driver. In this paper, an alternative approach is taken whereby the intra-firm diffusion of new process technologies reflects the profitability of new technology adoption as proxied by firm characteristics. The approach is tested using data relating to the diffusion of Computer Numerically Controlled Machine tools within firms in the UK engineering and metalworking sectors. The empirical analysis does not reject the hypothesis that profitability considerations are important with a number of firm characteristics being isolated as of special relevance, including firm size and the use of complementary technologies and managerial techniques. However there is little support for the traditional epidemic effect.

Original languageEnglish
Pages (from-to)1-22
Number of pages22
JournalInternational Journal of Industrial Organization
Volume23
Issue number1-2
DOIs
Publication statusPublished - 1 Feb 2005

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Keywords

  • CNC
  • Innovation
  • Intra-firm diffusion
  • Technological change

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