Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies

Abstract

This paper concentrates on the contextual diffusion of flexible automation production and design/engineering technologies in the Italian metalworking industry. The authors use duration data analysis with explanatory covariates to point out the role of complementarities between the technologies examined and learning by using effects matured with experience of previously available technologies in shaping diffusion paths. The impact of industry- and plant-specific control variables, as well as that of the stock of previous adopters, on adoption probabilities is also taken into account. In addition, the authors analyze duration versus calendar time dependence of adoption probabilities. Copyright 1995 by Blackwell Publishing Ltd.