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Title: |
Infrastructural Development, Spill-over Effects and the Strategic
Adoption of New Technologies in the LDCs |
| Author: |
Bose, Pinaki;
Purkayastha, Dipankar |
| Author
Affiliation: |
SUNY, Cortland;
CA State U, Fullerton |
| Source: |
International Economic Journal, Winter 1994, v. 8, no. 4, pp. 1-14 |
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Publication Date: |
Winter 1994 |
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Abstract: |
Firms in the LDCs need to adopt and
indigenize transferred technology before usage. The adoption costs
depend on the state of the infrastructure and on the localized spillover
effects generated by a rival firm. In this context, the paper examines
the timing of such technological adoption. It shows that strategic
decisions regarding time may result in a "waiting game" where, in
equilibrium, the efficient firm prefers to adopt after its less
efficient rival, thus delaying the speed of technology transfer. The
paper also shows that under certain conditions, technology transfer may
not take place within the planning horizon. |
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