Innovation System Effects on Technological Adoption in a Regional Value Chain

Abstract

This paper examines the technology adoption rates of a sample of enterprises that are nominally members of the transportation equipment value chain. We utilize the regional innovation system (RIS) concept to identify and test key regional and corporate influences on technology adoption. Using data collected from a detailed survey instrument, our analysis considers adoption rates during the very period in which production equipment technologies are known to have grown very suddenly, i.e. the fourth quarter of 1994. Our findings indicate that the most important RIS factors are related to worker training and information spillover effects between proximate firms. In the main, our findings are supportive of policies that work indirectly through the market structure of regional economies and a firm's value-chain, as opposed to directly through regional technology agencies.