Technology Adoption And The Investment Climate: Firm-Level Evidence For Eastern Europe And Central Asia

Abstract

Survey data for 7,000 firms in 28 countries in Eastern Europe and Central Asia are used to examine the correlates of technology adoption proxied by ISO certification and web use. Complementary inputs such as skilled labor, managerial capacity, research and development, finance, and good infrastructure are shown to be important correlates of technology adoption. The link between market incentives and technology adoption is more nuanced. While stronger consumer pressure is significantly associated with technology adoption, competitor pressure is not, suggesting that in developing economies where many input markets are imperfect, it is primarily firms with rents that are able to adopt new technology. Foreign-owned firms exhibit significantly better technology adoption outcomes, but privatized firms with domestic owners do not. JEL codes: F1, F2, O3

Human Capital and the Adoption of Information and Communications Technologies: Evidence from Investment Climate Survey of Pakistan

“…Managers' education clearly influences the probability of website and email use in the firm but not the percentage of workers using a computer and the proportion of computer-controlled production. This is in line with the findings of Correa, Fernandes and Uregian (2010), who find that firms in East Europe and Central Asia run by managers with a college or postgraduate degree in 2002 are almost 23 percent more likely to use the web, all else held constant. Diawara and Mughal (2010) also find support for an important role of managerial education in the adoption and use of ICT in Senegal.…”

“…This suggests that the higher the financial capability of the firm, the higher will be the probability that it uses websites and emails in its interactions with suppliers and customers. This result is similar to the one obtained by Correa, Fernandes and Uregian (2010), who find that East European and Central Asian firms with smaller market shares are significantly less likely to use the web.…”

“…Small firms, even if well-aware of the importance and potential gains from the ICT, often lack the financial muscles to bear the initial cost of new technology adoption. Firm size is likewise found to be important in ICT adoption in studies such as Giunta and Trivieri (2007) and Correa, Fernandes and Uregian (2010).…”

Cross-national adoption of private food quality standards

“…However, theory provides no clear hypothesis on this causal relationship. Empirical evidence reveals that a better institutional environment fosters adoption of quality management systems at firm-level (Correa et al, 2008) and eases international trade exchanges (de Groot et al, 2004).…”

Market Competition in Transition Economies: A Literature Review

“…This model is not supported by Gorodnichenko et al (2010) who find that the relationship between globalization and innovation does not vary across the manufacturing and service sectors or with the distance to the technological frontier. The imitation hypothesis is supported by Correa et al (2010), who find that countries that acceded to the European Union in 2004 exhibit higher levels of technology adoption given their better governance than other transition economies.…”